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Optional Employee After-Tax Contributions

Q. Now that I am a Participant in the Fund, can I make additional contributions on my own?

A. Yes. In order to increase your future retirement benefit, you may choose to make optional contributions to the Fund. These after-tax contributions are made on a monthly basis through payroll deduction by your Association.

Q. How much can I contribute?

A. You may make contributions in one of two ways. The first is an amount, expressed as a percentage of your compensation between 1% and 10% of your gross wages, or you may designate a specific dollar amount that is between 1% and 10%.

Q. How do I make Optional Employee After-Tax Contributions?

A. You can authorize payroll deductions at any time by submitting a completed Authorization for Optional Employee After-Tax Contributions Form (A1) to your payroll department. Forms may be obtained from this website.

Q. Once I begin making Optional Employee After-Tax Contributions when can I stop?

A. You can discontinue making Optional Employee After-Tax Contributions whenever you wish. However, you must notify your payroll department whenever you choose to make a change.

Q. Are all active Participants allowed to make Optional Employee After-Tax Contributions?

A. No. As required by law, any Participant who is considered a Highly Compensated Employee cannot make additional Optional Employee After-Tax Contributions.

Q. Will I have to pay income taxes on my Optional Employee After-Tax Contributions?

A. Contributions are made on an after-tax basis. However, the interest earned on those contributions is taxable. When a participant receives a distribution, the interest that has been credited will be taxed.

Catch-Up Contributions

Q. What are Catch-Up Contributions?

A. If you do not, or did not, make maximum Optional Employee After-Tax Contributions in prior years, but wish to do so now, you may make "catch-up" contributions directly to the Fund in a single sum.

Q. How do I know the amount that I am able to contribute?

A. Contact the Benefits Department at the Fund at 1-800-222-4738 and we will calculate the amount for you.

Designating a Beneficiary

Q. What is a beneficiary?

A. The person who receives your benefits when you die.

Q. Who can be named as a beneficiary?

A. You can name any person or trust as your beneficiary.

Q. If I am married is my spouse automatically the beneficiary?

A. Yes. If you are legally married your spouse is automatically your beneficiary.

Q. Can someone other than my spouse be the beneficiary?

A. If you want to name someone other than your spouse as your beneficiary, federal law requires that your spouse provide written consent to your designation. Your spouse's written consent must be witnessed by a notary public. If your spouse does not provide written consent, federal law requires the Plan to pay 50% of your account to your surviving spouse in the event of your death, regardless of whom you named as beneficiary. Your spouse’s consent is irrevocable. Elections to waive the required spousal death benefit are not permitted until the Plan Year in which you attain age 35. The remaining 50% will be paid to the beneficiary that you have designated.

Q. What happens if I do not complete a beneficiary election?

A. If you do not name a beneficiary, your entire account will be paid to your spouse if you are married. If there is no spouse, it will be payable to your estate.

Military Service

Q. I am an active Participant in the Fund and have been called to military service. What will happen?

A. Military service is defined by law to mean active service, including training and inactive duty for training in the U.S. Armed Forces, the National Guard or the Public Health Service. To qualify for military leave you must be leaving employment with a participating Association solely for this purpose.

Q. What will happen when I return from military leave?

A. If you return to active employment within the time period specified under the applicable law, then you will be considered to have been on an approved leave of absence and you will receive Pay Credits, Match Credits and Interest Credits to your account as if you had been working on a full-time basis for a participating Association.

Q. When I went on military leave I was not yet eligible to participate in the Fund. What rules apply in that situation?

A. If you were not already a Participant during that period of time, it will be considered as if you had been working on a full-time basis and that time will be counted toward satisfying your eligibility requirements.

Qualified Domestic Relations Orders (QDROs)

Q. What is a Qualified Domestic Relations Order (QDRO)?

A. A QDRO is any judgment, decree or order that provides for child support, alimony and/or marital property rights to a spouse, former spouse, child or other dependents of the Participant under state domestic relations law, including community property law.

Q. If I get divorced, can my former spouse receive any of the money in my pension account?

A. Yes. A state court can divide the value of your account between you and your former spouse. The amount is determined by what you and your former spouse agree upon and what is approved by the court.

Q. How are the terms of a QDRO determined?

A. A QDRO must meet certain Plan and administrative requirements to be honored by the Fund. If you are a Participant and have a QDRO pending, please contact the Fund before the QDRO is made a final order of a court to confirm the validity of the QDRO.

