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Leaving the Y
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Process to Terminate Employees

If an employee leaves your Y you must terminate them in YERDI by going to Modifications/Terminate located in the Non Financial section. Their termination date will be their last pay date.

For participants who receive pay beyond their last day of employment, contributions are required to be made on all final compensation except for severance that is paid after termination of employment.

Once terminated in YERDI, the employee will receive a letter from the Fund outlining their options. 

Rollovers and Distributions

If a participant is qualified to rollover their accounts to an eligible employer plan or IRA, they will not pay taxes until they take a withdrawal from the new retirement account.

If they don’t roll over the taxable portion of their withdrawal it will be taxed as ordinary income in the year they receive it. The Fund is required to withhold 20% towards the participant’s federal income taxes (state tax laws may vary). If the participant is under 59½, an additional 10% penalty for early withdrawal may apply.

For more information, please view our Withdrawals page.

Other Types of Leave

Family and Medical Leave- Employees who are entitled to these specific types of leave under the law have a right to re-employment on return. Your Y’s legal counsel can help you establish what benefits may also be required. Do not terminate their account in YERDI.

Military Leave- A participant called to qualified military service has the right to reemployment when they return to work for a Y. For employees returning from qualified military service who were not previously enrolled in the Fund, their months spent in military service count toward their eligibility for enrollment. 

For employees called to qualified military service who are enrolled in the Retirement and/or Savings Plan, you must terminate their account in YERDI with the reason 'Military'. Your Y must pay contributions for a military leave after the participant has returned: 

  • The contributions are based on the participant’s average gross compensation in the 12 months before the leave began.

  • If your Y has a YMCA/Employee Shared agreement, returning veterans are responsible for making their participant contributions. However, they have up to three times the length of their military service (to a maximum of five years) to make those contributions. Your Y must submit all of its contributions within one year after the participant’s contributions are made.

  • In a Fully Paid by Y agreement, your Y must make the participant’s contributions within 90 days of the participant’s return.

  • Any required contributions are credited to the participant’s year(s) of military service and not the year when the contributions were made. 

  • No interest is due for either the employee's or employer's USERRA-related contributions.