§ 39. Mr. FlynnTo ask the right hon. Member for Selby, representing the Church Commissioners, what assessment the Commissioners have made of the difference in the value of clergy pensions under the new pension scheme and its predecessor. [15561]
§ Mr. AlisonThe current pension scheme provides a full service pension—payable on retirement at or after age 65 years with 37 or more years of pensionable service—of two thirds the previous year's national minimum stipend. The resulting figure is thus £8,533 per annum in 1996–97. Under the new future service pension fund which is to take effect—subject to parliamentary approval—from 1 January 1998, there will be no change to the bases of calculating benefits. Post-retirement increases will, however, be documented by reference to limited price indexation. This will provide a stronger guarantee for scheme members than the present legislation, under which all increases in the levels of benefits are at the discretion of the Commissioners. The past service scheme regulations will be amended to bring them into line. The object under both schemes will, however, continue to be to maintain post-retirement increases in pensions in line with stipend increases.