COMMISSION ON EQUITABLE COMPENSATION The Commission on Equitable Compensation continues to work on behalf of our annual conference to provide minimum

standards of compensation for appointed clergy for the sake of the ministry and mission of the body of Christ. Guided by The Book of Discipline of The United Methodist Church, ¶619-¶625 (2004) and by our annual conference policies, we work with the Bishop and Cabinet as well as the local church and pastors under appointment to promote and provide basic levels of clergy compensation. Churches seek funding through one of four areas of need: transitional, missional, exceptional cases or personnel obligation (¶619). We submit the following material to the conference: I. MINIMUM COMPENSATION LEVELS: The commission recommends the following minimum compensation* levels for 2009: Full Conference, Probationary and Commissioned Members: >From $34,037 to $35,017 Associate Members: >From $30,675 to $31,655 Full Time Local Pastors: >From $29,399 to $30,378 * For this purpose, “compensation” includes salary, utilities and any other benefits paid by the local church, which accrue to the pastor directly and personally. It does not include housing, which is the obligation of the charge. ¶252.4e. It also does not include the local church’s fund for reimbursement to pastors for expenses incurred in the fulfillment of their professional responsibilities. This reimbursement account is not to come from the pastor’s salary. ¶626. II. CHARGES WHICH QUALIFY FOR EQUITABLE COMPENSATION FALL INTO ONE OF FOUR CATEGORIES: + + + + “TRANSITIONAL” “MISSION” “EXCEPTIONAL” “PERSONNEL OBLIGATIONS”

The commission recommends that each District Superintendent annually present an overall plan for his/her district in light of the above categories. We urge that the Bishop and Cabinet appoint full time ministers to charges that are below the minimum total compensation level only when those charges are determined to be either transitional, mission, exceptional, or of a personnel obligation nature.

A. TRANSITIONAL CHARGES A transitional charge is one moving from receiving equitable compensation to total self-support, following an approved schedule within a period not to exceed four years. Applications for transitional status shall be made by the local church on a form provided by the Cabinet. Included in this application will be a mission statement. This application shall be submitted through the District Superintendent, recommended by the full Cabinet, and then approved by the Commission on Equitable Compensation. Previously approved transitional charges must make an annual progress report on a form provided, reviewed and approved by the Cabinet, and then approved by the Commission on Equitable Compensation. The application for status, continuation and progress reports shall be reviewed at the annual meeting of the Cabinet with the Commission. B. MISSION CHARGES A mission charge is one that has submitted a completed application form provided by the Cabinet (including a mission statement), has been recommended by the full Cabinet, and then approved by the Commission on Equitable Compensation. The application must state clearly why the charge should be considered missional and what goals are to be achieved. Previously approved mission charges must make an annual report of mission focus on a form provided, reviewed and approved by the Cabinet, and then approved by the Commission on Equitable Compensation. The application for status, continuation, and mission focus will be reviewed at the annual meeting of the Cabinet with the Commission on Equitable Compensation. C. EXCEPTIONAL CASES A full time pastor may be appointed to a charge deemed an exceptional ministry and be supplemented above the minimum scale when this has been recommended by the Cabinet and approved by the Commission on Equitable Compensation. The following provisions shall be met when exceptional cases are granted: + Agreement on a descending scale of support, for a period not to exceed four years, must be approved by the full Cabinet and the Commission on Equitable Compensation, + The names of such approved charges and the amount of such support for the ensuing year shall be reported annually at the conference session, and + Applications for this support and annual progress report shall follow the same procedure as a transitional and mission charge.

D. PERSONNEL OBLIGATIONS Personnel obligations shall be funded, when recommended by the Cabinet and approved by the Commission on Equitable Compensation, in accordance with The Book of Discipline, ¶342 (2004). III. SUSTENTATION FUND This fund, a part of the total equitable compensation program, is separately designated because it is the only portion available to persons serving part time. Those serving part time, appointed to pastoral charge, may receive support from a Sustentation Fund, which is administered through the Commission on Equitable Compensation. Upon application, on a form provided by the Cabinet and submitted by the applicant’s District Superintendent, recommended by the full Cabinet, and then approved by the Commission, payments may be made from this fund. (The Executive Committee of the Commission when necessary.) All approved applications for Sustentation Funds must show that a financial need exists. Requests for renewal in Sustentation Funds must show that needs still exist, must be recommended annually by the full Cabinet and presented at the annual meeting of the Cabinet with the Commission and must be approved by the Commission. IV. ANNUAL MEETING OF THE CABINET AND THE COMMISSION ON EQUITABLE COMPENSATION The Cabinet shall meet with the Commission on Equitable Compensation on a date every year near the last regular Cabinet appointment making session. The Bishop, in consultation with the Chair of the Commission, will determine the date. At this meeting, the Cabinet shall present, and the Commission shall consider individual applications for transitional, mission, exceptional, and personnel obligation ministry status, as recommended by the Cabinet. At the annual meeting, the Cabinet shall present: + Progress reports and applications for renewal of support which have been recommended by the full Cabinet, + Requests for renewal in Sustentation Funds which have been approved by the full Cabinet, & + Applications for Sustentation Funds The Commission on Equitable Compensation shall present for discussion the guidelines they will present at the ensuing session of the Annual Conference. The Cabinet and the Commission will discuss how the needs of churches can be met and identify how we can strengthen our stewardship and accountability for these funds.

