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Monday, November 28, 2011
EPA Conference Treasurer Peter DiNofia announces the 2012 Church Budgets. Please click on the links below to access, save, and print this important information.
Below are reports links for each district. Please click on the link to your district to view church giving. This is live data and will refresh each time you open the document. Data is based upon cleared entry of payment either by ACH transfer of funds or received and entered check. If you notice a disparity in what was paid vs what appears on the report, please contact the accounting office, 1-800-828-9093, ext. 251.
This document provides explanation for the various apportionment funds and billed funds.
Apportionment Funds – 2012 Budget
Each pastor will receive a "budget schedule" and a copy of the budget narrative via U.S. Mail.
Clergy and Connection Database Admins: To access your church's full information, login to the Connection Database, go to My Contact Dashboard in the right sidebar, and scroll down to My Contacts/Organizations and click on the link to your church. Look for both tabs: Church Budget Planning and Next Years Budget. Look for both tabs: Church Budget Planning and Next Years Budget.
NARRATIVE for 2012 Church Budgets (printable version of information below)
In 2007 EPA initiated the apportionment formula. This formula is used to calculate the amounts for the Connectional Ministries Fund (CMF), World Service Fund (WSF) and General Church Fund (GCF). The apportioned amounts for each church are derived from data in the church annual statistics report. The statistics report is required to be completed by the General Church. The 2012 calculation uses total expenses paid from the 2010 church statistics report. The following items are deducted: capital expenses, principal and interest on debt, and apportionments paid. The result is the adjusted grand total paid (AGTP) for 2010. The next step is to add this to the AGTP for the two previous years (2009, 2008) and obtain a 3 year average. The final step is to apply a factor of 9.5% to the average.
For all churches in the conference, the total apportionment for the three funds in 2012 is $7.1 million, $200 thousand, or 2.7% less than the 2011 apportionment. The AGTP for 2010 and 2009 were $73.2 million and $71.7 million, respectively, both totals down approximately $6 million from 2008/2007.
Churches paid 84% of the apportioned amounts in 2010. The Conference Budget is funded through church receipts for CMF. The budget in 2011 is $3.5 million and 85% collections are needed to balance the budget. The budget has been reduced each year since 2009. We have been successful in balancing the budget the past two years. However, through August 2011, church receipts are 10% less than receipts from churches for the same period in 2010.
World Service and General Church Funds for the conference in 2011 and 2010 are flat at $2.7 million. In 2010, EPA paid $2.5 million or 92% of the total requested from GCFA. The goal is to pay these funds 100%. GCFA has reduced the amount requested from all conferences. For EPA in 2012, the total will be $2.6 million or 6% less than the 2011 amount.
The pension funds on the church remittance forms are for CRSP Defined Benefits, CRSP Defined Contribution, Direct Bill and Comprehensive Protection Plan or CPP.
In 2004 a new clergy pension plan was adopted. This new plan, Clergy Retirement Security Program (CRSP) went into effect January 1, 2007 replacing the Ministerial Pension Plan (MPP) that was in place since 1982. CRSP provides clergy with a secure monthly benefit as well as an account balance of accumulated investment funds. The Clergy Retirement Security Program consists of two elements:
· CRSP – Defined Benefits, Fund 0016
A defined benefit core element provides a secure monthly benefit for life based on two factors: the number of years of service and the denominational average compensation (DAC) at the year of retirement. The total due for EPA in 2012 is $2.3 million. This core element will be funded by assessing a composite cost to the church for clergy. Based on clergy compensation amounts and the total needed to pay this pension obligation we needed to increase the composite rate by 6.6%.
For 2012, the annual budgets will be as follows:
Full-time = $8,000
¾ time = $6000
½ time = $4000
¼ time = $2,000
CRSP – Defined Contribution, Fund 0017
A defined contribution core element provides a means of an account balance of invested funds. The clergy person determines the type of funds in which to invest. This element is funded by assessing 3% of the clergy person’s compensation (salary plus housing).
