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directors were alarmed when they learned that the benefit program that the organization offered to its executives was outdated, inefficient, and not performing as projected.
Grant, Hinkle & Jacobs was brought in by a compensation consultant to review and provide guidance on a credit union’s existing 457(f) executive benefit program.
After performing a written analysis, it became clear that the plan could be significantly improved.
We helped the credit union update its plan and fund it with specially-designed permanent insurance on the lives of the participants.
The credit union was able to increase the projected retirement benefit for each participant by 20% to 40%, at no additional cost or risk to the credit union. Alternatively, the organization could have chosen to reduce its costs while providing the same projected retirement benefits to the participants, but generously chose to increase the benefits instead.
The life insurance policies also include a pre- and post-retirement death benefit, and long-term care/chronic illness coverage.
The credit union board of directors is ecstatic that they can offer significantly more benefits to attract and retain their key executives, at no additional cost. The participants are also appreciative that they are being recognized with additional benefits, including more income, long-term health care coverage, and a death benefit. This has resulted in improved morale and significantly reduced turn-over.