Participants Urged to Switch to Direct Deposit for 125 Plan and HRA Reimbursements

If there was ever a good time to receive payments electronically, rather than getting a paper check and taking it to the bank, that time is now.

One out of five cooperative employees in a Cooperative Benefit Administrators (CBA)-administered 125 plan or health reimbursement arrangement (HRA) plan is still getting reimbursed with paper checks they receive in the mail. Starting this week, CBA will reach out to those employees to encourage them to enroll in direct deposit—an easier, faster and safer way to get their money.

There’s a time-sensitive element to this message: With health and government officials urging the public to minimize errands and social contact, direct deposit can be safer in preventing further spread of COVID-19.

But even in “normal” times, direct deposit is a more secure method of receiving payments—and it’s typically faster, too.

Plan participants who have an email address on file with CBA will receive an email that directs them to the NRECA Employee Benefits website, where they can update their payment method to direct deposit.

For those with no email address on file, we’ll send a paper letter, along with instructions for switching to direct deposit either online or by mail.

Please note: At this time, participants do NOT need to send a canceled check with the form in order to enroll in direct deposit. They can simply complete the form and return it as indicated.

The direct deposit form can also be found online here.