SECTION 1 – Resolutions
RESOLUTION I:
RESOLVED, that the 126th Convention of the Diocese of Newark adopts the following minimum salary
rates, effective January 1, 2001:
Minimum Salaries
|
Deacon
|
$23,000
|
|
Assisting Priest
|
24,550
|
|
Priest-in-charge
|
30,650
|
Supporting Information:
The Diocese of Newark has adopted a system of salary administration for clergy that includes minimum salary levels
for all full-time clergy serving parishes or missions in the Diocese. Each year, the Commission reviews these salary
levels and makes recommendations to Convention for such changes, if any, deemed appropriate. A history of the last
ten years follows:
| |
Deacon
|
Assisting Priest
|
Priest-in-charge
|
|
Effective 1/1/1991
|
$17,250
|
$18,400
|
$23,000
|
|
Effective 1/1/1992
|
17,950
|
19,125
|
23,925
|
|
Effective 1/1/1993
|
18,700
|
19,900
|
24,900
|
|
Effective 1/1/1994
|
19,350
|
20,600
|
25,775
|
|
Effective 1/1/1995
|
19,930
|
21,220
|
26,550
|
|
Effective 1/1/1996
|
20,330
|
21,650
|
27,100
|
|
Effective 1/1/1997
|
20,840
|
22,190
|
27,780
|
|
Effective 1/1/1998
|
21,470
|
22,850
|
28,600
|
|
Effective 1/1/1999
|
22,000
|
23,450
|
29,300
|
|
Effective 1/1/2000
|
22,550
|
24,040
|
30,040
|
|
Effective 1/1/2001
|
23,000
|
24,550
|
30,650
|
The Commission has reviewed economic and inflation projections for the next few years. In addition, the Commission
compared compensation ranges in the Diocese of Newark with those of our neighboring dioceses of Connecticut, Pennsylvania,
Long Island, New Jersey and New York. While inflation is expected to be quite low (in fact, some economists predict
modest deflation) in the next couple of years, median compensation in our diocese lags the median in nearby dioceses:
Connecticut ($58,602), Pennsylvania ($53,319), Long Island ($52,780), New Jersey (54,961), New York (52,312), Newark
(50,921). These analyses have led to the recommendation of a proposed 2.0% increase.
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RESOLUTION II:
RESOLVED, that the 126th Convention of the Diocese of Newark recommends the following scale, effective
January 1, 2001, for annual merit increases in salaries paid to clergy in the Diocese:
Merit Increase Scale
Outstanding 5.0%
Very Good 3.5%
Satisfactory 2.0%
Supporting Information:
For clergy continuing to serve the same congregation, this Diocese recommends an annual review of goals and performance
for clergy, congregations, vestries, and executive committees. Clergy salary should be increased on merit based
on this review in accordance with the merit increase scale. The Commission recommends that a true merit increase
would exceed the rate of inflation, reflecting the notion that the meritorious performer should be recognized and
not merely "kept even" with the economy.
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RESOLUTION III:
RESOLVED, that the 126th Convention of the Diocese of Newark establishes a minimum standard for
remuneration to supply clergy at a fixed rate per worship service plus the IRS-approved mileage rate for travel
to and from the church. For 2000, the IRS-approved rate is 32.5 cents per mile, an increase from the current rate
of 31 cents per mile. Remuneration standards shall be as follows:
Sunday services: $125 for one service plus $50 for each
additional service
Weekday service: $50 per service, without sermon
Supporting Information:
The recommended remuneration for supply clergy has not increased during the five years for which standards have
been set by convention. This resolution recommends an increase from the previous standard of $100 for one Sunday
service and $25 for additional services on Sunday and $40 for weekday services without sermon.
In any year in which the total payments to any one individual exceed $600, a 1099 tax form must be provided at
the end of the year, a copy of which is filed with the IRS. Pension assessments are due for any non-retired cleric
who is paid $200 a month or more for three consecutive months.
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RESOLUTION IV:
RESOLVED, that the 126th Convention of the Diocese of Newark recommends each congregation provide
a minimum annual allowance for continuing education of $500 for each full-time cleric and a proportionate amount
for those employed on a part-time basis.
Supporting Information:
The diocese has long recommended that congregations assist their clergy in finding and affording continuing education
opportunities. The recommended minimum allowance has remained at $300 for the past ten years. This suggested increase
to $500 recognizes that costs for such programs have increased over the years.
