With so many line items making up a clergy’s compensation package, how exactly does one apply a cost of living adjustment (COLA) to their salary package. When a COLA is given to a clergy’s salary, the adjustment is made on their base + housing. Since housing is a fixed number, the total adjustment is added to the base compensation. Then the Social Security Offset(allowance) is calculated off of the new base + housing. Here’s an example to help clarify (using a 10% COLA): Old Salary: $2,000 – Base $1,000 – Housing $229.50 – SS Offset(7.65 of base + housing) $3229.50 – Old Total Compensation Cost of Living Adjustment: $2,000 x 10% = $200 – Base $1,000 x 10% = $100 – Housing Total Adjustment to base + salary = $300 New Salary $2,300 – Base (Old base + Total COLA) $1,000 – Housing (remains the same) $252.45 SS Offset(7.65 of base + housing) $3552.45 – New Total Compensation< Back
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