Steps Toward Shaping Appropriate Compensation

The Pacifica Synod of the E.L.C.A. - 2007

*         Annual Ministry Review and Goal Setting.        

“Conducting a fair and realistic evaluation of ministry is important for every congregation. A ministry review takes into consideration not only the leadership qualities of the pastor, but also the ministry provided by lay leaders and members of the congregation. This builds a foundation for performance evaluation through prayer, conversation and team building. Once a congregation establishes a ministry review and performance evaluation process, periodic checks can help to keep ministry on track. An annual review process can become an essential routine for healthy congregations of all sizes.”^[1]

A recommended resource for this process is Pastor and People Making Mutual Ministry Work, Augsburg Fortress, 2003 from the Congregational LEADER Series. Reproducible tools included in the book can be downloaded at www.augsburgfortress.org/CLS.

*            Complete Section 1 and 2 of the “2007 Clergy Salary Range Development Worksheet.”

Completing these sections will provide the appropriate salary range basis for the pastor.

*            Mutually Complete Section 3 of the “2007 Clergy Salary Range Development Worksheet.”

Using the figure in Box J as a baseline “low” and Box L as a suggested “high,” it is the responsibility of the congregation to determine actual annual salaries.

*            Allocate a Portion of the Pastor’s Compensation as “Housing Allowance.”

As ordained ministers, ELCA clergy are qualified to declare a portion of their income as housing allowance.  The amount of compensation designated as housing allowance must be recorded as a vote of the congregation’s Council/Board prior to the beginning of the year or prior to when the housing allowance begins. The Internal Revenue Service regulations indicate the designated housing allowance may not exceed actual housing costs. (See Housing Provisions for Pastors in Appendix A).

(The Salary and Housing Amounts should be entered on the “Definition of Compensation, Benefits, & Responsibilities of the Pastor” Worksheet (Appendix A, Section A, Compensation, Lines 1 & 2.).

*            Mutually Complete the “Definition of Compensation, Benefits, & Responsibilities of the Pastor” Worksheet (Appendix A)

Completing this worksheet will clarify the “non-salary” aspects of the compensation package.  Although these figures may not vary much from year to year, it is important that they be reviewed annually as important portions of the overall compensation and benefits package.