began operation in september 1925 one of the oldest pension plans in the country the first pension...
TRANSCRIPT
Began operation in September 1925
One of the oldest pension plans in the country
The first pension plan for women
Predated Social Security
A cash balance defined benefit plan
Qualified under Section 401(a) of the Internal Revenue Code and governed by ERISA
Most recent Determination Letter issued March 8, 2010
Pension benefits are insured by the PBGC
Safety Value of an account can never decline, no matter economic conditions
An Annuity Option Guaranteed monthly income for life
• Incorporated by act of New York State Legislature as a separate corporation
• Began with $1.8 million funding from JD Rockefeller Jr.
1924
• Enactment of ERISA (Employee Retirement Income Security Act) to protect employee pensions
1974
• YWCAs voted for mandatory participation at National Convention
1976
• Eligibility increased from one to two years
• Immediate vesting approved by Board of Trustees
1989 1997 2001
•Increasing Portability
•Fund eliminated 1% administrative fee
2002 Important Changes 2002 Important Changes
Annual Association Election of Contribution Rate
10% 7.5% 5% 3%
Fund Match 40% of Association Election
4% 3% 2% 1.2%
Total Contribution to an Account
14% 10.5% 7% 4.2%
Guaranteed Interest Credit based on 10-year treasury rate
In-Service Distributions at age 65
100% Account Portability
How Do Accounts Grow?
Association Contributions+
Fund Match+
Employee Optional Contributions+
Interest Credits
Account Balance=
Association Contributio
n Rate
Fund Match
Rate
Fund Account Value* at age
Annual Annuity at age
Percent Percent 42 47 52 65 65
10% 4% $4,255 $31,161 $69,785 $257,199 $20,904
7.5% 3% $3,192 $23,371 $52,338 $192,899 $15,672
5% 2% $2,128 $15,581 $34,892 $128,600 $10,452
3% 1.2% $1,277 $9,348 $20,935 $77,160 $6,264
Example:
Becomes a Fund Participant after 2 years at age 41
‐ Earns $29,705 per year
* Assume 5% interest credit and 3% salary increase.
Benefit Distribution Options
Annuitize the account and receive a guaranteed monthly pension check for life
Rollover the account into another plan or IRA
Receive a lump sum refund of the account
Leave the account with the Fund
The Fund The YWCA
Ensure safety of assets necessary to pay out promised, guaranteed benefits
Ensure compliance with the regulations of ERISA
Ensure compliance with the eligibility-enrollment regulations under ERISA
Ensure compliance with the timely submission of employee contributions as required by the DOL and IRS
The Fund has two primary goals
The First Eliminate the Need for Retroactive Enrollments
The Second Eliminate the Need for Form 5330 Filings
COMPLIANCE REVIEWS required in Independent Auditors Report
Compliance Review Findings
Retroactive Enrollments Required
Participants
Contribution
Contributions
YWCAs Participants Retro Maximum Annual
2006 8 23 $42,414 $23,715 $26,500
2007 8 31 64,842 36,543 22,400
2008 5 16 57,366 48,620 30,000
2009 6 15 44,412 35,173 16,400
2010 4 8 8,531 4,203 127,800
• Helps YWCAs to Track Employee Eligibility
• Monthly Retirement Contribution Template
Inquire through [email protected]
Form 5330 Filing Trends
YWCAs Contributions Interest IRS Penalty
2004 95 $302,047 $743 $111
2005 85 106,119 213 32
2006 64 144,151 599 90
2007 44 80,049 379 57
2008 52 132,716 361 54
2009 44 131,086 253 38
•An ERISA Requirement
•no later than 15 days following the month of withholding•prohibited transaction•file Form 5330 and pay an excise tax
Paying retirement contributions by ACH
ACH Authorization Agreement
Monthly contribution template
Electronic Payment Methods (Agreement must be on file with the Fund)Mark X next to the appropriate option
____ ACH Credit – YWCA issues credit to the Fund’s bank account for the amount due.
__X_ ACH Debit – The Fund issues debit to the YWCA’s bank account for the amount due.
____ Upon receipt of template but no earlier than 1st of the following month.
__X_ On due date, 15th calendar day of the following month.
Authorized by ________Jane Doe___________
Title ___Accounts Payable Manager_________Date ____April 3rd, 2011_____
Electronic Payment Methods (Agreement must be on file with the Fund)Mark X next to the appropriate option
____ ACH Credit – YWCA issues credit to the Fund’s bank account for the amount due.
__X_ ACH Debit – The Fund issues debit to the YWCA’s bank account for the amount due.
____ Upon receipt of template but no earlier than 1st of the following month.
__X_ On due date, 15th calendar day of the following month.
Authorized by ________Jane Doe___________
Title ___Accounts Payable Manager_________Date ____April 3rd, 2011_____
A New Feature
On-line Retirement Benefit Estimator
Available: 3rd Quarter 2011
Thank you!