EMAIL:                        Austin@nakoacompanies.com

BE IT RESOLVED, that the 2007 Clergy Compensation and Benefits Policy of the Episcopal Diocese of Hawai’i be adopted.

RATIONALE/EXPLANATION

The 2007 Clergy Compensation Schedule salary ranges represent a 7.5% increase over 2006’s schedule, along with a $600 increase to the automobile allowance.

Regarding the Compensation Schedule: In response and support of the mission and efforts of congregations, the Commission has modified the previous concept of 10% over a total of four years (2007 being the second in this cycle) increases to the Compensation Schedule.  Recognizing the still-present need to adjust better the Compensation Schedule to reflect parity, cost of living, clergy search market, and unchanged Schedule for over 4 years from 1994-1998, the Commission stands by a continued increase beyond the cost of living to the Schedule.  The Commissions modifies our recommendation with 7.5% increase, anticipating this standard level of increase over four years, 2007 being the first.

Regarding the Automobile Allowance: Until 2006, the automobile allowance had not been adjusted in 4 years, and the 2005 AAA allowance was $7,142. The Commission finishes the second half of the phase-in catch-up of 2006. Vestries/bishop’s committees and clergy should mutually determine whether a flat automobile allowance or a mileage system will be implemented at each congregation.  The Commission has added provisions that increase automobile allowance according to costs of living adjustments, thereby avoiding the oversight of future increases.

Regarding Mutual Ministry Review: Compensation provides the means by which congregations enable priests to exercise and express a professional vocation entrusted by God and affirmed by the Church. Inherent to the sacred trust shared by priest and congregation is the mutuality and accountability of communion.  The following terms state the expression of this  mutuality and communion by providing the minimum expectations of compensation and professional support, according to various conditions necessary for life and ministry in the Diocese of Hawai`i.  These minimum expectations articulate the base for which we support and affirm the ministry and leadership of our priests.

As a further sign of our mutuality of ministry and life in communion, compensation must be developed and considered with clear expectations of ministry and presence. In order to achieve this, all priests providing ministry and leadership beyond supply ministry must have a mutually agreed upon Letter of Agreement, a Position Description (to include a statement of ministry and professional goals), and a biennial request for Mutual Ministry Review.  This mutual review will provide for the continued mutual life, ministry and vitality shared by priest and congregation.

Materials, resources, and guidance for Letters of Agreement, Position Descriptions, and Mutual Ministry Reviews are available from the Office of the Bishop. 

An agreement among the Clergy, Wardens and Vestry to a biennial discussion and mutual review of the total ministry of the parish allows for the following:

•           The Clergy, Wardens and Vestry are given the opportunity to assess how well they are fulfilling their responsibilities to each other and to the ministry they share.

•           Goals can be established for the work of the parish for the coming year.

•           Areas of conflict or disappointment that have not received adequate attention and may be adversely affecting mutual ministry can be identified and addressed properly.

•           Expectations of all parties can be clarified to reduce the possibility of any future conflicts and if any occur, they become more manageable.

A mutually agreed upon third party may be engaged to facilitate this process.

The Compensation Review Committee has asked the Resource Development Department to discus this recommendation in its presentations made around the state in pre-Annual Meeting gatherings with clergy, lay convention delegates, wardens and treasurers. It is hoped that the concepts mentioned here and presented of a continued 7.5% increases for the three subsequent years following 2007 will be given serious consideration in those subsequent years.

2007 CLERGY COMPENSATION AND BENEFITS POLICY

The Episcopal Diocese of Hawai`i

	Compensation	5 thru 9 Years	10 thru 19 Years	20 thru 29 Years	30+Years
Category	0 thru 4 years Minimum	Minimum	Minimum	Minimum	Minimum
A	76,668	86,244	95,820	103,476	114,972
B	69,744	78,408	87,108	94,032	104,472
C	63,396	71,292	79,212	85,536	95,028
D	57,600	64,908	72,108	77,952	86,604
E	52,392	58,944	65,484	70,716	78,564

This table does not include self employment tax.

