wfn.org | Congress may open Social Security window for clergy

[NewsDesk <NewsDesk@UMCOM.UMC.ORG>]

May 25, 1999	News media contact: Joretta Purdue*(202)546-8722*Washington
10-71B{294}

NOTE:  This report may be used with UMNS story #293, or it may stand alone.

NORCROSS, Ga. (UMNS) - The financial and administrative agency of the United
Methodist Church is encouraging Congress to open a window to clergy who
previously opted out of Social Security.

The General Council on Finance and Administration (GCFA), in its May 17-20
meeting, directed its president to send letters to President Clinton and
congressional leaders urging passage of House Bill No. 133 and Senate Bill
No. 170, which would allow clergy who previously opted out of Social
Security to revoke their exemption.

GCFA's resolution also asks clergy and other church members to write letters
to Congress expressing support for the legislation.

Many United Methodist clergy who chose the Social Security exemption  "later
in life . . . regret their decisions when they realize the importance of
Social Security benefits, particularly Medicare, in their retirement," said
GCFA's president, Bishop Richard C. Looney of the South Georgia Area, in his
letter.

Clergy who were ordained before 1968 were exempt from Social Security unless
they chose to elect coverage. After 1968, clergy were covered unless they
filed for an exemption. Looney noted that many clergy begin their careers
burdened with educational loans so that the exemption from the
self-employment tax, which currently is 15.3 percent of income, seems more
attractive than retirement security.

Similar windows opened in 1977 and 1987. A proposal for another window was
made in 1997 but died for lack of support.

# # #

______________
United Methodist News Service
http://www.umc.org/umns/
newsdesk@umcom.umc.org
(615)742-5472