Q. What happens after a QDRO is approved?

A. An account is set-up for the former spouse, who will be considered much like a terminated employee. The former spouse is entitled to do any of the following with their account:

• Receive a lump-sum payment minus 20% federal income tax

• Rollover the account to another employer’s plan or IRA

Terminating your employment with a YWCA

Q. What happens to my Retirement Fund account if I leave employment with my YWCA?

A. Since you are already 100% vested in your account you will have several options. You can choose to receive all or part of your account or you can leave it with the Retirement Fund until you reach age 70 ½.

Q. What options do I have for the payment of my pension benefits?

A. If your account is greater than $5,000 you have several options:

• 100% of your total account value may be paid as a lifetime monthly annuity

• 100% of your total account value may be paid in a lump sum that can be rolled over to another employer’s plan, to an IRA or directly to you

• 50% of your total account value may be paid as a lifetime monthly annuity and the other 50% may be paid as a lump sum

Q. What options do I have if my account value is less than $5,000 but greater than $1,000?

A. You may still receive either 100% or 50% of your account as a lump sum that can be rolled over to another employer’s plan, to an IRA or directly to you. Only accounts with a balance of $5,000 or more may qualify for an annuity.

Q. What about accounts that are $1,000 or less?

A. You will automatically receive a single lump sum payment after you retire or terminate unless you instruct us prior to the distribution to rollover the account to another employer’s plan or to an IRA.

Q. Are there any special rules if I have made Optional Employee After-Tax Contributions?

A. Yes. You may request a distribution of your optional account only. If you choose to commence receipt of either 50% or 100% of your regular account then you must also withdraw your optional account at the same time.

Q. How do I apply for a distribution from my account?

A. Your employing YWCA must complete a Change in Status Notice (CSN) to advise the Fund that you are no longer an active employee. You may contact the Benefits Department at the Fund by calling 1-800-222-4738 to request an Options package. We will provide you with all of the necessary forms and instructions to get you started in the process.

Q. Will I have to pay taxes on the money that I withdraw?

A. Generally, the benefits you receive from the Plan are subject to taxes. However, if you choose the lump sum payment option and do not rollover the proceeds of your account to an IRA or another employer’s retirement plan, the refund will be subject to mandatory 20% federal income tax withholding. In addition, you likely will be subject to a 10% additional tax when you file your federal income tax return if you terminate your employment before the year you turn age 55.

Q. What will happen to my account if I choose to leave it with the Retirement Fund until a later date?

A. All employee accounts are 100% vested. After you terminate your employment with a YWCA you may leave your account with the Retirement Fund, but not past age 70 ½, where it will continue to earn interest credits monthly.

Q. If I leave my account with the Retirement Fund how will I know what my balance is?

A. The Retirement Fund will send you an annual Statement of Account. You will generally receive the statement in February of the following year. It is extremely important that you keep your most current address on file with the Fund. If we can’t locate you, we can’t mail you a statement.

Q. Can I continue to participate in the Retirement Fund after leaving the employment of a YWCA?

A. No. The YWCA Retirement Fund is a benefit that is only provided to active employees of YWCAs in the United States.

Retiring from the YWCA

Q. What is an annuity?

A. A monthly payment made to you for life when you retire.

Q. How are annuities calculated?

A. The exact amount of your monthly annuity depends on your age, the value of your account, the annuity option that you choose, and the annuity purchase tables in effect for the Fund at that time. The annuity purchase tables are based on mortality and interest rate factors. Because the interest rate is market-based and can fluctuate from year to year, your account will provide different levels of annuity benefits depending upon the year in which you choose to begin receiving your annuity.

Q. Can my monthly annuity payment ever decrease?

A. No. All payments are guaranteed for life.

Q. When may I start to receive my monthly retirement annuity?

A. You may begin receiving a lifetime annuity at any age once you are no longer employed by a YWCA. You must have a minimum account balance of $5,000. You will begin receiving payments as soon as practicable after you have submitted all the required forms and documentation.

Q. How do I apply for my monthly retirement annuity?

A. You can contact the Benefits Department at 1-800-222-4738 to request an Options package. We will send you a detailed letter describing all of your retirement options along with the forms that you will need to complete to begin the process.

Q. Is there any time that I can begin receiving my monthly retirement annuity while I am still employed?

A. Yes. If you are age 65 or older you may begin to receive your monthly annuity while still employed.

Q. Is it possible to select an annuity that will provide income to a beneficiary when I die?

A. Yes. The Fund has several annuity options that provide income to surviving beneficiaries. The annuity types vary. Some may provide lifetime income to a survivor beneficiary while other types may provide income for a fixed period of time.

