For clarifications or additional information, contact the Diocese of Baton Rouge at 225-387-0561 or finance@diobr.org
All employees must be covered. A payroll tax of 15.3% of wages is shared equally by employer and the lay employee.
All employees are eligible. Forty quarters of work are required to be eligible for benefits.
Government benefits provided are Retirement Income, Disability Income, Death Benefits, and Medicare. The normal monthly retirement benefit, which varies with wages, is payable in full at age 65 or can begin as early as age 62, but is reduced 4% for each year benefits are paid prior to age 65. Based on an employee's final year of wages, benefits can range from 30% of pay to 85% of pay.
The current monthly benefits for a married couple at age 65 or at disability are:
| Present Annual Earnings | Monthly Benefit |
| $20,000 | $1,125 |
| $30,000 | $1,465 |
| $45,000 | $1,942 |
| $60,000 | $2,119 |
The benefit for a single or widowed person is about two-thirds of the above amounts.
The Diocese offers employees two types of health insurance: HMO coverage (in network only) and "Point-of-Service" coverage. A large number of physicians, hospitals and pharmacies are available. The "Point-of-Service" plan allows the employee more freedom in selecting medical providers, but at a significantly higher cost than the HMO plan.
All plans provide good benefits. Preventative care such as immunizations, routine physical exams, eye exams, mammograms, well-woman exams and allergy testing is provided at no cost or for a small co-payment. Well baby care is also covered.
All employers of the Diocese must offer health insurance to their employees, pay the mandated employer share of the premium and offer tax deductible premiums through payroll deduction.
The employer pays 83% and the employee 17% of the employee-only premium. Any additional coverage such as family or spousal coverage is paid for by the employee.
All permanent employees who work at least 30 hours per week must be offered this benefit. It is the employee's option to accept or reject it. If rejected, the employer may not compensate the employee in lieu of the benefit.
Coverage begins on the first day of the month following the date of employment.
Coverage will normally end on the last day of the month following termination of employment.
Employees below the age of 65 may continue coverage for up to twelve months or until eligible for Medicare, whichever comes sooner, at their own expense at the same premium charged to employees. Employees between the ages of 55 and 65 who retire with at least 10 years of service may continue coverage for themselves and their dependents at their own expense until the retiree or dependent becomes eligible for other group coverage or Medicare, at a premium to be determined by the Diocese. This right can continue only as long as it is affordable and is offered by the insurance company. Coverage is limited to the HMO-In-Network type.
The Diocese offers employees dental insurance on an optional basis. The program is the "insured" type with deductibles and co-payments and allows the employee to select any dentist.
All employers of the Diocese must offer dental insurance to their employees with tax-deductible premiums through payroll deduction. All costs are tax-deductible and paid by the employee.
All permanent employees who work at least 17.5 hours per week must be offered this benefit. It is the employee's option to accept or reject it.
Covers 100% of oral exams, cleaning, fluoride treatments and sealants. Covers 80% of extractions, x-rays, fillings, lab tests, shots and removal of exposed roots, after $50 deductible. Covers 50% of inlays, crowns, bridges, dentures and root canals, after $50 deductible. Covers 50% of orthodontia up to $1,000 annually with no deductible.
Maximum annual benefit per individual is $1,500.
Coverage begins on the first day of the month after the employee accepts the program and completes the necessary paperwork.
Coverage ends on the last day of the month following termination of employment.
The Diocese provides a "Defined Benefit Pension Plan" to its employees which provides a guaranteed monthly income for life. The monthly benefit is derived by multiplying total career wages by a percentage factor (examples are shown on the following pages). This is not an "account" type plan, such as 401 (k) or 403 (b), where the employee is entitled to the balance in his/her account at termination of employment. The plan does provide a monthly income that is a significant percentage of the employee's highest yearly wage. For example, the beginning benefit at age 65 for an employee with 30 years of service is about 50% of the final year's wages. After retirement, the benefit increases 2% per year. This benefit is over and above any Social Security income the employee may be entitled to.
