News & Seminars

Announcing the Interest Credit for July to December 2019

At the May 16, 2019 meeting of the YMCA Retirement Fund’s Board of Trustees, the Board approved Management’s recommendation of 3% annualized compound interest credits to participants for the six-month period of July 1 to December 31, 2019.

The interest credit decision reflects the Board’s concerns regarding the volatility of the investment market and the Fund’s funding level. The funding level is the ratio of the Fund’s assets to liabilities. In the current investment climate, it is challenging to earn returns at the same rate at which our liabilities grow in the short run because we balance risk and return and are long-term investors.

As of March 31, 2019, the Fund was 93% funded. This funding level is not detrimental to the Fund’s operations, but it is important to achieve 100% funding for the long-term strength of the Fund. The Fund assumes 3% interest credits in the valuation of our liabilities, and granting higher than 3% interest would accelerate the growth of our liabilities, which is not advisable at this time.

Our top priority is to safeguard our participants’ retirement savings by ensuring the sustainability of the Fund’s Plans. We are confident that our long-term investment strategy will provide our participants with safety, security, and protected lifetime income upon retirement.

The interest credit decision for the period of January 1 to June 30, 2020 will be made at the November 21, 2019 meeting of the Fund’s Board of Trustees.