Stipends, Pensions & Expenses Guidelines. Information for all stipendiary clergy in the Diocese of Southwell & Nottingham
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1 Appendix H Stipends, Pensions & Expenses Guidelines Information for all stipendiary clergy in the Diocese of Southwell & Nottingham A. Stipend for Incumbents, Priests-in-Charge and Team Vicars The Archbishops Council, as the Central Stipends Authority (CSA), sets annually a national stipend benchmark, and adjusts for regional variations in the cost of living. The stipend for 2013/2014 will be increased to 23,490 with effect from 1 st April In addition council tax and water charges on houses owned by the DBF or PCC and occupied by stipendiary clergy are payable by the Diocesan Board of Finance. B. Return of Income (PSA PUN/PUB) We continue the practice of instruction to the Church Commissioners to deal with these forms on our behalf. This is simply an administration exercise and we still have control on stipend matters. However, since we have adopted the new way of increasing stipends by bulk load (automatically receiving your increase in stipend each April without the form), we are also looking at ways of reducing our administration and working better with the Church Commissioners. Each year all stipendiary clergy will be sent a copy for completion and return direct to the Clergy Payments Department in London. Please make sure you send in your return or your tax free allowances will be reduced to zero if you do not. Some clergy choose to seek advice from a tax adviser to assist with the completion of this form. Definition of Income Guaranteed Annuities and Personal Grants Parochial giving direct for stipend (including contributions towards heating, lighting & cleaning the parsonage house) Easter Offering (including Whitsun Offering where appropriate) Fees (both parochial and non-parochial) *Net income from public and educational appointments *i.e. after allowing such expenses properly incurred in earning the income as may be agreed by the clergyman or woman and his or her diocese Income from local trusts *Net income from chaplaincies
2 The Diocese will take into account any chaplaincy income that is declared when calculating your annual stipend, income should be net of expenses from chaplaincy. Please send an estimate of any income you may be due to receive to the Finance Office in order that we can adjust your stipend accordingly. Please Note: This is not an additional payment to your stipend [General Synod 1975]. The computation of income for augmentation purposes will not include:- Spare-time earnings, Spouses earnings, and Private income The computation of income for augmentation purposes does not take into account payments for, or made in reimbursement of approved working expenses. Surrogate fees and marriage certificate fees: These should be included as assigned fee income (and accounted to the Board of Finance as such on quarterly fees returns) and not included separately under surrogate fees in box 350 on the clergy annual return (PUN) form. PCCs should not contribute directly to stipends, costs of heating, lighting or cleaning of parsonages, as in both cases such payments are classified as contributions to stipend and would have to be taken into account in the calculation of the minimum stipend. In respect of heating, lighting and cleaning, these costs are treated as a first charge on stipend augmentation grants and paid tax free. PCCs are strongly urged to direct all local payments towards FULL reimbursement of Parochial working Expenses. (See section C). C. Parochial Working Expenses PCCs should note that the contribution towards parochial expenses should not be made by round sum allowances. The Board of Finance emphasises the need to use an authorised claim form (copies can be obtained from the Church of England website), in order to satisfy Inland Revenue requirements. However, there should be a frank discussion between clergy and PCC about the level of reimbursement that is reasonable PCCs should provide stationery, equipment etc as a parochial expense and not reimburse the Minister for these items. Further details can be obtained in the publication The Parochial expenses of the clergy available to download on the Church of England website. Travel will be one of the highest cost factors in parochial working expenses and most Ministers will use a car to carry out parochial duties at some time during each day/week. The relevant mileage rates can be downloaded from the Church of England website or HMRC website. These figures represent the maximum amount that can be paid for work-related mileage in your own vehicle without any tax being incurred. 1
3 D. The Diocesan Synod in this diocese agreed to pay, from 1 st April 2006 the National Minimum Stipend for all Assistant Curates, Parish Deacons and Licensed Layworkers (including Church Army Captains and Sisters engaged in Parochial Ministry 2013/ ,340 Council tax and water charges on houses occupied by curates are payable by the Southwell & Nottingham Diocesan Board of Finance. Related Conditions Definition of Income - As for beneficed clergy. Accommodation - To be free of rent, rates, repairs, or an appropriate allowance paid. Approved Parochial Working Expenses - To be fully reimbursed. E. Housing Allowances A cash housing allowance is payable by the Board to stipendiary clergy of incumbent status required to live in their own house. A credit of 8,400 for 2013 for Parochial Church Councils (PCCs) housing stipendiary assistant clergy in a PCC owned property is also allocated against parish share in December. Please note this is not paid in cash direct to the PCC. F. Removal and Resettlement and First Appointment Grants Full cost of removals (the van) to include packing: (3 estimates to be provided to the Property Department at Dunham House before authorisation). Resettlement Grant (cost of carpets, curtains, etc.): Those of Incumbent status 2,230 Assistant Curates, Parish Deacons, Licensed Lay workers 2,230 First appointment grant : Those of Incumbent status 2,230 Assistant Curates, Parish Deacons, Licensed Lay workers 2,230 NOTE * The payment of a first appointment grant relates to: a) First appointment as a full-time stipendiary post as an assistant curate or licensed lay worker in a parish for the first time, and b) a first incumbency post or similar (Priest-in-Charge; Team Vicar; Sector Minister) It will be appreciated that first denotes one payment under each section. 2
