A RISE in the clergy pension, the launch of a grant to “kick-start” long-term savings for new clergy, and the scoping of new pension provision for church employees are among the developments set to take place in 2026 — the centenary year of the Church of England Pensions Board.
The Board’s annual review, published this week, describes a scheme “in robust health” and more than fully funded as at 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 in the pension agreed by the General Synod last year (News, 3 October 2025). Under new rules — agreed by the Synod last week — the pension will 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 new benefits, and those already drawing pension will receive a special increase at some point in tax year 2026/27 once the individual calculations have been concluded,” the annual review states. “Our online tools on PensionsOnline will be updated from April 2026 to allow members to run their own forecasts as to how the changes will affect them.”
The changes will be applied retrospectively, and the review says that this entails “one of 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 question this month that the Board had “already engaged additional specialist resources both in house and through the scheme actuary to expedite the work required which includes systems changes and thousands of individual calculations”.
In 2025, the Triennium Funding Working Group announced a £95-million allocation to the Pensions Board for the next three years, to facilitate continued provision of retirement housing, and a range of new financial well-being services to support the clergy in their retirement planning.
The Board will be buying more houses. It has also set out plans to launch “a new suite of financial wellbeing services to assist 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”, new mortgage products delivered through regulated providers, support from advisers in dioceses, and a new online portal: “The Finance Hub”.
There are also plans to “explore the scope” for a new type of pension arrangement for church employers and their employees. This is described in the review as “a hybrid scheme that draws on some of the best features of both direct contribution and defined benefit pensions”. The aim is to offer it to the Church in 2027.
Among the Board’s strategic objectives is being “a leader in ethical and responsible investment, acting in members’ interests”. A new Global Centre for Peacebuilding and Business was launched in Cape Town (News, 13 February) this month. It will work with other companies and investors to support peacebuilding programmes in conflict environments.
From 2026, the Board plans to offer “transition coaching” to those who retire early on health grounds. It will also support the independent review of dignity and fairness in retirement, requested by the General Synod last year (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 am sorry for that. It does not signal any lack of intent. The Council is firmly committed to the review.” The aim is to complete an interim report in July and to bring a final report to the Synod in February 2027.