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SECTION 2 – SUMMARY OF CLERGY COMPENSATION POLICIES
Full Time Clergy – Including Full Time Interim Clergy
|
Benefit
|
Convention Action
|
Rector or Priest-in-charge
|
Assisting Priest
|
Deacon
|
| Cash Stipend |
Mandated - Minimum amounts |
1998 - $28,600
1999 - $29,300
2000 - $30,040 |
1998 - $22,850
1999 - $23,450
2000 - $24,040 |
1998 - $21,470
1999 - $22,000
2000 - $22,550 |
| Housing & Utilities |
Mandated |
Housing and utilities supplies or appropriate cash allowance provided. |
| Social Security Offset |
Recommended |
50% of estimated Self-Employment (SECA) tax. Refer to example for calculation. |
| Pension |
Mandated |
Assessment of 18% of Total Coompensation (Cash plus Housing and Utilities plus Social Security Offset). Paid quarterly
to Church Pension Fund. |
| Business Expenses |
Recommended |
$3,500 miniumu for reimbursement of allowable business expenses, including business use of personal car, administered
through an accountable plan. |
| Health Insurance |
Mandated |
Clergy choice from available plans. Rates vary by plan choice and coverage level. |
| Dental Insurance |
Mandated |
Rate varies by coverage level. |
| Life Insurance |
Mandated |
Provided as part of pension package. The amount is 2 times Total Compensation, with a minimum of $5,000 and a maximum
of $50,000. |
| Short-term Disability Insurance |
Recommended |
Rates vary by coverage and carrier. 70% of pay up to $1000/week should cost no more than $360 per year. This benefit
allows for pay to continue during times of temporary disability (maternity, heart disease, injury, cancer treatment
are common disability occurrences). |
| Continuing Education |
Recommended |
Minimum $500 annually. |
| Housing Equity |
Recommended |
5 - 10% of Total Compensation as tax-deferred set aside if cleric lives in church-owned housing. |
Notes: Tax-exempt housing allowance: a portion of each cleric's cash stipend may be designated by a Vestry or
Executive Committee as a "housing allowance" in accordance with the Internal Revenue Code. The designation
must be voted upon prior to payment and explicitly noted in the minutes of the meeting. The clergyperson is solely
responsible for tracking qualified housing expenditures and declaring any excess "housing allowance"
as income. The maximum amount of "housing allowance" that is excludable from taxable income is the lowest
of the following three amounts: the rental value of the house (fully furnished), the actual amount spent to provide
housing (including furnishings and utilities), or the amount designated in the vestry designation.
Part-Time Clergy - Including Part-Time Interim Clergy
|
Benefit
|
Convention Action |
All Part-time Clergy including Part-time Interim Clergy |
| Cash Stipend |
Mandated - Minimum amounts |
Based on portion of full time clergy cash stipend. For example, a half-time position would require ½ of
the minimum cash stipends listed above. |
| Housing & Utilities |
Mandated |
Housing supplied by parish or appropriate cash allowance provided. Interim clergy should receive an additional
payment to cover travel to and from their residence if they do not reside in church-provided housing. The amount
is taxable income and is provided at the current standard IRS rate. |
| Social Security Offset |
Recommended |
50% of estimated Self-Employment (SECA) tax. Refer to example for calculation. |
| Pension |
Mandated |
Assessment of 18% of Total Coompensation (Cash plus Housing and Utilities plus Social Security Offset). Paid quarterly
to Church Pension Fund. |
| Business Expenses |
Recommended |
Reimbursed as incurred, administered through an accountable plan. Subject to mutually agreed upon budgetary total. |
| Health Insurance |
Mandated |
Clergy choice from available plans. Parish pays percentage of full cost unless other coverage is provided. |
| Dental Insurance |
Mandated |
Parish pays percentage of full cost unless other coverage is provided. |
| Life Insurance |
Mandated |
Provided as part of pension package. The amount is 2 times Total Compensation, with a minimum of $5,000 and a maximum
of $50,000. |
| Short-term Disability Insurance |
Recommended |
Rates vary by coverage and carrier. 70% of pay up to $1000/week should cost no more than $360 per year. This benefit
allows for pay to continue during times of temporary disability (maternity, heart disease, injury, cancer treatment
are common disability occurrences). |
| Vacation |
Recommended |
Negotiable. Extent should be agreed upon in advance, recognizing that even part-time clergy need vacation. |
| Continuing Education |
Recommended |
Negotiable. Extent should be agreed upon in advance, recognizing that even part-time clergy need time for continuing
education. |
| Housing Equity |
|
Not applicable. |
As varying models for ministry evolve in this diocese, a number of congregations are employing clergy on a part-time
basis. The Commission has recommended guidelines to the diocesan deployment officer. A full-time clergyperson is
estimated to work approximately 50 hours in an average week. Compensation calculations for part-time clergy should
be based on this workweek average; for example, a half-time position would require 25 hours of work per week. Note
that clergy, whether part-time or full-time, are acknowledged to be "on-call" all of the time. Part-time
Interim Clergy who are not residing in church-supplied housing should receive an additional payment to cover travel
to and from their residence. This amount is taxable income and should be calculated using the IRS automobile rate
for the year (31 cents per mile from 4/1/99 to 12/31/99; 32.5 cents per mile effective 1/1/2000).
