2020 Budget Inputs

2020 Budget Inputs


Ross Williams

9/14/2019

Dear Treasurers and Finance Chairs (copy to pastors),

You will most likely be working on your 2020 budgets soon.  To assist you, listed below are some inputs from the Conference:

Clergy Healthcare: The church's share of the Uniform Rate for HealthFlex will be $18,240.00.  Since clergy will have six medical plans and three dental plans to choose from in 2020, the rate for each clergy person will vary based upon which plans they choose.  Clergy will be given an annual "allowance" to spend on health care.  In some cases, clergy may chose plans that are less than their allowance, so they will not have a HealthFlex monthly premium payment.  "Extra" funds over the allowance will be deposited into an HRA or HSA.

Clergy Pension:  The cost will remain 11.8% of total compensation, which is defined as base salary plus either: a) 25% of salary for a parsonage or b) the actual amount of a housing allowance for those not provided a parsonage plus the value of moving expenses paid on behalf of clergy.  For churches with Episcopal appointments of 75% or greater these amounts will be billed to you by the Conference.  For churches with Episcopal appointments of less than 75% these amounts should be remitted directly by the church to Wespath to be deposited into a pastor’s United Methodist Personal Investment Plan (UMPIP) account.  If the pastor does not elect to contribute at least 1% of salary, the church will be responsible for remitting only 10.8% vs. 11.8%.  If you need help setting up the relationship with Wespath (for those clergy serving less than 75%) please contact Sally Truglia at struglia@nyac.com.

Clergy CPP: (Death & Disability) for 100% appointments only:  The cost will remain at 3.0% of total compensation as defined above.

Apportionments: 2020 Apportionments are available at: www.nyac.com/apportionments

Workers Compensation:   We suggest you use the amount of the 2019 charge and increase it by 3-5% to estimate your 2020 charge.  

Professional Reimbursement Account:  The minimum professional reimbursement account for a pastor serving full-time has increased to $5,850.00.  Churches may elect to provide greater amounts.  Pastors serving in part-time appointments are to receive a minimum of $1,463.00 for each ¼ time increment.  Pastors serving multi-church charges are to receive an additional $750.00 in professional reimbursement for each church after the first church on their circuit, whether serving in a part-time or full-time appointment.

Minimum Salary Schedule:  The schedule of minimum salaries to be paid to all clergy under Episcopal appointment is available at: 

https://www.nyac.com/files/websites/www/2019-Commission-on-Equitable-Compensation-Report-Approved-in-Plenary.pdf

Please let me know if you have any other questions.

Sincerely,

Ross