History
The Catholic Church in the United States began as an immigrant church in what was a predominantly Protestant culture. As Catholic immigrants arrived, so did bishops, clergy, sisters, and brothers, anxious to serve immigrant needs and cultivate the Catholic faith.
Money was as scarce in religious communities as it was in the immigrants' pockets, and any funds that religious communities earned or saved were used to build Catholic hospitals, schools, and social service agencies. In more recent decades, religious institutes also invested significantly in the education of their members for ministry.
In the early and mid-twentieth century, religious communities attracted many members to a life of service and prayer. Religious institutes funded retirement on a “pay as you go” basis, with the stipends of the younger members providing the basics of daily living for themselves and for elder members. Health care services were often provided by Catholic hospitals and Catholic physicians at little or no cost to the religious institute.
By the 1970s, however, dramatic changes were taking place in the Church and in U.S. culture that greatly impacted religious life. Life expectancy had increased significantly; fewer young men and women were choosing religious life, and health care costs were growing exponentially. Signs of a "retirement funding problem" were becoming evident. As early as 1971, the National Catholic Educational Association held workshops on retirement costs and the feasibility of a national pension program for religious.
In 1985, a task force on religious retirement, made up of representatives of religious leadership in the United States, commissioned a nationwide Retirement Needs Survey that was conducted and analyzed by Arthur Andersen and Company. The issue reached public consciousness in 1986 when the Wall Street Journal published a groundbreaking article by John J. Fialka. The front-page story called attention to the unfunded retirement liability, which, based on the Retirement Needs Survey, had been calculated at $2 billion.
In 1986, the task force established the National Religious Retirement Office (NRRO), originally called the Tri-Conference Retirement Office. The first national appeal was conducted in 1988; and the NRRO mission encompassed four goals: fund raising for a projected multi-billion dollar unfunded liability at religious institutes; technical and financial assistance for institutes; compensation adjustments for religious workers; and education for religious and laity regarding the dearth of retirement funds for religious.
Timeline
1971
1972
Legislation is passed permitting religious to enroll in Social Security
1973
United States Catholic Conference's Department of Education recommends religious participate in Social Security
1974-75
1978-79
1980
Tri-Conference Task Force on Religious Retirement formed
1981
Task Force surveys retirement financial crisis of religious institutes nationally
1983
Funding obtained for Tri-Conference Consultation Service for religious institutes
1984
Guidelines for Self-Evaluation: Financial Viability and Accountability distributed by Task Force
1985
Third Age Center at Fordham University convenes leaders of religious organizations, foundations, and other Catholic organizations and recommends a national office to address retirement funding issues
First Retirement Needs Survey conducted and analyzed by Arthur Andersen & Company
1986
The Wall Street Journal article and Arthur Andersen report raise public awareness
Tri-Conference Retirement Project/Office initiated by CMSM, NCCB, LCWR
1987
Lilly Endowment grant expands data collection and retirement planning services to religious institutes
Gallup-poll indicates Catholics will contribute to the retirement needs of religious
1988
NCCB approves recommendation of the Tri-Conference Commission on Religious Life and Ministry to hold annual Retirement Fund for Religious appeal in (arch)dioceses for 10 years. First national annual appeal held.
1989
First distribution of funds
1995
The name of the Tri-Conference Retirement Project/Office is changed to National Religious Retirement Office.
Annual retirement appeal extended through year 2007
2001
Audit/Review required with basic grant application unless an approved exemption form is on file
2004
Actuarial projections by Mercer Human Resource Consulting report that retirement funds of religious institutes would be exhausted by 2023
2005
Commission on Religious Life and Ministry decides to recommend extension of Retirement Fund for Religious appeal
2006
Annual retirement appeal extended until 2017
2008
Total annual cost of support for elder religious in the United States exceeds $1 billion for the first time (based on an average cost of care of $35,000 per person for women and men religious age 70 and over)
2009
NRRO adjusts distribution formula for Direct Care Assistance to calculate more objectively a religious institute’s assets available for retirement needs.
NRRO replaces the Special Assistance and Supplemental Grants with a pilot project of Planning and Implementation Assistance designed to provide more intensive consultation services for significantly underfunded religious institutes.
Supplemental Identified Need Grants are renamed as Management and Continuing Education Assistance.
