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Filed on September 11, 2009–September 13, 2009, published the first business day after.
- U.S. Central 2008 financial statement released
- Compliance: Proper policies, procedures help CUs manage RDC risk
- CUNA CEO search process begins
- New fair lending guidance may help CUs comply
- Inside Washington
- Heins wins Wegner Award for Lifetime Achievement
- CU’s “Project Flipside” draws Generation Y
- Ga. CU loans save members $70 million
- Savings push leads to CUs reviving Christmas clubs
- Officers shoot and kill CU robber
- US FCU exec flies for veterans
- CU wheelchair robber with hoax bomb to serve 3 years in prison
- CU System briefs
- Market News
- News of the Competition
- New initiatives aim to boost retirement savings
- Wesabe, Addison Avenue FCU deliver springboard app
U.S. Central 2008 financial statement released
WASHINGTON (9/14/09)—When assessing the December 2008 U.S. Central FCU financial statement released Friday, interested parties should remember that the reporting was completed under a since revised accounting standard that forced the corporate credit union to record a larger other than temporarily impairment (OTTI) charge than current accounting rules require, the Credit Union National Association (CUNA) said upon the release of the statement.
U.S. Central's auditors report that as of Dec. 31, 2008, U.S. Central incurred an OTTI charge of $4.9 billion on its investments. Under the old rule, whenever a security faced an expected credit loss, an OTTI charge had to be taken, not on the amount of the expected credit loss, but on the difference between the market or "fair" value of the security and its book value.
As of December 2008, the expected credit losses on the portfolio were $1.2 billion. Thus, the OTTI charge of $4.9 billion, representing the difference between fair and book value, exceeded the expected credit losses by $3.7 billion.
"Following criticism from many members of Congress and financial institutions that the OTTI standard was exacerbating the financial crisis, the Financial Accounting Standards Board (FAS B) changed the OTTI rule (FSP 115-2) so that going forward, in similar situations, only the expected credit loss would have to be expensed." said CUNA Chief Economist Bill Hampel.
In U.S. Central's case, the $3.7 billion of market loss would only be recorded as an unrealized loss, netted against capital, and adjusted in future periods as the market value of the securities changed. "Unfortunately, the rule was not made retroactive," Hampel said.
Information issued by the National Credit Union Administration when it released the U.S. Central financial statement indicated that as a result of FASB adopting FSP-115-2 this April, U.S. Central reclassified $3.7 billion of non-credit losses included in the $4.9 billion of 2008 OTTI charges from retained earnings to accumulated other comprehensive loss (AOCL), a component of equity.
"What we've learned from US Central's 2008 audited financial statements is more or less in line with expectations. Credit losses of $1.2 billion at US Central over the next several years might even be less than what NCUA had in mind when it estimated the cost of guaranteeing credit union deposits in corporates at $5.9 billion.
"Of course, no one knows what those credit losses will end up being, but if they are indeed in the neighborhood of $1.2 billion, and it US Central holds on to the securities, the $3.7 billion of so-called 'market loss' will not be incurred," Hampel said.
For an NCUA Frequently Asked Questions (FAQ) regarding the U.S. Central financial statement, use the resource link below.
Compliance: Proper policies, procedures help CUs manage RDC risk
WASHINGTON (9/14/09)--While extending remote deposit capture (RDC) to individual members can present some "operational and regulatory compliance risks," the Credit Union National Association's (CUNA) director of compliance information Valerie Moss writes that credit unions can address those risks by following "appropriate policies, procedures, and processes."
In the September issue of Credit Union Magazine, Moss said that credit unions that provide RDC, which allows credit union members to transmit scanned checks or share drafts to their credit union from remote locations, must do thorough due diligence on the third-party RDC vendor they enter into business with.
The Federal Financial Institutions Examination Council (FFIEC) agencies, which includes the National Credit Union Administration, recommend that credit unions complete a "thorough risk assessment" and identify "the legal, regulatory compliance, reputation, and operational risks" related to the delivery system before they begin an RDC program, Moss added.
Credit unions should also consider any legal and regulatory risks and should monitor RDC operations, safeguard account and personal information from their members, and be sure to comply with interagency internet authentication guidelines, Moss wrote. A full understanding of the operational risks related to the use of a RDC is also vital, and credit union managers must also have their credit union's legal counsel review any contract that is entered into with an RDC service provider , she said.
While the risks related to RDC are not substantively different from those related to any other financial transaction, altered checks or counterfeit funds may be harder to detect, Moss added.
For the full story, use the resource link.
