Do I read this correctly? Income of 12 billion dollars. Impressive, as is the level of benefit offered retirees, and the steadily improving amount of that benefit. The investment guys deserve congratulations. I will leave it to Episcopalians to comment on the reorganising dioceses issue.
However, my attention was also caught by the average age at ordination: 50. I was very surprised.
Terry, at first glance, I thought so too. But if you look at the top header for the column, it reads: Since inception (1917)
So the 12 billion is the total pension contributions plus the total investment return for a period of 93 years.
However, later in the report, it does show total assets in the current of over 8 billion. Kendall+ and his comrades can sleep comfortably in the knowledge that their pensions are safe. Well, as safe as anything can be in the KJS era.
One is left wondering how many priests ordained at an average age of 50 serve long enough to become fully vested in the pension. And, of course, there are the hundreds of “mutual ministry” priests they are ordaining (the local congregation of 37 has 4), who get neither pay nor pension. I was quite surprised to see the average TEC priest making $64 grand, and I suspect the average TEC priest was surprised by that as well. You can expect some contract negotiations in the future.
Yes, the TEC Pension Fund is the envy of all other denominations. The super wealthy NY financier and Episcopalian J. P. Morgan donated millions back in 1917 to get the Fund started, and it’s had lots of time to grow along with the stock and bond markets. It’s not unusual for priests who always served small, poor parishes to make more money in retirement than they ever did while working. The Pension Fund is so rich that for many years they’ve been giving all beneficiaries an extra 13th check at the end of the year (a bonus equal to the other 12 monthly checks). Eat your heart out, all ye who are stuck with drastically underfunded pensions!
But your point about the average age of ordination in TEC now running about 50 is an apt and signficant one. That’s a very unhealthy sign for any denomination. The last I knew, with over 7,000 active clergy, TEC had only about 300 under the age of 30. Not good.
Its worth taking a moment to appreciate not just J. P. Morgan’s contribution but that of William Lawrence (the then Bishop of Massachusetts) who campaigned tirelessly for the principle that an untroubled retirement after a lifetime of pastoral care should not be dependent on whether one had been fortunate enough to end one’s days in an affluent parish.
David+ correctly notes the generosity of the Fund, but one of the ironies at its inception was that it emphasized pensions proportionate to lifetime earnings, which, some argued, penalized those who had accepted missionary cures. Yet that, according to Lawrence, was the only way to convince the wealthier parishes that it was a sound scheme.
Finally let’s admit that it’s the younger ACNA clergy – who are minimally vested in the Fund – who took the greatest leap of faith in this regard in realigning. There’s no contemporary J. P. Morgan to underwrite a similar venture today and those in their twenties and thirties living without that security deserve our respect and recognition.
[url=http://catholicandreformed.blogspot.com]Catholic and Reformed[/url]
Thanks for adding some more valuable historical background. And you’re absolutely right about how it’s the younger clergy entering the ACNA who are taking the biggest financial risks and thus deserve lots of praise and support.
My thanks to above commentators and especially tjmcmahon for correcting my overhasty reading.
By way of comparison, I just thought that you might like to know that in canon law the age of retirement for Roman Catholic priests is 75. As a friend of mine says, ‘They don’t let us retire until the zimmer frame breaks’ (translation for Americans: until the walker breaks). Those who manage to stagger on long enough in the southern Catholic dioceses of England are guaranteed a pension of £8,400 on retirement, unless of course they have a military, health or prison service pension from chaplaincy service. All our civil servants/public service retirees have pensions of gold (the prime minister has said that this will change as the taxpayer cannot afford it). No, I’m not envious, really not … well, perhaps a little.
How long does one need to work to be vested? Can I get there starting at 50? Can I get ordained, donate my salary for ??? years to my local church (which they’ll pay back to me less a cut) then retire and collect a pension? Sounds like a better return than I’ll get anywhere else – and very secure
Jeremy, the pension is actually a grant from a charity set up by the clergy themselves about 150 years ago. It is means-tested. There is no pension fund as such.
I do wonder how married priests who were formally Church of England clergy will cope. I do not know, and admire their courage and the sacrifice made by their families. That said, they will continue to have some benefit from whatever they had paid into the Church Commissioners before swimming the Tiber.
Lay employees would until now have had to make their own pension arrangements; the state would also chip in something through tax relief; and as you know we have the state pension to fall back on. I believe that under new legislation the dioceses are now drawing up contributory pension plans for all, lay and clerical, but the accruing of benefits will of course take a long time.
Following up to Jeremy’s post, the growing reality in TEC is that of part-time and underemployed clergy, as fewer and fewer congregations are able to pay for a full-time priest. Unless you can work full-time for 20-25 years, you don’t get very much. The real question is when will the Pension Fund adjust to the new reality in TEC of providing for part-time and underemployed clergy, many of whom are women?
Do I read this correctly? Income of 12 billion dollars. Impressive, as is the level of benefit offered retirees, and the steadily improving amount of that benefit. The investment guys deserve congratulations. I will leave it to Episcopalians to comment on the reorganising dioceses issue.
