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Your Compliance Responsibilities

The following will serve as a guide for the primary responsibilities of a YMCA under the Plans of the YMCA Retirement Fund.

YERDI Eligibility Tracking 
Timely Enrollment—First Day of the Month Following:
  • Age 21

  • Completed 1,000 hours of service during

  • Two 12 month periods beginning on the date of hire (need not be consecutive)

Failure to Comply: The YMCA must make 100% restorative contributions for all affected employees for all Plan years, plus accrued interest. 

Timely Contributions
  • Participant contributions to the Retirement Plan as of the earliest date on which the funds can be segregated—no later than the 15th business day following the month when payable

  • Employer contributions to the Retirement Plan no later than the 15th business day following the month to which they relate

  • Participant contributions to the Savings Plan no later than the 15th business day following the month when payable

Failure to Comply: The YMCA must pay a 15% (or additional 100% if not timely corrected) excise tax on late participant contributions. The YMCA must pay a 10% (or additional 100% if not timely corrected) excise tax on late employer contributions.

Universal Availability of the Savings Plan
  • Notify new employees of the opportunity to participate in the Savings Plan

  • Annually notify existing employees of the opportunity to participate in the Savings Plan

Failure to Comply: Disqualify the advantageous tax deferral for plan participants in the savings plan. The YMCA must pay (i) up to 50% of employees’elective deferral if it fails to implement employees’instructions or (ii) 50% of the average contributions if it fails to offer the savings plan.

Overall Primary Risk

In addition to the specific penalties applicable to a delinquent YMCA identified above under “Failure to Comply”, noncompliance with these obligations by a single YMCA could constitute a breach of fiduciary duty under ERISA. Such a breach could result in the retirement plan losing its favorable tax status for all YMCAs participating in the Plans; and/or the suspension or termination of the delinquent YMCA from participating in the YMCA Retirement Fund.