Articles

Meet Rich Brock
 

May 9, 2014

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Meet Chris Burns-Fazzi
 

May 9, 2014

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Institutional Insurance
 

May 2, 2014

by Jennifer Jackson
This ‘impermissible investment’ can be used to offset benefit offerings, generate revenue and reward key employees

Originally published on CUES.org “CFO Focus”

Rule 701.19 from the National Credit Union Administration, as well as rules from state regulators, allows credit unions to purchase “otherwise impermissible investments” when they are doing so to offset their employee benefit obligations, such as a 401(k) match; health insurance/dental/vision premiums; pension contributions; and contributions to nonqualified 457 plans.

Institutional insurance is an example of an “otherwise impermissible investment” that can be used to offset employee benefit obligations. Developed in the 1980s for use in financial institutions, institutional insurance policies are regulated by several federal agencies (i.e. NAIC, SEC, FINRA) and all state banking and insurance commissioners.

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National Financial Literary Month Is an Opportunity for Credit Union
 

March 27, 2014

As National Financial Literacy Month approaches, we turned to BFB President David Frankil for his take on what credit unions should consider.

One thing that credit unions should focus on during National Financial Literacy Month is practicing what we preach when it comes to stressing the importance of retirement planning—specifically, focusing not only on your members but your executives.

What we say to our members about the importance of planning for retirement, also applies in spades to our own executive teams. In other words, we care about making sure our executives will have the funds needed to live comfortably later in life, we want to help them save for retirement, and they should take maximum advantage of employer programs.

There is an added emphasis, though—your executive teams are critical to success, and retirement plans that help recruit, retain and reward need to be a part of every credit union’s human capital strategy. Focus on their long-term financial health, and they will be around to help members focus on their own.

Presented with NAFCU, a free year-long webinar series is available to help credit unions understand executive compensation and benefits. The next webinar, Benefit Liability Management, is on April 17. View agenda and register »

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Q1 2014 Call Report – BOLI and Split Dollar Reporting Clarifications
 

March 25, 2014

The NCUA recently issued its Call Report Form and Instructions for Q1 2014. The document answers several questions credit unions have had about reporting business-owned life insurance (BOLI) and split dollar life insurance arrangements used to fund employee benefits. Those assets are now prominently reported on Schedule B (Investments, Supplemental Information). Moreover, the Schedule B treatment clarifies proper reporting on the core form Call Report. The 192-page NCUA document is available here: http://www.ncua.gov/DataApps/Documents/CRF201403.pdf.

Our partner, Sherman & Patterson LTD, reviewed the form and instructions. View the analysis of the BOLI and split dollar reporting clarifications »

BFB Clients: The new information requested by the NCUA can be found on your quarterly BFB Split Dollar Financial Report or by logging into the BFB client portal, Info Link. Your regional manager can also assist you.

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