UUA Church Staff Finances
Guided by Unitarian Universalist values,
we equip congregations for excellence as employers
and their staff for financial competence and well-being. |
Retirement and Insurance Plans
Compensation and Staffing Guidance
Aid Funds |
Compensation & Staffing News |
Editor's Note: In This Issue
Dear Readers,
There's something for everyone in this month's newsletter! Read on to learn about... |
Our usual handy list of links can be found near the bottom of this issue.
Faithfully, |
Jan Gartner, Associate Director, Church Staff Finances |
Tune Up Your Benefits, One Area at a Time |
Last month, we encouraged you to use our Benefits Tune-up Workbook to review your practices for administering UUA benefits. If you didn't get to it yet, we have a suggestion: approach the process one area at a time. Our new Focused Sections make it easy! The link below will bring you to all of the formats: the full Workbook as a fillable PDF or Word document, along with separate Health Plan, Group Insurance Plans, and Retirement Plan sections, also in either fillable PDF or Word documents. |
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Improved Insurance Plans Subscription Agreement
Does your congregation participate in any UUA insurance plans? For two reasons, we're asking each congregation to submit a new Subscription Agreement at this time:
- Many congregations haven't completed a new Subscription Agreement in quite a while. We're aware that your elections may be out of alignment with your current practices.
- Additionally, we've improved the form, allowing you to more clearly indicate your elections and contribution policies.
It takes just a few minutes to fill in the updated Subscription Agreement form. Having current agreements on file will improve our ability to track congregational offerings and contribution practices. We look forward to having accurate information from each participating congregation. If your policies change, you can resubmit a new Subscription Agreement at any time. Thank you! |
Separation Pay: Severance or Paid Leave?
When an employee is asked to depart, the congregation might provide some form of separation pay. We're seeing congregations use the term "severance" when they are actually providing paid leave. From a payroll and benefits perspective, these are two very different options.
Let's say you have a staff member whose work responsibilities are to end May 31 but you want to provide them with salary and benefits through August 31. Here's are the two approaches:
Severance pay: The staff member is no longer employed as of May 31. They are off the payroll and can no longer receive employee benefits. Typically, severance pay would provided in a single lump sum reflecting the value of the salary and benefits (except professional expenses) for June through August. Benefits implications:
- If the employee wants to continue to receive health insurance through the plan you offer (UUA or other), they can go on COBRA.
- Retirement Plan contributions cannot be made on severance pay. (This is federal law.)
Paid Terminal Leave: Although relieved of all responsibilities, the staff member is still your employee until August 31. They continue on payroll and would normally stay on all benefits (except professional expenses), just as if they were still working.
There are pros and cons to each option, for both the employer and the employee. It's especially important to be clear to all parties about the payroll and benefits end date. Please reach out to Comp@uua.org for assistance in structuring your approach to separation pay.
Involuntary terminations are rarely easy, regardless of circumstances. Refer to our Compassionate Staff Terminations resource (button below) for financial options and other recommendations intended to help you ensure the best possible outcomes for the congregation while treating the employee with dignity and respect. |
Scholarship for Leaders Entering Seminary
Are you or someone you know a lay leader in Unitarian Universalism who will be entering the first year of seminary in 2025, or is undertaking undergraduate work to prepare for seminary? The Rev. Chuck and Nancy Thomas Scholarship honors Rev. Chuck Thomas’s career and his family’s commitment to lay leadership in Unitarian Universalism by awarding this scholarship to one such student each year. Thomas Scholars qualify for this award by demonstrating their outstanding commitment to Unitarian Universalism as lay leaders.
For more information and to apply for this and other ministerial scholarships available from the UUA, see the button below. Applications must be submitted no later than April 15, 2025. |
New leaders or employees? Changes to staff salaries or addresses? Let us know!
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UUA Church Staff Finances provides general information to
help equip and empower congregational leaders in their decision-making.
We are not legal or tax professionals and we do not track state law. Congregations are solely responsible for their legal obligations. We encourage you to consult your own legal and tax advisors for specific guidance. |
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