Legislation moves to President’s desk for signature
The Church Alliance applauds Congress on the passage of the Clergy Act, which provides for a temporary Social Security opt-in window for clergy who are opted out of the program. The Senate passed the Clergy Act by unanimous consent yesterday. On April 27, the U.S. House of Representatives approved the bill by a vote of 350-5. Yesterday’s Senate action sends the Clergy Act to the President’s desk to be signed into law.
The Clergy Act is the product of the bipartisan leadership of four key legislators — U.S. Reps. Vince Fong (R-CA-20) and Mike Thompson (D-CA-04) and Sens. Katie Britt (R-AL) and Maggie Hassan (D-NH) — who introduced the bill to create an opportunity for clergy to opt back into Social Security.
In the United States, clergy can choose to opt out of Social Security. Some clergy make the decision to opt out during the early stages of their careers, only to regret that irreversible decision later. The decision to opt out affects eligibility for a wide range of benefits, including access to retirement income, disability protection, and survivor benefits. In many cases, after a lifetime of faithful service, clergy who have opted out realize as retirement approaches that they have not saved enough to cover the cost of living in retirement.
The Clergy Act allows clergy who have opted out the opportunity to opt in to Social Security during the two taxable years starting in 2029 and 2030. Clergy who decide to opt back in would make contributions to Social Security and be eligible to receive a proportional amount of benefits upon retirement once they have completed at least 10 years of covered employment. The Congressional Budget Office estimates that the bill stands to increase federal government revenues by $82 million over 10 years.
Nearly two dozen lawmakers signed on as cosponsors of the Clergy Act in the House and Senate.
“By giving clergy who previously opted out of Social Security an opportunity to opt back in, the Clergy Act will create a pathway to a stronger financial foundation in retirement for those who have dedicated their lives to serving our communities,” said Church Alliance Executive Director Christopher Wells. “The Church Alliance expresses its deepest gratitude to Reps. Fong and Thompson and Sens. Britt and Hassan for their leadership, and to all members and staff in the House and Senate who contributed to the passage of this impactful piece of legislation.”
About the Church Alliance
The Church Alliance advocates on behalf of 35 denominational benefits organizations that collectively provide retirement and healthcare benefits across a wide range of Judeo-Christian faith traditions. Collectively, its member organizations provide employee benefits for approximately one million clergy, lay workers and their families across the United States.
