of the Roman Catholic Church

Diocese of Salt Lake City

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- Priest Policy
  
  Pastoral Directives
  
  AUTO INSURANCE POLICY FOR PRIESTS
  Each priest will need a personal auto insurance policy. Coverage must maintain current Catholic Mutual Group requirements to drive for ministry or work, i.e. minimum coverage of $100,000 bodily injury liability / $300,000 per accident for bodily injury liability. Every priest that drives for work or ministry must have the above minimums or they may not drive for work or ministry. Each priest is responsible to ensure their policy is current and never lapses.
  
  Each priest, active or retired, is eligible for reimbursement of auto insurance up to $1,800 annually. With each reimbursement request a copy of the updated policy must be submitted that clearly outlines the amount due and the level of coverages that meeting the above requirements.
  
  International and Location Subsidy: Individuals who have inflated insurance rates due to lack of international verification or location premium increases may request additional subsidy of up to an additional $600 of reimbursement annually, subject to approval.
  
  Ministry locations no longer issue auto insurance reimbursements. Priests should request reimbursement directly at [email protected]
  
  PRIEST RETIREMENT
  Section V., pp. 17 - 20
  Priests’ Mutual Benefit Society
  Priests’ Mutual Benefit Society is a Mutual Benefit Society, incorporated under the laws of the State of Utah on October 2, 1945, for the bishops and priests of the Diocese of Salt Lake City.
  The membership of the Priests’ Mutual Benefit Society of the Diocese of Salt Lake City consists of the Bishop of the Diocese, priests ordained for the diocese upon receiving faculties and priests not ordained for the diocese who have been incardinated.
  Those incardinated in the diocese after ordination must apply for membership in the Society and pay back dues, with possible penalties.
  Non-payment of dues for five consecutive years forfeits membership, which can be reinstated only after a process, which includes payment of dues and a penalty.
  Priests excardinated from the diocese as well as those who have left priestly life and ministry forfeit their membership and all rights to benefits in the Society. Religious clergy are not eligible for membership in the Society.
  The purpose of the PMBS is to receive contributions from members and others; to extend relief to members by paying them certain designated sums of money periodically as retirement benefits; to invest its funds; and to make by-laws and regulations for the government of its members and contributors.
  PMBS is governed by a board of directors consisting of the Most Reverend Ordinary as Ex-officio Chairman and six priests of the diocese, elected by the membership for terms of three years.
  There are no vested rights in PMBS. Benefits are paid only to retired members, the amounts of which are determined solely by the board of directors and need not be the same for each recipient. Benefits are not paid for illness or disability.
  PMBS is funded by annual membership dues, contributions, and a portion of the Priests’ Retirement Collection taken each year throughout the diocese. Funds are invested solely at the discretion of the board of directors. Dues can be raised or lowered at the discretion of the board of directors and must be paid annually. If dues are delinquent, a penalty may be assessed.
  Priest directors serve staggered terms of three years each; must be ordained ten years to be eligible for election; are elected by the members in an annual ballot (two directors each year) and hold an annual general meeting as well as quarterly board meetings in accord with the articles of incorporation and the PMBS by-laws. A maximum of two retired priests may serve as directors.
  Date of a member’s retirement is determined by the Roman Catholic Bishop of Salt Lake City. After retirement, a member must request benefit payments from PMBS in writing.
  Vicar for Retired Priests
  The bishop may appoint a vicar for retired priests. The vicar for clergy serves as vicar for retired priests when one is not assigned.
  The vicar has concern for the welfare of retired priests, especially their inclusion in diocesan life, their ministries and their health, legal or fiscal concerns.
  He assists priests as they prepare for retirement, helps them cope with the change in their lifestyle, and is available for crisis intervention.
  Retirement
  Preparation: Preparation for retirement should begin at an early age. Diocesan policy allows for an annual amount (paid in June and December in equal installments) to be given to the priest from the parish or institution in which he is serving. This allotment is for retirement purposes only. Diocesan priests are encouraged to set aside additional funds for their personal retirement each year. The use of IRA’s and other secure investments are encouraged. The retirement funds for religious priests are given to the religious community.
  The Age of Retirement
  Retirement means retirement from administrative responsibilities and not, health permitting, from priestly ministry.
  Under the Code of Canon law there is no fixed age at which a diocesan priest may request retirement. Due to the need and shortage of priests, our diocesan policy will allow for a diocesan priest to request retirement at age seventy-five (75) [1]. If a pastor, the priest must submit his letter of resignation at age seventy-five (75) [2]. Any request to retire or notice of resignation at seventy-five should be submitted in writing to the bishop for his approval. To receive any retirement benefits a priest must receive an official letter of retirement from the bishop. Requests for early retirement due to medical need or other legitimate reasons will always be considered.
  These norms do not apply to religious clergy.
  
