The Church of England is conducting a review of clergy pensions, following a request by the General Synod for a “comprehensive, independent review of what is needed to ensure that clergy and their dependants are supported in retirement with dignity and fairness”.
Back in 2001, the Church’s Clergy Stipends Review Group, recommended an 18% rise to £20,000, based on what was then a primary-school head teacher’s salary, though this recommendation has never been met. The current aim is to return the clergy pension to two-thirds of the national minimum stipend, which was itself increased by 10.7% to £33,350.
On the good side, the clergy scheme is unusual in remaining part of a “defined-benefit” scheme (ie with a clearly guaranteed level of income, though which can prove expensive if the market changes significantly) rather than a “defined-contribution” scheme (where the level of income is dependent on the market).
One of the big issues for clergy retirements is housing, as they are typically provided with housing while working, rather than with an income which allows them to purchase their own house. Currently though, it is believed some 56% of serving stipendiary clergy own a property, although according to a more recent survey, some 69% said they believed it unlikely that they would own a property on retirement.
This is clearly an issue for the church. We need to ensure our clergy are remunerated in a way which is fair and equitable, and to some extent we are freer to do this in this Diocese in Europe where individual chaplaincies, rather than the church as a whole, set the level of contribution they will make to their chaplain’s eventual pension – a significant freedom, but which brings significant responsibility with it.
Read the full article in the Church Times here.