House Committee Gives Clergy Act Unanimous Approval

 

A House committee gave a bipartisan boost to the Clergy Act, a bill supported by ECFA that would give pastors a chance to re-enroll in Social Security if they mistakenly opted out earlier in their careers. The panel advanced this legislation to the full House by a unanimous 40-0 vote.

Rep. Vince Fong (R-Calif.), the sponsor of the Clergy Act, recognized faith leaders as “the backbone of our communities” and hopes this bill will help those who may wish to re-enter the Social Security system, “empowering them to take greater control of their financial future.” Similarly, the bill’s chief cosponsor, Rep. Mike Thompson (D-Calif.), also lauded the role of faith leaders and said this bill “just makes sense.”  

Many clergy choose early in their ministries to apply for an exemption from the Social Security system—generally an irreversible selection. However, as they advance in their career and look ahead to retirement, some pastors come to wish they hadn’t made that choice.

The Clergy Act would allow a temporary window for pastors to revoke their exemption and re-enter the Social Security system beginning in 2029. Like other workers, pastors opting back in would need to pay into Social Security for the equivalent of 10 years (40 quarters) before being eligible to receive benefits. Of note, the bill also would task the IRS and the Social Security Administration with crafting a plan delineating how the government will notify clergy members of their eligibility for this opportunity.

“This legislation will make a real difference for pastors who, early in their ministries, made a mistake by opting out of Social Security irrevocably,” said ECFA President & CEO Michael Martin in a press release posted by Rep. Fong. “This bill opens a very reasonable window of opportunity for them to fix that choice, and, having heard many stories of those affected, I know it will be a breath of fresh air.”

“I encourage the full House to approve this important bill,” Martin added.

ECFA will continue to advocate for the enactment of the Clergy Act. For more background on social security considerations for pastors, see ECFA’s eBook – 10 Essentials of Social Security for Ministers.

 

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.