History
In the early and mid-twentieth century, religious communities attracted record numbers of women and men to lives of service and prayer. Having many members afforded these communities a certain degree of financial security. Funds that religious communities earned or saved were used to build Catholic hospitals, schools, and social service agencies. Retirement was funded 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, which 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 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.
The first national collection for the Retirement Fund for Religious was conducted in 1988.
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
The task force conducts a national survey of religious institutes to determine the extent of the crisis in retirement funding.
1983
Funding obtained for Tri-Conference Consultation Service for religious institutes.
1984
The document Guidelines for Self-Evaluation: Financial Viability and Accountability is distributed by the task force.
1985
The 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.
The first Retirement Needs Survey is conducted and analyzed by Arthur Andersen & Company.
1986
The Wall Street Journal article and the Arthur Andersen report raise public awareness about the crisis in retirement funding.
The Tri-Conference Retirement Project/Office is initiated by CMSM, NCCB, and LCWR.
1987
A Lilly Endowment grant expands data collection and retirement planning services to religious institutes.
A Gallup-poll indicates Catholics will contribute to the retirement needs of religious.
1988
The NCCB approves the recommendation of the Tri-Conference Commission on Religious Life and Ministry to hold an annual Retirement Fund for Religious appeal in (arch)dioceses for 10 years. The first national annual appeal is held.
1989
The first allocations from the Retirement Fund for Religious collection are distributed to religious institutes.
1995
The name of the Tri-Conference Retirement Project/Office is changed to the National Religious Retirement Office.
The Retirement Fund for Religious appeal is extended through year 2007.
2001
An audit/review is 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
The Commission on Religious Life and Ministry decides to recommend extension of Retirement Fund for Religious appeal.
2006
Annual retirement appeal is extended until 2017.
2008
The 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
The NRRO adjusts the distribution formula for Direct Care Assistance to calculate more objectively a religious institute's assets available for retirement needs.
Special Assistance and Supplemental Grants are replaced with a pilot project of Planning and Implementation Assistance, a cohesive process designed to provide more intensive consultation services for significantly underfunded religious institutes.
Supplemental Identified Need Grants are renamed as Management and Continuing Education Assistance.
