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Diocesan Policies and Guidelines

M. Pensions, Healthcare and Insurance

M1  Pensions for the Clergy and Licensed Lay Workers

(a) The Church of England Funded Pensions Scheme

The Scheme for stipendiary clergy and licensed lay workers became Contributory with effect with effect from January 1998.  Pension rights earned by stipendiary service up to December 1997 are preserved, and the payments secured from the funds of the Church Commissioners.

(b) Pension Contributions

Contributions are payable in respect of all stipendiary service.  Although the Diocesan Board of Finance is legally responsible for paying contributions over to the Church of England Pensions Board, the duty of providing pension contributions for each stipendiary minister lies with the Chaplaincy Council.

  • The rate of contribution required for each year is related to the Church of England National Minimum Stipend.  The figure will be determined centrally each year and the information passed to stipendiary chaplains, and others entitled to pension provision, and their chaplaincy treasurers.
  • The Diocese secured a gradual phasing-in of these contributions over a period of five years.  The full payment is payable from January 2002.
  • The Finance Officer will supply details, on a quarterly basis, of the system for the collection of contributions from chaplaincy councils.

(c) Pensions for Diocesan Officers

The Diocesan Board of Finance is responsible for the pension contributions of those in its employment, and has resolved to pay any additional contributions required in respect of chaplains who also hold a diocesan appointment, including the Dean and archdeacons.

M2  Private Health Cover

Each stipendiary chaplain and licensed lay worker, together with his or her spouse and dependent children, must be adequately covered by medical insurance at the expense of the chaplaincy church council.

M3 National Insurance Contributions

(a) To preserve their entitlement to a state pension in UK, chaplains who have already been contributors to UK National Insurance need to maintain Class III National Insurance contributions.

(b) Class III contributions ensure pension rights but not payment of sickness benefit in UK.  Entitlement to sickness benefit, in the event of inability to work on returning to UK, can be maintained by paying Class II contributions.

(c) The payment of Class II contributions is strongly recommended, whether or not there is reciprocal agreement with the particular country.

(d) Those accepting appointments in the Diocese are strongly urged to seek advice and information from —

NI Contributions Office, International Services,

Room BP1302, Longbenton,

Newcastle-upon-Tyne, NE98 1YX

(Telephone from overseas: 44 191 2254811)

(e) A booklet Social Security Abroad ref. NI 38 is provided to all new chaplains, and completion of the accompanying form CF83 is advised before leaving the UK.  There is helpful information on the Inland Revenue web site,

M4 Accident Insurance

The Diocesan Office arranges accident insurance that covers all licensed ministers serving in the Diocese, both the clergy and lay workers.

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