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CHURCH OF THE UNITED BRETHREN IN CHRIST
Agreement of Understanding
This agreement of understanding is between:
This agreement presents the terms of the pastoral appointment
by the stationing committee. It seeks to reduce 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 ____________________________________.
Salary
The annual salary is $ ______________________ and will be paid
to the pastor (circle one)
Social Security
State the amount of Social Security the church will pay the pastor
this year. $______________________
If the pastor has opted out of the Social Security system, state how this benefit will be paid instead of payment into Social Security.
_________________________________________________________________________
_________________________________________________________________________
Insurance
State the health insurance coverage that is provided by the church
for the pastor and family.
__________________________________________________________________
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. (The treasurer withholds the pastor's percentage via a Salary Reduction Agreement and sends it directly to the denominational treasurer each month.)
Housing
Will the church provide a parsonage or a housing allowance that
will enable the pastor to rent or purchase a home? Yes No
State the fair monthly rental value of the house or the monthly
housing allowance provided for the pastor:
Rental value: $______________________________
Monthly housing allowance: $______________________________
State any expectations or restrictions concerning the parsonage (if any).
__________________________________________________________________________________________
Utilities
What utilities will the church pay as part of the housing package?
_____________________________________
__________________________________________________________________________________________
How are the utility bills paid?
___ Paid by the church treasurer
___ The pastor pays the utility bills and submits an expense voucher.
___ Other (explain).
___________________________________________________________________________________________
Vacation
State the number of weeks of vacation per year.
__________________
(Standard guideline: 2 weeks for 1-5 years of service; 3 weeks for 6-10 years; 4 weeks for 11-20 years; 5 weeks for 21+ years)
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 pastors 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 pay ______________ cents per mile for a maximum of ______________ miles per year for ministry travel.
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). Note: the IRS states that reimbursement of expenses cannot be deducted from salary.
______________________________________________________________________________________________
______________________________________________________________________________________________
Professional Ministry Expenses
What professional ministry expenses will the church cover?
- Home entertainment
- Professional dues
- Continuing education
- Periodicals
- Civic activities
- Book allowance
- Work-related meals
- Equipment
- National conference 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 or as a fillable Word form.
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