CREDIT UNIONS

Increase Yields

Earn a higher current yield without sacrificing safety or liquidity, and acquire life insurance protection on key people.

  • Your credit union will enjoy an annual net yield on investment currently ranging from 3% to 6%.
  • As interest rates rise, so will your yields.
  • Death benefits will be paid to the credit union and/or the insured’s heirs.
  • Up to 25% of a credit union’s member equity can be utilized.
  • Ideal for compliance with FASB ASU 2016-01.
CASE STUDY

Increasing yields and acquiring key person coverage.

A $4 billion credit union wanted to earn more on its cash and short-term investments, and protect itself from an unexpected passing of its key executives.

Attract and Retain Key Employees

Grant Hinkle & Jacobs helps credit unions attract and retain their top executives by:

  • Improving the efficiency of existing 457(f) and split-dollar non-qualified benefit plans in order to provide better economics for the credit union and the key executive.
  • Designing, implementing, and maintaining new non-qualified benefit plans, including institutionally-designed supplemental retirement plans and management succession arrangements.
CASE STUDY

Improving benefit plan efficiency without increasing cost or risk.

The members of a credit union’s board of directors were alarmed when they learned that the benefit program that the organization offered to its executives was outdated, inefficient, and not performing as projected.

Improve Credit Union-Owned Life Insurance (CUOLI)

Innovation, automation, and increased life expectancies have improved the competitiveness of life insurance policies, making today’s contracts far more efficient than many of those purchased by credit unions just a few years ago. We help credit unions analyze and update their CUOLI portfolios to maximize efficiencies and yields.

CASE STUDY

Improving CUOLI efficiency by 60%.

The CFO of a $1.5 billion credit union was worried about the performance of its existing $20 million CUOLI portfolio that was put in place prior to his tenure.

Comply with FASB ASU 2016-01

Effective December 15, 2018, price changes in a credit union’s “equity securities,” including stocks, mutual funds, and ETFs, are to be recorded against current net income. The result is that a brief market downturn with these volatile assets could look devastating on an organization’s balance sheet.

Credit Union-Owned Life Insurance (CUOLI) is ideally-suited to comply with the FASB update because it:

  • Minimizes investment volatility.
  • Retains a high level of predictability and flexibility.
  • Is backed by some of the world’s largest insurance companies.
CASE STUDY

Improving yields and complying with ASU 2016-01.

A credit union was seeking an investment option that could generate a competitive yield during flat and rising markets, and not negatively impact the balance sheet during declining markets, pursuant to the FASB ASU 2016-01 guidance.

Learn More About Our
Programs for Credit Unions

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What Our Clients Are Saying

“From my perspective, it is critical that a Supplemental Executive Retirement Plan (SERP) work well for both our people and the credit union itself. The program Gateway Services introduced us to that Scott Hinkle, JD, CFP and his team designed first and foremost increased our yield on a significant portion of cash and equivalents by 4% while maintaining the safety and liquidity. The plan also provides our key people with a safe, simple, and more tax efficient result. Compared to other popular programs marketed to credit unions, ours is incredibly flexible and requires 35% less capital to achieve the desired retirement benefit for each executive.”

– Doug Ferraro, CEO, Bellco Credit Union

“Like many other credit unions, SAFE invested in Corporate-Owned Life Insurance (COLI) as a way to offset the cost of our benefit plans. Through Scott Hinkle and his team at Grant, Hinkle & Jacobs (GHJ), we came to learn that not all COLI is created equal. In our case, restructuring our COLI with GHJ will ultimately provide SAFE with a substantial increase in long term income from our original program. In addition, GHJ is now administering our existing Supplemental Executive Retirement Plans (SERPs), providing a level of service and insight that I have not experienced elsewhere. I cannot emphasize enough how important it is to review your COLI and SERPs with the experts at GHJ.”

– Dave Roughton, President & CEO, SAFE Credit Union

Learn More About Our Services for Credit Unions