Clergy Act Would Give Pastors Second Chance to Join Social Security
Ministers who regret opting out of Social Security may soon get to reverse that decision.
In a move lauded by evangelical leaders, U.S. legislators have reintroduced the bipartisan Clergy Act.
The act offers a way out for clergy experiencing buyer’s remorse after taking advantage of a special exemption in the tax code.
While most American taxpayers must pay into Social Security whether they want to or not, Section 1131 of the Social Security Handbook allows clergy to claim a conscientious objection. Eligible individuals include “any duly ordained, commissioned, or licensed minister of a church, member of a religious order who has not taken a vow of poverty; or any Christian Science practitioner.”
However, re-enrollment advocates say many pastors make this decision — which is generally irrevocable — early in their ministries, when they are young and not thinking about retirement. As they grow older, Social Security’s benefits can begin to seem more important.
Sens. Katie Britt (R-Ala.) and Maggie Hassan (D-N.H.) submitted the Clergy Act in February, following the submission of a similar bill in the House a month prior by Reps. Vince Fong (R-Calif.) and Mike Thompson (D-Calif.).
The act would provide a re-enrollment window, after which a minister would have to pay into Social Security for at least 10 years before becoming eligible for benefits — the same minimum required of all other taxpayers. The last time Congress offered a re-enrollment window was in 1999.
“Our faith leaders are pillars of strength in our community, offering guidance, hope, and compassion,” said Rep. Fong in a statement to MinistryWatch. “We are grateful for their selfless service, and it is only right that we stand with them now. I look forward to working with my colleagues to pass this critical legislation and honor those who devote themselves to our communities.”
Though Fong’s bill stalled in 2024 under the Biden administration, it nevertheless advanced through the House Ways and Means Committee with a unanimous 41-0 vote. This year, Fong believes it can succeed.
“The Clergy Act is well positioned for success this Congress, delivering vital support to our nation’s dedicated faith leaders,” said Rep. Fong in a statement to MinistryWatch. “This important legislation will allow clergy members to opt back in to Social Security, ensuring they have the opportunity to receive the resources they need to plan their financial future.”
The bill is endorsed by Christian organizations, including the Church Alliance, Evangelical Council for Financial Accountability and National Association of Evangelicals.
“I am grateful to Senator Britt and Senator Hassan for reintroducing the Clergy Act,” said ECFA President and CEO Michael Martin in a press release. “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.”
Fong’s January press release includes a statement from NAE president Walter Kim, who said his organization “commends Representatives Fong and Thompson for introducing the bipartisan Clergy Act. … This will strengthen Social Security now while providing basic protection for faith leaders when they eventually retire.”
Meanwhile, pastors struggling to decide what to do about Social Security will encounter a spectrum of opinions.
Christian financial advisor Dave Ramsey, for example, says he would “opt out in a nanosecond. That’s because sending money to the Social Security office is a bad way to manage your money for God.” Instead, Ramsey suggests pastors use the extra income to invest in private retirement plans.
Parable, a financial service for churches, cautions that legally, ministers can only opt out due to a conscientious objection, not simply because they think it’s a bad investment. It also notes that if pastors don’t prepare for an alternative retirement source, the financial burden in their later years can be enormous.
According to Parable’s website, “Although avoiding Social Security tax allows more money to be put into a much better retirement investment like a 401k or Roth IRA, ministers who do not prepare could find themselves in a financially disastrous situation once they hit retirement age.”
It continues, “The amount retired ministers would have to pay annually to match the income replacement, survivors insurance, disability insurance, and medicare insurance that Social Security provides would be $30,000 to $40,000 annually.”
This piece is republished from MinistryWatch.
Tony Mator is a Pittsburgh journalist, copywriter, blogger and musician who has done work for World magazine, The Imaginative Conservative and the Hendersonville Times-News, among others. Follow his work and observations at twitter.com/wise_watcher.