THE Church of England Pensions Board has reported that its funds
performed well in 2012, but conceded that providing pensions and
housing to future retired clergy would be a challenge.
The Board, which manages more than £1.3 billion-worth of assets,
and provides pensions for 8612 retired clergy, published its annual
report and accounts for 2012 on Wednesday.
The Board manages two "investment pools": a "Return Seeking
Pool", which generated a 10.6-per-cent return on investments during
2012, outperforming its benchmarks for the past one, three, and
five years; and a "Liability Matching" pool, which matched its
benchmark during 2012, but outperformed it over the past three,
five, and ten years.
Church House said that the Board had carried out a valuation of
the Clergy Pensions Scheme "to make sure that it stays on course to
provide the promised benefits over the next 50 years or more". As a
result of the valuation, dioceses had been asked to increase the
proportion of clergy stipends which they contribute to the scheme
from 38.2 per cent to 39.9 per cent, with effect from 1 January
2015. Clergy do not contribute to the scheme, and there are no
plans to change the pension benefits they receive, in contrast to
the last valuation in 2009.
The report says that investment income of £1.4 million generated
by the Board's charitable funds was "not sufficient to cover the
services we provide". Without gifts, donations, and legacies, it
would "not be able to offer the level of services currently
During 2012, the Board commissioned research into the future
housing needs of retired clergy, which suggested that about one
third of retiring clergy would need help with housing. The Board
has also launched a consultation on the CHARM rental scheme,
whereby the Board buys properties that are let to retired
Read the full report here.