1
CLERGY COMPENSATION COMMITTEE REPORT
PRESBYTERY OF HUDSON RIVER
WHEREAS the Committee on Ministry of the Presbytery of Hudson River is charged with the responsibility of reviewing terms of call and changes to terms of call for the Pastors of the churches of the Presbytery; and the Clergy Compensation Committee is charged with the task to review these terms of call for clergy and CLP members of Presbytery,
WHEREAS, the Clergy Compensation Committee has reviewed the current minimum terms of call for this Presbytery, collected and reviewed terms of call used in nearby Presbyteries, collected and reviewed certain demographic data from counties in the Presbytery, NYS Department of Labor Occupational Employment Survey data and information from the Board of Pensions PC(USA) and the Social Security Administration COLA index,
WHEREAS the compensation level for clergy in Hudson River Presbytery continues to be the lowest of all surrounding Presbyteries despite a recent review in April of 2005, in which the minimum cash salary was raised from $23,097 to $31,000, with subsequent COLA adjustments approved by Hudson River Presbytery,
NOW THEREFORE, The Clergy Compensation Committee makes the following recommendations for changes in the minimum terms of call for Pastors in this Presbytery and for determining the compensation package for newly called Pastors.
RECOMMENDATION NO. 1
The Clergy Compensation Committee recommends that the mandated minimum cash salary of all full time Pastors in the Presbytery be adjusted from its current 2008 figure of $33, 364.75 per annum to $34,700.00 per annum, effective January 1, 2009, for presently installed full time Pastors in this Presbytery and that the cash salary of part time Pastors is adjusted proportionately to the amount of time for which their services are contracted. It is recommended that the mandated minimum effective salary of all full time pastors ( defined as 50 hours per week) in the Presbytery be adjusted from its current 2008 figure of $43,373.00 per annum to $45,110.00 per annum for 2009.
EXAMPLE FOR FULL TIME INSTALLED PASTOR FOR 2009
CASH SALARY MINIMUM $34,700 based on a fiscal year of 1/1-12/31/2009.
ANNUAL COST OF LIVING INCREASE BASED ON THE CONSUMER PRICE INDEX FROM THE U.S. BUREAU OF LABOR STASTICS, July 2008. The recommended figure for 2009 is a 5.6% increase. The Clergy Compensation Committee recommends 4% for 2009 because mileage is already reimbursed at an IRS percentage increase.
HOUSING ALLOWANCE MANSE INCLUDING UTILITIES OR A CASH ALLOWANCE BASED ON THE FAIR MARKET RENTAL VALUE OF A TWO BEDROOM HOUSE OR APARTMENT IN THE AREA. If there is no Manse available, then a minimum effective salary of $45,110.00 for 2009.
SOCIAL SECURITY OFFSET 7.65% OF EFFECTIVE SALARY
MEDICAL, PENSION, D & DISABIL. DUES 31.5 %OF EFFECTIVE SALARY or BOP estimates.
VACATION 31 CALENDAR DAYS PER YEAR INCLUDING UP
TO 5 SUNDAYS
38 CALENDAR DAYS PER YEAR AFTER 10 YEARS SERVICE UP TO 6 SUNDAYS
AUTO EXPENSE REIMBURSABLE AT CURRENT IRS RATE BY VOUCHER. Minimum $1,500.00 per
Annum.
STUDY LEAVE 14 CALENDAR DAYS PLUS $1,000. FOR
EXPENSESES REIMBURSABLE BY VOUCHER.
