The most common types of benefit plan accounts Homestead Funds assists cooperatives with are deferred compensation and FAS-106. In providing benefit plans to your cooperative, Homestead Funds serves dual roles.
- As investment manager, Homestead Funds offers all eight of our professionally managed funds with no additional fund or account fees charged to the employer or participant
- As record keeper, Homestead Funds will also provide cooperatives with quarterly statements and tax forms when required for taxable cooperatives.
Deferred Compensation Plans
Deferred Compensation Plans allow participants to defer a portion of their wages and postpone paying income tax on these amounts until they receive the money at retirement or separation of service. Participant eligibility may be limited to select groups of employees or only to cooperative directors. Participant eligibility and plan rules will be determined by the type of plan chosen by your cooperative.
While Homestead Funds representatives are available to assist cooperatives with account maintenance and individual participants with investment guidance, each cooperative will serve as the plan administrator for their deferred compensation accounts. To assist member cooperatives in this function, NRECA offers 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.
These accounts provide a means for organizations to fund the cost of providing postretirement medical benefits to retirees. Your cooperative can invest assets with a goal of long term-appreciation, while still maintaining a high level of liquidity to meet ongoing expenses related to retiree health care.
If your system does not have a FAS-106 Trust Account or offer a deferred compensation plan, but would like to learn more, contact your NRECA field representative.
Online Access to Employer-Owned Accounts
Benefit administrators can view employer-owned accounts, including FAS-106 Trust and deferred compensation accounts, online through DST Vision®. Having online access to these accounts can help you get fast answers to plan participant and manager questions. To obtain access to this service follow the steps on Request a Vision ID.
Deferred compensation plan participants can view their account balance and fund positions online. If they are logging in to the website for the first time, they will need to create a User ID (referencing their own Social Security Number, not the co-op’s tax ID number) and set a password. This is view-only access. Participants cannot request online transactions. Visit the login page for details.
Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.