However, my attention was also caught by the average age at ordination: 50. I was very surprised.
Terry, at first glance, I thought so too. But if you look at the top header for the column, it reads: Since inception (1917)
So the 12 billion is the total pension contributions plus the total investment return for a period of 93 years.
However, later in the report, it does show total assets in the current of over 8 billion. Kendall+ and his comrades can sleep comfortably in the knowledge that their pensions are safe. Well, as safe as anything can be in the KJS era.
One is left wondering how many priests ordained at an average age of 50 serve long enough to become fully vested in the pension. And, of course, there are the hundreds of “mutual ministry” priests they are ordaining (the local congregation of 37 has 4), who get neither pay nor pension. I was quite surprised to see the average TEC priest making $64 grand, and I suspect the average TEC priest was surprised by that as well. You can expect some contract negotiations in the future.
Fr. Tee (#1),
Yes, the TEC Pension Fund is the envy of all other denominations. The super wealthy NY financier and Episcopalian J. P. Morgan donated millions back in 1917 to get the Fund started, and it’s had lots of time to grow along with the stock and bond markets. It’s not unusual for priests who always served small, poor parishes to make more money in retirement than they ever did while working. The Pension Fund is so rich that for many years they’ve been giving all beneficiaries an extra 13th check at the end of the year (a bonus equal to the other 12 monthly checks). Eat your heart out, all ye who are stuck with drastically underfunded pensions!
But your point about the average age of ordination in TEC now running about 50 is an apt and signficant one. That’s a very unhealthy sign for any denomination. The last I knew, with over 7,000 active clergy, TEC had only about 300 under the age of 30. Not good.
And TJ, you’re right.
David Handy+
Its worth taking a moment to appreciate not just J. P. Morgan’s contribution but that of William Lawrence (the then Bishop of Massachusetts) who campaigned tirelessly for the principle that an untroubled retirement after a lifetime of pastoral care should not be dependent on whether one had been fortunate enough to end one’s days in an affluent parish.
David+ correctly notes the generosity of the Fund, but one of the ironies at its inception was that it emphasized pensions proportionate to lifetime earnings, which, some argued, penalized those who had accepted missionary cures. Yet that, according to Lawrence, was the only way to convince the wealthier parishes that it was a sound scheme.
Finally let’s admit that it’s the younger ACNA clergy – who are minimally vested in the Fund – who took the greatest leap of faith in this regard in realigning. There’s no contemporary J. P. Morgan to underwrite a similar venture today and those in their twenties and thirties living without that security deserve our respect and recognition.
[url=http://catholicandreformed.blogspot.com]Catholic and Reformed[/url]
I couldn’t find the line item for the anticipated return on lawsuits. Can anyone?
Jeremy (#4),
Thanks for adding some more valuable historical background. And you’re absolutely right about how it’s the younger clergy entering the ACNA who are taking the biggest financial risks and thus deserve lots of praise and support.
David Handy+
My thanks to above commentators and especially tjmcmahon for correcting my overhasty reading.
By way of comparison, I just thought that you might like to know that in canon law the age of retirement for Roman Catholic priests is 75. As a friend of mine says, ‘They don’t let us retire until the zimmer frame breaks’ (translation for Americans: until the walker breaks). Those who manage to stagger on long enough in the southern Catholic dioceses of England are guaranteed a pension of £8,400 on retirement, unless of course they have a military, health or prison service pension from chaplaincy service. All our civil servants/public service retirees have pensions of gold (the prime minister has said that this will change as the taxpayer cannot afford it). No, I’m not envious, really not … well, perhaps a little.
Terry+
As a matter of curiosity, what body – God willing – will actually pay you your pension, the diocese or someone else?
I presume, incidentally, that dioceses and parishes are obliged to treat their lay employees somewhat differently?
How long does one need to work to be vested? Can I get there starting at 50? Can I get ordained, donate my salary for ??? years to my local church (which they’ll pay back to me less a cut) then retire and collect a pension? Sounds like a better return than I’ll get anywhere else – and very secure
The last time I checked the average age of ordination had increased every year since the early 1900’s in TEC. It sounds like the trend is continuing.
Jeremy, the pension is actually a grant from a charity set up by the clergy themselves about 150 years ago. It is means-tested. There is no pension fund as such.
I do wonder how married priests who were formally Church of England clergy will cope. I do not know, and admire their courage and the sacrifice made by their families. That said, they will continue to have some benefit from whatever they had paid into the Church Commissioners before swimming the Tiber.
Lay employees would until now have had to make their own pension arrangements; the state would also chip in something through tax relief; and as you know we have the state pension to fall back on. I believe that under new legislation the dioceses are now drawing up contributory pension plans for all, lay and clerical, but the accruing of benefits will of course take a long time.
Following up to Jeremy’s post, the growing reality in TEC is that of part-time and underemployed clergy, as fewer and fewer congregations are able to pay for a full-time priest. Unless you can work full-time for 20-25 years, you don’t get very much. The real question is when will the Pension Fund adjust to the new reality in TEC of providing for part-time and underemployed clergy, many of whom are women?