THE PASTOR MAY ACCUMULATE UP TO SIX WEEKS AT THE OPTION OF THE CHURCH UP TO TWO SUNDAYS
PRESBYTERY LIFE INSURANCE $213. (50K DEATH BENEFIT)
MATERNITY/PATERNITY LEAVE PER PRESBYTERY POLICY
NEW PASTOR ORIENTATION TIME 3 DAYS EXPENSES REIMBURSED BY VOUCHER
SABBATICAL TIME 3 MONTHS EVERY 7 YEARS (OPTIONAL)
DEFERRED COMPENSATION OPTIONAL
PASTORAL EXPENSE REIMBURSEMENT OPTIONAL (BY VOUCHER IF PROVIDED)
RECOMMENDATION NO. 2
The Clergy Compensation Committee recommends that, in those churches where current full-time Pastors earn a cash salary less than $34,700.00 per annum, and an effective salary of $45,110.00 per annum that the churches, in conference with the Committee on Ministry of this Presbytery develop and implement a plan by which the current cash salary of the Pastor will be increased to the recommended minimum over a period of time; the annual COLA to be in addition to the needed adjustment in the cash salary on a per annum basis according to the percentage established annually by Presbytery. If this is not possible, our recommendation is that the congregation consider a part-time call for the pastor in negotiation with the Committee on Ministry.
RECOMMENDATION NO. 3
The Clergy Compensation Committee recommends the use of the most current teachers’ salaries to calculate the effective salary for pastors based on a county by county differential.
1. The Clergy Compensation Committee has reviewed the Hayes method for calculating clergy salary compensation for new calls to the Presbytery. After thorough consideration and discussion with COM personnel, use of this model has proven ineffective for this Presbytery. On the attached sheet, we are presenting a comparison of the most current teachers’ salaries for 2007/2008 with the latest updated 2008 Hayes method figures. We chose to use entry level and top range figures as a comparison, with a third column of average salaries in the region. We also are recommending a compensation discernment model based on regional salary needs, listed on the sheet as well. Though this is not a mandated requirement at this time, we strongly urge all congregations to ADOPT THESE FIGURES.
2. On the bottom of that page, our subcommittee recommends that with an M. Div degree, that
churches would consider adding 10% of the figures for a Masters degree (listed by county on the bottom of the page). This practice would be concomitant with state labor board practice for teachers who obtain Master’s degrees. The State ranges their increases between eight and twelve percent from those figures for Bachelor’s degrees.
3. Annual COLA increases from these figures would be in compliance with the annual percentage voted by Presbytery.
4. The Clergy Compensation Committee recommends these formulas for Stated Supply,
Temporary Supply and Interims (pro-rated on 50 hours per week as full time).
RATIONALE:
1. These figures reflect the cost of living in the counties in our Presbytery by Government statistic.
2. This method of calculating the effective salary will no longer be based on the Hayes method which is a corporate personnel model, but more on a comparative basis with like professionals in our Presbytery with Masters degrees.
RECOMMENDATION NO. 4
The Clergy Compensation Committee has received a recommendation from the CLP Committee and is recommending that CLP’s working full time (defined as 50 hours per week) receive a MINIMIUM of 75% of effective salaries of full-time ordained ministers as the suggested minimum salary plus the mandatory portions of the Terms of Call: 31 calendar days vacation per year up to 5 Sundays, IRS mileage allowances and $1,000.00 continuing education allowance with 2 weeks study leave being a minimum of 14 calendar days including up to 2 Sundays, pension and medical benefits. The CLP may accumulate up to six weeks at the option of the church. For CLP’s working less than 50 hours a week, salary and continuing education monetary allowances would be proportional to hours for which the person is contracted. The study leave time and the vacation time would be reduced. CLP’s working less than 20 hours per week would not be entitled to Pension and Medical benefits, but to all others terms. It is recommended that the minimum terms of call be revised to reflect the above recommendations and to clarify certain items therein as follows:
EXAMPLE FOR A COMMISSIONED LAY PASTOR
CASH SALARY MINIMUM $26,025 for 2009.
ANNUAL COST OF LIVING INCREASE Based on the Bureau of Labor Statistics index as voted by Presbytery annually.
