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.