Prefunded Employee Benefit Plans

A New Approach to Employee Benefits

While the costs of health care and employee benefits are rising, maximizing portfolio returns with regulator-friendly investments continues to challenge many credit unions. Partner with CourseMark to create a prefunded employee benefit plan that helps you manage benefit liabilities while expanding your investment options.

Benefits prefunding means estimating future benefit obligations based on prior employee benefit expenses, then directing a portion of excess liquidity into investments to cover those costs.

Many Different Benefits Programs May Qualify

Prefunding employee benefits can typically help offset a wide range of employee benefit obligations, including:

  • Health care expenses, including
    post-retirement benefits

  • 401(k) matching contributions

  • Long- and short-term disability premiums

  • Group life and AD&D insurance premiums

  • Dental and vision premiums

  • 457(f) nonqualified deferred compensation

  • Health savings account contributions

  • Pension contributions

  • Long-term care insurance

  • Other employee benefits, including education, daycare, prepaid legal, vacation and scholarships

Our financial experts are ready to answer your questions and design a plan to fit your organization’s specific needs.

Benefits Prefunding Makes Sense for Credit Unions

For federal credit unions and many state credit unions, prefunding benefits is a valuable way to enhance returns by investing in instruments that aren’t usually permitted for credit unions, such as annuities, bonds, life insurance and mutual funds.

By taking this approach, you can cover rising benefit costs and support employee satisfaction while diversifying your portfolio and strengthening your bottom line.

It All Starts With a Conversation

Together, we will discuss your needs and compare your options. Then, we will provide a no-strings-attached proposal based on your specifications.