Prepare Now for 2022 Retirement Plan Changes

If you’re thinking of amending your Retirement Security (RS) Plan or 401(k) Pension Plan between now and mid-2022, contact your NRECA field representative soon to start discussing the process. Depending on the type and timing of the change, you’ll want to coordinate the effective date with the retirement plan restatements that occur on July 1, 2022.

To accommodate restatement processing for all co-ops, no plan changes will be effective June 1 or July 1, 2022 (exceptions are noted below). May 1 is the last effective date before the restatements and August 1 is the first available effective date after the restatements.

If your co-op will not make retirement plan provision changes during 2022, take note of these future restatement-related tasks:

• May 2022: download a sample restatement board resolution
  • July 2022: download and review your co-op’s restated plan adoption agreements
  • By September 30, 2022: have your board adopt the restated plans
  • By October 31, 2022: Review, sign, and return original adoption agreements and the sealed board resolution to NRECA

• In December or January, download the electronic compliance calendar to populate reminders for each of these upcoming tasks.
• Watch future editions of both NRECA Employee Benefits Weekly and Benefits Bulletin for alerts and instructions as restatement deadlines and tasks approach.

If your co-op will make retirement plan provision changes during 2022:

• The restatement tasks listed above are still required.
• Begin working with NRECA staff to plan and implement 2022 plan change(s), especially if they will be effective on or before May 1, 2022. These tasks are separate from and in addition to the restatement and require their own adoption agreement, board resolution and, in the case of certain complex changes requiring an RS Plan proposal, participant notices.
  • Changes up to and including May 1 will be reflected in your co-op’s restatement documents.
  • Changes dated August 1, 2022 or later will modify your co-op’s restated plan terms.
  • For business needs requiring a June 1 or July 1 change (typically for collectively bargained plans), contact your field representative to discuss your situation and needs.

Finally, adding the RS Plan’s new cash balance feature on the earliest possible date (July 1, 2022) is separate from the restatements but follows the same administrative timeline applicable to plan changes effective May 1, 2022 (before the restatement hold period). If your co-op is considering adopting the cash balance feature on July 1, 2022, speak with your field representative no later than January 1, 2022.

If you have questions about the restatement process or about adding cash balance, contact your field representative or NRECA’s benefits compliance team at 866.673.2299, option 7, or pension.compliance@nreca.coop.