 The
retirement benefit provided by a Defined Benefit Plan is
typically based on a target percentage of average high-three
salaries. We work with the credit union to determine the
appropriate formula based on the credit union’s qualified
plan(s) and Social Security benefits and the Defined Benefit
Plan. |
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The retirement benefit paid to the executive
under a Defined Benefit Plan is a guaranteed benefit to the executive.
These plans are typically funded with a specially negotiated insurance
policy designed specifically for credit unions. Our specially
designed insurance policies offer many benefits to the credit
union including: guarantee of principal plus a minimum return,
competitive investment returns, and death benefit that protects
the credit union and executive’s beneficiary.*
 Like
the Defined Benefit Plan the retirement benefit provided by a
Defined Contribution Plan is typically based on a target percentage
of average high-three salaries. We work with the credit union
to determine the appropriate formula based on the credit union’s
qualified plan(s) and Social Security benefits and the Defined
Contribution Plan.
In a Defined Contribution Plan the retirement
benefit paid to the executive is tied to the investment performance
of a specific investment asset purchased by the credit union.
Our Defined Contribution Plans can be funded with specially designed
life insurance policies, mutual funds, and variable annuities.
Sheeter Consulting works with each credit union individually to
determine which investment is most appropriate for their individual
situation.
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 The goal of our Incentive Based Compensation Plans is to reward
executives for hitting financial goals set by the credit union.
Sheeter Consulting can work with your credit union to develop an
incentive formula based on financial and business plan goals.
These goals can be used to create a stand-alone Incentive Compensation
Plan or can be incorporated into a Defined Benefit or Defined Contribution
Plan.
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 Rapidly increasing healthcare costs and cumbersome FAS 106 accounting
procedures have it made costly and difficult for credit unions
to provide post-retirement healthcare to its employees. Sheeter
Consulting’s Post-Retirement HealthCare Plan is an innovative plan
that allows credit unions to provide affordable post-retirement
healthcare to their CEO, Executive Team, or their entire workforce.
Sheeter Consulting designs the Post-Retirement
HealthCare Plan and can fund the benefit through one of our specially
designed insurance policies to help offset the costs of the plan.
Through our plan design the executive receives essentially a healthcare
spending account at retirement that can used income tax-free to
pay for healthcare coverage during the participant’s retirement
years.
The credit union can use this attractive benefit to retain employees
by attaching vesting schedules to the Plan that require a participant
to stay with the credit union usually until retirement to qualify
for the benefit.
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 Credit unions are able to “carve out” executives from Group Term
Insurance Plans and provide them with life insurance protection
through our specially designed life insurance products. This plan
reduces the cost of the Group Term Insurance Plan to the credit
union.
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 These plans allow credit union executives to make tax-advantaged
contributions in addition to their 401(k) plan. Like the 401(k)
Plan, pre-tax contributions are made into a 457(b) and are taxed
deferred until they are withdrawn at retirement. The 457(b) allows
executives to be vested in their contributions without creating a
taxable event.
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*All guarantees are based
on the claims-paying ability of the issuing company. Some products,
riders, features and benefits may have additional costs, and
may not be available in all states.
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