HOUSING ALLOWANCE MANSE INCLUDING UTILITIES OR A CASH ALLOWANCE BASED ON THE FAIR MARKET RENTAL CALCULATED FROM THE VALUE OF A TWO BEDROOM HOUSE OR APARTMENT IN THE AREA. If there is no Manse available, then a minimum effective salary of $33, 832.00 for 2009.
SOCIAL SECURITY OFFSET 7.65% OF EFFECTIVE SALARY
PENSION DUES 31 % OF EFFECTIVE SALARY or by BOP estimates
VACATION 31 CALENDAR DAYS PER YEAR INCLUDING UP
TO 5 SUNDAYS
38 CALENDAR DAYS PER YEAR AFTER 10 YEARS SERVICE UP TO 6 SUNDAYS
AUTO EXPENSE REIMBURSABLE AT CURRENT IRS RATE BY VOUCHER. Minimum $1,500.00 per
Annum.
STUDY LEAVE 14 CALENDAR DAYS PLUS $1,000. FOR
EXPENSESES REIMBURSABLE BY VOUCHER.
THE PASTOR MAY ACCUMULATE UP TO SIX WEEKS AT THE OPTION OF THE CHURCH UP TO 2 SUNDAYS.
PRESBYTERY LIFE INSURANCE $213. (50K DEATH BENEFIT)
MATERNITY/PATERNITY LEAVE PER PRESBYTERY POLICY
NEW PASTOR ORIENTATION TIME 3 DAYS EXPENSES REIMBURSED BY VOUCHER
SABBATICAL TIME 3 MONTHS EVERY 7 YEARS (OPTIONAL)
DEFERRED COMPENSATION OPTIONAL
PASTORAL EXPENSE REIMBURSEMENT OPTIONAL (BY VOUCHER IF PROVIDED)
If a manse is NOT provided the housing allowance is based on 30 % of the cash salary plus utilities. Social security offset is based on effective salary. If no manse, the housing allowance is based on the fair rental value of the manse determined annually through appropriate means.
Rationale:
a. Cash salary has been discussed herein and requires no further discussion.
b. The annual cost of living adjustment is that used by this Presbytery and applies the same to
CLP’s as pastors.
c. The minimum cash allowance under housing allowance is recommended to be
based on the fair rental value of a two bedroom apartment or house in the area of
employment as a starting place in determining the cash allowance. The key word is
minimum. This is the same as for installed pastors.
d. Pension dues are updated to reflect the new Board of Pensions percentage. If the CLP
is retired, then there needs to be discussion as to Pension dues with the BOP.
e. It is recommended that vacation be increased to 38 days after ten years in
recognition of service by the CLP the same as installed pastors.
g. Mileage reimbursement is the same figure set by the Internal Revenue Service for pastors.
h. It is recommended that up to six weeks of study leave may be accumulated at the option of
the church, the same as for pastors.
i. There is no change in the Presbytery life insurance.
j. Maternity/paternity/sabbatical time has been added to reflect the policy of Presbytery.
k. New Pastor Orientation time has been added to emphasize the orientation and
to provide that time which is needed to attend.
l. Deferred Compensation has been added as optional so people are aware that it is an option
and not a mandatory item.
m. Pastoral Expense has been added as optional so people are aware that it is optional and
not mandatory.
RECOMMENDATION NO. 5
The Clergy Compensation subcommittee recommends a change in the form to be submitted to congregations for salary review for clergy. (see attached) This form has been re-crafted in conjunction with changes recommended by the BOP with its new form ENR-111. If anyone needs additional training in how to fill out this new form, please contact the Rev. Dave Mason, 845-562-0954, or Elder Ed Roque Garcia, 845-735-6013. E-mails, , .
Submitted by
The Clergy Compensation Committee
September, 2008
DOCUMENTS
COMPARISON OF TEACHERS SALARIES TO RANGES FROM THE CURRENT HAYES METHOD.
THESE FIGURES ARE FROM THE STATE LABOR BOARD STATISTICS AND ARE THE MOST CURRENT.
