Q.When and why was The Shepherd’s Trust created?
A. The Shepherd’s Trust was established in August 1996, to formalize the payment of retirement benefits to priests of the Archdiocese of Toronto whose dedication, spiritual leadership, unfailing love and concern for us during their years of service, enriched our lives in our own homes, schools, churches, hospitals and other areas of ministry.
Q.Was there not some form of Pension Plan already in existence?
A. There was an informal program in place, which provided a modest payment of benefits for all retired priests. It did not however adequately recognize their simple needs nor did it properly reflect the gratitude and appreciation of the parishioners they served. Looking into the future, we project an increase in the number of retired priests, making it necessary to establish a proper fund to provide simple retirement benefits to our current and future retiring priests.
Q. In that the Catholic Church is one of the richest institutions in the world, why do we need to raise money in parishes for retired priests?
A. The majority of assets held by the Archdiocese of Toronto is comprised of real estate and "bricks and mortar". The emphasis within the Archdiocese over the last two decades has been on constructing new churches in rapidly expanding areas.
Four years ago, the Archdiocese, in partnership with several lay business leaders, identified retirement benefits for priests as an area of major emphasis and supported the creation of the Shepherds’ Trust with an initial $9 million contribution.
Q. Will there always be a need for an annual collection for the Shepherds' Trust?
A. The current asset base of the Trust has grown from the initial $9 million Archdiocese contribution to $16 million over a four year period. The generosity of parishioners and their concern for the welfare of our priests is clearly reflected in this growth.
While this may seem like an enormous amount of money, a recent actuarial study indicates that for the Trust to be fully funded to provide retirement benefits to both existing and future retired priests, the fund requires about $30 million. It should be pointed out here that the average age of our retired priests is 75 years old. This can mean a greater need in terms of nursing or rehabilitative care.
We must continue to rely on the generosity of our parochial family each year through an annual collection across the Archdiocese to continue the level of retirement benefits to the retired priests already receiving benefits from the Shepherds' Trust.
Q. Who manages the money raised to date for The Shepherds’ Trust?
A. At the time the Trust began in August 1996, a professional investment management firm Knight, Bain, Seath & Holbrook was selected to manage the funds. This firm has done extremely well over the past four years in comparison to other investment firms. The Shepherds’ Trust Board of Trustees meets quarterly to review matters surrounding the Trust including an evaluation of the investment performance of the Trust.
Q. Are there other ways in which to raise funds for the Shepherds' Trust?
A. Most definitely! We hold a successful golf tournament every year in September, which generates funds for the Trust. Besides the annual November collection and the income generated by our Investment Managers, some parishes have held special fundraising events in addition to what they donate at the annual collection.
An increasingly popular way to raise funds for the Trust is by remembering priests through the Trust in estate planning and in your will.
Q. Do all priests even those who are financially independent receive retirement benefits from the Shepherds' Trust?
A. Yes, in the same manner that any pension fund recognizes all members regardless of their financial status, the Shepherds' Trust recognizes the contribution of all our priests. The number of financially independent priests is few and these members are encouraged to contribute to the Trust. Several of them have left money to the Trust in their wills.