403(b) Universal Availability IRS Regulations IRS regulations require that all 403(b) plans offering salary deferral contribution elections meet a Universal Availability Rule, which is the blueprint to assure that all employees are notified of the opportunity to make elective deferrals. The regulations provide that any paid employee of a participating YMCA must be permitted to make elective deferrals to the 403(b) Savings Plan – including the right to designate some or all of those elective deferrals as contributions to the Roth Account – if any employee has the right to do so. (Note: Employers may not exclude collectively bargaining employees from a 403(b) plan.) In order to meet this requirement, employees must be given an effective opportunity to make or modify an election to participate. There are a number of methods, including the distribution of the 403(b) Savings Plan Enrollment Form, that meet this requirement. YMCAs should provide all employees with a notice about their ability to participate in the 403(b) Savings Plan upon their date of hire and should remind existing employees of this opportunity at least once a year. YMCAs should provide all employees with a notice about their ability to participate in the 403(b) Savings Plan upon their date of hire and should remind existing employees of this opportunity to participate and the ability to change their elective deferrals at least once a year. It should be noted that the Universal Availability Rule for the 403(b) Savings Plan applies immediately upon employment, regardless of age, hours of service, or level of compensation. Unlike the 401(a) Retirement Plan, the Savings Plan has no service requirement prior to enrollment. How The Regulations Apply to your y Once an employee is enrolled in the 401(a) Retirement Plan, the Fund sends the new Participant a Welcome Kit, which includes information about the opportunity to contribute to a 403(b) Savings Plan. The Fund also highlights the 403(b) Savings Plan in its disclosures to Participants, such as the Quarterly and Annual Benefit Statements, as well as the Annual Report. However, the Fund does not have a way to reach all of your Y’s employees directly if they are not already Participants in the Fund. As a result, your Y should promote the 403(b) Savings Plan to all employees upon their date of hire. The failure of any one Y to meet the Universal Availability Rule could cause the disqualification of our 403(b) Savings Plan, which could result in adverse tax consequences to employees and the imposition of penalties upon Ys. Resources to help your y These tools help Ys communicate the benefits of a 403(b) Savings Plan. The Fund can also work with your Y to tailor a communications message to your employees. 403(b) Savings Plan Enrollment Form To open or change contributions to the 403(b) Savings Plan Your YMCA Retirement Fund: One Fund, Two Plans An easy-to-understand introduction to the Retirement Plan and the Savings Plan Summary Plan Description Booklet A formal explanation of the Retirement Plan and the Savings Plan What your y should do Here are some of the steps your Y should take to comply with the Universal Availability Rule. You may develop other ideas customized to your Y. (See the sample wording that you can include in new hire packets, employee handbooks, personnel policy manuals, or other handouts to new employees). Employee manuals Make sure that your Employee Manual describes both the 401(a) Retirement Plan and the 403(b) Savings Plan, and that it clearly indicates that all employees may contribute to the 403(b) Savings Plan immediately upon hire, regardless of age or hours of service. New hire packets Provide information about the Savings Plan (and the Retirement Plan) to all newly hired employees in their new hire packets. Open enrollment promotion Target a time each year, such as open enrollment for health and welfare benefits programs, to encourage all employees to consider enrolling in the 403(b) Savings Plan, and remind those that do participate that they can change their level of contribution. Newsletters & benefit websites Describe the Fund’s Plans in employee newsletters and on your intranet benefit site, if you have one. Employee information sessions Conduct employee information sessions, and utilize the Fund’s promotional materials to promote the 403(b) Savings Plan. It will be important for you to keep records of the steps your Y has taken to meet the Universal Availability Rule. It will be important for you to keep records of the steps your Y has taken to meet the Universal Availability Rule. For helpful resources and language to share with your staff, download The Fund Communications Guide. Download it on YERDI in the Tools/Resources section. Coordination with multiple plans If your Y (or an entity that your Y is under common control with, such as a YWCA) sponsors a 403(b) arrangement in addition to the Savings Plan, there are specific rules and complex administrative responsibilities under the 403(b) regulations that your Y must follow. Please call the Fund’s Customer Service Department for further information.