(a) When did the Diocese cease to pay a third of a clergyman's superannuation contribution and parochial units begin to pay not one third but the total sum?

(b) What were the reasons for this change - Biblical, theological and economic?

(c) Were parochial units clearly informed at the time both of the fact of this change and of at least the general reasons for it?

(d) On what grounds is the parochial payment of the full superannuation contribution or indeed any part of a superannuation contribution required during an inter-regnum if the strict principle of cost recovery is adhered to?

(e) Is the present full superannuation contribution considered to be sufficient for those younger clergymen who will have to purchase a house on retirement and who hope to live in Sydney upon retirement, and if not, can this matter be addressed by those who have some responsibility for the welfare of the clergy?

To which the President replied -

I am advised the answers are as follows -

(a) In the years up to 1992 the contributions for a minister for superannuation totalled 15% of the minimum stipend. Of that 15% contribution, the minister paid 5%, the parish paid 5% and the remaining 5% was paid from diocesan funds.

From 1992 new salary sacrifice arrangements were agreed by which the parishes took responsibility for paying the superannuation contributions previously paid by the minister. From 1992, effectively 10% was paid by the parish and the remaining of 5% was paid from Synod resources. Parishes were invoiced monthly.

In 1995 a new parish assessments system was agreed by the Synod. Under the new system, the minimum assessment was substantially increased compared to that which had applied in previous years. The philosophy of the increase in minimum assessment was that parishes should henceforth pay the full cost for superannuation.

Thus, from 1995 parishes paid the full charge for superannuation through the assessment system by way of cost recoveries charge.

(b) The arguments for the payment by parishes of a cost recoveries charge have been well rehearsed and, in particular, were the subject of extensive debate at last year's session of the Synod. Members are referred to the report on the review of Parish Ministry and Property Costs Recovery Formula published on pages 495 to 511 of the 2000 Year Book.

(c) The adoption of a cost recoveries system was approved by the Synod when it passed the Diocesan Income and Expenditure Ordinance in 1994. That system has been the subject of discussion in subsequent years. Information about the Synod's decisions about a cost recoveries charge has been communicated to parishes.

(d) The principle of cost recovery is adhered to by recovering the total costs incurred by the Diocese on behalf of parishes from the total amount paid by parishes as a whole. The alternative approach would be to make a minute examination of the costs incurred by each parish individually which could only be achieved at substantial cost to the diocese and each parish. Instead the Synod has accepted the approach most recently in the Parochial Cost Recoveries Ordinance 1999 of a formula which combines -

(i) an easily calculated and understood parochial charges;

(ii) assistance to parishes who could have been disadvantaged by the change from an earlier method of calculation;

(iii) avoidance of large charges which could arise from insurance of heritage buildings for example;

(iv) ease of administration,

with justice and equity to all parishes.

One of the compromises in such a system is that no attempt is made to exactly determine what change in the costs of a minister occur during a vacancy.

There are several other compromises made.

(e) There is no proposal at this stage to review the rate of superannuation contributions for clergy, and so it might be inferred that the current rate is considered to be appropriate. Superannuation is only one way to ensure that clergy have adequate housing for retirement. Some alternatives are addressed in a report appearing on pages 94 to 96 of the Standing Committee's report to the Synod. Note the final paragraph of that report -

"Difficulties associated with retirement housing are better addressed by emphasising to ministers the need to plan for their retirement many years in advance. Financial planning seminars for ministers organised by the Sydney Diocesan Superannuation Fund have been held in the Diocese, and will continue to be held from time to time (the next series of seminars will be held in October 2000). These seminars seek to advise ministers about the need for financial planning and the practical steps which they can take to provide for their retirement. The seminars are advertised widely.".