· Comprehensive Protection Plan, CPP, Fund 0020
In addition to CRSP, the church pays the Comprehensive Protection Plan (CPP) which provides death, disability and survivor benefits for clergy persons. This element is funded by assessing 3% of the clergy person’s compensation (salary plus housing).
The Direct Bill, on the church remittance form is comprised of Pre-1982 Pension Plan, Retiree Medical Insurance, Administrative expenses of the EPA Board of Pension and Health Benefits and an amount for “uncollectible” funds. The total for EPA in 2012 is $3 million, an increase of $1 million or 50%. Most of the increase is attributable to the Pre-1982 Pension amount which at $1.8 million represents 61% of the total. The EPA Board of Pensions and Health Benefits has paid 50% of the Pre-1982 payment obligation and the churches paid 50%. As a result of depleted reserves (30 years of payments as well as market conditions), The EPA Board of Pensions can no longer assist with this annual payment. Therefore, beginning in 2012, 100% will be billed to the local churches.
The amounts charged to each church are based on the apportionment formula.
The Health Insurance portion of the bill is comprised of several line items
Connectional Health Care Fund– This is an amount billed to every EPA local church, based upon a formula (equal to 0.42% of each church's Adjusted Grand Total Paid – with a minimum of $350 and a cap of $2,150) This amount includes the cost to support missional churches as designated by the cabinet, the cost to support clergy on Incapacity Leave, and 15% of the total amount needed to return the Conference Health Care Reserve Fund to within policy limits.
Mandatory Health Care – ($130) This is an amount charged to the local church for each eligible clergy member. This replaces the current Waiver Fee, and includes, enrollment in the Employee Assistance Plan and coverage for a $10,000 Life Insurance Plan
Voluntary Health Insurance – This is the cost for participation in the Eastern PA Conference Health Insurance Plan, and is billed as a composite rate for each clergy participant. At this time, our advisors are recommending an increase of 6.5% for 2012. We will communicate the final figures when they are available. Clergy are encouraged to make pre-tax contributions to their Health Saving Account. 2011 Composite Rate $17,360
Laity Health Insurance – Listed here are the 2011 rates. We will pass along the final figures for 2012 when available. For budgeting purposes, a 6.5% increase has been applied. In keeping with past billing for Laity, these amounts are billed to the local church, and the local church administers the participant billing.
Full Family $17,621
Employee + 1 $11,079
Employee 0nly $5,942
Laity HSA Funding – Internal Revenue Service regulations require that employers make comparable contributions to all participating employee’s Health Savings Accounts. (The contributions must be the same for the same category of employee.) The conference will bill the local church for the deposit into a Health Savings Account for any lay employee at the local church. (Single = $1,000, All Others = $2,000)
Property and Liability
The Conference Board of Trustees is responsible for securing the best group insurance at an affordable price. This includes both Property and Liability and Workers Compensation insurances for all conference agencies and local churches. Participation is mandatory by action of annual conference to ensure appropriate coverage and competitive premiums.
Premium savings for Property and Liability were achieved by moving to a new carrier, Church Mutual. Total premiums in 2012 will be $386 thousand less than 2011 premiums. We have passed these savings on and most churches will see a reduction of 13% in 2012. We did not include a factor for “uncollectibles”. The Conference has been paying the bill for churches that do not pay the property and liability insurance. This practice cannot continue in 2012. The Conference assets have been depleted and there are no reserves remaining to continue subsidizing churches that do not pay.
The Conference Board of Trustees formed a Safety Committee in efforts to reduce the cost for workers compensation insurance. This committee is responsible for developing strategies to prevent workplace injuries. The committee is informed every time there is an accident reported to our insurance carrier, Eastern Alliance Insurance Group. We are trying to learn from these injuries to prevent them from reoccurring.
Total premiums in 2012 of $435 thousand are the same as 2011. The amounts billed to churches will not change.