2015 RS Plan Billing and 2016 True-up Projections

Because the Retirement Security (RS) Plan continues to operate on an eight-month accelerated billing cycle, employer trust contributions are not invoiced from September through December. During these months, your cooperative’s RS Plan invoice will show an adjusted employer rate of 0.000% and an employer contribution for each participant of $0.00. The invoices will reflect only the rates and amounts for your co-op’s administrative fee and for employee contributions (if applicable) both of which are billed on a 12-month cycle.

Accelerated billing true-up projections
Between October and December, each invoice for co-ops with a compensation definition of base salary will contain projected “true-up” amounts. The projection is included so that you can reconcile differences between eight-month accelerated billing and 12-month standard billing for 2015. The differences arise if, for example, a co-op employee leaves or joins the RS Plan during the course of the year. Due to partial-year plan participation, contributions could be different under 12-month billing as compared with eight-month billing.

The true-up projections are based on the participant data on file as of the invoice date and may change each month. This information is included for informational purposes only. It is not a bill and co-ops should not pay any amounts or apply any credits based on the true-up projections. The actual true-up amount is calculated and billed in early 2016, so between October and December, co-ops should pay only the monthly administrative fee and employee contributions (if any).

 

Accelerated RS Plan Invoices – What to Expect

Timing	Employer Trust Contributions	Employee Contributions	Administrative Fees	True-up Projections
September	No	Yes	Yes	No
October	No	Yes	Yes	Yes
November	No	Yes	Yes	Yes
December	No	Yes	Yes	Yes

 

If you need to make a self-adjustment to your co-op’s payment that involves an employer contribution, you will be unable to do so until January (assuming all RS invoices through August have been paid). Adjustments to administrative fees and/or employee contributions can continue to be made.

Co-ops that have full salary as the definition of compensation for their RS Plan will not receive true-up projections between October and December, although their billing will still be accelerated. Instead, they will receive their true-up amount after they have sent annual Form W-2 data to NRECA in early 2016.

If you have questions about RS Plan invoices or the true-up process, contact your field representative. You also can contact the Member Contact Center at 866.673.2299 or contactcenter@nreca.coop.