Glenn English NRECA CEO WEB CONFERENCE SERIES SEPTEMBER 2, 2010 - - PDF document

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Glenn English

NRECA CEO

WEB CONFERENCE SERIES SEPTEMBER 2, 2010

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Mary McLaury

NRECA Vice President, Education & Training

WEB CONFERENCE SERIES SEPTEMBER 2, 2010

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Glenn English

NRECA CEO

WEB CONFERENCE SERIES SEPTEMBER 2, 2010

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Scott Spencer

NRECA Senior Vice President Insurance and Financial Services

WEB CONFERENCE SERIES SEPTEMBER 2, 2010

401(k) Pension Plan New Administration Fee for Cooperatives

Conversation With the Membership 9-2-2010

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401(k) Admin Fee for Co-ops

• An asset-based fee - designed to reimburse NRECA for a portion of the

plan’s expenses.

• Annual Calculation – Calculated based on asset values on July 1, of

the previous year. For example, the fees billed in 2011 will be based on asset values as of July 1, 2010.

• Billing Frequency – Quarterly for co-ops with annual fees over $5,000;

annually for co-ops with annual amounts under $5,000.

• Total Plan Costs Not Increasing – Co-ops and participants continue to

benefit from NRECA’s low total cost.

• Modest Impact – For example, if the asset-based fee were 18 basis

points, labor costs would increase by 0.2% of pay (about 6 cents per hour on average).

• Estimated Fees –NRECA is mailing an estimate of 2011 fees to each

co-op today.

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