  Pastor Emeritus: A pastor who retires and remains in the parish will be named “Pastor Emeritus” of the parish from which he retires.
  
  Place of Retirement: A priest may choose his own place of residence after retirement. Residence in any rectory or in other diocesan facilities is dependent upon the agreement of the current pastor and the bishop’s approval maintained.
  
  Retirement Benefits: Eligible priests are encouraged to belong to the Priests’ Mutual Benefit Society. In addition to the benefits provided to eligible priests from the Priests’ Mutual Benefit Society, retirement benefits from the diocese are provided priests who are recognized by the bishop of Salt Lake City as officially retired from service in that diocese.
  
  In all cases, it is presumed that a retired priest is receiving social security benefits.
  In every case the diocese pays:
  Regence (medical benefits) supplemental rate.
  Auto liability coverage
  Retreat/Continuing Education programs held in the diocese.
  Designated monthly retirement allotment.
  Board and Room
  If the retired priest lives in a rectory and is giving service to the parish/diocese, the parish provides room and the retired priest contributes equally to the food budget. The pastor may negotiate whether the parish provides the retired priest a food allowance or not, paid with a 1099. Not to exceed the food allowance benefit of active priests.
  
  If the retired priest lives in a rectory with no service to the parish/diocese, the retired priest is responsible to make arrangements with the local pastor for payment of rent and equal contribution to the food budget.
  
  If the retired priest does not reside in a rectory, he is responsible for his own room and board.
  Benefits/Tenure
  Incardinated diocesan priests serving actively within the Diocese of Salt Lake City for fifteen (15) years are eligible to receive full retirement benefits from the Diocese of Salt Lake City according to years of service.
  A priest may receive two-thirds benefits with ten (10) years of service, at the discretion of the bishop.
  In cases where a priest qualifies for retirement benefits in a second diocese the bishop may negotiate an appropriate alternate retirement package that is commensurate with the diocesan benefits received by retirees of this diocese.
  Extraordinary Care: Cases of catastrophic illness, long-term nursing care, or permanent disability will be considered on an individual basis. When necessary diocesan retirement benefits may be redirected to the appropriate institution. No retired priest should be in need. Personal savings are to be utilized prior to long term reliance upon additional diocesan funding.
  Rectory Authority: A retired priest living in a rectory will be subject to the authority of the current pastor in all matters concerning the parish, the rectory, and the parish staff. Some ministry can be expected in exchange for board and room.
  Ministry of Retired Priests: Efforts shall be made to utilize retired clergy, both diocesan and religious, in various appropriate parish assignments throughout the diocese. Special consideration should be given to those religious priests who have worked within the diocese for many years and who, upon retirement, wish to continue within the diocese.
  
  priest retirement endnotes
  [1] Norms for Priests and their Third Age, National Conference of Catholic Bishops, Bishop’s Committee for Priestly Life and Ministry, Letter of Approval (Prot. No. 5465/87/4), Nov. 18, 1987, No. 1
  [2]Can. 538 §3
  
  FOOD POLICY FOR PRIESTS
  Each priest in an active assignment by the diocese will be given a monthly food allowance of $650 to be paid through payroll. This amount includes $550 for food and $100 for taxes, as the total amount is taxable income. Priests may no longer request reimbursement for personal food and meals.
  
  Personal food and meals are outside of ministry, e.g. regular groceries, fast food, restaurants, pet food. These are not reimbursable and not part of the parish budget apart from payroll.
  Qualified Reimbursements
  There are certain circumstances when a priest may be reimbursed in addition to their food allowance. IRS guidelines require qualified reimbursements to be on an accountable plan. This requires (1) The expense is ordinary, necessary, and directly related to performing work; (2) Within 60 days, the employee submits documentation (receipts or per diems), showing amount, date, location, and business purpose; (3) Any reimbursement exceeding documented expenses must be returned within a “reasonable period.” If these conditions are not met, reimbursements become taxable income and subject to payroll withholding.
  
