Wednesday, February 4, 2015

Celebrating $1 Billion: Making A Difference for CUs

By: Jane Chesbro, CUNA Mutual Group's Vice President of Specialty Distribution

We're very excited to announce that CUNA Mutual Group’s Total Benefits Pre-Funding (TBPF) program reached a major milestone in January - $1 billion in assets under management!

This is exciting because it's a positive sign credit unions are taking advantage of previously impermissible investments to help fund the rising costs of employee benefits programs.

TBPF defrays the rising cost of benefits because it allows credit unions to offset employee benefits obligations by using potentially higher-yielding investments that would otherwise be considered “impermissible” by the NCUA.

This matters to credit unions because they are often challenged with flat or even shrinking margins due to returns on assets not keeping pace with rising operating expenses, especially those related to employee benefits. On top of that, family health care premiums have increased nearly 70 percent over the last 10 years*.

CUNA Mutual Group launched its TBPF program in 2008 because it was becoming increasingly difficult for credit unions to maintain a competitive benefits package and remain an employer of choice. TBPF offers credit unions an array of investment options that can help close the employee benefits gap.

Since launching the program 226 credit unions joined, and assets under management have more than doubled in the last two years. Participating credit unions shared $40 million of incremental investment returns in 2014 alone**. That extra income helps the bottom line and can be used to continue offering, or potentially add, high-quality employee benefits, which helps ensure the credit union's long-term success and competitiveness.

To learn more about our TBPF programs, call our Executive Benefits Service Center (1.800.356.2644, Ext. 6651035) or visit

*Kaiser Family Foundation/Health Research & Educational Trust 2014 Employer Health Benefits Survey
**CUNA Mutual Group data