Bill Number 1 at the 2010 General Synod that will amend the provisions for clergy pensions in the Church of Ireland passed its first and second stages today. 

The Bill is a complex one which will replace an entire Chapter of the Church of Ireland constitution (Chapter XIV) with a new Chapter. The Bill attempts to achieve a number of objectives...

To conform to changes in pension legislation in the Republic of Ireland

1. The Bill will, if passed, create a new Church of Ireland Clergy Pensions Trustee Limited company which will act as the Trustee for the clergy pensions fund. This is necessary because new legislation in the Republic of Ireland requires that the 'Trustee' and the 'sponsoring employer' be two separate bodies. Hitherto, the Representative Church Body had been acting in both capacities. The trustee will have its own Articles of Association and Memorandum, neither of which can be amended without the consent of General Synod.

2. A new Internal Dispute Resolution Procedure is provided for as required by civil law.

To ensure the solvency of the Pensions Scheme

1. With effect from 1 January 2011 there will be an increase in the rates of contribution made to the funds by the members of the fund (the clergy) and the Dioceses. A further increase may be needed in 2015.

2. Until 2019, the basis on which pensions will be calculated will be 'pensionable stipend' rather than 'minimum approved stipend'. The pensionable stipend will be approved annually by General Synod on the recommendation of the Trustee and the Representative Church Body and shall not be lower than the previous year.

3. New provisions for Episcopal Pensions (ie for those who will be Archbishops and/or Bishops on or after 1 January 2011).

Proposing acceptance of the Bill, the Archbishop of Dublin, the Most Revd Dr John Neill remarked that "At a time when many Defined Benefit Pension schemes, that is those based on a final salary, are under pressure, the clergy pension scheme appears very attractive. However what is easily forgotten is that clergy stipends do not rise with years of service as do pay scales in other professions, and the pension has been based strictly on the minimum approved stipend." Urging continuation of defined benefit pensions for clergy he acknowledged that "This is a costly Bill for everyody" but he added, "I am convinced that it is a fair Bill, and it is based on the reality that the Church of Ireland not only has a responsibility for its clergy, but is determined to fulfil this responsibility in as realistic a way as possible. It is also based on the other side of the contract that the clergy and bishops, who are the members of this fund, are prepared to take their own share of the pain in these difficult times. "

Seconding the Bill, Geoffrey Perrin (Dublin) concentrated on the legal aspects of the Bill. He said, "The simple reason for most of this is to bring the oversight and running of the scheme in line with current legislation and best practice, an area which has seen significant change in recent years. You may recall some high profile business collapses with very significant pensions implications in recent years; Maxwell publishing in the UK, Enron in the US and last year Waterford Glass. Each of these underlined the need for greater regulation and control over pension funds to simply better protect the rights of employees and pensioners... The essential thing to remember is that nothing changes neither in the overall accountability and control nor indeed in the crucial day-to-day work carried out by the staff in Church House, the work of the Investment Committee and the CPB [Clergy Pensions Board]. Because the new corporate trustee is being set up in a way such that it can delegate many of its trustee duties to just these crucial people and committees who have done all this work in recent years."

The Synod approved the Bill at its first reading after which the house went into committee to consider the Bill in detail. 

The Synod will return to considering the Bill on Saturday 8 May 2010.

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