Collecting An Annuity While Working for the Y 

While most individuals who receive annuity benefits from the YMCA Retirement Fund have retired from the Y, some retirees may decide to seek part-time employment opportunities with a Y while receiving retirement benefits. As noted in the following examples, this post-retirement employment with a Y is allowed as long as the participant and the Y have not engaged in a pre-arranged strategy to collect retirement benefits from the Fund while still employed by the Y:

  • Jerry retired as a Branch Executive Director and began collecting his retirement benefit. Negotiations with his replacement fell through and the CEO asked him to return as the Branch Executive in an interim capacity while a new search is undertaken. This is permitted since there was no pre-arranged strategy to collect retirement benefits from the Fund while working for the Y.
  • Mary retired as Head of the Aquatics Department and began collecting her retirement benefit. After she retired, she wanted to stay engaged with her community and remain physically active, so she accepted a part-time lifeguard job at her Y. This is permitted since there was no pre-arranged strategy to collect retirement benefits from the Fund while working for the Y.

Same example as above except Mary was told by the Y prior to her retirement, “yes, cash your first annuity check in January and we will put you on the schedule as a part-time lifeguard for February.” This is not permitted since there was a pre-arranged strategy to collect retirement benefits from the Fund while working for the Y.

  • Because Brad needed money to pay his bills, he arranged with his Y supervisor that he would retire from the Y, begin collecting his retirement benefits, then be rehired to his existing job. This is not permitted since there was a pre-arranged strategy to collect retirement benefits from the Fund while working for the Y.
  • Lucy was set to retire as the CEO, but the Board had not found her replacement and asked her to stay on for three extra months while they extended their search. She agreed, with the understanding that she would retire, start receiving her annuity, and then return to work as a salaried employee. This is not permitted since there was a pre-arranged strategy to collect retirement benefits from Y Retirement while working for the Y.

It is a violation of the Fund’s Retirement Plan and Federal tax law to engage in a pre-arranged strategy to collect retirement benefits from the Fund while working for the Y. The above examples are intended to provide you with guidance and do not constitute tax or legal advice.