Upcoming RS Plan Modifications

The following modifications to the Retirement Security (RS) Plan will impact individuals requesting benefit projections as well as those individuals who are retiring and may be considering employment at another cooperative that offers the RS Plan.

Change in illustration of normal retirement date
To ensure plan administration stays consistent with the RS Plan document and adoption agreements, starting on December 2, 2017, a participant’s normal retirement date will be displayed as the first of the month coincident with or immediately following attainment of his/her normal retirement age.  Participants may still quasi-retire or retire on their normal retirement age with unreduced benefits.

For instance, if the normal retirement age in your co-op’s plan is age 62, a participant reaching age 62 on May 5, 2018, will have a normal retirement date of June 1, 2018. This participant may still quasi-retire or retire with unreduced benefits as of May 5, 2018.

However, when a projection is requested for this individual using his/her normal retirement date, that projection will be run as of June 1, 2018.

An important note for individuals who will reach their normal retirement age between December 2–31: If a projection is requested for the normal retirement date, the projection will automatically default to January 1 of the following year.  For instance, for an individual reaching his/her normal retirement age on December 5, 2017, the projection will automatically default to January 1,  2018.  This will cause the projection to incorporate new lump sum factors, high-five salaries and other variables. For a participant wishing to receive a projection for his/her normal retirement age on December 5, you must request the projection for that specific date (or for a specific age).

Limiting final accrual service to one occasion
When a participant retires on or after his/her normal retirement age, benefit service is calculated through the end of the year. This practice is referred to as crediting “final accrual service.” Individuals who retire in 2018 will not receive an additional final accrual of service if they are subsequently rehired by your co-op or another co-op participating in the RS Plan after 2018.  Exception: Individuals who retired prior to January 1, 2018 and received final accrual service may receive final accrual service one more time if they are rehired by your co-op or hired by another participating co-op.

If you have any questions about these changes, please reach out to your field representative. You may also call the Member Contact Center at 866.673.2299. Representatives are available Monday through Friday, 7 am to 7 pm, Central time.