What is
Universal Availability?
Under the Universal Availability Rule, all paid Y employees (regardless of age, hours of service, or level of compensation) must be given the opportunity to participate in the 403(b) Savings Plan. When a YMCA offers the option for one employee to contribute compensation to the 403(b) Savings Plan, it must offer that same option to all employees. It’s designed to ensure fairness and equal access to retirement savings opportunities.
How does the Universal Availability Rule apply to your Y?
Each paid employee may elect at any time during the year to contribute future compensation to the 403(b) Savings Plan—to the Tax-Deferred Account and/or the Roth Account—change future contributions, or stop future contributions, by completing and submitting the 403(b) Savings Plan Enrollment Form to your Y.
Ys should give every paid employee a notice about their eligibility to immediately participate in the 403(b) Savings Plan when the employee begins employment. Remember: Every paid employee is eligible—even part-time and union employees.
At least once per year, remind existing employees of this opportunity to participate and their opportunity to change or stop future contributions at any time.
What are the Universal Availability Rule risks?
The failure of any one Y to meet the Universal Availability Rule could cause the disqualification of Y Retirement’s 403(b) Savings Plan, adverse tax consequences to employees, and penalties for Ys.
We do not have a way to reach all your Y’s employees directly if they are not already enrolled in Y Retirement. As a result, your Y must promote the 403(b) Savings Plan to all employees upon their employment, with annual reminders.
Resources to Help Your Y
403(b) Savings Plan Enrollment Form
Download this form for employees to start, stop, or change their elections at any time.
One Fund, Two Plans
An easy-to-understand introduction to the Y Retirement benefit
Summary Plan Description Booklet
An overview of the rules and requirements of the 401(a) Retirement Plan and the 403(b) Savings Plan
What Your Y Should Do to Meet Universal Availability Compliance
Here are several steps your Y can take to help ensure compliance with the Universal Availability Rule. You’re also welcome to tailor these ideas to best fit your Y’s unique needs.
(Pro Tip: For helpful resources and language to share with your staff, download The Y Retirement Communications Guide under the Learning Hub in YERDI.)
Employee Handbook
- Make sure your Employee Handbook includes clear descriptions of both the 401(a) Retirement Plan and the 403(b) Savings Plan. It should also clearly state that all employees are eligible to contribute to the 403(b) Savings Plan immediately upon employment—no matter their age, hours of service, or compensation.
New Hire Packets and/or Orientation
- Outline information about the 401(a) Retirement Plan and 403(b) Savings Plan in new hire materials. Looking for a place to start? Download the One Fund, Two Plans flyer!
Promote the 403(b) Savings Plan During Open Enrollment
- Choose a consistent time each year—like open enrollment for health and welfare benefits—to encourage all employees to think about enrolling in the 403(b) Savings Plan. It’s also a great opportunity to remind current participants that they can start, stop, or change their contribution levels at any time–they don’t have to wait for this time period each year.
Employee Newsletter & Benefit Websites
- If you have one, describe Y Retirement’s Plans in regular monthly newsletters and on your staff intranet sites.
Employee Information Session
- Consider hosting an employee information session and utilize our promotional materials for the 403(b) Savings Plan. If you want, we can help! Connect with someone from our Y Relations team to discuss your Ys options.
Keep in mind, you should keep accurate records of the steps your Y has taken to meet the Universal Availability Rule as you may be required to show these records to an auditor or the IRS.
Coordinating with Multiple Plans
If your Y (or another organization under common control with your Y, such as a YWCA or JCC) offers a separate 403(b) arrangement in addition to Y Retirement’s 403(b) Savings Plan, please be aware that the 403(b) regulations include specific rules and complex administrative requirements that must be followed. If you have questions or need guidance, our team is always available to help.
Additional Resources
Plan Administrators can find additional access to these helpful resources and more in the Learning Hub in YERDI.