§ 40. Mr. CorbynTo ask the right hon. Member for Selby, representing the Church Commissioners, what estimate the Church Commissioners have made of the ability of the pension fund to meet the needs of clergy and staff and to ensure that they receive increases at least in line with inflation in the future. [10021]
§ Mr. AlisonUnder current proposals, the Church Commissioners will meet the cost of clergy pensions earned up to 1998 and they have confirmed their continuing commitment to meet that cost, including pension increments. They have assessed the likely costs with actuarial advice and their financial projections allow for pension increments in line with the existing formula, which links them to stipend.
From 1998 onwards, subject to legislation, it is proposed that the cost of pensions will be met by contributions from dioceses and parishes into a new scheme administered by the Church of England pensions board. The board is discussing with dioceses estimated contribution rates, advised by actuaries; these allow for increases at least in line with limited price indexation. The commissioners would give short term support to dioceses as they make the transition to paying pension contributions in full.
The legislation will also enable a funded scheme for staff pensions to be established. Staff are contractually entitled to pension benefits in line with those of civil servants.