FRESNO, Calif. \u2013 After working as a teacher for 17 years at St. Helen\u2019s Catholic School in southeast Fresno, Kathy Carbaugh thought she had settled into a stable retirement in Coos Bay, Ore.<\/p>\n
That changed in August when Carbaugh received a letter from Bishop Joseph Brennan informing her the retirement plan she paid into while as a Diocese of Fresno employee was \u201csignificantly underfunded\u201d and that her benefits \u201cwill be reduced.\u201d<\/p>\n
Carbaugh subsequently learned that her monthly $789 pension would expire after December. To help make ends meet, the 72-year-old has since returned to work.<\/p>\n
\u201cThat just scared the holy living daylights out of me,\u201d Carbaugh said of her initial reaction to the news. \u201cIt rattled my cage for a good month.\u201d<\/p>\n
Carbaugh is not alone in her predicament \u2013 nor are nearly 1,800 other former employees of the Diocese of Fresno.<\/p>\n
Dozens of Roman Catholic dioceses across the U.S. have faced difficult decisions and painful cuts after finding out their employee retirement plans \u2013 all managed by Christian Brothers Services, a Catholic financial services firm \u2013 faced a reported $800 million shortfall as of last year.<\/p>\n
Christian Brothers provides retirement services for approximately 40,000 employees and retirees, according to the company\u2019s website. The pension shortfall reportedly affects more than 180 church-based organizations.<\/p>\n
In his Aug. 5 letter, Brennan indicated all benefit accruals under the Christian Brothers plan were frozen effective June 30. This means active employees haven’t accrued any additional benefits since that date.<\/p>\n
\u201cThe Fresno Diocese has faithfully made all the contributions required by the plan,\u201d Brennan wrote. \u201cThe underfunding is the direct result of actions or inactions by Christian Brothers and was not caused by the pending bankruptcy proceedings.\u201d<\/p>\n
The Diocese of Fresno filed for Chapter 11 bankruptcy<\/a> in July 2025, seeking to address 154 decades-old abuse claims against the diocese. Court documents entered into federal court earlier this month now list 1,792 former employees who are enrolled in the pension plan as potential creditors in the bankruptcy case. The amount each is owed is not known.<\/p>\n Joan Pacella, a former Catholic school administrative assistant, said she and other pensioners have not been given clear answers from either the Diocese of Fresno or Christian Brothers.<\/p>\n \u201cCommunication has not been forthcoming,\u201d Pacella said. \u201cThe diocese says we\u2019re supposed to call Christian Brothers. But Christian Brothers says we\u2019re supposed to call the diocese\u2019s [human resources] department. We\u2019ve sort of been put in a loop without a satisfying response.\u201d<\/p>\n In his letter, Brennan said the diocese is trying to find an alternative for the current retirement account plan and is working with attorneys and the federal court overseeing the bankruptcy proceedings to limit the impact on current and former employees.<\/p>\n Christian Brothers representatives did not respond to attempts for comment by KVPR.<\/p>\n However, after several Midwestern and East Coast dioceses learned about the pension shortfall in 2025, the financial services firm produced a brochure<\/a> and video that acknowledged the situation and essentially blamed it on the 2008 recession and an increase in the ratio of retirees to active employees.<\/p>\n \u201cIn 2007, the plan was overfunded. We did what most plans in that situation did: We increased benefits. Shortly after that, the market conspired against us,\u201d David Enenbach, a Christian Brothers employer retirement plan board member, said in the video<\/a>.<\/p>\n It\u2019s not clear why Diocese of Fresno employees found out about the shortfall more than a year after Christian Brothers went public with its financial situation.<\/p>\n Chandler Marquez, the Diocese of Fresno spokesman, said Brennan informed affected retirees about the pension issues \u201cweeks\u201d after he also found out.<\/p>\n For Carbaugh, Pacella and other retirees, their legal options are limited.<\/p>\n