Stewardship & Budget 2024

STEWARDSHIP MINISTRIES

Recommendations from the Council on Finance and Administration

1. The proposed budget of $18,281,537 shall be adopted for 2025, including a mission share income budget of $12,223,047. This represents a decrease of $341,682 or 2.7% in the mission share asking compared to the 2024 budget.
2. The Benevolence Factor (BF) for 2025 will be reduced from 17.45% down to 17.40%. The collection rate assumption for 2025 is set at 87.0%, which is the same as the 2024 assumption.
3. As required by The Book of Discipline, the ratio for World Service and Conference Benevolences shall be set as follows: 33% for World Services and 67% for Conference Benevolences.
4. The firm of Ellin & Tucker is approved as independent auditors to audit the Conference Treasurer’s financial records for 2024.
5. The date for closing the 2024 Conference financial books shall be set as January 14, 2025, with all payments to be received by the Treasurer’s Office no later than that date.
6. The Baltimore-Washington Conference grants authority to the Council on Finance and Administration, in consultation with the Bishop, the Cabinet, and the Discipleship Council to act on financial matters between sessions of the Annual Conference. 

Submitted by:
Rev. Daryl Williams, President
Paul J. Eichelberger, Chief Financial Officer and Treasurer

At a Feb. 24 meeting, Connectional Table members voted for concurrence with these recommendations.

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STEWARDSHIP MINISTRIES

Recommendations from the Commission on Equitable Compensation

The Commission on Equitable Compensation is recommending that the base salary for the 2025 Clergy Salary Table be increased 2.0%, or $998, which will make the base salary $50,908.  The Commission is also proposing an increase in the recommended housing allowance of 2.0% or $441, which will make the recommended housing allowance $22,477.

Submitted by:
Kim Ayres, Chair, Commission on Equitable Compensation

At a Feb. 24 meeting, Connectional Table members voted for concurrence with these recommendations.

STEWARDSHIP MINISTRIES

2024 RECOMMENDATIONS FROM THE CONFERENCE BOARD OF PENSIONS AND HEALTH BENEFITS

The Conference Board of Pensions and Health Benefits requests that the Annual Conference adopt the following recommendations:

1. That BWC continue to provide retiree medical to all eligible participants.
2. That in accordance with paragraph (e) of Supplement One (Pre-1982), the surviving spouse pension benefit shall continue to be 85% of the participant’s formula.
3. Pre-1982 Service – Past Service Rate (PSR):   That the Annual Conference shall approve the following pre-1982 prior service funding plan in compliance with the Disciplinary requirement listed in ¶1506.8:  The Past Service Rate (PSR) for 2024 will be set at $840.  The PSR for 2025 will be set at $874.
4. That the Annual Conference shall approve the following funding plans based on the receipt of a favorable opinion from Wespath Benefits and Investments in compliance with the Disciplinary requirement listed in ¶1506.6.

Funded status and contributions are based on actuarial valuations as of January 1, 2023, 

Pre-82 Plan:  Baltimore-Washington Conference is fully funded, with its Pre-82 Plan assets equal to 128% of its liabilities.

Corridor Funding:  Clergy Retirement Security Program (CRSP-DB) and Ministerial Pension Plan (MPP) annuities.  The funded Ratio for this funding is the same for all Conferences.

Plan	Assets	Liabilities	Funded Ratio
CRSP-DB	$2.957B	$2.419B	122%
MPP Annuities	$4.798B	$3.695B	130%

Post-Retirement Medical:  Based on the biennial actuarial report received in February 2024, the Post-Retirement Medical plan is reported to have a current view funding ratio of 168.3%.  The ongoing view funding ratio is 199.9%.  These funding ratios are higher than the 106.7% and 174.8% values that were respectively reported in the previous report.  An increase in the discount rate from 2.80% to 5.02% resulted in most of the increase in the current view funding ratio.  There was also an increase in the plan funding from $47.3M to $54.68M that resulted in a higher funding ratio for both the current view and ongoing view.  This report provides a good indication that the retiree medical benefits are properly funded for the long-term since the funding ratios are greater than 100%.  The next actuarial report will be based on December 31, 2025 funding levels.

