SALARY GUIDELINES
FOR THE PASTOR/STAFF-PARISH RELATIONS COMMITTEE

GUIDELINES AND PROCEDURES

General Policy:

PROCESS FOR APPROVING THE SALARY PACKAGE

The Pastor/Staff-Parish Relations Committee shall:

• Discuss pastoral support provisions with the pastor(s).
• Report its recommendations to the Administrative Board/Council. 
• Submit budget items to the Committee on Finance. 
• Submit recommendation to the Charge/Church Conference for final action.  

Only the Charge/Church Conference has the authority to set pastoral salaries and other pastoral support provisions.

The initiative for recommending the annual salary, benefits and travel package rests with the Pastor/Staff Parish Relations Committee.  Annually, prior to the adoption of the budget for the new fiscal year, the Committee is to confer with the pastor(s) about all pastoral support provisions, i.e., Salary, Housing, Continuing Education.

Pastoral support provisions should reflect the many demands the church and the community make upon the pastor and current economic factors. Consideration should be given to the rising cost of preparing to enter and retire from parish ministry. The salary support package should, above all else, reflect appreciation for the quality of the pastoral ministry and leadership provided by the pastor(s).  A church is wise which pays the pastor(s) a generous salary and which makes provision for annual salary increases.    

Instructions

• A. Charge Information:
• 1. If a single church, enter the name of the church. If a multi-church charge, enter the name of the charge.

• B. Pastor Information:
  • 1. Enter the name of the Pastor.
  • 2. Check with pastor about Conference Relationship status (ex. Elder, Local Pastor, etc.)
  • 3. See Pastoral service record in most recent Journal.
  • 4. Minimum Base Salary Required: The minimum base salary is just that – a bare minimum to be paid to pastors.  It is not the standard for setting salaries; it is the line below which salaries shall not go. See table  & instructions bellow.

Part-Time Local Pastors
Compensation of all part-time pastors shall be negotiated by the Pastor/Staff Relations Committee and the District Superintendent.

C. Negotiated Base Compensation & Social Security Offset

• 1. This is the negotiated base salary.
• 2. Social Security Offset: In addition to the cash salary paid to each full-time pastor, an amount equal to ½ the current Self Employment tax rate – as determined by the IRS – shall be paid by the local church to offset the difference between self-employed and employee Social Security tax rates. All pastors are encouraged to participate in the Social Security Program.  This amount is only available for those participating in the Social Security program.

• 3.    Sum of Negotiated Base Salary & Social Security Offset

D. Housing

• 1. A parsonage shall be provided for the appointed pastor and his/her family and furnished according to the standards established by the 1998 Annual Conference.
  • Utilities, which include gas, electricity, TV antenna or initial basic cable installation, water, sewer rental, basic private telephone bill (not personal long distance charges) and equipment, heat, refuse collection, smoke detectors, and CO detectors, shall be furnished by and paid by the local charge. Refer to the Parsonage inspection form for additional Parsonage Guidelines.
• 2. When a housing allowance is granted in lieu of a parsonage, it shall be done only by the approved conference policy (p. 214, 1980 Conference Journal).  It is recommended that the allowance, including utilities, be the greater of 30% of the pastor’s negotiated base salary and Social Security Off Set or the reasonable estimated cost of housing determined by Housing Allowance Worksheet.

E. Pension Contribution: Local charge contributions to the pastor’s pension are based on negotiated salary, plus Social Security Offset, plus Housing Amount.

• 1. Calculation of Housing Amount:
  • If a parsonage is provided, multiply line C.3 on worksheet by .25
  • If a housing allowance is provided enter the actual housing allowance

Enter the amount on the Housing Amount line on the worksheet.
 

• 2. Calculation of pension will be based on the Defined Benefit amount, plus the 3% Defined Contribution amount as illustrated on the Salary Worksheet.

F.  Additional Pastoral Reimbursements
1.  Travel: Travel provisions shall be made for all full-time pastors and student pastors, and shall be considered as part of the local church/charge budget under administrative expenses.   The local church/charge, after consultation with the pastor, shall select one of the following options to insure adequate travel provisions for its pastor while involved in church business.

