Pastoral Retirement Agreement

 1. The ________________________Church, of ____________________, (City, State), endeavoring to provide fair and just compensation for Reverend __________ ___________ who has served the congregation as pastor for _________ years with faithfulness and distinction, herein grants this retirement benefit to him with the following terms and conditions:

*2. The Church shall designate _______________% of the weekly tithe income to be paid to Reverend __________________________. This percentage shall be deducted from the gross tithing amount before it is divided and distributed to the various church ministries or funds. It shall be paid by check on a (weekly, monthly) basis for the remainder of his life. In the event that the retired pastor should decease, his widow shall continue to receive the same pension consideration without interruption for the remainder of her life.

3. The Church shall not make the pension for the retiring pastor contingent upon any financial gifts or offerings given by him to the church, any further performance of duties, nor any other obligations or demands made of him after his retirement.

4. In the event that the church cannot pay this obligation due to insufficient funds, it must issue a promissory note or its equivalent to the retired pastor. Any amount in arrears shall be considered an indebtedness to him and may not be arbitrarily dismissed. In the event that the church should disband or become defunct and the properties or holdings of the church be liquidated, the pension obligation to the retired pastor must be met.

5. Upon retirement, the pastor shall relinquish all positions in the church in which he possesses controlling authority. He may continue to serve the church in secondary roles at the consent of the pastor.

6. The retiring pastor shall restrict his conversation and interaction with the members of the church in any matters that involve pastoral counseling and admonition, unless he has the consent of the new pastor to do so. He shall respect the pastoral authority that resides in his successor and shall not cause or support any opposition to the pastor.

7. No provision of this agreement may be changed without the consent of each of the following people and groups: the retired pastor, the current pastor, the board of trustees, and the majority of the congregation. The permission from the majority of the congregation must be expressed by vote at a duly called business meeting of the church. Any change of the terms without the common consent of all the above shall be a violation of this agreement.

Signed: (Pastor) ________________________________________Date __________

Signed:(Assistant Pastor)________________________________ Date__________

Witness:________________________________________________Date__________

Witness:________________________________________________Date__________

* This provision may be replaced with one of the following:

2. The Church shall designate $___________ from the weekly tithe income to be paid to Reverend __________________________. This amount shall be deducted from the gross tithing total before it is divided and distributed to the various church ministries or funds. It shall be paid by check on a (weekly, monthly) basis for the remainder of his life. In the event that the retired pastor should decease, his widow shall continue to receive the same pension consideration without interruption for the remainder of her life.

2. The Church shall grant the sum of $____________________ to be paid in full to Reverend __________________________. Upon the payment of this amount, the church shall be under no further obligation to provide financial assistance or pension to him.

2. The church shall be authorized to borrow $_____________ from a lending institution to pay in full the retirement costs of the pastor. This loan may be in the form of a demand note, a conventional loan or a church mortgage. Upon the payment of this amount, the church shall be under no further obligation to provide financial assistance or pension to him.

(This form is intended to be a sample agreement.  You should consult an attorney before using this or any other contract form. JMJ)