The Board administers three main pension schemes –
The Church of England Funded Pension Scheme (CEFPS)
The CEFPS is an open Defined Benefit Pension Scheme providing pensions and associated benefits for clergy and others in stipendiary ministry for service from 1 January 1998; benefits for service prior to that date are wholly funded by the Church Commissioners.
It has 8,200 active members and there are 10,500 pensions in payment
The last valuation at 31 December 2015 showed that the fund had a deficit of £236 million, and a recovery plan was agreed to bring the scheme back to full funding in 2025.
The benefits structure is linked to the National Minimum Stipend (NMS), with the amount of pension earned related to the length of service carried out. The scheme rules provide for increases at the rate of the change in the Retail Prices Index, subject to a maximum rate increase.
The Church Workers Pensions Fund (CWPF)
The CWPF is our most complex scheme. It provides a service to employers linked to the ministry and mission of the Church of England. As parishes and organisations look for pension schemes for their employees, an increasing number have joined this particular scheme. There are currently around 450 employers participating in the scheme, some with only one or two employees in a parish, and others with several hundred.
The scheme has two sections – a defined benefits section and the “Pension Builder” section. Pension Builder comprises two hybrid sub-sections where the level of contributions is chosen by the employer. Under Pensions Builder Classic the contributions provide an amount of pension payable at the member’s normal pension age. Pensions Builder 2014 provides a lump sum that members use to provide benefits at retirement. Bonuses are added from time to time, depending on the investment return earned by the fund and the financial position of the sub-sections.
There are 4,300 active members of the scheme, with 3,200 pensions in payment.
The last valuation at 31 December 2016 showed the defined benefit section had a deficit of £29.4 million; and the pension builder classic section had a deficit of £14.2 million,
The Church Administrators Pension Fund (CAPF)
The CAPF provides pensions for the staff of the National Church Institutions. They are mostly based in Church House and in the offices of the Archbishops of Canterbury and York.
The fund has two sections – a defined benefits section which closed to new entrants in 2006, and a defined contributions section. The defined benefits section was amended in 2010 so that it is on a career average earnings basis for future service, rather than a final salary basis. Both sections are non-contributory by the employee although defined benefit members pay towards the cost of benefits for dependants. Pension increases are linked to changes in the Retail Price Index.
There are 630 active members of the scheme and 810 pensions in payment.
The last valuation was carried out as at 31 December 2014. The difference between the scheme’s assets and its liabilities for the defined benefit section was a deficit of £25.1 million.