A RISE within the clergy pension, the launch of a grant to “kick-start” long-term savings for brand spanking new clergy, and the scoping of recent pension provision for church employees are among the many developments set to happen in 2026 — the centenary 12 months of the Church of England Pensions Board.
The Board’s annual review, published this week, describes a scheme “in robust health” and greater than fully funded as on the valuation date. Its investments — totalling £3.5-billion — had secured a return of 9.5 per cent in 2025.
The scheme’s health has enabled the rise within the pension agreed by the General Synod last 12 months (News, 3 October 2025). Under latest rules — agreed by the Synod last week — the pension will likely be set at two-thirds of the national minimum stipend (NMS).
“Our aim is that those retiring after 1 April will retire directly onto the brand new advantages, and people already drawing pension will receive a special increase sooner or later in tax 12 months 2026/27 once the person calculations have been concluded,” the annual review states. “Our online tools on PensionsOnline will likely be updated from April 2026 to permit members to run their very own forecasts as to how the changes will affect them.”
The changes will likely be applied retrospectively, and the review says that this entails “probably the most complicated projects the Pensions Board has ever undertaken”. The chair of the Board, Clive Mather, confirmed in a written answer to a Synod query this month that the Board had “already engaged additional specialist resources each in house and thru the scheme actuary to expedite the work required which incorporates systems changes and 1000’s of individual calculations”.
In 2025, the Triennium Funding Working Group announced a £95-million allocation to the Pensions Board for the subsequent three years, to facilitate continued provision of retirement housing, and a spread of recent financial well-being services to support the clergy of their retirement planning.
The Board will likely be buying more houses. It has also set out plans to launch “a latest suite of monetary wellbeing services to help clergy households with financial and retirement planning” in 2026. This follows the “Enabling Choice” consultation carried out in 2023 (News, 5 July 2024). The package will include a grant to “kick-start” long-term savings for those newly ordained in 2026, access to free financial coaching and independent advice at “life milestones”, latest mortgage products delivered through regulated providers, support from advisers in dioceses, and a latest online portal: “The Finance Hub”.
There are also plans to “explore the scope” for a latest kind of pension arrangement for church employers and their employees. This is described within the review as “a hybrid scheme that attracts on a few of one of the best features of each direct contribution and defined profit pensions”. The aim is to supply it to the Church in 2027.
Among the Board’s strategic objectives is being “a pacesetter in ethical and responsible investment, acting in members’ interests”. A latest Global Centre for Peacebuilding and Business was launched in Cape Town (News, 13 February) this month. It will work with other corporations and investors to support peacebuilding programmes in conflict environments.
From 2026, the Board plans to supply “transition coaching” to those that retire early on health grounds. It may also support the independent review of dignity and fairness in retirement, requested by the General Synod last 12 months (News, 15 July 2025).
In a paper for the Synod, its Secretary-General, William Nye, published the Terms of Reference for the review, after conversations with the Clergy Pensions Action Group.
The chair of the Archbishops’ Council’s Finance Committee, Carl Hughes, told the Synod: “Establishing the review has taken longer than the Council hoped and intended, and I’m sorry for that. It doesn’t signal any lack of intent. The Council is firmly committed to the review.” The aim is to finish an interim report in July and to bring a final report back to the Synod in February 2027.
