Protect Your RS Plan Pension Benefits

Stop PBGC From Overcharging Low-Risk Co-op Pension Plans


Over 880 rural electric cooperatives participate in the defined-benefit “multiple-employer” pension plan sponsored by NRECA, covering over 56,000 employees in 47 states. Co-op employees are the backbone of our core mission to provide, safe, affordable, and reliable electricity. But rules designed for other types of pension plans were increasing volatility and cost pressures on participating cooperatives.



In 2014, lawmakers recognized that the retirement plans of NRECA and other rural cooperative organizations have significantly lower risk profiles than those of Fortune 500 companies and excluded them from volatile increases in required plan funding. However, the formula determining the cost of insurance premiums paid to the Pension Benefit Guaranty Corporation (PBGC) remains the same.


NRECA position

NRECA urges Congress to change the formula for insurance premiums and stop PBGC from overcharging multiple-employer defined benefit pension plans that cover charities or rural cooperatives. The same factors that led Congress to adjust funding rules for CSEC plans in 2014 strongly support adjusting PBGC premiums charged to CSEC plans. America’s Electric Cooperatives supports H.R. 1994 and S.972.

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