The reaction to the Board of Pension changes is sweeping through social media and other communications like a mighty wind! Anxiety is high, worry about the future, and real concern about the fiscal realities of greater demands on shrinking budgets are apparent.
Ken Hockenberry and I spent a couple of days last week in Denver at a Board of Pensions event to learn about the upcoming changes. You can find details about the new medical plans here on the Board of Pensions website. There are some takeaways from the meeting that I would like to share along with ideas discussed in COM.
The first takeaway is that a dramatic change is necessary to keep the medical plan affordable. Everyone living in the U.S. is experiencing the rising cost of prescription drugs, tests, surgery, and doctor visits. The Board of Pensions provides excellent medical coverage for installed pastors and others. However, healthcare costs are rising faster than Board of Pension dues. The math doesn’t work in our favor. Either dues must increase to an unaffordable amount or coverage must be minimized. The Board of Pensions has found a third way. They seek to expand participation by providing coverage for a broader population of pastors and possibly share the burden of coverage with a spouse who may have another insurance provider. This third way means having conversations we have not had to have with our families and sessions.
Neither a presbytery nor a congregation can control the cost of healthcare. But we can provide guidelines and resources to make sure every pastor and their family are covered. The COM of the Presbytery of Chicago is having robust conversations regarding ways to cover pastors and protect their families while making sure congregations do not experience unmanageable hardships.
COM is committed to making sure every installed pastor and family are covered by the medical plan. Furthermore, when a church is searching for a new pastor, the PNC must demonstrate affordability for the pastor and family. The congregation and pastor are responsible for determining the most affordable action that will provide the best coverage. Each congregation will determine if other insurance is available through the pastor’s spouse. Each pastor will determine if utilizing the insurance of a spouse is what is best for their family. A full discussion should be had regarding premiums, deductibles, and out-of-pocket limits for the family.
Also, every congregation with a non-installed pastor (stated supply, interim/transitional) working 20 hours or more per week should offer health insurance for the pastor. COM will examine each congregation on a case-by-case basis to determine if coverage should also be offered to the pastor’s family.
COM is preparing to provide financial resources for congregations that experience hardship because of the new medical packages. The session should meet with the COM liaison to explore various options and packages. Most congregations will save money through the new plans.
Finally, if a congregation saves money because of the new healthcare plans, COM recommends those funds be used for the benefit of the pastor or for the ministry of the church. The savings could be used for a pastor’s education, retreat, bonus, added to a 403b, or for that ministry idea you’ve been wanting to try but haven’t had the funds! COM hopes a church resists the idea of using the funds to offset a deficit or put the savings in the bank. The change in plan is not designed to balance the budget on the back of the pastor.
This blog is only scratching the surface. Pastors and congregations are facing many options and challenges. We are at the beginning of the conversation. As part of an effort to gain a deeper understanding of available options and choices, we will be scheduling several group luncheons with pastors and key church leaders. These luncheons will be hosted by the presbytery and include Board of Pensions representation. By working together, we can guide our congregations, validated ministries, and pastors to a new and fruitful horizon. I look forward to hearing your thoughts and ways we can work through these challenges together.
Rev. Dr. Craig Howard
