Executive Benefits Solutions has developed a turnkey employee benefits pre-funding platform to help provide relief against these mounting benefit costs based on the National Credit Union Administration's (NCUA) decision to provide credit unions the option to invest in investments that were formerly impermissible to offset their benefit obligations with potential investment earnings. Historically, the returns on these investments have provided a better rate of return than the earnings realized on previously approved investments. The fact remains that over the past few years the average return on investments held by most credit unions has been declining while the cost of health care has been escalating. The opportunity now exists to offset increasing eligible benefit costs with new investment choices by implementing a pre-funding strategy.
To determine the feasibility of implementing a pre-funding strategy for your credit union, EBS analyzes current and future benefit obligations based on the credit union's current benefit costs. The analysis provides detailed calculations and optional funding scenarios projecting the credit union's current situation compared to proposed pre-funding strategies. It is important to assess accurate projected costs in order not to excessively exceed the current value of future benefit costs.
As registered representatives of LPL Financial, EBS's financial advisors have access to strategic asset allocation, professional money management and a diversified portfolio of quality investment products to support the implementation of sound investment strategies. EBS's thorough due diligence process includes working closely with each credit union and their examiners to help make the program federally and state regulatory compliant, while striving to help make the most appropriate funding choices based on the credit union's situation.
Executive Benefits Solutions reviews the program with the credit union on an annual basis to assure that the funding schedule is appropriate to cover the current benefit obligations. Also, changes and updates to the program can be requested if any benefits or employees are added or eliminated from the credit union's employee benefits plans. The projection of future costs can be recalculated at any time based on any revisions to the program. Adjustments are made by decreasing or increasing the program funds as necessary with ample liquidity maintained to cover all projected benefit costs.