NRECA Employee Benefits Weekly

Watch for Retirement Plan Summary of Material Modifications Starting June 25

Posted on Posted in Retirement Benefits

If your cooperative offers either the 401(k) Pension Plan or the Retirement Security (RS) Plan, starting on June 25 you will receive a Message Center alert directing you to a summary of material modifications (SMM) for each plan you offer.  

Give the SMM to participants and beneficiaries in the plan(s) on or before July 29, 2025. Also give a copy to future new hires along with the summary plan description (SPD) until your co-op receives a new SPD. A new SPD is produced either when you change your plan elections or when the plan is restated, whichever occurs first. 

The 401(k) Plan SMM explains certain changes required by the SECURE Act of 2019 and the SECURE 2.0 Act of 2022, including:  

  • New eligibility rules for long-term part-time workers;  
  • Exclusion of Roth amounts from the calculation of pre-death required minimum distributions from 401(k) plans; and  
  • Increased age requirements (72, 73, and 75, respectively) to the required beginning date for mandatory distributions. 

The RS Plan SMM reflects technical changes made to the required minimum distribution rules by the SECURE Act of 2019 and the SECURE 2.0 Act of 2022. In addition, the SMM explains that the Plan will now use interest rates that are announced earlier in the calendar year for purposes of: 

  • Calculating single cash payments (for participants in plans with the traditional benefit formula); and 
  • Determining the annual interest credit rate (for participants in plans with the cash balance benefit formula).

Distribution and acknowledgement instructions
Review the distribution guidelines on the Employee Benefits website before choosing a distribution method. Remember to acknowledge distributing the SMMs as the final step of your distribution process. 

Questions
If you have questions about downloading and distributing these SMMs, call the Member Contact Center at 866.673.2299 or email contactcenter@nreca.coop. For all other questions about this SMM, contact the benefits compliance team at 866.673.2299, option 7, or pension.compliance@nreca.coop. 

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