NACEC Reviewing the Basics

1. NACEC Reviewing the Basics Presenters: Rev. David Moore Deaconess Rosie Guadarrama

2. A bit of History trivia……we’ve come a long way Baby! The 1948 General Conference approved the minimum salary program, and each annual conference was given the responsibility to adopt a schedule of minimum support for its pastors, including fulltime and accepted supply pastors.

3. The going rate in ‘49 One conference in their 1949 journal set the minimum annual salary of the pastors at $1,600 for married men and $1,400 for single men. Progress in action!

4. We are in it together

5. Book of Discipline 625 Each AC will have a Commission on Equitable Compensation (CEC) or similar structure to provide and maintain the connectional relationships. • Equal number of Lay and Clergy • Including at least one lay and one clergy from churches fewer than 200 members (nominated by the conference and elected by the AC) • Inclusivity • 1 DS

6. Purpose CEC • Support F/T clergy serving as Pastors within the AC • Recommend standards for Pastoral Support • Provide counsel and materials to all who ask • Submit an arrearage policy for adoption • Study the needs for additional support and make annual recommendations to the AC for actions on minimum base compensation

7. Responsibilities Read and research applications Be Fair Give input on rules or application changes Participate in meetings, conference calls and email responses Administer funds Rewards Ensure minimum salary for clergy Feeling of doing something worthwhile Being a good Steward In many conferences expenses paid CEC Membership

8. A good steward The answer can be summarized with a single word—wisdom. We are to be wise with our money. We are to save money, but not hoard it. We are to spend money, but with discretion and control. We are to give back to the Lord, joyfully and sacrificially. We are to use our money to help others, but with discernment and the guidance of God’s Spirit. http://www.gotquestions.org/managing-finances.html

9. Educate, educate, educate Bring everyone on board. It is your responsibility to educate the cabinet, SPRC, Ad Council, Treasurer and Church members.

10. What does that mean for the Commission on Equitable Compensation? The CEC is responsible to the conference to be a good steward of the funds that are granted to churches.

11. Accountability • The CEC is accountable to the conference. • The local church and pastor receiving equitable compensation is accountable to the CEC and the conference.

12. Accountability depends on your rules? How do you hold your CEC churches/Pastors accountable? • Reports? • Church Visits? • Quarterly follow-up? • DS input?

13. Who sets the pastor’s salary?Book of Discipline 247.13 The charge conference shall in consultation with the district superintendent set the compensation of the pastor and other staff appointed by the bishop.

14. Annual Conference The Annual Conference is required to support the schedule of minimum base compensation supplements.

15. What is the most important thing to know about Equitable Compensation? What do you think is the most important thing?

16. What is the most important thing to know about Equitable Compensation? EC is available to EVERY appointed pastor, probationary elder and deacon in full connection with the UMC NOT ELIGIBLE: Retired Clergy Certified Lay Ministers

17. Book of Discipline 624Payment Obligation Each church or charge has an obligation to pay the full compensation as approved by the charge conference, to its pastor (s).

18. What is Equitable? • Equitable is the minimum base compensation, as established by the Annual Conference. • Each Annual Conference is different. Fairness is different in each AC because the value changes depending upon location. • What is the minimum base in your conference? What determined the amount?

19. Minimum Base • Appointed Pastors in good standing must be paid no less than the minimum base compensation as established by the Annual Conference. • If the church is unable to provide the minimum, then the Annual Conference must provide it.

20. What determines minimum base compensation? • Cost of living • Years of Service • Extreme situations • Rural/undesireable areas • Inner cities/Dangerous areas • Consideration for minorities

21. How long can we fund equitable compensation? Appointed Pastors in good standing do not have a limit on the number of years of eligibility.

22. If the church finds they can no longer pay their pastor, they must verbally and in writing let the pastor, congregation and DS know the situation.

23. Start the process with your Finance Committee and or SPRC.

24. How does one apply for minimum base compensation? • Make contact with your DS • Ensure completed application • Follow-up

25. Do we need to change? • Presently BOD prohibits retired clergy from receiving EQ • Require submission to GC Does the need exist?

26. Arrearages Do Happen! • Who has the liability? • The local church as long as the Pastor is appointed to that charge.

27. New Arrearage Language • In the event the AC has no arrearage policy in place, all such claims shall be subject to and controlled by, the civil laws applicable to such claims in the state in which the claim arises. • Any pastor who does not receive a full scheduled payment of the approved compensation shall immediately report such, in writing to the church or charge SPRC Chair, Church Council, Chair and DS. • Failure to report in a timely fashion may result in surrender of any/all arrearage claims, subject to the AC Arrearage Policy. 625.2

28. New Arrearage Language • NACEC recommends that each CEC have an arrearage policy. • A sample can be found at: http://www.gcfa.org/nacec Do you have one?

29. The Denomination’sSupreme Court Interprets church law and determines constitutionality of proceedings at all levels of church life.

30. Involvement of Judicial Council and Equitable Compensation Decision No. 1156 In Re: Request from the Baltimore Washington Annual Conference for a Declaratory Decision on the Meaning, Effect, and Application of ¶¶ 354 and 355 Regarding Requirement of Remedial Action for an Individual Granted Voluntary Leave of Absence

31. Case • The action of the 2010 Baltimore-Washington Annual Conference that placed a clergy member on a voluntary leave of absence. • Clergy member’s fair process rights were violated. • The Clergy member is entitled to receive equitable compensation as required for clergy members in full connection, insurance, housing, pension and other benefits according to annual conference policy and procedures

32. Authority • The separation of authority and decision making is integral to the United Methodist Constitution and law. • Procedures that govern action with respect to matters of conference relations are carefully set forth in the Discipline and are to be followed by the Board of Ordained Ministry without interference from the bishop or the district superintendents acting individually in that role or collectively through the cabinet.

33. Remedial Action Under ¶ 363, the Board of Ordained Ministry may choose or recommend one or more options for a program of remedial action, subject to regular oversight by the board and annual review.

34. Interpretation • Equitable Compensation becomes responsible for compensation in the event a clergy member has experienced their fair process rights violated. • Conference Equitable Compensation budget should include enough funds to handle emergency situations.

35. Next steps • Discuss your situation with your DS • Complete the application • Ensure all required information is available and accurate • Request all pertinent signatures • Keep DS and Bishop informed • THE PASTOR HAS THE CLAIM NOT THE CHURCH!!! • What is the process in your conference?

36. We are here to serve you Are there any topics that can helpful to present at the next training? Questions for the Panel of experts????? Please feel free to submit questions via e-mail to: r.guadarrama@att.net

37. Thank you