Upcoming Investment Changes to the 401(k) Plan

The Insurance and Financial Services Committee of NRECA’s Board of Directors continuously monitors the performance and fund offerings of the 401(k) Pension Plan to ensure that plan participants of all ages and career stages have access to diverse investment options at a reasonable cost. As a result of its most recent review, the following changes will be made in November.

Addition of New Bond Fund
Effective November 11, 2019, the new Diversified Bond Fund will be added to the available investment options. This fund is being added to provide access to the broad bond markets through investments in high-quality bonds of short-, intermediate- and long-term maturities, as well as in a variety of bond market sectors, including mortgages, lower-quality bonds, dollar-denominated non-U.S. bonds and other types of bonds. The average maturity of the bonds in the Diversified Bond Fund is expected to be between five and 10 years. Due to its diverse and longer-maturity investments, the fund is expected to generate a higher total return. But over normal market cycles, it is also expected to have higher potential volatility or risk than the Short-Term Bond Fund. The Diversified Bond Fund is designed to be used as part of an overall investment strategy and investors should be comfortable with the fund’s associated share price fluctuations.

2020 Target Date Portfolio Shifts into Retirement
Effective November 8, 2019, all assets invested in the 2020 Target Date Portfolio (including future scheduled contributions or allocations from auto-rebalancing) will be shifted automatically to the Retirement Target Date Portfolio, reflecting its status as a fund targeted for those retiring near the year 2020. Participants invested in the 2020 Target Date Portfolio can opt out of this transfer by moving their assets to any of the other investment options in the 401(k) Plan by 4 pm, Eastern time, on November 8. To make investment changes, participants will need to log onto cooperative.com > My Benefits > My Retirement > Change My Investments.

For more information on the 2020 Target Date Portfolio and other plan investments, go to cooperative.com/401kinvestments. Additional information will be sent to plan participants with their annual fee disclosure notice. Participants who have questions on any 401(k) Plan funds or their retirement strategy may contact the Personal Investment & Retirement Consulting team at 866.673.2299, option 6, or by emailing pirc@nreca.coop.