2019 Summary Annual Reports Now Online
The 2019 summary annual reports (SARs) for the NRECA Group Benefits Program and the NRECA-sponsored 401(k) Pension Plan, along with the distribution acknowledgement form, are now available on the Employee Benefits website. Give the applicable SAR to participants in your cooperative’s plan(s) no later than December 15, 2020. Noncompliance can result in penalties of up to $159 per day.
The Employee Retirement Income Security Act (ERISA) requires employers to give the SAR to plan participants and beneficiaries. The SAR is a summary of the annual Form 5500 that shows the financial status of the plans.
Download the SAR from the Employee Benefits website. Providing a paper copy is always acceptable. Follow the distribution instructions noting that electronic distribution rules are different for group benefit plans and retirement plans. If your co-op’s business operations have been negatively impacted by the pandemic, check the COVID-19 page on timeline extensions to find out if your co-op can use certain temporary electronic delivery methods.
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 (custodial parents or guardians in the case of minor children) covered under qualified medical child support orders who are participating in or who have a benefit under the NRECA Group Benefits Program.
Give 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 mails copies of the 401(k) Plan SAR to those participants who are required to receive the SAR but are no longer employed, retirees with account balances, alternate payees, and beneficiaries of deceased and terminated vested participants.
Finally, by December 31, 2020, fill out the distribution acknowledgement form (found on the Employee Benefits website) to create a permanent record that you distributed the document as required. Email or fax the completed form to the benefits compliance team and keep the original in your plan files. If you have questions about the SAR, contact the benefits compliance team at 866.673.2299, option 7, or pensioncompliance@nreca.coop.