RESOLUTION ADOPTED BY 2013 DIOCESAN CONVENTION ON

ESTABLISHING MINIMUM CLERGY COMPENSATION

July 19, 2013

RESOLVED, That the 181st Convention of the Diocese of Vermont approve the recommendation of the Diocesan Council that the minimum full time stipend for priests receiving compensation in the Diocese of Vermont be increased by 1.5% for the year 2014 to $39,095 and be applied to the diocesan schedule of mandatory minimum cash salaries, and that travel allowance be reimbursed at the current IRS standard.

PROPOSER:  Diocesan Council EXPLANATION:

Canon 6.7 of the Episcopal Diocese of Vermont requires that Diocesan Council annually review the minimum stipend for full‐time equivalent clergy and the travel allowance and make recommendations to the Convention. Such a minimum shall be binding on all parishes and missions upon ratification of the Convention. For 2014 salaries, a 1.5% increase reflects the average of the current Cost of Living Adjustment (COLA) of the Northeast Urban Size B/C Cities Index and the United States Size D Cities Index published in Table 10, June 2013.

In 2012 the Diocesan Convention reaffirmed the following norms for determining minimum clergy compensation as put forth in the 2006 Clergy Compensation Resolution:

• that cash compensation be based upon credited years of service in church ministry as established by the Church Pension Fund employing the Schedule of Mandatory Minimum Cash Salaries (see below), which includes an increase of 1.6% for each year of credited service plus the 2013 Cost of Living Adjustment (COLA) of 1.5%;

• that the Mandatory Minimum Cash Salaries be adjusted annually to reflect the COLA based on an average of Consumer Price Index (CPI) of Northeast Urban Size B/C Cities Index and the United States Size D Cities Index as published in the June Consumer Price Index, Table 10, by the U.S. Department of Labor of the Convention year;

• that in addition to the cash salary, an annual housing equity allowance of at least seven percent (7%) of the Year 1/Level 1 from the Schedule of Mandatory Minimum Cash Salaries be provided for those clergy living in church furnished housing.

According to the Church Pension Fund (“The 2010 Church Compensation Report,” reflecting 2010 data), the national average median compensation for full‐time Episcopal clergy was $70,931, up from $69,219 in 2009. This figure includes cash stipend, fair‐rental value of housing, utilities and payment of one‐half of the Social Security/Medicare (SECA) tax.

Approval of this resolution will change the Beginning Level 1 minimum cash stipend from $38,517 to $39,095, thus raising the minimum full‐time compensation package to approximately $54,711 [$39,095 cash stipend, plus housing and utilities of $11,728* (at 30% of cash), plus SECA of $3,888 (at 15.3%/2 of cash, housing, and utilities.)]

*This minimum housing amount is based on 30% of the minimum cash salary. This minimum amount may not reflect an accurate amount based on the actual expenses for housing and utilities in Vermont. Also the pension amount is not included in the compensation amount.

A 2006 Clergy Compensation Resolution adopted a 1.6% increase for each year of credited service beyond one year. The 1.6% increase has been included in subsequent compensation schedules, with the exception of the schedule adopted in 2011 which did not include any increase either for COLA or level of service. This exception was due to 2011 economic conditions in our parishes and the world, a desire to stand in solidarity with the Council’s decision not to increase Diocesan Ministry Support Team salaries, and as a subcommittee of Diocesan Council continued to invest minimum salary compliance within our diocese.

Diocesan Summary of Clergy Salaries 2012 for the Diocese of Vermont

Total parishes within the diocese                                  48

Parishes with clergy paying into CPG                         25

(other than retired, supply or interim)

Please Note: Church provided housing or a housing allowance, utilities, equity allowance, SECA contribution and pension are all parts of clergy compensation packages but this comparison focuses solely on the salary/stipend reported by CPG and how that compares to our diocesan salary schedule.

101.6 – 116.4%

Salary/Stipend below Diocesan minimum                     6

57.56 – 80.83%

101.6 – 170.59%

Salary/Stipend below Diocesan Standard                                                                           7

13.6 – 98.98%

• Salary/stipend is the cash amount paid to a clergy person serving in a parish. Total clergy compensation equals salary/stipend plus church provided housing or a housing allowance,