Religious leaders spend their lives serving communities, offering guidance, comfort, and moral strength to uplift those who need it most. But when it comes to retirement, many clergy members haven’t been given the same support in return.
The Clergy Act, HR.227 aims to address concerns regarding that.
Co-led by California Congressmen Vince Fong and Mike Thompson, the Clergy Act has recently passed the House Ways and Means Committee with a unanimous 40-0 vote, aiming to give our religious leaders greater security in their retirement years.
Reversing the Irrevocable Exemption
Under current law, ordained ministers, members of religious orders, and other practitioners have the option to opt out of paying Social Security taxes on their ministerial income. Many clergy members, particularly early in their careers, chose to opt out of Social Security, trading a small but immediate tax saving for a loss of future security. In some cases, incomplete or inaccurate financial advice led to this short-sighted decision.
Once this exemption is made, it is permanent. This leaves many faithful servants – who have spent decades strengthening their communities – without the basic financial protections of Social Security, resulting in significant financial hardship for some in their later years.
The Clergy Act is intended to offer these religious leaders a second chance.
The legislation establishes a one-time, voluntary re-enrollment window for eligible clergy members to revoke their permanent exemption and opt back into Social Security coverage. The two-year re-enrollment window begins January 2029.
Conscience Over Politics
Co-sponsors Congressman Fong (Republican) and Congressman Thompson (Democrat) have championed this issue, underscoring its non-political nature. The unequivocal support from both sides of the aisle reaffirms the importance of the Social Security framework and its value to Americans looking to secure their retirement.
From Congressman Fong: “We know our faith leaders are the backbone of our communities… The Clergy Act gives them the freedom to re-enroll in Social Security if they previously opted out, empowering them to take greater control of their financial future.”
From Congressman Thompson: “Faith leaders play a critical role in supporting our communities — offering them the flexibility to opt in to Social Security as they plan for retirement just makes sense.”
The overwhelming support for the Clergy Act is a testament to the essential role faith leaders play in our society.
The bill is also backed by a broad coalition of faith-based and retirement security organizations, including the National Association of Evangelicals, the Evangelical Council for Financial Accountability (ECFA), and AARP.
Clergy Act Details
The Clergy Act does not modify existing Social Security regulations. Eligible clergy must still meet the standard 10-year contribution requirement to earn full retired-worker benefits, receiving benefits proportional to their contributions. The bill also requires the IRS and Social Security Administration to submit a plan to Congress outlining their strategy to inform clergy members of their eligibility to re-enroll.
Next Steps
As the Clergy Act moves to the House floor for a full vote, it carries with it the strong momentum of unanimous committee approval.
Guardian Group works diligently with our clients so they can work toward retirement with the dignity and financial security they deserve.
This legislation is a meaningful step forward, but there are still many people who view retirement though a lens of uncertainty. If that’s you, contact the Simplicity Guardian team to discuss your personalized retirement trategy today!
