The vast majority of NRECA members offer comprehensive retirement benefits to their committed employees through a traditional defined-benefit plan (the NRECA Retirement Security Plan) and a defined-contribution plan (the NRECA 401(k) Plan). Both of these critical employee benefit plans are designed to give each co-op employee the financial means to enjoy a comfortable and secure retirement and operated to maximize retirement savings for employees, retirees and their families.
Retirement Security (RS) Plan
The RS Plan remains a strong and stable defined-benefit pension plan, helping hardworking electric co-op employees achieve financial security in retirement. NRECA’s legislative efforts on Capitol Hill succeeded in preserving the most favorable terms possible for the RS Plan and the employees it serves. This basic, defined-benefit pension is managed at cost and allows co-ops to set aside and nurture funds that will provide their employees with fixed retirement incomes based on salary levels and years of service.
401(k) Pension Plan
The 401(k) Pension Plan provides employees of NRECA’s member co-ops the opportunity to save and invest for their retirement. In most cases, the co-ops sponsoring this plan make contributions to encourage greater savings by their employees. The plan is managed at an annual cost of less than 0.5 percent of total assets, which is less than half the average cost of 401(k) plans. Over time, these cost savings can make a substantial contribution to the beneficiaries of NRECA-managed 401(k) accounts. Participants have a full menu of diversified investment options, including Money Market, Short-Term Bond, Growth & Income, S&P 500 Stock Index, Small Company Stock, International Stock, and Diversified Growth, and four Target Date Portfolios (TDPs). NRECA also provides its member co-ops with the option of offering employees access to Self-Directed Brokerage Accounts, which give participants free rein to buy and sell a wide range of stocks, bonds and other investments.
To find out more about NRECA Employee Benefit Plans e-mail the NRECA Member Contact Center or call 866-673-2299.