President Donald Trump signed into law a measure that allows clergy — including Catholic priests and bishops — to opt back in to Social Security and Medicare if they had previously opted out of the program.
Under the tax code, clergy may opt out of Social Security and Medicare taxes for ministerial work but cannot receive the benefits if they do. A person who opts out typically cannot reverse that decision, but the law, supported by the U.S. Conference of Catholic Bishops (USCCB), opens a two-year window for members of clergy to opt back in if they have changed their minds.
The law, signed on Oct. 20, allows clergy members to opt back in during the 2029 or 2030 tax years, but they must still meet the standard contribution requirements to receive benefits. The House of Representatives passed the bill 350-5 on April 27, and the Senate cleared it by unanimous consent on Sept. 30.
According to a news release from the House Ways and Means Committee, about 2,000 people take the opt-out. This is the third time Congress offered a temporary window for clergy to reverse their opt-outs, with the last time being 1999.
“America’s pastors and faith leaders spend their lives caring for others,” Rep. Jason Smith, R-Missouri, chair of the House Ways and Means Committee, said in a statement.
“Many chose to opt out of Social Security when they were young and just starting their ministry,” he said. “A single, sometimes ill-advised, decision made decades ago should not stand between them and a secure retirement.”
Support from Catholic bishops
When reached for comment, the USCCB referred EWTN News to an April 14 letter supportive of the bill, signed by Archbishop Shelton Fabre, chair of the USCCB Committee on Domestic Justice and Human Development, and Archbishop Ronald Hicks, chair of the USCCB Committee on Clergy, Consecrated Life, and Vocations.
The letter states that the bill offers “much needed relief and support for priests and religious who previously opted out of Social Security and Medicare to opt back into the programs.”
“For one reason or another, many clergy members, often decades prior and due to inaccurate financial advice, opted out of contributing,” the letter states.
It adds that the bill helps clergy “move toward a more complete retirement” and offers a “more comprehensive financial and physical wellbeing as they transition into the next phase of their lives and ministries.”
“Priests and religious have spent their lives in service to Christ by ministering to the faithful and those in need,” the letter adds. “[The legislation helps] enable them to obtain better financial and physical health in their retirement.”
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