Understanding Eligibility, Enrollment & Vesting in the
401(a) Retirement Plan
Your Financial Future is Calling
The 401(a) Retirement Plan is an important part of your financial future. Below is a simple breakdown of how eligibility and vesting work, so you know exactly what to expect as you move through your Y career.
Two Eligibility and Vesting Paths
Depending on your YMCA’s participation in the 401(a) Retirement Plan, you may qualify for the Plan under either Two-Year Eligibility or One-Year Eligibility, and each path has a different vesting schedule. Most Ys follow the Two-Year Eligibility option, but if you’re unsure, check with your Y’s HR department.
Two-Year Eligibility, Two-Year Vesting (“2-2”)
- Age Requirement: You must be at least 21 years old.
- Service Requirement: You must complete 1,000 hours of service in each of two 12-month periods (they do not need to be consecutive) starting with your date of hire or anniversary of that date.
- Vesting: You are immediately vested in all contributions and interest credited to your YMCA Account upon enrollment.
One-Year Eligibility, Three-Year Vesting (“1-3”)
- Age Requirement: You must be at least 21 years old.
- Service Requirement: You must complete 1,000 hours of service in a single 12-month period starting with your date of hire or anniversary of that date.
- Vesting: You become vested in YMCA Account contributions and interest after 36 months of employment at a participating YMCA.
Note: Any contributions you make to your Personal Account, along with the interest earned in that account, are immediately vested, regardless of your length of employment.
For more details, please read the enrollment and eligibility PDF.
What is vesting?
Great question! Vesting refers to the point at which you “own” the savings in your Plan account. With the Y Retirement benefit, you vest in your savings after you’ve worked at the Y continuously for a certain amount of time. If you stop working for the Y before your savings vest, you risk losing that balance if you do not return to employment with a participating Y within a specific timeframe.
3 Things to Keep in Mind
Hours of Service
You receive service credit for hours you work and are paid for by the YMCA. This may even include hours during a period that you are paid directly or indirectly by the Y but do not work (e.g. vacation, holidays, sick time, jury duty, paid leave of absence, etc.)
Part-Time Employment Hours Count!
Part-time employees can meet eligibility requirements. You do not have to be a full-time employee to qualify for the 401(a) Retirement Plan.
Stay Enrolled While Working!
You remain a participant in the 401(a) Retirement Plan during your continuing employment with a participating Y, even if your hours drop below 1,000 in later years.
Waiving Participation in the 401(a) Retirement Plan
Participation is mandatory for most Y employees unless you meet all the following criteria:
- You work for a Y that requires you to contribute to the Plan, and
- You’re being hired for the first time by a participating Y, and
- You are age 60 or older when you begin that work
If you meet all the above, then reach out to your Y’s HR department and complete the Waiver of Participation process before you become eligible to participate in the 401(a) Retirement Plan. You will not be able to waive participation once you become eligible to participate.