SIGNED INTO LAW: U.S. Senators Maggie Hassan and Katie Britt’s Clergy Act to Support America’s Faith Leaders

WASHINGTON — Bipartisan legislation led by U.S. Senators Maggie Hassan and Katie Britt (R-AL) to support faith leaders who want to opt back into Social Security was recently signed into law. The Clergy Act , will allow clergy members who previously opted out of Social Security a time-limited opportunity to opt back in to coverage. “I’m pleased to see our bipartisan Clergy Act signed into law. Clergy are important members of communities across New Hampshire, who help lead their congregation and provide comfort for Granite Staters during quiet moments and in difficult times,” said Senator Hassan. “This commonsense measure will allow clergy to opt back into Social Security and help them to safeguard their financial future and plan for a dignified retirement.” Prior to this law, certain members of the clergy could make a one-time, irreversible decision to exempt their ministerial earnings from self-employment taxes. If they elected to do so, they would not receive Social Security and Medicare benefits based on that income. Most clergy members are automatically covered by Social Security, but those who are conscientiously opposed may exempt themselves. Opting out excuses them from paying Social Security taxes and makes them ineligible for benefits, a decision often made early in their careers that some come to regret. The Clergy Act will give these faith and community leaders a two-year re-enrollment window to opt back into Social Security coverage. Consistent with current eligibility requirements, clergy members who opt back in will generally need to earn 40 Social Security credits, typically requiring about 10 years of covered work, to qualify for Social Security retirement benefits. The bill will also require the IRS to develop and submit to Congress a plan to notify clergy members of their eligibility to revoke their exemptions. Congress has repeatedly given clergy members who exempted themselves from Social Security the opportunity to opt back in, including in 1977, 1986, and most recently in 1999 through the Ticket to Work and Work Incentives Improvement Act. This legislation is endorsed by the Church Alliance, and Evangelical Council for Financial Accountability (ECFA). To view the bill text, click here . ###