Pre-funded Employee Benefit Accounts can help Mitigate Rising Costs
IOWA – As benefit renewal season approaches, employers face another year of escalating premium costs. Employee benefits like healthcare are critical for attracting and retaining a quality workforce and Pre-funded Employee Benefit (PEB) accounts can be a tool for credit unions to mitigate the fluctuating expense. Research indicate that premiums will rise 5.2% next year, and that premium cost increases have outpaced the rise of inflation and worker earnings the past two decades. As employers feel pressure to not increase the employee’s portion of the cost, they are looking for other ways to navigate the increases. PEB accounts have become an important option for credit unions to help offset rising costs. In 2003 the NCUA developed unique provisions allowing credit unions to invest their assets in certain accounts allowing them to diversify holdings, reduce risk and increase expected rates of returns. Credit unions can now partner with companies like First Community Trust to invest funds and offset the rise in employee benefit costs through investment earnings. “As employers weigh their options during benefit renewal season, many credit unions are searching for cost saving opportunities and avenues to continue to provide their employees the benefits they deserve,” said Paul Kronlage, Executive Vice President & CFO at First Community Trust. “Credit unions know their people helping members on the frontline are their most important asset, and are committed to providing needed benefits for them and their families.” With a PEB account, credit unions are able to off-set the costs for employee benefits, including health insurance, dental insurance, life insurance, retirement plans and more. To learn more about a PEB accounts, visit http://info.fctrust.com/FCT-PEB. First Community Trust (FCT) is a nationally-chartered trust company offering trust, investment and retirement services, primarily through credit unions. FCT’s trust and investment professionals have more than 200 years of collective trust and financial experience. FCT manages over $1.2 billion in assets and services both individuals and businesses across the country. Founded in 2001, FCT helps clients achieve their personal financial and estate planning goals and objectives.