CENTRAL ILLINOIS DISTRICT 1850 North Grand Ave. W Springfield, Ill

Transcription

1 CENTRAL ILLINOIS DISTRICT 1850 North Grand Ave. W Springfield, Ill (217) Fax: (217) cid@cidlcms.org Compensation Guidelines for Professional Church Workers May 31, 2011 to Sept. 1, 2012 Revised 9/96, 9/02, 5/04

2 Subject Table of Contents Page Basic Principles 1. I. Salary Base 3. II. Determination of Cash Salary 3. III. Formal Education/Experience 4. IV. Second Career Church Workers 4. (Church and Secular) V. Additional Duties 5. VI. Parsonage/Teacherage 6. VII. Worker Benefit Plans 6. VIII. Church Related Expenses and Church Office 7. XI. Vacancies/Pulpit Supply 9. X. Performance Merit Pay 9. The Increment Table Worksheet for a Teacher 12. Worksheet for a Pastor 13.

3 BASIC PRINCIPLES 1. Workers are more valuable after each year of experience because they have had greater opportunity to put their skills and learning into practice. 2. The salary base is raised each year to reflect the increase in the cost of living. Without this yearly adjustment, the worker is taking a cut in pay. 3. Care for God's workers includes care for family medical needs. Congregations should pay the Worker Benefit expenses for both the worker and his family. 4. Different jobs require diffe rent levels of expertise, skills, and responsibility. Additional compensation is one way of recognizing the extra gifts God's workers are giving to the congregation in situations such as: a. A senior pastor is responsible for all staff members. b. Some workers are not on call 24 hours a day while others may be; pastors are on call 24 hours a day. c. A starting teacher is required to possess a bachelors degree while a starting pastor is required to possess at least an MDiv or equivalent. d. The amount of administrative responsibility is affected by the size of the congregation or school. e. Workers are sometimes asked to perform duties beyond what the job description specifies. 5. Evaluations of workers are part of the professional growth process but should be independent of compensation. Evaluations should be consistent with the congregation's constitution. 6. Continuing Education a. Continuing education assists in maintaining and developing the present level of skills for service. The cost should be paid by the congregation. Congregations will benefit by keeping their professional workers' skill levels current through continuing education. b. Congregations should decide additional salary for degree work beyond continuing education coursework. Factors in this decision may include: - is prior congregational approval needed? - will additional salary result? - who will pay for the education?

4 7. Advanced or multiple degrees a. The scale classifications beyond a master's degree (or equivalent) include the MA+16 which may be used for a second masters as well as work toward additional degrees. The Masters of Divinity (M.Div.) degree (or equivalent) is a 4-year degree required of pastors in our synod and considered by many in our society to be equal to a doctor's degree. The Masters of Sacred Theology (S.T.M.) and the Doctor of Ministry (D.Min.) are degrees beyond the M.Div. and the salary scale recognizes the differing requirements in coursework. The salary for Doctor of Theology (Th.D.) and Doctor of Philosophy (Ph.D.) degrees reflect differing degree requirements and knowledge gained. b. When the congregation benefits by the skills learned due to their worker obtaining an advanced degree, the congregation should be encouraged to pay a salary that recognizes this benefit. 8. When the congregation benefits by years of experience as a full-time church worker before entering the pastoral ministry, the congregation is encouraged to pay a salary to recognizes this benefit. 9. Housing for the worker is included in the salary scale and includes utilities. a. If housing is provided by the congregation, the salary should be reduced by 20%. b. IRS regulations regarding declaring a housing allowance is a different matter, but needs to be addressed by the congregation. Note: Consideration should be given to called workers when the congregation provides housing. In recent years, the church has begun to address the need of the worker to build housing equity to allow them to have housing when they retire or consider a call when no housing is provided. A congregation-provided tax sheltered annuity of $500-$1500 yearly is one way of assisting the called worker in building housing equity. 2

