YOUR GUIDE TO SAVING AND RETIREMENT TERMINOLOGY A B C D E F G H I J K L M N O P Q R S T U V W XYZ# A Actuarial Deficit A condition that exists when the market value of the Fund’s investments is less than its liabilities. Actuarial Equivalent A benefit of equal value when computed upon the basis of the mortality tables and interest rates adopted by the Board from time to time. Actuarial Surplus A condition that exists when the market value of the Fund’s investments is greater than its liabilities. Actuary A person who computes premium rates, dividends and risks according to probabilities based on statistical records. Additional YMCA Account Additional contributions to the Retirement Plan, paid by the Y, for payroll dates prior to July 1, 2009, as determined by that Y’s participation agreement. These amounts are fully vested. Adjustment for Overpayment An adjustment made by your Y to reduce or reverse the retirement contribution for one or more pay periods. This usually occurs when a Y mistakenly reports too high of a compensation for a particular pay period, and needs to correct the corresponding contribution. Adjustment A special transaction or correction made to your account. Several of these may be grouped together for summary purposes. Please contact the Fund if you require more details. After-Tax Account Voluntary contributions made on an after-tax basis to the Retirement Plan prior to January 1, 2011, plus the interest credited. Alternative Assets Investments in private securities, venture capital, real estate and other non-traditional issues. These are higher risk securities that usually reward investors over the very long term. Anniversary Date The calendar date one year after the date of hire, and each year after that. Example: Mark was hired on March 1, 2013. His Anniversary Date is March 1. Anniversary Year 12 months of employment after the hire date. Example: Mark was hired on March 1, 2013. His Anniversary Year ran from March 1, 2013 until February 28, 2014. Annuity Interest Rate The interest factor used to calculate a life annuity at the time of retirement. Retirement annuities are calculated based on a person’s account balance(s), age (and the age of the survivor for the joint & survivor annuities), the annuity option selected, and this annuity interest rate. Annuity Retirement income that is paid on a regular schedule during a participant’s lifetime (see Single Life Annuity) or during a participant’s lifetime and his or her survivor’s lifetime after the participant’s death (see Joint & Survivor Annuity). Asset Class A type of investment, such as stocks, bonds, or real estate. Asset Diversification The investment management strategy of choosing various asset classes—such as large cap domestic stocks, small cap domestic stocks, international stocks, US bonds and private equities—to achieve the best risk-return mix. Assets The market value of an investment portfolio. B Back Payment/Adjustment for Underpayment A contribution to your account(s) back dated to an earlier pay date, or an adjustment made by your Y to increase a prior contribution. This usually occurs when a Y misses making a contribution due your account(s), or mistakenly reports too low of a compensation for a particular pay period. The adjustment corrects the payment that was initially missed or understated. Benchmark A broad-based indicator of how similar investments are performing. The success of an investment is measured against a benchmark. Beneficiary The person, organization, trust or estate designated by the participant as the recipient of benefits after death. C Compensation The amount of a participant’s wages while employed at a Y that is subject to federal income tax withholding or wage reporting (on IRS Form W-2). Compensation also includes pre-tax salary reduction amounts contributed by the Y to certain benefit plans on behalf of the employee. Contribution A payment made to one or more of your accounts for a particular pay date. A contribution to the Personal Account would be a percentage of your gross pay that you are required to make, on an after-tax basis, to the Retirement Plan. A contribution to the YMCA Account would be a percentage of your gross pay that your employer makes on your behalf to the Retirement Plan. Whether you are required to make a Personal Account contribution, and the percentages contributed to the Personal Account and YMCA Account, are all determined by your Y’s agreement with the Fund. A contribution to the 403(b) Smart Account would be the amount you have elected to pay voluntarily, on a pre-tax basis, from each paycheck. You may change this percentage or dollar amount at any time by completing a new 403(b) Smart Account form. Corporate Bonds Lending to a private corporation. Bonds are issued at a particular interest rate and include a specific maturity date at which time the principal will be repaid. Current Loan Your current loan includes any remaining outstanding principal on your loan. It may also include interest on payments that are due, but not yet paid. Current Month’s Interest To Date Daily interest accrued so far for the current month. For example, if you checked your account balances on January 15th, the “current month’s interest to date” would include interest for January 1st-January 15th. D Defaulted Loan Amount An unpaid loan amount plus the accrued interest. Distribution Money withdrawn by a terminated participant from any of their accounts, or sent to them as a result of a plan or IRS rule. E Early Withdrawal Tax A 10% federal excise tax that applies to Plan participants who are under the age of 59½ and take a withdrawal from available accounts. Eligibility The requirements of the Retirement Plan that an employee must meet in order to participate. Employer Accounts Accounts where the money is contributed by the Y: YMCA Account, YMCA Account (Legacy), Additional YMCA Account and the Extra Additional YMCA Account. Enrollment Date The first of the month following the Anniversary Date after an employee meets the Retirement Plan’s eligibility requirements. If the Anniversary Date is the first of the month, then the Enrollment Date and Anniversary Date are the same. Equivalency Rule U.S. Department of Labor regulations for determining hours of service where a