Anytime a new resolution comes up with dollar signs in its text, we all get a little anxious. This year, many of us sat in pre-conference or online sessions explaining a resolution tackling Health Insurance Funding Transitions.
Over the next three years, the resolution will shift insurance funding to be paid completely by the full-time appointments and their pastors. This article breaks down some of the ins and outs of this resolution and will make the jumble of numbers a bit more intelligible.
Your requests to reduce church apportionments have been heard.
A resolution will be introduced at the Friday morning Business Session to lower apportionments for all churches. The change will also continue to provide health insurance for pastors and Conference staff.
To craft the resolution, the Board of Pension in collaboration with the Council on Finance and Administration reviewed apportionments payment trends and expected health care cost changes.
Providing high-quality affordable health insurance for full-time charges and full-time clergy is an ongoing Conference value. More than a third of the Conference budget each year pays insurance for clergy and Conference employees. Recent trends show that approximately 78 percent of the requested apportionments have been paid by local churches and charges, impacting the Conference budget.
If approved, the resolution will assign insurance costs for clergy who serve full-time charges. The changes will be introduced over a three-year period. Ultimately, average local church apportionment requirements will be around 26 percent less than previous years. All charges and churches who employ a full-time pastor will be billed annually for the insurance. Future health care payments will be assigned to charges with clergy who are eligible to participate in the program.
What will be the impact to my church or charge if the resolution passes?
At the end of the 3-year transition period:
- A part-time charge with no participants in the health care plan will see about a 26 percent reduction in the fair share.
- A full-time charge with a $75,000 fair share and one participant will see a $19,500 fair share decrease and an $11,300 HealthFlex increase resulting in an $8,200 cost savings. If there is currently no HealthFlex participant, $1,000 will be saved.
- A full-time charge paying $45,000 in fair share with one participant will see a decrease of $11,700 fair share and an increase of $11,300 HealthFlex resulting in an annual $400 cost savings. If there are no participants, the charge will see an increase of $6,800.
- A full-time charge paying $20,000 fair share with one participant will see a fair share decrease of $5,200 and an increase of $11,300 HealthFlex resulting in a total of $6,100 cost increase. If there are no participants, the charge will see an increase of $13,300 for HealthFlex.
Conference Treasurer Jamion Wolford provided more details and examples on the Conference website including a list of “frequently asked questions.” Specific wording for resolution is on page 135 of the Conference Workbook. Contact Wolford for specific information or questions about how the changes will affect your church at jwolford@wvumc.org or 304-344-8331 Ext. 35.