The Post-Retirement Medical funding plan as of December 31, 2023 is summarized below:

	Current View	Ongoing View
Discount Rate	5.02%	6.50%
Plan Liability	$32,497,722	$27,353,793
Plan Funding	$54,680,000	$54,680,000
Funded Status	$22,182,278	$27,326,207
Funded Ratio	168.3%	199.9%

5. That the following resolution, as required for IRS compliance, shall be approved:

Resolutions Relating to Rental/Housing Allowances for Retired or Disabled Clergypersons of the Baltimore-Washington Conference

The Baltimore-Washington Conference (the “Conference”) adopts the following resolutions relating to rental/housing allowances for active, retired, or disabled clergypersons of the Conference:

WHEREAS, the religious denomination known as The United Methodist Church (the “Church”), of which this Conference is a part, has in the past functioned and continues to function through ministers of the gospel (within the meaning of Internal Revenue Code section 107) who were or are duly ordained, commissioned, or licensed ministers of the Church (“Clergypersons”);

WHEREAS, the practice of the Church and of this Conference was and is to provide active

Clergypersons with a parsonage or a rental/housing allowance as part of their gross compensation; 

WHEREAS, pensions or other amounts paid to active, retired and disabled Clergypersons are considered to be deferred compensation and are paid to active, retired and disabled Clergypersons in consideration of previous active service; and

WHEREAS, the Internal Revenue Service has recognized the Conference (or its predecessors) as the appropriate organization to designate a rental/housing allowance for Clergypersons who are or were members of this Conference and are eligible to receive such deferred compensation;

NOW, THEREFORE, BE IT RESOLVED:

THAT an amount equal to 100% of the pension or disability payments received from plans authorized under The Book of Discipline of The United Methodist Church (the Discipline), which includes all such payments from the General Board of Pension and Health Benefits ("GBOPHB"), during the years 2024-2025 by each active, retired, or disabled Clergyperson who is or was a member of the Conference, or its predecessors, be and hereby is designated as a rental/housing allowance for each such Clergyperson; and

THAT the pension or disability payments to which this rental/housing allowance applies will be any

pension or disability payments from plans, annuities or funds authorized under the Discipline, including such payments from the GBOPHB and from a commercial annuity company that provides an annuity arising from benefits accrued under a GBOPHB plan, annuity or fund authorized under the Discipline, that result from any service a Clergyperson rendered to this Conference or that an active, retired or disabled Clergyperson of this Conference rendered to any local church, annual conference of the Church, general agency of the Church, other institution of the Church, former denomination that is now a part of the Church, or any other employer that employed the Clergyperson to perform services related to the ministry of the Church or its predecessors, and that elected to make contributions to, or accrue a benefit under, such a plan, annuity or fund for such active, retired, or disabled Clergyperson's pension or disability as part of his or her gross compensation.

NOTE: The rental/housing allowance that may be excluded from a Clergyperson's gross income in any year for federal income tax purposes is limited under Internal Revenue Code section 107(2) and regulations there under to the least of: (1) the amount of the rental/housing allowance designated by the Clergyperson's employer or other appropriate body of the Church (such as this Conference in the foregoing resolutions) for such year; (2) the amount actually expended by the Clergyperson to rent or provide a home in such year; or (3) the fair rental value of the home, including furnishings and appurtenances (such as a garage), plus the cost of utilities in such year.

Three United Methodist Churches in the Baltimore-Washington Conference have requested to be closed, following God’s call for their congregations. We give thanks to God for their faithful ministries and the witness they have provided to their communities and the world.

