A 100+ Year
Commitment Continues

When you’re ready to begin receiving monthly income, request an annuity packet from Y Retirement—which includes your estimates and application. You can request it 30 to 180 days before the date you want your payments to begin.

Lifetime income is our commitment to provide you with monthly payments for the rest of your life. It is also known as an annuity. Just like your savings were protected from investment risk while you were working, your annuity payments will be shielded from market volatility—we’ve never missed making an annuity payment, even when times were tough. This type of benefit is rare in today’s environment.

When can Lifetime Income payments begin?

You can start receiving lifetime income if you are at least age 55, and no longer working for the Y. You can annuitize the 401(a) Retirement Plan or the 403(b) Savings Plan (or both!) as long as the Plan you’re converting has a balance of at least $5,000. You can also leave one Plan with Y Retirement to continue earning interest while taking monthly payments from the other and then begin an annuity from the second Plan later. 

How is Lifetime Income calculated?

Your personalized lifetime income is based on several factors.

In addition to the amount you’re converting, the vesting status of your accounts in the 401(a) Retirement Plan also matters. Only vested balances of $5,000 or more in the 401(a) Retirement Plan can be converted into lifetime income. If you have unvested accounts in the Plan, you cannot convert any of your savings in your 401(a) Retirement Plan until it is all vested. Read more about what happens to unvested accounts when you leave the Y here. In the 403(b) Savings Plan, your Roth Account, Rollover Account, and/or Roth Rollover Account may need to remain with Y Retirement for a longer period to be eligible to be converted into lifetime income.

The interest rate used to convert your balance to an annuity—this is known as an Annuity Conversion Rate (ACR) and it’s completely separate from the Interest Credit Rate your balances receive while you’re saving and working. Log in to your online account here to read more about ACRs. 

3. Your Age

You can start receiving your payments as early as age 55. We use life expectancy tables to determine how your age factors into your payment. We do the same for your Survivor’s age if you choose a Joint & Survivor option, too. Because of our commitment to payments for life, we will keep paying you even if you (or your Survivor) outlive our projections!

Another major factor that determines your lifetime income payment is the annuity option you select. There are two main annuity options, and there are different choices to make within each. Once you select an annuity option, your choice is final and cannot be changed. Read below to learn more.

Single Life Options

Pays monthly income for as long as you live, and monthly payments stop at your death.

Maximum (M)

• Advantage: Highest possible monthly income
• Consider: No benefit to any survivor or beneficiary; no guarantee your full account balance will be paid out

Principal Guarantee (C)

• Advantage: Guarantees your total account balance is fully paid out (to you or your beneficiary)
• Consider: Monthly payments are smaller than the Maximum option; you can change your beneficiary while receiving monthly income

Joint & Survivor Options

• Pays monthly income for as long as you—or your designated survivor—live.
• Survivor benefit options: 100% (J1, J1P), 75% (J7, J7P), or 50% (J5, J5P) of your annuity.

Standard Joint & Survivor (J1, J7, J5)

• Advantage: Guaranteed lifetime income for you or your survivor—whoever lives longer
• Consider: Survivor can’t be changed after payments start even if they pass away before you; payments are smaller than Single Life options

“Pop Up” Joint & Survivor (J1P, J7P, J5P)

• Advantage: Same survivor protection, plus if your survivor passes away first, your income increases to the Maximum Single Life amount
• Consider: Lower payments for you while you are both living; survivor cannot be changed

Social Security Leveling

For those retiring before age 62, this option temporarily increases your lifetime income payments before age 62, then reduces payments when you reach 62—when you may begin Social Security. This option can be combined with any annuity type. 

Retired Death Benefit

If you were enrolled in the Retirement Plan before January 1, 2019, a Retired Death Benefit is established when you begin your annuity. It equals your first year’s maximum annuity and is based on your contributions and certain YMCA contributions to the 401(a) Retirement Plan.

• You can choose your beneficiary and change them anytime.
• If you were age 55 or older on January 1, 2019, you may use up to 90% of this benefit to increase your own monthly payments.