5 SPECIFIC APPLICATIONS Note: When considering compensation for a church worker, all of the following should be considered: I. SALARY BASE Salary Base Years of experience Educational training Housing of the worker Additional duties expected of the worker Worker benefits The salary base (multiplier of 1.0) is determined annually by the Board of Directors of the Central Illinios District, LCMS, as of September 1. The Salary Base reflects the cost of living increases. Base Salary CID salary Cost of living increase North Central US M ay 2011 ABCD Option 2% May 2010 No Changes M ay 2009 No Changes M ay 2008 A-B-C-C 2.74% 3.1% to 4% May 31-Sept. 1, 2007 A-B-C-D.70% to 2.2% 3.0% May 31-Sept. 1, 2006 A-B-C-D 1.75% to 2% 3.17% to 6.17% The Starting Base is now adjusted for the various insurance plans offered by Concordia Health Plans. (CID Recommended is Health Insurance Option B) Salary Base Option A $29,300 29,886 Option B $30,000 30,600 Option C $31,440 32,069 Option D $32,775 33,431 II. DETERMINATION OF CASH SALARY Inflation and its inevitable effect on the cost of living must be taken into account so that the cash compensation structure for workers is kept up-to-date at all times. Based on Principles #1 & 2 stated earlier in the guidelines, the following steps should be taken to determine a worker's cash salary: A. From the attached Increment Table, determine the number of years of experience and the level of training of the worker to obtain a multiplier. B. Add to the multiplier all of the other factors for additional duties or responsibilities. C. Apply the multiplier times the salary base for the annual salary. D. Make adjustments for housing and housing equity (Principle #8 above and VI. A stated later in this guideline.) 3

6 III. FORMAL EDUCATION/EXPERIENCE (see Principle #4 & 7) A. BA or BS degree (4 years of college) with no experience is the starting point for base salary. B. MA+16 is used for a teacher with 2 masters degrees. C. Pastors should be considered on the I ncr ement Tablee as having a Master's degree + 24 semester hours, as a minimum. Congregations may wish to grant additional payment for an advanced degree. D. Where other categories of workers (eg. Deaconess, Director of Christian Education, Director of Evangelism, etc.) are concerned, congregations are encouraged to use and tailor the guidelines accordingly. Consideration is to be given to the training and experience of the individual which will vary from worker to worker. As an example, if a DCE graduates with a BA and then spends 1 year of an internship, the congregation may wish to consider them as a BA with 1 year of experience. A graduate whose internship or student teaching was required prior to the diploma would likely not be given credit for experience. E. For salaried non-degree full-time professional church employees: 1. For a worker with only a high school diploma, the salary base would be.6 of the salary base. 2. Formal training for the position involved to be compensated at a rate of.1 for each year of training comparable to 1 year of full-time college work. 3. Non-formal training (in addition to experience) obtained prior to current employment to be compensated for at the rate of.05 for each year of such training up to a maximum of.4. IV. SECOND CAREER CHURCH WORKERS Second Career Church Workers follow one of 2 career tracks: A. Pastors who enter the ministry coming from a church career (eg. Lutheran teacher who become pastor s) [Pr inciple #7]. A year of experience should be applied for every year employed as a full-time church professional prior to entering the seminary. 4

7 B. Pastors who enter the ministry from secular occupations which are beneficial to the church (eg. people skills, organizational skills, administrative skills, training ability, counseling skills): Any Pastor entering the ministry who is older than the anticipated typical age of 26 at the time of ordination would be credited with half of his years of experience by using the following formula: age at time of ordination minus 26 divided by 2; such result should be added to his actual year of experience for use with the Increment Table. V. ADDITIONAL DUTIES Example: For a man ordained who is 32 years old at the time, subtract 26 from 32 and divide the 6 by 2 for a credit of 3 years of experience. A. District Administrative Personnel: District President - add.47 to multiplier. District Administrative Staff - add.27 to multiplier. District Personnel salaries are set annually by the Board of Directors. Salary information is available to congregations from the District Business Manager upon request. B. Congregational Pastor: Senior Pastor - add.04 to.25 to multiplier. Influenced by the size of the congregation and number of full-time staff. Pastor with Multiple Parishes - add.04 to.08 to multiplier. C. Teachers: Principal Athletic Director Youth Director Music Director Other additional responsibility - add.10 to.25 to multiplier - add.05 to.10 to multiplier - add.08 to.14 to multiplier - add.08 to.14 to multiplier - add.04 to.08 to multiplier 5

