Clergy Act Passes Congress, Moves to President for Final Approval

INDIANAPOLIS — The Clergy Act has been passed by Congress. This bipartisan legislation creates a temporary opportunity for clergy who previously opted out of Social Security and Medicare to opt back into the programs.

The legislation now heads to the President's desk for signature following approval by both the U.S. House of Representatives and U.S. Senate. The Clergy Act will provide clergy who elected to opt out of Social Security and Medicare earlier in their ministry careers with a limited window to reverse that decision and regain access to retirement, disability, and survivor benefits available through the Social Security system.

“For many clergy, the decision to opt out of Social Security and Medicare was made early in ministry, sometimes without a full understanding of the long-term financial implications,” said Rev. Dr. Todd Adams, President and CEO of Pension Fund. “The Clergy Act offers a meaningful second chance for pastors who want to strengthen their financial security in retirement while gaining access to important protections for themselves and their families.”

Pension Fund of the Christian Church supported advocacy efforts through its membership in Church Alliance, an organization representing denominational benefit providers that collectively serve approximately one million clergy, church workers, and their families across the United States. Church Alliance has consistently advocated for the Clergy Act and applauded Congress for its passage. According to the organization, the legislation will help clergy build a stronger financial foundation for retirement while expanding access to essential Social Security benefits, including Medicare.

"One of the benefits of our participation in Church Alliance is the opportunity to advocate for policies that support the long-term well-being of clergy," Adams said. "This legislation reflects years of collaborative effort among faith-based benefit organizations working to address a significant retirement security challenge."

Under the legislation passed by Congress, eligible clergy could opt back into Social Security and therefore Medicare during a designated two-year period beginning in 2029. Those who elect coverage will contribute to the program and may become eligible for proportional Social Security benefits upon retirement once they have completed at least 10 years of covered employment.

Pension Fund has long encouraged a holistic approach to retirement readiness that includes employer-sponsored retirement benefits, personal savings, and Social Security. The passing of this act may help that holistic approach become reality for many clergy members.

Read the act here: https://www.govtrack.us/congress/bills/119/hr227/text