Deferred Compensation Plan AccountsInvestment and Account Management
Once your employer has adopted a deferred compensation plan, plan assets may be invested in any of the eight professionally managed Homestead Funds. There are no additional fund or account fees charged to the employer or plan participant.
Homestead Funds also provides the recordkeeping services associated with account management. We send benefits administrators quarterly account statements and tax forms, and our client service associates are available to help benefits administrators submit transaction instructions.
Employer Is Plan Administrator
The employer serves as the plan’s administrator and must authorize one or more representatives to submit participant salary deferrals, designate how amounts are to be invested, request redemptions and receive plan statements and tax forms. Typically, the authorized employer representative is the benefits administrator.
Administering deferred compensation plans requires more than the processing of transactions. Other requirements include maintaining the plan’s compliance with eligibility restrictions and contribution limits and the filing of documents with government agencies. To assist member systems with these functions, NRECA provides a range of compliance services for an annual fee. If you would like more information about NRECA’s services, please contact your NRECA field representative.
Homestead Funds’ role is limited to investment and account management. We cannot advise benefits administrators on compliance issues, including contribution limits or eligibility restrictions.