DISTRICT SUPERINTENDENT CHURCH CLOSURE RESOLUTION - 1

Title: Resolution to Close the Mount Vernon United Methodist Church, Whiteford, MD
Budget Implications: None
Rationale: Local Church voluntarily transfers title to Conference Trustees
Submitted by: Rev. Dr. Ann Laprade, Baltimore Suburban District Superintendent

RESOLUTION: 

Whereas, in the Baltimore Suburban District, the congregation of Mount Vernon United Methodist Church on the Whiteford: Mount Vernon Charge Charge, located at 1510 Deep Run Rd, Whiteford, MD 21160, has served God faithfully through the United Methodist Church for many years, and

Whereas, in recent years the congregation has experienced a decline in membership and financial stewardship, and it is no longer feasible to keep it open and operational as a church, and

Whereas, during a Church Conference on November 20, 2023, between sessions of the Baltimore-Washington Conference, the leaders of Mount Vernon United Methodist Church voted to voluntarily transfer title to all its real and personal, tangible and intangible property to the Conference Board of Trustees following procedures set forth in paragraphs 2540 and 2541 of The Book of Discipline of The United Methodist Church (2016);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Mount Vernon United Methodist Church closed as of June 30, 2024, and

Be it further resolved, that the Conference Board of Trustees are authorized to take possession of the real and personal, tangible and intangible property of Mount Vernon United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God. 

EFFECTIVE DATE: May 31, 2024

 

DISTRICT SUPERINTENDENT CHURCH CLOSURE RESOLUTION - 2

Title: Resolution to Close the Saint Matthews United Methodist Church, Baltimore, MD
Budget Implications: None
Rationale: Local Church voluntarily transfers title to Conference Trustees
Submitted by: Rev. Dr. Wanda Duckett, Baltimore Metropolitan District Superintendent 

RESOLUTION: 

Whereas, in the Baltimore Metropolitan District, the congregation of Saint Matthews United Methodist Church on the Baltimore: Saint Matthews Charge, located at 627 N. Bouldin St, Baltimore, MD 21205, has served God faithfully through the United Methodist Church for many years, and

Whereas, in recent years the congregation has experienced a decline in membership and financial stewardship, and it is no longer feasible to keep it open and operational as a church, and

Whereas, during a Church Conference on April 3, 2024, between sessions of the Baltimore-Washington Conference, the leaders of Saint Matthews United Methodist Church voted to voluntarily transfer title to all its real and personal, tangible and intangible property to the Conference Board of Trustees following procedures set forth in paragraphs 2540 and 2541 of The Book of Discipline of The United Methodist Church (2016);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Saint Matthews United Methodist Church closed as of June 30, 2024, and

Be it further resolved, that the Conference Board of Trustees are authorized to take possession of the real and personal, tangible and intangible property of Saint Matthews United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God. 

EFFECTIVE DATE: May 31, 2024

 

DISTRICT SUPERINTENDENT CHURCH CLOSURE RESOLUTION - 3

Title: Resolution to Close the Violetville United Methodist Church, Baltimore, MD
Budget Implications: None
Rationale: Local Church voluntarily transfers title to Conference Trustees
Submitted by: Rev. Dr. Wanda Duckett, Baltimore Metropolitan District Superintendent 

RESOLUTION: 

Whereas, in the Baltimore Metropolitan District, the congregation of Violetville United Methodist Church on the Baltimore: Violetville Charge, located at 3648 Coolidge Ave, Baltimore, MD 21229, has served God faithfully through the United Methodist Church for many years, and

Whereas, in recent years the congregation has experienced a decline in membership and financial stewardship, and it is no longer feasible to keep it open and operational as a church, and

Whereas, during a Church Conference on March 11, 2024, between sessions of the Baltimore-Washington Conference, the leaders of Violetville United Methodist Church voted to voluntarily transfer title to all its real and personal, tangible and intangible property to the Conference Board of Trustees following procedures set forth in paragraphs 2540 and 2541 of The Book of Discipline of The United Methodist Church (2016);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Violetville United Methodist Church closed as of April 21, 2024, and

Be it further resolved, that the Conference Board of Trustees are authorized to take possession of the real and personal, tangible and intangible property of Violetville United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God. 

EFFECTIVE DATE: May 31, 2024