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Changes to Ministerial Stipend and Allowances
General Assembly 2006 considered and adopted the recommendations of the Stipend Review Task Group.
Key points to note
1. General Assembly decided to introduce a New Seniority Allowance, to be phased in over two years from 1 July 2007. This allowance is based on years of service, with ministers receiving an amount in addition to the basic stipend, as specified:
- 2 to 5 years service: 6 percent of basic stipend
- 6 to 10 years service: 12 percent
- 11+ years service: 18 percent
The revised Stipend will be the Target remuneration, being the sum of the basic Stipend and the New Seniority allowance.
2. Ministers will be paid the New Seniority Allowance by the Parish, not by General Assembly. This means that the existing Seniority Allowance will be abolished, with its final payment being in March 2007. From 1 July 2007, Assembly assessment will no lomger have a Seniority Allowance component and so will be reduced by that item in setting the level of payment.
3. Parishes will have the discretion to pay a minister up to 20 percent more than the basic stipend without needing approval from their presbytery. There is also a requirement for parishes to have an annual review of their minister’s financial package to ensure it remains adequate.
4. The Basic stipend and New Seniority Allowance will move from being annually adjusted by the Consumer Price Index (CPI) to the Average Wage Index.
5. General Assembly decided that parishes should pay reasonable costs associated with supervision, communication, relocation and consumables that are incurred by the minister, and provide computer and communication equipment where required.
Frequently Asked Questions
How much more will it cost for the New Seniority Allowance?
Refer to the table below. It lists the estimated changes over the next 3 years for ministers from one to 16 years experience. If you cannot access the report, or require explanation, please contact Financial Services Department.
Estimated increase in Stipend with inflations changes and new seniority allowance
2006 | 2007 | 2008 | 2009 | |
Years of | Present stipend | Adjusted | Adjusted | Adjusted |
1 | 38,051 | 39,193 | 40,761 | 42,391 |
2 | 38,051 | 40,369 | 43,207 | 44,934 |
3 | 38,051 | 40,369 | 43,207 | 44,934 |
4 | 38,051 | 40,369 | 43,207 | 44,934 |
5 | 38,812 | 40,369 | 43,207 | 44,934 |
6 | 38,812 | 41,545 | 45,652 | 47,478 |
7 | 38,812 | 41,545 | 45,652 | 47,478 |
8 | 38,812 | 41,545 | 45,652 | 47,478 |
9 | 38,812 | 41,545 | 45,652 | 47,478 |
10 | 38,812 | 41,545 | 45,652 | 47,478 |
11 | 39,573 | 42,720 | 48,098 | 50,021 |
12 | 39,573 | 42,720 | 48,098 | 50,021 |
13 | 39,573 | 42,720 | 48,098 | 50,021 |
14 | 39,573 | 42,720 | 48,098 | 50,021 |
15 | 39,573 | 42,720 | 48,098 | 50,021 |
16 | 40,334 | 42,720 | 48,098 | 50,021 |
Assumptions: Stipend changes:
2006 3.3% Consumer Price Index increase
2007 - 2009 4% Weekly Earnings Index increase
How much more will it cost for Ministers Expenses?
The recommendation from the Review task group, accepted by General Assembly is that Parishes budget an extra $1000 per annum (non cumulative) for ministers expenses, from 1 July 2007. Actual expenses are detailed in the Stipend Review report in the references.
When is New Seniority Allowance payable?
The existing Seniority Allowance is paid by FSD annually. The next payment, in March will be the final one and will cover the period July 2006 to June 2007. Parishes will commence payments from 1 July 2007 and will pay it fortnightly or monthly with the normal stipend payment.
Will our Assembly Assessment reduce?
Yes. The levy will reduce by the existing Seniority Allowance component, approximately 10 percent of the total. For example if the annual parish assessment is $30,000, the reduction will be approximately $3000 from 1 July 2007. The calculation for Assembly Assessment for 2007/08 will be published in May 2007.
What will PCANZ do if we can’t that pay that extra amount?
General Assembly office recognizes the financial constraints that some parishes are operating under and wishes to address any burden that parishes might experience as a result of this review. Last year we were able to reduce Assembly Assessment by 5 percent and this year, as well as the reduction detailed above, it was agreed to change the definition of parish accessible income to exclude specific purpose donation income and presbytery approved capital works. This will free up cash for parish activities.
In addition, if parishes are unable to pay the full levy, there is an Assembly Assessment review process in place, and if required, FSD can offer budget and expenditure advice to parish treasurers. Please contact the finance manager if you would like to discuss these options.
How does this affect Uniting and Co-operating parishes?
These changes will apply to Uniting and Co-operating Parishes with Presbyterian ministers.
Does this affect any other positions whose rate of pay is based on the stipend, such as youth workers?
No, Only ministers are paid stipends, other workers are subject to the relevant employment legislation and have employment contracts that specify their rate of pay.
Who decides what is reasonable in terms of the costs that parishes are covering? Where can we get guidance on this?
The parish and the minister should discuss this and come to an agreement that each is happy with. Contact FSD if you would like some advice.
Further Information
You can access the minutes of General Assembly 2006 by clicking here. The relevant information is on p53-54, p64-65 and p69-72. If you cannot access the minutes via the website, email info(at)presbyterian.org.nz or phone (04) 801-6000.
The full report of the Stipend Task Group, including explanation of the process agreeing on the recommendations made to the General Assembly, is also available here.