Y does not track hours worked. The method to be used is based on your Y’s payroll frequency. Refer to Section 2.2(b)(iii) of the Retirement Plan Document for details. ERISA The Employee Retirement Income Security Act of 1974, as amended. A federal law that protects the rights of participants and beneficiaries of pension plans and imposes fiduciary standards and duties on those who sponsor or administer such plans. Extra Additional YMCA Account A one-time special benefit contribution paid by the Retirement Fund on July 1, 1989 to participants with five years or more of service. These amounts are fully vested. Although they earn interest, no contributions can be made. F Fiduciary A person or organization responsible for taking care of someone else’s plan money, or responsible for plan administration per ERISA. Forfeitures All contributions and interest in a YMCA Account or in a YMCA Account (Legacy) that a non-vested participant loses if they leave and do not return to active Y service within six years. The forfeited contributions are applied to their Y as credit, which the Y then uses to reduce its future Y contributions. Funded Date For a contribution, the funded date is the date that the money is received from your Y. The funded date for other types of transaction varies, but it is normally the date on which the transaction is complete (for example, the date on which a withdrawal or loan check is issued). Funds Used for Annuity An amount you elected to use to start your annuity (monthly payment). Since this amount has been converted to a monthly annuity, it no longer gains interest. G H Hardship Withdrawal A withdrawal taken from the 403(b) Smart Account while you are under age 59 ½ and still employed by a Y, for one of the hardship reasons allowed under federal law. Hours of Service Generally each hour for which an employee is paid or entitled to payment from the Y for the performance of their duties. I Index Fund A mutual fund that invests only in one of the several dozen funds used as standards of the industry, e.g. the Dow Jones Industrials or the Standard and Poors 500, and tries to mirror the performance of that fund. Interest Credits The amount of earnings paid by the Fund on all account balances and credited daily. The interest credit is set by the Board, in its sole discretion. International Stocks Stock in corporations with operations primarily outside the U.S. J Joint & Survivor Annuity An annuity that will continue paying a percentage of the retiree’s annuity to a survivor after the retiree’s death. The percentage is based on the retiree’s chosen annuity option. K L Large Cap Stocks Stock of corporations with large capitalization. Large cap stocks typically have outstanding market value of $5 billion or more. Leased Employee An employee who performs services for a Y under a contract between a leasing organization and the Y. Liabilities The present value of future benefit distributions as determined by the actuary. Liquid Securities Stocks, bonds and short-term instruments that can easily be converted to cash. Loan Amount Amount that a participant may borrow from their 403(b) Smart Account and/or Rollover Account in the Savings Plan. Loan Balance An unpaid loan balance plus the accrued interest. Loan Payment(s) Loan payments are normally made through payroll deduction and submitted to the Fund by your employer. In cases where your paycheck is insufficient to cover a loan payment, or you wish to pay off your learn early in full, a loan payment may be made by check directly to the Fund. All loan payments are deducted from your pay on an after-tax basis and will increase your balance in the account(s) from which you borrowed, the 403(b) Smart Account and/or Rollover Account, and will decrease your loan balance. Loan Loans are available from the Savings Plan if you are actively employed at a Y and have at least $2,000 in the Savings Plan. Only one loan from the Plan is available at a time. A prior loan, either current or defaulted, must be paid in full before you can take a new one. Local Plan Administrator An employee of a local Y who is responsible for processing Retirement Plan enrollment for eligible employees, and contributions for the local staff. M Maximum Annuity Option An annuity option that provides a monthly annuity for life. Upon death, there is no benefit from the participant’s account balances to be paid to a survivor or beneficiary. Monthly Interest Interest credited to your account(s) according to the current rate, based on your closing balance at month end. Allow a few days into the following month to see your interest credit for the prior month. N Net of Fees Investment results minus the cost of investing. O P Participant Accounts Accounts where money is contributed by the participant: Personal Account, 403(b) Smart Account, and Rollover Account. Participant An employee of a Y who has met the eligibility requirements and has been enrolled in the Retirement Plan. Personal Account Contributions to the Retirement Plan, paid by the participant (as determined by the individual’s Y’s participation agreement with the YMCA Retirement Fund), plus the interest credited. This Personal Account includes any contributions to the Retirement Plan paid by the Y on behalf of the participant for payroll dates prior to July 1, 2009. Plan Year The 12 consecutive-month period on which Retirement Plan and Savings Plan records are kept. The Plan Year begins on July 1 and ends on the following June 30. Portfolio Total combined investment owned by an individual or organization. Pre-Eligible Employee An employee of a Y who is not yet eligible to participate in the Retirement Plan. Preferred Stocks Class of capital stock that pays dividends at a specified rate and has preference over common stock in the distribution of dividends and the liquidation of assets. Pre-Retirement Death Benefits A benefit paid to the beneficiary when a participant dies before starting their annuity. If the participant dies while employed by a participating Y, the benefit will be the greater of $10,000 or the sum of the Personal Account (paid by either the participant or the Y), the YMCA Account, and YMCA Account (Legacy). If the participant was not employed by a participating Y at the time of death, the