Update to QPSA Notification Process

In an effort to reduce administrative burdens on our member cooperatives, effective November 2022, qualified pre-survivor annuity (QPSA) notices previously sent to benefits administrators for distribution to impacted 401(k) Pension Plan and Retirement Security Plan participants, will now be directly sent to those participants by NRECA.

Benefits administrators will receive notification via email of the notice being sent and the identities of the participants it is being sent to at their co-op.

The average annual population impacted by this notification is approximately ten individuals or fewer.

Background
Annually, NRECA’s Retirement Plan Distributions team identifies retirement plan participants who previously designated a non-spouse beneficiary before they attained age 35, referred to as a QPSA. The QPSA becomes invalid on the first of the plan year in which the participant attains age 35.

The team sends a letter prior to the year the QPSA becomes invalid to advise the participant and confirm a new designation is required to maintain the designation currently in place or, if no action is taken, their spouse becomes the primary beneficiary by default, replacing the individual previously named.

Questions
If you, or your impacted participants, have questions about the notification, please contact a member of our Retirement Plan Distributions team at 866.673.2299, option 5.