Stewardship & Budget 2026

STEWARDSHIP MINISTRIES

Recommendations from the Council on Finance and Administration

1. The proposed budget of $18,505,650 shall be adopted for 2027, including a mission share income budget of $12,174,756. This represents an increase of $220,931 or 1.8% in the mission share asking compared to the 2026 budget.
2. The Benevolence Factor (BF) for 2027 will remain at 17.25% after being reduced from 17.40% the prior year. The collection rate assumption for 2027 is set at 86.0%, which has increased from 85.0% in the 2026 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 2026.
5. The date for closing the 2026 Conference financial books shall be set as January 12, 2027, 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

STEWARDSHIP MINISTRIES

Recommendations from the Commission on Equitable Compensation

A. The Commission on Equitable Compensation is recommending that the base salary for the 2027 Clergy Salary Table be increased 3.0%, or $1,581, which will make the equitable base salary $54,273 for full-time appointments.

B. The Commission is also proposing an increase in the recommended housing allowance of 3.0% or $695, which will make the recommended housing allowance $23,846.  The recommended housing allowance is based on the median housing prices throughout the conference.

C. As established by the 2025 Annual Conference, the 2026 minimum clergy reimbursement is set at 10% of the equitable base salary or $5,427 for full-time appointments, an increase of $158.

Submitted by:
Greg Kernan, Chair, Commission on Equitable Compensation

CONFERENCE BOARD OF PENSIONS AND HEALTH BENEFITS

The Board of Pensions and Health Benefits continues to pursue its goal of enabling clergy and lay staff to accomplish their ministries without concern for their long-term financial or medical protection. We continue to position ourselves to face the challenges that lie ahead and to assist clergy and staff in their mission.

Pensions/Retirement Plans: 

• Pre-82 Service Funding: The 2026 Past Service Rate (PSR) is confirmed at $909.  We recommend that the PSR for 2027 be set at $946.  ¶1506.7 (2016 Discipline) confers authority upon the annual conference to review the annuity rate for Pre-82 service and to adjust the PSR rate as appropriate taking into consideration the changes in the economy. Such annuity rate may remain the same or be increased without restriction.  Wespath Benefits and Investments actuarial valuation for Pre-82 Annuities as of January 1, 2025, showed preliminary numbers of a fully funded plan, requiring no monies to be paid by BWC.  Pre-82 plan surplus results from increases in valuation of the securities in the account.  Wespath has authorized a mechanism by which we have been able to employ some of the excess Pre-82 funds to indirectly fund our Retiree Medical Plan reserve. 

• Pre-82 is the pension plan in place prior to 1982.

• Clergy Retirement Security Program (CRSP-DB) and Ministerial Pension Plan (MPP) Funding: Wespath Benefits and Investments’ actuarial valuation for CRSP-DB and MPP Annuities as of January 1, 2025, showed that no conference contribution due in 2027. Monies previously contributed to MPP continue to be held in individual participant accounts.

CRSP-DB has been closed for future benefits accruals effective December 31, 2025. Starting January 2026 and beyond there will no longer be a normal cost component in the annual contribution calculation. Denominational Average Compensation will continue to increase by 2% annually.

• MPP is the pension plan in place from 1982 through 2006.
• CRSP is the pension plan from 2007 through 2025.

Compass Retirement Plan for U.S. Clergy:

All eligible Clergy have been successfully enrolled in Compass effective January 1, 2026.

Compass is an account-based, defined contribution (DC) plan. Compass is funded by the church and the clergy’s personal contributions. Compass gives individual participants greater flexibility and control over their own retirement savings and investment options than they have with a traditional pension/defined benefit plan.  Any balance remaining after the clergy person’s lifetime can be left to their beneficiaries. The Baltimore-Washington Conference funds the program as follows:

Church Contributions:

• $150 per month for full-time clergy participants that is prorated for part-time clergy participants, plus 7% of the clergy participant’s total plan compensation will be billed to the local church. Total plan compensation is cash salary (base pay) plus housing, or the parsonage value of 35% of cash salary (base pay) with a minimum parsonage value of $10,000.

Clergy Contribution:

• $1/S1 match up to 4% of total plan compensation. Clergy are encouraged to contribute at least 4% of total compensation into their Compass account to receive the full 4% match.

Comprehensive Protection Plan (CPP): 

• BWC continues to collect 3% of a clergy participant’s plan compensation (salary plus housing) for the Comprehensive Protection Plan (CPP). The CPP provides death and disability benefits for all eligible participants.  As of the last General Conference, Wespath Benefits and Investments revised their policies to treat clergy mental illness in the same fashion as any other illness for CPP purposes.  The Conference Board of Pensions and Health Benefits has voted to provide the necessary funds to eliminate anti-mental illness discrimination for lay employees as well.  

UMLifeOptions:

• Active ordained clergy appointed to ½ or ¼ time are now enrolled in UMLifeOptions, BWC will collect 3% of clergy participant’s plan compensation (salary plus housing) to cover the premiums.