8 VI. PARSONAGE/TEACHERAGE A. Housing (see Principle #8) The Salary Base includes an allowance for housing. Utilities are included in the salary as well. If housing is provided (parsonage or teacherage), the cash salary is to be reduced by 20%(the reduction includes utilities), and a congregation-provided tax shelter annuity following LCMS approved form (called a "Housing Equity Program") should also be provided (consult 1.63 of the Congregational Treasurer's Manual, "Housing Equity Program"). Such a Housing Equity Program may both avoid capital gains tax for the pastor who sells his house and moves into congregation owned housing as well as establish equity for the time that a pastor will need to have monies available for a down payment on a home when he retires or accepts a call to a congregation where no parsonage is provided. The amount the congregation yearly contributes to the fund is negotiable: an amount of $500 - $1500 is suggested. B. IRS Declared Housing Amount The congregation, in consultation with the worker, should designate by resolution, in advance (for income tax purposes) a sufficient portion of the total salary to cover the worker's housing, furnishings, insurance and utility costs, etc., as defined by Internal Revenue Service regulations (consult 1.41ff of the Congregational Treasurer's Manual "Housing and Housing Allowance"). VII. WORKER BENEFITS (see Principle #3) A. Worker Benefit Plans The entire cost of retirement, survivor and health plans for the worker and his family should be provided by the employer. B. Social Security A called worker has the responsibility to pay for his/her own Social Security coverage. Workers who are in various offset programs should be paid an additional stipend, equal to the amount paid as the employer share of Social Security taxes, to assist the worker in making the "self-employed" payments. 6

9 C. Days of Rest and Holidays (see Principle #3) Congregations should encourage professional church workers to be good stewards of their time in regard to health and family by taking off at least one day a week, in addition to holidays. A definite policy should be established for vacations, we suggest: Total Years of May Carry Professional Service Vacation Over D. Medical Leaves of Absence weeks 1 week Over 5 4 weeks 2 weeks The congregation should develop a policy that integrates with the Concordia Disability and Survivor Plan (CDSP) medical leaves. (eg. One recommended method is that after 2 weeks of disability, the 30% of the worker salary not covered by the CDSP would be covered by the congregation.) VIII. CHURCH RELATED EXPENSES AND CHURCH OFFICE A. Automobile When setting a minimum guideline, the church worker should be compensated according to the current year of IRS regulations. (eg = $.505 per mile) At any rate used, the church workers' automobile expenses should be completely r eimbur sed for work done on behalf of the congregation. The basic principle which should be kept in mind is that when an automobile is in effect a tool without which the worker cannot effectively function, provision for this tool must be made by the congregation. Congregations may wish to consider owning the automobile with the worker reimbursing the congregation for their personal use. Congregations may also wish to investigate the possibility of leasing an auto for the use of the worker. In any event, the IRS regulations allows only for mileage or actual expenses. 7

10 B. Telephone The congregation should reimburse the worker for the expenses of church business on the workers personal telephone. For a congregation whose pastor is frequently "on the road," they may find that paying for a cellular phone service will make him far more effective and efficient. Note: The IRS treats this as extra income, if it is a general reimbursement rather than specific calls. However, the church worker may be able to deduct the telephone in his housing allowance. C. Church Conferences The worker should be allowed the time required, with pay, to attend church sponsored meetings and conferences. The worker should be reimbursed in full for travel and living expenses incurred while attending such meetings. D. Professional Growth The congregation should encourage their workers to obtain continuing education through refresher courses and other professional training. This would include time off without loss of pay or vacation time and some financial assistance toward the cost of the continuing education should be provided. The congregation may also wish to budget a nominal sum for the church worker's purchase of theological books, classes, housing, and other such expenses. (eg. 16 hours a year is one suggested norm for a pastor's continuing education.) E. Church Office Because of the nature of his work, a pastor should be provided with a private office (generally within the church building). The office should be adequate in size, have adequate secretarial staff, and be adequately equipped. Because of the pastor's training and skills, the congregation will surely prefer to have the pastor's time effectively used visiting shut-ins, counseling and other such functions. Computers, faxs, modems, cellular phones and other such electronic aids may be effective tools to allow the pastor more time to do what he is called to do. 8

