Reformátusok Lapja, 1969 (69. évfolyam, 1-12. szám)
1969-11-01 / 11. szám
12 REFORMÁTUSOK LAPJA CAN YOUR PASTOR LIVE ON HI$ SALARY? United Church Herald, 1969 by the Division of Publication of the United Church Board for Homeland Ministries. Used by permission. As local churches begin the preparation of 1970 budgets, it is important that careful consideration be given to the minister’s salary. Over the years General Synod has urged congregations to review their pastors’ salaries yearly. Delegates to the recent Synod in Boston “called upon the local church to have a sensitive annual review by a representative small committee of the minister’s total compensation so that our professional ministry is undergirded by more adequate support.” Many of the conferences have taken these General Synod recommendations very seriously. In recent years nearly all of the 40 conferences have completed analyses of salaries and have provided recommendations to local committees. One guideline which has been widely adopted by the conferences is the so-called suggested minimum salary. Twenty-nine conferences have reported to the HERALD suggested minimum figures ranging from $5,500 to $7,500. These “minimums” represent the cash salary only. Although these minimum salary recommendations are credited with raising general compensation levels, they tend to emphasize the needs of younger ministers rather than pastors with 10 to 15 years of service. Churches are therefore cautioned to consider the recommendations as rock bottom figures. Several conferences have joined other denominations in pressing for a regular “cost of living” adjustment similar to those adopted by many industrial and commercial firms. These conferences point to the Bureau of Labor Statistics report that the cost of living has jumped 5.4 percent since April 1968—the largest 12-month increase in 17 years. Many ministers, whose salaries are not reviewed annually, desperately need a cost of living raise. Another factor which has seriously affected some ministers is the unique application of Social Security laws. Laymen often do not recognize that an ordained minister must pay his entire Social Security tax. Take, for example, a clergyman earning $7,500 a year. In 1968 he paid 6.4 percent of his salary: $480. (The typical business employee, earning the same salary, would have 4.4 percent of his salary, or $330, deducted from his pay checks. The employer would add an equal amount to the employee’s Social Security account.) Tn 1969 the Social Security rate for ministers goes up to 6.9 percent. Coming at a time when living costs are climbing, the new tax bite will mean that many ministers will in effect suffer a pay reduction. The so-called “fringe benefits” (housing and allowances, car expense, insurance, pension and the like) are another area which ought to be considered in any regular salary review. While some congregations offer a housing allowance in lieu of a parsonage, the numbers are not yet significant. Most congregations, according to a survey conducted for this issue of the HERALD, provide a parsonage and utilities as part of the minister’s income. Churches which offer a housing allowance in lieu of a parsonage need to recognize that the amount of the allowance should be reviewed with the salary because of increasing taxes and maintenance costs. Most congregations today understand that the operation of an automobile is part of the cost of ministerial services. Various studies indicate that the typical pastor drives up to 10,000 miles every year on church business. Travel allowances offered to UCC ministers range from zero to $2,600. The average is $575. According to a National Council of Churches study conducted in 1964, ministers invested an average of $600 of their own money in church- related travel. Statistics quoted in June 1969 from the American Automobile Association indicate that the cost of operating a standard four-door sedan for 10,000 miles is 14.5 cents a mile. Logically the pastor’s car expenses should be charged against the church’s operating budget rather than be included in the salary check. It is assumed by every conference that United Church of Christ clergy are participants in the annuity programs of the denomination. The congregation should be paying 11 percent of the “salary basis” directly to the Pension Boards of the United Church of Christ. “Salary basis” means the total compensation including the housing allowance. If a parsonage is provided, the “salary basis” for the purpose of the Pension Boards is computed at 120 percent of the cash salary. The Pension Boards offer several retirement benefit options. Information can be secured from the Pension Boards, 297 Park Ave. S., New York, N. Y. 10010. The Pension Boards also provide two group insurance programs under which an increasing number of UCC ministers are covered. Protection for both the minister and the church is provided tl rough the Ministers’ Group Health Insurance (MGHIP) with its major medical coverage for the pastor and his family. More than 4,000 ministers and their families now have MGHIP coverage. A relatively new program is the Family Protection Plan (FPP) of life and long-term disability income insurance. UCC ministers in 26 conferences are now protected under FPP. Supplementing the retirement and health plans offered by the Pension Boards, the new plan includes the following kinds of protection at modest cost: 1. Life insurance for the minister and spouse; 2. Income insurance for the minister who becomes disabled; 3. Continued dues payment to the annuity program of the disabled clergyman. It is recommended that local churches pay the full premium for FPP, one percent of salary basis. There is a growing trend of providing the minister with a stated period for a study or sabbatical leave. A number of the conferences have developed well- defined programs for these study leaves. After two or three years of service, a period of two or three months is made available during which the minister is relieved of parish responsibilities so that continuing education is possible. Congregations are providing for their pastor’s study leave in a variety of ways. By setting aside a modest sum of money each year, some local churches are helping to make this “fringe benefit” available. Those congregations recognize that much of the benefit is returned to them as their spiritual leader becomes better prepared and “updated” for a relevant ministry. This vital, though relatively new, consideration needs to become part of the annual salary review. The United Church of Christ is cooperating with a number of other Protestant denominations on an in-depth analysis of clergy compensation. The report of the National Council of Churches research will appear in the HERALD, probably in November, and in a booklet to be called “A fair salary for your minister.” making a pledge a.analyze your present giving in relation to your income and spending habits b.bear in mind that it will cost your church four doll ars to accomplish what three dollars did a few years ago c.consider general synods recommendation that each member give five percent of his income for the work of the church d.decide on the best pledge you can make, and then let your church know what to expect from you. stewardship council united church of Christ
