Model Letter of Agreement Among (Church), (Town) and RectorVicar) by jpw10107



Letter of Agreement between St. Swithen’s Church, Anytown,
California and the Rev. Jane Garcia

The Rev. Jane Gracia has been elected rector of St. Swithen’s Episcopal
Church, Anytown, California. It is understood that this tenure is to continue
until such time as it is dissolved, with the authorization of the bishop, either by
mutual consent or by arbitration and decision as provided by the relevant
canons of the Diocese of California and of the General Convention.

The ministry of the rector is outlined in the goals and expectations developed
during the search process. They will be reviewed within the first year of call
during a mutual ministry review and are attached to the back of this letter of
agreement. Following this process, ministry goals and expectations will be
revised as required.

Times of Work and Leave
1. The work of the rector includes parish activities and also labor on behalf of
   the diocese and community. The priest is expected to fulfill her professional
   responsibilities within the parameters of a wellness model. A 48-50 hour
   week, with the equivalent of two days off, is considered standard, but not
   absolute. It is suggested that clergy take at least one continuous twenty four-
   hour period each week solely for personal and family use.

2. The rector will have the following periods of leave at full compensation.
    XX (xx) paid leave days including national holidays, to be taken so as not
     to interfere with worship on major occasions (see attached list).
    Four (4) full weeks of annual vacation to include five (5) Sundays.
     Vacation is not cumulative and may not be carried forward except for
     extenuating circumstances pre-arranged with the wardens.
    At least one (1) week of continuing education leave each year which does
     not include Sundays. The rector is expected to dedicate the first year of
     the continuing education leave to the Fresh Start program, offered by
     the diocese to new clergy.
    [Five (5) months of professional development leave for each five (5)
     years of continuous service in parish ministry shall be made available to
     the Rector, and may not be taken before the completion of at least five
     years continuous service. The anticipated expenses incurred by the
     parish for such a leave should be planned well in advance of leave taking.
     It is the responsibility of the rector to confer with the Bishop’s Office as
     to the nature, content and time of leave. This leave must adhere to
     diocesan guidelines.]
    In the event of illness, injury or disability, salary will be continued in
     accordance with the short or long term disability insurance provide by
     the Church Pension Fund.
    Family leave for both natural birth and adoption is provided for in
     accordance with the employers established personnel policy. If no
     policy has been established by the vestry refer to Diocesan House policy
      (see sample personnel policy at
    In addition to mandated clergy conferences and clergy days, up to six (6)
     days of spiritual retreat is provided, not to include a Sunday.

The rector compensation package will be reviewed and adjusted each year to
reflect at least the minimum salary schedule voted by diocesan convention.

Cash Stipend
The rector’s annual cash stipend will be __________ per year.

If there is a Rectory: The rector shall have full use of the rectory and grounds
as her personal residence. No activities will be planned at the rectory without
the invitation of the rector’s household. Expenses connected with the rectory
shall be as follows:
     Utilities shall be contracted for and paid directly by the parish including
       telephone. Personal long distance expenses are paid by the rector.
     Expenses for repair, remodeling and major appliances exceeding $ xx
       shall be paid by the parish in accordance with an annual plan and budget
       mutually agreed upon by the rector and vestry. Within that plan and
       budget, the rector may authorize emergency expenditures, up to $ xx per
       month, reporting them within ten (10) days to the vestry.
     Maintenance of rectory grounds are at the expense of the parish. Major
       alterations to the basic landscaping plan and any grounds maintenance
        items shall be cleared through the buildings and grounds committee of
        the vestry.

If there is a Housing Allowance: When the rector does not live in church
provided housing, a housing allowance of $ xx will be furnished and duly
noted in vestry minutes, in accordance with IRS regulations. The allowance
includes compensation for mortgage/rent, utilities, telephone, taxes, insurance,
and maintenance.

(It is understood that, upon the rector’s request, the vestry will designate, in
advance, a portion of the annual compensation as “housing allowance” under
Sec. 107 Federal Internal Revenue code.)

Social Security Allowance (SSA)
The rector shall receive social security allowance reimbursement according to
the diocesan formula as a contribution equal to 50% of the rector’s self
employment tax obligation based on her compensation package. (This is
included in the diocesan minimums approved at each convention.)

[Housing Equity Allowance (HEA)
[This applies only if the rector is provided housing by the church or receives a housing
allowance that does not permit an ownership interest in that housing.]

