Clergy Benefits & New Appointments
Clergy Benefits & New Appointments
As we celebrate a very successful Annual Conference and prepare for new appointments, it's time to remind everyone about clergy benefits.
Comprehensive Protection Plan: Clergy who serve appointments at 100% are automatically enrolled in CPP, which provides long term disability insurance and death benefits. Churches are billed 3% of the total compensation for CPP. Total compensation is defined as salary plus either a) 25% of salary for clergy who are provided a parsonage or b) the actual amount of the housing allowance.
Clergy serving at least 75% are automatically enrolled in the Clergy Retirement Security Plan (CRSP.) Churches will receive a invoice from the conference each month for CRSP, which is calculated by multiplying the pastor's total compensation by 11.8%.
Clergy serving less than 75% are not eligible to participate in CRSP, however churches should contribute to their clergy's personal United Methodist Personal Investment Plan (UMPIP) account. Each church (with a part-time pastor) should contribute either 10.8% or 11.8% of compensation to their pastor's pension account. The level of contribution is based on the voluntary contribution by the pastor of 1% that would be matched by the church. If clergy elect to contribute at least 1% of their compensation, the church contribution increases to 11.8%.
To maximize retirement benefits, all clergy (regardless of their appointment percentage) should contribute to UMPIP. UMPIP is a retirement plan administered by Wespath Benefits and Investments and is designed to provide one piece of your overall retirement portfolio. Your church must be a plan sponsor for pastors to contribute. Luckily, most NYAC churches are sponsors, but I can assist any church treasurer in completing and processing the forms with Wespath.
UMPIP elections do not follow clergy to their new church appointment. Clergy who receive a new appointment are required to complete a new UMPIP contribution form (attached) and give it to the church treasurer for processing. Doing so before the first paycheck is important to preserve continuity. There are three contribution options: Before Tax, After Tax and Roth contribution. Pastors can enroll at anytime throughout the year and can change their contribution election at any time. Clergy not currently enrolled or contributing, should give me a call to get started.
HealthFlex is the group medical insurance sponsored by the Conference for clergy serving at least 75%. Churches will receive a monthly invoice from the conference in the amount of $1,377 for their clergy's health insurance. Pastors will also receive an invoice for their portion of the HealthFlex uniform rate. Many of our pastors also contribute to a Flexible Spending Account or a Health Savings Account. Pastors should notify their treasurers before their first paycheck if they have elected this benefit since these are pre-tax payroll deductions and they will be billed to the church.
Treasurers should visit: http://www.nyac.com/section125plans which outlines the steps required by federal law to allow pre-tax deductions from a clergy's paycheck.
If you have any questions or concerns about your pastors' benefits or your benefit statements, please call or email me, or Jasmine Albert, firstname.lastname@example.org our Billing Coordinator.
One final note: The Conference office will be closed on Fridays during the months of July and August.
Have a wonderful summer!