Agreement of Understanding

This agreement of understanding is between:

Church Name: _____________________________________________________

Pastor's Name: _____________________________________________________

This agreement articulates the terms of the pastoral appointment by the stationing committee and reduces the possibility of wrong assumptions/misunderstandings on the part of the pastor or the parish. The goal is to have a healthy working relationship between pastor and congregation.

Starting Date

Employment will begin on ____________________________________.

Salary

The annual salary is $ ______________________ and will be paid to the pastor (circle one)

• weekly
• bi-weekly
• monthly

Social Security

State the amount of Social Security the church will pay the pastor this year. $______________________

Has the pastor opted out of the Social Security system?

• yes
• no

If yes, state how this benefit will be paid to the pastor instead of a payment into the Social Security system.

_________________________________________________________________________

_________________________________________________________________________

Health Insurance

State the health insurance coverage that is provided by the church for the pastor and family.

__________________________________________________________________

Disability Insurance

State the disability insurance coverage. ____________________________________

Pension

The denominational pension program is two-part: the Defined Benefit Plan and the 403(b) Tax Sheltered Annuity Plan.

1. State the amount the church will pay into the Defined Benefit Plan:

$______________________________

2. State the amount the church will contribute via a Salary Increase Agreement to the 403(b) TSA Plan.

$______________________________

Housing

Will the church provide a parsonage or a housing allowance that will enable the pastor to rent or purchase a home?

__________________________________________________________________

State the fair monthly rental value of the house or the monthly housing allowance provided for the pastor:

$______________________________

Utilities

What utilities will the church pay as part of the housing package? _____________________________________

__________________________________________________________________________________________

Are utility bills paid by the church treasurer, or does the pastor pay the utility bills and submit an expense voucher?

___________________________________________________________________________________________

Vacation

State the number of weeks of vacation the pastor will receive annually. __________________

How long does a pastor need to be at a church before receiving vacation? _______________

State any expectations of the pastor regarding vacation time. __________________________________________

__________________________________________________________________________________________

Continuing Education Budget

How much is the pastor’s annual continuing education budget? $_____________________

Moving Expense

State the moving arrangements (rental truck, professional mover) and who is responsible for expenses.

___________________________________________________________________________________

____________________________________________________________________________________

Travel Expenses for the Pastor

The pastor will be reimbursed for ministry-related travel at (circle one):

__________ cents per mile.

The current IRS rate

The maximum number of miles reimbursed each year: _________________.

How often does the pastor turn in travel expenses to the church treasurer? ____________________________

State any special arrangements regarding travel expense.

________________________________________________________________________________________

______________________________________________________________________________________________

Reimbursement Plan for Church Expenses

State the policy and procedure for the reimbursement of expenses incurred in the ministry. (The cost of ministry should be paid by the church).

______________________________________________________________________________________________

______________________________________________________________________________________________

Professional Ministry Expenses

What professional ministry expenses will the church cover?

• Home entertainment
• Ministerial luncheons
• Professional dues
• Continuing education
• Periodicals
• Civic activities
• Book allowance
• National c onference expenses
• Other: ____________________________________________________________

Review of Salary and Benefits

State when salary and benefits will be reviewed by the Personal Relations Commission/Board of Administration.

______________________________________________________________________________________________

Special Understandings (schooling, working spouse, pets, etc.)

______________________________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

Signatures

____________________________________________ ________________________
Chairperson of the PRC/Board Chairman / Date

____________________________________________ ________________________
Pastor / Date

____________________________________________ ________________________
Cluster Leader / Date

A copy of this agreement can be downloaded in PDF format.