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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 2011 figure of $35,185 per annum to
$35,890.00 per annum, effective January 1, 2012, 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 2011 figure of $45,740.00 per annum to $46,657.00 per annum for 2012
EXAMPLE FOR FULL TIME INSTALLED PASTOR FOR 2012
CASH SALARY
MINIMUM $35,890 based on a fiscal year of 1/112/31/2012.
ANNUAL COST OF LIVING INCREASE
BASED ON THE CONSUMER PRICE INDEX
FROM THE U.S. BUREAU OF LABOR STASTICS,
July 2012 The recommended figure for 2012 is a
3.6% increase. The Clergy Compensation Committee
recommends 2% for 2012 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
$46,657.00 for 2012.
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SOCIAL SECURITY OFFSET
7.65% OF EFFECTIVE SALARY
MEDICAL, PENSION, D & DISABIL. DUES
32.25 % OF EFFECTIVE SALARY.
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 $2,000.00 per
Annum.
STUDY LEAVE
14 CALENDAR DAYS PLUS $1,000. FOR
EXPENSES REIMBURSABLE BY VOUCHER.
THE PASTOR MAY ACCUMULATE UP TO SIX
WEEKS AT THE OPTION OF THE CHURCH UP TO
TWO SUNDAYS
PRESBYTERY LIFE INSURANCE
$204 (50K DEATH BENEFIT)
MATERNITY/PATERNITY LEAVE
PER PRESBYTERY POLICY
NEW PASTOR ORIENTATION TIME
SABBATICAL TIME
3 DAYS EXPENSES
REIMBURSED BY VOUCHER
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 $35,890.00 per annum, and an effective salary of $46,657.00
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 parttime 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
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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 $26,917 for 2012
ANNUAL COST OF LIVING INCREASE
Based on the Bureau of Labor Statistics index as
voted by Presbytery annually.
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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 $34,993.00 for 2012.
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 $2,000.00 per
Annum.
STUDY LEAVE
14 CALENDAR DAYS PLUS $1,000. FOR
EXPENSES REIMBURSABLE BY VOUCHER.
THE PASTOR MAY ACCUMULATE UP TO SIX
WEEKS AT THE OPTION OF THE CHURCH UP TO
2 SUNDAYS.
PRESBYTERY LIFE INSURANCE
$204. (50K DEATH BENEFIT)
MATERNITY/PATERNITY LEAVE
PER PRESBYTERY POLICY
NEW PASTOR ORIENTATION TIME
SABBATICAL TIME
3 DAYS EXPENSES
REIMBURSED BY VOUCHER
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.
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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 og
service by the CLP the same as installed pastors.
f) Mileage reimbursement is the same figure set by the Internal Revenue Service for pastors.
g) 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.
h) There is no change in the Presbytery life insurance.
i) Maternity/paternity/sabbatical time has been added to reflect the policy of Presbytery.
j) New Pastor Orientation time has been added to emphasize the orientation and to provide that
time which is needed to attend.
k) Deferred Compensation has been added as optional so people are aware that it is an option
and not a mandatory item.
l) 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, 845-5620954; masondbd@minister.com or Elder Ed Roque Garcia, 845-735-6013; garcia6013@aol.com.
Submitted by
The Clergy Compensation Committee
September, 2008
Dates and dollar amounts updated for 2012 on 6/18/2012
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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
County
2008 Hayes Level 5
5th
43,851
43,136
50,641
40,050
46,223
25th
52,651
53,000
67,598
48,165
55,699
Average
64,782
64,621
81,407
60,592
67,813
Rockland
47,537
Westchester 53,874
61,640
68,769
77,790
84,513
Dutchess
Orange
Putnam
Sullivan
Ulster
County
Dutchess
Orange
Putnam
Sullivan
Ulster
With M. Div (10%)
5th
48,236
47,450
55,705
44,055
50,845
Rockland
52,291
Westchester 59,261
25th
57,916
58,300
74,358
52,982
61,269
Average
71,260
71,083
89,548
66,651
74,594
67,804
75,646
85,569
92,964
Minimum
47,824
47,824
47,824
47,824
47,824
Mid-point
59,782
59,782
59,782
59,782
59,782
Maximum
60,044
60,044
60,044
60,044
60,044
68,805
68,805
85,399
85,399
102,478
102,478
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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)
Compensation included in Effective Salary
1.
