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New Voting Poll: Is CEO, Board or Both to Blame for Lack of CEO Pensions?

WEST PALM BEACH, Fla. - One would expect that credit union CEOs would have some type of structured, credit union-funded retirement plans in place, but that's not always the case. Some credit union CEOs are heading into the end of the careers with either no retirement plan or a plan...

By Staff Writer | Updated on August 31, 2004

WEST PALM BEACH, Fla. – One would expect that credit union CEOs would have some type of structured, credit union-funded retirement plans in place, but that’s not always the case. Some credit union CEOs are heading into the end of the careers with either no retirement plan or a plan that isn’t adequately funded. This is spurring many boards to play “catch-up” with these plans and contribute large sums of money in short periods of time. In one reported case the CU contributed over $1 million in one year. Playing “catch up” however isn’t always the best for the credit union financially because they have to take a larger chunk of capital out of play for the contribution, whereas if done over many years the board can put less money aside that can grow to pay the same benefit. That leads to the next Credit Union Times Online Voting Poll: In those cases where the credit union CEO is nearing retirement with no retirement plan or one that’s not adequately funded, whose fault is it? * The board; it’s ultimately its responsibility to compensate the CEO; * The CEO; he or she needs to alert the board of this compensation void; * The board and CEO; as part of good board/CEO relations retirement planning should be discussed by both parties; * No one’s fault; credit union 457s and other non-profit plans are too complicated and restrictive to adequately fund retirement * Don’t know.

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