• DAC and CACs Now Available for 2024
• Disaffiliation Information—Updated
• Nominate a Coworker for the Charles L. Calkins Award!

DAC and CACs Now Available for 2024

The Denominational Average Compensation¹ (DAC) and Conference Average Compensations (CACs) for jurisdictional (U.S.) conferences are now available for 2024. The attached document provides a complete listing, by conference name, of both the 2023 and 2024 figures.

In addition, the attached graph may be of interest. It shows that while the total amount of compensation in the U.S. for full-time clergy has been decreasing the past few years, the total number of U.S. full-time clergy has been decreasing faster. This is especially true this past year where the decline in the number of U.S. full-time clergy was much steeper than the decline in the total amount of compensation. The DAC increased 2.7% this year, which is the highest increase seen in recent years.

To use the DAC and CAC figures properly, please remember the following:

• Wespath calculates the DAC and CACs solely for use by the denomination's U.S. pension and welfare plans for clergy. Any other use is strongly discouraged.
• In general, the DAC and CAC are averages of the compensation (as defined by the benefit plans) of full-time U.S. clergy who participate in the Clergy Retirement Security Program (CRSP) and/or the Comprehensive Protection Plan (CPP).
• The DAC includes the compensation of clergy serving local churches in the U.S., jurisdictional bishops and district superintendents, and clergy serving general agencies and other appointments in the U.S. extending the ministry of The United Methodist Church. Clergy in those extension ministries are included only if they participate in CRSP and/or CPP.
• The CACs include the compensation of district superintendents; they do not include the compensation of bishops and clergy serving general agencies.
• Plan compensation includes housing allowances, housing exclusions and certain tax deferrals, such as United Methodist Personal Investment Plan (UMPIP) before-tax contributions and Code section 125 medical spending account deferrals. For clergy living in a parsonage, plan compensation also includes an amount equal to 25% of compensation.
• Plan compensation excludes amounts paid in lieu of a conference providing a group health plan.
• Plan compensation includes moving expense payments due to changes in tax laws effective for the 2021 DAC. Wespath uses a "lookback year" approach by including in the current year's DAC calculation the moving expense payments provided in the prior calendar year.

To accommodate the Church's advance budget planning needs, Wespath sustains a long tradition of calculating the DAC with a two-year lag. In other words, the 2024 DAC is calculated based on 2022 compensation data. There are no adjustments or projections to account for the 2-year difference.

¹ Denominational Average Compensation is a specifically defined term associated with the Clergy Retirement Security Program, including its Supplements, and the Comprehensive Protection Plan. As such, its name can be changed only by General Conference.

Disaffiliation Information—Updated

As some local churches, clergy and others reconsider their connectional relationship to The United Methodist Church, Wespath continues to respond by updating FAQs and other information on our disaffiliation information webpage:

We’ve recently added new Q&As addressing these topics:

• Use of conference reserves for withdrawal liability payments; and
• Wespath’s role in determining withdrawal payment for disaffiliating local church.

Three updated FAQs documents are here:

• FAQs Regarding Church and Conference Disaffiliations
• Wespath Contingencies for Potential UMC Restructure or Disruption
• Detailed FAQs on Disaffiliations.

Please check the disaffiliation webpage periodically for the most current information.

Nominate a Coworker for the Charles L. Calkins Award!

Do you know an individual who has made extraordinary contributions, exhibits visionary leadership, and is dedicated to Wespath’s values? The Board Life and Governance Committee of Wespath's Board of Directors welcomes nominations for the Charles L. Calkins Award. Eligible nominees include conference benefits officers, benefits administrators, treasurers, and members of conference boards. Nominations are due by July 15, 2022.

Click here to learn more about the award and previous recipients. This year's award will be presented at the October Board of Directors meeting. To nominate an individual, complete this form and attach it to an e-mail to rsmith-edmondson@wespath.org.

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