What Compensation does LifeWays’ Board Receive?
LifeWays is committed to transparency and accountability in all aspects of its governance. Questions are sometimes raised about how Board members are compensated and whether they receive benefits. The following information explains how Board member compensation is structured and the policies that apply.
Do Board Members Receive a Salary?
No.
LifeWays Board members do not receive a salary.
Board members receive a per diem of $70 for each day they attend an approved Board meeting or authorized Board function, regardless of the number of meetings attended that day. This amount is consistent with the compensation provided to county commissioners in Jackson and Hillsdale Counties and is established through LifeWays policy.
Board members may also be reimbursed for mileage at the current IRS reimbursement rate when traveling to approved Board meetings or functions.
References:
LifeWays Operating Procedure 01-02.04 Board Member Reimbursement and Documentation
Michigan Mental Health Code, Section 205
Do Board Members Receive Health Insurance or Other Employee Benefits?
No.
Board members are not eligible for employee benefits offered to LifeWays employees.
Board members do not receive:
Health insurance
Paid time off
Holiday pay
Leave benefits
Retirement/Pension benefits
Board members serve as public officials responsible for governance and oversight of the organization.
References:
LifeWays Board Governance Policies
Why Is Money Deposited into a 457(b) Account?
LifeWays is a Community Mental Health Authority and does not participate in Social Security under a Section 218 agreement.
Organizations that do not participate in Social Security must provide a compliant retirement replacement arrangement.
To meet this requirement, LifeWays deducts an amount equal to the Social Security contribution that would otherwise have been withheld and deposits those funds into a 457(b) account for Board members.
This arrangement is required because of LifeWays' Social Security replacement structure. It is not a pension benefit, and LifeWays does not provide matching contributions to Board members.
Board members cannot opt out of this arrangement.
Board members may make additional voluntary contributions to their 457(b) account if they choose; however, LifeWays does not match those contributions.
References:
Section 218 Agreement Requirements
FICA Replacement Plan Requirements
LifeWays Board Governance Policies
At a Glance
Board Members Receive:
$70 per diem for approved meeting days
Mileage reimbursement at the current IRS rate
Board Members Do Not Receive:
Salary
Health insurance
Paid time off
Holiday pay
Pension benefits
Employer retirement matching contributions
Related Information
Questions about Board member classification under federal tax law and the Michigan Mental Health Code are addressed in our companion resource: www.lifewaysmi.org/board-faq/board-job-class
Learn More
LifeWays remains committed to transparency and public accountability. Board policies, governance documents, meeting materials, and Freedom of Information Act (FOIA) resources are available to the public through our website.