your guide to understanding the ymca retirement … library/flipbook...years do not have to be...

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Y M C A R e t i R e M e n t f u n dY M C A R e t i R e M e n t f u n d


One of the primary benefits of working for

a Y is that you can build your savings with

the YMCA Retirement Fund. In the course of

your Y career, you might move from one Y to

another, but your savings will stay

at the YMCA Retirement Fund.

The YMCA Retirement Fund sponsors

two plans: the Retirement Plan and the

Savings Plan.

The Retirement Plan is a 401(a) defined

contribution account balance plan. This

means that benefits at retirement are deter-

mined by the amount in your account during

your working career, plus interest credited.

The Savings Plan is a 403(b) plan, which

offers you a way to save additional money

for your future, from your first day of

employment at a Y.

WHEN yOu START

As soon as you start working for a Y, you

can begin to save with a 403(b) Smart

Account. You can also roll over money

from eligible employer pension plans or

certain IRAs to a Rollover Account.

Path to Saving for Your Future

ELIGIBILITyTo be enrolled in the Retirement Plan, you

must have completed 1,000 hours of service

during each of any two 12-month periods,

beginning with your date of hire. The two

years do not have to be consecutive. You

must also be at least age 21.

ENROLLMENT AND

vESTINGWhen you meet the eligibility

requirements, your Y will enroll

you in the Retirement Plan. When you’re

enrolled, you are immediately vested.

cONTRIBuTIONS TO yOuR

RETIREMENT PLAN AccOuNTS

Contributions are based on your

compensation. Some Ys pay

the entire amount. Others require that

both you and your Y pay.

ADDITIONAL SAvINGS

You can add to your retirement nest egg by

saving with a 403(b) Smart Account. The

account is tax-deferred, so income taxes on

contributions and earnings are postponed

until you take a withdrawal or start your

annuity. You can start, stop, or change the

amount you want to save at any time.

You can also roll over money to a

Rollover Account if you haven’t already

done so.

HOW THE FuND INvESTS

The money saved in the plans is invested

in a variety of vehicles, including stocks

and bonds, to ensure future growth and to

assure retirement income to all participants

who retire from a Y. The Fund’s Board of

Trustees declares the interest rate that will

be credited to your accounts based on how

well the investments perform and other con-

siderations.

THE SOONER yOu START SAvING, THE MORE yOuR EARNINGS WILL GROW

important decisions about the annuity option

that’s best for you.Depending on the amount you have saved,

you can decide whether to withdraw your

savings or start an annuity from each plan,

and these decisions can be made for each

plan at different times.

AccOuNT GROWTH

Your savings grow based on the level of

contributions being made and interest

credited to your accounts. What’s more,

the earlier you begin to save with a 403(b)

Smart Account, the faster your savings will

grow.

AT RETIREMENTOnce you are no longer working for a Y,

you can start receiving an annuity from the

Retirement Plan and/or the Savings Plan

as early as age 55. An annuity pays you a

monthly income for life. You’ll need to make

• Eligibility

YOUR GUIDE TO THE YMCA RETIREMENT FUND

Inside you’ll find clear, easy-to-read explanations to many of the key aspects and intricacies of the Retirement Plan and the Savings Plan, including how to get started, and how to build your savings.

Visit the Fund’s website at: www.yretirement.orgYMCA Retirement Fund, 140 Broadway, New York, NY 10005

• Enrollment

• Annuities

• Contributions

• Other Benefits

September 2013

• How the Plans Work

A n E a s y - t o - U n d e r s t a n d I n t r o d u c t i o n t o t h e Retirement Plan and the Savings Plan

This Guide was originally created in 2002 as a joint effort by the YMCA Retirement Fund and Lightbulb Press. (www.lightbulbpress.com)

PHOTO CREDITSYMCA of the USA

IMPORTANT TERMINOLOGYPlease note that use of the terms listed below have the following meanings:• Retirement Plan—the YMCA Retirement Fund Retirement Plan• Savings Plan—the YMCA Retirement Fund Tax-Deferred Savings Plan• 403(b) Smart Account—the account for pre-tax contributions under the

