Arch. Milwaukee to begin $300k victim therapy fund if judge approves

As part of the Plan of Reorganization, we will ask the bankruptcy judge to allow us to establish a fund dedicated to providing therapy and counseling to abuse victims of diocesan clergy. Currently, the archdiocese spends approximately $70,000 each year for therapy and counseling for abuse survivors who come forward for this assistance. This fund will be launched with an initial contribution of $300,000. The therapy fund will be “evergreen,” meaning that it will be established in a way that allows it to be replenished, so that payments for therapy will continue for as long as abuse victims come forward for such assistance. We are establishing it, not because we are required to, but because our commitment in faith calls us to do so. Let me explain.

As you know, the bankruptcy process is a financial proceeding designed to compensate those making claims. I have stated previously, and want to emphasize again, that beyond financial settlements, outreach and assistance to abuse survivors is an ongoing and permanent ministry of the Church. The most important thing we as a Church can and must do, is to continue to provide therapy assistance to those who have been harmed, even if their claims are not recognized under civil law, which may be the case for certain of the claims filed against the archdiocese in the Chapter 11 proceeding.

In order to prepare the Plan of Reorganization, it is important to know how many claims will qualify for compensation and which claims cannot be honored. Soon, attorneys for the archdiocese will be filing motions to ask the judge to decide which claims against the archdiocese will be allowed under bankruptcy law. If the court is not going to allow a particular type of claim (for example, a claim that is past the statute of limitations; a claim brought by an individual who previously reached a legal settlement with the archdiocese; or a claim against a person who was never an employee of the Archdiocese of Milwaukee), then people need to know this so they have a realistic expectation as they proceed with the claims

-Abp. Listecki

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Arch. Milwaukee issues correction on pension funds

On Tuesday, October 25, the Milwaukee Journal Sentinel ran an article titled, “Milwaukee pension funds fall short.” On the same day, they printed an opinion article on the “perspectives” page written by Fr. Jim Connell of the archdiocese. We have posted additional information related to both of these articles on the archdiocesan website.

You may access more information about the pension fund article here.
You may access more information about Fr. Connell’s opinion piece here.
If you have questions or concerns about either column, please contact us at communication@archmil.org.

Thanks,
Jerry Topczewski
Chief of Staff
Archdiocese of Milwaukee

Milwaukee archdiocese pension funds fall short $41.8 million

Three pension funds operated by the Archdiocese of Milwaukee for priests, lay employees and unionized cemetery workers have unfunded liabilities totaling $41.8 million, according to documents filed as part of the archdiocese's bankruptcy proceedings.

The gap between current assets and future payouts for the priest and lay workers' pensions - at 9.6% and 16.9%, respectively - fall within reasonable ranges given the economic conditions of the last few years, according to pension experts.

But the size of the lay workers' pension liability (at $37.4 million) and the funding level of the cemetery workers' pension (55% - with $1.3 million in assets and a $1 million unfunded liability) raise concerns about the health and future of those benefits, pension experts say.

"Anything funded below 80%, you'd have to look at, but a large gap is cause for concern, said Eric Loi, staff attorney for the Pension Rights Center, a consumer advocacy group in Washington, D.C.

Archdiocese spokeswoman Julie Wolf blamed the shortfalls on poor investment returns and said in a statement that there is "no current cause for concern for employees."

"All benefits have been timely paid, and it is clear that the plans will continue to pay all benefits payable in the immediate future," she said.

The pension liabilities are laid out in claims filed last week against the assets of the archdiocese. They are among 160 claims totaling $123.4 million filed to date by creditors in the church's Chapter 11 bankruptcy. In this case, it is the archdiocese itself and the pension trustees making the claims to protect the pensions.

continue at MJS

SNAP attacks cemetery trust issue in Arch. Milwaukee bankruptcy

Attorneys for the creditors in the Archdiocese of Milwaukee bankruptcy are attacking the validity of its $50 million cemetery trust, saying it was created in 2007 to defraud victims of clergy sex abuse. The creditors committee, composed of victim-survivors, filed a counterclaim Tuesday against the trust and its sole trustee, Archbishop Jerome Listecki, asking the bankruptcy court to void the 2008 transfer of $55 million into the account, and to declare the trust invalid.

If the trust is declared valid, it argues, the court should require the archdiocese to trace all deposits to ensure that assets legally available to pay settlements are not commingled with cemetery funds.

