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PRESBYTERY OF THE TWIN CITIES AREA

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					                          PRESBYTERY OF THE TWIN CITIES AREA
                               COMMITTEE ON MINISTRY

                      GUIDELINES ON SALARY COMPENSATION FOR
             MINISTERS OF WORD AND SACRAMENT SERVING CONGREGATIONS


The plan for salary compensation for ministers establishes minimum amounts for
salaries, housing and utilities. It is based on the principle of providing salary ranges that
are fair to both ministers and congregations and is designed to allow each pastor a
standard living generally comparable to that of the members of that minister’s church.
Minimum salaries are adjusted annually to reflect cost of living increase taken from
Bureau of Labor Statistics data. They do not include increases for outstanding
achievement or performance.
Housing allowance is part of the total compensation package and should be calculated
as the fair market rental value of the house, furnished, plus utilities. This rule should be
followed with or without a manse. Housing allowance must be recorded in session
minutes in advance of making such payments.
Effective salary is defined by the Board of Pensions as follows:
   “any compensation received during a year by a Board of Pensions Plan Member
   from an employing organization, including but not limited to any sums paid for
   housing (including utilities and furnishings). Effective salary also includes any
   deferred compensation (funded or unfunded) credited to a Member by an employing
   organization during a Plan year. Effective Salary does not include amounts received
   for reimbursement of professional expenses through an accountable reimbursement
   plan or social security amounts up to fifty percent (50%) of a minister’s Self
   Employment Contribution Act obligations. For minister Members only, the housing
   allowance is calculated as follows: if a Manse is provided, the amount shall be at
   least thirty percent (30%) of all other compensation described above; if no Manse is
   provided, the amount shall be the actual housing allowance.”

A sound compensation plan for pastors begins with a job description which clearly
outlines the job requirements and includes a method for factoring a persons experience
and training.
When a church is considering the compensation of its minister, it is important that such
consideration be informed by:
     Overall objectives of the ministry of the congregation both internally and in
      mission to the community.
     A clear position description of the minister’s work agreed upon by the minister
      and the session, including priorities.          When considering a change in
      compensation of its minister, it is important to give consideration to evaluation of
      the performance and accomplishments of work in relation to goals and objective
      set jointly by the session and minister.
     A clear statement as to what church work is assumed by the lay leadership.
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         The resources of the church and comparable salaries within the church and the
          presbytery. If a church is unable to meet the minimum salary requirements set
          by the presbytery, the church must accept part-time ministry with part-time pay.
         The minister’s experience and training. In general, the minimum compensation is
          appropriate for a person who is just starting in ministry and has no unusual
          degree of experience or skill. The midpoint is appropriate for a person who
          performance and experience is satisfactorily across the range of the important
          aspects of the work (perhaps with weaknesses in certain areas being offset by
          unusual strengths in others). The highpoint is appropriate for a person whose
          performance and experience is in all important aspects greatly beyond normal
          expectation.
Assistance with compensation for church sessions can be obtained through the
Committee on Ministry liaison or Executive Presbyter. Help can also be obtained from
the Presbyterian Church (U.S.A.), Churchwide Personnel Services, www.clc.pcusa.org.




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                                     PRESBYTERY OF THE TWIN CITIES AREA
                                          COMMITTEE ON MINISTRY

                          POLICY ON MINIMUM BENEFIT REQUIREMENTS FOR
                   MINISTERS OF WORD AND SACRAMENT SERVING CONGREGATIONS

The following are required minimum benefits for pastors:
     1. Salary Compensation
        Minimum compensation for a full-time minister serving a congregation shall be
        set annually by action of the Presbytery. A housing allowance is calculated as
        part of the total salary compensation.
     2. Vacation
        Presbytery Minimum: One month annually.
        Normally vacation is accrued at the beginning of the calendar year. If other
        accrual methods are used, they shall be reported as part of the terms of call.
        Normally only one week of unused vacation carries over to a new calendar year.
        Unused vacation may be part of dissolution or separation package negotiation.
     3. Continuing Education
        Presbytery Minimum: 2 weeks and $1,200 annually.
        Continuing education (both time and money) shall be accruable over three years.
        Unused continuing education should not be part of a dissolution or separation
        package.
          Continuing education plans and reporting should be negotiated with the session
          before the continuing education is arranged and should be used for activities and
          events that benefit both the congregation and the pastor, (e.g. conferences,
          training, seminars, etc.) and reports of the learning should be given to the
          session after continuing education is taken.
     4. Board of Pension Dues
        Full Presbyterian Church (USA) Board of Pensions dues shall be paid for all
        pastors of churches based on effective salary (as defined in “Salary
        Compensation for Ministers). Pension rates are provided annually by the Board
        of Pensions. Exceptions to this requirement:
        a. Retired persons. In this case the church is responsible for vacancy dues to
            the Board of Pensions.
        b. Pastors from denominations in communion with the PCUSA who wish to
            continue participation in their denominational program for medical and
            pension benefits. In this case churches shall arrange to contribute to that
            particular plan.
        c. Persons in temporary relationships who have other retirement plans and
            medical benefits (eg through a spouse’s employer) and have never
            participated in a Board of Pensions plan. In this case, the church must
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               reimburse the pastor for an amount equivalent to the PCUSA benefits, and
               some may be taxable.
     5. Auto Allowance
        Reimbursement for auto expense should be by voucher per mile at the current
        IRS rate. A maximum auto expense may be set for reimbursement of normal
        and expected mileage. Auto allowance without voucher (e.g. a set mileage
        payment) is not recommended and must be reported as taxable income.

