Solicitation Letter Received by Some Participants in the 401(k) Plan

NRECA has been made aware of a solicitation letter received by some 401(k) Pension Plan participants in Alaska, Oregon, California, Washington, Colorado, New Mexico and Hawaii.

The letters imply that there is a pending allegation, claim or action relating to the NRECA-sponsored 401(k) Plan. As far as NRECA is aware, there is no pending action, claim, government investigation, or allegation against NRECA or the 401(k) Plan by any private party, the Department of Labor, or the Internal Revenue Service. If NRECA receives information about what the letter calls “potential claims against [NRECA] relating to the management of the 401(k) Pension Plan…,” it will keep member cooperatives informed.

Letters of this type are typically sent by plaintiffs’ firms in an attempt to solicit business. The letters note that they constitute “advertising material.” NRECA takes all allegations seriously. It also concerns NRECA that the law firm is sending mail to the home addresses of co-op employees. We don’t know where the law firm obtained the addresses, but we are certain they did not obtain those addresses from NRECA or the plan.

The NRECA 401(k) Plan is managed by knowledgeable and experienced employees, supported by independent professional advisors. They have a fiduciary duty to administer the plan for the benefit of its participants and beneficiaries. These individuals take their responsibilities very seriously to administer the plan in accordance with its terms and diligently comply with all applicable rules and regulations.

NRECA will continue to monitor the situation and keep you informed in the event of any material developments. There is no action that cooperatives or employees need to take, other than to be aware that the law firm is sending advertisements to employees. But please keep NRECA informed.

NRECA would like to collect as many letters as possible. If you become aware of your co-op’s employees receiving letters of this nature, please email a copy of the letter to 401kLetters@nreca.coop. If you, or your employees, have any questions, reach out to NRECA’s Member Contact Center at 866.673.2299.