Priests in the Catholic archdiocese of Dublin who have retired in the past 18 months are now entitled to the full contributory state pension of €11,600 a year.This eligibility of 14 retired priests, to date, for a state pension has saved the archdiocese paying them individually €11,600 a year.
Until now, the archdiocese had directly contributed the €11,600 to retired priests from Church funds, because they had not previously been covered by the state pension scheme.
Before 1988, clergy were not included in state pensions, but from that year, when it became obligatory for the self-employed to pay PRSI, priests were registered as self-employed and became responsible for their own tax returns.
This resulted in priests paying PRSI, and their entitlements have kicked in for those priests now retiring in 2008, at the age of 75, and for 14 elderly priests who retired over the past 12-18 months.
This change also means that retired clergy will not be out of pocket, because this sum being paid to them by the State from their entitlements is being topped up by the archdiocese.
This book-keeping exercise means that retired priests will retain their overall average income of €30,000 per annum, while the archdiocese is now contributing €18,400 instead of €30,000.
The new actuarial arrangements were explained by the archdiocese's financial managers to elderly clergy last month in Clonliffe College.
Satisfied
Last night, a spokesperson for the archdiocese said that retired priests and priests still active in parish ministry are satisfied with the new arrangements.
"Those priests at the meeting were in agreement and in support of this change, and were happy with the assurance given that if they had needs over and above the ordinary they would be supported.
"If the archdiocese had continued to operate the old system, retired priests would be richer in retirement than priests still working in parishes by €11,600, bringing them up to €41,400.
"It was generally agreed by the priests to close that anomaly by retaining equity in income for all priests," the spokesperson added.
"Everyone is still getting the same."
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(Source: II)