H.R. 227 — Clergy Act, as amended
Executive Summary
The 'Clergy Act' (H.R. 227) provides a limited open-enrollment window for members of the clergy, religious workers, and Christian Science practitioners to revoke their prior exemption from Social Security coverage. Under current law, clergy can opt out of Social Security for religious reasons early in their careers, but this decision is generally irrevocable, leaving many without retirement safety nets later in life. This bipartisan bill creates a revocation window extending through the tax filing deadline for the second taxable year beginning after December 31, 2028, allowing these individuals to opt back into the system, pay self-employment taxes, and accrue benefits.
Arguments For
- Provides a critical safety net correction for clergy members who opted out of Social Security early in their careers without fully understanding the long-term financial consequences.
- Generates a short-term revenue bump for the Social Security trust funds through the influx of new self-employment tax (SECA) payments from opting-in clergy.
- Represents a bipartisan, low-controversy technical fix that appeals to religious constituencies and older Americans.
Likely Supporters
Arguments Against
- May lead to adverse selection, where only clergy nearing retirement age who stand to gain disproportionately from the benefit formula choose to opt back in, creating a long-term net cost to the Social Security system.
- Creates administrative burdens for the IRS and SSA to process retroactive tax payments, integrate new earnings records, and execute the mandated outreach plan.
Likely Opponents
📋 Key Provisions
- Creates a window for clergy to revoke their Social Security exemption, with applications due no later than the tax return deadline for their second taxable year beginning after December 31, 2028.
- Makes the revocation permanent; applicants may not subsequently re-apply for the exemption under section 1402(e)(1).
- Requires payment in full of retroactive self-employment taxes if the application is filed after the due date of the tax return for the year the revocation becomes effective.
- Mandates the IRS and SSA to develop and submit a congressional report within 90 days of enactment detailing a plan to inform eligible clergy about this revocation opportunity.
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Verification Guide
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Establishes the deadline for revocation applications as the due date for the applicant's second taxable year beginning after December 31, 2028.
"later than the due date of the Federal"
Prohibits individuals from applying for the exemption again after they have revoked it.
"plicant for any such revocation may not thereafter again"
Requires the IRS to submit a plan to Congress within 90 days to inform clergy of their eligibility to revoke.
"Not later than 90 days after the date"