Although the plan was created on January 1, 1984, it gives credit for wages prior to 1984, based on the 1983 wage times years of service prior to 1984. Employees hired before 1984 contributed nothing during the years prior to 1984.
All employers of the Diocese must provide this benefit to eligible employees, pay the employer share of the cost and withhold from pay the employee share of the cost.
All permanent employees who work at least 17.5 hours per week must participate and contribute 3% of wages to the plan as a condition of employment. This contribution by the employee is used to fund the monthly benefit. It is not kept in a separate account, but may be withdrawn in full with interest at termination of employment. Such withdrawal will proportionately reduce the employee's retirement income.
See the Section on Long-Term Disability and Retirement Continuation Insurance regarding funding in the event the employee becomes disabled.
Employers are mandated to contribute 6% of wages to the plan..
Participation begins on the first day of employment.
At retirement, there are the following three options available for the payment of benefits.
Option A: The entire benefit is paid as a monthly income guaranteed for life, and if you are married, a monthly income for the life of the spouse.
Option B: Employee contributions plus interest are refunded to the employee and the monthly benefit is based only on the employer contributions.
Option C: Employee contributions plus interest plus the lump-sum value of the Employer provided benefit are paid as a lump sum if the total lump-sum payment is less than $25,000. This option provides a one-time lump-sum payment of the full value of the retirement benefit in lieu of a monthly income.
If retirement benefits begin before age 65, the monthly retirement income will be reduced in accord with the following table:
| Age When Benefits Start | Early Retirement Factor | Age When Benefits Start | Early Retirement Factor | |
| 55 | .500 | 60 | .667 | |
| 56 | .533 | 61 | .733 | |
| 57 | .567 | 62 | .800 | |
| 58 | .600 | 63 | .867 | |
| 59 | .633 | 64 | .933 |
As shown in the following examples, the benefits that an employee can expect to receive far exceed his or her own contributions.
20 Years Service
Assumptions:
> Employment date 1/1/96
> Retirement date 1/1/16
> 1996 salary of $18,000 ($1,500 per month)
> 3% annual salary increases
> 20 years service at age 65
> Final annual salary of $31,563 ($2,630 per month)
> Retirement at age 65
Benefit:
> $967.33 per month in first year
> 36.8% of final monthly salary
> Benefit increases 2% per year
> Expected lifetime benefit (20 year life expectancy): $282,045
Total Career Contributions by Employee: $14,510
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30 Years Service
Assumptions:
> Employment date 1/1/96
> Retirement date 1/1/26
> 1996 salary of $18,000 ($1,500 per month)
> 3% annual salary increases
> 30 years service at age 65
> Final annual salary of $42,418 ($3,535 per month)
> Retirement at age 65
Benefit:
> $1,713 per month in first year
> 48.5% of final monthly salary
> Benefit increases 2% per year
> Expected lifetime benefit (20 year life expectancy): $499,383
Total Career Contributions by Employee: $25,691
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30 Years Service (With Pre-1984 Service)
Assumptions:
> Employment date 1/1/78
> Retirement date 1/1/08
> 1978 salary of $12,000 ($1,000 per month)
> 3% annual salary increases
> 30 years service at age 65
> Final annual salary of $28,279 ($2,357 per month)
> Retirement at age 65
Benefit:
> $1,126 per month in first year
> 47.8% of final monthly salary
> Benefit increases 2% per year
> Expected lifetime benefit (20 year life expectancy): $328,303
Total Career Contributions by Employee: $14,798 (none prior to 1984)
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40 Years Service (With Pre-1984 Service)
Assumptions:
> Employment date 1/1/68
> Retirement date 1/1/08
> 1968 salary of $6,000
> 3% annual salary increases
> 40 years service at age 65
> Final annual salary of $19,000, $1,583 per month
> Retirement at age 65
Benefit:
> $912 per month in first year
> 57.6% of final monthly salary
> Benefit increases 2% per year
> Expected lifetime benefit (20 year life expectancy): $265,981
Total Career Contributions by Employee: $9,944 (none prior to 1984)
The Diocesan Retirement Savings Plan provides a vehicle for employees to save conveniently through payroll deduction. Tax advantages help the funds grow faster. Employees are encouraged to save, thus helping to insure a comfortable retirement.
