2021 Budget Inputs

2021 Budget Inputs


Ross Williams

10/5/2020

Dear Treasurers and Finance Chairs (copy to pastors),

You will most likely be working on your 2021 budgets soon.  To assist you, listed below are some inputs from the Conference:

Clergy Healthcare: The Uniform Rate for HealthFlex will remain at $18,240.00.  Since clergy will have six medical plans and three dental plans to choose from in 2021, the rate charged to clergy will vary based upon which plans they choose.  Clergy are provided an annual "allowance" to spend on health care.  In some cases, clergy may chose plans that are less than their allowance, and in that case they will not be billed a monthly premium.  Any "extra" funds over the allowance will be deposited into the clergy person's 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.  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: 2021 preliminary apportionments are available at: www.nyac.com/apportionments.  These apportionments are based upon the proposed 2021 budget to be approved at our upcoming Annual Conference session.

Workers Compensation:   We suggest you use the amount of the 2020 charge and increase it by 5% to estimate your 2021 charge.  Rates in both CT and NY have seen increases lately.  

Professional Reimbursement Account:  The minimum professional reimbursement account for a pastor serving full-time is proposed to remain at $5,850.00 (subject to approval at our upcoming Annual Conference session).  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 proposed to same the same in 2021 as it was in 2020 (subject to approval at our upcoming Annual Conference session)  The 2020 schedule is available at the link below.  Once the 2021 schedule has been approved, it will be posted on our website. 

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