Monday, October 8, 2018
Hey Fletch … We have had some long tenured staff who are going to retire. With previous people who have retired, we have awarded gifts in varying amounts from $3,000-$5,000 to retirees.
I am trying to determine how other larger churches handle retirement gifts. Our attendance is over 3,000 and we have a budget of $6 million. Do other large churches have a policy concerning retirement gifts? If a financial gift is given, do they have a set amount or a graduated scale based on years of service?
DRF—Churches are all over the map on retirement gifts. Some churches do nothing. Some churches do a fixed amount depending on the type of employee, such as pastors, administrative staff and support staff. Some churches do a percentage of salary based on the number of years worked. Some churches do a fixed amount for each year worked at the church. Some churches do unique numbers based on each circumstance.
I wish that I could give you a “best practice” for this issue. There is no dominant practice on retirement gifts. Do remember, though, that the gift is a bonus and taxable income to the person.
A good practice would be to set your policy and be consistent in the implementation. The key is consistency in what you do from year to year and person to person. You may want to compile a list of past retirement gifts, as a way to be consistent in the years to come.