All employers of the Diocese must offer a 403(b) Retirement Savings Plan to their clergy and eligible lay employees. Participation is optional. All contributions are made by the employee.
All diocesan clergy and permanent lay employees are eligible.
The VALIC Tax-Deferred Annuity 403(b) is a tax-advantaged retirement plan. You may make pre-tax contributions of up to $10,000 or 20% of your annual salary. You may choose from the following investment options:
1) guaranteed fixed-account options
2) variable-account options including capital preservation, stable, growth, income
Please refer to the VALIC literature or call 225-295-0595 in Baton Rouge for a listing of funds currently available.
The loan option allows for loans up to 50% of account balance with a minimum of $1,000 and a maximum of $50,000 ($50.00 set-up fee.)
Monies in variable funds may be moved as frequently as the participant desires. Participants may transfer accumulated account values by calling toll-free in the USA 800-42-VALIC (that is, 800-428-2542). There are no fees or charges on transfers between the fixed and variable funds.
Participants may choose to withdraw a lump sum amount or a portion of their account. Portions may be allocated in equal periodic payments or specified percent or dollar amounts to be paid monthly, quarterly, semi-annually or annually, or five-year payment method annually.
Contributions by or on behalf of the participant will be confirmed on a calendar year quarter basis. This quarterly confirmation of account activity, mailed directly to the participant, details all account transactions occurring during the calendar year quarter as well as past and present account balances. Confirmation statements are also issued when a participant transfers values between the investment options.
A contribution of $100.00 per month over a period of 30 years will grow to $100,000.00 at 6% earnings and to $149,036.00 at 8% earnings.
This program is designed to provide an adequate level of income to the lay employee in the event of total and permanent disability.
All employers of the Diocese must provide this benefit to eligible employees and pay the entire cost.
All permanent lay employees who work at least 17.5 hours per week are eligible and must be covered.
Coverage begins on the first day of employment and benefits begin after six months of disability.
Coverage ends on the date of termination of employment.
The benefit is 60% of wages (less Social Security disability benefits) payable monthly beginning six months after disability begins up to a maximum of $3,000.00 per month and a payment of 9% of wages is made to the Retirement Plan in order that retirement benefits continue to accrue during disability.
| Age when disability begins | Maximum Payment Duration |
| Less than age 60 | To Normal Social Security Retirement age (NSSRA) |
| Age 60 | 60 months or to NSSRA, which is greater |
| Age 61 | 48 months or to NSSRA, whichever is greater |
| Age 62 | 42 months or to NSSRA, whichever is greater |
| Age 64 | 30 months or to NSSRA, whichever is greater |
| Age 65 | 24 months |
| Age 66 | 21 months |
| Age 67 | 18 months |
| Age 68 | 15 months |
| Age 69 & older | 12 months |
The Diocese provides life insurance to all eligible employees and additional insurance can be purchased at the employee's expense.
All employers of the Diocese must provide this benefit to eligible employees, pay the cost of the basic benefit.
All permanent lay employees who work at least 17.5 hours per week must be covered.
Coverage begins on the first day of employment.
Coverage ends on the date of termination of employment except that coverage may be continued at the employee's expense.
A basic benefit of $20,000 is payable to the designated beneficiary in the event of the death of the employee plus an additional $20,000 if the death is accidental. Additional benefits are also payable in the event of accidental dismemberment, loss of sight or loss of hearing.
