Your Y’s Agreement With The Fund

There are two key decisions that a Y Board makes in approving the terms of participation in the YMCA Retirement Fund:

  1. The total percentage of the contribution: 12%, 11%, 10%, 9%, or 8%
  2. If the Y requires the participant to contribute a portion of that amount

Your Y selects one combination from the options outlined below:

12% 11% 10% 9% 8%
Y You Y You Y You Y You Y You
12% 0% 11% 0% 10% 0% 9% 0% 8% 0%
11% 1% 10% 1% 9% 1% 8% 1% 7% 1%
10% 2% 9% 2% 8% 2% 7% 2% 6% 2%
9% 3% 8% 3% 7% 3% 6% 3% 5% 3%
8% 4% 7% 4%  6% 4%
7% 5%

In response to COVID-19 and the significant financial impact this pandemic is having on YMCAs, the Fund will be offering the following options in 2021:

– 4% and 6% contribution rates, fully paid by the YMCA, through December 31, 2021 (these rates are available starting with wages earned as of 12/1/2020).

– 1% option through June 30, 2021; the 1% contribution rate option will automatically increase to a rate selected by the Y at a minimum of 4% starting on July 1, 2021 and will remain in effect through December 31, 2021.

In the past year, several YMCAs who temporarily lowered their contribution rates to the 401(a) Retirement Plan have requested the opportunity to compensate eligible employees when their Y’s current financial position has improved.

Any YMCA can always adopt a contribution rate between 8% and 12%. Beyond this, a Y can choose a contribution rate of 18%, fully paid, for as many payrolls as they wish. If you would like to submit an inquiry about making a change to your Y’s contribution rate, please email

When The Employee Pays A Portion

When a Y requires participants to contribute, it is based on a percentage of their compensation. Contributions are made via regular payroll deduction on an after-tax basis.

Employee’s Contribution 5% of $1,000 $50
Y’s Contribution 7% of $1,000 $70
Total Contribution 12% of $1,000 $120
When A Y Pays All

Based on the above example, the Y would pay the total 12% or $120 on behalf of the employee.

Changing the Contribution rate

A Y can change its contributions only once each plan year (July 1 through June 30) unless the Y is electing to increase its contribution rate. The Resolution to Amend Participation form needs to be completed and sent to the Retirement Fund at least sixty (60) days in advance of the effective date of the change. Our customer service team can provide a copy of the form.

If a Y is lowering its contribution rate, it must notify its employees in writing at least 45 days in advance by first class mail or hand delivery. The same 45-day notification is required if the Y wishes to make any change that would result in employees either starting or increasing the amount being withheld from their compensation. The Y is required to forward a copy of the notice to the Fund. Please contact our customer service team for sample notification letters.

Discontinuing Participation in the Fund

If a Y stops participating, its employees can no longer make retirement contributions to the Fund. Participating employees can withdraw their voluntary accounts, but they cannot withdraw their Personal Accounts or YMCA Accounts unless they terminate Y employment. If their Y decides to discontinue participation, the Fund will send participants a letter outlining their options.