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