Communications Department

April 10, 2013

 (Submitted by the Commission on Equitable Compensation)

Following are the proposed minimum salaries for the 2014 which represent a cost of living increase plus partial offset for the increase in payroll taxes due to the expiration of payroll tax cuts (A total of 3.5% with the Cost of Living increase as indicated by the Consumer Price Index for 2012 of 1.7%).

 Based on the recommended minimum of $38,760 and $ 35,060 respectively and the approval of the minimum amount by Conference action, the following maximum grant amounts would be permitted in accordance with ¶ 625.9 of the 2012 Discipline:

Minimum Cash Salary Grants are awarded for no more than three years, with the amount of the grant size decreasing with each successive year. The condition of the grant is that congregations will engage in a strategic plan to increase revenues and/or decrease expenses to balance their budgets and eliminate the need for this grant. Congregations are also expected to increase their participation in the Mission Share activity of the Annual Conference, with a goal of 100% participation. Grants are scheduled as follows:

Year 1: Award is up to 100% of the maximum grant size

Year 2: Award is up to 65% of the maximum grant size

Year 3: Award is up to 35% of the maximum grant size

Strategic Cash Salary Grants are awarded on a four-year decreasing basis. A strategic plan must accompany this application. In succeeding years, a progress report that speaks to the strategic plan submitted in the first year must accompany the application. Following is the schedule for Strategic Grants:

Year 1: Up to 100% of the maximum grant size

Year 2: Up to 75% of the maximum grant size

Year 3: Up to 50% of the maximum grant size

Year 4: Up to 25% of the maximum grant size

Missional Cash Salary Grants are also available for new congregations and those defined as missions. Please check the conference website for applications and detailed definitions.

Reimbursable Accounts
The Commission on Equitable Compensation in an effort to remain current with prevailing trends across the denomination, and in keeping with IRS regulations, proposes the following minimum amounts for Reimbursable Accounts (Professional Expenses, Continuing Education and Travel) for Full-Time Pastors in 2012 for a total in reimbursables of at least $2,950: (An increase of $50 over 2013).

Professional Expenses $700
Continuing Education $650
Travel $1,600

Considering that pastors in different parts of the Conference have different needs, the Commission recommends that these amounts be interchangeable.

COMPENSATION PACKAGE SPECIAL ARRANGEMENTS with MOU

In some instances and for very particular reasons, pastors and congregations make arrangements for compensation and benefits that are outside of the requirements outlined in this resolution. The Commission appreciates that such arrangements are warranted on occasion, and are in the best interest of the parties involved “provided that no member in good standing who is appointed to a pastoral charge is denied the minimum base compensation (2012 Discipline ¶ 625.9).” To maintain the integrity of the compensation and benefits system:

• The specifics of such arrangements, including explaining how the arrangement provides for at least minimum base compensation as approved by the Annual Conference be spelled out in a Memorandum of Understanding that limits the conditions to one year.

• The MOU shall be signed by the Pastor, the District Superintendent, and the SPRC Chair.

• The MOU shall be reviewed and renewed annually.

• It is provided in the MOU that such arrangements have no impact on compensation and benefits packages to be negotiated for future appointments.