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Effective Salary

View median salaries for teaching elders and employees, and read about 2016 Salaries by Synod, Congregation Size, and Years of Service.

Employers must report effective salary for each Benefits Plan member to the Board of Pensions for benefits and dues purposes. Effective salary includes various types of compensation and/or reimbursements paid by employers 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.

Effective salary determines employer dues and member benefits for certain plan coverage. The use of effective salary builds into dues a degree of cost subsidization for lower paid members and their employers. Effective salary determines

  • pension dues and pension credit accrual;
  • death and disability dues and benefits;
  • medical dues under Pastor’s Participation; and
  • deductibles and copayment limits under the medical PPO option.

Salaries must be confirmed at the beginning of each year, even if there is no change. Employers can update/confirm salaries online through Benefits Connect.

To accurately calculate and report effective salary, an employer needs to know which compensation to include. The total effective salary calculator, available on pensions.org, is designed to help with this task, as is Understanding Effective Salary.

Salary Changes

Salary changes must be reported online through Benefits Connect within 60 days of the effective date of the change. Salary changes more than 60 days before or after the change will not be accepted through Benefits Connect. Timely reporting ensures that an employer is properly invoiced and employees receive the appropriate benefits.