New Brochures Explain RS Plan and 401(k) Plan Distribution Options

Remind your employees to make sure they understand all their options before making distribution decisions.

When your employees separate from service, they have important decisions to make about their Retirement Security (RS) and/or 401(k) Pension Plan benefits. So it’s important that they have the information they need to fully understand their choices.

Two new brochures that help separating employees compare and consider their options will be included in distribution option form packets from NRECA starting this week. They contain updated information about the individual cost-of-living adjustment (COLA) feature now available in both plans, as well as the cash refund annuity feature added in 2011. The brochures are:

• “Intermittent Withdrawals and Annuities: A Closer Look” will be provided with 401(k) Plan option forms only. It explains how these two distribution options work in the 401(k) Plan; discusses the benefits and risks of each option; and summarizes key features. To order additional copies, request pub number RMBR13069 from the Member Contact Center.

• “Your Distribution Options Explained” will be provided with both RS Plan and 401(k) Plan option forms. A table compares the key distribution options in both plans—annuities, intermittent withdrawals, direct rollover and cash payment—by asking questions about each option. For example, “How much lifetime income protection will I receive?” or “How will each option affect my tax liability?” This brochure replaces a previous version that covered 401(k) Plan distribution options only. To order additional copies, request pub number RMBR13024 from the Member Contact Center.

To place orders or ask questions, contact the Member Contact Center at 1.866.673.2299 or at contactcenter@nreca.coop.