From Mr Martin A. Henwood
Sir, - Your long report on the Pensions Board's being accused
of immoral loans to its pensioners (News, 4
April) is a classic example of how not to deal with a
complaint.
The shared-equity loan interest paid by on the property by the
good cleric has been at an interest rate of less than three per
cent above base rate over the period. If the profit available on
the property is taken into account, the loan has been made at less
than base rate over the period: interest cost £34,000. That's a
fantastic deal, and it's good to see the Church being fair and
looking after its pensioners.
The "profit" attributed to the Pensions Boardis about 5.5 per
cent above base rate across the period, which is low, given the
risk involved, and achieved only because of a long-term commitment
and a booming property market at present. That return will, no
doubt, go down when the current bubble bursts, but the long-term
commitment will not.
The Pensions Commissioners may want to find out, however, why
reasonable questions were not answered, and what the
administrators' approach is to risk-management, as there is an
evident weakness when it comes to reputational risk-assessment.
MARTIN A. HENWOOD
24 High Street
Bidford on Avon
Alcester B50 4BU
