New Actuarial Factors for Pre-55 RS Plan Benefit Computations

As part of its Retirement Security (RS) Plan sponsorship and plan administration responsibilities, NRECA routinely evaluates regulatory requirements, industry benchmarks, applicable actuarial factors, and mortality table updates. This ongoing evaluation ensures the RS Plan remains in compliance with federal requirements and adheres to appropriate industry standards.

Early retirement adjustment factors are used to reduce a participant’s RS Plan annuity benefit if that benefit begins prior to the participant’s normal retirement age, as defined by your co-op.

The factors used to calculate annuity benefits for participants under the age of 55 will be updated effective January 1, 2026. No one’s benefit will be reduced because of this change. These factors will be added to NRECA’s systems by June 23 to more accurately calculate RS Plan benefit estimates for early retirements occurring in 2026 and later.

The factors used to calculate annuity benefits commencing between age 55 and normal retirement date are not changing. Benefits payable before age 55 but after reaching normal retirement under a 30-year plan are also not affected.

This specific change is not expected to have any effect on plan billing rates paid by co-ops. However, the normal annual review process, along with an individual co-op’s participant demographic data, may positively or negatively impact plan rates.

Any questions should be directed to your field representative.