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
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
Long-term care insurance
Other employee benefits, including education, daycare, prepaid legal, vacation and scholarships
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.