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Episcopal Diocese of Maine

RESOLUTION #2

RE: Clergy Compensation for 2004
SUBMITTED BY: Clergy and Lay Employee Compensation Committee

RESOLVED that the minimum compensation for a presbyter in full time service, consisting of Salary, Social Security Allowance, and Housing and Utilities Allowance (as determined by the Pension Fund formula [see Attachment #1]) is to be set at $47,927 and for a presbyter in full-time service in charge of a congregation to be set at the following four levels depending on the formula provided in Attachment #2:

Church Type Minimum Compensation

I $47,925

II $51,850

III $56,775

IV $62,700

BE IT FURTHER RESOLVED that for congregations that provide Rectories the value of provided housing will be determined using the Pension Fund Housing Formula (see Attachment #1)

BE IT FURTHER RESOLVED, that it is recommended that presbyters be compensated above the required minimum according to years of ordained service in parish ministry by the formula provided in Attachment #3; and

BE IT FURTHER RESOLVED that the guidelines for minimum compensation for supply clergy be those contained in Attachment #4; and

BE IT FURTHER RESOLVED that the travel allowance for 2004 be set at the rate recognized by the Internal Revenue Service.

Explanation

In 1999, the 180th Convention of the Diocese of Maine charged the Compensation Committee to develop a means to "make salaries more equitable within the Diocese." This resolution answers that charge, and is based on four goals: 1) To attract good clergy to Maine; 2) To keep good, experienced clergy in congregations; 3) To adequately support clergy in congregations of all sizes; and 4) To value experience.

At a period in the life of the Episcopal Church when there are fewer clergy than congregations, and when the average tenure of clergy in a congregation is something under six years, most congregations in the Diocese can expect to engage in a search process within the next five or six years. At the moment, the Diocese of Maine offers, on average, salaries that are far lower than other New England dioceses. Maine is the only New England Diocese in the 4th quartile of the national average for clergy compensation. This resolution:

1. Brings the average compensation for clergy in the Diocese to the middle of the 3rd quartile, which is still lower than any other New England Diocese, but is closer to being competitive than the present average compensation.

2. Simplifies the formula for determining a congregation’s type by using only two numbers, both of which are part of the Annual Parochial Report.

3. Specifies the minimum salary level for each type of congregation, to make salaries more equitable throughout the diocese, providing formulas for congregations with and without a rectory.

4. Strongly recommends that clergy experience be compensated, as in many other dioceses, and provides a formula for calculating such additional compensation.

ATTACHMENT #1 TO RESOLUTION #2

Pension Fund Housing Allowance Value Calculation

In order to calculate the "Pension Fund Housing Allowance Value", you must first determine the Actual Fair Rental Value of the rectory and, using Cash Salary , Actual Fair Rental Value and Utilities, calculate the Social Security reimbursement (Cash Salary plus Actual Fair Rental Value plus Utilities times .0765). The Social Security reimbursement will then be added to Cash Salary and Utilities to determine the Pension Fund Housing value.

With Rectory 

1) Cash Salary + Social Security reimbursement

2) Utilities = amount paid to clergy OR approximation of annual amount of utility bills paid by church on Rectory.

3) Housing = 30% of (1 + 2) above

 

Without Rectory Whichever is greater A or B below:

A. Actual Cash Housing/Utilities Allowance

-OR-

B. 1) Cash Salary + Self Employment Tax reimbursement

2) Utilities (approximation of actual costs)

3) Housing = 30% of (1 + 2) above

For more detailed information, please see: http://www.diomaine.org/2003compinfo.pdf 

ATTACHMENT #2 TO RESOLUTION # 2

NOI* Points
Up to - $107,999  1
$108,000 - $149,999

2
$150,000 - $199,999  3
$200,000 - up  4
 ASA**  Points
1- 80  1
81 - 120

2
121- 150 3
151 - up 4
Total Points Type
0-3 I
4-5 II
6-7 II
8 IV

* NOI (Normal Operating Income as shown on Page 3, Line A of the Parochial Report)

** ASA (Average Sunday Attendance as shown on Page 2, Line 6 of the Parochial Report)

 

ATTACHMENT #3 TO RESOLUTION # 2

Years*

1

2

3

4

5

6

7

8

9

10
Type I

Type II

Type III

Type IV

 $47,925

$51,850

$56,775

$62,700

 $48,255

$52,280

$57,305

$63,330

 $48,590

$52,715

$57,840

$63,965

 $48,930

$53,155

$58,380

$64,605

 $49,275

$53,600

$58,925

$65,250

 $49,625

$54,050

$59,475

$65,900

 $49,980

$54,505

$60,030

$66,555

 $50,340

$54,965

$60,590

$67,215

 $50,705

$55,430

$61,155

$67,880

 $51,075

$55,900

$61,725

$68,550

*  Years of service is defined as the number of years that the presbyter has served in a congregation since ordination in the Episcopal Church of the United States of America. Ordained service in other denominations may also be considered.

Following the 10th year, the annual compensation should be increased by at least the following amounts for each additional year of experience:

Type I -- $375

Type II -- $475

Type III -- $575

Type IV -- $675

 

ATTACHMENT #4 TO RESOLUTION # 2

GUIDELINES FOR TOTAL CLERICAL COMPENSATION

The diocesan Clerical Compensation and Review Committee recommends the following minimum fees for supply clergy:

One Sunday Service $100.00

Two Sunday Services 130.00

Other Liturgical Services 70.00

Pastoral or other assigned responsibilities 70.00 per unit*

* a unit is a morning, afternoon or evening

Expenses are reimbursed at cost for meals, lodging, telephone, etc. and at the IRS approved rate for mileage.

return to the Compensation Handbook page

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