This past June, the Tennessee Annual Conference voted to change the way our conference makes provision for the health insurance and pension needs of our clergy. In the past, these expenses have been apportioned to the churches along with the other conference benevolences. This meant that some churches (like City Road Chapel) were paying for the expenses of more than the number of clergy appointed while others were paying less than the cost of providing insurance and pension for their pastor. For many years there has been a movement to remove health insurance and pension from the apportionments and instead to bill churches directly for the costs related to their pastor(s). That plan was presented by the Conference Council on Finance and Administration and adopted by the annual conference.
What will be happening in 2020?
- There will no longer be an apportionment for clergy health insurance and instead, the church will be billed monthly for the cost of 50% of the health insurance premiums ($13,215 per year). The additional 50% is being paid from conference reserves in 2020.
- There will no longer be an apportionment for clergy pensions and instead, the church will be billed monthly for 25% of the cost to the conference for each eligible clergy person. The remainder will be paid from conference reserves.
What does this mean for City Road Chapel in 2020?
Total Apportionment in 2019 $ 88,740.00
Pension $ 5,169.00
Health Insurance $ 25,954.00
Total Pension and Health Insurance Costs $ 31,123.00
Pension $ 2,484.36
Health Insurance $ 6,562.56
Total Pension and Health Insurance Costs $ 9,046. 92
2020 Apportionment $ 53,540.00
Total Costs for 2020 $ 62,586.92
Savings over 2019 $ 26,153.08