Benefits Prefunding - the Holy Grail for Credit Union Employee Benefits
Every credit union leader is on the lookout for that game-changing strategy – the one move that could elevate their organization to the next level. Is there a unique advantage credit unions hold over banks? Can we maintain financial prudence and still thrive?This paper explores a powerful yet often overlooked opportunity: a shift in mindset around corporate investments that will enable credit unions to provide highly valued employee benefits without burdening operating capital.Historically, credit unions have been limited to conservative investment options like CDs and bonds. When it comes to executive benefits, many rely on COLI (corporate-owned life insurance) plans, which are capped at 25% of net income and often takes decades to realize returns through death benefits. Howeve...