July 16,2026

Dear Colleagues and former Colleagues in Ministry,

In the fourteen months since I became your bishop, I have been heartened by so many good things in our Diocese. I have also become aware of challenges that we face. Unfortunately, the pension plan in which you participate is one of those challenges.

Since 1986, the Diocese, our parishes and several of our schools and agencies have been part of a multiple employer retirement plan managed by Christian Brothers called the Christian Brothers Employee Retirement Plan (CBERP). The CBERP covers about 40,000 participants from about 180 catholic organizations, including several dioceses from across the country. It has about $1.55 billion in assets. A 2025 report indicated that the CBERP was, overall, 66% funded.

Following that report, we made inquiries of Christian Brothers and learned that, like other dioceses participating in the CBERP, benefits for the Diocese of Norwich participants were similarly underfunded. Specifically, we learned that our plan is approximately 58% funded and that the unfunded liability for our plan participants amounts to approximately $21.2 million. This was very unsettling news as the Diocese has always promptly paid the full amount that Christian Brothers has billed for our participants.

Christian Brothers attributes this problem to asset losses in the recession of 2008, increased life expectancy of retirees, and an imbalance between active employees (for whom contributions are being made) and inactive members (either retirees drawing pensions or vested former employees entitled to pensions). Please see Christian Brothers’ explanation at https://www.cbservices.org/wp-content/uploads/2025/07/The-New-Path-Forward-brochure.pdf.

Christian Brothers proposed to address the shortfall over 25 years by increasing (after a two-year phase in) our annual contributions from $1,043,333 to $2,759,010. Unfortunately, this is beyond our means.

Upon learning this information, we retained Arthur J. Gallagher & Co, pension consultants who are involved with some of the other dioceses, and Ice Miller, a national law firm with pension expertise and who had advised us on bankruptcy. We worked closely with most of the other dioceses involved and their legal counsel to advise us on our options. We also met with Christian Brothers. After briefings by those consultants to the Diocesan Finance Council and the College Consultors, and a later briefing with our Presbyteral Council and Deaneries, we have decided to separate from the CBERP and create the Diocese of Norwich Lay Pension Plan. This process will take several months, and more details will be shared about our new retirement program before it is effective.

From the perspective of the CBERP, the Diocese has voluntarily terminated its participation in the CBERP effective as of June 30, 2026. As a result of this termination of participation, active employees of the Diocese will cease to accrue benefits under the CBERP as of June 30, 2026. This means that current active employees will not accrue additional benefits under the CBERP after June 30, 2026 and that employees hired after June 30, 2026 will not be eligible to participate in the CBERP.

The new Diocese of Norwich Lay Pension Plan will have the same provisions as the CBERP (accrual rate, retirement eligibility, vesting and forms of payment) through the end of the calendar year. This means that pension benefits for active employees who participated in the CBERP on June 30, 2026 will continue to accrue in the same manner under the Diocese of Norwich Lay Pension Plan through December 31, 2026. The future retirement program for 2027 and beyond is still being assessed by the Diocese and is expected to be provided through a 403(b) defined contribution retirement program.

While the Diocese has terminated its participation in the CBERP effective June 30, 2026, the actual transfer of plan assets from the CBERP to the Diocese of Norwich Lay Pension Plan will not take place until the end of the year. Until then Christian Brothers will continue to manage our pension plan, make uninterrupted payments to plan participants and be available to respond to your ordinary inquiries about your pension.

Over the coming months, the Diocese will also be working to evaluate and re-design our retirement benefit program to develop a meaningful, responsible, and just retirement program. Although the plan is underfunded, the shortfall does not pose an immediate risk to any pension benefits currently being paid or those that are expected to be paid over the next few years. While I cannot make any guarantees, I am committed to working toward meeting our long-term obligations to you in a manner that is both viable and sustainable.

I am very sorry to have to give you this news. We owe you, our dedicated and loyal workers in ministry, our best efforts to address this unfortunate and unexpected situation. We are and will continue to work with our consultants to address this issue. We will continue to communicate with you as our new retirement benefit program takes shape and will be holding employee meetings later this Fall.

Sincerely yours In Christ,

Most Reverend Richard F. Reidy
Bishop of Norwich