Annual Cash Salary with min. 4.0% increase
Prior Year (2008)
Terms
$______________
New (2009)
Terms
$______________
(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)
4.
Bonuses (will be included for the current year only $_______________
Year in which bonus is paid________________
$_______________
5.Other allowances (including copayment, medical, furnishings and utility allow. and reimbursements of
SECA in excess of 50%) NO VOUCHERED EXPENSE $________________ $_________________
6. MANSE amount (must be at least 30% of lines 1-5)
$_______________
$_________________
7.Total Effective Salary-Sum of lines 1-6
$________________ $_________________
8.Benefit Plan Dues (For 2009, annualized at 31.5% of line 7) $__________
$ _________________
(Medical 19.5%, Pension, 11%, D and Disability 1%)
9.SECA Allowance 7.65 % (of 1 and 2)
$________________ $_________________
The minimum increase for cash+housing+ utilities for 2009 is _________.
The total SECA tax for the year 2009 is 15.3%. Churches are required to give an allowance up to one half
of the total tax, i.e. 7.65% to the clergy. This is taxable income to the employee and subject to SECA, but
payment up to 50% of the Pastor’s total SECA obligation is exempt from Pension and Benefit dues. It is
therefore not included in Total Effective Salary, which is the basis for dues calculations. Any
allowance in excess of 50% of the SECA obligation is both taxable and included in Total Effective
Salary. Only that part of the SECA allowance above 50% would go on line 5.
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PASTORAL TERMS OF CALL WORKSHEET AND REPORT
Period Beginning Day___Month____Year____ Period Ending Day_______Month_____Year_____
Items NOT NORMALLY INCLUDED in Effective Salary or Taxable Income
Accountable reimbursement plan (supported business expenses)
2008
2009
10.a. Continuing education (minimum $1000 for 2009) $_______________ $__________________
b.
Automobile exp. (min. $1500. reim. .585 cents
$______________
$__________________
c.
Business and professional expenses
$ _______________ $__________________
d.
Utilities paid by church
$________________ $__________________
e.
Presbytery Group Life Insurance
$
213
$
213
Total 10 a, b, c, d &e
$________________ $__________________
Church’s TOTAL cost (Items 7, 8, 9, & 10)
$________________ $__________________
(Out of pocket cost less than total cost if manse provided on line 6)
Other Items to be covered by Terms of Call
12.
Please indicate the amount of Vacation Time (minimum 31 calendar days including up to 5 Sundays)
Weeks ___________ Sundays__________
13.
Study Leave (minimum 14 calendar days, including up to 2 Sundays)
Weeks ___________ Sundays__________
14.
Relocation Allowance, if any? (For new call only: approx. $ figure)
$__________________
(Always get three movers to bid.)
15.
Is there a Shared Equity arrangement? If so, details______________________________________
11.
Reminder: Annualized figures for Effective Salary on line 7 should be in agreement with those reported to the
Presbyterian Pension Board on form ENR-111.
I confirm that the Terms of Call/Employment was approved by a vote of the Congregation on
____________________ and the figures as shown above have been entered into the minutes of that
meeting.
_________________________________
Minister
______________________
Date
_________________________________
Clerk of Session
______________________
Date
Return one copy to the Presbytery office NO MORE THAN FIVE (5) DAYS AFTER THE MEETING
OF THE CONGREGATION at which the Terms were approved. A copy should also be furnished to the
individual. Please submit no later than March 1, 2009.
Send to:
TERMS OF CALL/EMPLOYMENT
Committee on Ministry
Hudson River Presbytery
655 Scarborough Road
Scarborough, NY 10510
Please see page 3 for instructions covering pages 1 & 2.