V. CABINET’S RESPONSIBILITY TO CONSIDER EQUITABLE COMPENSATION IN CHARGE ALIGNMENT AND IN MAKING THE APPOINTMENTS. In recognition of the good stewardship of the Conference’s resources and the fullest use of our ministerial talent, “this schedule of minimum compensation shall be observed by the Bishop and the District Superintendents in arranging charges and making pastoral appointments.” The Book of Discipline, ¶ 624.12 (2004) The Commission urges the Bishop and Cabinet to consider a charge membership of 250 and/or an average attendance of 100 at the principal service of worship as a minimum full time workload in considering charge alignment. VI. COMMUNICATIONS The Commission on Equitable Compensation strongly urges the District Superintendents to make sure that the officials of the local church know they are applying for equitable compensation funds and the appropriate church officials are a part of the application process and the setting of the local church expense fund, also known as an accountable reimbursement fund. (The Internal Revenue Service has ruled that clergy are employees. The Reimbursable Expense Fund is an appropriate way to budget for the expenses incurred by the pastor in the performance of her duties, like travel, that are critical to effective ministry, without incurring tax liability.) It is also recommended that the Bishop, the District Superintendents, and the Chair of the Commission on Equitable Compensation write the appropriate church officials a letter of congratulations when that charge comes off equitable compensation support. It is also recommended that the Commission on Equitable Compensation, in consultation with the District Superintendents, meet with charges that are using equitable compensation funds, in an attempt to work with them as they set goals to move beyond equitable compensation support. VII. 2009 BUDGET REQUEST: $300,000 VIII. CLOSING REMARKS We have done our best to be faithful and responsible stewards who are sensitive to the multiplicity of factors that the Cabinet weighs before requesting funds from our Commission. We thank the Cabinet and the Council on Finance and Administration for partnering with us to reduce our deficit while continuing to fund ministry. Like every other entity that had the privilege of working closely with the Reverend David B. Hawkins, we were shocked and saddened by his untimely death. David blessed us with his warmth, his compassion, his love of God and of this annual conference, his commitment to faithful stewardship and his sense of humor. Even as we grieve, we give thanks for Jim Allen and the gifts that he brings to the Office of Administrative Services.

As always, we recognize our debt to Melinda Parker and Nancy Pearson for their patient and faithful service. Personally, I thank each member of the Commission for his or her willingness to address difficult issues with wisdom and sensitivity. I have learned much from each of you, relied upon each of you and will always be grateful to you and for you. Respectfully submitted, Harriet Bryan Harris, Chair

2008 EQUITABLE COMPENSATION BY DISTRICT (March 1, 2008) CLARKSVILLE Personnel Personnel

16,550 2,600 TOTAL 7,340 3,300 3,100 2,700 2,500 2,300 1,500

19,150

COLUMBIA East Hickman-Little Lot/Mt. Pleasant Personnel Caldwell Beech Grove-Wesley Chapel Linden Circuit Enterprise Hampshire Ridge TOTAL COOKEVILLE Martin-McDonalds: Martin Cumberland Hispanic Findlay-Mt. Carmel Smith County Parish TOTAL

22,740 9,000 6,000 4,600 4,800 24,400

CUMBERLAND Matthew Memorial/Neely’s Bend Mary Chaffin Mt. Vernon Dowell/Richmond Beech Grove/Willow Grove Key Haysville/Sadlers Pleasant Grove/Salem Slater’s TOTAL MURFREESBORO Personnel Stones River Stephen Chapel TOTAL

3,000 (Feb. – June) 25,637 2,200 600 500 2,400 300 300 240 35,177 34,037 5,000 5,000 44,037

NASHVILLE Primera Iglesia Brooks/Braden Humphreys Street TOTAL PULASKI Chinubee-Mt. Zion-Wayland Springs Bonnertown-Fuller’s Chapel St. Johns/St. James Beech Grove Mulberry Circuit Evans Chapel Bethel/Friendship Aspen Hill Pope’s Chapel East End (Lawrence) TOTAL

18,000 12,000 2,400 32,400 2,400 3,600 7,200 2,400 2,200 2,000 2,000 1,200 1,200 1,200 25,400

GRAND TOTAL $ 203,304