Option 1:  The local church/charge shall rent or purchase a vehicle for the pastor, and shall be responsible for all ownership and operating costs of the vehicle.   Ownership costs shall include gasoline, oil, tires, maintenance and repair of the vehicle.   It shall be understood that the vehicle is to be available to the pastor at all times, with the cost of personal use being reimbursed at current Internal Revenue Service rates.

Option 2: The local church/charge shall pay its pastor an annual amount of at least 1,700 for ownership costs, and reimburse the pastor for operating costs at a minimum of 14 cents per mile, both payable at least monthly upon submission of travel vouchers.  The 1,700 will be considered as salary for tax purposes.

Option 3: The local church/charge shall reimburse its pastor for vouchered travel expenses at the IRS rate.

Travel expenses for pastors in less than full-time appointments shall be negotiated between the District Superintendent and the Pastor/Staff Relations Committee

2.  Continuing Education:
The United Methodist Church has made continuing education mandatory for every pastor.  Therefore, continuing education shall be provided for all full-time and part-time pastors under appointment.  It shall be accumulative and used only during the current assignment.  It shall be payable upon submission of vouchers.  It shall be payable at the minimum rate of full-time per year and part-time per year.

One of the greatest needs of the pastor is to continue education throughout the years of ministry.   Developing skills, learning new techniques, keeping abreast of what’s happening in the church – are all necessary to equip pastors for effective ministry. The time spent in continuing Education is not to be considered vacation time.  

G.  Charge Conference Action Relative to Pastor’s Tax Reports

• 1. Each pastor shall report the fair rental value of the parsonage as income for       Social Security purposes.   The fair rental value shall be negotiated by the pastor and the Pastor/Staff Relations Committee and approved by the Charge Conference.
• 2. Each charge is encouraged to designate, each year, at the Charge Conference, a portion of the pastor’s cash salary as parsonage exclusion for use as the pastor sees fit for purchase of furnishings for the charge-owned parsonage. 

H.  Other Considerations

• 1. Vacation AND TIME AWAY FROM THE PARISH:
• Vacation time shall be granted based on the conference year (July 1 to June 30) and negotiated with the Pastor/Staff Relations Committee.
• Full-time service:  minimum of four weeks vacation, which shall include four Sundays.
• Less than full-time pastors:  minimum of two weeks, which shall include two Sundays, plus two additional Sundays.
• Student Local Pastor Vacation shall be granted on the following basis:  minimum of two weeks, which shall include two Sundays, plus two additional Sundays. 
• Pulpit supply during vacation periods shall be arranged by the Committee on Staff Parish Relations and paid for by the local church.
• All Pastor/Staff Relations Committees shall encourage their pastors to take a minimum of one day off per week.
• Some involvement of pastors in ministries beyond the local church is expected as an aspect of our connectional ministry: e.g., evangelistic missions, camping programs, work camps, etc.   Such time is not to be considered as vacation.  However, the extent of such involvement is to be negotiated by pastors and Pastor/Staff Relations Committee.
• Pastor/Staff Relations Committees are encouraged to pay special attention to the recommendations of the Board of Ordained Ministry on Study Leave, Sabbatical Leaves and Short Term Educational Opportunities found on pages 40-42 of the 2000 Policies, Procedures and Guidelines

H.  Other Considerations (Cont.)

• Pulpit Supply:  Ordained pastors supplying a pulpit on a temporary basis shall receive at least:
• 50 per day in single church charge.
• 60 per day in a two church charge.
• 25 per church, per day, in a multiple church charge.
• Plus mileage reimbursement in each instance. 

3.  Health Insurance:
Health Insurance will continue to be paid for all full-time appointments, including   clergy couples, at the rate set by the Conference.  Each full-time pastor, and any
part-time pastors who are currently in the plan, will contribute 3% of their
base salary (See Line C. 1 on worksheet).  This contribution will be a payroll deduction by the local church which will then be used to offset the amount to be paid by the local church.