4 G. National Car Loan Scheme (Church Commissioners) A national scheme of car loans exists for all serving clergy, deaconesses and licensed lay workers and is offered through the Church Commissioners. Further details and Application Forms are available from the Church Commissioners web site at H. Pensions (1 st April 2013) The rules of the Church of England Funded Pension Scheme (CEFPS) and the regulations governing the operation of the arrangements relating to service up to 31 December 1997 set out the benefits payable when a member retires or dies. Benefits are based on the National Minimum Stipend (NMS) in the previous year. Changes to the rules of CEPBS from 1 January 2011 will affect maximum benefits in many cases. For members who are able to complete the maximum reckonable service (full service) before their scheme retirement age, the position is as follows: 1. Members who have completed full service before 1 January 2011 will be entitled to a maximum pension of 2/3rds of NMS. 2. Members who join on or after 1 January 2011 and complete full service will be entitled to a maximum pension of ½ of NMS. 3. All other members will receive a maximum pension of somewhere between ½ and 2/3rds of NMS dependent on the proportion of service completed before and after 1 January The following table summarises the maximum benefits payable at scheme retirement ages to members in the first 2 categories (outlined above) from 1 April April 2013 (1/2 NMS) April 2013 (2/3rds NMS) April 2012 (1/2 NMS) April 2012 (2/3rds NMS) Pension: Basic 10,950 14,600 10,685 14,247 Suffragan bishops, deans, provosts & archdeacons 13,688 18,250 13,356 17,809 Diocesan bishops 16,425 21,900 16,028 21,371 Bishop of London 19,710 26,280 19,233 25,645 Archbishops 21,900 29,200 21,370 28,494 Retirement lump sum 32,850 43,800 32,055 42,741 The pension payable to a surviving spouse or civil partner on death in service is two-thirds of the pension that would have been paid to the member if he or she had retired on the basis of ill-health at the date of death. Pensions are also payable to dependent children. The lump sum payable on death in full-time pensionable service will be 65,700 from 1 April 2013 ( ,110). 3
5 Pensions in Payment Increases to pensions in payment are linked to the increase in the Retail Prices Index to the preceding September, subject to a maximum of 5% in respect of benefits earned prior to January 2008 and a maximum of 3.5% in respect of benefits earned from January 2008 onwards. Pensions in payment on 1 April 2013 will be increased as follows: Pension in respect of service prior to 1 January % Pension in respect of service from 1 January % The pension payable to a surviving spouse or civil partner on death in retirement is two-thirds of the member s pension at the date of death. If the member chose to exchange pension for tax-free cash at retirement, a dependent s pension is based on the amount the member s pension would have been had that option not been exercised. Augmentation Grants It has been agreed that the minimum income standard for a spouse or civil partner following the death of a member should be raised from 13,450 a year to 13,750 a year (net of tax) with effect from 1 April Eligibility for a grant will continue to be determined by the dependent s income from all sources. Capital resources are also usually taken into account and no grant will be made if these exceed 16,000. Contributions The revised annual contribution with effect from 1 January 2013 will be at the annual equivalent rate of 8,365, reflecting the CEP Board s decision to set the contribution rate at 38.2% of the previous year s NMS. A proportionate rate will be payable for those in a part-time appointment. Contributions will be proportionately greater where a member is entitled to benefits at a higher level. Any questions about pensions should be directed to: The Church of England Pensions Board, 29 Great Smith Street, London, SW1P 3PS Tel: or pensions@churchofengland.org If you have any specific queries regarding your stipend your diocesan contact with the Clergy Payments Department is Mr David Meredith on: Tel: or finance@southwell.anglican.org. The Clergy Payments Department in London can be contacted on Tel: or clergy.payments@churchofengland.org Information can also be found on the Church of England Website on the following areas: When you are sick, advice on maternity leave & pay, paternity leave & pay, adoption leave & pay and special parental leave. Please note that all of these will require advance notice within a specified timescale you should therefore consult your incumbent or diocesan office if you need assistance. 4
6 Please note: Any changes in your personal details should be notified to the diocesan office as soon as possible, such as bank details. We will automatically notify the relevant contacts when you change appointment so there is no need for you to do this. This will also include communicating with the Church Commissioners. Circulation: To: All stipendiary clergy, Area Deans, parish deacons, licensed lay workers and churchwardens of vacant parishes. Copies for information to: The Bishop of Southwell & Nottingham, Bishop of Sherwood, The Dean, Archdeacons, Deanery Synod Lay Chairs & Treasurers, Deanery Administrators and PCC Treasurers. Issued by the Finance Office Dunham House, 8 Westgate, Southwell, Notts NG25 0JL Updated March
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