Bill No. 3 in the name of the Archdeacon of Cork and Canon Lady Sheil, is being brought forward at the request of the Representative Body and the Church of Ireland Pensions Board and seeks to increase the rates of members and parochial/diocesan contributions to the Church of Ireland Clergy Pensions Scheme.

This issue, both in terms of this bill and of the reports of the Church of Ireland Pensions Board and the Representative Body, is likely to be one of the key issues for the Synod. In view of the state of all defined benefit pension schemes, it is also likely to recur in synods to come.

As a result of major turmoil in the world's economies at this time further strain has been placed on levels of statutory funding required of pensions schemes including the Church of Ireland Clergy Pensions Scheme.

In view of the content of the Actuarial Certificate at 31 December 2008 and the anticipated outcome of the next triennial actuarial valuation, as indicated in the Report of the Church of Ireland Pensions Board, a revised funding proposal will have to be submitted to the Irish Pensions Board. As part of the revised funding proposal and in agreement with the Actuary, it is recommended that as an interim measure, there is an increase in the annual total contribution to the Fund by 3.6%. This increase together with anticipated future increases required for the revised funding proposal are intended to enable the Trustee to pay future benefits under the Fund as they fall due while remaining compliant with the requirements of Section 16(1) of Chapter XIV of the Constitution.

The Representative Church Body and the Church of Ireland Pensions Board have agreed that the cost of this increase should be shared between members and parishes/dioceses. This necessitates amendment of sections 34 and 35 of Chapter XIV of the Constitution which provide for the manner in which contributions are made to the Fund and details the rates of contribution.

The proposed changes, which would be effective from 1 January 2010, would increase by 2% from 5.6% to 7.6% of minimum approved stipend the amount of contribution from a member. The assessment on parishes/dioceses would be increased from 16.8% of minimum approved stipend to 18.4%, an increase of 1.6%.

Proposing the report Venerable Robin Bantry White said 'To the clergy and the parishes, this may seem a steep increase, and an inappropriate time, what with levies in the Republic of Ireland, and increased taxation in both parts of Ireland, eating into available income. However, in spite of all these difficulties and in spite of the challenging outlook for defined benefit pension schemes, this is an overwhelmingly good deal for the clergy, supported as it is by the continuing commitment of the Representative Body'.

For its part the Representative Church Body would be agreeable in principle to making capital transfers into the Fund at future dates in relation to currently identified past service liabilities, subject to the prevailing financial circumstances in relation to its General Funds and offset by consequent adjustments to pension subventions from allocations.

The Bill passed its second reading and is now clear for its third reading on Sunday.