benefit paid will be the sum of their vested accounts. Regardless of the participant’s employment status, a beneficiary is also entitled to any monies in the participant’s voluntary and additional accounts. Principal Guarantee Annuity Option An annuity option that provides you with a monthly annuity for your lifetime. If you die prior to having received the amount of your total balances at the time you retired, your beneficiary will receive the remaining amount. Q QDRO Payment An amount granted to you as the Alternate Payee of a QDRO (Qualified Domestic Relations Order). QDRO Withdrawal An amount withdrawn from your account(s) and granted to your former spouse or other individual, as mandated by a QDRO (Qualified Domestic Relations Order). Qualified Domestic Relations Order (QDRO) A court order relating to divorce that meets certain legal requirements. It is approved by the plan administrator and requires a portion of a participant’s benefit to be set aside for an alternate payee. An alternate payee may be a child, former spouse, or other dependent of a participant. R Required Reserves Assets needed now that equal the present value of future benefit distributions as determined by the actuary. Resolution to Participate The legal document that defines the terms and conditions of a Y’s participation in the Retirement Plan and the Savings Plan. Retired Death Benefit An amount that is set aside at the time you annuitize your account(s) in the Retirement Plan for use as a death benefit. The amount of the Retired Death Benefit is equal to your first year’s maximum annuity and is based solely on contributions to your Personal Account, YMCA Account and YMCA Account (Legacy). Retirement Age The age at which a participant chooses to begin receiving their annuity. The earliest retirement age is 55. Retirement Date The first day of the month when a participant chooses to begin their annuity. The retirement date must be after they sever Y employment. Example: John is age 62 and his last working day at the YMCA is October 11, 2014. He may choose a Retirement Date anytime on or after November 1, 2014. Retirement Plan A defined contribution, money purchase, church pension plan sponsored by the YMCA Retirement Fund. Retroactive Interest An interest credit to your account(s) backdated to an earlier date. This normally occurs when your Y corrects the amount of a prior contribution, or sends a contribution that was previously missed. The back interest owed to you is also paid, as retroactive interest. Rollover Account Retirement savings transferred to the Savings Plan from an eligible employer plan under IRS Code Section 401(a), 401(k), 403(a), 457(b), a tax-sheltered annuity under IRS Code Section 403(b) or a Traditional IRA, or tax-deferred money from a SEP IRA or a SIMPLE IRA plan (that has been established for at least two years). Prior to March 2003, rolled over amounts were deposited in the Retirement Plan. Rollover An amount you elected to roll over from another qualified plan or an IRA. S Savings Plan The Tax-Deferred Savings Plan, a 403(b) plan sponsored by the YMCA Retirement Fund, which offers all Y employees a way to save additional money. Single Life Annuity An annuity payable for the Participant’s lifetime only, with no survivor benefit. Small Cap Stocks Stock of corporations with small capitalization, usually with an outstanding market value between $200 million and $2 billion. Special Dividends Amounts paid in addition to a retiree’s regular monthly annuity payments if and when voted by the Board of Trustees. Stop Work Month The month in which you plan to stop working for the Y. This month cannot be later than the month prior to your planned retirement date. T Target Portfolio Policy The target distribution of investments set by an investment committee. Transaction Date For a contribution, the transaction date is the corresponding pay date, that is, the paycheck to which the contribution applies. The transaction date for other types of transactions varies, but it is the date for which the transaction truly applies, as opposed to the date it is paid or reported. Transition Period A period of up to six years during which a terminated participant may return to Y employment and resume participation immediately. U Unearned Interest Paid by Employer Interest paid to your account(s) by your employer. Interest is normally credited by the Fund, but may become the responsibility of your employer if they pay one or more of your contributions late. For example: Your Y does not pay your retirement contribution for a January pay date until March. Since the contribution was not in your account by the end of February to be credited normal interest, this February interest now becomes the responsibility of your employer, and must be paid by them. v Vesting A participant’s right to ownership of amounts in their accounts. Voided Withdrawal A withdrawal from your account that has been reversed, and the resulting check voided. Contact Customer Service if you need more information. Voluntary Account A 403(b) Smart Account, Rollover Account, or any After-Tax Account. W Withdrawal A distribution or rollover you elected to take from your account(s). The withdrawal may also have been required if your balance in one of the Plan(s) was $5,000 or below. X Y YERDI The YMCA Electronic Retirement Data Interchange is the web-based application that enables Ys to enter and maintain compensation and contribution data pertaining to their employees’ participation, and to transfer that information electronically to the YMCA Retirement Fund. YMCA Account (Legacy) Contributions to the Retirement Plan, paid by the Y, for payroll dates prior to July 1, 2009, determined by the individual Y’s participation agreement with the YMCA Retirement Fund, plus the interest credited. YMCA Account Contributions to the Retirement Plan, paid by the Y, for payroll dates on or after July 1, 2009, determined by the individual Y’s participation agreement with the YMCA Retirement Fund, plus the interest credited. Z # 403(b) Smart Account Voluntary contributions made pre-tax by the employee through payroll deduction to the Tax-Deferred Savings Plan, plus interest credits. Taxes on the principal and earnings are deferred until distributions are received.