What the NACEC wants CEC Chairs, CFA Chairs, and the Treasurers to Know About Equitable Compensation

1
What the NACEC wants CEC Chairs, CFA Chairs, and
the Treasurers to Know About Equitable
Compensation in their work with the budget , the
cabinet and each other
2
Biblical Foundation

• Acts 2 44b- 45 All the believers lived in a
  wonderful harmony, holding everything in
  common. They sold whatever they owned and pooled
  their resources so that each persons need was
  met.

3
Fruit Bearing Matt 717-20

• In the same way, every good tree bears good
  fruit, but the bad tree bears bad fruit.  A good
  tree cannot bear bad fruit, nor can a bad tree
  bear good fruit.  Every tree that does not bear
  good fruit is cut down and thrown into the fire. 
  Thus you will know them by their fruits.

4
What is Equitable?

• Equitable does not always equate with Parity.
• Equitable does not always equate with Fair in all
  circumstances.
• Equitable is The Minimum Base Compensation
  established by the Annual Conference.

5
What is Equitable?

• Equitable is The Minimum Base Compensation
  established by the Annual Conference.
• The Church shall provide, and the ordained
  minister is entitled to receive, not less than
  the equitable compensation established by the
  annual conference for clergy members according to
  provisions of 624.3 (par 342)

6
What is Equitable?

• Equitable is The Minimum Base Compensation
  established by the Annual Conference.
• The conference council on finance and
  administration shall apportion the amount
  approved by the conference as an item of clergy
  support to the districts or the charges as the
  conference may direct (par 624.7)

7
Judicial Council Decisions

• 90
• 179
• 579
• 1013
• Affirm that appointed pastors in good standing
  must receive the minimum base compensation.
• The Annual Conference must be the source of the
  funding.

8
The Judicial Council Says 90

• Implementing this mandatory provision, Sub. 4 of
  Paragraph 806 makes it mandatory that the
  Conference Commission on World Service and
  Finance and Administration estimate the total
  amount necessary to maintain such schedule, and
  that such estimated amount "shall be apportioned
  as an item of ministerial support to the
  Districts or pastoral charges as the Annual
  Conference may determine."

9
Judicial Council 179

• "The Commission on Minimum Salaries shall
  present its estimate of the amount required to
  comply with the schedule of minimum salaries for
  the pastors, as adopted by the Conference, to the
  Conference Commission on World Service and
  Finance and Administration, which shall apportion
  the amount as an item of ministerial support to
  the districts or charges as the Conference may
  direct."

10
JC, Must pay minimum 579

• The sections in the South Carolina Annual
  Conference Guidelines for equitable salaries C,
  F, K, T, and U which if implemented would result
  in a full member in good standing of the Annual
  Conference receiving less than the established
  minimum salary are null and void.

11
CEC- CFA-Treasurers Consultation

• CFA, CEC Chairs and Treasurers CEC - Schedule a
  separate consultation. (Judicial Council Decision
  1013) prior to or just after the budget
  hearings.

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Good FaithJudicial Council 1013

• Consultation means that the conference commission
  on equitable compensation and the conference
  council on finance and administration will make
  good faith efforts to reach agreement

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Judicial Council 1013

• on the amount of support necessary to fully fund
  minimum base compensation and base compensation
  supplements for clergy.

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• The annual conference is required to support the
  schedule of minimum base compensation and base
  compensation supplements. This responsibility may
  not be delegated to or assumed by any other body.

15
Prayers

• Pray for each other at each meeting.
• Encourage members to pray for each other prior to
  meeting together.

16
Discipline P. 342.1

• Appointed Pastor
• a right. . . not less than base compensation
  established by the annual conference.

17
Essence

• Appointed Pastors in good standing must be paid
  no less the minimum base compensation as
  established by the Annual Conference.
• If the church is unable to provide the minimum,
  then the AC must provide it.

18
What if the church cant provide the minimum?

• 1.Cabinet might explore with the church the
  possibility of
• less than full-time appointment
• multiple-point charge
• merger
• Closure
• 2.Appointed pastors in good standing have a claim
  on the Equitable Compensation funds for minimum
  Base par 342

19
CEC purpose is to support Clergy by

• a. recommending conference standards for
  pastoral support
• b. administering funds to be used in base
  compensation supplementation

20
What is the total minimum compensation?

• The Total Minimum Compensation is adopted by the
  AC!

