R1: Resolution on Clergy Compensation for 2012 - passed

Resolved, that the minimum standard of full-time pension-based compensation (cash salary, utilities, housing, and Social Security tax reimbursement) for clergy serving congregations in the Diocese of Ohio during 2012 be established as follows:

• At least $45,000 for assisting clergy ordained less than three years;
• At least $48,500 for clergy ordained less than three years, who are in charge of congregations, and for assisting clergy ordained more than three years;
• At least $55,000 for clergy in charge of congregations with an annual Normal Operating Income (NOI) of no more than 180,000;
• At least $55,000 + 10% of NOI greater than $180,000 up to $360,000, for clergy in charge of congregations with an annual NOI greater than $180,000;
• At least $73,000 for clergy in charge of congregations with NOI greater than $360,000; and be it further

Resolved, that in addition to the above minimum standard, it is understood that each employer of clergy in the Diocese of Ohio shall:

• Make pension assessment payments as the Church Pension Fund shall determine;
• At minimum, provide to clergy and eligible dependents full funding for the least expensive medical insurance plan offered through the diocese in the area where the clergy person resides, or an amount equivalent to cost of the least expensive plan offered through the diocese toward a more expensive option. If the parish offers medical insurance coverage directly, and not through the diocese, the benefits must equal those provided by the least expensive plan available through the diocese.
• Provide appropriate reimbursement for expenses incurred in the course of fulfilling the responsibilities of the position, including the actual cost of the use of a personal automobile;
• Allow no fewer than four weeks of paid vacation annually;
• Allow annual professional education/development leave, of no fewer than two weeks, with a minimum allowance of $750, and be it further

Resolved, that each employer of clergy in the Diocese of Ohio be encouraged to:

• Offer additional benefits either fully funded, or on a pre-tax salary reduction basis (e.g., dental insurance, reimbursement for routine dental care, annual medical examination, child-care allowance, etc.);
• Provide for sabbatical and parental leave; and be it finally

Resolved, that the provisions of this resolution be applied on a pro-rata basis to the minimum compensation and benefits related to positions that are less than full-time and more than one-quarter time.

Resolved, that, while recognizing the difficult current economic conditions for employers of clergy in the diocese, we urge those congregations who are financially able to provide additional compensation, and we urge congregations who are not able to increase cash compensation to be creative in consider non-cash benefits (e.g., additional vacation and personal time).

Submitted by:

The Commission on Ministry

Rationale

Title II, Canon 8, of the Canons of the Diocese of Ohio directs the Annual Convention to establish a minimum standard of compensation for clergy employed in the diocese.

The compensation figures represented in this resolution are unchanged from last year’s resolution and, indeed, the pension-based compensation figures remain at 2008 levels. The Commission on Ministry presents this resolution without increases once again this year with regret, but in recognition of (1) the continuing difficult economic and employment context of our day; and (2) the significantly increased value of health care coverage, providing an actual increase in total compensation for those receiving such coverage. Health insurance rates increased some 6.8% for 2011, and are projected to increase 9.8% for 2012.

The Commission on Ministry notes that clergy whose total compensation does not include health care coverage have not had this imputed compensation increase, and urges congregations employing such clergy to provide an increase in salary.

In light of the complexity of health insurance issues and the potential effects of the Denominational Health Plan mandated by Resolution A177 (General Convention 2009), the Commission on Ministry is forming a subcommittee to conduct a critical analysis of the impact of A177 in our diocese and provide recommendations for review by summer 2012.

Definition of Pension-based Compensation

“For pension purposes, your compensation consists of cash salary, Social Security tax reimbursements, utilities, and housing.

•        Cash salary is the stipend you are paid, including bonuses, one-time cash payments, tuition paid for your dependents, severance and any salary reduction arrangements used to fund an annuity or other deferred benefit, such as a tax sheltered annuity or 403(b) plan.

•        Social Security tax reimbursement is compensation your employer provides to offset your self-employment (SECA) taxes.

•        Utilities are allowances you receive to cover the cost of your utility bills, such as fuel, gas, and electricity, or the amount your employer pays for utilities on your behalf.

•        Housing is the allowance you receive for this purpose.”

from “A Guide to Your Benefits,” The Church Pension Fund, July 2003