Key points:
- The new Compass retirement plan for U.S. clergy honors The United Methodist Church’s commitment to providing an income stream for clergy throughout retirement.
- Compass is designed to be more affordable for the denomination and more sustainable for the church’s future.
- Transitioning to Compass challenges us to “lead courageously” through change, writes Andy Hendren, Wespath’s top executive.
Photo courtesy of Wespath.
Commentaries
If you’re a United Methodist clergyperson, a conference benefits officer, treasurer or church administrator, you’ve likely heard a lot about Compass, the new clergy retirement plan launching Jan. 1, 2026.
If you attended annual conference in the spring, you heard even more. Wespath was grateful and honored to present about Compass at all 51 U.S. annual conferences this year. We appreciate the thoughtful questions and dialogues that followed.
Compass is more than a new plan. It’s a reflection of our shared commitment to care for those who serve (Wespath’s mission statement) and to lead courageously (from The United Methodist Church’s new vision statement). Compass was shaped by rethinking how we can meet two crucial goals: ensuring clergy are financially cared for in retirement, while also ensuring clergy benefits are sustainable for local churches and annual conferences long into the future.
What is Compass, and why now?
What: Compass is a new retirement plan for U.S. clergy that was approved overwhelmingly by General Conference in 2024. Starting Jan. 1, Compass will supersede the Clergy Retirement Security Program. CRSP had both defined benefit (DB or “pension”) and defined contribution (DC or “account balance”) components; Compass is entirely a DC or account balance plan.
Why: The need for change has been coming for a while. With fewer congregants attending church, there are fewer dollars in local church giving plates, making it harder for local churches and annual conferences to continue managing the uncertainty of funding lifelong pension obligations. Compass was designed to meet this moment, providing secure retirement benefits for eligible clergy without creating new long-term liabilities (decades-long obligations) for the denomination.
What’s changing — and what’s not
If you’re retired, your benefits remain unchanged. If you’re in active ministry, you will keep what you’ve earned through Dec. 31, 2025, under CRSP. Then starting in 2026, new benefits will accrue under Compass. The CRSP DB (pension) accrued benefit will increase annually (to account for inflation), and CRSP DC accounts will eventually be merged into Compass.
What clergy need to know: Top 10
Compass may seem complex, so we’ve broken it into easy-to-recall facts. If you’re a U.S. clergyperson, these are your top 10 “need to know” details:
- Contribute 4% of your plan compensation. Making personal contributions that are at least 4% of your “plan compensation” (from your salary) into Compass ensures you will receive the full United Methodist Church matching contribution into your Compass account balance. This is the single most impactful action you can do today to help be financially prepared for retirement years from now.
- Church contributions add up. Each month, The United Methodist Church will contribute $150 plus 3% of your plan compensation plus a dollar-for-dollar match on your personal contributions up to 4% of your plan compensation (as described in No. 1).
- You’ll keep what you’ve already earned. Again, if you are retired, your benefits will continue as they currently do. If you are in active ministry, your accrued benefits in CRSP remain intact.
- Compass can’t solve systemic pay inequities, but it has features to help lower-paid clergy. The United Methodist Church and Wespath are sensitive to concerns about pay inequity, especially for clergy of color, female clergy and clergy serving rural and small church appointments. Compass has two important features that can help level the savings playing field, particularly for younger and lower-paid clergy. One is a student loan feature, allowing clergy with student loans to pay their debt and have it count as a personal contribution to Compass, thus earning matching contributions in Compass from The United Methodist Church. The other is that the value of living in a parsonage is increased compared to CRSP, counting as an additional 35% of pay for “plan compensation” (up from 25% under CRSP).
- Eligibility includes some part-time clergy. Compass has the same eligibility rules as CRSP. Full-time clergy and bishops are automatically enrolled in Compass. Annual conferences can choose to cover clergy with 75% or 50% appointments, including those with multi-charge appointments. Annual conferences also can choose to cover other clergy groups in Compass, such as those serving extension ministries.
- LifeStage helps you stay on track by optimizing monthly income in retirement.
- While you’re working: Contributions from The United Methodist Church are managed through LifeStage Investment Management, which uses industry-leading practices to automatically adjust your investment portfolio based on factors such as your age and your preferred tolerance for investment risk.
- When you retire: An important goal of Compass is providing regular income in retirement. With that goal in mind, your United Methodist Church contributions and the earnings on those are managed by LifeStage Retirement Income, an award-winning program designed to optimize income flow in retirement (helping you not spend too little or too much from year to year).
- We’re here to help. Wespath provides ongoing information for participants through many channels, including our Compass webpage. In addition, EY Financial Planning Services can help you fit your 4% of plan compensation contribution into your budget.
- Drop us a line. Participants can send a question or message to Wespath 24/7 through Benefits Access. A customer service representative should respond within one business day. Simply click on the “Messages” link in the right-hand corner of your Benefits Access screen.
- Update your beneficiaries. We encourage you to review your beneficiaries at least once per year in Benefits Access (go to benefitsaccess.org or login through the Wespath.org website).
- Learn more. Wespath wants to ensure clergy, local churches and annual conferences feel informed and ready for this transition. We’ve created a variety of materials for you. Please visit our Compass webpage for videos, FAQs and more. (Click on the “Compass” box from the Wespath.org webpage.)
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We know that change is never easy. But Compass is a change rooted in care, innovation, courage and commitment to the future. A more affordable and sustainable retirement plan enables all of us to lead courageously in our respective ministries, serving God, our communities and the church we love.
Hendren is the general secretary/chief executive officer of Wespath. He joined Wespath in 2004 and has served as top staff executive since January 2022.
News media contact: Julie Dwyer at (615) 742-5470 or [email protected]. To read more United Methodist news, subscribe to the free UM News Digest.
