The Ohio Independent Baptist, December 1999

~ 11 o u r Pastor Re tire ith Dignity? b\ l iar\ L Washburn t' · , t' ,\11 hc.ud the l ti It ·at dt ·tun, . " 111c l,\hr11 ct 1, ,, or th, or his hire.. (I I tnh,th, ~ l '"' ) ll1nul!h ,, r1llcn .1ln1nsl .__ t,,l, tlh,u,.lnd , e.tr , ,lgJ.). the~e ,,nrds arc .. ,till , ,h!.C .,d, lt' C t ,,n\ dcnon11nations arc ~ . t' \pcr1ctl\.. ·1ng ., ,hr1nl--1ng h,1sc of qualtt) p,l,tt,r-.. 1nd ., ,1gn1 fi ·.,nt contributing t.. l(ll't I the II., ·.,I ·oncrcgation· · failure to .. ~ 1..·t,n1p · n~atc their p.1:tor '" 1th a package th.ll .,lln,, ~ httn and ht: fan11ly frccdon1 f rntn unnc ·c~: :-.ir, finan · ial stre,, and its ,l::-::-o · 1 .. 1tcd problcn1s . major ·01nponcnt ,.1f th.1t ct,n1pcn ·nuon package i: the p,1.' ll.,r·: 1ct1rcn1cnt saving plan . Con idcr the ft, lto,, 1ng fJ ·L· ~leaned fron1 year - of c; ... ,, 0rk.1ng ,, 1tJ1 hoth pa.· tor: and the general publt · F. T: The average American worker, ,, 1th a ·on1pan) pen ion and oc ial e ·unt). take · a 50-70 percent cut in pay .1t rctiren1cnt. Hi. per onal retiren1ent SJ\ tng · off ·ct that ~hortfall. However, 0.A.RB pa, tor, ha\'c no denominati onal pen_ion plan . und ·on1e OARB pa ·tor ha, c opted out of oc ial ecurity. Thei r ~hortfall 1~ lOO°c ! Ouch! F. \CT: Ian .. congregation and deacon board take little or no initiative to as ist the pastor 1n e ·tabli hing and contributing to a retirement aving. plan . The entire re ·pon ibtlily of aving for retirement falls upon thi pa ·tor. F. \CT: The average pa tor mu ·t car e out from an already ub tandard alary enough 1none) to fund retirement avi ng . health ·are. dt abihty in urance. li fe in urance, food. ' loth1ng. education (both h.i and h.i ~h1ldren· ). hou ·ing. tran portation and , a auon- \.\·hat mo t would con ider the c. ential element of providing for one' famil\. If one of the e element i omitted .. for lack of fu nd . it will be the one farthest a\.\-J}-reurement. Thu · many pastor ha, e no retirement plan, or one that i \\ 0eful1\ underfunded. .. F. \CT: ~1 o t congregation have not con i<lered 1n ·uring a dignified retirement tor their pa tor to be part of their ethical re pon ib1ht) . By default. the congrega– tion may un\.\-·ittingly be contributing to the depanure of promi 1ng young mini ters into ecular career that offer competitive \.\, age!:) . \.i'\lD the opportunity to retire with d1gn1t) FACT: adly. a small percentage of p~tor remain 1n m1ni try for life. Tho e '"hn per e,ere often don't (or can't) get er1ou about reurement investing until lJtcr. \.\ hen they ha\ e lo t their greate t I nvc~tincnt ally- l ' IMI~. Many pastors n1ust ·onl1nuc to serve well into their seventies. often until death. They si,nply can' t nff ord to relire. The le cal church stands in a crucial positton us it considers the pastor' abi lity to retire with dignity. If indeed " the laborer is worthy of his hire," then the worthiness of hi high calling mu t be revisited and tran lated into dollar and cent ·. Con~ider the e challengcs. HALLENGE: Deacon boards mu t bcco1nc imn1ediatcly proactive on the n1ancr of the pa ·tor's retirement plan . Don' t as~ume your pa tor ha it all together. Sit down with him and learn what retirement vehic le he ha in place. Make it your moral and ethical respon i– bility to help bring hi1n up to peed. CHALLENGE: When need is deter– n1ined, take swift action to help your pa tor es tabli h an appropriate retiren1ent aving ' plan , uch a a 403B plan or po ·ibly a Roth IRA. The 403B or Roth IRA provide the pa ·tor n1aximum tax benefits, both now and in retirement. If deacon are un ure how to proceed at this point , ecurc the coun el of a financial profe ional ki lied and experienced in working with pastors. All retirement plans are not created equal. CHALLENGE: Make certain your pastor ' compen ation package allows him. to fund hi retire1ncn t plan at igni ficant level . I advi e all my client to contribute ten percent of gros alary each year into a retirement pl an. Pa tors over 40 hould work toward the maximum allowable amount- twenty percent. CHALLENGE: Seek expert advice on structuring the pastor' compensation in accordance with the Internal Revenue Code, minimi zing his income tax expo- ure. Receiving compen ation in the proper way will ave the pa tor hundred , even thousand , of tax doll ars which can be di erted to retirement aving . In the next i ue I wil l ex pl ain how to ·trueture the pa tor's compen ation for maximum tax efficie ncy, good teward– hip and IRS compliance. Financial Stewardship in Troy, Michi– gan, has been a naHonal leader in tax and financial consult ing services to pastors and church boards since 1985. Gary L. Washburn is vice-president of Financial Stewardship. You may contact Gary at 248-269-4114 or at Gwashb6065@aol.com. It's All New! Bibl le on Expanded teacher help FL1n, Bible-based theme Larger vi ual Acti \ritie for all learning tyle Call 1.800.727.4440 for a FREE catalog! Regular Baptist Press Web: www.garbc.org/vbs/ Education Consisterzt with Biblical Truth .. . in the Miami Valley since 1887 • Worldwide Christian ministries • Financial aid available • Award-winning computer network • 2,750 students from all around the world • Biblically-integrated curriculum spanning 100 areas of study • Accredited Baptist college of arts, sciences, and professional programs • A U.S. News & World Report ' 1 Best College" Call for infonnarion concerning educcuional progra111s designed f or you and your fu ture. I ·800-CEDARVILLE www.cedarville.edu P.O. Box 601 Cedarville, OH 45314