Retirement Plan Changes Effective On or Before May 1 Needed by January 31

Effective July 1, 2017, the NRECA Retirement Security (RS) Plan and 401(k) Pension Plan will be restated according to the five-year schedule previously outlined by the IRS.

As 2017 gets underway, remember these key points about the upcoming restatement.

• Plan changes during 2017 are separate from the restatement and require their own adoption agreement, board resolution and (in certain cases) participant notices.
• Plan changes effective on or before May 1, 2017 will be reflected in the restated adoption agreements, which will be released in early July.

If your cooperative wants to make a change during 2017:

1. Consider the hold period: no changes will be dated June 1 or July 1 while the restatements are mapped to the restated adoption agreements.
2. Request changes effective May 1 or sooner by January 31, 2017.
3. Expect changes received after January 31 to be effective after the hold period.
4. Changes effective after May 1 will modify your co-op’s restated adoption agreements. Changes effective August 1 or later will be approved once NRECA receives—in good order—your co-op’s documents adopting the restated plans.
5. Co-ops with business needs (e.g., union contracts) that require a June 1 or July 1 effective date should contact their field representative to discuss the change.

As a reminder, all co-ops participating in the RS and 401(k) Plans should plan for the following dates:

• As soon as possible, identify a date between mid-June and September 30 when your co-op’s board of directors can adopt the restated plans.
• In late May, NRECA will provide a sample restatement board resolution for your use. All co-ops must adopt the restated RS and 401(k) Plans.
• In July 2017, download your co-op’s restated plan adoption agreement(s).
• By October 31, 2017, review, sign, and return both the original adoption agreement(s) and the sealed board resolution to NRECA. Remember that no future plan changes may be executed until your co-op adopts the restated plans.

You can also find detailed restatement information on the Employee Benefits website.

For more information about the process of changing your retirement plan provisions, see the article titled 7 Steps to Retirement Plan Changes in September’s Benefits Bulletin.

Contact your field representative or benefits compliance with questions about either the restatements or about making a provision change to your NRECA-sponsored retirement plans.