A separate webinar about the Child Victims Act (CVA) Cost Allocation recommendation, featured on pages 28-29 in the 2024 Upper New York Pre-Conference Workbook, took place on May 20. Click here to read the resolution on pages 28-29 and click here to watch the recording. 

General Questions

If the Creation Care Team is recommending we bring re-useable utensils to Annual Conference, do we clean them in bathroom sinks after we eat? 

Yes, you may do so.  

Finance

Wondering why you use unaudited numbers, especially for years so far away as 2022? 

The auditing firm previously used by the conference decided to no longer work with non-profit organizations like UNY (Upper New York). CFA sent out RFPs (request for proposal) to numerous firms, but many area firms could not take on a new client, particularly because we needed audits for several years. We have recently engaged a firm who are currently working on the 2023 audit. With this new relationship in place, we will have audited numbers from 2023 and forward.  

Will the reduction in GC (General Conference) apportionment affect us in 2025? 

No, the 2025 budget presented to A/C already accounted for the GC budget expectations. 

Why can't the rate of apportioned cost based on church income be reduced? 

CFA has made significant cuts to the operating budget over the past 2 years. This reduction amounts to around 15% which is equivalent to the number of churches that disaffiliated. The true impact of disaffiliations is still being evaluated. CFA has committed to not raising the ministry share factor rate. A church’s ministry share amount in 2025 will only go up or down based on an increase or decrease in operating revenue reported in 2023 as compared to 2022 amounts. 

If a church pulls from their endowment principal to cover a capital expense like a boiler system replacement, will that increase our ministry share amount in 2025 or in 2026? Is that principal endowment reduction considered church revenue? 

Any draw from an endowment account to pay for a capital expense (new construction or repairs to existing) facilities does not get reported as revenue anywhere on the stats report. The expense is reported on line 49 of the stats report. However, if there is a draw on the endowment to pay for operating expenses, then those expenses get recorded on line 37-47 and the draw amount would get reported on line 52d. This amount will be included in the ministry share allocations. 

How can additional conference staff (Rev. Song) be appointed before the budget is passed? 

The Conference can hire additional staff prior to passing a budget when the hired individual’s salary is funded with other sources of income other than ministry shares. In this case, this position is funded using funds already in the existing budget and additional funds received from the Lily Foundation grant. 

How does the decrease in budget compare to the General Conference decrease? 

The decrease in the 2025 Conference budget does not correlate to the GC reduction percentage. However, the reduction in the Conference’s GC apportionments was used to help reduce our Conference’s overall budget amount. 

Pension and Health Benefits 

Are current retirees affected by the change in pension program?  

The adoption of the new Compass retirement benefit plan, which starts January 1, 2026, has no direct impact on current retirees.  

Is the new Compass retirement program a defined contribution plan?  

Yes 

Do utilities count for housing allowance or just rent/mortgage?  

Yes, but clergy should always consult their own tax consultant for any tax related issue. 

Is CRSP (Clergy Retirement Security Program) closed to new enrollees after 2026?  

Yes, all clergy who have earned CRSP pension funds would remain vested in those funds for the years earned. This earning process stops as of 12/31/25 and COMPAS will begin on 1/1/2026. No clergy starting service after 12/31/25 will earn any CRSP benefits; all their retirement will be under the new COMPAS plan. 

With the new change in retirement plan, how will that affect salaries for pastors? 

The change in the retirement plan will have no impact on the gross salaries for pastors. If a pastor is giving less than the 4% match requirement, they would have to allocate more of their gross salary to get the maximum match benefit of the COMPAS plan. If a pastor chooses to donate less than 4% of their salary, they will not receive the maximum benefit toward their retirement. 

Curious what the projected life of the "Pre-82" plan is now that the board will soon be involved with three different plans? 

The life span expectation of Pre-82 would not be impacted by adding the new COMPAS plan. 

Does the Compass plan have a minimum contribution for churches outside of the match?

Yes, below is the local church’s 2026 obligation to COMPAS in addition to the 4% match: 

• $150 per month regardless of salary amount  
• 3% of salary (comprised on gross salary plus housing allowance or parsonage value – parsonage value will increase to 35% in 2026) 

Equitable Compensation 

Are the pulpit supply increases only for clergy?  

The proposed pulpit supply honorarium would apply to anyone filling a pulpit, clergy or laity. 

Are the pulpit supply amounts for sermons/services provided on the same day or is it $200 for the first service in the year, and then $100 each service delivered later in the year? I recollect that it was $90 for the first service and $75 for the second service delivered that same day. However, providing a new service on a different week would meet the $90. Is that correct? 

This is correct. The intent is for the $200 to be for the first service of the day and then $100 for any additional services on that same day. 

Did the board conduct research to see if churches will be able to meet these minimums? Will the increase be more than just the salary. For many, $10,000 a year of increase is a lot. Is there a cap for years of service amounts at 25 years as in the past? 

Many churches in my area are being led by laity. Are there recommendations for salary for those people? 

What about salary for Certified Lay Ministers serving churches? 

The Commission on Equitable Compensation is charged with bringing recommendations for appointed pastors, not assigned or hired persons (CLMs (Certified Lay Ministers), Lay Servants, lay supply).  Compensation for these persons is negotiated by the DS (District Sup) (District Sup) with the receiving congregation. 

