The Church Pension Group will make the first change to the way it calculates benefits in more than 20 years, according to Dennis Sullivan, fund president. Speaking to the Consortium of Endowed Episcopal Parishes, which gathered at Virginia Theological Seminary Feb. 22-25, Mr. Sullivan said the rate of increase will average between 12-18 percent with clergy having a history of very low compensation receiving the largest percentage increase.

The decision is one of many the pension fund has made in response to its recent financial performance, according to Mr. Sullivan, who said benefits and reserves at the end of 2005 had reached $7.6 billion, an all-time high. Unlike most of the large pension funds in the United States where liabilities far exceed assets, the Church Pension Group possesses sizeable reserves.

The board recently decided to share its good fortune with beneficiaries, Mr. Sullivan said, because the fund “is not in the business of amassing assets just for the sake of amassing assets.” The changes include “meaningful enhancements” to benefits in Province 9 and overseas dioceses, a cost-of-living increase for the 27th year in a row, a Christmas benefit known as the 13th check, and a one-time supplement in January designed to offset higher energy costs.

The January check taught the staff two things about recipients, according to Mr. Sullivan. “One, our beneficiaries do not read their mail and, two that they are wonderful people.” Despite enclosing an announcement about the impending 14th check with benefit payments last fall, the Church Pension Group received numerous phone calls when the supplementary payment began arriving in mailboxes.

“Most of the people were calling to give the money back insisting that there had been a mistake,” Mr. Sullivan said.

Episcopal News Service contributed to this report.

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