Retirement Plan Summary of Material Modifications Available June 22

If your cooperative offers either the NRECA 401(k) Pension Plan or the NRECA Retirement Security (RS) Plan with the optional death benefit feature, then during the week of June 21, you will receive a Message Center alert directing you to a summary of material modifications (SMM) for each plan.

Deliver the SMM to participants and beneficiaries in the plan(s), then acknowledge distribution as soon as possible, but not later than July 29, 2021. Also, you must give a copy of the SMM to new hires along with the corresponding SPD until your co-op receives a new SPD with an effective date on or after January 1, 2022. Note that a new SPD is issued either when you change your plan elections or when the plan is restated, whichever occurs first.

The 401(k) Plan SMM explains four changes:

1. Effective January 1, 2021, a participant may take periodic withdrawals if, at the time of election, the participant’s account balance is at least $5,000
2. Effective January 1, 2020, if elected by the co-op, certain eligible participants could receive one coronavirus-related in-service withdrawal between June 1 and December 31, 2020. Participants who received a payment may (but are not required to) repay all or part of the withdrawal once a year over the next three years
3. Effective January 1, 2020, to help alleviate financial stresses arising out of the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020 waived the 2020 required minimum distribution requirements
4. Effective January 1, 2020, participants may request a hardship withdrawal to cover repairs to a primary residence that would qualify for the casualty deduction under Section 165 of the Internal Revenue code for tax years through 2025

The RS Plan SMM explains that, effective January 1, 2020, the 100% optional death benefit will be paid to a beneficiary under age 18 either as a single cash payment (if permitted by your co-op’s plan) or as a 10-year certain annuity.

Distribution and acknowledgement instructions
Review the distribution guidelines on the BA Guide before choosing a distribution method. Temporary electronic distribution guidelines are available if your co-op’s operations have been affected by the COVID-19 national emergency. See the COVID-19 Information & Resources page on the Employee Benefits website. Please acknowledge distributing your SMMs right away (as the final step of your distribution process if possible).

Questions
If you have questions about downloading and distributing this SMM, call the Member Contact Center at 866.673.2299 or email contactcenter@nreca.coop. For all other questions about this SMM, contact the benefits compliance team at 866.673.2299, option 7, or pension.compliance@nreca.coop.