What You Need To Know About The Retirement Plan The Retirement Plan is a 401(a) defined contribution account balance plan. This means that your benefits are defined by the amount contributed to your accounts during your Y career, plus the interest credited to these accounts. On this page, you will learn about your eligibility to participate in the Retirement Plan and how contributions to the Plan work. You can also read our Summary Plan Description Booklet for more information. Eligibility Before you can be enrolled in the Retirement Plan, you must meet certain age and service requirements. Your eligibility in the Retirement Plan depends on: Y service: You must complete 1,000 hours of service during each of any two 12-month periods, beginning with your date of hire or anniversary date. The two years do not have to be consecutive. Age: Once you have completed the service requirement, you are enrolled on the first day of the month following your anniversary date, provided you are 21 years of age. If your anniversary date falls on the first of the month, you are enrolled on your anniversary date. Vesting Once you have met the eligibility requirements, your Y will enroll you in the Retirement Plan. Upon enrollment, you are immediately vested. For more information on Enrollment and Eligibility, click here. Plan Contributions Contributions to the Plan are based on your salary. Your Y chooses a total contribution rate of 12%, 11%, 10%, 9%, or 8%. Within that contribution rate, your Y also determines whether they will require you to save in the Plan. How Contributions Work Suppose your Y has chosen a 12% contribution rate and your paycheck is $2,500. If your Y makes the entire contribution, $300 will be sent to your YMCA Account after every payroll. If your Y has chosen to pay 7% and requires you to pay 5%, your Y will send $175 to your YMCA Account and $125 will be deducted from your paycheck for your Personal Account. Contribution Rate = 12% Your Paycheck = $2,500 When Your Y Pays All When You Pay Some YMCA Account Contribution $300 $175 Personal Account Contribution $0 $125 Total Contribution Each Payroll $300 $300 Taxes Contributions made to your YMCA Account, and the interest credited to that account, are not taxed until you make a withdrawal from your accounts. If your Y requires you to make contributions to your Personal Account, your contributions have already been taxed. Because your contributions are after-tax, only the interest credited to those contributions is taxed when you make a withdrawal.