The Church of Ireland Pensions Board administers the Church of Ireland Pensions Fund.  The Representative Church Body is the Trustee of the Fund.

In its report to the General Synod today, the Board expressed its thanks to Archbishop Robin Eames, former Archbishop of Armagh, for his contribution during his years as a member of the Board. A warm welcomed was extended to the Rt Revd Paul Colton, Bishop of Cork, who was appointed in Archbishop Eames’ place in January of this year.

In January 2006, the Board asked the actuary to make a presentation to the Board, to outline the key factors giving rise to the increasing costs of Defined Benefit Pension Schemes.  As a result of this presentation, a small sub-group was set up to seek to ensure that long-term survival of the Defined Benefit Scheme and to maintain the non-integration of the clergy pension with the single person’s contributory State pension.  A number of proposals were considered and it was finally recommended that a small additional increase in the annual contribution rate, together with a possible increase in the Normal Retirement Age (NRA) from 65 to 67, would be the most appropriate to secure the future of the Fund.  Seconding the report, the Revd John McDowell (Down) emphasised that further investigation of these proposals is ongoing.  “And it is important to remember that the changes suggested are still under discussion, while require much more detailed work, and that the Pensions Board will do everything reasonable within its power to find other ways to mitigate the effect of these possibilities,” he said.

In November, based on the Triennial Actuarial Valuation of the Fund at 30th September 2006, the actuary informed the Board that an increase of 1.7% in the contribution levels would be required to maintain the long-term solvency of the scheme.  The Board and the Trustee agreed to propose this increase, to be effective from 1st January 2008, and to be shared among the current contributors in the same proportion as exists at present.  This requires a Bill to amend Chapter XIV of the Constitution.  This Bill No 6 was received by Synod earlier today and will receive its final reading on Thursday.

Proposing this year’s report of the Pensions Board to the Synod, Mr Geoffrey Perrin (Dublin) emphasised the desire of the Board to “do all in its power to ensure the long term survival of the Defined Benefit Scheme and to seek to maintain it as a non-integrated scheme.”  “As a Board, we want to do all we can to keep intact what is clearly a very good and much appreciated scheme,” he said. “Having said all that we have to deal with the reality of the times we are in and to take whatever steps are necessary to ensure both the long term survival of the scheme, but that it also meets the statutory requirements, most noticeably the solvency requirements of the Irish Pensions Board.”

Referring to the Board’s suggestion of a possible increase in the Normal Retirement Age from 65 to 67, Mr Perrin told the Synod that this was by no means a definite plan and, if implemented, would only be scaled in slowly and was not intended to affect those in the latter stages of their ministry.  “But the Church is under the same obligation as other organizations to act responsibly and especially to ensure that it does not allow a gap to open between what it promises and what it can afford to pay in the long term,” he said.

The Revd Canon Michael Kennedy (Armagh) expressed concern at this proposal to increase the NRA.  He spoke of those members who are over 65 and who may have been making careful preparations for their retirement, based on the current arrangements.  What would these arrangements mean if this proposal were introduced?  Canon Kennedy also expressed his concern for those who may need to seek early retirement and then find themselves unable to support themselves financially.

Bill No.6 also provides for the extension of child dependency allowances payable to surviving spouses of deceased members of the scheme to include each unmarried child up to the age of 23 in third level education. “This may seem to be a very small enhancement, and I suppose in one way it is”, said Revd McDowell.  “But now and in future years it will be of perhaps crucial benefit to individuals, making the financial difficulties of third level studies, and all the worry that can accompany them.  And it is our aim, on the Pensions Board, to see beyond the figures to the people, to the individuals who the scheme was designed to benefit.”

To read the full financial statement of the Church of Ireland Pensions Board, please click here.