TERMS OF CALL: Worksheet & Report
Period Beginning Day___Month____Year____ Period Ending Day_______Month_____Year_____
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COMPENSATION INCLUDED IN EFFECTIVE SALARY
Line 1: Annual cash salary- To meet Hudson River Presbytery salary requirements, Cash Salary will include Base
Salary plus Other Direct Payments such as Life Insurance Premiums. For 2009, the minimum full-time salary has been set
by the Presbytery at $34,700.00 for 2009.
Line 2: Housing Allowance- Amount designated annually by the Session in advance of payment. Includes an allowance
for UTILITIES. The minimum housing allowance is 30% of line 1, which is $10,410 for 2009.
Line 5: Furnishing Allowances paid to ministers should be included on this line. Manse utilities should be in the name of
the church and paid directly by the church and are NOT included in the minister’s Effective Salary.
Line 3: Deferred Compensation includes tax-sheltered annuities, 403(b) plans, Keogh and Retirement Savings plans,
housing equity allowances, and other forms of funded or unfunded deferred compensation agreements.
Line 4,5: Bonuses, unvouchered allowances, gifts, etc. are the year-end and other bonuses, unvouchered allowances
(such as expenses that are not paid through an Accountable Reimbursement Plan), down payment grants for the purchase
of a home, savings from interest-free or interest-reduced loans (not loan principal), and gifts paid by the employing
organization. (Gifts from private donors and honoraria are NOT included.)
Line 5: Other allowances includes all other forms of compensation not otherwise covered on lines 1-5, including medical
deductible and expense reimbursement allowances not paid through a group benefit plan (for example, dental plan),
insurance premiums for additional insurance coverage provided for individual employees (premiums for group plan
coverage are not included), salary reduction contributions to flexible health spending accounts, and cafeteria plans, etc.
Line 5: If an allowance is provided to reimburse for Self-Employment Contribution Act (SECA) tax obligations, any
amount in excess of 50% of the minister’s SECA tax obligation must be included on this line. Please see bottom of page
1 for worksheet to calculate the figure. Amounts less than or equal to 50% of minister’s SECA tax are excluded from
Total Effective Salary, which is used as the basis for Benefits and Pension Dues, and is entered on line 10. However, any
SECA payment is taxable income to the Minister and does count when determining if the Terms of Call meet the
Presbytery minimum.
Line 6: Manse amount- For purposes of determining Effective Salary, the Benefits Plan provides that the manse rental
value must be at least 30% of other compensation (i.e. lines 1-7 above). The Presbytery standard is that the rental value of
the manse should be the greater of the fair rental values as determined within the past 2 years or 30% of effective salary.
If a utility or other housing-related allowance is paid to the minister, the allowance should be reported on lines 2 or 3. In
other words, the church must pay the utilities through its checking account in order for such payments to stay out of
Effective Salary and Taxable Income.
Line 8: Benefit Plan Dues-The cost of medical will increase to 19.5%, and are payable monthly. Total dues for Pension,
Life Insurance, and Health Benefits are 31.5% of Total Effective Salary. Treasurers are urged to pay electronically via
Board Link.
COMPENSATION NOT NORMALLY INCLUDED IN EFFECTIVE SALARY
Accountable Reimbursement Plan
a. Continuing education reimbursements: the amount the church or employing organization agrees to reimburse
for money actually spent or to be spent for job-related continuing education purposes. Payment must be supported
under an Accountable Reimbursement Plan or paid under a Section 127 plan. All other allowances should be
included on Line 5.
b. Automobile expenses must be either a) reimbursed at the per mile rate (IRS rate for 2009 is $0.585 per mile
subject to change as fuel prices change), or b) a car with full expenses provided. Record on line 11b the amount
budgeted to reimburse the minister or to pay the expenses of operating a church-owned vehicle. All payments
must be documented with actual expenses or miles driven. Allowances for which no substantiation is required
should be included on line 5.
c. Business and professional expenses include such items as books, subscriptions to magazines, supplies, business
meals, etc. and should be reimbursed as spent and supported by the minister.
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