  Reimbursements are for food and meals when actively doing ministry with ministry groups or parish events. Ministry meals and food would be itemized in the appropriate ministry budget, e.g. a confessor’s dinner for a penance service, pizza luncheon for the altar servers, staff Christmas luncheon.
  
  Food when traveling for purposes of ministry outside the diocese may be reimbursed, but should be reasonable. For ministry travel inside the diocese that exceeds five hours, the priest may be reimbursed for a meal, e.g. Sunday mission ministry that involves long hours away from the rectory.
  
  Ministry locations may not have rectory cooks on payroll status unless approved by the Bishop’s Office.
  
  When multiple priests live in the same rectory, they are to meet and come to agreement as to how much each will contribute monthly to the rectory food budget, i.e. how much will be allotted to the community for groceries and how much will be allotted to the priest for personal meals (eating out, restaurants, fast food, etc.).
  
  When priests visiting the diocese (not on diocesan payroll) and supplying Mass/ministry coverage are not offered meals at the rectory [1], they should be compensated a stipend for food equal to the benefit divided by 31, e.g. $650/31= $20.97 per day, in addition to the normal honorarium and mileage/travel compensation. This applies to retired priests (not on payroll) in temporary assignment by the bishop to full-time ministry. (see the endnote below for alternatives)
  
  This policy ensures that every priest is adequately provided with healthy and nourishing meals and eliminates the need to ever solicit the faithful for food or meals. It is understood that some parishioners may, of their own accord, offer gifts of food or extend invitations to share a meal and these gestures are perfectly acceptable. We should avoid creating any impression that our clergy are in want or lacking in sustenance.
  
  Food Policy for Priests Endnotes
  [1] A resident priest is not expected to supply food for visiting priests from his own finances, but he could choose to do so out of the sake of convenience. Alternate options:
  
  Use 5191.11.10.400RECT Clergy Food Reimburse accounting code. Turn in any of your receipts for groceries for up to the equivalent value of a visit for a priest doing supply. As long as the receipts are for groceries eaten at the rectory, it is not a taxable event. This is a qualified reimbursement that is non-taxable. EASIEST METHOD
  
  Example: Visting priest does supply over the weekend (3 days x 20.97) allows you to reimburse yourself for $62.91 of your food receipts. The visiting priest just eats your food at your rectory that you already bought previously. You get reimbursed.
  
  Preload a gift card with the proper amount for his visit, e.g. $20.97/day. Ask the priest to return the card with all receipts for food at the end of his visit. The resident priest can then use the card and add his receipts to be returned to the parish bookkeeper in total. If the receipts are for food eaten in the rectory there is no need to report it as taxable income. If there are any receipts for food not eaten at the rectory, it becomes taxable income to the visiting priest or resident priest respectively. Be sure to explain this to any religious order priest that will be staying for a long period of time, because if they exceed $600 annually for food eaten outside the rectory they will be issued an IRS 1099 and need to file taxes (religious order priests don't file taxes). Most visiting priests just eat the food in the rectory, making this a rare and nearly non-existent situation. This method might be helpful for those with strict eating requirements.
  
  Gift cards to the closest grocery store are the best to keep everything non-taxable. There is usually no activation fee and it is where you normally shop anyway. E.g. Gift cards to Smith's, Dan's, Market Fresh, etc. Bookkeepers and priests alike do not need to evaluate the receipts beyond that they were used for food -- it should all be non-taxable as it is used for groceries only.
  Visa / Master cards, etc. be careful to select ones that do not charge an activation fee! This is where bookkeepers will need to evaluate what is taxable and not.
  
  Create a qualified reimbursement, if the rectory is sufficiently stocked with plenty of food options for a visiting priest, the resident priest could submit his food receipt(s) to be reimbursed up to the value of the daily stipend for the visiting priests for each day he stays at the rectory, e.g. visiting priest is there for one week, resident priest submits his food receipts and is eligible to be reimbursed for the visiting priest's food allowance (7 days x 20.97 daily allowance). This only works if the resident priest actually has sufficient food for the visiting priest to eat. This is restated above in (a.) with the new accounting code.
  
  If you have other ideas, please submit them to the Vicar General for consideration to be approved and added.

Priests’ Mutual Benefit Society

Vicar for Retired Priests

Retirement

priest retirement endnotes

Qualified Reimbursements

Food Policy for Priests Endnotes