YMCA Retirement Fund Tax-Deferred Savings Plan

ELEVENTH EDITION ©2013 YMCA RETIREMENT FUND. ALL RIGHTS RESERVED.If any inconsistencies arise between this guide and the Plan Documents, the language in the official Plan Documents will govern.The YMCA Retirement Fund has made every attempt to ensure the accuracy of this material, however, it should not be construed as legal, accounting, financial, investment or other advice. The Fund reserves the right to revise this information at any time to correct errors or otherwise. If it appears that any item is incorrect, please contact the YMCA Retirement Fund.

Y and the Y logos are registered trademarks of the YMCA of the USA and used with permission. YMCA Retirement Fund and the YRF logo are trademarks owned by the YMCA Retirement Fund.

WELCOME TO THE YMCA RETIREMENT FUND


Y M C A R E T I R E M E N T F U N D

PLAN FOR A LONG RETIREMENTHaving an annuity that provides income for life is important since many of us will look forward to spending as many (if not more) years retired as we worked during our Y careers. Experts call this “longevity risk.”

As this chart shows, there is a 50% chance that a 65-year-old male will live to age 85, a woman to age 88 and at least one spouse in a married couple to age 91.

PLANNING AHEADThe earlier you start saving for retire-ment, the better off you will be. You should save at least 15% of your salary each year throughout your career in order to retire comfortably.

SOURCES OF INCOMEThere are three categories of income that may be available to provide for your retirement:

• YMCA Retirement Fund plans and other pension plans

• Personal savings and investments

• Social Security

Since Social Security benefits won’t cover all of your expenses, it’s crucial to take sav-ing for retirement into your own hands.

As a Y employee, you are given a special opportunity to save for your future. The Savings Plan and Retirement Plan enable you to build up your savings.

Why Save for Your Future?THE SAVINGS PLANStarting on your first day of employment, you can save tax deferred in a 403(b) Smart Account and roll over your savings from another eligible employer pension plan or certain IRAs.

THE RETIREMENT PLANOnce you’re enrolled in the Retirement Plan, your Y will contribute a part of your retire-ment savings.

RETIREMENT

PLAN

SAVINGS

PLAN

Age 65

PROBABILITY OF A 65-YEAR-OLD LIVING TO VARIOUS AGES

70 75 80 85 Source: Morningstar Inc.

100%

75%

50%

25%

090 95 100 105

85 88 91

MaleFemaleAt Least One Spouse

Age

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One of the primary benefits of working for a Y is that you can build your savings with the YMCA Retirement Fund. In the course of your Y career, you might move from one Y to another, but your savings will stay at the YMCA Retirement Fund.

The YMCA Retirement Fund sponsors two plans: the Retirement Plan and the Savings Plan.

The Retirement Plan is a 401(a) defined contribution account balance plan. This means that benefits at retirement are deter-mined by the amount in your account during your working career, plus interest credited.

The Savings Plan is a 403(b) plan, which offers you a way to save additional money for your future, from your first day of employment at a Y.

WHEN YOU STARTAs soon as you start working for a Y, you can begin to save with a 403(b) Smart Account. You can also roll over money from eligible employer pension plans or certain IRAs to a Rollover Account.


ELIGIBILITYTo be enrolled in the Retirement Plan, you must have completed 1,000 hours of service during each of any two 12-month periods, beginning with your date of hire. The two years do not have to be consecutive. You must also be at least age 21.

ADDITIONAL SAVINGSYou can add to your retirement nest egg by saving with a 403(b) Smart Account. The account is tax-deferred, so income taxes on contributions and earnings are postponed until you take a withdrawal or start your annuity. You can start, stop, or change the amount you want to save at any time.

You can also roll over money to a Rollover Account if you haven’t already done so.

