2025 Benefits Plan
Why update the Benefits Plan now?
The plan was designed 40 years ago for a different type of pastoral leadership and a different family structure. Its dues structure is outdated and does not support today’s congregations.
Approximately 30% of ministers ordained since 2007, the very people the plan is meant to embrace, are not enrolled in the Benefits Plan, with women representing 63% of those not covered through the Board. Small congregations, where resources are scarce, are also affected. Only 28% of churches with 150 or fewer members have an installed pastor. For African American churches, only 20% have installed pastoral leadership, regardless of size.
We must act now to address the needs of the changing Church.
Will the Defined Benefit Pension Plan be affected?
No. The updated dues structure will not affect the design of the pension plan, which remains strong. The funded status of the plan was 156% at year-end 2023, enabling our Board of Directors to grant a 4.5% experience apportionment, effective July 1, 2024. This marks the 12th consecutive year with an experience apportionment, yielding a cumulative increase of 46.6% since 2013.
How does the 2025 Benefits Plan address the needs of those who serve congregations on a part-time basis?
The Board of Pensions is committed to serving congregations, their employees, and ministers of the Word and Sacrament with benefits and programming that support holistic well-being. For 2025, the Covenant Package or Congregational Pastors Package may be made available to congregational leaders working more than 20 hours per week, regardless of ordination status. The Covenant Package may be offered to any employee working more than 20 hours per week. We have a team of Church Consultants who can help congregations make the most effective use of available benefits. Find the Consultant for your region.
Will medical coverage, such as the network, copays, or coinsurance, change in the 2025 Benefits Plan?
Medical Plan coverage, including the network, copays, and coinsurance, will remain the same in 2025.
Will the Benefits Plan remain rooted in A Theology of Benefits?
Yes. The Benefits Plan will remain rooted in A Theology of Benefits, detailed in the Church’s values, specifically: community nature, compassion, justice, and fair compensation.
What kinds of subsidies is the Board thinking about for the 2025 Benefits Plan?
The Board of Pensions is committed to providing transitional support for employers and members. Employers may choose to provide Transitional Pastor’s Participation to any minister who is enrolled in Pastor’s Participation as of Dec. 31, 2024. This option will sunset Dec. 31, 2027.
We have dedicated funding to support the continuing investment in innovative ministry solutions, including new forms and contexts as ideas surface from within the Church.
Dues packages and eligibility
Does the Board of Pensions plan to stop offering dependent coverage?
We will continue to offer coverage for spouses and eligible children. For members enrolled in the new Congregational Pastors Package, our Board of Directors has approved allowing employers to choose whether to cover some or all of the cost for eligible family members.
Providing family coverage would be based on the needs of the congregation and of the congregational pastoral leader. For example, if a minister’s spouse is employed, their employer may offer medical coverage that would be a better financial choice for the minister’s family than the PPO coverage available through the Board. If family members will be covered by the Board, they must choose the same Medical Plan option as the covered member has chosen.
Would ministers be able to choose from the three Medical Plan options available through the Board — the PPO, EPO, and HDHP?
Pastors in installed positions are required to be enrolled in the Congregational Pastors Package, which includes PPO coverage.
Congregational pastoral leaders scheduled to work 20 hours or more weekly, including PC(USA) ministers and commissioned pastors, may be offered this package by their employer.
Ministers not enrolled in the Congregational Pastors Package who work 20 or more hours weekly would be able to select from the Medical Plan options their employer offers.
Would a PC(USA) minister serving a church of another denomination be eligible for the Congregational Pastors Package?
The Congregational Pastors Package is designed to support PC(USA) installed pastors and congregational pastoral leaders serving PC(USA) congregations. The Covenant Package and benefits plan offerings are also available to PC(USA) ministers of the Word and Sacrament serving in PC(USA) congregational and non-congregational settings, if their employer offers those benefits.
Can members or employees of a PC(USA) congregation enroll in the Benefits Plan?
Because the Benefits Plan is an employer-sponsored plan, benefits can only be offered by employers to employees, not members of a congregation. Employees are eligible to enroll in the benefits offered to them by their employer during enrollment periods.
Would a minister or commissioned pastor who works for a congregation and a mid council or validated ministry be eligible to participate in the Congregational Pastors Package?
A PC(USA) minister or commissioned pastor working for two or more employers (also known as a split service) is eligible for the Congregational Pastors Package if they are scheduled to work 20 hours or more per week and:
- one of the employers is a PC(USA) congregation
- that employer offers the Congregational Pastors Package
I am currently enrolled in Pastor’s Participation but do not serve in a PC(USA) congregation. What are my benefit options for 2025?
Ministers of the Word and Sacrament who do not serve a PC(USA) congregation and are enrolled in Pastor's Participation as of Dec. 31, 2024, may be offered Transitional Pastor’s Participation or the Covenant Package and any of the benefits offerings in the Health & Wellness Plans.
How can I determine which dues package best meets my needs and the needs of my congregation?
Pastoral and congregational leaders — including business administrators, chairs of Personnel Committees, Committees on Ministry, sessions, presbyteries, and mid councils — can contact their region’s Church Consultant to assist in faithful decision-making. The 2025 Decision Guide for Minister Benefits is a helpful tool to assist congregations and ministers with calculating dues for next year for the Covenant Package, Congregational Pastors Package, and Transitional Pastor’s Participation.
Should a congregation un-install a pastor to save on medical dues?
The Board wants all congregations and ministers to engage in faithful decision-making and select the dues package that best meets their needs. If a minister needs to continue full family medical coverage, Transitional Pastor’s Participation may be the best choice. If a minister doesn’t need dependent coverage, the Congregational Pastors Package may be a better choice.
Because the dues structures for both Transitional Pastor’s Participation and the Congregational Pastors Package are income sensitive and tied to a percentage of effective salary, there is no advantage for either the minister or the congregation in uninstalling a minister. Being installed is the best option for a minister as it provides the security and support to fully devote themselves to leading the congregation on its journey of faith.
Are congregations with more than one pastor required to enroll all the pastors in the same dues package?
Congregations with more than one pastor may offer each pastor a different package and the dependent medical coverage that is best suited to their needs and the needs of the congregation.
How does the 2025 Benefits Plan impact those who are in the Pathways to Renewal or Benefits Grants for Organizing Pastors and Evangelists dues incentive program?
Congregational pastoral leaders in these programs can enroll in Transitional Pastor’s Participation or the Congregational Pastors Package.