Update from the Board of Trustees v March 2014 YMCA Retirement Fund AYR LIAISON REPORT February Board Meeting RICHARD A. COLLATO AYR LIAISON The Fund’s Board of Trustees held its quarterly meeting in Naples, FL on February 27 - 28, 2014. All 16 Trustees were in attendance and all five committees met. Annual Strategy Session At this year’s Annual Strategy Session, the Board focused on the Fund’s three Guiding Principles, which are to:  Ensure an adequate funding level to perpetuate the safety and longevity of the plans  Maintain attractive benefits by providing competitive interest credits to Participants’ account balances, along with a competitive annuity conversion interest rate to Retirees as a reward for a career of service to the YMCA The YMCA Retirement Fund’s Board appointed Richard A. Collato to the position of AYR Liaison in 2011. A trustee of the Fund from 1999 - 2010, Mr. Collato was vice chairman of the board, served on the Compensation and Investment Committees and chaired the Governance Committee. He was president and CEO of the YMCA of San Diego County from 1981 - 2010. Help for Retirees The Fund’s Retiree Emergency Assistance Program provides grants to help YMCA retirees in financial crisis. This program is supported by proceeds from the Harold C. Smith Award Dinner. Each grant is for a maximum of $2,000 and recipients are eligible for only one grant per calendar year. Applications can be found at www.yretirement.org or send an email to [email protected] Upon the recommendation of the Governance Committee, the Board elected and welcomed its newest trustee, Andrew A. Roberts, president of the YMCA of Central Ohio. The Investment and Benefits/Operations Committees convened a joint session for a detailed review of asset allocation. The Audit Committee agreed to engage KPMG as the independent auditors after reviewing their FY’14 Audit Plan and fees. The Compensation Committee engaged Towers Watson as the independent consultant, and discussed midyear staff performance reviews as well as incentive compensation.  Strive to maximize the confidence and satisfaction of our Participants, Retirees and YMCAs as employers Protection During Volatile Times  The YRF was underfunded for 61 months: September 2008 – September 2013  Not one retiree annuity payment was missed  3% compound interest was credited to Participant accounts  Participant account balances never went down  New annuities issued to 4,200 Retirees at the book value of their account balances, not at the lower market value Serving 100,000 lives Active Participants 54,000 Inactive Participants 29,000 Retirees 12,000 YMCAs 840 The Last Word Retiree Survey 1,500 Retirees responded to the Fund’s annual e-survey. Nearly 100% said they are satisfied with the Fund’s services and confident in the Fund’s management of their retirement savings.