HOW THE FUND INVESTSThe money saved in the plans is invested in a variety of vehicles, including stocks and bonds, to ensure future growth and to assure retirement income to all participants who retire from a Y. The Fund’s Board of Trustees declares the interest rate that will be credited to your accounts based on how well the investments perform and other con-siderations.

THE SOONER YOU START SAVING,

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Y M C A R E T I R E M E N T F U N D Y M C A R E T I R E M E N T F U N D

ENROLLMENT AND VESTINGWhen you meet the eligibility requirements, your Y will enroll you in the Retirement Plan. When you’re enrolled, you are immediately vested.

CONTRIBUTIONS TO YOUR RETIREMENT PLAN ACCOUNTSContributions are based on your compensation. Some Ys pay the entire amount. Others require that both you and your Y pay.

THE MORE YOUR EARNINGS WILL GROW

important decisions about the annuity option that’s best for you.

Depending on the amount you have saved, you can decide whether to withdraw your savings or start an annuity from each plan, and these decisions can be made for each plan at different times.

ACCOUNT GROWTHYour savings grow based on the level of contributions being made and interest credited to your accounts. What’s more, the earlier you begin to save with a 403(b) Smart Account, the faster your savings will grow.

AT RETIREMENTOnce you are no longer working for a Y, you can start receiving an annuity from the Retirement Plan and/or the Savings Plan as early as age 55. An annuity pays you a monthly income for life. You’ll need to make

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WHAT IS TAX-DEFERRED?It’s important not to confuse tax-deferred savings with tax-free savings. When you save for retirement in a 403(b) Smart Account, you’re postponing taxes, not eliminating them. When you retire or take money out of your account, you’ll pay income tax on the amount you withdraw.

Although there’s no guarantee what the tax rates will be in the future, many people find that they pay income tax at a lower rate after they retire.

ROLLOVERSWhether you are a new employee or have been working at the Y for a while, you can roll over amounts into the Savings Plan from another eligible employer pension plan or certain IRAs.

LOANSWhile you are working for the Y, you can borrow from your accounts in the Savings Plan—the 403(b) Smart Account and the Rollover Account. If you have both a 403(b) Smart Account and a Rollover Account, the amount you borrow will be split between them. You may borrow up to 50% of your total balance in the Savings Plan, or $50,000 (minus your highest outstanding loan bal-ance from the prior 12 months if you have previously taken another loan), whichever is less. The minimum amount you can borrow is $1,000. All interest you pay will be cred-ited back to your accounts. Loan terms are a maximum of five years and repayment is through payroll deduction.

403(b) SMART ACCOUNTAny employee of a participating Y can par-ticipate in the Savings Plan by opening a 403(b) Smart Account starting on their first day of employment.

Saving with a 403(b) Smart Account is easy. You agree to have a percentage or dol-lar amount withheld from your paycheck and deposited into your account.

By saving in this account, you reduce your taxable income. You’ll still have to pay Social Security and Medicare taxes on the amounts you save, but you won’t have to pay federal income taxes on those amounts, or on the account’s earnings until you withdraw them from the Savings Plan or begin receiv-ing an annuity. In most cases, you can defer state and local taxes as well.

Savings for Life

TAX-DEFERRED SAVINGS:PUTTING ON A CAPThe federal government sets lim-its on the amounts you can save annually. To learn more about the limits, go to www.yretirement.org, Contribution Limits Calculator. If you are age 50, these limits are increased. If you’ve worked for a Y for at least 15 years, you may be able to save additional amounts in your 403(b) Smart Account.

403(b) Smart Account


THE MORE MONEY YOU PUT IN YOUR 403(b) SMART ACCOUNT...

THE DOUBLE ADVANTAGE OF TAX DEFERRALTHE LOWER YOUR TAXABLE SALARY...

THE LESS TAX YOU PAY...

AND THE FASTER YOUR SAVINGS WILL GROW.

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Let’s look at two examples: Mark chooses not to save any tax-deferred money in a 403(b) Smart Account. With $30,000 in taxable Y income and assuming he lives in a state with no state income tax, his monthly net income will be around $2,251. Krista, on the other hand, decides to open a 403(b) Smart Account. Despite the fact that she’s saving $100 a month, her net income is only $85 a month less than Mark’s.



