The Credit Union Movement
The landscape for credit unions in the US is changing. In 2005, we had 8,877 CU's but at the close of 2009, that number has reduced to 7,708. In contrast, the assets of all CU's in 2005 amounted to $694,151,000,000 but by the year end 2009, the total has grown to $896,824,000,000.
Fewer entities with larger asset bases bring greater complexity to credit unions, whether state or federal chartered. "People helping People" is still the philosophy but the challenges in achieving it are greater.
At Kaeding, Ernst & Company we are leveraging our core competencies in employee benefits and executive compensation to help our credit union clients meet these challenges.
In managing these larger more complex institutions, there is a shrinking talent pool which must be shared with for-profit employers often who have the ability to offer stock ownership and other enticements.
With today's greater focus on long term performance, non-qualified plans provide a credit union with the ability to attract and retain the people who can achieve their strategic goals.
Retirement planning is cited as a primary concern to most executives' overall financial plan. The use of 457(f) plans is growing rapidly in the credit union world to address the need for supplemental retirement income for these key executives. In direct correlation, employment of long term care insurance programs designed to be completely paid for by retirement provide powerful asset protection for these key employees. Combined, these two programs address primary needs of the executive while promoting the goals of the credit union.
Core :
The value of Executive benefits is further enhanced when supplemental to a sound core employee benefit program. When designing complementary benefit programs, it is critical to partner with a firm with solid knowledge of financial institutions and expertise in both supplemental and core benefits.
The arena we operate in today is daunting - resources are strained, costs are spiraling, benefit programs are becoming more specialized as we experience heightened regulation and changes of historic proportion. The need for education has never been greater. For the past twenty-five years, the Team at Kaeding, Ernst & Company has specialized in education, design and management of executive and core benefit programs for the financial community and delivery of integrated employee benefit solutions.
Let Kaeding, Ernst & Company be your "Go to Resource" and partner to protect your organization's financial and human resources.