dventist Church leaders gathered in Silver Spring, Maryland, voted a new wage scale that implements a remuneration policy voted in October. These historic actions represent the first major change to the church's remuneration policy in nearly 60 years.

The General Conference Executive Committee vote follows the new pay scale for North American Division (NAD) employees approved in November. NAD's action marked the end of a four-year research process to review salaries. Both wage scales go into effect on July 1, 2003.

The GC wage plan is based on the same compensation rates as the NAD scale for pastors, departmental personnel at local conferences and unions, and the division (see calculations below).*

GC Wage Scale NAD Wage Scale Annual Council Remuneration Vote Complete Text of the GC Policy Gerry Karst Speech NAD Remuneration Vote NAD Remuneration Policy

Church leaders say the new remuneration plan offers flexibility for various types of employment situations, while still underscoring the sacrificial philosophy that the church has traditionally held. It is also built around the Adventist pastor. Under the plan, employee remuneration is composed of three elements: the monthly denominational remuneration voted by NAD in November 2002 ($3,505*), a cost of living factor determined by the Economic Research Institute for specific geographical locations ($901.21 monthly in the Washington, D.C. area), and a remuneration percentage assigned by job classification.

A typical GC department director's remuneration percentage is 112 percent, making his/her annual salary $59,219 ($3,505 + $901.21 = 4,406.21 x 112% x 12 months = $59,219). GC officers receive slightly higher percentages while associate and assistant departmental directors have slightly lower percentages.

While the new policy sets a cap for the division president's salary at 25 percent above the local pastor's salary, and a cap for the GC president at five percent above the division president, each of these leaders' remuneration will be significantly below their respective caps, says Gerry Karst (pictured above), a GC vice president who chaired the Remuneration Commission.

The committee also approved special remuneration percentages within the limitations set by the remuneration policy for alternate pay scales for attorneys serving in the GC Office of General Counsel and physicians serving in the GC Health Ministries Department, both of which presently exceed that of the GC president.

While physicians have historically been paid within denominational guidelines, GC undertreasurer Steve Rose said the attorneys will have a five-year window to come into compliance with the new pay system. Under the alternate pay scales, attorneys' salaries will be capped at 156.25 percent of the maximum level of an ordained minister.

GC treasurer Robert Lemon indicated that requests from certain GC institutions (publishing houses, educational institutions, and the church's insurance entity) to be treated under the alternate remuneration scale (that is, capped at 156.25 percent of an ordained minister) will be held until Annual Council in October because minor policy amendments will be needed to implement their wage scales. Church policy is only changed at Annual Council meetings.

Adventist healthcare facilities and health food companies, who do not depend on the Adventist church membership for their major support, are exempted from the policy.

"Establishing remuneration plans and scales is not a perfect, nor a finished process," says Karst. "I do believe that we have made significant progress toward providing more flexibility while retaining limits that keep the world family together."

* In November, 2002, the NAD Executive Committee set the division's monthly remuneration factor at $3,505 and designated 102 percent as the baseline percentage for ordained ministers, effective July 1, 2003. There is also a monthly cost-of-living factor as determined by Economic Research Institute (ERI) for each geographic location. In the Washington D.C. area the adjusted monthly ERI factor is $901.21. To calculate a pastor's annual salary, multiply the remuneration and ERI factors by the remuneration percentage by 12 months ($3,505 + $901.21= 4,406.21 x 102% x 12 months = $53,932).