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Northern Ireland
New scheme set to aid church mutual savers
Thousands of PMS members have been unable to retrieve their savings Presbyterian congregations are to be asked to make deferred voluntary contributions to a rescue package for its collapsed mutual society.
Following pressure to increase its contribution, the church agreed to back the voluntary scheme.
Congregations with large deposits in the PMS will be asked to defer part of their payments from the rescue scheme.
Earlier, a High Court judge authorised the church to donate £1m towards the Presbyterian Mutual Society package.
At a meeting of the church's general board in Belfast on Thursday, it was agreed to make the payment directly from central funds using what it described as "the only sizable cash reserve it has of an undesignated nature".
A church spokesman said the £1m payment would leave approximately £200,000 in the account to meet the possible tax implications of such a payment.
Increased amountA package of more than £200m has already been agreed, including contributions from the British government and the Stormont Executive.
The church said the voluntary contribution scheme would assist the administrator to pay an increased amount to small savers when the bail-out package has been finalised.
The expectation is that the administrator will be able to repay the deferred amount to those who agree to take part - if or when the society's property assets are sold off over the next seven to 10 years.
The success of the scheme will be tied to a long-term recovery in the property market.
In his High Court judgement, Mr Justice Deeny held there was a moral obligation on the church to honour its pledge to contribute to the government-established bail-out.
"Only members of the Presbyterian Church could be members of the Presbyterian Mutual Society," he said.
"It would be paradoxical if the general body of taxpayers funded all of the assistance without any contribution from the church."
The church had to apply to the court because its funds can only be used for charitable purposes.
The PMS crashed in November 2008, owing almost 10,000 investors money.
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Posted on: Thursday, March 10, 2011 11:14 PM
Author: BBC News - Home
Subject: Scheme set to aid church savers
| Presbyterian congregations are asked to make deferred voluntary contributions to a rescue package for its collapsed mutual society. |
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