payouts may be impacted depending on contribution decisions made byFINANCIAL IMPACT** 

(August 24, 2022)

 The financial impact to Christ Church as a result of disaffiliation falls into a small number of categories. These categories are:

  • Initial assessments by the United Methodist Church (UMC) for disaffiliation
    • If a church disaffiliates, the UMC requires them to pay an amount to fully fund the pension fund for pastors who have been at UMC in the past. It has been determined that the balance owed by Christ Church is -0- at this time. In addition, they must be current in the payment of apportionments through 2022 and Christ Church is current.
  • Other one-time costs as a result of disaffiliation
    • These would be primarily legal costs to review documents of incorporation, handle filing fees for deeds, review legal implications, etc.
    • These costs will be easily covered by the savings in the 2023 budget as noted below.
  • Impacts to future church budgets
    • The calculation below of impact on future budgets is based on 2022 budget numbers in order to compare “apples to apples”. For instance, we know how much the UMC apportionments cost for 2022 and we know what the formula will be to compute the GMC apportionments for 2023 (it is based on total operating income). If that formula was applied to our 2022 income, there would have been a significant decrease in apportionments costs. It should be noted that the apportionment costs will likely increase over time under GMC but should remain considerably less than under UMC.

There may be impacts on the clergy if Christ Church moves to the Global Methodist Church.

  • Changes in pension plans
  • Changes in health benefits plans
  • There are intangibles that are impossible to assess. For instance, contributions could be impacted positively or negatively if we gain or lose members because of disaffiliation. However, it is our prayer that this will be minimal. 


** Some final cost elements are premature. Therefore, the estimated cost in this document will continue to be revised as more information becomes available.


Financial Impact Calculation

(If Christ Church moves to the Global Methodist Church by 12/31/2022)

One-time costs:

Initial assessments

  • Unfunded pension liability ($0)
  • Verification of apportionments ($0)
  • Other one-time costs
    • Legal Fees (estimated) ($25,000)

Total Estimated One-time Costs: $25,000

Church budget impacts in 2023:

  • Apportionments differential ($-180,265)
  • Pension plan contributions differential ($-16,986)
  • Health benefits payments differential (rates not yet available, but will likely increase) ($+2,400)  

Total 2023 Budget Impact ($-194,851)


The health plans have been defined and will be available through GMC on January 1, 2023. Rates will be available by November 2022, so the health benefits payments differential above is an estimate. Pastors appointed to GMC churches will be required to participate in the GMC health plan. Christ Church currently pays the premiums for clergy and their families. It is anticipated that the rates will be higher than the plans through UMC and, therefore, will increase the church budget. 

There will likely be some impact on the benefits received by the clergy. Health plans will probably be similar. Pension payouts may be impacted depending on contribution decisions made by the clergy.

There have been questions about possibly moving to the Free Methodist Church. Total costs to the budget would decrease under that option. Apportionments would decrease in 2023 by $79,000; pension plan costs would be essentially the same, and health benefit costs would increase an estimated $5,000. The overall budget impact would be a decrease of approximately $74,000.