Krista Mark

Taxable Y Income $30,000 $30,000

403(b) Smart Savings of $100 per month –1,200 –

Taxable Y Income after Savings $28,800 $30,000

Federal Income Taxes –2,804 –2,984

Annual Net Y Income $25,996 $27,016

Monthly Net Y Income $2,166 $2,251

THE FINE PRINTTo get the benefits of tax deferral, you can-not withdraw from your 403(b) Smart Account before you turn 59½. If you do, you may owe a 10% federal penalty tax on the amount you take out, in addition to any income tax that’s due.

While you are working at a Y and are under age 59½, you may only withdraw from your account if you have an IRS-qualified financial hardship. The Fund requires proof of your hardship.

Before taking a hardship withdrawal, you must take all available withdrawals and non-taxable loans from plans maintained by your Y. This includes taking a loan from the Savings Plan.

If you take a hardship withdrawal, you cannot make contributions to your 403(b) Smart Account for six months.

If you’re 59½ or older, you can withdraw your entire account without pen-alty, although federal taxes will still apply. State tax laws vary.

Y RETIREES SAY…“Put in as much as you can and forget it’s there. When it’s your time to retire, you will be pleasantly sur-prised how much you have accu-mulated by not touching it.”

“Get in the habit of saving and start early in your career; it is the length of time you are saving that makes the difference.”

“Take full advantage of the tax sav-ings — and keep your expenses low — one reason I am having more fun is that I am not worrying about money.”

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As a Y employee, once you’ve met eligi-bility requirements, participation in the Retirement Plan is mandatory. As a par-ticipant, you’re taking a major step toward preparing for your financial future. While there are some rules and requirements you should know about, your Y is responsible for enrolling you on time.

DETERMINING YOUR ELIGIBILITYYour eligibility depends on two things:

1. Your Y service: You satisfy the service requirement when you have completed 1,000 hours of service during each of any two 12-month periods, beginning with your date of hire or the anniversary of your date of hire (anniversary date). The two years do not have to be consecutive.

2. Your age: Once you have completed the service requirement, you are enrolled on the first day of the month following your anniversary date, provided you are 21 years of age. If your anniversary date falls on the first of the month, you are enrolled on your anniversary date.

Eligibility and Y Contributions

EQUIVALENCY RULEWhen a Y does not track hours worked, U.S. Department of Labor regulations determine hours of service. Under the service equiva-lency rules, an employee who has worked at least one hour for a Y will be credited with a specific number of hours based on the Y’s payroll cycle. For example, if your Y is on a weekly payroll cycle, you will be credited with 45 hours of service for every paycheck you receive.

WELCOME TO THE PLAN Shortly after you are enrolled in the Savings Plan or the Retirement Plan, you’ll receive a Welcome Kit containing valuable information. If you have any questions, you can call our Customer Service Department at 800-RET-YMCA.

When you become eligible, your Y will enroll you in the Retirement Plan. Upon enrollment, you are immediately vested, which means you can never lose the rights to the money in your accounts regard-less of whether or not you stay with the Y. Depending on the amount you have saved, different plan rules apply which will deter-mine whether you may receive an annuity when you retire, or take a distribution after you leave Y employment.

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Y RETIREES SAY…“Having a secure, financially ade-quate retirement is well worth sac-rificing current income for.”

“As a single mother at the time I started working at the Y, my direc-tor told me if I could only put $5 to $10 a month extra toward my retirement to do so. It was the best advice I have ever received.”

“Start your retirement planning the first day of being hired.”

TAX ISSUESContributions made to your YMCA Account, and the interest credited to that account, are not taxed until you take a withdrawal from your accounts or begin receiving an annuity.

The contributions you make to your Personal Account are after-tax, so only the interest credited to those contributions will be subject to tax.

