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| Intro
Salary Equity Social Sec Benefits Reimburse Employee Interim Supply SalaryComp Jobs Prayer
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It is suggested that an equity allowance be provided if a pastor or associate in ministry lives in a congregation-owned home. The equity allowance provides the financial resources for a professional leader to purchase housing, whether during his/her active ministry or upon retirement, when a parsonage will no longer be available. When the pastor lives in a parsonage, it is the congregation that is enjoying any equity buildup in that home, not the pastor or AiM. When the person leaves the parsonage, there is no equity with which to finance new housing. Thus, congregations with parsonages are encouraged to provide an equity allowance plan to share with the pastor or associate in ministry that buildup in the value of the parsonage. A suggested equity allowance might be: A. An amount equal to 3% of the pastor's or AIM's defined compensation. (Base salary plus 30%). B. A split of the increased value of the parsonage from year to year. Since it is wise for a congregation to have an annual property appraisal for insurance purposes, this increase in value is easily determined. In paying the equity allowance to the pastor or AIM, it is helpful for the congregation to pay directly to a tax deferred plan which delays the income tax due until the funds are actually withdrawn for use. If the congregation wishes to setup an equity allowance plan, a resolution to be adopted by the congregation if the investment vehicle is other than the ELCA Optional Pension Plan is shown below. |
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HOUSING EQUITY ALLOWANCE AGREEMENT (This form is for use when contributions to a housing equity allowance are not made by the congregation to the member's ELCA optional pension plan. When payments are made to the ELCA optional pension plan, the congregation uses the forms presented by the fund custodians.) At a properly called meeting of the congregation of _____________________________ Lutheran Church held on ____________________________ and with a quorum present, it was moved, seconded and voted to establish a housing equity allowance for the Rev. __________________________ with (1) an initial contribution of $_________________ for the year 19___, and (2) with subsequent contributions to be determined each year thereafter by vote of the congregation. The conditions of this agreement are as follows: 1. The annual contribution shall be placed in an interest-bearing account in the name of the congregation. 2. The fund shall not be available for use by the congregation or by the pastor except for the purchase of a house by the pastor or the pastor's spouse. 3. The fund shall be paid in full to the pastor or survivors in the event of the pastor's disability, retirement or death. 4. Upon resignation as pastor from this congregation and acceptance of a call to another congregation or organization, the fund balance shall be transferred to the new employer or paid to the pastor, as the pastor may direct. 5. The funds shall be payable to the pastor's estate if there is no surviving spouse.
_________________________________________ __________________ _________________________________________ __________________ |
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