Ministerial Support Form

SERVING GIVING YOU LIVING

What Is The Ministerial Support Form?• It is the form to document clergy compensation

• It states the amount agreed by the church to pay the pastor

• It is used by the pastor to determine how the compensation should be allocated

• It can be used to help complete a W-2 for clergy for IRS reporting purpose

• It should be shared with SPRC, Church Treasurer, and others as necessary

• It is not to be ignored

Some language that helps:

• Pension Plan is called Clergy Service Retirement Plan (“CRSP”): Church Responsibility• A defined benefit component (i.e. for a set monthly

amount in retirement) for participating clergy• A defined contribution component that is set of 3% of

clergy compensation. (i.e. you get back what was contributed plus or minus market fluctuations)

• United Methodist Personal Investment Plan (UMPIP) – a 403(b) plan but similar in design to a 401(k). A tool used to defer compensation for retirement. By its nature it is a defined contribution plan.

Some language that helps

BILLABLBE Compensation• This is the salary amount set by the charge / church to

pay the pastorPLUS • A factor for housing which is either:• 25% of the Salary or• The value of housing allowance in lieu of a parsonage.

• Comprehensive Protection Plan (CPP) – a disability program for clergy serving full time.

So What Is New? Benefits!

• Based on General Conference Action to the CRSP Plan:• Reduced the defined benefit contribution

portion going forward• Full Time Clergy now need to put 1% of billable

compensation (defined earlier) into their UMPIP account.• Can waive out 1% contribution but will loose a

matching contribution so this is not recommended

So What Is New? Benefits!

• Based On Annual Conference Action all Clergy serving less than full time:• Are removed from the CRSP Plan• Are put into the UMPIP Plan Only• If the clergy elects to defer 3% of billable

compensation then the church must match 9%• This will be a reduction in benefit cost for most

churches will clergy less than full time

So the form is now designed to:

• Assist you by performing some calculations automatically• The following information will prepopulate:• Charge Name / Church Names• Pastor’s Names• Pastor’s Status & Service Time

• Integrate the direct billing calculator, the tool used to aid in determining the cost of clergy benefits, into the form and will automatically calculate based on the responses you give or that have been pre-filled.

When You Start:

1. The Charge / Church(es) need to decide the pastor’s salary2. Answer the following questions:

a) Is a parsonage available?b) If Yes, then does the pastor live in the parsonagec) If no is a housing allowance in lieu of a parsonage provided

12a

2b2c

When you start:3. If the pastor is assigned at ¾ or 100% Service time then

health care is provided. Select which health care option the pastor decides.

4. If the pastor chooses NOT to participate in the 1% (For Full Time) or 3% (Part Time) Contribution and associated Church matches then they can select here. THIS IS NOT RECOMMENDED.

5. The church can indicate if they would like to seek Equitable Compensation Support

3

4

5

Then hit and

• Now the pastor decides how he / she wants the salary allocated among lines A – D• Certain items have maximum amounts or

amounts we recommend the church withhold• UMPIP – discussed earlier• Health Insurance – a portion of the total

premium cost• The amounts in B1, B2, C1a, C1b, C2 should be

withheld from the pastor’s paycheck and remitted to the appropriate body

Update

This is where clergy allocate the salary set by the church in above. This needs to total the church salary and will indicate what is left to allocate.

1

The direct billing calculator• Is now integrated into the form and will automatically

calculate what benefit cost the church is responsible for paying in addition to any amounts withheld from the paycheck.

Direct Billing Cost: Allocation• We recommend one bill to the charge, but you can have us

allocate the direct billing cost to individual churches on a charge

Church 1 Chruch2 Total

Allocated 50% 50% 100%

Direct Billing Cost: Address• Please indicate which address you would like the bill to go to

Church Address

Church 1

Church 2

Total Compensation Package• The total amount of Salary + Benefits will now show (i.e. The

Total Compensation Package)• The Church is responsible for paying all the compensation

cost.

Total Compensation (Salary + Benefits) $xx,xxx

Be sure to:

• Click before leaving

• You can come back and work on it as much as you need to, but no values will reappear if you do not click

Save

Save

Just keep in mind• If a change is needed for health insurance then the benefits

component of the compensation package will change