View median salaries for 2017 here.
PC(USA) employing organizations need to report effective salary for each plan member to the Board of Pensions for benefit and dues purposes. Effective salary includes various types of compensation or reimbursements paid by churches and other employing organizations to installed pastors, other teaching elders, and other employees. Unique to the Board of Pensions, effective salary is not the same as the taxable income reported to the IRS or the Social Security Administration.
The Benefits Plan partially bases employer dues and member benefits on a member’s effective salary. It uses effective salary to build into its dues a degree of subsidization of costs for lower paid members (and their employers). Effective salary determines the following:
- accrued pension credits for members with pension coverage
- medical and pension dues for members with Traditional Program coverage
- death and disability dues and the benefits for all participating members
- dues for members with optional supplemental disability coverage
- medical deductible and copayment limits for all participating members
Salaries must be confirmed at the beginning of each fiscal year, even if there is no change. You can change current salaries by completing and submitting a Change of Salary form.
To accurately calculate and report effective salary to the Board, you need to know which compensation must be included. The Total Effective Salary Calculator, available on pensions.org, is designed to help with this task. You can also refer to Understanding Effective Salary (see Booklets and Publications, above right).
Reporting Salary Changes
Report salary changes or any other service changes to the Board within 30 days of their occurrence. Timely reporting ensures that your employing organization is properly invoiced and your members receive the appropriate benefits. You can report changes using a Change of Salary form.