Fund Facts: How It Works

    What's The Plan?

    YWCARF is a “cash balance defined benefit plan"

    Your account is funded monthly by your employer based upon a percentage of your monthly earnings and grows over the years that you work.

    Participants are not required to make any contributions and do not bear the risk of investments made: account balances do not go down, regardless of investment performance.

    Pension benefits are insured by the Pension Benefit Guaranty Corporation and the plan is governed by the Employee Retirement Income Security Act (ERISA).

    A lifetime annuity is available.


    Once a participant, always a participant

    YWCA employees become eligible for enrollment after working at least 1,000 hours a year for two years. Prior YWCA work hours count toward eligibility if reemployment occurs within two years.

    Once eligible, employees are enrolled on the first of the month following the end of the second qualifying year. Participants are immediately vested, which means that they own 100% of their YWCA association’s contributions.


    Our contribution to your security

    YWCA associations make monthly contributions to participants’ accounts at one of four contribution levels: 3%, 5%, 7.5%, and 10%. YWCARF then credits each account monthly with an additional 40%.

    If your association contributes 10% of participants' monthly earnings, the total added to your account is 14%.

    With the exclusion of highly compensated employees, participants may also make additional after-tax contributions on a monthly basis. Find out more.


    The last layer of your monthly credit

    The interest rate for YWCARF accounts is calculated annually using the average of 10-year U.S. Treasury Securities for the month of October in the preceding year.

    2024’s interest rate is 4.8%.

    Interest is credited at the end of each month, based on the balance at the beginning of that month.

    Receiving Your Benefits

    Conditions and requirements

    Participants are eligible to receive a distribution of their benefits upon:

    • Retirement
    • Termination of employment
    • Death (payment made to beneficiaries)

    The IRS requires that participants begin receiving benefits at age 73, but participants aged 65 or older - who are still working - may choose to begin receiving benefits at any time.

    Summary Plan Description

    Everything you need to know about your retirement plan

    YWCARF’s Summary Plan Description (SPD) has all the information you need to decide your best options for receiving benefits, as well as how to calculate annual annuity, designate a beneficiary, and more.