Use of split-dollar insurance plans grows

Guide details nine steps for creating and maintaining deferred compensation plans to suit your overall executive compensation and succession strategies

According to the 2021 update of “Non-Qualified Executive Benefits: A Guide for Credit Union Leadership,” the growth of split-dollar life insurance arrangements has outpaced that of other standard components of supplemental executive benefits packages. And that upward trend is particularly sharp among non-CEO executives.

The 32-page guide, originally published in 2017 by CUNA Mutual Group in collaboration with CUES, explains why and how to use deferred compensation programs to recruit, reward and retain excellent credit union leaders.

The guide uses data from the 2020 CUES Credit Union Executive Compensation Survey to show trends in supplemental executive benefits product usage. The 2020 survey shows that 457(b) and 457(f) continue to be the most used deferred compensation tool for executives overall.

One reason is that 457 plans have been available to credit unions since the late 1980s, whereas split-dollar life insurance were not available to credit unions until about 2005.

 

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