2020 RS Plan Statements Available

Annual benefit statements and the Financial Power RS newsletter for most Retirement Security (RS) Plan participants have been mailed and are now available on the NRECA Employee Benefits website. However, some participants with more complicated situations (such as those who have a qualified domestic relations order; or had participated in a prior plan that merged into the RS Plan; or may be affected by regulatory salary or benefit limits; or that have other benefit service history requiring manual calculations) can expect to receive their statements in the second quarter.

Due to the decrease in interest rates announced in late 2019, in most instances the 2020 lump sum amounts are expected to be higher than the 2019 lump sum amount (except for individuals who may see a decrease if they took a distribution in 2019 or those whose alternate payee took a similar distribution). However, a number of factors affect a lump sum payment, including pay, benefit service and age. This means that while the lump sum interest rate change might cause a lump sum amount to be higher in 2020 compared with 2019, other factors could offset some or all of that increase in the lump sum amount.

The 2020 issue of the Financial Power RS newsletter includes articles to educate participants about their retirement benefits and the Setting Every Community Up for Retirement Enhancement (SECURE) Act.

A sample email for RS Plan participants announcing the availability of 2020 RS Plan statements is available for your use.

The “A Tour of Your RS Plan Statement” and “Weighing Your RS Plan Payment Options” fliers are available to participants on the Employee Benefits website at cooperative.com > My Benefits > Education & Resources > Retirement Plan Documents. Participants can filter documents by “Retirement Security Plan” or search by the title of the flier. These fliers explain the data and information on the annual statement, how lump sums are determined and how changes in interest rates may affect the value of estimated benefits.

For specific questions around lump sum benefit amounts or RS Plan benefits, please contact your local field representative.