Regardless of the purpose of investments for employee benefits, a comprehensive pre-purchase analysis should include an analysis of available alternatives. Before acquiring investments for employee benefits, a credit union should thoroughly analyze the risks and benefits, compared to alternative methods for recovering costs associated with providing pre- and post-retirement employee benefits, or providing additional employee compensation, as appropriate.
A credit union should be able to justify the purchase of insurance products versus more traditional investment products if investment return is the primary feature of the insurance product. It should also be able to justify purchasing retail insurance products over institutional insurance products.
Last updated September 25, 2017