PLAN CONTRIBUTIONSContributions to the Retirement Plan are based on your salary. Your Y chooses a total contribution rate of 12%, 11%, 10%, 9%, or 8%. Within that contribution rate, your Y also determines whether they will require you to save in the Retirement Plan.

YOUR ACCOUNTS IN THE RETIREMENT PLANYour own history with the Y will determine which types of accounts you have in the Retirement Plan. All current employees—and many past employees—will have a YMCA Account. This is the account that holds contributions made by your Y. If you work for a Y that requires you to also make contributions, those will be saved in a Personal Account.

HOW CONTRIBUTIONS WORKSuppose your Y has chosen a 12% contribu-tion rate and your paycheck is $2,500. If your Y makes the entire contribution, $300 will be sent to your YMCA Account after every payroll.

If your Y has chosen to pay 7% and requires you to pay 5%, your Y will send $175 to your YMCA Account and $125 will be deducted from your paycheck for your Personal Account.

Contribution Rate = 12% Your Paycheck = $2,500

WHEN YOUR Y PAYS ALL

WHEN YOU PAY SOME

YMCA Account Contribution $300 $175

Personal Account Contribution $0 $125

Total Contribution Each Payroll $300 $300

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Beneficiaries and BenefitsDESIGNATING BENEFICIARIESWhen you begin participating in the Retirement Plan or Savings Plan, you’ll receive a Welcome Kit. Inside you’ll find a Designation of Beneficiary form. It is important that you complete and mail the form to the Fund.

Your named beneficiary is the person, people, institution, or trust that will receive benefits from the Fund if you die before you retire.

You can name any individual or entity as benefi-ciary. If you are married and you name someone other than your spouse, your spouse must give notarized con-sent. If you name more than one beneficiary, you must also decide how benefits will be divided among them. While you cannot assign a specific dollar amount to go to any beneficiary, you may assign a spe-cific percentage for each one, or have them share equally.

LIFE CHANGESIf at any time there’s a change in your family, such as when you marry, have a child, or are widowed or divorced, you should review your beneficiary designation and make changes if necessary.

It is important to keep the Fund up-to-date on any beneficiary changes so your benefits are paid according to your wishes.

You can get the forms you need at www.yretirement.org, or by contacting the Fund’s Customer Service Department at 800-RET-YMCA, or [email protected].

DISABILITY RETIREMENTThe Fund offers retirement benefits if you become permanently and totally disabled. That means if you’re incapable of working for a living, and your condition isn’t expected to improve, you may be eligible to receive an annuity from the Fund.

To qualify for this benefit:

• You must have had contributions made to your YMCA Account every month for at least five years and be under age 60

• You must have become disabled while you were employed at a participating Y

• You must not have withdrawn your Personal Account since leaving a Y

• You must apply for disability benefits within six months after terminating your Y employment

• You must be approved for this benefit by the Fund’s disability claims administrator

MILITARY SERVICEIf you are called to active military duty for more than 30 days, the Heroes Earnings Assistance and Relief Tax (HEART) Act gives you special rights concerning survivor benefits, elective deferral distributions from the Savings Plan and differential wage payments. Please contact the Fund for more infor-mation.

CLAIMS PROCEDURESIf you believe you did not receive a benefit that you were entitled to, you or your beneficiary (or authorized representative) have the right to file a claim for ben-efits. The claim must be made in writing to the YMCA Retirement Fund’s Claims Review Panel, 140 Broadway, New York, NY 10005-1197. A copy of the complete claim review procedures can be found at www.yretirement.org.

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PRE-RETIREMENT DEATH BENEFITSIf you die while you are employed by a Y, the total benefit paid to your beneficiaries will be the greater of $10,000 or the sum of the amounts in your Personal and YMCA Accounts. Your beneficiaries will also be entitled to the amounts in your voluntary accounts. But if you’ve left the Y, the benefit paid to your beneficiaries will be the sum of your vested accounts.

Each of your beneficiaries may choose between a withdrawal or a single life annuity. However, if the balance due the beneficiary is $5,000 or less, he or she must take a withdrawal.

