RUS Letter Released on VCAP Accounting

NRECA is finalizing the previously announced Voluntary Contribution Acceleration Program (VCAP) for cooperatives participating in the Retirement Security (RS) Plan. The new program will provide co-ops with the flexibility to make additional contributions to the RS Plan in exchange for a proportional discount applied to the RS Plan Trust portion of their billing rate for a specific period of time.  The program can take effect for a co-op as early as January 1, 2019.

In anticipation of the rollout of the VCAP, the U.S. Rural Utilities Service (RUS) recently issued a memo advising co-ops participating in the RS Plan how the VCAP can be handled for debt restrictions under the typical RUS loan contract and for financial accounting purposes.

Need more information about VCAP? Read this overview, or contact your field representative for details.