St. Swithen’s Episcopal Church shall pay a housing equity allowance equal to
3% of the amount recorded as “compensation by the church pension fund
(only after 5 years of ordination).
     If providing housing: (Cash+SSA+Utilities) x .039 = __________.
     If paying housing used for rent: (Cash+SSA+Housing+Utilities) x .030
       = __________.]

The parish shall pay the following benefits in accordance with Diocesan
CANON XX: Medical, Dental, Basic Life, Employee Assistance Plan and Salary
Continuation (short & long term disability is provided through CPG pension)
The vestry shall pay the following documented expenses incurred by the rector
in fulfilling the duties of office:
     The normal expenses of the church office operations such as telephone,
        postage, office equipment, supplies, secretarial services, etc.
     A professional expense allowance of $ xx annually for reimbursement of
        documented expenses according to a vestry approved accountable plan.
        Expenses incurred in the course of professional activities on behalf of
        the parish include travel/car expense allowance at the rate determined by
        the diocese. Professional expenses include books, professional journals,
        conferences, meetings, professional lunches and professional members.
        Reasonable cell phone and computer expenses will be negotiated and
        documented according to rector and parish need.
     A non-accumulative continuing education allowance of $ xx per year
        shall be paid on behalf of the rector for continuing education expenses.

Discretionary Fund
A parish account, known as the Rector’s Discretionary Fund, is to be
established under the rector’s control. The fund must be audited annually by a
diocesan-approved auditor.

Supplementary Compensation
The rector shall not charge fees for performing any rites of the church (for
example, baptisms, marriages, funerals) for members of the parish. The rector
may, however, receive income from other sources, such as:
    Sacramental services on behalf of persons not in any way related to the
    Fees and honoraria for professional services performed on personal time
      for groups unrelated to the parish or for sermons, books or articles
      published outside the parish.

Use of Buildings
In addition to the use and control of the church and its buildings for the duties
and ministries of the rector, the rector shall have the right to grant use of
buildings to individuals or groups from outside the parish, for non-profit, non-
partisan political purposes, following guidelines approved by both rector and
Review of Mission and Ministry
    The parish goals, as reflected in the parish profile, shall be reviewed and
     revised (as required) within the first year during a mutual ministry review
     conducted by a member of the Bishop’s staff. This review will include
     the wardens, vestry, and the rector.
    Following the initial review, there shall be an annual mutual ministry
     review in order to:
     - Provide the rector, wardens, vestry and congregation an opportunity
        to assess how well they are fulfilling their responsibilities to each
        other and the ministry they share.
     - Establish goals for the work of the parish in the coming year.
     - Clarify expectations of all parties.
     - Isolate areas that have not received adequate attention and may affect
        the ministry of the parish.

In future years, a mutually agreed upon third party should be engaged to
facilitate the ministry review process.

This letter is to be revised at the time of the annual review of mission and
ministry, by mutual agreement and in writing. A copy of the revised Letter of
Agreement is to submitted to the Bishop’s Office for approval. The annual
compensation and expense revisions will be mutually agreed upon in a separate
process with wardens and vestry. In case of disputes, the Bishop shall be the
final arbiter.

[Other Agreements
    All moving expenses and travel expenses incurred in making the move
     from Anytown A to Anytown B shall be paid by the parish. The
     maximum amount agreed upon is $ xx. If the professional movers’
     estimates exceed this figure, other alternatives may be considered. Any
     move less than 50 miles is subject to IRS tax regulations.
    The moving date shall be DATE. The rector shall begin duties in the
     parish no later than DATE unless delayed by adverse circumstances.
   This letter of agreement shall be made part of the minutes of the vestry
    meeting following a parish meeting to introduce the new rector. Copies
    shall be given to each current and new vestry member.
   The rector shall participate (or have participated) in all diocesan or
    nationally required training, including anti-racism and anti-sexual
    misconduct training.
   The parish staff works at the discretion and under the supervision of the
    rector. Their roles, duties and expectations will be reviewed and
    renegotiated within six months of this agreement.]

Acceptance of this Letter of Agreement

____________________________                             _______
Rector                                                   Date

____________________________                             _______
Senior Warden                                            Date

_____________________________                            _______
Junior Warden                                            Date


___________________________________                      _________
Bishop’s Representative                                  Date

Please attach to Letter of Agreement
   Goals from the Parish Profile
 Paid holidays

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