LEAVING THE YWhile some people spend their entire careers at the Y, others may leave before retirement age for a variety of reasons. If you leave, you’ll need to make some decisions about what to do with your savings.

If the total of your accounts in either the Retirement Plan or the Savings Plan is more than $5,000, you can leave your balances in that plan until you are ready to start receiving an annuity, which you can do as early as age 55.

Whether you withdraw your accounts or start an annuity with the money in either the Retirement Plan or Savings Plan, you can leave your money in the other plan to con-tinue to earn interest. You can make these decisions for each plan at different times.

While you can leave the money in your accounts until you are ready to start an annuity, you must begin receiving your ben-efits by April 1 of the year following the year you reach age 70½ or leave Y employment, whichever is later.

WITHDRAWALS & ROLLOVERSIf you decide to take a withdrawal, we encourage you to roll over your savings to another eligible employer plan that accepts rollovers or an IRA. By doing this, you will not pay taxes until you take a withdrawal from the new retirement account.

If you don’t roll over your savings to another eligible employer plan or IRA, it will be taxed as ordinary income in the year you withdraw it. The Fund is required to with-hold 20% for federal income taxes. Note that state tax laws may vary. If you are under 59½, an additional 10% penalty for early withdrawal may apply.

If the total of your accounts in either the Savings Plan or Retirement Plan is more than $5,000, and you are married, you will need to obtain notarized spousal consent. We will send you IRS Form 1099R to report the withdrawal.

RETIRE…REHIRE?Federal tax law generally prohibits a pre-arranged strategy to collect retirement benefits while still employed. It is also a violation of the Retirement Plan’s rules.

WITHDRAWAL RULESThere are some rules regarding withdrawals from your accounts. Once your Y has notified the Fund that you have left employment, you will receive a letter from the Fund outlining your options.

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Choosing an Annuity

SINGLE LIFE Provides monthly income as long as you live. ADVANTAGES CONDITIONS

MAXIMUM • Provides the greatest amount of monthly income

• Does not provide income for a survivor

• Does not guarantee recovery of your account balances

• Payments end at your death

PRINCIPAL GUARANTEE • Guarantees recovery of your account balances; any amount remaining at your death will be paid to your beneficiary(ies)

• Payments end at your death• Monthly payments smaller than

Maximum annuity

JOINT & SURVIVOR Provides monthly income as long as you or your survivor live. Your survivor may be entitled to 100%, 75% or 50% of your income depending on your annuity choice. ADVANTAGES CONDITIONS

JOINT & SURVIVOR • Provides guaranteed income for your survivor following your death

• Survivor cannot be changed once you have started receiving benefits

• Monthly payments to participant smaller than Single Life annuities

JOINT & SURVIVOR POP-UP • Provides guaranteed income for your survivor following your death

• If your survivor dies, your income will increase to the level of Maximum Single Life annuity income

• Provides slightly less income while you are both alive



SOCIAL SECURITY LEVELING Provides an increase to your annuity before age 62, based on your estimated age 62 benefit from Social Security and the number of months you will receive the additional benefit.

ADVANTAGES CONDITIONS

• You receive more income before age 62

• Can be combined with any annuity option

• Only for those retiring before age 62• Payments from the Fund will

decrease after age 62• To offset the decrease in your

annuity, you may need to start Social Security benefits at age 62

• Adjustments do not affect benefits to a survivor

• Requires a copy of your Social Security Statement

ANNUITY OPTIONSIf you are no longer working for a Y, and have more than $5,000 in a plan, you can start a lifetime annuity as early as age 55.

You can start an annuity with the mon-ies saved in either the Retirement Plan or Savings Plan, while leaving your money in the other plan to continue to earn interest. These decisions can be made for each plan at dif-ferent times.

This chart summarizes the key features of the available options. It is important to make a selection that best suits you, as after your annuity has started, the option you select cannot be changed or modified in any way.

When you decide to begin receiving your annuity, notify the Fund at least 60 days in advance so that we can send you forms to complete.

