Dues scenario: Meet Pastor Alex
Installed pastor at a congregation with a family
Pastor Alex is the only installed pastor at a congregation, has an effective salary of $45,000, and is currently enrolled in Pastor’s Participation, costing the congregation $17,550 in 2024. Alex’s spouse, Jamie, has a full-time job as a public-school educator. Alex and Jamie are parents to two children — Sam, who is in first grade, and Robin, who was born just last month.
For 2025, Pastor Alex is eligible for the Congregational Pastors Package and 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 Pastor Alex?
- What is the cost of each package?
- If the Congregational Pastors Package is offered, will medical coverage for Jamie, Sam, and Robin be provided, and will the congregation cover some or all of the cost?
- Does Jamie’s employer provide medical benefits for Jamie, Sam, and Robin — or just Jamie?
The following steps will help Pastor Alex’s 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 Alex, including full-family medical coverage and income protection benefits:
Pastor’s Participation family medical coverage
Effective salary of $45,000
x 0.29 (2024 medical rate)
= $13,050 (2024 medical dues)
Pastor’s Participation income protection
Effective salary of $45,000
x 0.10 (2024 income protection rate)
= $4,500 (2024 income protection dues)
Pastor’s Participation family medical and income protection
Add $13,050 (2024 medical dues)
+ $4,500 (2024 income protection dues)
= $17,550 (total benefits cost to the congregation)
Calculate 2025 dues for the Congregational Pastors Package for Pastor Alex’s Member-only coverage, for family medical coverage for Jamie, Sam, and Robin, and for medical coverage for Sam and Robin only:
2025 Congregational Pastors Package dues
Member-only medical
Effective salary of $45,000
x 0.16 (Member-only medical rate)
= $7,200 (Member-only medical dues)
Member + Family medical
Effective salary of $45,000
x 0.16 (Member-only medical rate)
= $7,200 (Member-only medical dues)
+ $20,600 (Family medical dues)
= $27,800 (Member + Family medical dues)
Member + Children medical
Effective salary of $45,000
x 0.16 (Member-only medical rate)
= $7,200 (Member-only medical dues)
+ $8,950 (Children medical dues)
= $16,150 (Member + Children medical dues)
Income protection
Effective salary of $45,000
x 0.10 (income protection rate)
= $4,500 (income protection dues)
Member-only medical and income protection
Add $7,200 (Member-only medical dues)
+ $4,500 (income protection dues)
= $11,700 (total cost to the congregation for Member-only coverage)
Member + Family medical and income protection
Add $27,800 (Member + Family medical dues)
+ $4,500 (income protection dues)
= $32,300 (total cost for Family coverage)
Member + Children medical and income protection
Add $16,150 (Member + Children medical dues)
+ $4,500 (income protection dues)
= $20,650 (total cost for Children coverage)
Calculate 2025 dues for Transitional Pastor’s Participation:
2025 Transitional Pastors Participation package dues
Member + Family medical
Effective salary of $45,000
x 0.33 (Family medical rate)
= $14,850 (Family medical dues)
Adjust this to the minimum dues rate of $15,000
Income protection
Effective salary of $45,000
x 0.10 (income protection rate)
= $4,500 (income protection dues)
Member + Family medical and income protection
Add $15,000 (2025 medical dues)
+ $4,500 (2025 income protection dues)
= $19,500 (total cost to the congregation)
Compare 2025 dues for the Congregational Pastors Package, plus dependent coverage, to Transitional Pastor’s Participation:
- Congregational Pastors Package (Member-only) = $11,700
- Congregational Pastors Package (Member + Children) = $20,650
- Congregational Pastors Package (Member + Family) = $32,300
- Transitional Pastor’s Participation = $19,500
Beyond any coverage Jamie’s employer may offer, the congregation may need to consider whether medical coverage is available for the spouse and children elsewhere. If coverage is available elsewhere, providing Member-only medical coverage through the Congregational Pastors Package may be the better option.
The congregation can also consider whether to pay for all of the cost of dependent coverage or to share in the cost with Pastor Alex.
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 Alex and her 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. Pastor Alex 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.
If dependent medical coverage is not available through Jamie’s employer or elsewhere, Transitional Pastor’s Participation may be the option for Pastor Alex and her family 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.