Median and effective salary
Effective salary includes various types of compensation and/or reimbursements paid by congregations and employers to ministers of the Word and Sacrament and 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.
Median effective salary
The Board uses salary information reported to it as of May 1 of each year to set the
median effective salary for the next year. When a member's annual effective salary is less than the median, Death and Disability Plan benefits and pension credits are calculated based on the median effective salary.
The median effective salary is prorated for work schedules of less than 35 hours a week.
The median effective salary for 2025 is $70,000.
Reporting effective salary
Employers must report the annual effective salary for each Benefits Plan member to the Board of Pensions. Effective salary is used in calculating employer dues and member benefits.
Effective salary determines:
- pension dues and pension credit accrual
- death and disability dues and benefits
- medical dues under Congregational Pastors Package and Transitional Pastor's Participation
- deductibles and medical out-of-pocket maximums under the PPO option
To accurately calculate and report effective salary, an employer needs to know which compensation to include. The Total Effective Salary Calculator is designed to help with this task, as is Understanding Effective Salary.
Reporting salary changes
Salary changes must be reported online through Benefits Connect within 30 days of the effective date of the change. Timely reporting ensures that congregations and employers are properly invoiced, and ministers and employees receive the appropriate benefits.