NRECA Employee Benefits Weekly

Restated SPDs for 2020 Now Available for CBA-administered 125 Plans and HRA Plans

Posted on Posted in Tax-advantaged Accounts

Will your cooperative offer the CBA-administered 125 Plan or a health reimbursement arrangement (HRA) plan in 2020? If so, you’ll need to take an important additional step this year: distributing updated summary plan descriptions (SPDs) to your participating employees and/or retirees.

Sample SPDs for the 125 Plan, HRA and retiree HRA plans are now available online for your co-op to use. These SPDs will be effective January 1, 2020.

Instructions for preparing and distributing the restated 2020 SPDs are also available online.

Where to find sample SPDs
The updated sample SPDs and instructions can be downloaded from the NRECA Employee Benefits website. Go to BA Guide > Tax-Advantaged Accounts > 125 Plan or HRA and scroll down to the Resources for Benefits Administrators section on either page.

Here’s what you need to do:

  1. Download the sample restated SPD(s) that apply to your co-op’s plans.
  2. Review and revise the SPDs to reflect your co-op’s specific plan choices. The restated SPDs will include plan design options for you to select as necessary and instructions on how to include the language that describes your plan’s choices.
  3. Make sure the revised SPDs are reviewed by your co-op’s legal counsel.
  4. Distribute the SPDs to plan participants. ERISA rules give co-ops until July 29, 2020, for distribution; however, the sooner participants receive them, the better.

If you are not making changes to your plans for 2020, you still need to distribute the SPDs to your participants, and for 125 plans, submit your 2020 pay dates to CBA. For any questions about 125 Plan or HRA plans, please contact CBA at 866.673.2299 and choose option 1, then 4, or email cba.fsa.hra@nreca.coop.

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