Reminder: Request 2021 Retirement Plan Changes Now

If you’re thinking of amending your NRECA-sponsored Retirement Security (RS) Plan or 401(k) Pension Plan in the near future, contact your NRECA field representative now to start discussing the process.

For simple changes, contact NRECA at least 60 days before the desired effective date. Adding the Roth option, loan provisions, or in-service or hardship distributions are examples of simple changes.

For more complex changes, contact NRECA at least 120 days before your desired effective date. Downgrading plan provisions, adding a new hire plan or expanding excluded classes are examples of complex plan changes that may require an RS Plan proposal.

All changes require a board resolution, and your cooperative also must review and approve a new adoption agreement (or an addendum) reflecting the change. Some changes require preliminary proposals, customized benefit illustrations, or advance participant notices before the effective date. Once the change is clearly defined, NRECA reviews it and provides guidance on the impact to your plan’s nondiscrimination testing.

Here is an example of the timeline to implement a simple plan change for January 1, 2021.

By mid-October, contact your field representative to evaluate objectives. NRECA will prepare preliminary proposals and explain the testing impact when required.

In November, NRECA will deliver a new plan adoption agreement or addendum, a sample board resolution, and additional required notices, if applicable. Your co-op must execute and return the signed adoption agreement or addendum and board resolution to NRECA by November 30, 2020.

In December, NRECA conducts its final legal and compliance review, approves the documents and makes any administrative accommodations necessary to implement the change.

SERPs
If you are considering a special early retirement program (SERP) for 2020, contact your field representative by October 1, 2020. Because SERPs cannot cross over calendar years, proposals, board action, employee communications and the start of the window period must all occur by November 15, 2020. Fully adopting a SERP is typically a three-month process. SERPs started later in October may need to be deferred to the first quarter of 2021 depending on the circumstances within the SERP. If you have questions about SERPS, contact the benefits compliance team at 866.673.2299, option 7, or pension.compliance@nreca.coop.