CofE synod will not be drawn on 100% equity strategy

The synod - which is meeting all week - will discuss pension issues tomorrow. It will focus on how to handle the consequences of major market downturns, increased longevity of members and the scheme's £360m deficit.

The Archbishops' Council report - which set out proposed changes to the scheme including increase the pension age for future service to 68 and increasing the accrual period for future service to 43 years - is also on the agenda.

However, independent pensions consultant John Ralfe said he was surprised the synod has no plans to discuss its contentious 100% equity investment strategy (PP Online November 3, 2009).

Ralfe reiterated calls for the scheme to make public the "consistent professional advice" it received to hold 100% in equities (PP November 12, 2009).

Ralfe added: "The issues about investment are not even on the agenda, unless of course somebody raises it or the issue of how to reduce the cost of pensions going forward.

"The overall point continues to be corporate governance - what is the decision making process, what is the advice they received, what is the corporate governance, and why won't they make any of that public?"

The Archbishops'Council report identified four measures which would reduce the contribution rate by 15 percentage points:

• Contracting the Clergy Scheme into the state second pension and reducing the full pension from the Clergy pension scheme from two-thirds of national minimum stipend to half of NMS for future service;
• Limiting the annual increase in the pensionable stipend to price inflation (RPI);
• Changing the pension age for future service from 65 to 68; and
• Moving, again for future service, the accrual period for full pension from 40 to 43 years.

In light of these consultations, the Archbishops' Council will be invited to submit to the synod in July final proposals, including such changes as are necessary to the funded scheme rules.