Deferred Compensation – Roles

Co-op Account Management

What is Homestead Funds’ role in deferred compensation accounts?

With deferred compensation accounts established for a nonqualified plan, the cooperative is the account owner and plan administrator. This means the cooperative is responsible for plan management tasks such as:

  • Determining participant eligibility
  • Monitoring contribution limits
  • Initiating and monitoring account distributions

Homestead Funds provides the investment vehicles: a series of professionally managed mutual funds. When a cooperative chooses to invest plan assets in Homestead Funds, cooperative plan administrators and plan participants can count on us for help with account questions. Additionally, (assuming the plan document allows it) the underlying participant in the plan can call and receive asset allocation guidance at no cost to the cooperative or the participant.