Last Thursday, Congressman Kevin McCarthy held a press conference with local pastors about his newly introduced bill, the Clergy Act of 2020. This bill would offer ministers – many of whom opted out of paying into Social Security in their youth – a two-year “open season” to effectively opt-in to Social Security.
McCarthy released the following statement:
“In speaking with pastors throughout our community and faith leaders across the country, it became clear to me that clergy members need more choice and adaptability when it comes to planning for their retirement, including the ability to opt back into Social Security. The Clergy Act would accomplish two important things. First, it would empower faith leaders to decide what is best for their retirement and provide them a second chance to re-enroll into Social Security. Second, the Clergy Act would allow clergy members who do choose to opt-in to Social Security access to Social Security disability benefits should they ever need them in the future. This legislation is long overdue – faith leaders deserve more freedom and flexibility as they plan for retirement.”
The Clergy Act would allow ministers who have previously opted out of self-employment social security to opt back in. An application must be filed by a minister no later than the due date of the Federal income tax return (including any extension thereof) for the minister’s second taxable year beginning after December 31, 2020. This proposed legislation does not require the payment of retroactive social security taxes for years before the opt-in is effective.
The Board of Retirement will monitor the progress of the Clergy Act of 2020 and will update our Free Will Baptist family of any future developments.
For more information, read the full article here, or view the bill here.