CUNA CEO search process begins
WASHINGTON (9/14/09)--Credit Union National Association (CUNA) Chairman Kris Mecham Friday announced the formation of a search committee to begin the process of finding a successor to outgoing CUNA President/CEO Dan Mica.
The action comes after Mica informed the CUNA board on Aug. 27 that he plans to step down in January 2011 after serving in the position for 13 years.
"Dan Mica has been an outstanding leader for CUNA," said Mecham, who is also CEO of Deseret First CU, Salt Lake City, Utah. "To say he leaves big shoes to fill would be a vast understatement. But the committee I am appointing today is up to the challenge of finding a successor who will build on Dan's accomplishments and take CUNA to the next level."
The search committee consists of a chairman and four representatives from each of the four classes of CUNA directors: Class A (CUs with fewer than 20,000 members); Class B (20,000 to 73,999); Class C (74,000 and above) and Class D (state league presidents). Additionally there is one at-large member.
Serving on the committee are:
- Harriet May, CEO, GECU, El Paso, Texas (chairman);
- Patricia Wesenberg, CEO, Central City CU, Stevens Point, Wis. (Class A);
- Eugene Foley, CEO, Harvard University Employees CU, Cambridge, Mass. (Class B);
- Tom Dorety, CEO, Suncoast Schools FCU, Tampa, Fla. (Class C);
- Brett Thompson, CEO, Wisconsin CU League (Class D);
- Rudy Hanley, CEO, Schools First FCU, Santa Ana, Calif. (At-Large).
Also, Kris Mecham as CUNA chairman will serve ex officio on the committee; Dan Mica will also be an ex officio member and will serve as the committee's liaison to CUNA management.
"I have directed the search committee to begin its work immediately; its first task will be to select an executive search firm," Mecham added.
New fair lending guidance may help CUs comply
ALEXANDRIA, Va. (9/14/09)--National Credit Union Administration Chairman Deborah Matz on Friday encouraged credit unions to use recently updated interagency fair lending examination procedures to design "appropriate compliance programs" that will meet the standard of "all laws and regulations applicable to fair lending."
The regulatory alert, which is accompanied by updated interagency guidance that was first published in 2000, addresses some of the "risks and potential fair lending implications associated with using brokers or other third party entities for various aspects of lending operations."
The guidance also contains best practices for ensuring that lenders are not steering borrowers to higher priced loan products.
According to the NCUA, the guidance, which was jointly issued by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Office of Thrift Supervision, and the NCUA, also addresses practices aimed at detecting disparities in loan pricing.
For the NCUA regulatory alert and the interagency guidance, use the resource link.
Inside Washington
- WASHINGTON (9/14/09)--Government intervention in the financial crisis saved the economy, said Treasury Department officials Thursday at a hearing before the Troubled Asset Relief Program's Congressional Oversight Panel (American Banker Sept. 11). Treasury Secretary Timothy Geithner said the programs that have been in place since the government bailed out the nation's banks have stabilized the financial system. Many of the programs are winding down now, he added. Elizabeth Warren, the panel's chair, said troubled assets are still a problem at small banks. The risk is unknown and unresolved, she said. Geithner also noted that he doesn't want to give the impression the nation is not still facing economic challenges. However, he said the government would not repeat "classic errors" of economic policy." His statements came after the Federal Deposit Insurance Corp. said it would end a program to guarantee bank debt Oct. 31. The Treasury's guarantee program for money market mutual funds will end Friday ...
- WASHINGTON (9/14/09)--The Federal Trade Commission has scheduled a two-day roundtable Sept. 29-30 to discuss consumer protection issues in litigation and arbitration proceedings to collect on consumer debt. The first day of discussion will cover the role of consumer choice, perceptions of bias, transparency of results, post-decision issues and future directions in arbitration of consumer debts. The second day will focus on consumer debt collection litigation proceedings ...
Heins wins Wegner Award for Lifetime Achievement
MADISON, Wis. (9/14/09)--Retired CUNA Mutual Group President/CEO Dick Heins will be the 22nd Wegner Award honoree for Lifetime Achievement, bestowed by the National Credit Union Foundation (NCUF).
The lasting impressions of Heins are those of being an innovative thinker, independent leader, tenacious motivator, life-long learner and model credit union movement executive, NCUF said.
Heins' award will be one of four awards presented at the 22nd Annual Wegner Awards Dinner hosted by the NCUF on Feb. 22. The dinner will take place on the Monday night of the Credit Union National Association's 2010 Governmental Affairs Conference. Online registration will be available later this year on NCUF's website.
"Throughout his life, when teaching his students and challenging the credit union community, Dick Heins has pushed us all to see beyond what is there and explore new possibilities," said NCUF Awards and Recognition Committee Chairman Bob Schumacher. "Dick is one of those unassuming gentleman who believes in ideas, then pushes himself and those around him to make the world a better place."
