2018 RS Plan Billing and 2019 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 shows an adjusted employer rate of 0.000% and an employer contribution for each participant of $0.00. The invoices 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 of this year, 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 2018. 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 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 based on the true-up projections. The actual true-up amount is calculated and billed in early 2019, 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

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 Plan invoices through August have been paid). You can continue to make adjustments to administrative fees and/or employee contributions.

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 be billed for their true-up amount after they have sent annual Form W-2 data to NRECA in early 2019.

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.