401(k) Pension Plan: Change Notice and Disclosure Mailing

This week NRECA is mailing important 401(k) Pension Plan notices. The notices are being sent to all cooperative employees, plan participants and beneficiaries who are eligible to make or change investment elections in the 401(k) Plan. Federal regulations require 401(k) plans to distribute disclosure notices to these individuals. Included in the mailing are the following:

1. Participant Fees Annual Disclosure Notice providing general plan information, as well as information on administrative and individual expenses, investment options, fund performance and fees as of December 31, 2017;
2. Target Date Portfolios: The Qualified Default Investment Alternative notice informing participants who have not yet made active investment selections that their balance, or a portion of their balance, as well as ongoing contributions will default (or have been defaulted) into the target date portfolio (TDP) option(s) closest to the year of their target retirement, assuming a retirement date age of 65. The notice also provides a brief overview of the TDPs as well as instructions for directing their 401(k) Plan investment allocations and future contributions;
3. Target Date Portfolios summary detailing relative risk, sector weightings, investment objectives and expense ratios for each TDP as of June 30, 2018; and
4. Small Company Stock Fund Change Notice notifying participants that effective November 30, 2018, State Street Global Advisors (SSGA) Trust Company will be added as an investment manager to the Small Company Stock Fund in the 401(k) Plan. SSGA seeks an investment return that approximates as closely as practicable the performance of the Russell 2000^® Index, a commonly used index of small company stocks and also the benchmark index for the fund. RE Advisers Corporation, a wholly-owned subsidiary of NRECA, will also continue as an investment manager of the fund using an active investment management strategy. SSGA will initially manage approximately 10% of fund assets, with the remainder managed by RE Advisers Corporation. The SSGA strategy will be implemented through Q1 2019.

Ongoing Distribution
Once your co-op’s benefits administrator enrolls a new employee, that individual will receive copies of these notices in their 401(k) Plan enrollment confirmation kits.

Copies of the annual disclosure notices are available on the Employee Benefits website under Education & Resources > Retirement Plan Documents. The change notice and detailed investment information including fund profiles and holdings along with the updated 401(k) Pension Plan Glossary of Investment Terms are also available on cooperative.com/401kinvestments.

If you have questions about these notices, please contact your field representative or NRECA’s Member Contact Center at 866.673.2299, or via email at contactcenter@nreca.coop. Representatives are available from 7 am to 7 pm, Central time. Co-op employees with questions about their investment strategy should contact NRECA’s Personal Investment & Retirement Consulting team at 866.673.2299, option 6 or via email at pirc@nreca.coop.