Among Heins' achievements at CUNA Mutual:
- Conceived and developed a program so credit unions could write loans for families paying as little as 5% down. Heins' risk management tool guaranteed lenders the other 15% in case of default. Today, Heins' invention is known as Private Mortgage Insurance or PMI.
- Led the development of a brokerage of insurance products for CUNA Mutual and CUNA Mutual Insurance Society (CUMIS) that broadened the offerings of CUNA Mutual Group and increased collateral protections for credit unions and their members.
- Participated in the design and implementation of the original CUMIS Bond to replace the bond program of Employers Mutual. The CUMIS Bond became the fidelity bond coverage for nearly 100% of U.S. credit unions.
- Led the development of CUNA Mutual Group's expansion in delivery of direct response marketed products to credit union members. These products include life insurance, property and casualty insurance, and investment opportunities through joint ventures with large national providers including Capital Holding Group, Colonial Penn, and T. Rowe Price.
- Initiated a marketplace internship program to give CUNA Mutual management employees experience working at credit unions.
Heins recognized that as a cooperative insurance provider for credit unions and their members, CUNA Mutual must be actively involved in dealing with challenges and opportunities facing the credit union movement. Practicing cooperative principles including concern for community and member education, Heins helped change credit union history, NCUF said. Some examples include:
- Preserving the independent regulator--When legislative proposals threatened credit unions' independent regulator, Heins provided financial support that made possible the Operation Grassroots Campaign. Organized by the Credit Union National Association (CUNA) and 50 state credit union leagues, the year-long campaign culminated in more than 15,000 credit union supporters rallying in front of the U.S. Capitol to support preservation of an independent National Credit Union Administration. Had Operation Grassroots not succeeded, losing the independent regulator would likely have led to a merger of the National Credit Union Share Insurance Fund into the now-defunct Savings Association Insurance Fund.
- Advancing philanthropy--Heins recognized the need for the U.S. credit union movement to benefit from a philanthropic entity. He was instrumental in creating the National Credit Union Foundation.
- Promoting education--Heins also recognized the importance of two educational initiatives that still exist today. He was a strong supporter of NCUF's Credit Union Development Education program as well as the National Youth Involvement Board. He promoted these two programs because he believed in educating future leaders on credit union philosophy and pooling credit unions' resources to improve financial literacy of our nation's youth.
- Providing thought leadership--Filene Research Institute's i3 Group was inspired by a casual comment Heins made, according to Filene Executive Director Mark Meyer. Heins continues to serve on Filene's Administrative Board as director emeritus.
- Strengthening unity--Under Heins' leadership, CUNA Mutual Group "forged a lasting partnership with the state credit union leagues around the country that continues to reap benefits for credit unions and their members today," said Susan Newton, executive director of the American Association of Credit Union Leagues. Heins was first to appoint a league research and advisory committee to build and maintain relationships between CUNA Mutual and the leagues. Twice a year, the committee held strategic discussions on credit union issues, which Heins used as a sounding board for new ideas and initiatives.
- Rebuilding credit unions--After decades of Communist suppression of the credit union movement in Poland, Heins was involved in supporting the redevelopment of Polish credit unions. He personally donated $40,000 to the Polish credit union community, and worked directly with President Lech Walesa and the new Solidarity-led coalition government to establish a sound framework for Polish credit unions to thrive again.
Heins personally endowed the University of Wisconsin's Richard Heins Chair of Risk Management and the Eugene Farley League Leadership Award, which is presented annually during CUNA's Governmental Affairs Conference.
This year, Heins contributed another $50,000 to keep the Farley Awards program alive for another 20 years, NCUF said.
CU’s “Project Flipside” draws Generation Y
BUCKS COUNTY, Pa. (9/14/09)--Bucks First FCU has launched "Project Flipside" to attract members of Generation Y to the credit union. Since June 1, Bucks County, Pa.-based Bucks First has opened about 50 new Flipside accounts.
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Bucks First CU launched "Project Flipside" to attract members of Generation Y to the credit union. From left are the Flipside crew members: Alex, Zach and Antonio. (Photo provided by Bucks First CU) |
"We deem this project one of the most successful programs we've ever created," Reed told News Now. "We've been able to reach hundreds of youth as well as parents, from community events to high school classes and college orientations.
"You know it's successful when a kid tells their friends about it," she added. "For us, harnessing the power of word of mouth was a big goal and we feel we've definitely achieved it, and this is only the beginning."
