History of the Trust

The Shepherds’ Trust became operative August 1, 1996. Before it was established on the 26th of June, 1996 by Archbishop Ambrozic, there had been two prior benefit programs for all the Toronto diocesan priests. The first was the St. Michael’s Mutual Aid Society, established in the Archdiocese of Toronto (during the administration of Archbishop Pocock) on February 13,1962. Originally, it was directed by elected representatives of the diocesan priests, but the Chancery assumed responsibility for it on January 1, 1970 because of the complexities which arose during the 60's (Canada Pension Plan contributions, more priests retiring, etc.).

It then was re-named the Mutual Benefit Fund, and this Fund provided for

  • Ontario Health Plan Premiums until the recent changes;
  • Blue Cross Extended Benefits;
  • Monthly retirement benefits; and
  • Retreat fees for retired priests.

It also covered the costs of extended care in residential treatment facilities like Southdown, and supplemented the costs for institutional care for priests requiring it because of physical needs.

In 1972, Archbishop Pocock established a Retirement Fund Reserve with an initial capitalization of $1,264,549.00 for the Archdiocesan clergy. Interest on this capital was used to supplement the revenue required to meet the obligations of the Mutual Benefit Fund and other monies were added over the years.

Religious priests, because of their vows, were usually part of their own Community’s plans for health and retirement care, although some have been covered for Health Benefits by the Archdiocesan plan.

Diocesan priests did, for a time, contribute to the costs of the medical benefits premiums only, although this was eventually discontinued. No personal contribution for retirement benefits was enacted. The parishes and other ministry bases covered the other costs through an assessment, as is done today.

Canon Law

Canon 281.1: "Since clerics dedicate themselves to the ecclesiastical ministry, they deserve the remuneration that befits their condition, taking into account both the nature of their office and the conditions of time and place. It is to be such that it provides for the necessities of their life and for the just remuneration of those whose services they need."
   
Canon 281.2: "Suitable provision is likewise to be made for such social welfare as they may need in infirmity, sickness or old age."

It was to meet these latter responsibilities, and because the benefit Fund was seriously under-funded, that the Archdiocese began to study the setting up of a Trust. It was supported in this by a group of laymen who realized the needs and offered their help in the establishment and operation of such a trust. Ultimately, recommendations were made which led Archbishop Ambrozic to establish this benefit trust.