Co-op Account Management
Account rebalances and fund exchanges
These can be made by phone by either the authorized signer for the cooperative or the plan participant. Telephone exchanges can only be made if that was elected on the account application, although the service can be added to the account later at the direction of the cooperative. If telephone exchange is not an option on the account, the requests can always be submitted in writing, but the written request must be signed by a cooperative authorized signer as on file with Homestead Funds. Account rebalances and exchanges only apply to current day assets.
Future allocation changes
If a participant wants to change the dollar amount or the fund that their contribution is being deposited to, this change should be made at the cooperative. Homestead Funds does not maintain future deposit instructions. Each time money is submitted by the cooperative for deferred compensation accounts, the cooperative must also provide a Group Purchase Form for Contributions to Deferred Compensation Plan Accounts with allocation instructions unless the money is submitted by Direct Deposit ACH.
Requesting an account distribution
Account distributions should be requested on the Deferred Compensation Plan Distribution Form. Please check the plan documents for distribution options. If you have questions regarding what a participant can do, contact the NRECA Deferred Compensation Team for guidance. Homestead Funds must receive the original form for processing. The distribution form must:
- Be signed by an authorized cooperative signer, as on file with Homestead Funds. The participant should not sign the form. If the participant is also an authorized signer on file with Homestead Funds, a different signer will need to sign the form.
- Be notarized
- Be received by mail. The mailing address is located at the top of page 1 of the form.
Generally this is not allowed. Please review your plan documents or contact the NRECA Deferred Compensation Team if you are unsure if this is an option for your plan type.
The distribution is calculated by dividing the shares in each fund by the number of remaining payments. This means the account will fully pay out after the number of payments you request. Also, the distribution will generally fluctuate with each payment depending on the fund in which the account is invested.
Distributions can be sent by check or ACH to the cooperative. To request distributions by ACH, you must have cooperative bank instructions on file. Bank instructions can be added on the Deferred Compensation Account Maintenance Form. Generally you will receive a distribution from each fund in the account, so you may receive multiple checks or ACHs.
How do we pay the participant?
If your accounting department is unsure of how to process the payment, please contact NRECA’s Deferred Compensation Team. They can discuss the mechanics of the distribution and tax withholding requirements.