New 401(k) Pension Plan Distribution Option Kits

As of October 19, 2017, requests for distributions from 401(k) Pension Plan accounts will be fulfilled with a new distribution options kit.

The kit has been redesigned to be better organized and all-inclusive of the available distribution options and educational information. The kit contains the 401(k) Pension Plan Distribution Overview, which provides a high-level decision tree to navigate through the available options to one(s) that may best meet their needs, which include staying in the 401(k) Plan, taking some of the benefits now, or taking all of the benefits now. The educational overview provides information on available options as well as examples so the recipient can best understand how each option works. Once the individual is ready to make a distribution decision, they can complete and return the 401(k) Pension Plan Distribution Form at any time until the form expiration date. The form contains personalized account information and estimated annuity benefits. The use of checkboxes and iconography provides easy-to-follow steps for completion.

Additionally, the following documents are incorporated in to the form:

• State tax withholding information as well as the special tax notice as part of the distribution form.
• All available forms of payment, including intermittent withdrawals.

Take a look at this overview document to preview the updates and enhancements to the new distribution options kit.

Request process remains the same
The process for initiating a participant’s distribution remains the same. Benefits administrators can simply log on to the Employee Benefits website and go to the “Employee Administration” megamenu to process a Separation or Quasi-Retirement event. Participants who have separated service will initially receive the “Make the Right Move” brochure at their homes. This brochure will outline available distribution options and available resources for assistance. If a participant wishes to make a distribution, he or she will need to request the distribution options kit through your co-op’s benefits administrator or NRECA. If a participant does not take action and the option forms expire, their account balance will remain in the plan until they make a distribution decision or required minimum distributions commence.

Assistance is available
Plan participants who are quasi-retiring or terminating service and have questions about their distribution options should contact the Personal Investment & Retirement Consulting (PIRC) team. Members of this team can provide additional information and education around available options as well as aid participants in their broader retirement planning efforts. PIRC planners are available Monday through Friday, 8 am to 5:30 pm, Eastern time at 866.673.2299, option 6 or via email at pirc@nreca.coop.

If you have any questions about the new 401(k) Plan’s distribution options kit, please contact your field representative or the Member Contact Center at 866.673.2299 or via email at contactcenter@nreca.coop.