Restatement Reminders

The Retirement Security (RS) Plan and 401(k) Pension Plan follow a five-year restatement schedule outlined by the IRS. Effective July 1, 2022, the plans will be restated according to this schedule.

The purpose of the restatement is to update the plan document, adoption agreement and summary plan description to include all plan design and governing law changes that have occurred since the last restatement. This process does not change your cooperative’s existing provisions; instead, co-ops review, approve and re-adopt a reformatted version of existing provisions.

As the July 1 restatement date approaches, here’s what to expect next.

• April 1 is the due date for paperwork supporting all May 1, 2022 plan changes.
• During April, NRECA will provide a sample restatement board resolution for use in adopting the restated plans. Remember that all plan changes effective during 2022 are separate from the restatement and require separate paperwork.
• May 1 is the last effective date for plan changes before the restatement hold period. Plan changes effective on or before May 1 will be reflected in your restated adoption agreements.
• June 1 and July 1 are the temporary hold period so that plan provisions can be mapped to updated adoption agreements. Contact your field representative if you have business needs (e.g., union contracts) that require a June 1 or July 1 effective date.
• July 1 is the first available date to add the RS Plan’s cash balance feature. The process for adding this feature is separate from the restatement.
• During July, download your co-op’s restated adoption agreement(s). A Message Center alert will be sent when they are available.
• August 1 is the first effective date for plan changes following the restatement. Change paperwork received on April 1 or later will modify your co-op’s restated plan terms.
• September 30 is the deadline for your co-op’s board of directors to adopt the restated plans.
• October 31 is the deadline to return adoption agreement(s) and the sealed board resolution to NRECA. Remember that no plan changes may be executed until your co-op adopts the restated plans.

You can also find detailed and up to date restatement information on the Restatements page of the Employee Benefits website, including a timeline, answers to frequently asked questions, and detailed descriptions of the milestones shown above. For more information about the process of changing your retirement plan provisions, contact your field representative. Contact the benefits compliance team with questions about the restatements at 866.673.2299, option 7, or send an email to pension.compliance@nreca.coop.