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By Erik Alsgaard
UMConnection Staff

As of December 31, 2013, 30 churches in the Baltimore-Washington Conference were behind in paying their pastor’s and lay employees’ health insurance premiums. The total arrearage: $275,053.

As of the emd of December 2013, 41 churches were behind in paying their pastor’s and lay employees’ pension benefits. The total: $332,499.

Combine the two, and you reach well over one-half of a million dollars: $607,552.

This is according to the Rev. Jackson Day, chair of the Baltimore-Washington Conference’s Board of Pension and Health Benefits. The Board recently heard a preliminary report from an ad-hoc Task Force, created by Bishop Marcus Matthews

The Task Force includes Day, two district superintendents, the Revs. Cynthia Moore (Baltimore Metropolitan), and Joe Daniels (Greater Washington); as well as the Conference Treasurer, Paul Eichelberger; and the Conference Benefits Officer, Francess Tagoe. 

The Task Force is looking at ways that arrearage problems can be addressed earlier so that balances are not allowed to pile up.  Especially important is to find ways to empower vulnerable congregations to address financial problems before they escalate.

A process was recently outlined by the Task Force into several concrete steps. First, if a church is more than 30 days past due in either health or pension benefit payments they will receive a letter requesting an explanatory response. If a church goes 60 days overdue, another letter will be sent, but this letter requires the creation of an “Action Plan” to remedy the situation. The Action Plan will be created with the district superintendent acting as the facilitator, and the Director of Vibrant Communities, the Rev. Andy Lunt, also involved. At present, letters go out to congregations only when they fall 90 days behind in their payments.

“The Action Plan may include many things,” said Day, “including training and coaching for church leaders.” A lien may also be placed on church property, he noted.

A new wrinkle has been proposed for the process. According to the plan, churches that are 60 days behind will, on July 1, have the salary of the pastor reduced to the conference minimum if she/he continues in appointment to that congregation. Health insurance benefits will continue, but only for the pastor as if he/she were a single person; no family coverage will be extended and insurance for lay employees would be discontinued.

The last step in the proposed process would be in the event that a local church is not willing or able to develop an Action Plan. Here, a district superintendent would then be authorized to conduct a formal assessment of the “potential of the church,” in accordance with ¶213 of the 2012 Book of Discipline.

After being adopted, in principal, by the Board, the proposed process will now be reviewed by the Bishop and the Cabinet.

Pension and health benefits are part of the pastor’s financial compensation, Tagoe said. By not paying this portion of the benefits, the pastor is the one shorted.

The General Board of Pension and Health Benefits – based in Evanston, Ill., which actually administers the plan – send a bill to the Conference, said Tagoe. The Conference pays the bill in full each month and then, in turn, sends out bills to local churches. In effect, local churches are reimbursing the Conference for money already spent.

And when churches don’t pay? The shortage is made up from reserves accumulated over several years, said Eichelberger.

And when churches don’t pay, there has to be a method of holding the church and/or pastor accountable, said Daniels. “We don’t want to shame churches into paying,” he said. “That doesn’t work. But how do you set up a system where people are held accountable?”

The Task Force agreed that better and more frequent communications with churches and pastors who are falling behind in their payments was needed. “The Task Force recognizes that there are some congregations which are nearing the close of their time of faithful service,” said Day. “Facing these issues as early as possible can open the door for more creative possibilities.”

“Even more important,” said Day, “are the churches which are – or could be – actively engaged in important ministry. They are serving their community. They are making disciples of Jesus Christ for the transformation of the world. But their resources don’t match their vision or their needs. The Action Plan process is intended to pull together the vision and energy of the congregation with training and resources that Conference leadership may be able to identify so that the church is able to express its witness – and pay its bills.

“When a congregation can assess their potential for increased service to their community, and can communicate their prospects to their district superintendant, then every possible resource should be steered toward that congregation to assist them,” said Day.