Congress Advances Bill Allowing Clergy to Rejoin Social Security

A bill is advancing in the U.S. Congress that would provide a new opportunity for clergy members who previously opted out of Social Security to opt back in. Historically, many clergy chose to exempt themselves from Social Security due to the 15.3% SECA tax on church income and moral objections to receiving government benefits. However, for some, this decision has resulted in insufficient retirement benefits, leading to financial difficulties later in life. Programs such as Mission Dignity offer support to retired clergy facing poverty, but these efforts highlight the challenges associated with opting out of Social Security in the long term. The decision to opt out often involves complex considerations, including tax implications and personal beliefs, but current trends suggest fewer clergy may be opting out as the number of churches declines and larger congregations offer better staff benefits. The potential policy change would allow clergy a limited period to reinstate their Social Security coverage, possibly improving financial outcomes for retired clergy members. This legislative development reflects ongoing debates about the balance between tax burdens on clergy income and the provision of adequate retirement security within religious vocations.