R2: Resolution on Clergy Compensation for 2011 -- 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 2011 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 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 minimum standard for 2011 represents the following adjustment from the minimums established by the 190th Annual Convention for 2008:

The 183rd Annual Convention of the Diocese of Ohio set a goal of raising the median clergy compensation in the diocese to the median level for the Episcopal Church as a whole. In 2009 the diocese ranked 36th of 99 dioceses in median clergy compensation. In 2009 the diocese also had median clergy compensation comparable to or higher than the contiguous dioceses of Southern Ohio, Michigan, Indianapolis, and Pittsburgh. This is a particularly useful comparison because these dioceses are similar in size and demographics.

The annual Net Operating Income at which parishes are required to provide the minimum standard of compensation is not adjusted for 2011.

The increasing cost of medical insurance and health care continues to outpace the increase in the cost of living as a whole. The Commission on Ministry is aware that this poses a real hardship for many parishes, which must pay in full the cost of health insurance for their clergy. As a result, although the minimums for pension-based compensation remains at 2008 levels, the increase in the entire compensation and benefits package offered to the clergy will be substantially greater than the increase in the cost of living for 2011.

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.