Compensation includes salary and housing

I.                  Salaries

a.      The compensation categories and ranges are intended to be used as a framework within which the Vestry/Bishop’s Committee and the clergy negotiate a mutually acceptable compensation.    The compensation ranges are based on years of service to provide a guide for compensation increases as years of service increase.  This compensation schedule sets the minimum for churches in the Diocese of Hawaii.  Years of service means the number of years of status as a clergy person in good standing in The Episcopal Church in the USA. In Parishes, Compensation is negotiated between the Clergy person and the vestry.  For Missions, compensation is negotiated between Clergy and the Bishop’s Committee with the approval of the Bishop.  Credit for prior years of service as an ordained person in-good-standing in another denomination is negotiated between the clergy and the Vestry/Bishop’s Committee with the approval of the Bishop.  With respect to clergy newly called or appointed to a congregation, the Vestry/Bishop’s Committee is required to notify the Treasurer of the Diocese as to the number of years of service at which they enter the Compensation Schedule approved by Diocesan Convention.  In order to maintain accurate records, a schedule will be attached to the Parochial Report reporting the clergy compensation and the number of years of service as it increases each year.

b.      Clergy must be paid at least the minimum of the applicable category with salary reviews at least annually.  Congregations and clergy are strongly encouraged to set up at least a bi-annual Mutual Ministry review, complete with clear goals and objectives, mutual accountabilities and shared expectations by both the laity and the clergy.

c.       These categories are minimums and should be used as a starting point for salary negotiations.  Vestries/Bishop’s Committees should be seriously considering appropriate compensation.

d.      For easier administration, all compensation figures will be rounded up into amounts divisible by 12.

e.      Each Vestry or Bishop’s Committee, working in consultation with their clergy, shall approve a resolution determining the housing allowances for the following year.  This IRS requirement shall be completed by December 31^st of the year preceding the commencement of the allowance.

f.        For clergy who are paid a cash housing allowance, the amount of the housing allowance shall be determined by negotiation between clergy and Vestry/Bishop’s Committee.

g.      The 2007 Housing Allowance Guideline is $17,172 and is included in the compensation amounts stated above.  Any congregation that furnishes housing for the Fair Market Value that is less than the $17,172 is encouraged to pay the difference in cash to the clergy.  The value of housing that is decided shall be added to the cash salary in order to compute the total compensation for Church Pension Fund purposes.

h.      Congregations with assisting clergy are encouraged to classify the assistant’s position into a category appropriate to the scope of the position.

II.               Part Salaried Positions

a.      Part salaried clergy in charge of congregations will be paid according to the applicable range above, times the % as agreed for the position.

III.           Benefits

a.      A car allowance of $7,200 will be provided, unless the clergy and Vestry/Bishop’s Committee mutually determine by December 31 of the year preceding the commencement of the allowance that a mileage plan (using the current Internal Revenue Service cents per mile) will be provided for the year instead.  Clergy are encouraged to consider use of pre-tax dollars by setting up a reimbursable expense account plan or have the congregation provide an automobile. Please budget an annual increase of 4% for 2008 and 2009.

b.      The congregation will pay the mandatory Church Pension Fund Assessment on salary, housing, social security reimbursement and on utilities (if applicable).

c.       $50,000 Group Life Insurance as provided by the Church Pension Fund at no cost to the congregation.

d.      The congregation must provide the Diocesan HMO Plan for clergy.  For exceptions, please apply to the Office of the Treasurer.  Clergy will receive full family medical coverage according to the terms of the Diocesan HMO Plan, paid for by the congregation.  (Clergy hired prior to 1/1/95 may continue with the Preferred Provider Plan.). Please budget an annual increase of 7% in medical cost for 2008 and 2009.

e.      The congregation will pay the cost of Worker’s Compensation coverage.

f.        The Temporary Disability Insurance Plan for clergy is provided by the Church Pension Fund at no cost to the congregation.

g.      Congregations will pay the clergy social security costs at 7.65% of salary and housing.

h.      Full Salaried clergy are entitled to one month (30 calendar days) of annual vacation with full stipend and allowances.  This vacation time cannot be more than 45 calendar days in any one year, except by the agreement of the Vestry/Bishop’s Committee with the consent of the Bishop in Aided Parishes and Missions.  (In other words, no more than 15 days can be carried over to the following year.)  Congregations should encourage clergy to take vacation.

IV.            Part Salaried Clergy Benefits

a.      The congregation must provide the Diocesan HMO plan for Part Salaried clergy who are 50% or more Salaried.  Part Salaried clergy who are less than 50% Salaried will receive the dollar value of the percentage of the value of a full coverage HMO plan.  (Prior to the adoption of this policy, all Part Salaried clergy who are currently serving in a congregation, will be grandfathered into the type of medical coverage they now enjoy.)

b.      If qualified, Part Salaried clergy will receive the designated Group Life Insurance benefit as provided by the Church Pension Fund.

c.       The congregation will pay the mandatory Church Pension Fund assessment on salary, housing, social security reimbursement and on utilities (if applicable).

d.      Part Salaried clergy will receive the Federal guideline reimbursement of business mileage instead of a car allowance.

e.      The Temporary Disability Insurance Plan for Part Salaried clergy is provided by the church Pension Fund.

f.        Part salaried clergy are entitled to one month (30 calendar days) of annual vacation with agreed stipend and allowances.  This vacation time cannot be more than 45 calendar days in any one year except by the agreement of the Vestry/Bishop’s Committee with the consent of the Bishop in Aided Parishes and Missions.  (In other words, no more than 15 days can be carried over to the following year.)

