Church of England clergy are set to receive significant increases to pensions as General Synod has approved proposals to restore accrual to pre-2011 levels. A further review of the retirement package was also agreed, with an initial report due in 2026.

The vote by Church representatives earlier this month means clergy pensions will have a target rate of two-thirds of the national minimum stipend, rather than one half. The accrual rate had been cut in the aftermath of the global financial crisis, when pensions were also based on the stiped of the previous, rather than the current, year. This too will be reversed, “providing a boost to starting pensions”, the Church said.

Meanwhile, a ‘service cap’ will be removed, so that every day of service counts towards pension instead of tranches of service reaching specified.

Pensioners who have some post-2011 service will receive a special increase to the pension in payment in respect of post-2011 service. The Church has committed to making these changes retrospective but said there is “more detail to work through as to how this can be best achieved”.

The changes are made as the non-contributory scheme now has a healthy funding level. The Pensions Board will lead on the implementation of the changes, drafting new scheme rules to be agreed by Synod at its February meeting. The changes are likely to be implemented in stages from April 2026, and it could take up to April 2027 for all changes to be applied to members’ pensions.

Along with these increases, Synod also agreed to a further review of the retirement package, voting in favour of a private member’s motion. An initial report is due next year. However, Synod reportedly rejected a proposal to use 1% of the Church Commissioners’ wealth each year to improve national minimum stipends, which would have further boosted future pension incomes.

The process for pension benefit improvements was kickstarted in February 2024, when Synod agreed to a review of stipends and pensions.

“As part of the review, the Pensions Board and Archbishops’ Council listened to the Clergy Pension Action Group, which helped shape the final proposals to Synod,” according to the Church.

The review took place in parallel with the scheme's triennial valuation as at 31 December 2024, so that the benefit changes could be costed, with a draft completed in May. The valuation will be finalised later this year.

Pensions Board chair Clive Mather previously said the circumstances are now more favourable than they have been over the last 15 years but pointed to ongoing market volatility and financial pressures on employers in the Church.

“We are approaching such an opportunity gladly but with appropriate caution,” he said.

The funded scheme provides pensions for service accrued from January 1998 onwards. The Church of England Pensions Measures scheme covers service before 1 January 1998 from the Church’s endowment and is the responsibility of the Church Commissioners, though the Church’s Pensions Board administers this scheme.