Clergy Pension Action

Stories

A collection of stories from pension scheme members, both those considering their retirement or actively experiencing it

Presuming I will be able to work until I’m 70 my pension, before tax, is forecast to be £11,506. I am lucky as approximately one third of my 29 years ministry is pre-2011, after which pensions were so deeply reduced. However, as someone who will be dependent on CHARM for housing perhaps you can imagine my dismay when I learned that the combined rent and council tax for a modest house in rural SW England will be £11,569.

I have, so far, spent 43 years in pensionable service and my stipend has either been the principle income or only income for that time, (my wife has worked very hard in caring for 3 terminally ill relatives and other family members with health issues).  I have served as a Parish Priest, a Diocesan Missioner and a Cathedral Canon and have been the chair of the House of Clergy in my previous diocese for 12 years. In those years I have seen the covenant of care for clergy progressively diminished often as response to a funding shortfall in pensions or for the Church Commissioners.

It is clear that the clergy are asked, in hard times, to face a reduction in the real value of stipend, pensions and retirement housing but no remedy or restitution for this is offered when the Church Commissioners do well. Investment strategies are all well and good but I had believed that the purpose of the Commissioners was to support the Parishes and the Clergy.

In about 3 years I retire and we would like to stay in this area. This means we will have to seek social housing for three reasons which were clarified for me at a recent Church retirement seminar.

A – we have no Capital (no large spousal income or inheritance to build such)

B – there is no CHARM Housing north of Ripon

C – CHARM Rents are, as illustrated at the seminar, about double those of social housing rents here and are no longer, as formerly, linked to to a percentage of the clergy pension.

I don’t despair as I trust we will be ok but this will be despite and not because of the care exercised by the Church for its clergy.

This week clergy stipends were delayed 24 hours and this caused many to realise that even such a short delay could lead to a crisis for some clergy households. This is as nothing to the lack of provision and thought in terms of pensions and retirement housing.

I am preparing to retire next year after 42 years Service (including 10 years as Stipended Church Army Office and 10 years as NHS Senior Hospital Chaplain ~ challenging me to be Ordained!).

Thankfully we were advised early on in training with CA to take out some sort of supplementary pension but even so my State pension will just cover CHARM rent and I will have to manage on the remainder. The calculations at present look as if ends will just about meet with lump sums being eaten by removal fees, the eventual need for a mobility scooter and other medical costs.

I had planned for retirement at 70 but I will be going at 69 due to my final post being so stressful.  My vicarage is secluded (hidden behind church and hall) and a prime target for anti-social behaviour. My life has been threatened often (16 crime numbers in 5 years for verbal and physical abuse) and I am single in lone ministry. The most recent assault was an attempted break-in to ‘do damage to the vicar’ by 17-19 year olds and my mental health has had enough! I have CCTV cameras for my immediate practical safety so at least know if it is safe to go catch the bus or go down to church to set up for worship.

Why am I still here? Simple ~ God called me here to serve an amazing group of people in an oppressed area who need to know God loves them. Retirement now beckons next year as I want to enjoy some healthy me time.  Hey ho ~ I have been blessed to minister ~ but not necessarily by the church that employs me!

I was ordained in 1994 aged 25. At age 68 I will have accrued 39 years and 272 days service, if I work on to 70 it would add no extra pensionable service and my pension would be exactly the same. That’s because I have so many 37th’s, so many 40th’s and so many 41th’s  … and they max out at aged 68, even though it isn’t full!!!

At age 65 I will have accrued 39 years and 22 days and the pension will be almost the same as if I worked another 3 years!

The only thing I can do via the Pensions Board is do AVC’s, and they only increase the lump sum, not the annual pension.

I think for me it’s frightening, really frightening and sadly disappointing.  I’m 3 years from retirement but it all seems too late and to be frank I’m burnt out so the idea of PTO [part-time post-retirement clergy work] fills me with concern for my own health especially mental health.

