Big news recently came out of P&B office in Lenexa and my response is six words: “Thank you! Thank You! Thank You!!”

To say that the Church of the Nazarene’s old, old retirement plan was a joke—would be a laughable understatement if it weren’t so true. Those in the old retirement plan barely get enough to buy a daily cup of coffee. I pastored several years under the old plan, but not long enough to be “grandfathered” into it. I get zippo for those years of service. Yippee! (Please read that “Yippee” sarcastically). One Nazarene retiree told me of his whopping $133.93/a month payout. Another retired pastor told me he receives $283 monthly for 36 years of service. Yippee (please read that “Yippee” sarcastically too). 

Most of pastors in the Church of the Nazarene are in the current 403(b) plan which gives a whopping max payment from the denomination of $450 (that’s if the church paid its budgets and pastor contributed $250 of their money). When I tell people this news, usually they say, “the church puts $450 into your retirement account each month? Not bad.” 

“No. Each year.” 

Generally, the follow-up response is “Ugh… glad I’m not a pastor in the Church of the Nazarene.”

But that’s changing. Thank you. Thank you. Thank you. (You can read the article detailing the new plan by Kevin Gilmore, the director of Pensions and Benefits, here).

Beginning in 2024, the new max payout is $2500 a year (that’s a 50% match of the “local” contribution. The “local contribution” is pastor’s and church’s contribution combined). This is HUGE—especially for young pastors. It will help old timers like me in these final years as we head into the home stretch of retirement. But for young pastors in their 20s, 30s and even 40s, it’s a really big change and can make a big difference in their retirement planning. 

Here’s how it works if the “local” contribution is $5000: For example, if the church contributes $2500 and the pastor contributes $2500, then the denomination tosses in $2500. So the pastor’s $2500 investment in their retirement, turns into a $7500 contribution. Over the course of 36 years of service to the church, the pastor will be far, far ahead of my friend who receives $283 a month. Yippee (that “yippee” is for real!).

It’s a no brainer. Pastors, churches and the denomination in cooperation can now make a meaningful effort to prepare for the pastor’s retirement. I hope each church looks into how they might supplement their pastor’s retirement and that every pastor also contributes to take advantage of this new change.

The only string attached is for local churches to pay their P&B budget. Even this is an improvement. The P&B office will look at a five-year average, in case a church has an off year and is unable to pay in full the P&B budget. Also there is no string attached to payment of the church’s educational budget. The new plan is simpler, more generous and hopefully will not leave our Nazarene retirees living below the poverty line. 

Again to Kevin Gilmore, the P&B staff, the General Superintendents or to whomever made this decision: Thank you! Thank you! Thank You!