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2022 Compensation and Guidelines for Rostered Ministers

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2022 Compensation and Guidelines for Rostered Ministers Compensation and Guidelines for Ministers of Word and Sacrament & Ministers of Word and Service 2022 Page 1 TABLE OF CONTENTS – to be updated after final approval Page Recommendations for Conversation Ministers of Word and Sacrament A. Minimum Salary Guidelines B. Housing C. Social Security and Workers’ Compensation D. ELCA Pension and Other Benefits E. Professional Expenses F. Sabbath and Time Off Appendix A. Guidelines for the Provision and Use of Parsonages B. Minister’s Reimbursement C. First Call Theological Education D. Sabbatical Recommendations E. Moving Policy F. Temporary and Supply Ministers Worksheets Compensation Worksheet for Ministers of Word and Sacrament Page 2 Compensation Guidelines for Ministers of Word & Sacrament, Ministers of Word & Service and Lay Leaders Recommendations for Conversation Mutual Ministry—More than a Once-A-Year Conversation The South Dakota Synod encourages congregations to form a Mutual Ministry Committee for each of its Ministers of Word and Sacrament and Ministers of Word and Service. The function of the Mutual Ministry Committee is to provide a space for conversation between rostered ministers and congregational leaders to grow together in ministry. Please refer to Appendix G: Mutual Ministry Committee – More than a Once-a-Year Conversation. The Compensation Review Task Force Rostered Ministers are professionals by education, qualification, and function. Appropriate compensation for rostered ministers will be parallel to persons who hold similar positions of responsibility in the community: superintendent of schools, principal, hospital administrator, bank president/manager etc. The salary scale provided in this document represents the minimum compensation for full time leadership. It is a starting point for salary discussions. The base salary is just one component of the rostered minister’s total compensation. Consideration must be given to housing, Social Security/Medicare, pension, health insurance, disability and life insurance. Frequently, these benefits are an additional 90-125% of the base salary. Other factors which need to be kept in mind are the economics of the parish, the degree of administrative responsibility assigned to the rostered minister, geographic location of the parish, non-parish experience of the rostered minister, the additional education of the rostered minister, and the effectiveness of the rostered minister . Please refer to Appendix H: Compensation Review Task Force Page 3 Ministers of Word & Sacrament and Ministers of Word & Service A. Base Salary Guideline This chart represents the guidelines recommended for single point congregations. These figures represent base salary only and do not include housing and utilities, social security, pension, medical insurance, or any other benefits. Page 4 Years of Year of New in 2022: Ministers of Word and Experience Ordination Low High Service (Deacons) should be paid Graduate 2022 $ 37,559 $ 39,095 according to these guidelines. 1 2021 $ 38,235 $ 39,781 2 2020 $ 38,909 $ 40,465 This guideline chart for 2022 includes a 1.5% 3 2019 $ 39,580 $ 41,145 increase in the base salary for new graduates. 4 2018 $ 40,248 $ 41,822 5 2017 $ 40,912 $ 42,493 6 2016 $ 41,571 $ 43,160 Additional Considerations: 7 2015 $ 42,226 $ 43,821 8 2014 $ 42,875 $ 44,476 1. Rostered ministers with advanced 9 2013 $ 43,519 $ 45,123 10 2012 $ 44,155 $ 45,763 degrees: i.e., DMin, PhD, STM, or 11 2011 $ 44,784 $ 46,395 other degrees the congregation deems 12 2010 $ 45,406 $ 47,019 germane to their ministry, add $1000. 13 2009 $ 46,019 $ 47,633 14 2008 $ 46,623 $ 48,237 2. Multi-point Parishes: If a rostered 15 2007 $ 47,217 $ 48,831 minister serves two congregations, 16 2006 $ 47,801 $ 49,414 add $2000; if three, add $3000; etc. 17 2005 $ 48,375 $ 49,985 18 2004 $ 48,937 $ 50,545 3. Large Congregations: For 19 2003 $ 49,488 $ 51,091 congregations over 600 baptized, add 20 2002 $ 50,026 $ 51,624 $1500. Administrative rostered 21 2001 $ 50,551 $ 52,144 ministers serving congregations of 22 2000 $ 51,063 $ 52,649 23 1999 $ 51,561 $ 53,139 over 900 members and supervising 24 1998 $ 52,044 $ 53,614 staff, add $3000. 25 1997 $ 52,513 $ 54,073 26 1996 $ 52,966 $ 54,516 4. Part-time Ministers of Word and 27 1995 $ 53,403 $ 54,942 Sacrament will have consideration for 28 1994 $ 53,823 $ 55,350 salary and benefits corresponding to 29 1993 $ 54,227 $ 55,741 the duties, amount, and length of time 30 1992 $ 54,613 $ 56,114 of service. 31 1991 $ 54,982 $ 56,468 32 1990 $ 55,332 $ 56,803 33 1989 $ 55,664 $ 57,119 5. **Add $500 per year over 40 years. 