THE CHURCH OF IRELAND PENSIONS BOARD
REPORT TO THE GENERAL SYNOD 2002
AND FINANCIAL STATEMENTS FOR THE YEAR 2001
Members of the Board
Elected by the House of Bishops
Rt Rev JE Moore, Bishop of Connor (resigned November 2001)
Most Rev RHA Eames (from December 2001)
Rt Rev JRW Neill, Bishop of Cashel
Elected by the General Synod
Ven DS McLean
WT Morrow
Lady Sheil
Rev ECJ Woods
DG Hannon (from April 2001)
Elected by the Representative Church Body
Canon JLB Deane
Rev Canon VES McKeon
HT Morrison
Mrs JM Peters
RP Willis
Chairman – Canon JLB Deane
Vice Chairman – Lady Sheil
Honorary Secretary – Rev Canon VES McKeon
Trustee – The Representative Church Body
Actuarial Advisers – Mercer Ltd
Investment Managers – 	Bank of Ireland Asset Management Ltd (Dublin)
Bank of Ireland Asset Management (UK) Ltd (London)
Assistant Secretary – JF Buttimore
Pensions and Welfare Officer – PG Connor
Grants Committee
Rev Canon VES McKeon
WT Morrow
Lady Sheil
Office: 	Church of Ireland House
Church Avenue	Telephone no 01-4978422
Rathmines	Facsimile no 01-4978821
Dublin 6	Email pension@rcbdub.org
REPORT OF THE BOARD OF THE CHURCH OF IRELAND
CLERGY PENSIONS FUND TO THE GENERAL SYNOD
1.	INTRODUCTION
During 2001 five meetings of the Board were held.
2.	MEMBERSHIP
Contributors for full benefits 1 January 2001		494	
Additions:	Newly ordained clergy		16	
	Clergy who re-entered service		1	
	Clergy who entered service from other churches		7	
	Clergy who entered service from other posts		0	
			_____	
			518	
Deductions:	Clergy retired on pension	15		
	Clergy who died in service	2		
	Clergy who have left service with entitlement to deferred benefits	
8		
	Clergy who have left service and transferred their benefits to another fund	
1	
26	
		_____	_____	
Contributors for full benefits 31 December 2001		492	
Age distribution of Contributors

Age	under 26	
26-30	
31-35	
36-40	
41-45	
46-50	
51-55	
56-60	
61-65	
66-70	
71-75		
												Total	
Clergy	1	25	50	40	78	69	76	74	47	28	4	492	
There are 9 clergy in the full time stipendiary ministry who are not members having been granted exemption on entering service and there is one who elected to leave the Fund and make independent pension arrangements.
3.	PENSIONERS
(a)	Retired Clergy
Retired clergy on pension 1 January 2001	262	
Add:	*Retirements during the year 	17	
Deduct:	  Ceased on death during the year	19	
		_______	
Retired clergy on pension 31 December 2001	260	
		_______	
Notes:  *retirements during the year include 2 on deferred pension.
the total of 260 includes 6 clergy who are in receipt of deferred pensions.
(b)	Surviving Spouses of Clergy
Surviving spouses on pension 1 January 2001	255	
Add:	Commenced during the year	14	
Deduct:	Ceased on death during the year	24	
		_______	
Surviving spouses on pension 31 December 2001	245	
		_______	
Note:  the total of 245 includes 22 widows of voluntary contributors.
(c)	Children
Child Dependency Allowances 1 January 2001	4	
Add:	Commenced during the year	0	
Deduct:	Ceased during the year	0	
		_______	
Child Dependency Allowances 31 December 2001	4	
		_______	
4.	PENSIONS IN PAYMENT
The following shows the annual rate of pensions etc in payment at 31 January 2002:
	€		£	
Clergy	1,352,315	and	1,470,219	
Surviving spouses and orphans	1,169,183	and	845,017	
				
	________		________	
	2,521,498	and	2,315,236	
	________		________	
5.	DEFERRED PENSIONS
There are 90 clergy with entitlement to deferred benefits as at 31 December 2001.
6.	ANNUAL INCREASES IN PENSIONS IN PAYMENT
Under the provisions of the Fund pensions and annuities in payment at the end of each year are increased on the following 1 January.  The amount of increase is determined by the Board on the advice of the actuary and with the approval of the Representative Church Body by the percentage required by law, or such greater percentage up to 5%.
The cost of funding this benefit for those members who are directly in the service of the Church of Ireland is met from central funds.  The amount required on 1 January 2002 is €339,268 plus £337,116 (equivalent to €893,280) and is included as one of the grants recommended to the General Synod for allocation from the Income and Expenditure Account of the Representative Church Body.
7.	BENEFITS
Pensions in payment on 31 December 2001 were increased by 3.7% of those payable in pounds sterling and 5% of those payable in euro on 1 January 2002, except those being paid to a widow of a voluntary member.
