A bipartisan pair of senators recently re-introduced the Clergy Act, a bill supported by ECFA that would aid pastors who mistakenly opted out of Social Security—a generally irrevocable choice. Sens. Katie Britt (R-Ala.) and Maggie Hassan (D-N.H.) have again partnered to propose this legislation in hopes that it will allow such faith leaders a fair opportunity to “to better their financial futures” after rejoining the system.
“I am grateful to Senator Britt and Senator Hassan for reintroducing the Clergy Act,” said ECFA President and CEO Michael Martin. “Early in their ministries, some pastors opt out of Social Security and then have no opportunity to fix that choice once they realize their mistake. This bill opens a very reasonable window to help and would be a breath of fresh air for them.”
The Clergy Act would allow a temporary window for pastors to revoke their exemption and re-enter the Social Security system beginning in 2028. It also includes a requirement for the IRS to craft a plan delineating how it will notify clergy members of their eligibility for this opportunity.
Both Britt and Hassan called the bill “commonsense.” Noting that, like other workers, clergy opting back in would need to pay into Social Security for the equivalent of 10 years (40 quarters) before being eligible to receive benefits, Britt added that the Clergy Act ensures “fairness while providing an avenue to a secure retirement.”
While Congress has periodically allowed other temporary windows for pastors to re-enter the Social Security system, the last one was opened in 1999. Hassan hopes the window proposed in this bill will help interested clergy to “safeguard their financial future and plan for a dignified retirement.”
“I look forward to getting this bipartisan legislation enacted into law,” said Britt.
Reps. Vince Fong (R-Calif.) and Mike Thompson (D-Calif.) reintroduced the House version of the Clergy Act in January. Notably, while it ended up stalling last year, the House Ways & Means Committee advanced the bill with a unanimous 41-0 vote in the last Congress.
ECFA will continue to advocate for 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.