Health:  

• HealthFlex: All eligible participants have been successfully enrolled in the Wespath HealthFlex Exchange Plans. The HealthFlex Exchange brings more plan options; more flexibility for enrollees to select the HealthFlex plan that best fits each individual’s needs. The HealthFlex Exchange is not a public exchange and is not associated with government agencies.  It is a multiple-option group health plan designed for United Methodist Church clergy, lay employees and their families.   
• Retirees:  Retirees who are over age 65 will continue to work with Via Benefits, to choose policies better suited to their individual needs.  Retirees are offered an HRA based on years of service.  For 2026, the HRA for clergy with 30 years of service was increased by 3.0% to $4,355.  Retirees who are under age 65 or any future participants who retire before age 65 will remain on the HealthFlex Exchange plan until the month they turn 65.

Social Security:  Your Board strongly recommends that all clergy of the Conference participate in Social Security and not exercise any conscience clauses to opt out of Social Security.  Eligibility for Medical benefits through Via Benefits in retirement and Disability benefits through the CPP program, are both dependent on participation in Social Security and Medicare.  Thus, one’s irrevocable decision to opt out of Social Security is a decision to be excluded from these Conference programs as well.

Arrearage:  In order to assure that nothing interferes with clergy continued medical and pension coverage, BWC first makes the necessary payments to Wespath when due and then collects the premiums from individual churches.  There is a continuing problem with a small number of churches which fall behind in this pastoral compensation commitment.  A Church in arrears may be offered a forbearance program.  Churches successfully completing this program may have their arrearage converted to a contingent liability on the church property with subsequent collection of the amount due should the church property be sold. 

Final Comments:  The CBOPHB thanks Francess Spaine, Director, Benefits and Human Resources for her enthusiastic and professional work on behalf of our participants and the Board.  She effectively communicates and administers the benefits based on Plan rules and regulations, the Book of Discipline, the Conference's policies and procedures, and all applicable state and federal laws so that there is an understanding of the benefits for our clergy and lay employees.  It is her goal and the Board's goal to continue to provide the best possible benefits package for our plan participants, while maintaining the utmost care for and fiduciary responsibility to you, the Plan participants, and those in the Baltimore-Washington Conference for whom we owe the same.  We wish to also give thanks to Karen Conroy, HR & Benefits Administrator, Pier McPayten, Controller, the District Superintendents and the entire Stewardship team who all support the work we do. 

 

Carl Eichenwald, Chair
Paul J. Eichelberger, Conference Treasurer

2026 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 continues 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 ¶638.6:  The Past Service Rate (PSR) for 2026 is set at $909.  The PSR for 2027 will be set at $946.
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.

Funded status and contributions are based on actuarial valuations as of January 1, 2025,

Pre-82 Plan: Baltimore-Washington Conference is fully funded, with its Pre-82 Plan assets equal to 130% 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	$3.021B	$2.592B	117%
MPP Annuities	$4.863B	$3.782B	129%

Post-Retirement Medical: Based on the biennial actuarial report received in April 2025, the Post-Retirement Medical plan is reported to have an Accumulated Postretirement Benefit Obligation (APBO) funding ratio of 155.5%.  The Expected Postretirement Benefit Obligation (EPBO) funding ratio is 132.4%.  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, 2026 funding levels.

The Post-Retirement Medical funding plan as of December 31, 2024, is summarized below:

	APBO	EPBO
Discount Rate	5.50%	5.50%
Plan Liability	$35,178,392	$41,303,009
Plan Funding	$54,680,000	$54,680,000
Funded Status	$19,501,608	$13,376,991
Funded Ratio	155.5%	132.4%

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 2026-2027 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.

DISTRICT SUPERINTENDENT CHURCH CLOSURE RESOLUTION - 1

Title: Resolution to Close the Oldtown United Methodist Church, Oldtown, MD
Budget Implications: None
Rationale: Local Church voluntarily transfers title to Conference Trustees
Submitted by: Rev. John Wunderlich, Canal District Superintendent

RESOLUTION: 

Whereas, in the Canal District, the congregation of Oldtown United Methodist Church on the Oldtown: Oldtown Charge, located at 18811 Oldtown Rd, SE, Oldtown, MD 21555, has served God faithfully through the United Methodist Church for many years, and

Whereas, over several 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 May 8, 2025, between sessions of the Baltimore-Washington Conference, the remaining members of Oldtown 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 (2020/2024);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Oldtown United Methodist Church closed as of June 30, 2025, 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 Oldtown United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God.

EFFECTIVE DATE: May 29, 2026

DISTRICT SUPERINTENDENT CHURCH CLOSURE RESOLUTION - 2

Title: Resolution to Close the Asbury United Methodist Church, Hagerstown, MD
Budget Implications: None
Rationale: Local Church voluntarily transfers title to Conference Trustees
Submitted by: Rev. John Wunderlich, Canal District Superintendent 

RESOLUTION: 

Whereas, in the Canal District, the congregation of Asbury United Methodist Church on the Hagerstown: Asbury Charge, located at 155 Jonathan St, Hagerstown, MD 21740, has served God faithfully through the United Methodist Church for many years, and

Whereas, over several 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 25, 2025, between sessions of the Baltimore-Washington Conference, the remaining members of Asbury 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 (2020/2024);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Asbury United Methodist Church closed as of December 31, 2025, 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 Asbury United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God. 

EFFECTIVE DATE: May 29, 2026