ABNWT District Resource Centre

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Church Boards and A Pastor’s Retirement

The best thing a board can do for your church is to take care of your pastor.

Start preparing for your pastor’s retirement now so you know they will be taken care of when they retire.

Four things your church can do now to help prepare your pastor for retirement.

  1. Ensure your pastor is being compensated well. Far too often, ministers pass up a raise or allow themselves to be under-compensated for the sake of the church. While your church’s missions and ministry are important, it is also important that your pastor is taken care of now and in the future so that they have the resources to continue serving well after their pastoral days are over.

  2. Work with your pastor on pension planning. The PAOC offers a defined benefits pension plan that is stable and offers decades-long support for your pastor and spouse.

    • Retirement income stream is predetermined based on employer and employee contributions.

    • During periods of market uncertainty, retirement income is stable.

    • The surviving spouse will receive an ongoing income stream if the pensioner dies.

    • PAOC Missions is supported through investments in church/ministry mortgage pool.

    A 2021 headline from Benefits Canada stated: “Majority of Canadian workers willing to take less pay for a workplace pension plan: a survey.” The article stated: “A majority (70%) of Canadians say they’re willing to forgo a higher salary in exchange for a workplace pension plan.”

    Pastors employed by PAOC churches that are not a part of the PAOC pension plan cannot buy into the pension plan.

    Watch PAOC General Secretary/Treasurer Craig Burton on the PAOC pension plan here.

  3. Consider your pastor’s current retirement savings. If you know your pastor has been saving diligently for retirement and is being well-compensated, consider how you can provide your pastor with a housing allowance or other benefits as they retire.

    If, on the other hand, you know your pastor has not taken a raise in years and may not have a large retirement fund built up, talk to your pastor about how the church can help as they prepare for retirement.

  4. Start planning your pastor’s succession. Whether your pastor’s retirement is three years down the road or ten years, it is never too early to start a succession conversation. Having a smooth transition can be difficult, but starting the conversation early can help ensure that your pastor’s succession is seamless.

Resources

The PAOC Defined Benefit Pension Plan.

The Christian Reformed Church offers a good framework of issues to be considered in supporting your pastor.

The Van Der Bloemen Group.

In addition to paying into CPP, it’s good stewardship to pay down debt, set aside savings in a TFSA or an RRSP, and join a pension plan. The PAOC Pension Plan is available to all credential holders who work in a church that contributes to the Plan.

Transitions

“For everything, there is a season.” Transitioning to a new season in ministry involves the abandonment of familiar routines and letting go of cherished ways of self-definition. The emotional effects can be more taxing than the financial effects of retirement.

When ministry leaders retire, they don’t lose their calling to serve God, but their vocation is transformed. Their challenge is to discern what new opportunity God is inviting them toward when they no longer have the role of a public religious figure.

Partners

It is important that your current church board or council becomes a partner with you in considering the direction of the remaining years of your pastorate.

The implications of creating a mutually agreed-upon timeline for retirement are significant for peace of mind. How can this period of your ministry become maximized to the benefit of both you and your church? How can your gifts, skills, and interests be put to the best possible use? Together, you can outline the needs of the church in its ministry at this time.

We celebrate and support pastors who recognize the timeliness of their next. Now is the time to begin thinking with the end in mind.

You can do this. We can help.

Al Downey and Bob Jones will come alongside you in confidential conversations.

We are committed to seeing you, your spouse, and your church succeed as you plan for your next. Email us at al@abnwt.com and bob@abnwt.com or call 780-707-5569.


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