21
Part Time

• Compensation may or may not be prorated in
  quarter increments.
• Check Pension Rules
• and Health Insurance
• Varies Each AC

22
Average Compensation Statistics

• What are the different conference paying in the
  way of compensation?
• Refer to NACEC Summary Document

23
What is the minimum base in your annual
conference?

• NACEC defines the Total compensation as Cash
  Salary and all the benefits and allowances which
  do not involve professional expenses.

24
What is the minimum base in your annual
conference?

• NACEC advocates Equity requires that the church
  pay for all professional expenses.

25
Subsidy Grant Limits

• Your AC may place limits on the annual amount
  or the number of years a congregation can make a
  claim.

26
Eligibility Limits as Adopted by the Annual
Conference

• Support the Efforts of CEC to adopt Eligibility
  limitations
• Example Five years of consecutive eligibility
  and reduce subsidy grant each year.

27
Eligibility

• The AC may limit the churchs eligibility,
  nonetheless
• Appointed pastors in good standing do not have a
  limit on the number of years of eligibility.

28
Eligibility and Appointments and Consultation
with Cabinet

• Discuss this with the cabinet.
• Is this a fruit bearing church?
• Ask why are you appointing pastors to non fruit
  bearing churches?

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CEC is not a rubber stamp for the Cabinet

• CEC may refuse to fund.

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Subsidy Grant Limits

• Discuss with the cabinet the need for the
  congregation to provide some of the compensation
  of the pastor

31
Subsidy Grant Limitations 624.9

• An annual conference may set a maximum amount to
  be used in attaining such minimum base
  compensation in any given case, and it may set
  its own policy regarding the number of years for
  which a pastoral charge is eligible to receive
  equitable base compensation funds, provided that
  no member in good standing who is appointed to a
  pastoral charge is denied the minimum base
  compensation

32
Further Limits - Par 342

• 4. No pastor shall be entitled to any claim for
  unpaid base compensation against any church or
  charge served after pastoral connection with the
  church or charge has ceased.

33
And ---- Par 624.2

• Once the base compensation supplementation has
  been paid by the annual conference, the annual
  conference shall have no further obligation or
  responsibility to the pastor, the charge or
  anyone else regarding the pastor's compensation.

34
Funding Limits

• The Commission works with CFA to avoid deficits
  in the CEC budget by providing accurate
  estimates, considering the possibility of changes
  .

35
Arrearages Do Happen?

• Who has the liability?
• The Local Church as Long as the Pastor is
  appointed to that Charge.

36
Par 624 New Language

•  If it becomes apparent that a church or charge
  will be unable to so provide the compensation
  approved by the charge conference, the church or
  charge shall immediately notify, in writing, the
  pastor, District Superintendent and congregation
  indicating all avenues explored to meet the
  salary  and may request  including requesting 
  consideration for a short-term emergency subsidy
  grant from the Equitable Compensation Fund
  (624.7).  

37
There is more new Language par 623

• If it becomes necessary to modify a pastors
  compensation, it shall occur at the end of the
  conference appointment year.

38
What are the fiscal implications for CEC?

• Possibility of Midyear applications
• Be Good Stewards
• Ask CFA for help
• What if the Pastor or Congregation is ineligible
  for a subsidy Grant for various reasons or
  because the pastors compensation exceeds the
  minimum?

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Discussion Is it possible that a Pastor Might
not be paid compensation?

• Where does the Churchs liability End?
• Where does the Conference Liability End?
• Be Good Stewards in the Administration of Funds!

40
Subsidy Grant Checks Explore possibilities

• How are the pastors pension and CPP paid by the
  Local church?
• To the AC or to the General Board

41
Subsidy Grant ChecksPrevent Double Dipping
Conference Funds

• Encourage the AC to adopt rules which permit CEC
  to pay the pension, CPP from the Subsidy grant
  check, and thus disallow double dipping into
  conference funds.
• The Pension and CPP are deducted from the check.

42
Subsidy Grant Checks

• In some cases the Pastor may need to be paid
  directly.

43
How do you think Congregational Development ought
to be involved?

• Probably the application process includes some
  involvement of Congregation Development

44
Future Discussion

• Are there any topics CEC, CFA, and the Treasurers
  ought to discuss to be more helpful to the
  Cabinet and the process of funding Equitable
  compensation