RECTOR LETTER OF AGREEMENT

who has been elected Rector with the understanding that this tenure is to continue until dissolved by mutual consent or by arbitration and decision as provided by the relevant Canons of the Diocese of Maryland and of the General Convention.

PREAMBLE

The Rector shall lead (name) Church as pastor, priest and teacher, sharing in the councils of this congregation and of the whole Church, in communion with our Bishop. By word and action, informed at all times by the Holy Scriptures, the Book of Common Prayer, and the Constitution and Canons of the General Convention and our Diocese, the Rector shall proclaim the Gospel, love and serve Christ's people, nourish them, and strengthen them to glorify God in this life and in the life to come.

This ministry is further described in the Rector Position Description approved by the Rector, Wardens and Vestry on [DATE], which is hereby acknowledged and made part of this Letter of Agreement.

ALTERNATE WORDING REGARDING POSITION DESCRIPTION

This ministry will be further described in a Rector Position Description which meets the mutual approval of the Rector, Wardens and Vestry, to be completed between the seventh and twelfth month of their ministry together. When the Rector Position Description has been thus completed, it shall be considered a part of this Letter of Agreement.

SECTION A - TIMES OF WORK AND LEAVE

1) The Rector's work includes not only activities directed to the parish and its well-being, but also labors on behalf of the Diocese and community. Clergy are considered to be “professionals” and are expected to manage their schedules to reflect the demands of the ministry while maintaining their own physical and spiritual health, as described in the Compensation & Benefits Manual and in the Rector Position Description. The Rector is expected to preserve at least one continuous twenty-four hour period each week solely for personal and family use.

2) The Rector will have the following periods of leave at full compensation:

• National Holidays, to be taken so as not to interfere with worship for major occasions.
• One month Annual Vacation, consisting of twenty-three workdays, which shall include five Sundays. No more than (number) days and one Sunday may be carried forward to succeeding years.
• Professional Development Leave, at the rate of two weeks per year.
• Two weeks per year of service in this parish for Sabbatical Leave, to be available after the third year, and cumulative through the sixth year. Sabbatical arrangements shall be made in full in full consultation with the Vestry, to ensure benefits for the parish as well as for the Rector.
• (Number) weeks Parental Leave for the period immediately surrounding the birth of a child to the Rector/Rector's wife, beginning at a time decided by the Rector.

SECTION B - COMPENSATION

1) The Rector's annual cash salary will be (amount), paid monthly on or before the (date) day of the month, to be reviewed and adjusted annually in light of changes in the Consumer Price Index and the current Diocesan minimum clergy salary standard. Upon the Rector's request, the Vestry will designate a portion of the total cash salary as “Housing Allowance” under the Federal Internal Revenue Code.

2) The Rector shall receive SECA Reimbursement payments, quarterly before the 15th of April, June, September, and December, according to the following formula: ________________________

3) The Vestry shall provide the following benefits:

• Church Pension Fund Assessment on the sum of the Rector's total annual cash salary (including Housing Allowance), plus the Rector's SECA Reimbursement.
• Medical and dental coverage equivalent to or better than the standard group plan provided through the Diocese, for the Rector and his/her dependants, according to Section 3 of the Compensation & Benefits Manual.
• Group Life and Accidental Death and Dismemberment Insurance, equivalent to or better than the group plan provided through the Diocese.
• Workers' Compensation Insurance, as provided by State Law.

ALTERNATE WORDING FOR CHURCH-PROVIDED HOUSING

1) The Rector's annual cash salary will be (amount), paid monthly on or before the (date) day of the month, to be reviewed and adjusted annually in light of changes in the Consumer Price Index and the current Diocesan minimum clergy salary standard. Upon the Rector's request, the Vestry will designate a portion of the total cash salary as "Housing Allowance" under the Federal Internal Revenue Code.

The Rector shall have full use of the Rectory at (address) as personal residence. No parish activities will be planned at the Rectory without the invitation of the Rector's household. Expenses connected with the Rectory shall be handled as follows:

• Utilities shall be contracted for and paid directly by the Vestry.
• Expenses for repair, remodeling and major appliances shall be paid by the parish in accordance to an annual plan and budget mutually agreed to by the Rector and Vestry. Within that plan and budget, the Rector may authorize such expenditures, up to [AMOUNT] monthly, reporting them within ten days to the Vestry.
• Use and maintenance of Rectory grounds are at the Rector's discretion and personal expenses with the exception of major alterations to the basic landscaping plan, and such grounds maintenance items as may be included in the annual plan and budget referred to above.
• Church Pension Fund Assessment on the sum of: the Rector's annual cash stipend; the Rector's SECA Reimbursement; the actual cost of Rectory utilities; and the value of the use of the Rectory according to the Church Pension Fund Formula.

ALTERNATE WORDING FOR SPECIAL CASES

• If equivalent or better HHI is provided independently through the employment of the Rector's spouse, the Rector may sign a waiver to forgo the Diocesan HHI plan. The Vestry will then not provide duplicate coverage but will use the amount of the Diocesan HHI premium as follows: _______________. If at any time the Rector revokes the waiver, the Vestry will provide HHI in accordance with the Diocesan plan.