34 1988 $ 55,977 $ 57,415 35 1987 $ 56,271 $ 57,692 36 1986 $ 56,546 $ 57,947 37 1985 $ 56,800 $ 58,183 38 1984 $ 57,034 $ 58,397 39 1983 $ 57,248 $ 58,591 40 1982 $ 57,442 $ 58,763 B. Housing A parsonage or minimum housing allowance shall be provided for all Ministers of Word and Sacrament under call. Ministers of Word and Service (Deacons) may be subject to different IRS rules and guidelines. Each congregation served by a Deacon should check with a tax professional regarding use of a parsonage or housing allowance. Page 5 1. When a Parsonage is Provided The congregation and the rostered minister shall work to have a common understanding of the recommendations found in Appendix A: Guidelines for the Provision and Use of Parsonages. a. Value of Parsonage & Utilities: Portico Benefit Services values congregation provided parsonage at 30% of Base Salary. This value is added to the Base Salary and Social Security Contribution to determine the Defined Compensation that is used to calculate the pension, health insurance, and other benefit amounts. b. Housing Equity Allowance: The congregation should share with the rostered minister a part of the equity being gained on the parsonage. A minimum of $125 per month ($1500 per year) should be placed in a fund agreed upon by the congregational council and the rostered minister. c. Furnishing Allowance: Rostered ministers may receive part of their base salary as a furnishing allowance. This allowance must be designated by the congregational council prior to the beginning of the year. A sample motion: Upon motion duly made and seconded, it was voted to designate $____________ of the total cash salary for _______ (year) to be paid to Rev. ________________ as a furnishing allowance in response to rostered minister’s request and acknowledgement that the allowance so designated will not exceed actual expenses for their home including utilities, upkeep and repairs, insurance, and furnishings. Therefore, cash salary shall be $______________ and furnishings allowance shall be $_____________. d. Rostered Minister’s Death: In the event of a rostered minister’s death, the rostered minister’s spouse/family shall be allowed to remain in the parsonage for six months or until the end of the school year (if there are children in the family) whichever is longer. Congregations are encouraged to research the Fair Market Rental Value of the parsonage. Specific information for your area can be found online or through a local realtor. Page 6 2. When a Parsonage is NOT provided a. Calculating Housing Allowance when a Parsonage is NOT provided When a housing allowance is provided instead of a parsonage, the dollar amount of the allowance will be negotiated based upon fair rental value of appropriate housing in your community plus utilities. Each individual situation and community housing market must ultimately determine the appropriate housing allowance designation. The SD Synod recommends 30-50% of base salary to reach the appropriate allowance. 30% 50% 1. Base Salary (no additional considerations) $40,000 $40,000 2. Housing Allowance (___% of Base Salary) $12,000 $20,000 3. Social Security Allowance (7.65% of 1+2) $ 3,978 $ 4,590 Defined Compensation (Total of 1+2+3) $55,978 $64,590 If a rostered minister receives additional considerations for congregation size, supervisory leadership, or education, the additional considerations are not included in calculating the housing allowance but are added later: 30% 50% 1. Base Salary (no additional considerations) $40,000 $40,000 2. Housing Allowance (____% of Base Salary) $12,000 $20,000 3. *Additional Considerations (ie.900+ members) $ 3,000 $ 3,000 4. Social Security Allowance (7.65% of 1+2+3) $ 4,208 $ 4,820 Defined Compensation (Total of 1+2+3+4) $59,208 $67,820 b. Designating the Allowance The actual amount to be designated is determined by the rostered minister. Questions they might ask include: How much were my actual expenses in the last year? Are there any special projects I am planning to work on next year? Are there any purchases I am planning? The congregation must designate a percentage of the total base salary (salary + housing allowance) as a “housing and utility allowance.” THIS MUST BE DESIGNATED PRIOR TO THE START OF A NEW CALL AND AGAIN PRIOR TO THE BEGINNING OF EACH FISCAL YEAR. The amount of this allowance, which generally should not exceed the actual expenses paid by the rostered minister for mortgage payments, utilities, upkeep and repairs, taxes, insurance, and furnishings, may be excluded from the rostered minister’s taxable income. The rostered minister will however be required to pay the Social Security Tax (15.3%) on all salary including that amount designated as housing allowance. The congregation council would use this language when designating the housing allowance: Upon motion duly made and seconded, it was voted to designate $ of the 2015 total cash salary of $ to be paid to as a housing allowance in response to rostered minister’s request and acknowledgement that the allowance so designated will not exceed actual expenses for their home including mortgage payments, utilities, upkeep and repairs, taxes, insurance, and furnishings.
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