Upcoming Investment Management Change to the Small Company Stock Fund

The Insurance and Financial Services Committee of NRECA’s Board of Directors continually monitors the performance of the NRECA 401(k) Pension Plan to ensure plan participants have top-notch investments. As the result of its most recent review, NRECA will be making an investment management change to the Small Company Stock Fund, effective May 3, 2021.

The Small Company Stock Fund will shift from being passively managed by a single fund manager to a multi-manager structure combining both active and passive management. This change is being made to offer the opportunity to outperform the Russell 2000^® Index benchmark over time. The fund will be co-managed by BlackRock Financial Management, Inc., Jacobs Levy Equity Management, Inc. and State Street Global Advisors Trust Company.

Actively managed means the fund manager(s) use different methods to select specific investments that may outperform their benchmarks or peer group average. Passively managed funds hold investment securities which are automatically selected to match the benchmark index used to compare the fund’s market performance.

A postcard is being mailed to participants, beneficiaries and alternate payees the week of March 29 to inform them of this update as required by the Department of Labor. No action is required; however, this is a good opportunity for participants to review their asset allocations to ensure alignment with their retirement timeline and tolerance for risk. To make investment changes, participants may log onto cooperative.com > My Benefits > My Retirement > Change My Investments.

For more information on the Small Company Stock Fund and other plan investments, go to cooperative.com/401kinvestments. Participants who have questions on any of the 401(k) Plan investment options or their individual retirement strategy may contact the Personal Investment & Retirement Consulting team at 866.673.2299, option 6, or by emailing pirc@nreca.coop.