RETIRED DEATH BENEFITIn addition to your monthly annuity, the Fund provides a Retired Death Benefit. At the time you retire, you can use up to 90% of this benefit to increase your monthly annuity—the remaining amount will be paid to your beneficiary. You must make your decision about this option when you start an annuity, and once you have made an election, it cannot be changed. If you don’t choose this option, your beneficiary will receive 100% of the Retired Death Benefit at your death.

PAYMENTS TO BENEFICIARIESIf you die after you start an annuity, the Fund will pay your beneficiary:

• Any payments based on the annuity option you had selected, and

• Any amounts that you did not use from your Retired Death Benefit

If the remaining amount from the Retired Death Benefit paid to your beneficiary is more than $5,000, they will have a choice of a withdrawal or a Maximum Single Life annuity.

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SINGLE LIFE Provides monthly income as long as you live. ADVANTAGES CONDITIONS

MAXIMUM • Provides the greatest amount of monthly income

• Does not provide income for a survivor

• Does not guarantee recovery of your account balances

• Payments end at your death

PRINCIPAL GUARANTEE • Guarantees recovery of your account balances; any amount remaining at your death will be paid to your beneficiary(ies)

• Payments end at your death• Monthly payments smaller than

Maximum annuity

JOINT & SURVIVOR Provides monthly income as long as you or your survivor live. Your survivor may be entitled to 100%, 75% or 50% of your income depending on your annuity choice. ADVANTAGES CONDITIONS

JOINT & SURVIVOR • Provides guaranteed income for your survivor following your death



JOINT & SURVIVOR POP-UP • Provides guaranteed income for your survivor following your death

• If your survivor dies, your income will increase to the level of Maximum Single Life annuity income

• Provides slightly less income while you are both alive



SOCIAL SECURITY LEVELING Provides an increase to your annuity before age 62, based on your estimated age 62 benefit from Social Security and the number of months you will receive the additional benefit.

ADVANTAGES CONDITIONS

• You receive more income before age 62

• Can be combined with any annuity option

• Only for those retiring before age 62• Payments from the Fund will

decrease after age 62• To offset the decrease in your

annuity, you may need to start Social Security benefits at age 62

• Adjustments do not affect benefits to a survivor

• Requires a copy of your Social Security Statement

HOW AN ANNUITY IS CALCULATEDThe income that you receive as your annuity will be based on:

• Your account balances at retirement

• The interest rate that is used to convert your account balances

• The annuity option you select• Your age at retirement• The age of your survivor

(for Joint & Survivor Annuities only)

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Y M C A R E T I R E M E N T F U N DY M C A R E T I R E M E N T F U N D

WWW.YRETIREMENT.ORGOne of your sources for information about the YMCA Retirement Fund is our website at www.yretirement.org.

KEEPING TRACKLog on to the Fund’s website to keep track of your retirement accounts. Your account bal-ances are posted on the website so you can see how your accounts have grown.

PLANNING YOUR FUTUREOne of the ways to start planning for your retirement is to do some annuity estimates for yourself using the Fund’s online calcula-tors.

With the Annuity Estimate Calculator, you can enter different “what if” scenarios about your plan for retirement. The calcula-tor will then estimate your benefits under different annuity options.

Your Fund’s WebsiteThe Retirement Goal Calculator tells

you how much you need to be saving each month in order to have the income in retire-ment that you want.

GOT QUESTIONS?If you have questions about the Fund, start with the FAQs section of the website. The topics that are covered range from a descrip-tion of how the Fund works to specific details about how your account grows, how you can save additional money, and the basics about planning to retire from the Y.

YMCA Retirement Fund140 BroadwayNew York, NY 10005-1197

Hours: 8:45am–6:00pm Eastern TimeTelephone: 646-458-2400Toll-free: 800-RET-YMCA (800-738-9622)Fax: 646-458-2550

Email: [email protected]: www.yretirement.orgLive Chat: 8:45am–6:00pm Eastern TimeFaceBook: www.facebook.com/ymcarf

How to Contact the Fund

About UsThe YMCA Retirement Fund was incorporated in New York in 1921. As a 501(c)(3) not-for-profit corporation, the Fund is organized and operated for the purpose of providing retire-ment and other benefits for employees of participating Ys throughout the United States.

