APPENDIX I A LETTER OF AGREEMENT FOR MUTUAL MINISTRY Between The Wardens and Vestry of
{ENTER NAME OF PARISH},
________, NY,
And The Reverend
who has been elected Rector/Priest in Charge/Missioner (hereafter referred to as Rector for purposes of this agreement) with the understanding that this tenure is to continue until dissolved by mutual consent or by arbitration and decision or as otherwise provided by the relevant Canons of the Diocese of Rochester and of the General Convention.
PREAMBLE
The Rector shall lead _____________________Church as pastor, priest and teacher, sharing in the councils of this congregation and of the whole Church, in communion with our Bishop. By word and action, informed at all times by the Holy Scriptures, the Book of Common Prayer, and the Constitution and Canons of the General Convention and our Diocese, the Rector shall proclaim the Gospel, love and serve Christ‟s people, nourish them, and strengthen them to glorify God in this life and in the life to come. This ministry will be further described in a _________Position Description which meets the mutual approval of the Rector, Wardens and Vestry, to be completed near the end of the first year. When the Rector Position Description has been thus completed, it shall be considered a part of this Letter of Agreement. Newly ordained clergy and clergy new to the diocese are expected to participate in Partners in Ministry, a two year diocesan program of mentoring and education to help clergy bridge the transition period to a new ministry. This agreement shall, at all times, be consistent with policies and Canons of the National Church and the Diocese. Changes in policies will be incorporated as addendums to any agreement.
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SECTION A - TIMES OF WORK AND LEAVE (Diocesan HR Policies in effect in the most current form shall provide interpretation of this section, should questions arise.) (1) The Rector‟s work includes not only activities directed to the parish and its well being, but also labors on behalf of the Diocese and community. The Rector‟s scheduled workweek is _____days, which shall include Sunday activities. The Rector is expected to preserve at least one continuous twenty-four-hour period each week solely for personal and family use. Arrangements will be made for Pastoral Care during this time. (2) The Rector will have the following periods of leave and time allotted at full compensation: (a) (b) Time spent on behalf of the Diocese and community. National holidays, to be taken so as not to interfere with worship for major occasions. One month‟s annual vacation understood to be a number of days pro-rated to the per cent of work represented in this position. There shall be at least four Sundays off per year regardless of the per cent of time worked. The cost of supply clergy for Sundays when the Rector/Priest in Charge is absent shall be borne by the parish. It is understood that vacation unused is not paid, except upon leaving the amount of vacation accrued in the current year and not taken may, at the discretion of the vestry be paid as additional income. Vacation time not accrued will not be paid. Two weeks‟ (understood as the number of weeks pro-rated to the per cent of time worked) continuing education leave each year. Three months‟ leave for every five years of accrued service for sabbatical leave. (Time accrued shall be consistent with per cent of time employed)It is expected that the Rector will remain in the parish for at least one year following a sabbatical. Childbirth leave for the period immediately surrounding the birth or adoption of a child to the Rector/Rector‟s wife, beginning at a time decided by the Rector, according to diocesan norms/standards.
(c)
(d)
(e)
(f)
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SECTION B - COMPENSATION
(Benefit programs may change from time to time and those being offered will replace any in place at the time of employment) (1) The Rector‟s annual cash stipend will be $___________, at least semi-monthly through a Diocesan approved payroll system, through direct deposit. The salary is to be reviewed and adjusted annually in light of annual Diocesan salary guidelines. In additional to salary adjustments that reflect changes in the cost of living, the parish may consider annual merit salary increases reflecting performance. It is understood that, upon the Rector‟s request, the Vestry will designate a portion of the annual cash stipend as “Housing Allowance” under the Federal Internal Revenue Code. (2). If living in a Rectory, The Rector shall have full use of the Rectory (quiet enjoyment) at ___________________________ as personal residence. No parish activities will be planned at the Rectory without the invitation of the Rector‟s household. Expenses connected with the Rectory shall be handled as follows: (a) Utilities shall be contracted for and paid directly by the parish. (b) Expenses for repair, remodeling and major appliances shall be paid by the parish in accordance to an annual plan and budget mutually agreed to by the Rector and Vestry. Within that plan and budget, the Rector may authorize such expenditures, up to $_______________ monthly, reporting them within ten days to the Vestry. (c) Use and maintenance of Rectory grounds are at the Rector‟s discretion and personal expense, with the exception of major alterations to the basic landscaping plan, and such grounds maintenance items as may be included in the annual plan and budget referred to in sub-paragraph (b) above. (4) The Rector shall receive full SECA Reimbursement payments, quarterly before the 15th of April, June, September and December. (SECA is computed on salary and if in a rectory, the fair rental value of a furnished rectory, and utilities). The parish will pay a Housing Equity Allowance at an annual rate equal to 5% of salary to be invested in a tax-deferred investment which will be paid to the Rector at retirement in accordance with IRS regulations concerning such investments. The congregation will participate in the Church Pension Fund with premiums set at 18% of the total of the Rector‟s salary, housing and SECA reimbursement
(2)
(3)
(5)
(6)
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(7)
Other benefits: (a) Hospital and surgical insurance paid by the parish and provided through the Diocese. The parish will utilize the policies of the Diocese to determine available plans and recommended payment structures. Parish contributions are capped at ____mo. for a household and ______mo. for a single priest. This will change according to Diocesan changes. Group Life provided by the Church Pension Group equal to two times annual salary with a cap of $50,000, unless changed by the Church Pension Group, which program will then apply. For canonically resident clergy and their dependents, dental insurance (if provided by the Diocese) as provided through the Diocese at such cost as set by the Diocese. Worker‟s Compensation Insurance, as required by State Law, and NY State Disability coverage at the discretion of the congregation. Participation in a Flexible Spending or Health Savings Accounts if available through the Diocese. Short Term Income Replacement coverage available on a personal basis if available through the Church Insurance Company.
