Class Action Lawsuit Filed Regarding 401(k) Pension Plan

On July 25, 2019, a law firm filed an ERISA class action lawsuit relating to the NRECA-sponsored 401(k) Pension Plan. NRECA learned of this law firm’s solicitation to cooperative plan participants earlier in January 2019 and member co-ops were made aware through an article in this publication.

NRECA and the Insurance and Financial Services (I&FS) Committee of NRECA’s board of directors are the named defendants. It is important to note that NRECA’s member co-ops are not defendants in the case.

The lawsuit generally alleges the plan’s fees are excessive. NRECA legal and external counsel are reviewing the lawsuit’s allegations and will vigorously defend the case on behalf of NRECA and the I&FS Committee.

Earlier today NRECA’s chief executive officer, Jim Matheson sent an email to co-op CEOs and rural electric statewide managers notifying them of the lawsuit and NRECA’s intention to oppose it.

If you or your counsel have legal questions surrounding this lawsuit, please reach out to NRECA’s deputy general counsel, Jim Burton, at 703.907.5835. Media inquiries should be directed to NRECA’s senior vice president of communications, Scott Peterson, at 703.907.5553.

We will continue to provide updates on the lawsuit as appropriate.