11 IX. VACANCIES/PULPIT SUPPLY A. Vacancy Pastors The suggested minimum remuneration for a vacancy pastor shall be $100 for each day set aside to fulfill the vacant congregation's responsibilities. The specific hours involved shall be agreed upon by the vacancy pastor and congregation. In addition, a specified reimbursement for auto expenses will also be furnished, preferably not based upon actual mileage since the pastor may often find it expedient to make various hospital visitations or calls while in the pursuit of his own home congregation's pastoral responsibilities. This remuneration guideline does not take into consideration any preaching responsibilities. Inasmuch as the responsibility of conducting services and preaching often falls to someone other than the vacancy pastor, any guest pulpit supply shall be compensated based upon the guidelines for pulpit supply remuneration found below. If, in fact, the vacancy pastor does assume any pulpit supply responsibilities himself, he is to be compensate over and above his regular vacancy remuneration. Multiple pastor parishes with a vacancy should not ignore the additional responsibilities and time demands placed on the pastor(s) who remain. B. Pulpit Supply The following guideline remuneration for guest pulpit supply as a suggested minimum: One service $ Two services Bible Class Mileage * $.50 permile Lodging & meal Paid -- if overnight stay is necessary. X. PERFORMANCE MERIT PAY * Mileage rate normal use would be the IRS Rate for the current year. Because the yearly cost of living increases on the base do not recognize any merit category, congregations may wish to develop a system for additional merit pay. 9

12 Teachers Increment Table YEAR BA BA+8 BA+16 BA+24 BA+28 MA MA+8 MA+16 MA+24 MA+32 MA+48 D.Ed , [Type text] [Type text] 12

13 Pastors THE INCREMENT TABLE YEAR B.Div M.Div Related STM D.Min , B.Div. = Before 2002 Use Column 3 B.Div.- After 2002 Use Column 1. B.Th. = Use Column 1. Related = After receiving a M.Div., these are other Master degrees used in the pastor's field of Work. Columns 1 through 14 = Experience + Education + Other Work recognized by the congregation.

14 Teacher, DCE: Compensation Worksheet 1 Years of Experience 2 Salary Base (page 3) 3 Multiplier (The Increment Table) Teachers/DCEs: Use columns BA to MA+48 4 Additional Duties page 5 5 Principal 6 Athletic Director 7 Youth Director 8 Music Director 9 Additional Responsibility: 10 Additional Responsibility: 11 Merit Increase for Teacher, DCE, etc. (page 9) 12 Other 13 Total lines 3 to Cash Salary Line 2 multipled by line Housing (Parsonage/teacherage provided reduce by 20%. ) 16 (If no housing is provided, skip line 15. Goto line 18.) 17 Subtract 15 from line If housing is provided, place total of line 17 here, otherwise use line If the congregation provides housing, do they provide housing equity? Consult the Congregational Treasurer's Manual (1.63) for more information on "the Housing Equity Program." 20 If question 19 is yes, what is the amount? How Total YES NO Church Related Expenses and Church Office page 7 and 9. Amount A Automobile B Continuing Education C Church conferences D Books and other expenses E Office F Other G Total H Teacher in Offset Plans is paid extra for Social Security (pg.6) Yes No

15 Pastor: Compensation Worksheet 1 Years of Experience 2 Salary Base (page 3) 3 Multiplier (The Increment Table) Pastors: Use columns MA+24 through MA+48 4 Additional Duties (page 5) 5 Senior Pastor 6 Merit Increase for pastors (page 9) 7 Other Total lines 3 to 8 14 Cash Salary Line 2 multipled by line Housing (Parsonage/teacherage provided reduce by 20%. ) (If no housing is provided, skip line 15. Go to line 17.) 16 Subtract line 15 from line If housing is provided, place total of line 16 here, otherwise use line If the congregation provides housing, do they provide housing equity? Consult the Congregational Treasurer's Manual (1.63) for more information on "the Housing Equity Program." 19 If question 18 is yes, what is the year amount? How Total YES NO Church Related Expenses and Church Office (page 7 and 8). Amount A Automobile B Continuing Education C Church conferences D Books and other expenses E Church Office F Other: G Total H Pastor in Offset should be paid extra for Social Sec. (pg. 6) Yes No