Clergy stipend continuance insurance

Description

This article outlines the insurance coverage provided for paid members of the clergy in the Diocese, including personal accident and income protection.

Overview

Under the Insurance for Members of the Clergy Ordinance, the Synod must maintain insurance forclergy in case of sickness or accident. This applies when the clergyperson is paid by a parish or the Diocese. Two policies are maintained:

• Personal accident policy: Pays a fixed lump sum for injury-related expenses like
• Stipend continuance policy: Offers income protection if a clergy person is unable to work due to illness.

Clergy in South Australia are not covered by ReturnToWork SA (formerly WorkCover).

Stipend continuance policy

This policy provides a degree of income protection for a clergyperson who can’t work due to illness. The Stipend Continuance policy is provided by AMP and managed by the Oakmont Financial Group on behalf of the Synod.

In case of total disability (unable to work at all):

• Benefit: 75% of base stipend + housing allowance + superannuation
• Waiting period: 90 days
• Duration of benefits:
• To age 65 if under 63 at the end of the waiting period
• 2 years if aged 63 or older

If receiving full benefits, clergy must not engage in any paid work, or they risk losing the benefits.

Partial disability

Clergy returning to part-time work but earning less due to illness may receive a ‘top-up’ to reach 75% of the total stipend package. Continued eligibility requires monthly medical reports from the treating doctor.

How benefits are paid

• Paid to the parish or ministry entity and processed through payroll
• Taxable as income
• If a claim is lodged, the stipend should be adjusted to match the expected benefit

Waiting period 

• Starts from the date of medical consultation for illness/injury
• Lasts 90 days
• During this time, clergy use accrued sick/annual leave
• Returning to work for fewer than 10 days won’t reset the waiting period
• If returning to work for more than 10 days, the waiting period restarts

Personal Policies

Clergy may hold personal life or income protection policies. These are separate from diocesancoverage. The Diocese cannot give financial advice, and clergy are encouraged to consult a licensed adviser.

How to claim

Please contact the Ministry & Parish Support Team. Claims will then be referred to Oakmont FinancialGroup for management, who will manage the process confidentially.