Board of Pensions Update

The Board of Pensions has opened registration for the 2026 Benefits Regional Summits:  Support for Congregational Leaders, including May 19 at Yorkfield Presbyterian Church in Elmhurst. The summits will provide important updates and insights into the Benefits Plan of the Presbyterian Church (U.S.A.) and related programs offered by the Board of Pensions. The summits are open to all throughout the Church. Pastors, Personnel Committee chairs, and church business administrators will find value in hearing about anticipated updates as they begin planning for 2027.

Board of Pensions Expands Support for Congregations and Pastoral Leaders

The Board of Directors acted to balance stewardship of the Medical Plan with the needs of congregations and their pastoral leaders. They approved a subsidy for dependent children of participants in the Congregational Pastors Package, a two-year extension of Transitional Pastor’s Participation, and a Child Care Support grant.

The new subsidy for dependent children of pastoral leaders enrolled in the Congregational Pastors Package will cover 50% of the national, community-rated medical coverage cost of dependent children, effective Jan. 1, 2027. This subsidy will reduce the flat rates for both the 2027 Child(ren) and Family coverage levels. 

The Board of Pensions continues to monitor medical cost trends and expects to release the 2027 dues for the Congregational Pastors Package and Transitional Pastor’s Participation in July.

Directors also extended Transitional Pastor’s Participation through 2029, beyond its original end date of year-end 2027, for ministers currently enrolled in it. The package for ministers enrolled in Pastor’s Participation as of Dec. 31, 2024, was provided to give congregations and ministers time to transition to the Congregational Pastors Package.

Additional support for families came with Directors’ approval of a Child Care Support grant from the Assistance Program. The initial pilot phase of this grant, effective April 1, 2026, will provide $500 per month per child and up to $1,500 per month per family. This grant is available to PC(USA) ministers of the Word and Sacrament and commissioned pastors with dependent children ages 0-6 years to offset a portion of their child care needs. Congregational pastoral leaders must also be:

·   employed by a PC(USA) congregation and sanctioned by the presbytery with an effective salary at or below 80% of the median effective salary ($56,880 or less for 2026) 

·   employed at least 20 hours a week 

·   enrolled in the Medical Plan and/or Defined Benefit Pension Plan.

Dependent children do not need to be enrolled in the Medical Plan but must meet IRS rules for dependents.

Reserve fund supports Medical Plan

Directors established a reserve fund to bolster the Medical Plan and support the new and existing subsidies for the Congregational Pastors Package and Transitional Pastor’s Participation. Additions to this fund will be made annually. 

The new subsidies will support the two-year extension of Transitional Pastor’s Participation and cover 50% of the national, community-rated medical coverage cost of dependent children, reported on above. The Board intends the subsidy for the cost of dependent children to be ongoing.

The newly approved subsidies are in addition to the historical subsidies inherent in the income-sensitive dues packages and plan design for ministers and commissioned pastors. Congregations pay dues based on the member’s effective salary; the lower the salary, the lower the dues amount, with a minimum medical dues amount set annually by the agency. This enables the lower-resourced congregations to provide medical benefits to their pastoral leaders at below the actual cost of the coverage. For example, the minimum medical dues amount represents approximately 50% of the actual cost of coverage for a single member. Subsidies also exist in the income-sensitive deductibles and out-of-pocket maximums in the preferred provider option (PPO).

Additional Medical Plan options approved

Providing more choice by expanding Medical Plan coverage options is critical to attracting and retaining PC(USA)-affiliated employers, who are driving membership growth in the Benefits Plan, helping to keep it vital. In response, Directors approved three additional medical coverage options, effective Jan. 1, 2027, bringing to six the number offered through the Board of Pensions. The three additional options include a second PPO, second exclusive provider organization (EPO), and second qualified high deductible health plan (HDHP) and will have the same features as the existing options with different out-of-pocket costs.

In addition to PC(USA)-affiliated employers, the new options will be available to PC(USA) employers and congregations for lay employees and ministers who are not in installed positions. Ministers, spouses, and children enrolled in the Congregational Pastors Package or Transitional Pastor’s Participation will continue to be offered the Board’s current PPO plan.

Directors approve 7.2% experience apportionment

The Board of Directors granted a 7.2% experience apportionment for the Defined Benefit Pension Plan, effective July 1. This is the largest apportionment granted since 1999 and the 14th consecutive apportionment granted, yielding a cumulative increase of 64.4% since 2013. Experience apportionments result in a lifelong increase in pension benefits or pension credits accrued.

An additional  dues subsidy will soon be available to help offset the cost of dependent child medical coverage for congregational pastoral leaders enrolled in the Congregational Pastors Package. Beginning January 1, 2027, the subsidy will cover 50% of the national, community-rated cost of medical coverage for dependent children, reducing the flat rates for both Child(ren) and Family coverage levels. Using 2026 dues as an example, current child coverage costs are $829 per month (about $9,950 annually). With the subsidy, that cost would be reduced to approximately $414.50 per month (about $4,975 annually) for Child(ren) coverage, and $1,435.50 per month (about $17,226 annually) for Family coverage. Congregations may also choose to share in the cost of dependent coverage.