President Donald Trump signed the Clergy Act into law on Tuesday (Oct. 20), creating a temporary opportunity for eligible ministers who previously opted out of Social Security to elect future participation in the program.
Beginning in 2029, the law establishes a two-year election period during which certain ministers who previously opted out of Social Security may choose to participate prospectively, subject to the requirements established by the legislation.
U.S. Senator Katie Britt (R-Ala.) celebrated the official signing of the legislation she helped usher unanimously through the Senate with Senator Maggie Hassan (D-N.H.) earlier this month. Congressman Vince Fong (R-Calif.) led the bill in the House, which passed it earlier this year.
“Pastors, priests, and ministers are pillars of their communities for a reason, and they deserve the chance to build a secure retirement for themselves and their families,” Britt said in a news release. “Many made this decision at the very start of their ministry without fully understanding what it would mean down the road, and I’m thrilled they will now have the chance to re-enroll in these important benefits.”
Resources available
Meanwhile, GuideStone Financial Resources announced they are preparing educational resources and guidance to help pastors, church staff and ministry leaders better understand the law, evaluate their options and determine whether participation is appropriate for their individual circumstances before the election period begins.
“While every minister’s situation is unique, GuideStone has long believed that Social Security provides an important foundation of protection through retirement, disability, Medicare and survivor benefits,” said GuideStone President Hance Dilbeck. “For many ministers and their families, electing future participation when the opportunity becomes available may strengthen their long-term financial security and resilience.”
‘Dual tax status’
Unlike most Americans, ministers are considered to have a “dual tax status,” meaning they are treated as self-employed for Social Security purposes, even when they are employees of a church for federal income tax purposes. This unique treatment has led some ministers over the years to opt out of Social Security participation, making the Clergy Act’s election opportunity particularly significant.
Because some ministers previously elected to exempt themselves from Social Security, they may not be eligible for certain benefits associated with participation in the program. Depending on an individual’s eligibility and circumstances, Social Security may provide retirement benefits, Medicare eligibility beginning at age 65, disability benefits and survivor benefits for eligible family members.
For more information
Ministers and church leaders can access future updates through the Clergy Act resource center at GuideStone.org/ClergyAct. In the months ahead, GuideStone noted, it will share additional information through the website, email updates and social media channels to help ministers understand the law, evaluate their options and prepare for the election period beginning in 2029.
EDITOR’S NOTE — This article was compiled by The Alabama Baptist, with reporting from GuideStone Financial Resources and U.S. Senator (R-Ala.) Katie Britt’s office.
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