Q. What types of annuities are available?

A. The Fund offers you a choice of six different annuities. They are:

Straight Life The Straight Life annuity option is the normal form of payment for unmarried participants. If you are married you must obtain your Spouse’s written notarized consent to elect this option. This option pays only you and pays the largest benefit per month. All payments cease at your death. There is no death benefit payable to your beneficiaries.

Joint and Survivor Under federal pension law the 50% Joint and Survivor annuity is the normal form of payment for married participants. Under this option, the benefit you receive during your lifetime is reduced so that when you die your Spouse or other joint annuitant will continue to receive monthly income for the remainder of her or his lifetime equal to 50% of the benefit payable during your lifetime. You can assign an additional beneficiary to receive the remainder of your decreasing death benefit, if any, after the death of the annuitant and the survivor annuitant. In addition to the 50% survivor option, you can also elect to have either 75% or 100% of the benefit paid during your lifetime continued for your Spouse or other joint annuitant. A larger survivor annuity percentage will result in a more significant reduction in the benefit payable during your lifetime. If you are married, your account exceeds $5,000, and you elect a payment option other than a 50%, 75% or 100% Joint and Survivor annuity with your spouse as the survivor annuitant, a notarized spousal consent is required in order for the election to be valid.

Period Certain and Life You elect a specified period of 5, 10 or 15 years to assign a monthly annuity benefit to your designated beneficiary. If you die within the period you elected, your annuity payments will be assigned to your designated beneficiary for the remaining period. When that period ends, the payments to your beneficiary will cease. If you outlive the period you elected, your annuity payments will continue for the remainder of your lifetime. If you are married, to designate someone other than your spouse, a notarized spousal consent is required.

Modified Cash Refund This annuity offers an initial decreasing death benefit based on approximately one-half of your account value. Upon your death, your beneficiary receives a single sum payment minus the total annuity payments you received. If the total of your annuity payments exceed the initial decreasing death benefit, your designated beneficiary will not receive a single sum payment from the Fund. If you are married, to designate someone other than your spouse, a notarized spousal consent is required.

Full Cash Refund This annuity offers an initial decreasing death benefit based on your total account value. Upon your death, your beneficiary receives a single sum payment minus the total annuity payments you have received. If the total of your annuity payments exceed the initial decreasing death benefit, your designated beneficiary will not receive a single sum payment from the Fund. If you are married, to designate someone other than your spouse, a notarized spousal consent is required.

Fixed Death Benefit You provide the Fund with an amount you want to be set aside for your designated beneficiary. The amount you choose cannot be more than your total account balance. The death benefit remains fixed. The balance of your account is annuitized. If you are married, to designate someone other than your spouse, a notarized spousal consent is required.

Q. After I have selected my annuity option and have begun to receive monthly payments can I change the type of annuity that I receive?

A. No. The annuity election that you submit is irrevocable and cannot be changed.

Q. How will I receive my monthly annuity payment?

A. The safest and most reliable method is through EFT (Electronic Funds Transfer). The Fund will automatically deposit your monthly payment into a bank account of your choosing.

Q. Will I have to pay taxes on my monthly annuity income?

A. Yes. The Association Contributions, Fund Match and the Interest Credits in your account will all be taxed in accordance with IRS guidelines. Optional Employee After-Tax Contributions have already been taxed so this portion of the monthly payment will not be taxed again.

The taxable and non-taxable portions of your check will be calculated for you and reported annually on Form 1099R.

Q. Can I continue to collect my monthly annuity if I return to work at a YWCA?

A. Yes. You will continue to receive your monthly annuity payments. You will also automatically begin participating in the Fund again and will receive contributions into your account based upon the contribution rate of your employing Association and your current salary. If you are age 65 or older, you will be given the choice to receive your newly earned benefits or to defer them until a later date.

Retirement Fund Estimator
Death Benefits

Q. What happens to my account if I should become deceased before receiving the benefits of my account?

A. If you die before you begin receiving payment of your account, the total value of your account will be paid to your spouse or other beneficiary that you designate. If you have been a Participant in the Fund for at least six months and die while actively employed by a participating Association or within 60 days following termination or going on unpaid leave, the death benefit paid on your behalf will not be less than $5,000, not counting any Optional Employee After-Tax Contributions you make and the interest credits on those contributions.

Q. What happens if I become deceased while receiving my monthly annuity?

A. If you die while receiving annuity payments, your designated beneficiary will be entitled to a death benefit only if the annuity option you selected provides for one.

Loans and In-Service Hardship Withdrawals

Q. Can I borrow against or withdraw money from my account?

A. No. As a Defined Benefit Plan the Retirement Fund does not permit loans or in-service hardship withdrawals.