Suspension of Benefits Notices Updated

NRECA has developed new easier-to-understand materials for informing participants in the Retirement Security (RS) Plan how working after their normal retirement date may affect their benefit. 

By law, participants in the RS Plan who are nearing their normal retirement date must receive a Suspension of Benefits Notice. NRECA mails these notices on a monthly basis to RS Plan participants who are within three months of reaching their normal retirement dates. Benefits administrators are notified by email when a Suspension of Benefits Notice has been mailed to a participant in their cooperative’s RS Plan.

The revised Suspension of Benefits Notice more clearly explains the rules that apply to a participant’s benefit and the effect of those rules on specific forms of benefit such as an annuity or a lump sum payment. The notice incorporates additional references to their co-op’s RS Plan summary plan description and how to obtain a copy of that document. Participants are directed to contact their benefits administrator for help in obtaining estimates of their RS Plan benefit at both normal retirement age and alternative retirement. The notice also reminds participants that NRECA’s Personal Investment & Retirement Consulting team is available to help them better understand their available options.

To help benefits administrators handle participant inquiries about the notice, NRECA has also added additional online resources, including a new page in BA Guide. The new page describes the notification process, how working past normal retirement date can affect particular forms of benefits, and links to a PDF of the Suspension of Benefits Notice.