401(k) Plan Safe Harbor Notices Now Available

On October 28, if your cooperative offers the NRECA-sponsored 401(k) Pension Plan and has a Safe Harbor design that requires an annual notice, you will receive a Message Center notification linking to the 2021 notice. Download the notice and give it to plan participants by November 30 so that they can make a decision about 2021 plan participation. Then acknowledge distribution through the Employee Benefits website.

Remember that under the SECURE Act, plans that meet the Safe Harbor requirement solely by using an employer base contribution formula no longer need to give employees a Safe Harbor notice. Co-ops in this group received an email from the benefits compliance team on October 23. 

Before using an electronic delivery method, review the electronic distribution rules to see if your employees meet the requirements to receive their notices this way. Temporary electronic distribution relief may be available if your co-op has been negatively affected by the pandemic. Check the Extended Benefit Plan Timelines on the COVID-19 benefit extension page for benefits administrators for detailed requirements.

If you have questions about the Safe Harbor provision, contact the benefits compliance team at 866.673.2299, option 7, or email us at pension.compliance@nreca.coop.