Trusted News for Credit Union Leaders
Credit Union Times
MAY 29, 2019 | VOL. 30 | NO. 18 | CUTIMES.COM
or the CEOs of the Pennsylvania Credit Union
Association and the
New Jersey Credit Union
League, the decision to merge the
two organizations was driven by
the next step in their evolution,
leveraging the trade groups’ combined capital and other resources
to help credit unions successfully
compete well into the future.
Last month, the PCUA and
NJCUL announced the proposed
consolidation that was expected
and required to be approved by
two-thirds of the member credit
unions from both states. The consolidation was approved May 16.
The vote of approval means
the PA/NJ Credit Union Association will be open for business on
Jan. 1, 2020, which will mark the
12th league consolidation since
2007.
“Certainly, the consolidation that’s occurring among credit
unions is one of
the factors that we
considered when
we talked about
whether it makes
sense to combine
our forces, but I
think that’s only one factor,” Patrick Conway, PCUA president/
CEO, reflected. “I think what was
more fundamental goes to how
the league landscape has
Leveraging Consolidation for the Future
Y17
GROWTH STRATEGIES
PETER STROZNIAK
pstrozniak@cutimes.com
Conway
s is often the case with
federal rules, nobody
seems happy with
the CFPB’s proposed
regulations governing the debt
collection industry.
To debt collectors, the rule is
too strict and does not allow them
to take the necessary steps to contact debtors.
To consumer groups, the rule
is so loose that it will continue
to allow debt collectors to harass
consumers.
After years of research, the
CFPB on May 7 released a 538-
page proposed rule implementing
the Fair Debt Collection Practices
Act. The proposal specifies rules
for third-party debt collectors covered under that law. Among other
things, the rule addresses technological advances that have taken
place since the law was enacted
in 1977.
Credit union trade groups said
while the rule only governs third-party debt collectors, many credit
unions hire those firms.
“We are pleased that the bureau
is taking steps to promulgate rules
on a segment of the industry that
has operated without adequate
regulation and has been subject to judicial orders for Y18
DAVID BAUMANN
dbaumann@cutimes.com
Debt
Collection
Rules Draw
Zero Fans
COMPLIANCEFOCUSREPORT:
CREDIT & DEBIT CARDS
One of the latest developments in ATM technology
is the ability to conduct ATM transactions via a
mobile device – no card needed. But are cardless
ATMs worthwhile investments for your CU? Find
out in this Focus Report. Y6
Minority Group
Communication
Fine-tune your CU’s
messaging. Y14
Financial
Product
Reinvention
It’s not just for
digital brands. Y11
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
Q&A: The Future of Benefits
Jessica Du Bois is a benefits
consultant at Business Benefits
Group, located in the Washington, D.C. metro region. She
focuses on personalizing the
employee education experience to enhance the ease of use
and understanding of employee
benefits.
How did you get started in
the benefits industry?
I’m from a very small Iowa town
of about 800 people. During
high school and college, I had
jobs where I saw that if you work
hard and build rel tionships
with people, you will make more
money. So I set out to do that but
in a way that would move me out
of the state.
I ended up with Principal
Financial Group as a sales rep
resentative. I took part in their
development program for new
grads, and this led me to Nashville. During those years, I
worked the Tennessee, Alabama
and Kentucky markets.
I connected with Business
Benefits Group through a mutual
connection in Nashville. I wasn’t
sure at the time that I wanted
stay in the industry, but when I
met with them, it gave me a dif-
ferent view on what the industry
uld look like. I didn’t realiz
how innovative benefits has be
come. The market I was working
in was so outdated, people were
still enrolling using paper appli
ations and the number of car
riers was very limited. Y16
