5 Tips from crown 1. Establish a reasonable standard of living

1. Understanding Benefits, Pensions, Compensations, Taxes, Living on a Budget, Keeping records, Saving Money, and more!

2. Where to Begin 5 Tips from www.crown.org 1. Establish a reasonable standard of living 2. Establish a habit of giving 3. Establish priorities

3. 4. Develop a thankful attitude 5. Reject a fearful spirit Contentment is knowing God’s plan for your life.

4. Based on 4 member family ($22,000) Example: Tithes – 10% Taxes – 15% Housing - 8% of budget if living in Pars. Food - 12% Car - 15% (purchase & maintenance) Debts - 5% Insurance - 5% Recreation/Entertainment - 5% Clothing - 5% Medical/Dental Deductibles, Co-pays 15%

5. Savings 3-5% and work toward a goal of 5-10%

6. Good Recordkeeping for: 1. Reimbursements 2. Tax deductions 3. HSA, HRA, PAYFLEX

7. Miscellaneous Tips: • Use annual salary increases toward retirement or college fund savings • Use an accountant who knows clergy taxes • Receive a W-2 from each Church that pays the salary

8. You can designate part of salary as Furniture or Housing Allowance . This amount can be more than the HA provided by the church but don’t exceed real expenses! • A Housing or Furniture Allowance resolution must be in place before getting paid. Include in Admin or PPR minutes. (Resolution cannot be retroactive)

9. Mileage and Reimbursements: • Know in detail what your church will reimburse ahead of usage. • Work out a plan for mileage, continuing education and/or accountable reimbursements. • “Asking for forgiveness is not a plan, you need to know before you spend.” W.E.W.,Jr. For more detail on Accountable Reimbursement Plans, check out www.gcfa.org under Legal Services, Tax Packet

10. Benefits BCBSDE PPO/Consumer Directed Health Plan Health Savings Account Health Reimbursement Account Payflex

11. Save Money?? HOW? • Use health insurance wisely? • Use a clinic before using the Emergency Room . To avoid claim denial, get permission from a doctor to go to an emergency room. BCBS only pays for “true” emergencies. • Don’t wait until you need a doctor or clinic to find one. • Use prescription mail order service

12. Using Generic drugs can save you money at the pharmacy and will help keep costs down for everyone in your health plan. • Talk with your doctor to determine what’s best for you. Ask questions, i.e. will a different test be less expensive. Using a primary care gives the best consistent care.

13. Note: If you changed appointments, you need to get your coupons from previous appointment. Do you have questions about using HSA or HRA/Payflex?

14. Met Life Dental Insurance $1500 per individual per calendar year Part A – Preventive, Diagnostic 100% of Met Life allowable Part B – Basic Services 80% of Met Life allowable Part C – Major Services 50% of Met Life allowable

15. The following individuals may purchase health and dental at own expense: • Part-time Local Pastors working 20 hours or more per week • Lay Pastors , working 20 hours or more per week

16. Life Insurance for Full-time Pastors $5,000 paid by Conference $10,000 optional at your expense $50,000 paid by GBOP if enrolled in CPP (spouse 20% DAC) UNUM – optional life at your expense

17. Clergy Security Retirement Program (CRSP) Your Pension Plan Churches are required to pay an amount equal to 12% of your compensation plus housing allowance or parsonage factor.

18. Part-time local pastors have option to waive participation Pastor’s decision, not local church

19. Comprehensive Protection Plan (CPP) • Death and Disability Program • Church pays 4.4% of your compensation plus housing allowance or parsonage factor • Death Benefit – Active $50,000 • Disability Benefit – 70% of salary less SS disability payment

20. United Methodist Personal Investment Plan (UMPIP) (Contribute Percentage or Dollar Amount)

21. Before Tax Or After Tax UMPIP CONTRIBUTION WHICH IS BEST FOR ME? Depending on # of Dependents Other income at time of Retirement Housing Allowance in Retirement Tax bracket at time of Retirement

22. Importance of Saving Now! See the Compounding Earnings Sheets

23. How does the Conference BOP and the General BOP help you? • Financial Seminars • Oasis (Online Account Services Information System) • Interactive Voice Response (IVR) • Projections (check out… www.gbophb.org

24. www.pen-del.org Familiarize yourself with this website. You will find forms, resources, news events, links to agencies and you can submit ideas that have worked for you FINAL NOTE: Always get your forms in on time-November 1 is important date for Benefits and Compensation Best Wishes in your New Appointments!