NRECA Employee Benefits Weekly

Retirement Plan Summary of Material Modifications Available June 5

Posted on Posted in Compliance, Retirement Benefits

If your cooperative offers either the 401(k) Pension Plan or the Retirement Security (RS) Plan, then during the week of June 3, you will receive a Message Center alert directing you to a summary of material modifications (SMM) for each plan you offer.

Deliver the SMM to participants and beneficiaries in the plan(s) on or before July 28, 2024. You must also give a copy of the SMM to future new hires along with the summary plan description (SPD) until your co-op receives a new SPD.  New SPDs are produced either when you change your plan elections or when the plan is restated, whichever occurs first.

  • The 401(k) Plan SMM explains that, effective January 1, 2024, Roth elective contributions are available to all participants in all co-op plans.
  • The RS Plan SMM reflects a change relating to certain inadvertent benefit payments. This change is required by recent laws and is effective December 29, 2022.
  • Both the RS Plan SMM and the 401(k) Plan SMM reflect the following change, effective January 1, 2023: the date on which required minimum distributions (RMDs) must begin is April 1 of the calendar year following the year the participant turns 73 or retires, whichever is later. For participants born between July 1, 1949 and December 31, 1950, the required beginning date remains the later of April 1 of the calendar year following the year the participant a) turns 72 or b) retires. The required beginning date for participants born before July 1, 1949 remains the later of April 1 of the calendar year following the year the participant a) turns 70½ or b) retires. 

Distribution and acknowledgement instructions
Review the distribution guidelines on the Employee Benefits website before choosing a distribution method. Please acknowledge distributing your SMMs right away as the final step of your distribution process whenever possible.

Questions
If you have questions about downloading and distributing these SMMs, 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.

Scroll to top