Day 1
Legislation Proposed to Close Church of Ireland Clergy Pensions Fund AVCs
A Bill which, if approved by members, will close the Church of Ireland Voluntary Contribution Scheme for clergy pensions and transfer and re–invest all monies held in the scheme with the appointed pension providers for the Clergy Defined Contributio
The Church of Ireland Voluntary Contribution Scheme (AVC Scheme) was approved by General Synod in 1985 and enabled a member of the Church of Ireland Clergy Pensions Fund to make additional contributions towards their pension benefits.
In 2013 the fund was closed to new entrants or for future accrual of service by existing members and the Church of Ireland Pensions Trustee DAC was appointed trustee of both the fund and the AVC schemes. Following advice on the administration and management of the Clergy Defined Contribution Pension Schemes, the trustee and the Representative Body have determined that it is no longer in the interest of members of the fund to administer the AVC schemes as stand alone schemes separate from the fund and the Clergy Defined Contribution Pension Schemes.
The RB, on behalf of the trustee, is bringing a motion to General Synod for consent to close the AVC schemes, to transfer and reinvest all monies held in the schemes with the appointed pension providers for the Clergy Defined Contribution Pension Schemes and wind up the AVC schemes. This requires an amendment to Chapter XIV of the Constitution.
The Bill was proposed by Robert Neill who emphasised that the closure of the AVC schemes provided for in Bill No 9 only related to the schemes operating before June 2013. The separate AVC schemes operating under the Defined Contribution Pension schemes will continue.
“Moreover, the closure will be effected by a seamless transfer of the old AVC schemes to the
Defined Contribution Pension schemes and in early course on to the new Master Trusts.
Subscribers may continue contributions as before and will benefit as before. The funds will be invested with Mercer in the same format as before. The fees payable will be less than they would have paid in the former AVC scheme which should result in better fund returns and they will be able to continue to make contributions into the future. Therefore, the implementation of this legislation is considered to be in the best interest of members of the Clergy Pensions Fund, and I propose this Bill,” Mr Neill concluded.
The Bill passed its first stages and will receive its third reading online on Tuesday evening.