MADISON, Wis. (2/5/15)--CUNA Mutual Group's Total Benefits Pre-Funding (TBPF) program, which allows credit unions to use higher-yield investments to help offset employee benefit costs, reached $1 billion in assets under management in January.
The National Credit Union Administration adopted a rule in 2003 that permitted credit unions to pre-fund employee benefit obligations through investments that were previously considered impermissible.
Credit unions can now work with TBPF, which uses potentially higher-yielding investments to supplement funds allocated for employee benefits.
"It's becoming more difficult for credit unions to maintain a competitive benefits package and remain an employer of choice," said Jane Chesbro, CUNA Mutual vice president of specialty distribution. "TBPF offers credit unions an array of investment options that can help close the employee benefits gap."
TBPF program options include life insurance, mutual funds, stocks, bonds and institutionally managed custom portfolios.
Assets under management have more than doubled in the last two years, according to CUNA Mutual, and participating credit unions shared $40 million of incremental investment returns in 2014 alone.
CUNA Mutual launched the TBPF program in 2008, and 226 credit unions have since adopted the program.