Northwestern Pennsylvania Synod, ELCA Compensation Guidelines Compensation Standards for Rostered Leaders

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1 Northwestern Pennsylvania Synod, ELCA Compensation Guidelines Compensation Standards for Rostered Leaders Rostered Leader compensation is to be revisited and renegotiated annually. Compensation should be discussed with the governing body of the ministry site as well as the rostered leader to insure a mutually beneficial agreement is reached. This document aims to provide a standard by which conversation can begin, please see each part of the compensation package, not as a requirement, but as a starting point for negotiation. The beginning point of any compensation package is the combined base salary and housing allowance figure. The variety of circumstances, resources, and needs represented by rostered leaders and ministry sites make it extremely difficult to recommend one salary figure that would apply to every rostered leader of this synod. This synod in assembly has adopted a minimum base salary and housing allowance amount. An actual salary amount beyond the minimum is expected and is a matter to be determined between rostered leader and the ministry site. The care of the rostered leader and of the rostered leader s family is a significant ministry of the people they serve. This concern for one another is a witness to what we believe and practice in the life of the church. (Lower Susquehanna Synod guidelines on Rostered Leader compensation ) Base Salary The minimum base salary of a full-time newly rostered leader with a masters degree will be $34,000.00, reflecting a 2018 COLA of 2.0%. The minimum base salary of a full-time newly rostered leader with a bachelors degree will be $31,700.00, reflecting an October 2018 COLA of 2.0%. For rostered leaders continuing in service, in the same call, or when a rostered leader begins another call $400 should be added to the base figure for each year of experience in rostered ministry (see the compensation chart that follows and note its further recommendations for compensation increases)

2 Additional factors to consider when establishing a base salary: How long has the rostered leader served in the ministry and in their current role? Was the rostered leader previously employed and does that experience enrich or enhance their ministry? Has the rostered leader earned educational degrees or certifications beyond the education needed to fill their ministry position and do those degrees enrich or enhance their ministry? If the rostered leader has earned additional degrees and certifications, what are the credentials of the conferring institution? What are the leader s responsibilities? The nature of the rostered leader s task The size of the ministry site served Staff or team ministry Multi-parish site Consider the current cost of living If the rostered leader is working part-time consider the recommended minimum base salaries are assuming a hour work week. Find the rostered leader s appropriate minimum based on years of ministry; divide it by the 52 weeks of the year, then by hours to determine an appropriate hourly range for the parttime rostered leader. Example: $30,000/ 52= $ per week, $576.99/ 40 = $14.42/hour. Alternatively, you can presume a hour work week as full-time, assess your leader s part-time status and take a percentage of the salary. In addition to base financial salary, it is expected that each rostered leader will be compensated as follows: Housing Each rostered leader shall be provided free use of church-owned home, including utilities, or a housing allowance equal to at least 30% of the base salary. This housing allowance shall not be less than $10,000 per year. If a church-owned home is provided, a housing equity allowance should be considered. For income tax purposes, Associates in Ministry, Diaconal Ministers, or Deaconess do not enjoy the same tax benefits as do clergy with provided housing. Ordained ministers but not lay employees may exclude from taxable income the rental value of the parsonage or any housing allowance received to the extent used to provide a home (IRS Section 107). In order to offset this clergy tax advantage, it is suggested that it would be appropriate for employers to add an amount, say 10%, to the rostered person s salary. This will act as a balance to the tax benefits that clergy have under present codes. (Lower Susquehanna document)

3 Taxes and Social Security Each pastor shall receive reimbursement for self-employment taxes equal to at least one-half of the pastor s self-employment tax. If a congregation is the sole employer of non-ordained rostered leaders the ministry site will withhold social security. Health and Pension Benefits Each rostered leader shall receive health benefits according to the guidelines of the Evangelical Lutheran Church in America. Each rostered leader, whether full or part-time and regardless of age, shall receive pension contributions at the rate of at least 12% of full-time defined compensation unless the contributions exceed IRS limits. Workers Compensation Insurance All rostered leaders will be adequately covered under the ministry site s workers compensation insurance. Continuing Education All rostered leaders will receive a minimum of two weeks time annually for continuing education (this may include no more than two Sundays), plus a reimbursement of at least $750 for tuition and expenses for the 50 hours (minimum) of continuing education expected by the ELCA. Reimbursement of at least $250 will be provided for books and publications. Days off and Vacation Each full-time (40 hours per week or more) rostered leader will be granted at least one day off per week and four weeks of paid vacation time annually (including 4 Sundays). For part-time rostered leaders, please consider an equitable compensation for this category given their work load.

4 Mileage Compensation Ministry sites will provide a car for the rostered leader or mileage reimbursement according to the current rates* allowable by the Internal Revenue Service. To receive reimbursement in compliance with the I.R.S., the rostered leader should provide the dates of travel, the start and end mileage of their odometer, the general nature of their travel (visit, mileage between ministry sites, meeting) and a mileage total. *The 2017 IRS mileage rate is 53.5 cents per mile (effective Jan. 1, 2017).

5 Budget for Rostered Leader Ministry A. COMPENSATION With a Parsonage: 1. Base Salary 2. Social Security tax allowance 3. Total of 1 and 2 4. Housing as parsonage (use 30% of line 3) 5. A. Household furnishings allowance* B. Utilities allowance* (*Note: list these amounts only if they are to be paid to the rostered leader directly) 6. Total of 3, 4, 5 (this is the annual defined compensation) 7. Total of (This is how much you actually pay your rostered leader directly.) Without a Parsonage: 8. Base Salary + Housing Allowance 9. Social Security tax allowance (6.65%) 10. Total of 1 and 2 (this is the annual defined compensation) B. PENSION AND OTHER BENEFITS 1. ELCA Pension at % of defined compensation 2. ELCA Medical and Dental Insurance (check one below): a. Member only b. Member & spouse c. Member and children d. Member, spouse, & children e. Coverage waived 3. Other insurance or benefits: 4. Housing Equity Contribution (if parsonage is provided) (*Note: This amount is paid to Portico (formerly Board of Pensions) and goes directly into the ordained rostered leader s retirement account pre-tax.) C. EXPENSES The congregation will provide for the following expenses related to this rostered leader s ministry. 1. Automobile and travel allowance 2. Other professional expenses 3. Expenses for official meetings of the synod, as reimbursed 4. Continuing education ($750 recommended) 5. Other 6. Pay the moving expenses to this field of service as follows: D. AGREEMENT 1. Vacation time of days per year, including Sundays; 2. Continuing education time of weeks per year (recommended minimum of two weeks per year); 3. Participation in a First-Call theological Education Program, where applicable; 4. Ongoing care through a Mutual Ministry Committee; TOTAL BUDGET FOR PASTORAL MINISTRY FOR 2015