The YWCA Retirement Fund

1. The YWCA Retirement Fund

2. Attendingfrom the Fund Sharon Anderson Benefits Manager Josephine Chow Contributions Manager Betty Jo Lesonsky Director of Benefits Guedner Villette Systems Manager Elizabeth Clark Executive Director

3. YWCA Retirement Fund Eligibility and Enrollment and how to avoid common pitfalls October 30, 2014

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

5. History of the Fund 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. Legal Status of the Fund • 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. Our Shared Fiduciary Responsibilities • 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. Fiduciary Responsibilities of the Fund Ensure compliance with ERISA • review participating employers to determine compliance with ERISA eligibility and enrollment rules • and the accuracy of employer contributions

9. Fiduciary Responsibilities of the Association Ensure compliance with ERISA • track eligibility of all employees • enroll eligible employees on a timely basis • remit contributions on a timely basis

10. Participation in the Fund Participation in the Fund • Mandatory participation of an Association in the Fund is a requirement of the YWCA U.S.A. By-Laws • Employee participation in the Fund upon meeting the eligibility rules is a requirement of ERISA

11. Participation in the Fund Participation in the Fund • Federal law requires that an employer offering a defined benefit plan provide the benefit to all employees, full-time or part-time, who meet the eligibility rules. • When a YWCA acquires the operation of another 501(c) (3) organization the past service of those employees counts toward eligibility. • The W-2 determines the eligibility status. If the YWCA is the employer then the employee is eligible for the benefit.

12. Participation in the Fund Participation in the Fund There can be no waivers by • the employee • the Association • the Fund Ineligible employees include • leased employees • independent contractors • collectively bargained employees

13. Eligibility Rules What you need to know and do before and when an employee begins work A Common Pitfall Past Employment with a YWCA Once a Participant, always a Participant former Participants need to be enrolled immediately Prior YWCA work experience counts toward eligibility, if reemployed within two years SOLUTION Include a question on Application for Employment

14. Eligibility RulesHow to track employee work hours needed to meet eligibility criteria • Employees must be enrolled in the Fund as of the first of the month after they complete two years of service counting from their date of hire. The two years of service need not be consecutive. • ERISA defines a year of service as the completion of 1,000 hours of employment within a 12-month period beginning on the first day one hour is worked. • Counting begins again for each year using the anniversary of the employee’s date of first hour of service as the first day of counting for the new year. If an employee does not complete 1,000 hours of service within any 12-month period, that year is not counted toward eligibility.

15. Eligibility Rules Why employee work hours need to be tracked A Possible Pitfall Failure to track and retain service hour records If records of work hours cannot be provided then the Equivalency Rule applies 190 Hours will be counted toward eligibility for each month the employee works one or more hours SOLUTION Implement Who’s Where Tracking system Free from the Fund

16. Eligibility Tracking Using Who’s Where • Eligibility Tracking System • YWCA submits payroll data • System alerts YWCA of employees eligible for enrollment • Offered by the Fund free of charge • 67% of YWCAs have implemented Who’s Where • Reduces administrative time and errors • Aids in budget development and cost control https://ywcarf.whoswhere.org/login.aspx Implementation Contacts: Josephine Chow, jchow@ywcarf.org Mike Sangregorio, msangregorio@ywcarf.org

17. Eligibility Example For Full-Time Employee Suppose a full-time employee is hired on March 15, 2013 and works 37.5 hours each week. The employee will satisfy the two years of service requirement at the end of the day on March 14, 2015 as shown. Service 3/15/13 -3/14/14 3/15/14-3/14/15 Actual Hours Worked 37.5 hours x 52 weeks = 1,950 37.5 hours x 52 weeks = 1,950 Year of Service Yes Yes The employee will begin Fund participation on April 1, 2015.

18. Eligibility ExampleFor Part-Time Employee Suppose a part-time employee is hired on September 20, 2013 , and works 24 hours each week during the first year of employment, 15 hours each week during the second year and 20 hours each week during the third year. The Employee will satisfy the two years of service requirement on September 19, 2016 as shown below. Service 9/20/13-9/19/14 9/20/14-9/19/15 9/20/15-9/19/16 Actual Hours Worked 24 hours x 52 weeks = 1248 15 hours x 52 weeks = 780 20 hours x 52 weeks = 1040 Year of Service Yes No Yes The employee will begin Fund participation on October 1, 2016

19. Enrollment Procedure • For a New Participant • For a Rehired Former Participant • In Both Instances • Submit a Notification of enrollment form (NOE),a month before Participation Date • Submit a Return to employment form (REN), as soon as possible • An Association signature is required • The employee’s signature is not required • Give a Designation of Beneficiary form to the employee All forms are available at the Fund website www.ywcarf.org

20. Enrollment FormsCommon Problems Missing date of employment Payroll Hours data not provided (sometimes, REN is used) Missing Association signature Executive Director enrollment form missing Board President’s signature Receive contribution before submission of enrollment form

21. Pitfalls Consequences Solutions Possible Pitfalls • Past YWCA Employment • Missing Service Hour Records Solutions • Question on Application for Employment • Implement Who’s Where Tracking System Consequences The YWCA is responsible for remitting Retroactive Contributions and Interest

22. Benefits of the Retirement Fund 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 entered rate is guaranteed for the year IRS Qualification -- accounts grow tax-deferred Distribution Options -- upon termination of employment -- or in service at age 65 if 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 Associations.

23. YWCA Retirement Fund Contact Points 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