2023 401(k) Plan Employer-paid Expense Estimates

Each year, NRECA invoices each participating cooperative directly for its 401(k) Pension Plan employer-paid expenses. To help co-ops plan for their 2023 expenses, an estimate of this expense is prepared for each co-op by subgroup. An email containing co-op-specific estimates will be sent the week of September 26, 2022 to CEOs and primary benefits administrators.

For 2023, the estimated employer-paid expense rate will be 0.1193%. While the basis for 2023’s estimated expense rate has not changed, due to changes in asset values, the expression of that expense is a slight increase from 2022’s rate.  This increase is attributed to the overall reduction of active assets in the plan during the first six months of 2022, which provides the basis for the calculation. 

Invoices in late December
The estimates for each co-op are for the full year and are based on a calculation using active employees’ account balances as of July 1, 2022. Actual 2023 invoices will be provided on the NRECA Employee Benefits website to those with benefits administrator access in late December 2022.

For more information about your co-op’s estimated 401(k) Plan employer expense for 2023, contact your field representative or the Member Contact Center at 866.673.2299 or contactcenter@nreca.coop.