2016 Summary Annual Reports Now Online
The 2016 Summary Annual Reports (SARs) for the NRECA Group Benefits Program and the NRECA-sponsored 401(k) Pension Plan, along with the combined distribution instructions and acknowledgement form, are now available on the Employee Benefits website.
Distribute by December 15, 2017
The Employee Retirement Income Security Act (ERISA) requires employers to give plan participants and beneficiaries a summary of the annual Form 5500. The purpose of the SAR is to summarize each plan’s financial status. ERISA requires that participants and beneficiaries receive the SARs by December 15, 2017. Noncompliance can result in penalties of up to $147 per day.
As in the past, NRECA delivers the SARs to your cooperative via the Employee Benefits website. Distribution instructions, electronic distribution rules, and foreign language requirements are in the accompanying distribution instructions. You may provide your participants with electronic copies via email or paper copies; see the instructions for more details on when electronic distribution is permitted.
Acknowledge distribution by December 31, 2017
To fulfill your compliance obligations, you must fill out and return the distribution acknowledgement form at the end of the instructions document. Email or fax it to the benefits compliance team at the email address or fax number provided in the instructions. Keep the acknowledgement form in your Plan files.
ERISA’s electronic distribution rules and foreign language requirements apply to all ERISA-required disclosures, including the SAR. The Distributing Plan Documents page of the BA Guide has information about using electronic methods to distribute required notices, and information about the non-English language survey.
Who must receive the SAR
Provide copies of the Group Benefits Program SAR to the following participants and beneficiaries:
- Active and disabled employees (including those employees on a leave of absence),
- Retirees,
- Retained attorneys,
- Directors,
- COBRA beneficiaries, and
- Children covered under Qualified Medical Child Support Orders who are participating in or who have a benefit under the Group Benefits Program.
Furnish copies of the 401(k) Plan SAR to:
- Active and disabled employees (including those employees on a leave of absence) who are participating in or who have a benefit in the 401(k) Plan.
- NRECA will mail copies of the 401(k) Plan SAR to retirees, alternate payees and beneficiaries of deceased participants, separated participants with benefits and terminated-vested participants.
If you have questions, contact the benefits compliance team at 866.673.2299, option 7, or benefitscompliance@nreca.coop.