In our conference, for a number of years there has been a formula in the conference standing rules to calculate the minimum salary. The formula has been a fixed percentage of the conference average cash salary, adjusted by years of service. Over time, some aspects of this formulaic approach have become outdated, practices have grown up in using the formula that have had unintended consequences, and the rigidity of the formula has reduced flexibility that is needed in tough economic times.
The proposed changes eliminate the use of a formula and, instead, require the Equitable Compensation Commission annually to recommend a dollar amount to be the minimum salary for pastors in full connection and, separately, a dollar amount to be the minimum salary for pastors not in full connection.
The proposed changes in the standing rules will not, in and of themselves, establish any particular minimum salary level for the annual conference. They will only change the process by which the minimum salary is set: from a formula to an annual deliberation.
The thought is that local churches, as a matter of equity, should be taking years of service into consideration in establishing the salary level, but that the barebones minimum isn't a number that needs to be adjusted for seniority.
The confusion and misunderstanding has to do with some items that are not directly addressed by the rules, such as whether health insurance is to be provided for just the pastor or for the entire family. The rules don't say, and so there is confusion about what the obligation of the local church is, and about what the entitlement is. This is to be corrected by moving away from a rigid formula in the standing rules to a promulgation each year of exactly what the number is for the minimum compensation, and exactly what benefits are to be provided.