V.               Other

a.      Moving Expenses:  Clergy will receive an allowance for moving expenses from the US Mainland, typically in the range of $12,000 to $18,000, depending on location.

b.      Sabbatical:  Clergy are eligible for sabbatical leave at the ratio of one month per year of service in the congregation, to be available after the third year, and cumulative through the fourth year.  The maximum amount of leave is limited to 4 months.  The vestry/Bishop’s committee shall annually budget funds to accumulate to provide pastoral and sacramental supply during the clergy person’s sabbatical leave.  Sabbatical leaves are provided for the benefit of both the congregation and clergy.  Thus, before a sabbatical leave is granted, clergy agrees to serve the congregation for at least one year upon returning from the sabbatical.  In addition, the request for sabbatical must be accompanied by a full and detailed description of the activities to be undertaken during the leave and, if granted, clergy shall submit to the Bishop and the Vestry at the end of the leave, a report on the accomplishments of the leave.  Accrued but not taken sabbatical leave can be carried over to following years in the same parish/mission.  Accrued but not taken sabbatical leave is not paid out at retirement.

c.       Continuing education:  Clergy are required by Canon and Diocesan policy to continue their education.  The congregation should provide funds in its annual budget for this continuing education.  The minimum recommended amount is $900/year.  This amount should accumulate if unused and can carry over to the next year.  This fund should also be available for sabbatical expenses.

VI.            Supply Clergy Compensation

a.      The minimum compensation for supply clergy shall be as follows:

One Service:  $140.00

Two Services:  $190.00

Each additional Service:  $90.00

Clergy will be reimbursed for travel (mileage or airfare) and housing (if applicable).

CONGREGATIONAL COMPENSATION CATEGORIES

CATEGORY   E   10 TO 115

                                                                CATEGORY   D   116 TO 179

                                                                CATEGORY   C   180 TO 240

                                                                CATEGORY   B   241 TO 392

                                                                CATEGORY   A   393 AND ABOVE

2007 CONGREGATIONAL COMPENSATION CATEGORY

COMPUTATION WORKSHEET BASED ON

2005 PAROCHIAL REPORT DATA

I.       Number of Pledging Units

            Number of Pledging Units                                 _________________

            Multiplied by .40=                                            _________________

II.    Average Attendance

            Average Sunday Attendance                             _________________

            Multiplied by .30=                                            _________________

III.  Annual Operating Budget

            Annual Operating Budget in $1,000                  _________________

            Multiplied by .30=                                            _________________

            TOTAL OF WEIGHTED FIGURES            _________________

Anyone who may have questions on how to utilize these worksheets and compensation categories, ranges and tables may contact the Diocesan Compensation Review Committee  Chair, and/or Mr. Peter Pereira, Diocesan Treasurer.

ADDENDUM TO CLERGY COMPENSATION SCHEDULE

Examples:

1.                  Clergy with 5 years service is called to serve in a Category E Parish/Mission.  His minimum compensation should be $58,944.  These categories are minimums and should be used as a starting point in the negotiation; Vestries/Bishop’s Committees should seriously consider appropriate compensation.

2.                  Clergy with 20 years of service is called to serve in a Category C Parish.  Her minimum compensation should be $85,536.   These categories are minimums and should be used as a starting point in the negotiation; Vestries/Bishop’s Committees should seriously consider appropriate compensation.

3.                  Clergy with 25 years of service is called to serve as a part salary vicar in a Category E Mission.  The position is for 50% of salary.  His minimum compensation should be $35,358 ($70,716 divided by 2 = $35,358). These categories are minimums and should be used as a starting point in the negotiation; Vestries/Bishop’s Committees should seriously consider appropriate compensation.

4.                  Clergy with 2 years of service is called to serve in a Category D church.  His minimum compensation should be $57,600.  However, due to the parameters of the search and the scarcity of applicants, the congregation ended up paying the clergy $77,000.