HAYES LEVEL FIVE IS A RANGE WITH MORE THAN BEGINNING EXPERIENCE WHICH MOST OF OUR CLERGY IN HUDSON VALLEY HAVE, AND IS BEING USED AS A COMPARISON SET OF FIGURES.
HAYES RANGE 5 CRITERIA:
1. LEVEL 5 IS FOR AN ADVANCED SET OF SKILLS WITH 3-5 YEARS EXPERIENCE WITH CONTINUING EDUCATION CREDITS, ALSO A GRADUATE DEGREE IN COUNSELING IF APPROPRIATE FOR THE CALL.
2. PROBLEM SOLVING CRITERIA WOULD BE RANGED FROM HIGHLY COMPLEX SITUATIONS, A MULTI-LINGUAL CONGREGATION, MULTI-RACIAL OR HIGH RATE OF TURN OVER IN THE COMMUNITY.
Teachers 2007-8 2008 Hayes Level 5
County 5th 25th Average Minimum Mid-point Maximum
Dutchess 43,851 52,651 64,782 47,824 59,782 60,044
Orange 43,136 53,000 64,621 47,824 59,782 60,044
Putnam 50,641 67,598 81,407 47,824 59,782 60,044
Sullivan 40,050 48,165 60,592 47,824 59,782 60,044
Ulster 46,223 55,699 67,813 47,824 59,782 60,044
Rockland 47,537 61,640 77,790 68,805 85,399 102,478
Westchester 53,874 68,769 84,513 68,805 85,399 102,478
With M. Div (10%)
County 5th 25th Average
Dutchess 48,236 57,916 71,260
Orange 47,450 58,300 71,083
Putnam 55,705 74,358 89,548
Sullivan 44,055 52,982 66,651
Ulster 50,845 61,269 74,594
Rockland 52,291 67,804 85,569
Westchester 59,261 75,646 92,964
PASTORAL TERMS OF CALL WORKSHEET AND REPORT
Period Beginning Day___Month____Year____ Period Ending Day_______Month_____Year_____
(Effective date normally is January 1st of the current year.) This report is required annually of all churches in January and is normally based on the Annual Meeting of the Congregation at which it is approved. The Terms of Call Report should be forwarded immediately, but no more than five (5) days following the Congregational Meeting, to Presbytery for approval. Please note: The Minister’s signature is also required as well as the Clerk of Session’s.Due date is March 1. Please do not use any other form in order to simplify our records.
Church name:_________________________ Location (city):______________________________________
Minister’s name(s)_________________________________________________________________________
Terms of Call/Employment for:________________________________________________________________
Date of Installation in current position: ________________ Date of Ordination: _________________________
Pastor___ Assoc. Pastor____ Stated Supply___ Interim___ Temporary___ Designated___ Certified Christian Educator___Commissioned Lay Pastor______
Full-time___ Part-time___ If Part-time, # of hours weekly_________
If this is an annual update of terms, has a recent performance appraisal and a formal compensation review been completed? Yes ___ If yes, on what date? __________ No _____
If no, please explain_________________________________________________________________________
Is maternity/paternity/sabbatical leave anticipated in current year yes/no (defin. and pol. available HRP)
Prior Year (2008) New (2009)
Compensation included in Effective Salary Terms Terms
1. Annual Cash Salary with min. 4.0% increase $______________ $______________
(inc. ee contrib.. to 403b 9 plans, tax sheltered annuities ,unvoucherd book, car, study allow., vacation pay, overtime)
minimum: 2008 $33,364.75 2009 $34,700.00
2. Housing All. (ministers who rent/own home) $______________ $______________
( Minimum $10,410. for 2009 which equals 30%. )
3. Employer contributions to 403b9 plans, annuities $ ______________ $ ______________
(eff. 1/1/08 matching contributions to the BOP Retirement savings plan should NOT be included)