The Fund sponsors the Retirement Plan, which is a defined contribution, money purchase, church pension plan that elected into certain provisions of the Employee

Retirement Income Security Act of 1974, as amended (“ERISA”). The Fund also spon-sors the Tax-Deferred Savings Plan, which is a church retirement income account plan as defined in Section 403(b)(9) of the Internal Revenue Code.

SUMMARY PLAN DESCRIPTIONTo read more details about the plans of the YMCA Retirement Fund, go to the Summary Plan Description and Plan documents at www.yretirement.org.

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One of the primary benefits of working for

a Y is that you can build your savings with

the YMCA Retirement Fund. In the course of

your Y career, you might move from one Y to

another, but your savings will stay

at the YMCA Retirement Fund.

The YMCA Retirement Fund sponsors

two plans: the Retirement Plan and the

Savings Plan.

The Retirement Plan is a 401(a) defined

contribution account balance plan. This

means that benefits at retirement are deter-

mined by the amount in your account during

your working career, plus interest credited.

The Savings Plan is a 403(b) plan, which

offers you a way to save additional money

for your future, from your first day of

employment at a Y.

WHEN yOu START

As soon as you start working for a Y, you

can begin to save with a 403(b) Smart

Account. You can also roll over money

from eligible employer pension plans or

certain IRAs to a Rollover Account.


ELIGIBILITyTo be enrolled in the Retirement Plan, you

must have completed 1,000 hours of service

during each of any two 12-month periods,

beginning with your date of hire. The two

years do not have to be consecutive. You

must also be at least age 21.

ENROLLMENT AND

vESTINGWhen you meet the eligibility

requirements, your Y will enroll

you in the Retirement Plan. When you’re

enrolled, you are immediately vested.

cONTRIBuTIONS TO yOuR

RETIREMENT PLAN AccOuNTS

Contributions are based on your

compensation. Some Ys pay

the entire amount. Others require that

both you and your Y pay.

ADDITIONAL SAvINGS

You can add to your retirement nest egg by

saving with a 403(b) Smart Account. The

account is tax-deferred, so income taxes on

contributions and earnings are postponed

until you take a withdrawal or start your

annuity. You can start, stop, or change the

amount you want to save at any time.

You can also roll over money to a

Rollover Account if you haven’t already

done so.

HOW THE FuND INvESTS

The money saved in the plans is invested

in a variety of vehicles, including stocks

and bonds, to ensure future growth and to

assure retirement income to all participants

who retire from a Y. The Fund’s Board of

Trustees declares the interest rate that will

be credited to your accounts based on how

well the investments perform and other con-

siderations.

THE SOONER yOu START SAvING, THE MORE yOuR EARNINGS WILL GROW

important decisions about the annuity option

that’s best for you.Depending on the amount you have saved,

you can decide whether to withdraw your

savings or start an annuity from each plan,

and these decisions can be made for each

plan at different times.

AccOuNT GROWTH

Your savings grow based on the level of

contributions being made and interest

credited to your accounts. What’s more,

the earlier you begin to save with a 403(b)

Smart Account, the faster your savings will

grow.

AT RETIREMENTOnce you are no longer working for a Y,

you can start receiving an annuity from the

Retirement Plan and/or the Savings Plan

as early as age 55. An annuity pays you a

monthly income for life. You’ll need to make

• Eligibility

YOUR GUIDE TO THE YMCA RETIREMENT FUND


Visit the Fund’s website at: www.yretirement.orgYMCA Retirement Fund, 140 Broadway, New York, NY 10005

• Enrollment

• Annuities

• Contributions

• Other Benefits

September 2013

• How the Plans Work

A n E a s y - t o - U n d e r s t a n d I n t r o d u c t i o n t o t h e Retirement Plan and the Savings Plan