There are two key decisions that a Y Board makes in approving the terms of participation in the YMCA Retirement Fund:
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How much will the contribution rate be? — 12%, 11%, 10%, 9%, or 8%
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Will the Y require the participant to contribute a portion of that amount?
Your Y selects one combination from the options outlined below:
| Y | Empl | Y | Empl | | Y | Empl | | Y | Empl | | Y | Empl |
| 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% | | | | | | | | | | | |
TEMPORARY SPECIAL CONTRIBUTION RATE (COVID-19)
In response to COVID-19 and the significant financial impact this pandemic is having on YMCAs, the Fund is now offering YMCAs the option to drop their resolution rate to 1% through September 30, 2020.
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
If a Y is lowering its contribution rate, it must notify its participants in writing at least forty-five (45) days in advance of this change if they have 100 or more active participants or fifteen (15) days in advance of the effective date if the YMCA has less than 100 active participants in the Retirement Plan. Notice must still be provided via first class mail or hand delivery. The same 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.
Contact the Fund's customer service department for sample notification letters. The Y is required to forward a copy of the notice to the Fund.
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. They may be restricted to withdraw their Personal Accounts or YMCA Accounts based on plan rules and termination from Y employment. If their Y decides to discontinue participation, the Fund will send participants a letter outlining their options.