A key congressional committee recently advanced bipartisan legislation beneficial to pastors re-considering previous choices affecting their retirement years. The Clergy Act, authored by Reps. Kevin McCarthy (R-Calif.) and Mike Thompson (D-Calif.), allows ministers a window of opportunity to opt back into the Social Security system if they received an exemption from the IRS earlier in their careers.

“Faith leaders are pillars of strength in our communities,” said McCarthy when he introduced this legislation last month. “The Clergy Act would provide faith leaders across the country the opportunity to opt into Social Security so that they have more freedom when planning for retirement.”

“After years of selfless service, they should have flexibility to decide what is best for their financial futures,” he added.

Many clergy choose early in their ministries to apply for an exemption from the Social Security system, and this is 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 2026. It also includes a requirement for the IRS to create and submit to Congress a plan for how it will notify clergy members of their eligibility for this opportunity.

ECFA is an advocate for this important legislation. In fact, upon its introduction, Rep. McCarthy highlighted words of support from ECFA President Michael Martin.

“The Clergy Act offers a very helpful solution for ministers who mistakenly elected out of Social Security coverage early in their ministry,” said Martin. “We support this legislation, and we believe ministers across the country will be very grateful for it.”

During its deliberations on the Clergy Act last week, House Ways & Means Committee Chairman Jason Smith (R-Mo.) applauded it and — noting he is a pastor’s son himself — said America’s faithful clergy “deserve to retire with dignity.” Similarly, Rep. Richard Neal (D-Mass.) said it should have an “easy glidepath to the floor and to becoming law.”

The committee approved the Clergy Act with a unanimous 41-0 vote. ECFA will continue to advocate for its final approval by Congress and signature into law.

For more background on social security considerations for pastors, see ECFA’s eBook – 10 Essentials of Social Security for Ministers.