Mid-Year Update to Single Cash Payment Interest Rate Assumptions Used in RS Plan Benefit Estimate Calculations for 2023 and Beyond

Based on member feedback and to provide forward-looking benefit estimate results that better reflect the current interest rate environment, NRECA is making a mid-year update to the interest rate assumptions used to estimate the value of single cash payments (also referred to as lump sums) on RS Plan estimates with dates in 2023 and beyond. Interest rates used for 2022 event date estimates will not be changing.

This mid-year rate update will now take place each year as part of our annual rate update process to aid participants who are evaluating their timeline for retirement by providing benefit estimates that better reflect the current interest rate environment. NRECA will continue to update the actual interest rates annually each December for calculations used to determine the coming year’s single cash payments.

On August 8, 2022, NRECA’s system was enhanced to reflect the updated interest rate assumptions for RS Plan benefit estimates dated for 2023 and beyond. Benefits administrators are now able to run RS Plan estimates on behalf of participants using the new estimated rate assumptions through the NRECA Employee Benefits website.

If you have any questions regarding this enhancement to the RS Plan estimate request process, please contact your field representative or the Member Contact Center at 866.673.2299. Members of the Personal Investment & Retirement Consulting team are available to assist plan participants with their retirement planning and may also assist participants in obtaining updated RS Plan estimates.