::2008 Compensation Committee Report
2008 COMPENSATION COMMITTEE REPORT
As approved by 2008 National Conference, May 30, 2008- updates in italics & underlined
By the acceptance and approval of the Pastoral Compensation Report by the duly elected and voting lay delegates and pastors of the National Conference, the items within this report become mandates for the local churches to enact as they are approved by the National Conference.
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Each year the Social Security Administration uses the Cost of Living Adjustment (COLA) percentage to set the annual Social Security recipient’s increase. The Compensation Committee uses the COLA as its basis for salary increase, but we are always one year behind the Social Security increase. Based upon the Social Security Administration's Cost of Living Adjustment (COLA) rate established for 2008, the salary increase for all full-time pastors shall be 2.3% increase for 2009. National Conference approved the
2.3% salary increase for 2009.
National Conference approved the following three paragraphs:
Churches are strongly encouraged to consider an additional increase as a merit raise in salary for each pastor. This merit raise would be in addition to the approved percentage salary increase.
Knowing the need to work within a budget and other concerns that a church may have, churches that plan to grant less than the 2.3% increase as approved in this report, must receive the approval of their Conference Minister prior to any official action is taken to set the pastor's salary for the up-coming year.
Churches served by a part-time pastor are encouraged, but not required, to give their pastor an annual salary increase.
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The Compensation Committee recommendsNational Conference approves the following definition of cash salary. This definition is the one that has been in use but not in print. Cash Salary is defined as the base compensation amount before adjusted for the housing allowance, social security, pension contribution or any other additional benefit or deduction to salary.
We ask that this definition be placed in the National Conference Rules Section 1002.
3. Cash salary minimums for full-time Pastoral classifications for 2009. We recommend National Conference approved the following, which reflect this year’s salary increase:
Licentiates $30,030
Deacon/Licentiate II $32,038
Elder $32,444
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National Conference Administrator’s Cash Salaries for 2009.
We recommendNational Conference approved the following, which reflect this year’s salary increase:
Bishop $65,596.
Director of Global Ministries $57,039
Conference Ministers $57,039.
5. We recommend National Conference approved a base housing amount of $12,400 be paid in addition to cash salary to the National Conference Administrators. This figure will be reviewed every three years by securing evaluations from three local realtors in the Myerstown PA area. These evaluations are to include the average fair rental value of housing in this community, plus furnishings and utilities. To determine individual housing allowance, each National Conference administrator is to secure evaluations from three local realtors in the area where they live and submit them to the Benefits-Compensation Administrator, who shall be responsible to complete the Compensation Forms and to prepare the necessary resolutions for approval by the National Ministry Team.
6. We recommend National Conference approved that the National Ministry Team approve all necessary resolutions, including housing allowance, travel and expense reimbursement and/or Flexible Spending Account, if applicable, for each National Conference Administrator at the fall meeting of the NMT. We refer this to the National Conference Rules to be included in the NC Rules under Section 500 – National Ministry Team.
7. National Conference approved The parsonage furnishings allowance for the Great Lakes Conference Minister is be set at $6000.
8. As approved by the 2007 National Conference in Compensation’s 2007 report, each church that provides a housing allowance is to secure property evaluations from three local realtors in their area. These evaluations are to include the average fair rental value of housing in this community, plus furnishings and utilities for housing suitable to the size of the pastors’ family. Then take the average of the three to determine a fair and equitable housing allowance for their pastor in their locale. These figures are to be reviewed and updated every three years.
In determining the housing allowance, the IRS states that the housing exclusion amount from income tax is the least of the following: actual expenses incurred; the fair rental value of home, including furnishings and utilities; or the housing allowance. The IRS does not set an actual maximum for the housing allowance figure, but if either the actual expenses or the fair rental value figure is lower than the housing allowance, then the lowest figure is the only amount that can be used by the pastor as his housing allowance exclusion on his tax return. Failure to comply with the 2002 Clergy Housing Clarification Act could result in fines and penalties, possibly on both the pastor and the church and could have effect on the denomination, as well. We strongly encourage the churches and pastors to comply with these IRS regulations. The Benefits-Compensation Administrator is available for consultation and questions.
9. As approved by the 2007 National Conference in Compensation’s 2007 report, each church that provides a parsonage is to secure property evaluations from three local realtors in the area to determine the fair rental value of the parsonage for housing suitable for the pastor’s family. Then take the average of the three to determine a fair and equitable rental value of the parsonage in this locale. These figures must be reviewed and updated every three years.
An equitable, fair rental value of the parsonage in the community where the home is located is necessary, not only because it is
should reflect the true rental value if the home was actually rented out, but this figure is also used as part of the calculation should the pastor become disabled or have a worker’s compensation situation and is included in the computation of the pastor’s self employed Social Security tax (SECA). The Benefits-Compensation Administrator is available for consultation and questions.
10. Continuing Education Allowance – we recommend National Conference approved the following:
For the Bishop, Director of Global Ministries, and Conference Ministers: $1200
For all pastors, full-time or part-time: $750
11. Stationing Elders’ Remuneration: We recommend National Conference approved $14.50 per hour plus expenses including standard
12 Honorariums for National Conference Positions: we recommend National Conference approved the following for 2009 National Conference.