Archdiocese attorneys say they are not authorized to comment publicly on the legal proceedings, and a spokeswoman for the archdiocese did not immediately return a telephone call seeking comment.

The counterclaim is in response to a claim filed by Listecki and the Archdiocese of Milwaukee Perpetual Care Trust in June seeking to keep the cemetery funds from being considered part of the debtor's estate and therefore available to pay creditors.

JSOnline

Weakland, Sklba to take the stand!

Retired Milwaukee bishops Rembert Weakland and Richard Sklba will answer questions under oath in October about the extent and alleged coverup of child sex abuse in the archdiocese, U.S. Bankruptcy Judge Susan V. Kelley ruled on Friday.

However, that testimony won't be available to the public, at least initially.

Kelley granted a request by survivor-creditors to question the two, along with defrocked priest Daniel A. Budzynski, who is believed to have molested several children, as part of the church's bankruptcy proceedings.

The judge scheduled the questionings for the weeks of Oct. 17 and 24. But she imposed strict limits on their duration and ordered them sealed from public view.

"I don't want this on anybody's website," said Kelley, a reference to victims' attorney Jeff Anderson's distribution of Weakland's 2008 questioning, in which the retired archbishop referred to Sklba as his "go-to guy" in the handling of sex abuse cases.

"This isn't about embarrassing these people. This is about giving the parties relief," Kelley said.

MJS

Deadline set for Milwaukee abuse victims

As part of the process of its Chapter 11 reorganization, the Archdiocese of Milwaukee is required to publicize the claims bar dates. These dates are the deadlines for individuals to file their claim against the archdiocese.

The deadline for anyone who wishes to make a clergy abuse claim against the Archdiocese of Milwaukee is February 1, 2012 at 4:00 pm (Prevailing Central Time).

A second bar date has been set for general creditors in the financial reorganization of the Archdiocese of Milwaukee. The General Bar Date is October 17, 2011 at 4:00 pm (Prevailing Central Time).

Part of this process is providing notice to people who may have a claim. As such, I have asked parishes and schools in the archdiocese to publicize this date in various ways within their community.

For more information about the claims bar date or about how to file a claim, please go to the archdiocesan website.

The archdiocese is committed to fair and equitable compensation for abuse survivors and to continuing its outreach to those who have been harmed. As a Church, we remain vigilant in our efforts to keep children safe. Through this Chapter 11 process, we can continue to move forward, providing the necessary services and ministries to parishes and schools, and all those who rely upon the Church for support.

ArchMil.org

Archdiocese to launch ads informing victims of deadline to file claims

The Archdiocese of Milwaukee will launch a national advertising campaign on Sunday to notify sex abuse victims of their deadline to file claims as part of its bankruptcy, the archdiocese said Friday.

Victims of clergy, staff, teachers, other church employees or volunteers have until Feb. 1 to file claims against the church.

The campaign that begins Sunday will include ads in the Journal Sentinel, the Chicago Tribune and USA Today.

The advertising campaign is required by the bankruptcy, which acts as a final call for claims against a debtor.

The deadline for general claims not related to sexual abuse is Oct. 17.

MJS

Bankruptcy judge rejects request for depositions of Weakland, Sklba

The judge in the Archdiocese of Milwaukee bankruptcy case on Friday rejected a move by lawyers for clergy sex abuse victims and other creditors to depose key witnesses, including retired Archbishop Rembert Weakland and Bishop Richard Sklba, in state court.

But Bankruptcy Judge Susan V. Kelley left the door open for those witnesses and others to be questioned under comparable federal bankruptcy rules.

"No disrespect to the state courts, but we're in bankruptcy court now," said Kelley, who initially challenged the creditors committee's standing to file the motion to lift the stay that has blocked depositions in the underlying fraud cases against the archdiocese.

Lawyers for the archdiocese and victims and creditors will return to Kelley's courtroom Aug. 12 to argue their positions under the federal rules.

Creditors' attorneys argued Friday that depositions of elderly or infirm witnesses, including anyone over age 75, are needed to preserve evidence in the underlying cases. That evidence would be used as part of the bankruptcy to determine the credibility of claims and size of the bankruptcy estate and settlement with creditors, said creditor committee attorney Gillian Brown.

Attorneys for the archdiocese argued that there's no evidence to suggest any of the witnesses are at risk of dying or that memories are fading, and that depositions at this early juncture would prejudice yet unidentified victims.

continue at MJS