Pastors Who Opted Out of Social Security at 25 May Get a Second Chance. Trump Has Until Oct. 27.
The bipartisan Clergy Act would let ministers who opted out of Social Security revoke that choice. It now awaits President Trump's signature.
Thousands of American pastors made a decision in their twenties that has followed them into their sixties. A bill now sitting on President Donald Trump's desk would give them one more chance to undo it.
The Clergy Act, H.R. 227, would let ministers who opted out of Social Security revoke that exemption and start paying in again. The House passed it 350-5 on April 27, and the Senate passed it without amendment by unanimous consent on Sept. 30, according to Congress.gov. The bill was formally presented to the president this week, and he has until Oct. 27 to act, the Midland Reporter-Telegram reported. If he signs it, or does nothing, it becomes law.
An irrevocable choice made young
Under current law, a minister, member of a religious order or Christian Science practitioner who objects to public insurance on religious or conscientious grounds can apply to the IRS for an exemption from Social Security and Medicare taxes on ministerial earnings. That exemption is irrevocable. Those who take it will not receive Social Security or Medicare benefits in retirement unless they earned qualifying credits from other work, according to the Congressional Research Service summary on Congress.gov.
Ministers are treated as self-employed for Social Security purposes, which means they pay the tax themselves rather than having it taken from a paycheck. For a young pastor at a small church with a small salary, opting out could look like a raise. Decades later, the bill comes due.
Dr. Paul Chappell, pastor of Lancaster Baptist Church in Lancaster, California, and a leading champion of the bill, described it on the "Washington Watch" program, as reported by American Family News. "It seems that many of them were ill-advised at a young age to opt out," he said. They later realized, "boy, this has effects on me, even into the Medicare system and my elder age."
Chappell noted that large churches often offer retirement plans, but smaller congregations, which are the reality for most American pastors, often do not.
What the bill does
The Clergy Act opens a limited window. An eligible minister could file to revoke the exemption, with coverage starting with either 2029 or 2030 earnings, and the application must be filed by the due date of the 2030 tax return, including extensions, according to the bill text. The choice is permanent. Once a minister opts back in, he cannot opt out again. The IRS would also be required to notify clergy that they are eligible.
This is not new. Congress opened similar windows in 1977, 1986 and 1999, according to AFN. The bill was sponsored by Rep. Vince Fong, R-Calif., in the House, and was backed in the Senate by Sens. Katie Britt, R-Ala., and Maggie Hassan, D-N.H. The Church Alliance, the Evangelical Council for Financial Accountability and the National Association of Evangelicals support it.
"Our faith leaders give everything to their communities in the Central Valley and across our nation. They deserve financial security in return," Fong said after the Senate vote.
Five House members voted no: Republicans Lauren Boebert, Tim Burchett, Chip Roy and Keith Self, and Democrat Lizzie Fletcher, AFN reported. Critics have raised concerns about long-term costs with the national debt above $40 trillion. That concern deserves a fair hearing. But this bill does not hand anyone a free benefit. Ministers who opt back in pay the tax on their earnings going forward, and benefits are earned by paying in, the same as every other worker. (For more on the program's own finances, see Dock Line's look at this year's 3.6% raise.)
The worker is worthy of his hire
Scripture is plain about how God's people should treat those who labor among them in the Word. "Let the elders that rule well be counted worthy of double honour, especially they who labour in the word and doctrine. For the scripture saith, Thou shalt not muzzle the ox that treadeth out the corn. And, The labourer is worthy of his reward" (1 Timothy 5:17-18).
Some pastors opted out from real conviction, and that conscience should be respected. The bill keeps the exemption in place for anyone who wants to keep it. Others opted out because someone told them it was a smart move, or because their church could not afford to pay them enough to cover the tax. Many of those men are now nearing retirement with little to show for a lifetime of ministry.
Congress rarely agrees on anything by 350-5. When it does, it is usually because the case is simple. A man who spent 40 years visiting hospitals, burying the dead and preaching the gospel in a small town should not face old age without a safety net because of a form he signed at 25.
Churches should take a lesson too. If this becomes law, congregations should talk with their pastors about it, help them get sound advice and, where they can, help with the cost. Caring for the shepherd is part of the flock's job. Small-church pastors do quiet work, sometimes preaching through nothing more than seven words on a roadside sign. They have earned our care.
Hero photo: Darrylpearson / Wikimedia Commons, CC BY-SA 4.0, cropped and resized.
