Eder Financial staff worked with the denominational staff, the Pastoral Compensation and Benefits Committee, and attorneys to add a Housing Equity Fund for pastors to Eder Retirement Plan. This is essential for pastors living in a congregation-provided parsonage, as it allows them to build equity and save for a future home. This new fund is an outgrowth of an earlier fund set up in cooperation between Church of the Brethren Inc. and the Praxis Fund. The earlier fund had only been used by a small number of pastors and was not tax advantageous for pastors.
The fund gives pastors a tax-advantaged way to save for a house within Eder Retirement Plan. Churches are encouraged to put one percent of the fair market value of their parsonage into this new fund and to send it when they send the funds for their pastor’s retirement plan. By creating a separate bucket for the pastor’s housing, the denomination provides the means for pastors to have funds to help them buy a home. If a pastor has not purchased a home by retirement age, he or she can pull the money out for any other purpose.
Any church with a pastor living in a parsonage should reach out to Eder about participating in this program. It’s a valuable tax benefit that offers long-term security and peace of mind. Email retirement@eder.org for more information.
