Bill Aims to Reverse Longstanding Opt-Out Decisions
The Clergy Act, introduced by Sens. Katie Britt (R-Ala.) and Maggie Hassan (D-N.H.), seeks to allow ministers who previously opted out of Social Security to re-enroll. Reps. Vince Fong (R-Calif.) and Mike Thompson (D-Calif.) have submitted a companion bill in the House. The proposal would create a new window for clergy to revoke their exemption from Social Security, offering financial relief to many nearing retirement.
Ministers Face Long-Term Risks from Early Opt-Outs
Under current law, ministers can opt out of Social Security within two years of earning over $400 annually in ministerial income. While opting out increases short-term income, it also removes access to Social Security retirement, disability, Medicare, and survivor benefits. Many ministers who made this decision early in their careers now face retirement without financial security.
Supporters Applaud Financial Safety Net for Pastors
GuideStone Financial Resources, affiliated with the Southern Baptist Convention, strongly supports the bill. President and CEO Hance Dilbeck said many pastors did not fully understand the long-term consequences of opting out. He praised the Clergy Act for offering a path toward financial stability and pledged GuideStone’s support in guiding pastors through the opt-in process.
Christy Teeter, GuideStone Vice President and Chief Experience Officer, emphasized the importance of the bill for ministers’ retirement planning. She noted that it would move pastors closer to full financial security in their post-vocational years.
Critics Cite Concerns Over Precedent and Fiscal Impact
Some detractors argue that allowing ministers to re-enter Social Security could set a precedent for reopening other irrevocable federal tax decisions. Others worry about the potential strain on the Social Security system, especially if many opt in late in their careers. Questions remain about whether ministers will meet the ten-year contribution requirement to qualify for benefits.
Timeline and Implementation of the Clergy Act
If passed, the bill would provide an opt-in window through April 15, 2030. The Internal Revenue Service must notify eligible individuals within 90 days of the law’s enactment. Ministers must then pay into the system for roughly ten years to qualify for benefits.
Source:
Bill would allow ministers to opt in to Social Security
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