YWCA Retirement Fund: Secure Your Future

1. March 12, 2015

2. Sharon Anderson Benefits Manager Josephine Chow Contributions Manager Joseph DeRocchis Controller Michael Sangregorio Accounting Manager GuednerVillette System Manager Elizabeth Clark Executive Director

3. March 12, 2015

4. To ensure income in retirement for employees of YWCA Associations

5. The Fund began operation in September 1925 with initial funding provided by a $1.8 million donation from the Rockefeller family • one of the oldest private pension plans in the country • the first for women • and actually predates Social Security

6. Multiple-employer-sponsored cash balance defined benefit plan • Qualified under Section 401(a) of the Internal Revenue Code • Governed by the Employee Retirement Income Security Act(ERISA) enacted in 1974 to protect retirement benefits • Enforced by the Department of Labor and the IRS • Also operates as a non-profit tax-exempt organization under IRS Code Section 501(c)(3)

7. ERISA imposes duties on the people responsible for the operation of the Fund • These people, called fiduciaries, have a duty to operate the Fund prudently and in the interest of all Participants

8. Track employee eligibility • Enroll eligible employee • Remit contribution on a timely basis • Notify the Fund of contact changes • Notify the Fund of organization changes

9. Association contributions (pay credits) • Fund Match • Optional Employee After-Tax Contributions, • Interest credits

10. YWCAs elect contribution rate once a year • Contribution rates: 10%, 7.5%, 5% or 3% of gross compensation • Fund makes a 40% match to association contribution

11. Based on • Gross wages including regular pay, overtime, sick and vacation pay, bonus • Excludes - Severance paid after termination of employment - Third-party payment

12. A participant is paid $1,000 a month • YWCA contributes at 7.5% • Fund Match at 40% is 3%

13. Increase retirement income • Interest earned is tax deferred • Fund’s Benefit Estimator in www.ywcarf.org

14. 1% to 10% of participant monthly gross wages • Whole dollar amount between 1% and 10% of wages • After-tax • Made through payroll deduction and remitted by YWCA • Highly-compensated participant(HCE) may not contribute • ERISA requires remittance no later than the 15th business day of following month

15. Mary Jones earns $1,200 gross per pay period • Elects to contribute at 3% • Employee Contribution = $1,200 x 3% = $36

16. Participant elects and sign the A1 form • Form available at website • Association signs the form • Association changes payroll • Association submits form to the Fund • Association remits contribution each month • Election remains in effect until change

17. For Participants did not contribute the maximum in prior Fund years • Highly-compensated participants may not make catchup contribution • Participant needs to call the Fund

18. Interest is credited at the end of each month • Average 10-year U.S. Treasury rate for October of the preceding year • Rate is in effect for the entire year

19. Eligibility Tracking System • YWCA submits payroll data • System alerts YWCA of employees eligible for enrollment • Offered by the Fund free of charge • 68% of YWCAs have implemented Who’s Where • Reduces administrative time and errors • Aids in budget development and cost control • Implementation contacts - Josephine Chow, jchow@ywcarf.org - Mike Sangregorio, msangregorio@ywcarf.org

20. Upload payroll data each month • Create invoice for the month • Contribution due the 15th of following month • Auto ACH debit • Authorize ACH debit • Check payment

21. Complete Excel Contribution Template • Email template to the Fund • Contribution due the 15thof following month • Authorize ACH debit • Check Payment

22. ACH payment(electronic payment) • Authorize Fund to issue debit for amount due • Ensure timely payment - 85% YWCAs pay this way - To sign up, email to msangregorio@ywcarf.org • Check payment

23. Fund requires both association and optional employee contributions be remitted no later than the 15th of the following month. • DOL requires optional employee contribution be remitted as soon as they can be segregated from employer asset but no later than 15th business day of the following month. • Failure to comply will result in interest and penalty.

24. ERISA regulations • Excise taxes and Penalties • No penalty cutoff

25. Required by DOL/ERISA • Response is Mandatory if Selected • Fund Policy and Procedures • Errors will be Summarized and Communicated

26. No Risk Accounts can only go up, never down • Immediate Vesting 100% from day one of participation • Fund Match 40% of the employer’s contribution • Interest Credits 10 year Treasury bond interest rate is guaranteed for the year • IRS Qualification Accounts grow tax-deferred • Distribution Options Upon termination of employment or at age 65 while still working at the YWCA • 100% Portability All or half as an annuity or lump sum distribution • PBGC Insurance Premium per participant for 2014 $49, for 2015 $57 • No Fees or Charges for Participants • No Fees or Charges for Association

27. www.ywcarf.org - The Fund’s Summary Plan Description booklet (SPD) - Forms • Eligibility and Enrollment webinar in October 2014 available at YWCA USA Intranet

28. 52 Vanderbilt Avenue Sixth Floor New York, NY 10017-3808 Telephone: 212-922-9500 Toll Free: 800-222-4738 Fax: 212-922-9511 Email: info@ywcarf.org Website: www.ywcarf.org

29. Thank You!