SECTION C - EXPENSES

The Vestry shall pay the following expenses incurred by the Rector in fulfilling the duties of office:

1. Travel expenses are to be reimbursed at the current IRS recommended rate upon the presentation of appropriate documentation, plus out-of-pocket costs of parking fees, tolls, bus fares, etc.
2. The normal expenses of the church's office operation, such as telephone, postage, office equipment, supplies, secretarial services, etc.
3. An expense allowance (up to amount annually) for reimbursement of expenses incurred in the course of professional activities on behalf of [NAME] Church.
4. The cost of a telephone in the Rector's residence. This telephone number shall be published to ensure the Rector's ready accessibility in case of emergencies. The Rector shall pay the cost of all personal long distance calls.
5. A Professional Development Allowance of at least (amount) per year, to be reviewed annually, set aside January 1 each year in a special account, and paid to or on behalf of the Rector toward expenses incurred in relation to Professional Development Leave. Unexpended portions of this allowance shall be allowed to accumulate for use in succeeding years up to six years.

SECTION D - DISCRETIONARY FUND

In accordance with the canons of General Convention, a Discretionary Fund is to be established under the Rector's sole control, from the following sources: [NAME SOURCES HERE], and gifts given the Rector for the purposes of the Discretionary Fund.

SECTION E - SUPPLEMENTARY COMPENSATION

The Rector shall not charge fees for performing any rites of the Church (for example, baptisms, marriages, funerals) for members of [NAME] Church. The Rector may, however, receive income from other sources, such as:

• Sacramental services on behalf of persons not in any way related to [NAME] Church.
• Fees and honoraria for professional services performed on personal time for groups unrelated to [NAME] Church, or for sermons, books or articles published outside the parish.

ADDITIONAL WORDING FOR SPECIAL CASES

The Rector may engage in income producing activities up to a total of (number) days per year, which shall not be counted against any leave time.

SECTION F - USE OF BUILDINGS

In addition to use and control of the Church and Parish buildings for the discharge of duties of the Rector's office, as provided by canon law, the Rector shall have the right to grant use of the buildings to individuals or groups from outside the parish, following guidelines approved by both Rector and Vestry.

SECTION G - MUTUAL MINISTRY REVIEW

The Rector, Wardens and Vestry agree to an annual discussion and mutual review of the total ministry of the parish, in order to:

• Provide the Rector, Wardens and Vestry opportunity to assess how well they are fulfilling their responsibilities to each other and to the ministry they share.
• Establish goals for the work of the parish for the coming year.
• Isolate areas of conflict or disappointment which have not received adequate attention and may be adversely affecting mutual ministry.
• Clarify expectations of all parties to help put any future conflicts in manageable form.

A mutually agreed upon third party shall be engaged to facilitate the mutual ministry review process.

SECTION H - OTHER AGREEMENTS

1) All moving and travel expenses incurred in making the move from (old address) to (new address) shall be paid by (name) Church. Moving expenses shall include family travel, transporting household goods, reasonable temporary accommodations during the move, and an Incidental Expenses Allowance of up to two week's compensation [AMOUNT].

2) The moving date shall be the week of (date). The Rector shall begin duties in the parish not later than [DATE], unless delayed by adverse circumstances.

3) All pay and benefits shall become effective on (date).

4) This Letter of Agreement, and its related Position Description, shall be made part of the minutes of the next Vestry meeting following its signing, and copies shall be given to each new Vestry member.

5) The Rector shall attend all meetings of the Fresh Start Program offered by the Diocese for a period of twenty-four months at the beginning of his or her tenure within the congregation.

6) In the event of the Rector's death, the Vestry agrees to continue payment of the Rector's Cash Salary, and appropriate Health and Hospital Insurance to the Rector's surviving direct dependents for a period of 3 months.
{ALTERNATE WORDING FOR CHURCH-PROVIDED HOUSING: 6) In the event of the Rector's death, the Vestry agrees to continue to provide the Rector's surviving direct dependents with the compensation items agreed to in Section B (1) and (2), and appropriate Health and Hospital Insurance for a period of [NUMBER] months. Continued use of the Rectory beyond this term shall be subject to agreements entered into during the term.}

7) This letter may be revised only by mutual agreement at the time of the annual mutual ministry review, except that compensation and expenses revisions shall be mutually agreed upon in a separate budget process.

8) If the Rector and Vestry are in disagreement concerning interpretation of this Letter of Agreement, either party may appeal for mediation to [NAME] or another mutually agreed upon third party, the Bishop remaining the final arbiter.

9) Should it be necessary to dissolve this agreement, unless otherwise spelled out herein, severance will be paid at the rate set by the Standing Committee.

Date ______________ (signed) _____________________________________ Rector

Date ______________ (signed) _____________________________________ Senior Warden

Reviewed:

Date ______________ (signed) _____________________________________ Vocational Ministries Officer

Approved:

Date ______________ (signed) _____________________________________ Bishop