To give an idea of how the real world views a stipend…. I have just been turned down as a guarantor for my son’s student house next year. The landlords expect £39k salary or an asset… I personally think this is unreasonable, but they said my son could pay six months rent in advance…. As if.  (The company have now contacted clergy payroll to verify how a stipend works….)

A while ago there was a major shift from  ‘defined benefits’ to ‘defined contributions ‘ pension plans.  The C of E (in its infinite wisdom) chose to stick with a DB system. This means that instead of pensions rising in line with the rises in the underlying  value of the funds, pensions have only risen according to what the C of E permits.

As pension funds have risen dramatically over the past 30+ years, the net result has been that the C of E has been creaming off the excess profits for other purposes. Had the C of E moved to a DC system back then, clergy pensions would be in a far better position. One might say that we have been cheated out of considerable pension benefits.  (Very few organisations – other than the C of E – use a DB system these days. There are reasons why this is so.

IN THEORY a DB pension could be better, but in reality, DC pensions have proven to be a far better bet over the past 30+ years.)  My Anglican Church of Canada pension (a DC pension) is worth almost as much as my C of E pension, even though I served over twice as long in the C of E as I did in Canada.

I want to record my appreciation for the Clergy Support Trust who have helped out our family generously in times of need. Without their support my family would be very stuck.

I note that the Church Commissioners donated £2 million to them this year. Even that seems too little for the work they support and the stop gap they provide. However, the Church Commissioners should be embarrassed by having to fund a charity that supports their clergy better than they do. They need to stop hoarding their wealth before it’s too late. A radical change within the Church of England needs to happen otherwise it’s doomed to fail.

Regarding the pension, we are a young family out of training with 30+ years service left to give, however the pension was never something mentioned before or during training. It is only now we have realised the issue with the pension and the consequences it will inevitably have.

We don’t have the funds to save each month to top the pension up. We don’t have inheritance to look forward to to top it up so for now unless something changes it really is “what retirement”?

With 25 years ministry when I retire my state pension will still be more helpful than my CofE one.

Due to unforeseen circumstances I have become a single parent and forced to go from full time to part time stipendiary ministry.  The value of the tied accommodation is deducted from the part time stipend. However, when I retire the value of the tied accommodation does not feature in the pension calculations. So I am paid less now as the Vicarage is part of my pay but will be paid even less at retirement as the pensions board do not consider the Vicarage to be part of the value of my final stipend. Church of England maths.

I was flabbergasted to discover that my husband can not qualify for a FULL pension.  He went into training at age 24, ordained at 26 and plans to work to 68 (God-willing) and yet he will be 211 days short of a full pension. Can anyone qualify for a full pension?  He assures me that it makes only a little difference but it just feels wrong!  NB Working beyond 68 will make no difference as nothing extra will be added to the pot … according to the Pensions Board

…therefore, there is no way to get a full pension.

I left university aged 22, and had one year of employment as a sales assistant in a small, independent shop before entering ministry in the Church.  I worked for a further year as a Careforce Volunteer for a parish, before beginning three years of training with Church Army. For obvious reasons, none of my time before beginning that training was in employment which offered any sort of pension provision.

On beginning my training, I knew very well that remuneration would be adequate to live on, but certainly nowhere near enough to contemplate home ownership, and I accepted that, as obviously no one follows God’s call for financial reasons! At the same time, I and my colleagues were assured by the Church of England that, as long as we worked for 37 years, we would have a full pension and there would be decent accommodation on retirement.

Being 27 years old in 2000, the year of my commissioning as a Church Army Officer (and therefore entering the CofE Pension Scheme), I knew that I would have just over 37 years until reaching age 65, thus guaranteeing the full pension.

Come 2009, and having discerned God’s call to ordination, I was aware that I would be taking a break from the pension scheme of a little under two years to undergo the ordination training. By that time, retirement age had risen to 67, so despite the break, I would still just make the 37 years required for a full pension.

