Revisions Coming to 2021 RS Plan Statements

Retirement Security (RS) Plan participant benefit statements for 2021 have been revised to display the default form of annuity payment based on marital status, making it easier for participants to understand their estimated RS Plan annuity benefit.*

Married participants, for instance, will see estimated annuity amounts in the form of a standard 50% joint and spouse annuity that reflects their age and that of their spouse, if known. In cases in which there is no spousal birthdate on record, the statement will note that fact and inform participants that, for the purposes of calculation, their benefit assumes that the spouse has the same birthdate as the participant. The statement will also encourage them to contact the Member Contact Center with their spouse’s birthdate to update records so that it can be used in calculations going forward. The Member Contact Center will provide instructions to the participant on how to work with their benefits administrator on updating records with the spouse’s date of birth.  

Statements of unmarried participants will for the first time show an estimated annuity amount in the form of a life-only annuity. Previously, statements of unmarried participants showed estimated annuity amounts in the form of a 50% joint & spouse annuity.

For most participants, these changes in how their annuity benefits are presented will result in slightly higher (although occasionally lower) benefit amounts compared with their 2020 statements. The methodology for calculating lump sum benefits is not changing, although annual fluctuations in lump sum interest rates will continue to cause swings in lump sum values from year to year.

Participants with questions about their RS Plan distribution options are encouraged to reach out to NRECA’s Personal Investment & Retirement Consulting (PIRC) team by calling 866.673.2299, option 6, or by email at pirc@nreca.coop. PIRC planners are available weekdays from 7:30 am to 4 pm, Central time.

*Indiana Statewide Association (ISA) benefit statements will also change this year. Benefits administrators in affected ISA co-ops were notified by email earlier this week with the complete details.