Compass Pension Plan: Strong Participation and Important Updates for 2027

Following action by the 2024 General Conference, the Compass Pension Plan took effect on January 1, 2026. This plan reshapes the way retirement benefits are provided for clergy in full-time ministry. Compass reflects a model of shared responsibility in which both the Church and clergy participate more directly in retirement preparation. Compass is an account-based retirement plan in which both the Church and clergy make contributions toward retirement savings. Church contributions for full-time clergy at 100% appointment include: $1,800 annual flat contribution ($150 per month), a 3% base contribution of Plan Compensation (including base salary and housing) and up to 4% matching contribution.

For clergy living in a parsonage, Compass increased the deemed value of the parsonage from 25% to 35% of base salary for purposes of determining Plan Compensation. Full-time clergy participation includes a minimum 4% personal contribution from Plan Compensation in order to receive the full 4% church match. The plan also includes a student loan provision that allows qualifying loan payments to count toward the personal match, up to 4%. Clergy can review and manage personal contribution elections through Wespath (www.wespath.org)

Across the Rio Texas Conference, participation has been strong. All full-time clergy are actively contributing, with 98% contributing at least 4%, and the average contribution rate currently stands at 6%. These numbers reflect a serious commitment to long-term financial well-being.

Clergy serving under part-time appointment continue to participate through UMPIP, the United Methodist Personal Investment Plan, with a 9% church contribution based on Plan Compensation.

Preparing for 2027

This fall, Isabel Munoz, Associate Director of Human Resources, has been meeting with clergy during district gatherings, both by Zoom and in person, to review Compass and other important Health benefit changes for 2027. “The first year of Compass has been very encouraging in Rio Texas. Our clergy have taken retirement preparation seriously, and the participation numbers reflect that. As we prepare for 2027, our focus is making sure clergy understand their choices and the resources available to them so they can make informed decisions”

One of the most significant changes is the Compass personal contribution auto-escalation. Beginning January 1, 2027, clergy currently contributing 4% will automatically increase to a 5% personal contribution. Clergy contributing more than 5% will remain at their current contribution rate. Those who do not want the automatic increase will need to make a different election through Benefits Access by December 31. 2027.

Another important feature now available is the Qualified Student Loan Provision (QSLP). This provision is designed to help clergy who are balancing student loan repayment with saving for retirement. Qualified student loan payments may count toward the clergy contribution needed to receive the Compass church match. Eligible Compass participants can now access the QSLP self-certification process through Benefits Access. Clergy who use this provision must certify their qualified student loan payments annually.