2007 COMPENSATION BASED ON 2005 PAROCHIAL DATA
ALPHABETICAL
	No. of		Assessm't
	Pledging	Average	Operating	Weighted		0 thru	5 thru	10 thru	20 thru	30 +
CHURCH	Units	Attend.	Income	Totals	Category	4 years	9 years	19 years	29 years	years
ALL SAINTS	58	115	184,207	113	E	52,392	58,944	65,484	70,716	78,564
CALVARY	85	140	326,056	174	D	57,600	64,908	72,108	77,952	86,604
CHRIST CHURCH	51	88	240,144	119	D	57,600	64,908	72,108	77,952	86,604
CHRIST MEMORIAL	13	58	121,826	59	E	52,392	58,944	65,484	70,716	78,564
EMMANUEL	52	77	127,140	82	E	52,392	58,944	65,484	70,716	78,564
EPIPHANY	85	130	221,027	139	D	57,600	64,908	72,108	77,952	86,604
GOOD SAMARITAN	39	45	112,463	63	E	52,392	58,944	65,484	70,716	78,564
GOOD SHEPHERD	139	167	346,321	210	C	63,396	71,292	79,212	85,536	95,028
GRACE	100	87	68,770	87	E	52,392	58,944	65,484	70,716	78,564
HOLY APOSTLES'	51	105	255,471	129	D	57,600	64,908	72,108	77,952	86,604
HOLY CROSS	5	12	7,560	8	E	52,392	58,944	65,484	70,716	78,564
HOLY INNOCENTS'	43	58	84,320	60	E	52,392	58,944	65,484	70,716	78,564
HOLY NATIVITY	81	134	325,241	170	D	57,600	64,908	72,108	77,952	86,604
RESURRECTION	12	30	9,777	17	E	52,392	58,944	65,484	70,716	78,564
ST. ANDREW'S	177	261	1,295,736	538	A	76,668	86,244	95,820	103,476	114,972
ST. AUGUSTINE'S	32	31	77,643	45	E	52,392	58,944	65,484	70,716	78,564
ST. CHRISTOPHER'S	100	160	343,074	191	C	63,396	71,292	79,212	85,536	95,028
ST. CLEMENT'S	131	174	424,771	232	C	63,396	71,292	79,212	85,536	95,028
ST. COLUMBA'S	16	18	9,782	15	E	52,392	58,944	65,484	70,716	78,564
ST. ELIZABETH'S	72	105	264,914	140	D	57,600	64,908	72,108	77,952	86,604
ST. GEORGE'S	11	46	36,561	29	E	52,392	58,944	65,484	70,716	78,564
ST. JAMES'	70	93	263,744	135	D	57,600	64,908	72,108	77,952	86,604
ST. JOHN'S, KULA	99	129	231,993	148	D	57,600	64,908	72,108	77,952	86,604
ST. JOHN'S BY/SEA	46	61	102,888	68	E	52,392	58,944	65,484	70,716	78,564
ST. JUDE'S	11	24	31,114	21	E	52,392	58,944	65,484	70,716	78,564
ST. LUKE'S	7	26	109,765	44	E	52,392	58,944	65,484	70,716	78,564
ST. MARK'S	61	73	241,034	119	D	57,600	64,908	72,108	77,952	86,604
ST. MARY'S	31	68	232,773	103	E	52,392	58,944	65,484	70,716	78,564
ST. MATTHEW'S	30	29	39,277	32	E	52,392	58,944	65,484	70,716	78,564
ST. MICHAEL'S	87	120	292,727	159	D	57,600	64,908	72,108	77,952	86,604
ST. NICHOLAS	30	86	228,505	106	E	52,392	58,944	65,484	70,716	78,564
ST. PAUL'S, OAHU	156	228	138,794	172	D	57,600	64,908	72,108	77,952	86,604
ST. PETER'S	38	116	415,597	175	D	57,600	64,908	72,108	77,952	86,604
ST. PHILIP'S	10	24	40,050	23	E	52,392	58,944	65,484	70,716	78,564
ST. STEPHEN'S	42	36	84,892	53	E	52,392	58,944	65,484	70,716	78,564
ST. THOMAS	10	12	29,337	16	E	52,392	58,944	65,484	70,716	78,564
ST. TIMOTHY'S	123	112	221,850	149	D	57,600	64,908	72,108	77,952	86,604
TRINITY BY/SEA	56	85	192,871	106	E	52,392	58,944	65,484	70,716	78,564
WEST KAUAI	26	66	73,026	52	E	52,392	58,944	65,484	70,716	78,564