Dues scenario: Meet Co-Pastors Carmen and Jesse
Installed pastors at a congregation with families
Co-pastors Carmen and Jesse are installed in a congregation, each having an effective salary of $75,000. Carmen’s spouse, Parker, is an executive with a regional bank, and they have no children. Jesse’s spouse, Blake, works part-time in food service, and they have a two-year-old toddler, Quinn. Both Pastors Carmen and Jesse are currently enrolled in Pastor’s Participation at a congregational cost of $58,500 in 2024.
For 2025, Pastors Carmen and Jesse are eligible for the Congregational Pastors Package or Transitional Pastor’s Participation. What questions should the congregation consider when deciding between these two dues packages?
- Which of these dues packages would better meet the needs of the congregation and Pastors Carmen and Jesse?
- What is the cost of each package?
- If the Congregational Pastors Package is offered, will medical coverage for Carmen’s spouse, Parker, and Jesse’s spouse and child, Blake and Quinn, be provided and will the congregation cover some or all of the cost?
The following steps will help the pastors’ congregation decide which dues package to offer. Use this chart in steps 2 and 3 to determine costs.
| Congregational Pastors Package | Transitional Pastor's Participation | ||
|---|---|---|---|
Member-only | 16% of effective salary | Family coverage | 33% of effective salary |
+ Children | $8,950 | ||
+ Spouse | $11,000 | ||
+ Family | $20,600 | ||
Calculate the current amount the congregation is paying for Pastor’s Participation for Pastor Carmen and Pastor Jesse, including full-family medical coverage and income protection benefits:
Pastor’s Participation family medical
Effective salary of $75,000
x 0.29 (2024 medical rate)
= $21,750 (2024 medical dues)
Pastor’s Participation income protection
Effective salary of $75,000
x 0.10 (2024 income protection rate)
= $7,500 (2024 income protection dues)
Pastor’s Participation family medical and income protection
Add $21,750 (2024 medical dues)
+ $7,500 (2024 income protection dues)
= $29,250 (total benefits cost to the congregation for each pastor)
x 2
= $58,500 (total benefits cost to the congregation for both pastors)
Calculate 2025 dues for the Congregational Pastors Package for Pastor Carmen’s Member-only medical coverage and medical coverage for Parker:
2025 Congregational Pastors Package dues
Member-only medical
Effective salary of $75,000
x 0.16 (Member-only medical rate)
= $12,000 (Member-only medical dues)
Member + Spouse medical
Effective salary of $75,000
x 0.16 (Member-only medical rate)
= $12,000 (Member-only medical dues)
+ $11,000 (Spouse medical dues)
= $23,000 (Member + Spouse medical dues)
Income protection
Effective salary of $75,000
x 0.10 (income protection rate)
= $7,500 (income protection dues)
Member-only medical and income protection
Add $12,000 (Member-only medical dues)
+ $7,500 (income protection dues)
= $19,500 (total cost to the congregation)
Member + Spouse medical and income protection
Add $23,000 (Member + Spouse medical dues)
+ $7,500 (income protection dues)
= $30,500 (total cost)
Calculate 2025 Congregational Pastors Package dues for Pastor Jesse’s Member-only medical coverage, family medical coverage for Blake and Quinn, and medical coverage for only Quinn:
2025 Congregational Pastors Package dues
Member-only medical
Effective salary of $75,000
x 0.16 (Member-only medical rate)
= $12,000 (Member-only medical dues)
Member + Family medical
Effective salary of $75,000
x 0.16 (Member-only medical rate)
= $12,000 (Member-only medical dues)
+ $20,600 (Family medical dues)
= $32,600 (Member + Family medical dues)
Member + Children medical
Effective salary of $75,000
x 0.16 (Member-only medical rate)
= $12,000 (Member-only medical dues)
+ $8,950 (Children medical dues)
= $20,950 (Member + Children medical dues)
Income protection
Effective salary of $75,000
x 0.10 (income protection rate)
= $7,500 (income protection dues)
Member-only medical and income protection
Add $12,000 (Member-only medical dues)
+ $7,500 (income protection dues)
= $19,500 (total cost to the congregation)
Member + Family medical and income protection
Add $32,600 (Member + Family medical dues)
+ $7,500 (income protection dues)
= $40,100 (total cost)
Member + Children medical and income protection
Add $20,950 (Member + Children medical dues)
+ $7,500 (income protection dues)
= $28,450 (total cost)
Calculate 2025 dues for Transitional Pastor’s Participation:
2025 Transitional Pastor's Participation dues
Member + Family medical
Effective salary of $75,000
x 0.33 (Family medical rate)
= $24,750 (Family medical dues)
Income protection
Effective salary of $75,000
x 0.10 (income protection rate)
= $7,500 (income protection dues)
Member + Family medical and income protection
Add $24,750 (2025 medical dues)
+ $7,500 (2025 income protection dues)
= $32,250 (total cost to the congregation for each pastor)
x 2
= $64,500 (total cost to the congregation for both pastors)
Compare 2025 dues for the Congregational Pastors Package, plus dependent coverage, to Transitional Pastor’s Participation:
Pastor Carmen
- Congregational Pastors Package (Member-only) = $19,500
- Congregational Pastors Package (Member + Spouse) = $30,500
- Transitional Pastor’s Participation = $32,250
Pastor Jesse
- Congregational Pastors Package (Member-only) = $19,500
- Congregational Pastors Package (Member + Children) = $28,450
- Congregational Pastors Package (Member + Family) = $40,100
- Transitional Pastor’s Participation = $32,250
The congregation may need to consider whether medical coverage is available elsewhere for each pastor’s spouse and for Jesse’s child.
For Pastor Carmen, the Congregational Pastor’s Package may make the most sense in 2025 since it is less expensive than Transitional Pastor's Participation, regardless of whether Carmen’s spouse has coverage available elsewhere. If coverage is available for Carmen’s spouse elsewhere, Member-only medical coverage may be the better option for Pastor Carmen.
For Pastor Jesse, if coverage is available elsewhere for their spouse and/or child, providing medical coverage through the Congregational Pastors Package may make more sense. If Pastor Jesse’ spouse and child need medical coverage, Transitional Pastor’s Participation may be the better option for 2025. Keep in mind that the dues for Transitional Pastor’s Participation will increase in 2026 and 2027, and this package will sunset on Dec. 31, 2027.
In both cases, the congregation can also consider whether to pay for all of the cost of dependent coverage or share the cost with Pastors Carmen and Jesse.
Congregations and ministers can use the 2025 Decision Guide for Minister Benefits to calculate and compare 2025 eligibility and costs for the Congregational Pastors Package, Transitional Pastor’s Participation, and the Covenant Package.
Pastor Carmen and Jesse and their congregational leaders should engage in a conversation about the options available to them. The Church Consultant for the region can assist this congregation in faithful decision-making. Co-pastors Carmen and Jesse can also call 800-PRESPLAN (800-773-7752) (TTY: 711) to speak with a Board of Pensions representative specially trained in this information and decision-making.