Your Guide to Understanding the YMCA Retirement Fund

An Easy-to-Understand Introduction to the Retirement Plan and the Savings Plan

? How the Plans Work ? Contributions

? Annuities

? Eligibility ? Enrollment ? Other Benefits

September 2013

WELCOME TO THE YMCA RETIREMENT FUND

Inside you'll find clear, easy-to-read explanations to many of the key aspects and intricacies of the Retirement Plan and the Savings Plan, including how to get started, and how to build your savings.

This Guide was originally created in 2002 as a joint effort by the YMCA Retirement Fund and Lightbulb Press. () PHOTO CREDITS YMCA of the USA IMPORTANT TERMINOLOGY Please note that use of the terms listed below have the following meanings: ? Retirement Plan--the YMCA Retirement Fund Retirement Plan ? Savings Plan--the YMCA Retirement Fund Tax-Deferred Savings Plan ? 4 03(b) Smart Account--the account for pre-tax contributions under the

YMCA Retirement Fund Tax-Deferred Savings Plan ELEVENTH EDITION ?2013 YMCA RETIREMENT FUND. ALL RIGHTS RESERVED. If any inconsistencies arise between this guide and the Plan Documents, the language in the official Plan Documents will govern. The YMCA Retirement Fund has made every attempt to ensure the accuracy of this material, however, it should not be construed as legal, accounting, financial, investment or other advice. The Fund reserves the right to revise this information at any time to correct errors or otherwise. If it appears that any item is incorrect, please contact the YMCA Retirement Fund. Y and the Y logos are registered trademarks of the YMCA of the USA and used with permission. YMCA Retirement Fund and the YRF logo are trademarks owned by the YMCA Retirement Fund.

YMCA RETIREMENT FUND

Why Save for Your Future?

PLANNING AHEAD The earlier you start saving for retirement, the better off you will be. You should save at least 15% of your salary each year throughout your career in order to retire comfortably.

THE SAVINGS PLAN Starting on your first day of employment, you can save tax deferred in a 403(b) Smart Account and roll over your savings from another eligible employer pension plan or certain IRAs.

SOURCES OF INCOME There are three categories of income that may be available to provide for your retirement:

? YMCA Retirement Fund plans and

other pension plans

? Personal savings and investments ? Social Security

Since Social Security benefits won't cover all of your expenses, it's crucial to take saving for retirement into your own hands.

As a Y employee, you are given a special opportunity to save for your future. The Savings Plan and Retirement Plan enable you to build up your savings.

THE RETIREMENT PLAN Once you're enrolled in the Retirement Plan, your Y will contribute a part of your retirement savings.

RETIPRLEAMNENT

SAPVLINANGS

PLAN FOR A LONG RETIREMENT Having an annuity that provides income for life is important since many of us will look forward to spending as many (if not more) years retired as we worked during our Y careers. Experts call this "longevity risk."

As this chart shows, there is a 50% chance that a 65-year-old male will live to age 85, a woman to age 88 and at least one spouse in a married couple to age 91.

PROBABILITY OF A 65-YEAR-OLD LIVING TO VARIOUS AGES

100%

Male

Female

At Least One Spouse

75%

50%

Age 85 88 91

25%

0 Age 65 70

75 80

Source: Morningstar Inc.

85 90

95 100 105

YMCA RETIREMENT FUND

Path to Saving for Your Future

One of the primary benefits of working for a Y is that you can build your savings with the YMCA Retirement Fund. In the course of your Y career, you might move from one Y to another, but your savings will stay at the YMCA Retirement Fund.

The YMCA Retirement Fund sponsors two plans: the Retirement Plan and the Savings Plan.

The Retirement Plan is a 401(a) defined contribution account balance plan. This means that benefits at retirement are determined by the amount in your account during your working career, plus interest credited.

The Savings Plan is a 403(b) plan, which offers you a way to save additional money for your future, from your first day of employment at a Y.

WHEN YOU START As soon as you start working for a Y, you can begin to save with a 403(b) Smart Account. You can also roll over money from eligible employer pension plans or certain IRAs to a Rollover Account.

ELIGIBILITY To be enrolled in the Retirement Plan, you must have completed 1,000 hours of service during each of any two 12-month periods, beginning with your date of hire. The two years do not have to be consecutive. You must also be at least age 21.

THE SOONER YOU START SAVING,

ADDITIONAL SAVINGS You can add to your retirement nest egg by saving with a 403(b) Smart Account. The account is tax-deferred, so income taxes on contributions and earnings are postponed until you take a withdrawal or start your annuity. You can start, stop, or change the amount you want to save at any time.

You can also roll over money to a Rollover Account if you haven't already done so.

HOW THE FUND INVESTS The money saved in the plans is invested in a variety of vehicles, including stocks and bonds, to ensure future growth and to assure retirement income to all participants who retire from a Y. The Fund's Board of Trustees declares the interest rate that will be credited to your accounts based on how well the investments perform and other considerations.

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YMCA RETIREMENT FUND

ENROLLMENT AND VESTING When you meet the eligibility requirements, your Y will enroll you in the Retirement Plan. When you're enrolled, you are immediately vested.

CONTRIBUTIONS TO YOUR RETIREMENT PLAN ACCOUNTS Contributions are based on your compensation. Some Ys pay the entire amount. Others require that both you and your Y pay.

THE MORE YOUR EARNINGS WILL GROW

ACCOUNT GROWTH Your savings grow based on the level of contributions being made and interest credited to your accounts. What's more, the earlier you begin to save with a 403(b) Smart Account, the faster your savings will grow.

AT RETIREMENT Once you are no longer working for a Y, you can start receiving an annuity from the Retirement Plan and/or the Savings Plan as early as age 55. An annuity pays you a monthly income for life. You'll need to make

important decisions about the annuity option that's best for you.

Depending on the amount you have saved, you can decide whether to withdraw your savings or start an annuity from each plan, and these decisions can be made for each plan at different times.

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