(b)
(c)
(d) (e) (f)
SECTION C - EXPENSES
Please refer to diocesan annual memorandum containing clergy wage guidelines. The Vestry shall pay the following expenses incurred by the Rector in fulfilling the duties of office (the vestry may adopt a budget for these expenses that is not to be exceeded by the Clergy person in charge): (1) Travel expenses, at IRS allowed rate, plus out-of-pocket costs of parking fees, tolls, bus fares, etc. The normal expenses of the church‟s office operation, such as telephone, postage, office equipment, supplies secretarial services, etc. An annual budget line item in the amount of _______________ for the reimbursement of professional expenses upon submission of appropriate documentation. The cost of a telephone in the Rector‟s residence. This telephone number shall be published to insure the Rector‟s ready accessibility in case of emergencies. The Rector shall pay the cost of all personal long distance calls.
(2)
(3)
(4)
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(5)
A Continuing Education Allowance of at least $500 per year, to be reviewed annually, set aside in a special account, and paid to or on behalf of the rector toward expenses incurred in relation to continuing education leave. Unexpended portions of this allowance shall be allowed to accumulate for use in succeeding years up to four years, or $2,000. (Part-time Rector‟s shall receive a pro-rated share of continuing education allowance and this allowance shall not be paid as additional compensation if not used for the education of an active clergy person)
SECTION D - DISCRETIONARY FUND Please refer to diocesan human resources manual for guidelines referencing discretionary funds.
In accordance with the Canons of the General Convention, a Discretionary Fund is established under the Rector‟s sole control, from the following sources: ________________________ and gifts given the parish on behalf of the Rector for the purposes of the Discretionary Fund. It is an account „owned by the church”, will be audited annually and remains at the church upon the termination of the clergy person. (If funds are given to the Rector directly, it is reportable income to the Rector)
SECTION E - SUPPLEMENTARY COMPENSATION The Rector shall not charge fees for performing any rites of the Church (for example: baptisms, marriages, funerals) for members of {ENTER NAME OF PARISH} Church. The Rector may, however, receive income from other sources, such as sacramental services on behalf of persons not in any way related to {ENTER
NAME OF PARISH}
Church, fees and honoraria for professional services performed
on personal time for groups unrelated to {ENTER NAME OF PARISH} Church, or for sermons, books, or articles published outside the parish.
Wording for Special Circumstances: The Rector may engage in income producing activities up to a total of ____________ days per year, which shall not be counted against any leave time.
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SECTION F - USE OF BUILDINGS In addition to use and control of the Church and Parish buildings for the discharge of the duties of the Rector’s office, as provided by canon law, the Rector shall have the right to grant use of the building to individuals or groups from outside the parish, following guidelines approved by both Rector and Vestry. SECTION G - MINISTRY REVIEW There shall be an annual discussion and mutual review of the total ministry of the parish, in order to:
Provide the Rector, Wardens and Vestry opportunity to assess how well they are fulfilling their responsibilities to each other and to the ministry they share. Establish goals for the work of the parish for the coming year. Isolate areas of conflict or disappointment that have not received adequate attention and may be adversely affecting mutual ministry. Clarify expectations of all parties to help put any future conflicts in manageable form.
The Canon for Deployment or a mutually agreed upon third party will be engaged to facilitate the ministry review process.
SECTION H - REVISION This letter may be revised only by mutual agreement at the time of the annual mutual ministry review, except that compensation and expense revisions may be mutually agreed upon in a separate budget process.
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SECTION I - OTHER AGREEMENTS
(1) All moving and travel expenses incurred in making the move from __________________ to ___________________ shall be paid by ___________________ church. (It is strongly recommended that the moving company with agreements with the Diocese be utilized and contacted first to maximize the savings arranged through the Diocese.) The moving date shall be in the week of __________________. The Rector shall begin duties in the parish not later than ____________________, unless delayed by adverse circumstances. All pay and benefits shall become effective on _____________. This Letter of Agreement, and its related Position Description, shall be made part of the minutes of the next Vestry meeting following its signing, and copies shall be given to each new Vestry member.
(2)
(3) (4)
ALTERNATE WORDING FOR CHURCH-PROVIDED HOUSING (5) In the event of the Rector‟s death, the Vestry agrees to continue to provide the Rector‟s surviving direct dependents with the compensation items agreed to in Section B(1) and (2), and appropriate Health and Hospital Insurance if available through the Church Pension Group, for a period of___________ months. Continued use of the Rectory beyond this term shall be subject to agreements entered into during the term.
(6)
If the Rector and Vestry are in disagreement concerning interpretation of this Letter of Agreement, either party may appeal for mediation to the Canon for Deployment or other mutually agreed upon third party, the Bishop remaining the final arbiter. _______________________ Rector
____________________ Date
_______________________ Senior Warden
_______________________ Bishop
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