OCA Pension Plan amendment effective 1/1/2006

TO: PENSION PLAN PARTICIPANTS

FROM: VERY REV. MICHAEL WESTERBERG

DATE: November 29, 2005

Since its inception the Pension Board has made every effort to provide the best pension benefits possible without jeopardizing the long-term stability of the pension plan. For approximately two years the board has been researching and studying the feasibility of including ‘housing value’ within the pension- either fair market rental value, for those living in parish-own housing, or the amount of the received cash housing allowance. Approximately one year ago this was reported to plan participants, to parishes and to participating institutions through a survey. This was again reported in the Pension Report to the 14th All American Council. It was discussed at length at the Pension Plan open forum at the Council in Toronto. As Group Leader of the Pension Board, I am writing at this time to inform you that at its November 9th meeting the Metropolitan Council enacted this significant benefit increase effective January 1, 2006.

Beginning in January participating parishes and institutions are required to submit two figures on the monthly billing statement. The first figure reflects the monthly cash salary. The second figure reflects the cash housing allowance or the fair rental value of provided (rectory) housing. The mandatory six percent (6%) employer contribution and the mandatory six percent (6%) employee contribution is to be calculated on the sum of the two figures.

Presently, Plan participants and parishes submit monthly payments based on the cash salary. This

the value of housing or housing allowances. The enacted plan amendment means that as of January 2006 the pension payments- 6% employer and 6% employee, and when the time comes- the retirement benefit, will be calculated on the higher reported figure, resulting in a significantly higher retirement pension benefit. Naturally, for Plan stability and viability, there is a phase-in period, or more accurately an annual two percent (2%) prospective accrual of housing benefits in the pension. Those having the greatest time until retirement will realize the greatest benefit. For those already receiving pension benefits, and for those whose retirement is imminent, there will be no change since benefits cannot be paid on any amount for which no contribution was made.

If you have questions feel free to contact me:

Phone: 203-387-3882

E-mail: .(JavaScript must be enabled to view this email address)

Fax: 203-387-3043