Response to 'misconceived' article in Financial Times regarding the clergy pension scheme

An article in today’s Financial Times, headed ”˜Vicars’ pensions under threat as church is seduced by equities cult’, is misconceived and fails to take adequate account of the scheme’s relative age compared to other schemes, says Dr Jonathan Spencer, Chairman of the Church of England Pensions Board:

“The scheme concerned is responsible for paying pensions in respect of clergy service after 1 January 1998. The fact of the matter is that this scheme remains quite ”˜immature’ in pensions terms, with approximately £70m coming in each year to fund future pensions, and only around £12m going out. So the scheme’s main liabilities are some way in the future. With this in mind, we have acted at all times in accordance with mainstream actuarial and investment advice given by the Board’s professional advisors. This advice has consistently been that the Board should place the scheme’s investments in equities and equity type investments, which have historically produced the best returns.

Read it all.