TUESDAY'S NEWS
Synod legislates to ensure clergy pension fund’s
future solvency
A bill proposing to raise the contribution rate of clergy to the
Clergy Pensions Fund was proposed by Mr Geoffrey Perrin, Chairman
of the Representative Church Body’s Executive Committee.
The Bill, if it is passed at the third reading stage on Thursday,
will have the effect of raising the rate of pension contributions
from fund members by 0.5% from 4.8% to 5.3% of minimum approved
stipend. The rate contributed by assessment on parishes/dioceses
will increase from 14.4% of minimum approved stipend to 15.9%,
an increase of 1.5%, and the Representative Church Body itself
will contribute an increase of 1.1% from 6.6% to 7.7%, bringing
an overall increase in annual total contributions of 3.1%.
Proposing the legislation, Mr Perrin explained that the recent
actuarial valuation of the fund had reported a deficit and that
government legislation, as well as the Church’s own interest
in maintaining the fund in a healthy state, made it imperative
to act to correct the shortfall. Similar situations were being
experienced by many pension funds as a result of a fall in global
markets over a number of years and in fact the Church of Ireland’s
shortfall was less serious than those of many funds. A number of
ways to address the deficit had been considered by the RCB and
the Clergy Pensions Board, which both supported the proposal put
to the General Synod. The Bill’s seconder is Lady Sheil,
who serves as a member of the Pensions Board.
In accordance with formal procedure, Mr Perrin put a motion seeking
permission to introduce the Bill and this was agreed without debate.
The Bill proceeded immediately to the Second Reading, where one
amendment relating to the technical description of solvency was
put by Lady Sheil and passed. At the end of the Second Reading
Synod passed the Bill without debate and the third reading was
fixed for Thursday.
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