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SECTION 3 – HEALTH AND DENTAL INSURANCE RATES FOR 2000.
Health Insurance
All clergy have a choice of 4 plans. 2000 annual premium rates, payable to the Diocese in quarterly installments.
|
Insurer/Plan
|
Single
|
Two Person
|
Parent/Children
|
Family
|
| Prudential POS |
$4,490
|
$8,831
|
$8,038
|
$12,409
|
| Prudential HMO |
$3,385
|
$6,839
|
$5,526
|
$8,935
|
| CIGNA HMO |
$4,040
|
$6,347
|
n/a
|
$8,897
|
Dental Insurance
Current annual rates, payable semi-annually to the Diocese in January and July. Rates change 7/1/2000.
|
Insurer/Plan
|
Single
|
Two Person
|
Family (3 or more)
|
| Delta Dental |
$408.48
|
$658.20
|
$1,105.20
|
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SECTION 4 - EXAMPLES
Pension Assessment
I. Clergy receiving cash housing allowance:
| Salary |
$30,650
|
| Housing & Utility Allowance |
14,000
|
| Social Security Offset |
3,394
|
| Total Compensation |
$48,044
|
|
Pension Assessment = 18% of Total Compensation
(.18 x $48.044) = $8,648
|
II. Clergy in rectory or vicarage:
| Salary (a) |
$30,650 |
| Utility expense (b) |
3,000 |
| Social Security Offset (c) |
3,403 |
| Housing "value" |
11,116 (.30 x (a + b + c) |
| Total Compensation |
$48,169 |
|
Pension Assessment = 18% of Total Compensation
(.18 x $48,169) = $8,670
|
Social Security Offset
Clergy are considered employees for income tax purposes (compensation reported on W-2) but are taxed as self-employed
persons for Social Security purposes, called SECA tax. The Diocese of Newark recommends that clergy compensation
be enhanced by an amount equal to 50% of the clergy's estimated self-employment tax to correct this tax differential.
This compensation enhancement is considered taxable income, so the calculation is circular:
Step 1:
| Salary |
$30,650
|
| Utilities |
3,000
|
| Housing |
11,116
|
| Social Security Estimate |
*3,403
|
| Total Self-Employment Income |
$48,169
|
Step 2: Income Adjustment (subtract 7.65% of Total)
.0765 * $48,169 = $3,685
Step 3: Taxable self-employment income: $44,484
Step 4: $44,484 X 15.3% (full SECA tax) = $6,806
Step 5: $6,806 X 50% (Diocesan recommendation)= $3,403
If not close to original estimate, plug in a figure
between the two and start over at Step 1.
* A good estimate results from adding current salary, utilities and housing together and then multiplying by .076.
Summary of Examples
Overall cost of full-time clergy compensation and benefits package
| |
Church-owned Housing
|
Church ProvidesHousing Allowance |
| Salary |
$30,650
|
$30,040
|
| Social Security Offset |
3,403
|
3,304
|
| Housing Allowance |
N/A
|
14,000
|
| Business Expense Reimbursement |
3,500
|
3,500
|
| Education Allowance |
500
|
500
|
| Health Insurance (family) |
8,897
|
8,897
|
| Dental Insurance (family) |
1,105
|
1,105
|
| Pension Assessment |
8,670
|
8,897
|
| Housing Equity Allowance @ 5% |
2,402
|
N/A
|
| Utilities provided |
3,000
|
N/A
|
| Rectory Maintenance |
2,000
|
N/A
|
| Sub-total "cash cost" to congregation |
$64,487
|
$70,964
|
| |
|
|
| Estimated rental value of rectory |
$12,000
|
N/A
|
| Total "value" of salary and benefits to clergy |
$76,487
|
$70,964
|
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COMMITTEE MEMBERS
Submitted by the Standing Commission on Clergy Compensation:
| |
Office
|
Home
|
| John Snyder |
|
201- 652-8572
|
| Rev. Lauren Ackland |
973-377-0106
|
973- 377-0869
|
| Carlotta Budd |
973-822-3778
|
973-822-3649
|
| Rev. Canon Gervais Clarke |
973-676-8886
|
973-675-1643
|
| Linda Curtiss |
800-223-6602
|
201-963-6378
|
| Dale Gruner |
609-394-5281
|
908- 226-0695
|
| Rev. Paul Hunt |
973-430-9915
|
|
| Rev. Stephanie Wethered |
973-334-3655
|
973-335-5710
|
A. Gary Shilling, Consulting Economist
|
