NRECA’s sole purpose is to serve its member cooperatives. As part of that mission, NRECA has been providing relevant, comprehensive and cost-effective multiple-employer benefit programs to rural electric co-ops for over 70 years. These programs directly support co-op efforts to attract, retain and ultimately reward the skilled workforce that is critical to achieving their missions.
With a strong focus on service excellence, including access to leadership and openness to suggestions from individual co-ops on plan design, features and enhancements, NRECA offers exceptional advantages to co-ops that participate in its benefit programs. Because it is a not-for-profit entity, NRECA operates “at cost” and is able to keep administrative fees comparatively low. And because it specializes in the co-op community, NRECA brings a unique understanding of the needs of its co-ops.
The multiple-employer plan design pools resources and risk with approximately 900 co-ops around the country. Unlike single-employer or multiemployer plans, multiple-employer plans enjoy simplified and less volatile accounting rules. And because NRECA is the plan sponsor, it assumes much of the responsibility and most potential liabilities associated with the plans.
[accordion title="401(k)%20Pension%20Plan%20"]With $13.5 billion in assets under management and a participation rate of 95% across 921 participating employers*, the defined contribution 401(k) Pension Plan provides co-op employees a vehicle for retirement savings with a fee structure that consistently beats industry averages. The plan’s expenses are shared between the co-op and its employees which helps keep participant expenses comparatively low and invested for their future. As plan assets increase in value, expense ratios generally decline.[/accordion]
[accordion title="Retirement%20Security%20Plan"]The defined benefit Retirement Security (RS) Plan manages $9.7 billion in assets that represent retirement income for thousands of co-op employees and their families. The RS Plan’s current actuarial funding ratio is 89%**, including certain current year contributions. This guaranteed benefit provides a unique addition to the co-op retirement benefits package, underscoring the co-op as an employer of choice.[/accordion]
[accordion title="Group%20Benefits%20Program"]Through this program, NRECA offers medical with prescription drug, dental, vision, life insurance and disability benefit plans. With an average in-network discount of 51% nationally, the program offers access to comprehensive benefits while realizing aggregate relative savings in excess of $2 billion for its participants since the implementation of the National Network Strategy in 2014. As part of its commitment to improving the health of co-op families, NRECA offers a host of programs tailored to address the specific mental and physical health challenges faced by many co-op employees.[/accordion]
[accordion title="Resources%20for%20Co-ops"]NRECA relieves much of the administrative burdens by providing co-op staff members with tools and resources they need to manage these programs. Benefits administrators have access to the BA Guide, which puts plan administration tips, rules and resources at their fingertips on the Employee Benefits website, which can also be used to process employee events and more. Publications and conferences geared to the unique needs of co-op management ensure interactive learning and networking opportunities. Each co-op is provided a dedicated field representative along with access to consultations with experts from NRECA’s compliance, legal, actuarial, investment strategy and client service teams. [/accordion]
[accordion title="Resources%20for%20Plan%20Participants%20"]Co-op employees and their families are provided with a wide range of education and benefit management tools to maximize their benefits at no additional cost. All plan participants have access to educational newsletters for each benefit plan as well as the Employee Benefits website that provides access to account management tools along with educational videos, articles, planning resources and more. Retirement plan participants have access to our Personal Investment & Retirement Consulting team, which is comprised of non-commissioned investment and retirement planners. These individuals are experts in NRECA retirement plans and provide holistic financial education on an array of financial topics and decisions. Participants in the Group Benefits Program have access to a host of resources and cost saving opportunities to aid them in their quest to achieve a more healthful lifestyle. Whether it’s quitting tobacco products, obtaining support during a pregnancy or receiving assistance in clarifying a treatment plan relating to a recent health diagnosis – there’s a resource or program available! [/accordion]
**Funding level is based on the expectation that all actuarial assumptions are met. CSEC funding ratio includes estimated contributions through Sept. 15, 2022; funding ratio excluding contribution receivables for 2022 is 82%.