All Honorariums will be reviewed every five years.
National Conference Secretary $500
National Conference Assistant Secretaries $125 each.
National Conference Services Coordinator $500 plus travel expenses at IRS Standard mileage rate
13. Church Contribution to their Pastor’s 403(b) Pension Account: We recommend National Conference approved a monthly contribution of $140 (full-time pastors) and $70 (part-time pastors), effective January, 2009.
14. Pulpit Supply Honorarium-- We make the following suggested guideline for churches:
$100 for the 1st message/sermon and $50 for each additional service, such as Sunday School or multiple worship services, plus travel reimbursement of $7.50 if traveling 10 miles or less and standard IRS mileage rate if traveling over 10 miles; and Airfare/ground transportation, if applicable; plus hotel accommodations, if necessary
15. For information: If either a pastor is released from his assigned pastoral position by the National Conference Supervisory Committee or if the pastor resigns his assigned pastoral position of his own volition before the end of the assignment year, effective immediately upon the date of departure of said pastor, the terms of the Statement for Pastor’s Salary, as had been approved for that pastor, are considered null and void. (National Conference Rule 1002.12)
16. For information: Moving Expense Reimbursement
908.2 Churches shall be granted a moving subsidy as established by National Conference. The subsidy will be given based on the distance of the move. The following shall be used as the schedule for moving expense given based on the distance of the move. The following shall be used as the schedule for moving expense reimbursement: for intra-state (within the state) moves from 0-40 miles, the following allowance will be up to $2500.00; for intra-state moves from 41-200 miles the allowance will be up to $3000.00; for intra-state moves from 201-350 miles, the allowance will be up to $4500.00; and for inter-state (between states) moves, the allowance will be up to $7500.00. If the amount exceeds the National Conference subsidy, the receiving church will be responsible for the remaining balance. Pastors receiving a new assignment shall move within 12 months of the effective date of that assignment. Any move beyond the 12 month period at that assignment shall be at the pastor’s own expense. The moving schedule for retiring pastors shall be the same as stated in this rule. Retired pastors who are assigned a church, without a break in service with the
17. For information: The 2009 Pastor Salary Forms will be available on the Evangelical Congregational Church website www.eccenter.com by September 1.
18. For information: Base Compensation and Parsonage requirements
1002. Base Compensation Definition. Items which each charge is to provide as base compensation are: in addition to cash salary: one half the actual Social Security payment; medical premiums for the pastor and family; first $500 of deductible health care expenses (see 1002.7); disability coverage; travel reimbursement for pastoral care at the standard
1002.a. Parsonage Requirements. For churches providing a parsonage, the following items are included in the pastor’s compensation/benefit package: utilities including electric, gas/oil, water/sewer, and base telephone; a cooking range and refrigerator; living room carpeting and drapes; smoke detectors and a fire escape ladder. A committee made up of a Steward or member of the Finance Committee or member of the group responsible for setting the pastor’s compensation package and a Trustee and the Lay Delegate shall annually conduct a walk-thru of the parsonage at the time that the pastor’s salary is set. This group shall complete the Annual Church-Owned Parsonage Review Form and provide signed copies to the Pastor, Conference Minister and place a copy in the official minutes of the church. The walk through committee shall provide a synopsis of the Parsonage Review Form, including the list of immediate needs and priorities, to the congregation at the annual congregational meeting. This form will be reviewed by the Compensation Committee and made available for distribution with the Pastor’s Salary Forms as listed in NC Rule 1002.
19. For information: We continue to suggest that each church providing a parsonage, support a Housing Equity Program that would be established by the pastor to allow him to accrue monies toward the purchase of a home upon either an eventual assignment to a church where no housing is provided, or upon retirement. The pastor would own this account. The Lay Delegate from the church should present this proposal annually to their Board or Ministry Council for consideration either to support the establishment of the account or to continue to make contributions to an already existing account. The Conference Ministers will be available for consultation with churches interested in supporting their pastor in his establishment of such an account. The Benefits Corporation will administer these accounts.
20. For information: Full-time and part-time pastors shall be granted vacation based on NC Rule 1002.10
Vacation Schedule:
0-9 years of service 3 weeks
10-19 years of service 4 weeks
20-29 years of service 5 weeks
30+ years of service At least 5 weeks
21. For information: Based on NC Rule 1002.11 all pastors shall annually be granted a minimum of one week of “Ministry Leave” for the purpose of personal spiritual development, study, service, or global experience. This leave requires prior scheduling approved by the local church Board or Ministry Council and accountability to that body.
22. For information: We expect our pastors to avail themselves to one day off per week. This is in order to exemplify wise stewardship of life to avoid burnout and to obey the biblical injunction of Sabbath.
23. For information: We would like to make pastors aware of Discount Dental Plans. These plans allow you to save 10-60% off of most dental procedures. For more information call 1-800-632-5353 or visit website www.dentalplans.com or call 1-877-698-4825 or visit website www.vitalsavings.com (This is the
24. For information: Any mistakes found on Salary forms are to be brought to attention of the Compensation/Benefits Coordinator.
New forms for 2009 will be made available by September.
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