YMCA Compliance
Responsibilities
The YMCA Retirement Fund is regulated by the IRS, the Department of Labor, and the New York State Department of Financial Services. We take our responsibility to meet all regulatory requirements seriously, and we’re committed to maintaining the highest level of compliance. A key part of that commitment is supporting YMCAs in staying compliant as well.
What are the primary responsibilities of a YMCA participating in Y Retirement?
Timely Enrollment in the 401(a) Retirement Plan
Regardless of your Y’s 401(a) Retirement Plan eligibility and vesting structure, you are required to enroll employees in the Plan as soon as they are eligible. This is a mandatory part of their employee agreement with you.
However, if a new employee is hired by a YMCA for the first time after the age of 60, and your Y requires employees to make contributions to the 401(a) Retirement Plan (a shared contribution model), that employee may waive participation by completing a Waiver of Participation Form before becoming eligible to participate.
Learn more about Eligibility requirements here.
Timely Contributions
- Contributions that your Y makes on behalf of employees (referred to as YMCA Contributions) to the 401(a) Retirement Plan must be made no later than the 15th business day following the month to which they relate.
- Participant contributions to the 401(a) Retirement Plan and/or the 403(b) Savings Plan must be made as soon as reasonably possible after each payroll—no later than the 15th business day following the month when payable.
- You also have a responsibility to timely report termination of employment. Failure to do so could result in accelerated vesting for the participant.
Universal Availability of the 403(b) Savings Plan
Ys are required to let newly hired employees know about their opportunity to make elective contributions to the 403(b) Savings Plan, and provide an annual reminder to all existing employees so they’re aware they can start, stop, or change contributions at any time.
Learn more about universal availability here.
Overall Primary Risk
In addition to the specific penalties applicable to a delinquent YMCA, noncompliance with these obligations by a single YMCA could constitute a breach of fiduciary duty under ERISA. Such a breach could result in a loss of favorable tax status affecting all Ys participating in the Plans; and/or the suspension or termination of the delinquent Y from participating in the Plans of Y Retirement.
Email us to understand your Y's Compliance responsibility.
Additional Resources
Plan Administrators can find additional access to these helpful resources and more in the Learning Hub in YERDI.
