Clergy Act signed into law

DALLAS—President Donald J. Trump signed the Clergy Act into law Tuesday, Oct. 20, marking a significant development for ministers and ministry families nationwide. The legislation creates 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.

GuideStone Financial Resources is preparing educational resources and guidance to help pastors, church staff, and ministry leaders understand the law, evaluate their options, and determine whether participation is appropriate for their individual circumstances before the election period begins.

Opportunity for ministers

“The enactment of the Clergy Act represents an important opportunity for ministers who previously opted out of Social Security to revisit a decision that was made early in their ministry and, in many cases, with limited understanding of its long-term implications,” said GuideStone President Hance Dilbeck.

“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. For many ministers and their families, electing future participation when the opportunity becomes available may strengthen their long-term financial security and resilience,” Dilbeck said.

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.

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.

Qualifications limited

According to information from Sen. Katie Britt (R-Ala.), one of the bill’s sponsors, those who opt back in will typically need to put in about 10 years of covered work in order to qualify for benefits.

“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 statement Tuesday.

“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,” she continued.

For several years, GuideStone worked alongside a coalition of church and ministry organizations, fellow Southern Baptist entities, and other church benefit boards to support legislation providing ministers a limited opportunity to make a new election regarding future Social Security participation.

“As an organization committed to helping those who serve the Lord finish well, we are grateful this opportunity is now available,” Dilbeck said.

“Our role is not to tell ministers what decision to make, but to ensure they have clear, objective information so they can carefully evaluate their options,” he continued.

“At the same time, we believe many ministers will find that participation offers meaningful benefits for both themselves and their families. We want every minister to understand the opportunity, consider it carefully, and make an informed decision.”

GuideStone plans to provide ongoing education and updates regarding eligibility requirements, key dates and deadlines, retirement planning considerations, and educational resources to help ministers evaluate their options.

Ministers and church leaders can learn more and access future updates through the Clergy Act resource center at GuideStone.org/ClergyAct.

In the months ahead, GuideStone will share additional information through its 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.