2023 Summary Annual Reports Now Online – NRECA Employee Benefits Weekly

2023 summary annual reports (SARs) for the NRECA Group Benefits Program and the 401(k) Pension Plan are now available on the Employee Benefits website. Give the SAR to participants in your cooperative’s plan(s) no later than December 15, 2024.

The Employee Retirement Income Security Act (ERISA) requires employers to give participants and beneficiaries a copy of the SAR, which is a summary of Form 5500. Form 5500 shows the financial status of the plans and must be filed annually with the Department of Labor. Failure to provide the SAR to plan participants can result in penalties of up to $110 per day.

First, download the SAR from the Employee Benefits website. Review the online distribution instructions, noting that there are different electronic distribution rules for group benefit plans and retirement plans. Paper copies are always acceptable; however, you may also use electronic methods in certain circumstances. The distribution instructions on the BA Guide also list who should receive a copy of each SAR.

Distribute the Group Benefits Program SAR to these participants and beneficiaries:

Active and disabled employees (including employees on a leave of absence)
Retirees
Retained attorneys
Directors
COBRA beneficiaries
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 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 a copy to former employees, retirees with account balances, alternate payees, and beneficiaries of deceased and terminated vested participants.

Finally, before December 31, 2024, fill out, and return the distribution acknowledgement form to create a permanent record that your co-op met the requirements. 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 pension.compliance@nreca.coop.