Life insurance benefits reduce to 50% upon attainment of age 70 and to 25% of the original amount upon attainment of age 75.
Up to $100,000 of life insurance may be purchased by the employee.
All employers must offer this benefit to eligible employees. All costs are paid by the employee.
All permanent lay employees who work at least 17.5 hours per week are eligible. Evidence of insurability may be required by the insurance company.
The Diocese provides severance pay in the event a lay employee is "laid off." The benefit is payable whether the terminated employee finds other work or not, except for teachers who are employed by another school in the Diocese of Baton Rouge prior to September 1 of the school year in which the layoff occurred.
All employers of the Diocese must provide this program to their employees. The entire cost of the program is funded through the central Diocesan Finance Office.
a. Qualifying Employee: Any permanent, full-time or part-time lay employee or lay teacher of the Diocese, except those covered under the Louisiana Employment Security Law (Unemployment Insurance) and those with less than one year of service. Teachers "laid off" at the end of a school year who are employed by another school in the Diocese of Baton Rouge at the beginning of the following school year are not eligible for severance pay.
b. Qualifying Event: The termination of employment of a "Qualifying Employee" by the Diocese by reason of lack of funds, lack of work, or the restructuring of or the closing of a Diocesan parish, school, department, chaplaincy or apostolate. Termination for retirement, disability, dismissal for cause, resignation, or leave of absence are not "Qualifying Events."
A one-time monetary payment in accordance with the following schedule based on the Qualifying Employee's pay rate in effect at the time of termination of employment, payable to the Qualifying Employee upon a Qualifying Event:
| Years of Service As Of Last Day Of employment | Benefit |
| One or more but less than two | One week's pay |
| Two or more but less than three | Two week's pay |
| Three or more but less than four | Three week's pay |
| Four or more but less than five | Four week's pay |
| Five or more but less than six | Five week's pay |
| Six or more | Six week's pay |
Before any payment of benefits can be made, an application for benefits must be submitted by the appropriate pastor, principal, chaplain or department head to the Secretary for Finance of the Diocese. (Click here for the "application for severance pay benefits" form, which includes the additional form required for a terminated Catholic school teacher.) Upon notification of approval of the benefit by the Diocese, the Employer will pay the benefit as taxable income to the Qualifying Employee and will be reimbursed by the Diocese from its Severance Pay Plan Fund.
This program insures employees against accidents that occur during work.
All employers of the Diocese must provide this program to their employees and pay the entire cost. Employees must immediately notify their supervisors of a work-related injury or illness.
All employees are eligible immediately upon employment.
The program provides disability income benefits and medical expense payments if an employee suffers a work-related injury/illness which results in missed work and loss of income and/or medical expenses.
All parishes, schools, and other entities subject to the administrative authority of the Bishop of Baton Rouge and which employ laypersons must participate in the following benefit programs according to all appropriate provisions of these.
| PROGRAM | TYPE | COVERAGE OF EMPLOYEES FUNDED BY |
| 1) Social Security* | Mandatory | Institution & Employee |
| 2) Health Insurance | Optional | Institution & Employee |
| 3) Dental Insurance | Optional | Employee |
| 4) Retirement Plan* | Mandatory | Institution & Employee |
| 5) 403(b) Retirement Savings Plan | Optional | Employee |
| 6) Long term Disability & Retirement Continuation Insurance | Mandatory | Institution |
| 7) Life Insurance | Mandatory | Institution |
| 8) Optional Life Insurance | Optional | Employee |
| 9) Severance Pay Plan | Mandatory | Institution |
| 10) Workers Compensation Insurance | Mandatory | Institution |
*Participation is a condition of employment for any employee of any parish, school or other entity subject to the administrative authority of the Bishop of Baton Rouge.
For clarifications or additional information, contact the Business Office of the Diocese of Baton Rouge at 225-387-0561 or finance@diobr.org
(Revised June 2005)
