RS Plan: Timing for Requesting Year-end Benefit Estimates
As we move into the final months of 2018, many cooperative employees who are eligible for full or quasi-retirement will be requesting benefit estimates (projections) from the Retirement Security (RS) Plan. To ensure timely and accurate completion of these requests, please be aware of the following timing.
Benefits administrators should run 2018 estimates—and, for participants who want to compare results for more than one retirement date, 2019 estimates using assumed rates—on the Employee Benefits website as early as possible but no later than November 2, 2018. If the online estimate tool indicates that a special (manual) calculation is necessary, requests for 2018 and 2019 estimates should be submitted using the “special request” link on or before November 2, 2018. Please provide any special handling instructions in the comment section of the special request.
Around December 18, 2018, the actual 2019 interest rates used to calculate RS Plan lump sum benefits will be available from regulatory agencies. NRECA will notify benefits administrators at that time, detailing the new rates and their potential impact on lump sum benefits for participants. Benefits administrators can begin to run 2019 estimates and 2019 special requests for manual calculations using the new interest rates after NRECA systems are updated.
All special requests for manual calculations submitted by November 2 will be delivered to the person requesting them as they are completed, either on or before December 28, 2018.
Except for participants with a birthday in January or February 2019, manual calculation requests for both 2018 and 2019 will be limited to two calculations. To better understand how their change in age affects their benefits, participants with January or February birthdays should request two January or two February calculations. Estimate requests for 2018 and 2019 will have priority over other future retirement or quasi-retirement estimates beyond 2019.
Resources for your employees
To help you with employee discussions, NRECA has developed two resources:
- A sample email template that you can use with retirement-eligible employees;
- A flier, Answers You Need: Weighing Your RS Plan Payment Options, which can help participants evaluate their RS Plan benefit options.
RS Plan participants also have access to the Personal Investment & Retirement Consulting (PIRC) team. A PIRC team member can provide personalized education to co-op employees and can be reached via email at pirc@nreca.coop or by phone at 866.673.2299, option 6.
Questions?
We are here to help you. Please contact your field representative for specific questions or concerns. Representatives in NRECA’s Member Contact Center are available Monday through Friday, 7 am – 7 pm, Central time at 866.673.2299 or via email at contactcenter@nreca.coop.