Watching the nightly news makes clear that the health care debate in our nation is an emotional topic. Lots of statements and suppositions. Polarizing discussions and shouting matches. The debate is fueled by a lack of specifics and lots of accusations. This topic concerns a lot of people who want to know what the impact will be on their own personal situation, what changes will occur, and who will pay.
I have been concerned about health care for over 40 years. I have served as a financial consultant for dozens of ministers. I have helped preachers prepare income taxes, I have consulted with and advised churches. I think my educational background in mathematics made this a natural area of interest–and the fact that I was also involved in ministry.
The first church I worked with paid me a weekly amount ($100) and it was up to me to decide where and how to spend it–no auto or expense allowance, no health care allowance, no nothing!
When Jan and I moved to our second church, they paid the health care premium and were responsible for it even when it went up. It was definitely a benefit–non taxable and with no impact on salary. Ditto the third church–the church participated with a group of area churches and the health care benefit was a benefit that had nothing to do with my personal remuneration.
From that point on, through almost 35 years of ministry, my own personal health care experience in ministry has been constant. A church sets the amount they are willing to pay for ministerial services and I get to decide how to divvy it up–salary, housing allowance, ministerial expenses, allowable benefits including health care. I will say that this procedure has had the benefit of allowing appropriate tax treatment; I will also observe that there is seldom as much in the “pot” as a church thinks there is once the income taxes, self-employment taxes, ministerial expenses and benefits are paid (all items that are paid “pre-take home” for most folks).
I share this history as background for my concern about health care and other benefits for ministry families. My concern is personal, but I think it is not ‘sour grapes’. Jan and I have been blessed in numerous ways by churches and by the people of God, and have survived through lean times and good. Many ministers, however, are not so fortunate. A recent ministerial remuneration survey demonstrates the problem and the challenges. Asked about financial support or benefits provided by their congregations above and beyond salary, the ministers surveyed receive the following:
- Auto Expense Allowance 20%
Housing Allowance 50%
Health Care 55%
Dental Care 21%
Retirement 45%
Paid Vacation 90%
No Benefits 16%
Before I specifically address health care and the church, let me address several things that concern me about these results.
- (1) I am amazed that so few ministers (20%) receive reimbursement for ministerial expenses, or that such reimbursement is limited to auto. My personal experience is that using a personal auto for ministry, books, subscriptions, meetings, entertainment, and related expenses easily consumes 15-25% of the average remuneration package. My own experience also says that such items are essential if ministry is to be done well.
(2) I am amazed that so few ministers receive a housing allowance (50%), especially when such an allowance applies if the minister is paying any housing expenses, including utilities and personal furnishings in an unfurnished church-owned parsonage.
(3) I am amazed that so few ministers receive help toward retirement (slightly less than 50%). (I suppose that I could say I have not received these first three items when I had to designate them out of a total remuneration, but I have been blessed by churches who were willing to follow my suggested designations toward expenses, housing, and benefits.)
(4) I am also amazed that 10% of ministers do not receive any vacation and that about 1/6 do not receive any benefits–perhaps these are in the first year of ministry or are part-time. I have encouraged churches to realize that a minister who changes location should not forfeit tenure, at least not entirely. We are still working for the same organization and cause, and should be able to retain at least a percentage of our past tenure and experience.
In light of the current health care debate, that barely over 1/2 of the ministers in the survey receive health care help is inexcuseable. I know some ministers have spouses with health care coverage, but the stark reality remains. Half of our ministers are extremely vulnerable when it comes to health care and health problems, and probably well over half are insured through private plans (as Jan and I have always been except for the years when we were in university systems, and in the third ministry setting described above where the church was in a group of churches).
Paul wrote (concerning elders), “The leaders who direct the affairs of the church well are worthy of double honor, especially those whose work is preaching and teaching” (1 Tim. 5:17). Such is certainly true also of those who minister and serve. I suggest that we would have more ministers eagerly following their hearts in service to God through ministry if the challenge of caring for the health care concerns of their families were taken as seriously by the church as by many secular employers.