The Church of England is considering reforming the pension scheme of its clergy. The move is part of a wider effort by the Church to improve clergy wellbeing by improving the stipend to catch up with the effects of inflation.
Under the pension plans being considered, the Church will restore the target pension level to two-thirds of pensionable stipend. The proposal also includes an increase to pensions that have come into payment since 2011.
The proposals come from an analysis by the Church of England Pensions Board and will be considered at the General Synod. Should the plan be accepted, it could be implemented from April next year.
Put simply, the proposals mean that after 40 years of service, clergy in the Church of England can expect a pension worth £20,000 per annum in today's money. Combined with a full state pension, their annual income would likely be over £32,000 per year.
As well as improving pensions and the stipend, the Church is also looking at ways to help clergy find retirement housing or to get onto the housing ladder at all. Further details on these plans are expected in the coming weeks.
The Rev Dr Ian Paul, a member of Archbishops’ Council said, “This is fantastic news, which I hope will be of great encouragement to all serving and retired clergy."
Another member of the Archbishops’ Council, Dr Miranda Threlfall-Holmes, noted, “This set of proposals will come as a huge relief to clergy and pensioners.
“Nobody is in ministry for the pay, but the covenant the Church makes with clergy is that they should be freed by the stipend from financial stress.
"In recent years this covenant has been straining at the seams, and thousands of clergy have been asking for the restoration of the historic two-thirds pension, which this package now effectively provides.
“I hope they feel heard today, and I pray that Synod will approve these proposals whole-heartedly in July, so that we can begin to increase pensions already in payment as soon as is possible.”