OPTIONAL BENEFITS
All optional benefits shall be reported to the Presbytery through the annual review of
terms of call for the pastors of this presbytery.
     1. Professional expense
        It is recommended that an amount be set aside to cover professional expenses,
        other than auto allowance, that the pastor might incur in fulfilling the duties of
        their position description. This might include purchase of books, out-of-pocket
        expenses and so forth. In order to avoid tax implications, professional expense
        should be vouchered. Professional expense should not be included in separation
        agreements.
     2. Self-Employment Contributions Act Reimbursement (Social Security offset)
        Contribution of part of the pastor’s Self-employment Contributions Act (SECA)
        obligation. This amount is taxable income and recognized as salary by the
        Internal Revenue Service. The total amount contributed by the church should not
        exceed 50% of the totals SECA obligation. Any amount more than 50%, is
        effective salary and subject to pension dues.
     3. Dental coverage
        Coverage of the cost of adding dental coverage to the Board of Pensions
        insurance plan, or provide dental insurance through commercial sources.
     4. Medical/Dental supplement
        Establishment of a medical and dental supplement fund to cover the deductible
        medical and dental amounts of the pension fund for the pastor and his/her family.
        To avoid tax implications such funds must be vouchered.
     5. Optional retirement contribution
        Contribution of additional money to the pastor’s Board of Pensions retirement
        account or tax-deferred annuities.
     6. Sabbatical
        Churches may elect to offer their pastor a sabbatical. It is recommended that the
        church consider using the Presbytery Personnel Committee’s policy as a
        guideline.
     7. Moving expense


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          Reimbursable expenses of moving into or within the Twin Cities Area. All
          expenses should be vouchered and a maximum expenditure may be set. If
          expenses are not vouchered, moving expense is taxable income.
     8. Housing loans
        Loans to pastors for purchase of houses are discouraged. If a loan is given,
        applicable state and federal laws regarding loans to officers of non profit
        corporations must be strictly followed. Tax on low interest loans must be paid as
        required by law.
          It is the policy of the Presbytery of the Twin Cities Area that all housing loans
          made by churches to pastors and associate pastors are part of the terms of call
          and are subject to approval, as in the case of all other terms of call, by the pastor
          or associate pastor, the congregation, and the presbytery.




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                                      Presbytery of the Twin Cities Area
                                           Committee on Ministry
                    Guidelines on Honorarium and Hourly Pastoral Services


Clergy or laypersons providing services for congregations within the presbytery should
be given an honorarium according to the following minimum rates:

                              Metro                                   Non-Metro

Pulpit Supply
1 service        $125                                                    $100
2nd Service        $50                                                    $40
    (assumes same sermon)

Moderate Session
                              $50                                            $40

Contracted Pastoral Care and Services:
                  $25 per hour                                               $20 per hour

Conducting Workshops and Seminars
               Negotiable

All should include travel expense at the prevailing IRS rate in addition to the honorarium.




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                                     PRESBYTERY OF THE TWIN CITIES AREA
                                          COMMITTEE ON MINISTRY

                                             GUIDELINES ON SEVERANCE


Congregations who request or force dissolution of a pastoral relationship are expected
to negotiate severance for pastors. Severance is not recommended when pastors leave
a church voluntarily, or when there has been misconduct.

         Recommended severance is full salary, housing and pension payments of 1
          month for every year of service to the particular church, paid monthly, with a
          minimum of 3 months and maximum of 12 months.

         Severance payments should end when new employment is found that includes
          compensation equivalent to or greater than the former position.      If the
          compensation for new employment is less than the severance payment, the
          church should pay the difference for the remaining length of the severance
          agreement.

         Reimbursement for unused vacation time up to 1 month may be part of the
          severance package.       No other benefits (continuing education, book or
          professional expense, etc) should normally be included.

         Severance agreements must be approved by the congregation at the time of the
          congregational meeting to dissolve the relationship and must be reported to the
          presbytery through the Committee on Ministry.

         It is recommended that consideration be given to outplacement services through
          an approved career development or personal counseling, typically for the length
          of the severance. The presbytery can be used to escrow payments for use by
          the pastor with unused funds to be returned to the church.




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                                     PRESBYTERY OF THE TWIN CITIES AREA
                                          COMMITTEE ON MINISTRY
                       POLICY ON TEMPORARY SUPPLY PASTORAL RELATIONSHIPS


Churches without installed pastors, stated supply pastors, or interim pastors, are
required to consider first ministers of Word and Sacrament who are enrolled in the
active or member-at-large categories of the Presbytery of the Twin Cities Area for all
temporary pastors pastoral relationships.

The Committee on Ministry will supply a list of approved persons for Sunday pulpit
supply.

The Committee on Ministry chair and the Executive Presbyter, in consultation, will
provide a list of minister members who have agreed to consider serving as interim
pastor, interim associate pastor, or stated supply.

Ministers of Word and Sacrament wishing to serve in temporary pastoral
relationships other than an occasional pulpit supply shall submit a written
request and a contract to the Committee on Ministry for approval before
beginning such service. (Book of Order, G-11.0502b)

It is the policy of the presbytery that an interim pastor, interim co-pastor, or interim
associate pastor, stated supply pastor, or temporary supply pastor will be a
member of this presbytery.




CoM Guidelines: Approved:
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