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To: Priests and Business Managers
From: Brad Wilson, CFO, Office of Finance
The late Monsignor Stephen Churchwell was the driving force behind the policy for Post-Retirement Health Benefits for Priests. A copy of the policy is attached.
The policy calls for the Chancery to procure a Medicare Supplement, currently the Hartford Advantage Plan, for each retired priest. To manage this benefit, a Trust was created and an initial contribution of $10,000,000 occurred in 2017.
Like the monthly pension charge per priests, beginning with fiscal year 2020, a monthly charge will begin for post-retirement medical benefits. The money received will be remitted to the Trust. The annual charge is $1200 per active priest.
Because the retired priest moved from our self-insured health plan to Medicare plus the Advantage Plan, we have been able to reduce the health plan cost per active priest by $1200. In essence, a parish will see no overall increase in cost due to the new plan. The annual increase for the self-insured health plan is 4%.
The table below illustrates the charges per active priest for health plan costs over two years.
———————- FY’19 FY’20 $ Chg % Chg
Health Plan $19,076 $18,648 ($428)
Post-Retirement -0- $1,200 $1,200
Total $19,076 $19,848 $772 +4%
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