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Indiana Yearly Meeting Pastoral Agreement

Monthly Meeting: Year: Pastor:

It is essential that the local Meeting and the pastor use the Handbook for Elders, especially the sections that offer guidelines to establish the relationship between the pastor and the Meeting, and to describe the area of pastoral responsibilities. In consideration for the pastoral support below, to liberate the pastor from the necessity of "secular" employment, the pastor assumes accountability for furthering the work of the Meeting in worship and service. In consideration for the pastor’s ministry, the Monthly Meeting assumes the following support:

Salary Arrangements
The salary shall be considered each year prior to April, and current living costs shall be considered as well as the work being done by the pastor, and the years of experience he/she has had in the pastoral ministry. Ministry & Oversight and Stewardship & Finance committees should recommend the salary jointly.

Salary Weekly Monthly
1. The salary (less housing allowance)

$

____________

$

____________
Housing
2. a. The housing allowance shall be:

a)

____________ ____________

This portion of the pastoral compensation is designated in the official Records as housing allowance to comply with section 107 of the Internal Revenue Code.* This is an "exclusion" and is not reported as income on the pastor’s IRS tax return.

    b.  Furnish the following utilities: oil, gas, water, electricity,
         telephone, ________

b)

____________ ____________
3.  Provide (a) a usable parsonage for pastor and family with a rental value of $________/Month (approximately 1% of market value of the house), or (b) an adequate allowance for them to buy or rent their own home in the amount of $________/month. Item 3(b) should be entered on 2(a) as an "exclusion." Item 3(a) or 3(b) is not reported as income on the tax return, but is reported on the Social Security form 1040 Schedule E, and the pastor will have to pay Social Security Tax of 15.3% on this amount as well as on his/her salary.
Benefits
4. Pay the pastor’s Social Security tax to the extent of (100%, 50%), estimated at $________ one-fourth of this payable 9/15, 1/15, 4/15, 6/15.
____________ ____________
Each installment $__________
5. Participate in a health insurance plan.
6.  The pastor should be covered under a pension plan, and 10% of salary and housing must be paid on this. The Meeting will pay (10%, 5%).

Reimbursements
7. Reimburse the pastor an amount of $__________annually for car maintenance ($0.485/mile).
8. Reimburse the pastor an amount of $__________for professional expenses. (See C below).
9. Moving costs (if applicable) $__________

Other Benefits and Opportunities
A. Vacation for (2-3-4-) weeks with pay. The Meeting arranges for pulpit supply and visitation during the pastor’s absence. Duration of pastorate should be reflected by longer vacation period. Some sabbatical time should be considered after 7 years. ______ weeks of vacation, ______ sabbatical time. Consideration should be given to some non-vacation time being available for the pastor to hold special meetings at another church if desired as well as seminars and workshops.
B. At least one day per week free from regular church assignments (day) ____________.
C. The local Meeting is expected to pay for attendance at Yearly Meeting Sessions, Pastors’ Short Course, Pastors’ Retreat, Quarterly Meeting Ministers’ gatherings, etc.

This arrangement begins on __________ and will be in effect for __________. Either party may notify the other of a desire to change at least three months previous to the end of any pastoral year (by April).

Signed (date) ____________________

____________________________________________________________________________________________________________

Monthly Meeting Clerk M & O Clerk Pastor

*Costs to "provide a home" may include the pastor’s rent, home payments, insurance, utilities, furnishings, front & back yards, etc. (IRS Ruling 71-280, IRB 1971-27,12)

Note: Please send a copy of the signed agreement to IYM General Superintendent, 4715 N Wheeling Ave, Muncie IN 47304

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