Remaining 2014 RS Plan Invoices and 2015 True-up

The Retirement Security (RS) Plan continues to operate on an eight-month accelerated billing cycle. As a result, employer contributions are not collected during September through December. During these months, the RS Plan invoice will show an adjusted employer rate of 0.000% and an employer contribution for each participant of $0.00. The invoice will still show rates and amounts for the administrative fee for your cooperative and employee contributions (if applicable for your co-op).

NRECA will again implement a “true-up” during the first part of 2015 to reconcile differences between 8-month accelerated billing and 12-month standard billing for 2014. The differences arise because of co-op employees leaving or joining the RS Plan during the year. Due to partial-year participation, contributions could be different under 12-month billing as compared with eight-month billing.

New true-up projection on invoices
Beginning in October, your RS Plan invoice will feature an “Accelerated Billing True-Up Projection” report that will provide an estimate of how the true-up will affect your co-op. This report is for information only. It is not a bill and co-ops should not pay any amounts based on the true-up projections. Until the actual true-up amount is determined in early 2015, only the administrative fee and employee contributions (if any) should be paid.

Please note: Co-ops using W-2 salary reporting in their RS Plan benefit formulas (and therefore for billing purposes) will not receive a projection in their invoices. Each co-op using W-2 salary reporting will receive individual information after it has submitted its annual W-2 information to NRECA so that a calculation can be run for the co-op.

If you have questions about RS Plan invoices or the true-up process, contact your field representative. You also can contact the Member Contact Center at 1.866.673.2299 or contactcenter@nreca.coop.