Does the "Years of Service" recommendation mean pastors multiply their years of service by their current connectional category? For example, if an elder has served 15 years total, but has served as a LLP and Provisional member during some of those years, and/or served part time in some of those years, do they calculate years of service by multiplying 15 by $673 (Full Connection Elders & Deacons)? 

Years of service are based on full time equivalent years of service and is based on current connectional category.  

Is the conference working with churches identified as already under minimums? 

The information has been shared with Cabinet and DS’s will be working with these churches that are currently under minimum. 

Trustees

What percentage of churches disaffiliated from our conference?  

One hundred eighteen churches disaffiliated, representing about 15% of the conference total.  

Will there be a list of disaffiliated churches and clergy who have withdrawn from The United Methodist Church? 

A list of disaffiliated churches can be found on the conference website here.

Clergy who have withdrawn from The United Methodist Church can be found in the Business of the Annual Conference (BAC) report adopted at Clergy Session.  

CVA Recommendation

Aren't pension funds designed for pensions? 

The assets under the care of the Conference Board of Pensions and Health Benefits identified for use in the CVA Cost Allocation recommendation are unrestricted, meaning these funds are not limited in their use.  

How much money are we talking about as unrestricted reserve verses the money's pension liability?

BOPH fund has over $43,000,000 in assets. The Conference has a lability booked or the post-retirement medical cost (HRA) of over $17,000,000 which bring the net asset balance to just under $26,000,000. We have then adjusted that net asset balance by subtracting the unfunded pension liabilities provided by Wespath. That then leaves $7,865,640 of unrestriced reserves that plan to be used for the CVA resolution. 

Will we have enough to cover the remaining cases? If not, where does the money come from? 

The final total of costs is not known at this time because not all cases have been resolved. The recommendation would direct the treasurer to allocate all past and future costs first from the unrestricted reserve funds in excess of liabilities of the UNY board of pensions and health benefits. If additional funds were still needed, the recommendation directs the treasurer to allocate remaining costs from the Conference board of trustees and conference operating reserves.  

On page 32 of the 2024 Upper New York Pre-Conference Workbook, it shows "unfunded pension liability" of over $17 million; yet the total unrestricted reserves shows a positive balance of $7.8 million. How does this make it possible to use the money for CVA costs? 

The $7.8 million is the balance left over after subtracting the $17 million of unfunded pension liability.  

When will the local church know a case is settled and they can get their deposits back from their lawyers?  

Churches named in lawsuits will be notified by their attorney once the lawsuit is settled. 

Since Compass was just passed at General Conference, should this recommendation be reevaluated?   

There is no known impact on the recommendation due to any General Conference decisions, including passage of the Compass plan.   

After taking the funds from the undesignated unrestricted pension and benefits to pay CVA cases, how much is still due or expected to be due? 

Because not all cases have been resolved, the final total of costs is not known at this time. If the recommendation directs the treasurer to allocate remaining costs from conference board of trustee and conference operating reserves.  

Do we know how much we will need to cover this liability? If not, what impacts that final number? 

The final total of costs is not known at this time because not all cases have been resolved. If the unrestricted reserve funds in excess of liabilities of the UNY board of pensions and health benefits is not sufficient to cover the total costs of CVA legal fees and settlement, the recommendation directs the treasurer to allocate remaining costs from conference board of trustee and conference operating reserves.  

Do the disaffiliated churches have responsibility for their share of the CVA costs? Specifically, churches in which CVA charges were filed against. 

Where a church named in a CVA lawsuit sought to disaffiliate, the Conference Board of Trustees required a cash payment toward settlement costs be made by the church and held in escrow for the church to proceed with disaffiliation.  

Is there any plan to repay any of the funds used for the CVA cases? 

The recommendation does not include a plan to repay funds. All funds under consideration in the recommendation are assets of the conference itself. No bonds, loans, or other debt obligations would be involved and, therefore, there would be no need to repay funds.  

What are we doing about future child abuse cases? 

Every conference ministry and local church is to have a safe sanctuary policy in place to reduce the risk of abuse of children, youth, and vulnerable adults.  

How many abuse cases are currently pending? 

Seventeen cases were filed against the conference and/or one of its local churches. All but three of these cases remain to be resolved. 

Forty-six cases named the conference and/or one of its local churches as one of the defendants in a BSA related lawsuit. These would be resolved in the proposed BSA bankruptcy settlement. 

After all cases are resolved, will the total amount paid be shared with the conference?  

Yes.  

What was UNY’s share of the Boy Scouts of America (BSA) bankruptcy settlement? 

UNY paid $1.25 million to cover its share of the proposed settlement. As with all costs related to Child Victims Act (CVA) cases, these funds were paid out of available cash. This expenditure will be charged against conference funds once the conference decides how to allocate these costs. 

To what extent was or is insurance being used to cover costs and to what extent can it be used moving forward rather than rely on these newly designated funds?

The abuse alleged in the majority of the CVA cases filed against the conference and churches occurred during a period (1960-1980) when there was no applicable insurance coverage in place. In the few cases where coverage was in place, the conference has accessed the coverage successfully.

Since the mid-1990s, our four predecessor conferences and the Upper New York Conference have had mandatory comprehensive liability insurance policies in place for churches and conference ministries, placing the conference and its churches in a better position to cover legal and settlement costs in the event of future litigation.