8.	LUMP SUM BENEFITS
Under the provisions of the Fund a lump sum is payable in a number of eventualities.  The following is a summary:
On death in service or within 5 years following retirement;
On retirement before reaching 65 years of age a member may elect to commute part of his pension;
On reaching 65 years of age a member may elect to commute part of his pension whether or not he actually retires;
On retirement after reaching 65 years of age a member may elect to commute part of his pension if on reaching 65 years of age he had decided to defer a decision until his actual retirement.
During 2001 lump sums totalling €91,951 and £131,040 became payable under the above headings in respect of 7 members as follows:
died in service (1); continued in service having reached 65 years of age (1); 
on retirement (2); died within 5 years following retirement (2); deferred paid at age 70 (1).
9.	EXPLANATORY BOOKLET
The explanatory booklet designed to give a broad outline of the Pensions Fund and the benefits provided is available from the Assistant Secretary.  A revised version was sent to all members in June 2001.
10.	ADDITIONAL PERSONAL CONTRIBUTIONS
Members who will not have completed 40 years of service on reaching 65 years of age will not qualify for a full pension.  However, subject to limitations contained in civil legislation, the members concerned may purchase additional service by making additional personal contributions either by monthly deduction or by the payment of a lump sum, or by a combination of the two.  These contributions qualify for full income tax relief at the highest rate payable by the contributor.
At present 101 members are participating in the Scheme.  Many more are entitled to do so and the Board commends it for serious consideration by all those clergy who are in this category.
Copies of the Regulations and explanatory memorandum may be obtained on request to the Assistant Secretary.
11.	INVESTMENT MANAGERS
The Representative Body appointed Bank of Ireland Asset Management (UK) Ltd as Investment Managers of the Northern Ireland Fund from 1 July 2001. 
12.	STAKEHOLDER PENSIONS (UK)
The introduction of stakeholder pensions on 6 April 2001 will largely benefit those individuals who are in employment without the facility of an occupational pension scheme.  The regulations oblige employers with five or more employees, unless they are specifically exempt, to consult with relevant employees, designate a stakeholder scheme and arrange to deduct contributions and pass them on to the designated scheme. 
Since the Church of Ireland offers the Clergy Pensions Fund as an occupational pension scheme it is exempt from the duty under the stakeholder pension regulations.
Concurrency
Prior to 6 April it was not possible for a person to be a member of a private pension scheme and an occupational pension scheme simultaneously.  It is now possible for those earning up to £30,000 to contribute to an occupational (Chapter I) scheme and a pension arrangement approved under the Inland Revenue Chapter IV tax regime.  This is known as ‘concurrency’.  Individuals are able to contribute up to £3,600 (gross) less any AVCs to the Chapter IV arrangement.
The Board would advise members who require further information on this matter to consult an independent financial advisor. 
13.	PART-TIME DEPLOYMENT IN THE STIPENDIARY MINISTRY - REGULATIONS
The Board approved regulations in connection with the above with effect from 1 June 2000. These were amended in 2001 and are included in Appendix A to this report.
14.	ACTUARIAL CERTIFICATE
The Church of Ireland Clergy Pension Fund was last valued as at 30 September 2000.
The assets of the Fund were sufficient at that date to cover the accrued liabilities in respect of the active members based upon completed service at that date and current stipends, as well as the liabilities for pensions in the course of payment, for the reversionary widows’ pensions and for the deferred pensions in respect of members who have now left.  The Fund also satisfied the funding standard required under Section 44 of the Pensions Act 1990 (ROI).
The valuation furthermore showed that the level of contributions currently being paid into the Fund is adequate to provide for the future accruing liabilities.
Nothing has occurred since the last Valuation which would prevent the above statements from being made at the present time.
The next Valuation is due as at 30 September 2003.
James R Kehoe
Actuary, Mercer
4 March 2002
15.	FINANCIAL STATEMENTS
The Financial Statements of the Clergy Pensions Fund are set out in the following pages.
Note:	The formal Financial Statements are expressed in euro for technical reasons.  However, the Accounts of the Northern Ireland subdivision are maintained in sterling in which currency the contributions and benefits are also paid.  Since the formal Accounts are presented in euro only, changes in the relationship between euro and sterling, and the realised and unrealised gains or losses which occur as between one year and another may give a misleading impression of the comparative figures.
The following schedule illustrates the equivalent figures in sterling for contributions, investment income and benefits in relation to the Northern Ireland subdivision for 2001 and 2000 as shown in the Financial Statements.  It is hoped that this schedule will be helpful in studying the accounts.
	2001	2000	
	£’000	£’000	
Contributions			
- Members	- normal	243	233	
	- additional personal	61	52	
- Dioceses	765	744	
- Representative Church Body	570	505	
Investments and Short Term Income	1,194	1,155	
Pensions to Retired Clergy and Bishops	1,332	1,163	
Pensions to Widows and Orphans	777	646	
Commutation of pensions	24	65	
Death benefits	107	10