Reminder: 2020 Summary Annual Reports Due by December 15
December 15 is the deadline to distribute the 2020 Group Benefits Program and 401(k) Pension Plan summary annual reports (SAR) to plan participants and beneficiaries. If you haven’t already done so, download a copy from the Summary Annual Report page of the Employee Benefits website and distribute the documents right away.
A SAR is a narrative summary of Form 5500, which is the annual financial report that must be filed every year with the Internal Revenue Service and the Department of Labor. Under Employee Retirement Income Security Act (ERISA), plan participants and beneficiaries must receive the SAR no later than December 15 when NRECA has filed Form 5500 by October 15.
Give copies of the Group Benefits Program SAR to:
- Active and disabled employees (including those employees on a leave of absence),
- Retirees,
- Retained attorneys,
- Directors,
- COBRA beneficiaries, and
- Children (custodial parents or guardians in the case of minor children) covered under qualified medical child support orders who are participating in or who have a benefit under the NRECA Group Benefits Program.
Give copies of the 401(k) Plan SAR to active and disabled employees (including those employees on a leave of absence) who are participating in or who have a benefit in the 401(k) Plan. NRECA mails the 401(k) Plan SAR to terminated employees and retirees with account balances, alternate payees, and beneficiaries of deceased and terminated vested participants.
Follow the online distribution instructions. Remember that different electronic distribution rules apply to the group benefit plans and the retirement plans. If your cooperative’s business operations have been negatively impacted by the pandemic, check the COVID-19 page on timeline extensions to find out if your co-op can use certain temporary electronic delivery methods.
Acknowledge distribution
Finally, acknowledge distribution by December 31, 2021. Use the 2020 SAR distribution acknowledgement form. This creates a permanent record that you distributed the document as required. Email or fax the completed form to the benefits compliance team and keep the original in your plan files.
If you have questions about the SAR, contact the benefits compliance team at 866.673.2299, option 7, or pension.compliance@nreca.coop.