Most of the investments generally permitted to credit unions by the NCUA pay returns in the 1% to 2% range but operational costs, especially for key employee benefits, are ballooning.

Indeed, health care expenses have shot up 80% over the past decade, according to research sponsored by the Henry J. Kaiser Family Foundation. The mounting struggle to pay for for retiree health care, defined benefit pensions and long-term care coverage has become the main problem.

To help pay for some of the costs, more credit unions are considering pre-funding employee benefits. In 2003, the NCUA amended Regulation 701.19 to give federally chartered credit unions the option to put assets earmarked for future employee benefits costs into investment funds that were normally off-limits, such as corporate bonds.