Reminder: RS Plan Billing and True-up Projections

As communicated in April, NRECA switched from an eight-month to a 12-month billing schedule for the trust contribution portion of Retirement Security (RS) Plan invoices, which allowed cooperatives to benefit from a lower expense during the remaining months of 2020. In total, each participating co-op made the same level of total required contributions to the RS Plan for 2020, but that amount was smoothed over the remaining months of 2020.

As done in prior years, NRECA will conduct a true-up in 2021, which will factor in this change. The final true-up calculation for 2020 will be included in the March 2021 RS Plan invoice. Co-ops that have full salary as the definition of compensation for their RS Plan will not receive true-up projections between October and December. They will be billed for their true-up amount after they have sent annual Form W-2 data to NRECA in early 2021.

If you have questions about RS Plan invoices or the true-up process, contact your field representative. You also can contact the Member Contact Center at 866.673.2299 or contactcenter@nreca.coop.