Trusted News for Credit Union Leaders
Credit Union Times
APRIL 24, 2019 | VOL. 30 | NO. 13 | CUTIMES.COM
Must Reads
INVESTMENTS
‘Pensionize’ 401(k)s and IRAs
In a world of defined contributions, American workers have
three challenges – inadequate
savings, leakage (or loans/early
withdrawals) tied to their retirement accounts and the need for
retirement income. Plus, just half
of all DC plans offer a way for
investors to transform balances
into periodic retirement income,
with only one in five offering
guaranteed lifetime payouts.
This situation prompted Steve
Vernon of the Stanford Center on Longevity, Wade Pfau of
The American College of Financial Services and researcher Joe
Tomlinson to explore and devise solutions to “pensionize”
retirement plans. Their work,
first published last year and then
updated this year, finds that only
one-third of workers contact financial advisors, and most lack
the necessary skills to convert
savings into retirement income
and typically have short planning horizons.
But research from the Stanford Center on Longevity (SCL)
and Society of Actuaries (SOA)
has found a “straightforward retirement strategy,” according to
the three authors. “Choosing a
specific solution that will help
workers generate retirement income requires them to make
informed tradeoffs between potentially competing goals,” they
explained, such as “maximizing
lifetime income; providing access to savings (liquidity); planning for bequests;
HUMAN RESOURCES
Defending Against Violence
mid-February in Aurora, Ill.,
a 15-year employee was called
into human resources at his em-
ployer’s facility for a termination
meeting. The employee opened
fire with a handgun, killing five
employ es, including the hum n
resources manager, a hum n re-
sources intern and the plant man-
ager, as well as wounding five po-
lice officers. According to its most
recent statistics, the United States
Department of Labor’s Bureau
of Labor Statistics reported there
were 458 workplace homicides
in 2017, 351 of which involved
shootings.
Workplace violence can occur
in many forms, including active
shooters, arson, criminal or gang
violence, exploives, cyberat-
tacks and terrorism. Aside from
the devastating human trauma,
it can have far-reaching costs
and consequences for employ-
ers, such as government agency
citations, lawsuits, insurability
issues, loss of consumer confi-
dence, service disruptions, i
creased labor and health care
costs, and negative publicity.
Understanding the types of
workplace violence as identified by the Occupational Safety
and Health Administration
and the FBI c n ass st employ
ers with crafting a customized
and comprehensive approach
o the issues of prevention and
preparedness.
Types of Workplace Violence
Type 1 cases involve vi- Y16
oan processing speed,
application abandon-
ment reduction, expired
application rescues,
collection reminders including
repayment and delinquency, and
contact center service – those
are a few areas of credit union
business where messaging can
help spur member activity and
interaction.
The Bozeman, Mont.-based
Quiq, which provides Software-as-
a-Service-based messaging soft-
ware solutions, confirmed that in-
novative, market-leading brands are
currently evaluating or implement-
ing messaging, creating a domino
effect that’s driving adoption across
industries. In many cases, consum-
er demand is driving SMS and MMS
adoption, as customer satisfaction
scores are the highest for messag-
ing of all the channels. The thought
process is once consumers interact
with a company via
messaging, they
start to demand
and expect the
same convenience
from other brands
and industries, in-
cluding financial
services.
Danielle Wanderer, chief mar-
keting officer at Quiq, explained
the messaging company best
serves organizations with high lev-
els of consumer/member
CU Members Get the (Text) Message
ROY URRICO
rurrico@cutimes.com
Y17
MOBILE BANKING
Wanderer
FOCUSREPORT:
MOBILE BANKING
& PAYMENTS
To attract members of Gen Z,
who take the convenience of
fast internet and smartphones
for granted, CUs’ mobile
strategies must be on point.
Learn three ways your mobile
app can get the youngest
consumers’ stamps of approval
in this Focus Report. Y6
The Mobile
App Experience
Optimize and secure
it for members. Y11
Fighting
Cross-Channel
Fraud
Utilize adaptive
behavioral
analytics. Y10
Largest CUs
to Face New
Tax Day
PETER STROZNIAK
pstrozniak@cutimes.com
ay 15, 2019 will
become a new Tax
Day for some of
the nation’s largest federal and state credit unions.
On that date, these credit unions,
including some of the national industry organizations, leagues and
associations, will be required to
pay a 21% excise tax on executive
pay that exceeds $1 million in total salary, bonuses, incentives and
deferred compensation.
While it may be tempting for
senior management and boards
to say they want to avoid paying
the 21% excise tax because they
are concerned about economic
costs and the possibility of bad
publicity when their compensation information becomes public,
that strategy could end up hurting
their credit unions.
“If you just simply look at that
one dimension, you may find
yourself in an outcome that is really
not advantageous
to the credit union
or the talent the
credit union is trying to attract and
retain,” said Dale
Edwards, principal and cofounder
of Triscend in Flower Mound,
Texas, a provider of talent Y18
CU MANAGEMENT
Edwards
