Steps to Make a Retirement Plan Change for 2027

If you’re thinking of amending your Retirement Security (RS) Plan or 401(k) Pension Plan early in 2027 (especially if your desired effective date is January 1), contact your NRECA field representative now to start discussing the process and timing.

A change effective January 1, 2027 will follow this general timeline:

• First, contact your field representative to evaluate objectives. NRECA will prepare preliminary proposals and explain the testing impact when required.

Changes that are considered an upgrade (such as adding loan provisions, in-service withdrawals or hardship distributions to the 401(k) Plan) must be received by October 30, 2026 to allow NRECA sufficient time for processing so that cooperatives can sign board resolutions and adoption agreements.

Downgrading plan provisions, adding a new hire plan, or expanding excluded classes are examples of more complex plan changes that often require an RS Plan proposal, customized benefit illustrations, and advance participant notices before the effective date. Once the change is defined, NRECA will explain how the change may affect your plan’s nondiscrimination testing. Request these types of changes by October 16, 2026.

All plan changes require a board resolution, and your co-op also must review and approve a new adoption agreement (or an addendum) reflecting the change.

• November: NRECA will deliver a new plan adoption agreement or addendum, a sample board resolution and additional required notices, if applicable. Your co-op must execute and return the signed adoption agreement or addendum and board resolution to NRECA by November 13, 2026 (November 30 for co-ops with fewer than 100 participants).
• December: NRECA conducts final legal and compliance reviews, approves the documents, and makes any administrative accommodations necessary to implement the change.
• January 1: The change is effective.

SERPs
If you are still considering a special early retirement program (SERP) for 2026, contact your field representative no later than October 9, 2026.

NRECA’s team will consult with you on plan design and implementation, actuarial calculations for costs and benefits payable, and regulatory guidance. Because SERPs cannot cross over calendar years, proposals, board action, employee communications and the start of the window period must all occur by November 16, 2026. Fully adopting a SERP is typically a three-month process. SERPs started later in October may need to be deferred to the first quarter of 2027 depending on the circumstances. Also note that single cash payment factors needed for 2027 SERP requests are not available until late October; the earliest payout for a 2027 SERP is April 1, 2027.

If you have questions about SERPs, contact benefits compliance at 866.673.2299, option 7, or pension.compliance@nreca.coop.

For other questions related to plan changes or adding the RS Plan’s cash balance benefit formula, contact your field representative.