March 12, 2015 Sharon Anderson Benefits Manager - PowerPoint Presentation

Slide1

March 12, 2015

Slide2

Sharon Anderson Benefits Manager

Josephine Chow Contributions Manager

Joseph DeRocchis Controller

Michael Sangregorio Accounting Manager

Guedner

Villette

System Manager

Elizabeth Clark Executive Director

Slide3

March 12, 2015

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To ensure income in retirement for employees of YWCA Associations

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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

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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)

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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

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Track employee eligibility

Enroll eligible employee

Remit contribution on a timely basis

Notify the Fund

of contact

changes

Notify the Fund

of organization

changes

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Association contributions (pay credits)

Fund Match

Optional Employee After-Tax Contributions,

Interest credits

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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

Association Contribution

Fund Match

Total

Credits

10%

4%

14%

7.5%

3%

10.5%

5%

2%

7%

3%

1.2%

4.2%

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Based on

Gross wages including regular pay, overtime, sick and vacation pay, bonus

Excludes

- Severance

paid after termination of

employment

- Third-party payment

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A participant is paid $1,000 a month

YWCA contributes at 7.5%

Fund Match at 40% is 3%

Descriptions

Amount

Association Contribution

$1,000 x 7.5%= $75

Fund Match

$1,000 x 3%= $30

Total Pay Credit

per month

$105

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Increase

r

etirement income

Interest earned is tax deferred

Fund’s Benefit Estimator in

www.ywcarf.org

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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 15

th

business day of following month

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Mary Jones earns $1,200 gross per pay period

Elects to contribute at 3%

Employee Contribution = $1,200 x 3% = $36

Descriptions

Amount

Gross Wages

$1,200

Taxable Wages

$1,200

Federal Income Tax (15%)

$180

Social

Security Tax (6.2%)

$74.40

Medicare

Tax (1.45%)

$17.40

After-Tax Employee Retirement

$36.00

Net Pay

$892.20

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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

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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

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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

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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

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Upload

payroll data each month

Create invoice for the month

Contribution

due the

15

th

of following month

Auto

ACH debit

Authorize

ACH debit

Check payment

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Complete Excel Contribution Template

Email template to the Fund

Contribution due

the 15

th

of following month

Authorize ACH debit

Check Payment

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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

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Fund requires both association and optional employee contributions be remitted no later than the 15

th

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 15

th

business day of the following month.

Failure to comply will result in interest and penalty.

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ERISA regulations

Excise taxes and Penalties

No penalty cutoff

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Required by DOL/ERISA

Response is Mandatory if Selected

Fund Policy and Procedures

Errors will be Summarized and Communicated

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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

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www.ywcarf.org

- The Fund’s Summary Plan Description booklet (SPD)

- Forms

Eligibility

and Enrollment webinar in October 2014 available at YWCA

USA

Intranet

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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

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Thank You!