The difference between the project and other programs is that everything ties back to education. For instance, the program offers youth the ability to "flip their fees" by attending a personal financial literacy class to lift their non-sufficient funds fees. During the last class, a credit union representative asked the students how they accumulated their fees, and then talked with them to try and figure out how to save and budget, Reed said.
The project also employs the Flipside Crew, which consists of three young individuals who promote the program. The crew has posted more than 80 blogs and made more than 270 Facebook friends. They regularly post videos, including a recent rap video (use the link), that offer educational components. They've also attended more than 30 community events to promote the project.
Crew members have no hourly requirements, but spend about 15-20 hours per week blogging and attending events. This summer, Bucks First sponsored a concert series at a local mall where crew members regularly appeared.
Crew members receive a digital camera, a car to use, and a monthly stipend. To become a crew member, individuals submit a video. They are chosen for their communication skills, video editing skills and personality. The crew works for Bucks First for about one year, and then a new group is chosen.
Bucks First researched the project for about one year before launch and executed it with three marketing staff members in-house. It spent very little on advertising.
"You don't need an agency to do this," Reed said.
The project is especially good for small credit unions that can't afford to hire an advertising agency. Bucks First relied mainly on word-of-mouth advertising and its strong relationships with local schools, including high schools and colleges, she said.
The biggest challenge credit unions could face when undertaking a project like Flipside is board approval.
"It's tough to show the return on investment," Reed said. "But the key is to convince boards that the results show for themselves."
She advised credit unions to be involved with the community, and spread the word by mouth. Even if it takes awhile, the project will come to fruition, she said.
Ga. CU loans save members $70 million
ATLANTA (9/14/09)--Loans issued by Georgia credit unions saved their members roughly $70 million during the first half of this year compared to banks, according to Georgia Credit Union Affiliates' (GCUA) Georgia Credit Union Benefits Index.
The report serves as a barometer to help Georgia consumers make informed personal financial decisions, GCUA said.
"The index shows credit unions saved Georgians more than $138 million on an annual basis from lower interest rates, higher rates on savings and lower fees," said Michael Mercer, GCUA president/CEO.
The loans issued by Georgia credit unions were for consumer purchases, including new and used vehicles, mortgages, home equity lines of credit and credit cards.
Other statistics from the report:
- Loans totaled more than $2.1 billion in the first half of 2009;
- Average loan amounts were $12,416 compared with $11,557 in 2008;
- Higher rates on savings products yielded $32 million in savings for members compared with banks;
- Auto loan rates for new cars were 5.54% for 60 months, compared with 7.14% at banks;
- Auto loan rates for used cars were 5.71%, compared with 7.74% at banks; and
- Average rates for credit cards were 11.7% for credit unions, compared with 12% at banks.
For more information, use the link below to access the GCUA site.
Savings push leads to CUs reviving Christmas clubs
MADISON, Wis. (9/14/09)--With more Americans increasing their personal savings in a troubled economy, credit unions and banks are helping to revive a concept that was thought to be defunct--the Christmas club account.
Holiday savings clubs--along with layaway plans, which also are making a comeback--have once again become desirable to consumers coping with rising unemployment and uncertainty regarding the economy, Steve Rick, senior economist for the Credit Union National Association, told the Associated Press Thursday.
"It's a throwback to a bygone era," Rick told the news service.
"Instead of a general savings account, it's a way to focus the mind on what you really want to do, just like a college account," Rick added.
Roughly 78% of member credit unions run holiday savings clubs, and interest has spiked this year, Rick told the news service.
The clubs most often are offered by credit unions, and small and mid-sized banks, the Associated Press said.
For the complete story, use the link.
Officers shoot and kill CU robber
SHORELINE, Wash. (9/14/09)--One man was arrested and another shot and killed in the aftermath of a credit union robbery Thursday near Seattle.
James Bartlow, 47, was arrested in connection with the robbery of an Alaska USA CU branch in Shoreline, Wash., according to FBI agent Mary Prewett. The dead man was not immediately identified (Associated Press Sept. 11).
The FBI believes that Bartlow and the second man committed four bank robberies and one attempted robbery that the bureau attributed to a robber dubbed the "Fashion Faux Pas Bandit."
After the robbery, witness followed the two men to a parking lot about 10 blocks from the credit union and called in the location to police, the FBI said.
When King County sheriff's officers arrived, they confronted a man with a gun, and three officers fired at him. The man died on the way to a local hospital, the FBI said. A stun gun was deployed to take the second man into custody. All three officers were placed on administrative leave, a sheriff's spokesman said.
Alaska USA FCU, based in Anchorage, Alaska, has $3.984 billion is assets.