Everything changed in 2011. Not only were the pension levels reduced from two thirds of National Minimum Stipend to one half, the amount of years’ service required for a full pension increased to 41. And so suddenly I found myself unable to reach full pensionable service despite having given virtually my whole working life to God and the Church.

The changes to the pension and subsequent devaluing of it would be bad enough. I am fortunate in one sense in that, before leaving my Church Army Training, my cohort had a session with a financial advisor who said that the one thing we should do above all else is to start a private pension. We heeded his advice and, whilst we have not been able to afford to put a lot into it, it will at least help alleviate the financial fears of being able to live on retirement.

Which still leaves the question of housing. The promises made to us back in 1997 seem flaky at best when we see examples of what is available through the CHARM scheme. Putting it bluntly, we would not be able to afford the rent on any of the properties currently advertised as available, if we take into account the Council Tax, utilities, insurance, daily living, and other regular expenditure that we would need to find the money for as well.

I understand that, historically, the lump sum that goes with the pension was intended to help clergy buy a property on retirement; clearly the lump sum has failed to keep pace with housing costs (I appreciate it would have been very difficult for that to happen), and so few clergy whose income has only been the stipend, like in our situation, will be in a position to buy a property on retirement.

And so, we (my wife and I) face the very real prospect of being homeless when I retire. It may still be 15 or 16 years away, but I am over 50 now, and there is a sense of foreboding about what will happen to us when retirement comes.

I find it hard to accept that someone who has dedicated their life to God and the Church should find themselves in a position where the pension and/or housing is so inadequate that they are having to apply for charitable support. This is surely morally unacceptable for the Church of England to be in, particularly as there is regular comment from bishops and others about the inadequacy of housing, etc in the wider society. I really would hope that the Church of England would ensure that those under their care are adequately housed in retirement as well.

Back in the late 1980’s – when we started the journey of ordination – we were ‘strongly encouraged’ to sell our house, which we did. We were a family with young children: the profit left after sale vanished during three years of residential training.

I have been a welcome recipient of funds from Clergy Support Trust for a few years, but by no means all of my nearly 30 years of ministry, and have always been so thankful for their generosity and support.  However, as I reflect on some of the comments from other clergy it should surely be a matter of intense shame and concern that this charity should even be necessary amongst a group of Christians.

If an organisation needs to be set up to support clergy who do not have the means to support themselves and their families financially, through no fault of their own, but because they are not being adequately remunerated for the work that they are being asked to do, then surely the Church Commissioners (or whoever sets pay) should be asked whether they are fit for purpose. Quite frankly some of the financial issues that are being shared by clergy make me ashamed to be party to this as a fellow minister and I only hope that those facing such a difficult future can find some real answers and solutions before it’s too late.

I’ve brought 6 years of stipendiary service from the Church in Wales to the Church of England but that service does not count towards the 15 years’ required service for CHARM housing. The Church of England paid nothing towards my training or the experience they are now benefiting from. A bit tight I thought just to qualify to rent a house from them.

I’m 56 and would like to benefit from the housing scheme but would have to work until 71 (you can have 3 years of HfD) to qualify so the six years service in Wales would make all the difference for me allowing me to retire at 67 with my state pension.

Additionally, I was shocked to see that the full pension is based on 41.5 years service too. At least Wales’ is 40 years although the stipend is lower.

One of the problems is that clergy are ‘normally’ well meaning servant hearted people. So a system that takes advantage of that will create the circumstances we find ourselves in. We are the most costly local ministers in the country. A diocese on average seems to say to its parishes that you need to pay £85k for a clergy and all the associated support costs. And yet clergy are finding life difficult and struggling in retirement. And, as my financial advisor friend pointed out, an income higher than a stipend is required in retirement due to the need to pay housing costs. As long as we remain reasonable and simply complain very little may change.

30 years in with only a few to go – and feeling that I/we have been taken advantage of over the past 15 years, in the “knowledge” that clergy won’t get militant over pay.

