NACST Newsletter

Volume XXVII No. 2 - January 2006

Attorney Ben Eisner addressed convention delegates on the current state of employee benefits.

He noted that there are increasing pressures on pension plans because of funding crises, and health insurance because of rising costs.

There is a shift in both the funding of benefits and financial risks from employer to employee.

During the past decade, American corporations have moved from defined benefit plans to employee contribution plans [such as 403(b) retirement plans for private employers].

In the move, employees must take on a greater role in managing retirement funds, even though they may not have adequate financial training.

While many dioceses and schools have moved away from defined benefit pension plans, in those which still retain them, employees have a right to examine the Trust documents.

On the health insurance front, Eisner warned leaders to beware of premium co-pays for insurance which are a percentage of cost, rather than a fixed amount.

There is an expectation that health care costs will continue to rise in the foreseeable future [actuaries predicting anywhere from 12% to 15% annually].