Before you move forward with retirement planning, learn the meanings of the following retirement terms and definitions.
Account
The account maintained by the Fund for each Participant that contains Association contributions, 40% Fund matching contributions, Interest Credits, and Optional After-Tax Employee Contributions (if any).
Annuity
A monthly payment made to you for life when you retire.
Association
Any YWCA in the United States that conforms to the standards of the YWCA USA.
Beneficiary
A person or trust designated by you to receive a benefit upon your death.
Cash Balance Defined Benefit Plan
A pension plan provided by your employer that is funded monthly based upon a percentage of your annual Compensation plus Interest Credits.
Code
The Internal Revenue Code
Compensation
Paid to you by your YWCA that includes your regular annual salary or wages paid each calendar year (inclusive of overtime pay), bonuses, vacation pay, sick leave pay, severance pay (when paid prior to your date of termination of employment), any other payment for services rendered, and your salary deferrals under Code Sections 125, 132(f)(4), 401(k), 403(b), and/or 457. During a Plan Year, Compensation cannot exceed the applicable annual dollar limitation under Code Section 401(a)(17)(A). In 2024, the maximum Compensation is $345,000.
ERISA
The Employee Retirement Income Security Act, a U.S. Federal tax and labor law that establishes minimum standards for pension plans in private industry. ERISA began in 1974 to protect the interest of participants and beneficiaries in employee benefit plans. ERISA requires plan sponsors to report and disclose detailed plan information to participants and the Department of Labor.
Fund
The YWCA Retirement Fund.
Interest Credits
The amount the Fund credits to your account each month based on a specified rate. Interest Credits are set annually and are guaranteed at the average 10-year Treasury rate from October of the previous year.
Plan
The YWCA Retirement Fund, Incorporated Plan.
Plan Year
The 12-month period beginning on January 1 and ending on December 31.
Rollover
The plan-to-plan (another employer’s plan) or plan-to-trust Individual retirement account) transfer that you request when requesting a lump-sum distribution from the Plan. When you request a Rollover of your lump-sum distribution, you delay having to pay taxes until a future date. The Fund will execute a Rollover out of the Plan but does not accept Rollovers into the Plan.
Vested or Vesting
Your non-forfeitable right to Plan benefits. You are fully Vested as soon as you participate in the Fund.
For a full list of Fund definitions, see page 2 of our Summary Plan Description.