The reality is that the principle that undergirds the stipend – that clergy should have sufficient funds to live, while not extravagantly, but with enough not to be anxious about how to survive – does not reflect in the pensions planned for us.  The change from when I started in ministry is starkly revealed as another person on this group also mentioned.

My stepmother’s pension as a clergy widow is rising to over £18,000 per annum in April in real terms that means that if my father was still alive his clergy pension would have been £27,000 and sufficient for a moderate retirement. I will have worked longer in the church than my father by the time I retire, but my pension currently will be just over £14,000.

I’ve served 31 years in stipendiary ministry and will serve 11 more not simply because it’s an honour and privilege to do so but also because I have no savings, home or inheritance coming my way… it’s beginning to get serious now.

My husband says he hasn’t the headspace to engage with all this – all personal resources ploughed in the “just doing ministry”. Planning to retire in next 5 years and just started crunching numbers/looking at CHARM houses. It’s only been since a pre-retirement course in September but so stressful for me. I’m finding it very hard – The first time in over 30 years of ministry that I’m feeling let down & faith very wobbly….😞

I have learnt how to handle the strains and stresses (not always well) and I’m deeply aware of the personal cost of ministry at the coal face, not least to my family and living with regret that things could have, should have, been better. But do I think I wanted to be ‘managed’ by someone looking over my shoulder at my diary and asking me to justify myself. No! I enjoyed the freedom to plan my time and have space in my head and heart to respond to an unexpected demand or situation.

Ministry sets us free to be able to live and in that context we work out our salvation in fear and trembling. That freedom we enjoy is costly to the Church who sets us apart in Ordination to be and do the work of a Priest. Does the church put its money where its mouth is? No, not by reducing pensions, or increasing the qualifying years, or allowing the value of stipends to fall in real terms.

I have had complex medical needs for decades and after reaching 9 different illnesses and a decrease in my mobility and balance, I felt the time was right to approach my doctor and Bishop for their opinions and they agreed with me. They both wrote very supportive letters.

I submitted my papers and waited. After a couple of months I phoned the pensions board and asked if there was a problem and was told that I should get some more supportive documents as my doctor, Bishop and I might be “colluding”. I was extremely upset but did just that. I had a telephone conversation with a doctor appointed by the pensions board who told me that 4 of my conditions meant this should have gone through automatically. She had also been given the impression that I had only been ordained a few years as opposed to over 30. I did receive a full pension and lump sum but my pension is £1205 per month and my rent from CHARMS is £849 for a 2 bedroom bungalow. Council Tax and Water Rates another £ 180 and gas and electric £ 200. So the idea is that you live off thin air but no the expectation is that you use up your lump sum, which if I had the state pension would last me a lot longer and allow me to have additional holidays.

According to the pensions board we have to fill in copious and intrusive State Benefit forms alongside those for Church Charities, we certainly know about “the crumbs from the table”.  There is no proper provision for sick and disabled clergy and it is just another example of how the church can not care for those who have given faithful and loyal service over decades.  That in a nutshell is my story.

I certainly don’t work 60 hours. It would break me. In fact I did suffer burn out in my
Last job, and ended up on sick leave and medication (which I still take). The burn out was more to do with the pressures of certain situations, but I was overworking.

I am happy to earn a stipend. It is adequate to live on and I’m far better off than most parishioners. It enables me to model my life on a pattern of prayer, work, more prayer, and living as I believe Christ calls me to; to model the opposite of over work to the world around me!!

What I do think needs attention is what happens when I retire. I have no home, no savings, and no potential inheritance. Like many other clergy. My pension needs to increase and/or the provision of housing in some affordable form needs to continue into my retirement. I was ordained at 34 and we had to sell our flat for me to move to college because we couldn’t afford to risk going without tenants. Because of the 2007 crash, we just managed to sell above our buying price so we could pay off some debt.
It’s not about rewarding some worldly view of workaholic self sacrifice; it’s simply about making sure we can be dignified in retirement.