457(f) plans help credit union keep key execs

When you’ve taken careful measures to build a strong leadership team, it can be devastating to lose a key executive to an outside organization. $7.3 billion Randolph-Brooks Credit Union, Universal City, Texas, uses 457(f) plans to help retain its top executives and preserve leadership continuity.

According to industry data, 55 percent of credit unions offer 457(f) plans to their executives. EVP/CFO Robert Zearfoss explains the strategy of Randolph-Brooks FCU. “To be competitive in the marketplace, it is something that we have to offer,” says the CUES member. “Otherwise, our executives are going to be taken away by other institutions that have those programs.”

What Is a 457(f) Plan?

A 457(f) plan is a type of non-qualified retirement plan that creates an opportunity to supplement executives’ income with no contribution limits. The assets are owned by the credit union until they are paid out to the executive.

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