2018 RS Statements Available Next Week
Annual benefit statements and the Financial Power RS newsletter for participants in the Retirement Security (RS) Plan will be available next week. Notable elements in the 2018 statements include the following:
- For the standard RS formula benefits, current and projected annuity benefits are shown as a 50% joint and spouse annuity (which is the normal form of payment for married participants). However, because these numbers do not take into account the spouse’s date of birth, they are just estimates. Depending on the spouse’s date of birth, the actual annuity amounts could be higher.
- For Age 60, Age 62, and Age 65 plans, the normal retirement date listed on the statement is the first of the month immediately following the participant’s normal retirement age. For example, if a participant in a plan with a normal retirement age of 62 reaches 62 on May 15, his or her normal retirement date is June 1 of that year (although he or she would still be able to quasi-retire as early as May 15). In previous years, the statements did not indicate the normal retirement age as the first of the next month.
- Statements for participants in 30-year plans who were hired on or before January 1, 2017, will display a normal retirement date that reflects 30 years of service. Statements for participants in 30-year plans who are new hires after January 1, 2017 (and who have no prior benefit service in a 30-year plan), will display a normal retirement date of 62.
NRECA has posted sample language on the Employee Benefits website for benefits administrators to use in letting employees know that their statements are being mailed and posted online next week.