US FCU exec flies for veterans
BURNSVILLE, Minn. (9/14/09)--Bob Stowell, US FCU senior vice president
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Bob Stowell, US FCU senior vice president and chief operations officer, flew his plane with Liz Strohfus, 89, a women's air service pilot in World War II. (Photo provided by US FCU) |
Stowell, a Vietnam veteran and law enforcement official, announced the start of the 75-mile ride from the air. He piloted his plane with Liz Strohfus, 89, a women's air service pilot in World War II.
"I rarely miss a chance to support our men and women in uniform," Stowell said. "It's the least I can do for those who have given us so much."
Harley's Heroes is a national effort, coordinating rides nationwide at more than 175 Harley-Davidson dealerships. The events pay tribute to veterans and those currently serving in the military, police, firefighters or other public servants.
US FCU has $802 million in assets.
CU wheelchair robber with hoax bomb to serve 3 years in prison
MELBOURNE, Fla. (9/14/09)--A paraplegic who attempted to rob Merritt Island Space Coast CU was sentenced to 34.5 months in prison after pleading guilty to robbery charges. The man, Christopher Reed, also was charged with possession of a hoax bomb.
Reed entered Space Coast CU Nov. 14 and demanded money after telling employees he had an explosive. Police found him 10 minutes after he left the credit union. Reed told police he had given the cash to two unknown individuals who had threatened him with a gun and told him to rob the credit union (Florida Today Sept. 9).
Police found a bottle of vodka in Reed's wheelchair and money inside his prosthetic leg. Reed had his leg amputated about six weeks before the incident and was taking prescription drugs, the newspaper said.
Robbery and possession of an explosive are second-degree felonies and punishable by up to 15 years in prison for each offense. Reed's plea agreement allowed him to limit his prison term to no more than six years.
CU System briefs
- TREVOSE, Pa. (9/14/09)--TruMark Financial CU, Trevose, Pa., was recently named as one of the best places to work in Pennsylvania for the large company category. The award recognizes employers that benefit the state's economy, workforce and business. The awards program is sponsored by the Team Pennsylvania Foundation, the Pennsylvania Department of Community and Economic Development, the Pennsylvania Chamber of Business and Industry and the Central Penn Business Journal. Workplaces are picked as "best places to work" based on policies, practices, philosophies, systems, demographics and an employee evaluation. TruMark has more than $1.2 billion in assets ...
- JANESVILLE, Wis. (9/14/09)--The Delavan branch of Blackhawk Community CU sponsored a school supply drive for the Delavan-Darien school district of Wisconsin for the third consecutive year. The theme this year was "Cram the Van." The credit union garnered enough school supply donations--2,353 items--to fill two vans. Kunes Country Chevrolet/Ford furnished two vans at the credit union to fill with supplies. Two Blackhawk staff members, JoAnne Wilson and branch manager Kelly Herwald, divided the supplies and delivered them to schools. Blackhawk Community CU, Janesville, Wis. has more than $320 million in assets ...
- ALBERTA, Canada (9/14/09)--Servus CU of Alberta, Canada, is opening a new branch Sept. 28 and plans to partner with Strathcona County Library (Sherwood Park News Sept. 9). Each time a member under age 18 opens an account at the branch, they can choose a book that the credit union will donate to the library in the member's name. The partnership is a great lesson for youth to learn about savings, the value of a dollar and how it's tied to literacy, said Muriel Abdurahman, Strathcona County Library chair. Servus CU also plans to provide a yet-to-be-determined corporate donation to the library. The money will help the library pay for its new location, updating computers and equipment, and programming ...
Market News
MADISON, Wis. (9/14/09)
- The U.S. economy's movement out of a recession will happen at faster rate than previously expected before it slows due to the end of the government's auto rebate program acting as a drag on consumer spending, according to a survey of economists. From July through September this year, the economy will increase at a 2.9% annual rate--compared with a forecast of 2.2% the previous month--according to median estimates of 61 economists surveyed in a monthly Bloomberg News survey. For the last quarter of 2009, growth is forecast to slow to a 2.2% pace, the survey indicated. An unemployment rate that soared to a 26-year high last month and a record drop in borrowing by Americans suggests that business and government spending--rather than consumer spending--will shape the strength of the economic recovery, analysts said. (Bloomberg News Sept. 11) ...
- U.S. consumer confidence increased more than forecast in September due to a reduced pace of job losses and signs of recovery, analysts said. The Reuters/University of Michigan preliminary index of consumer sentiment rose to 70.2 in September--exceeding the 67.5 forecast in the Bloomberg survey of economists-- from 65.7 in August. Consumers are more optimistic after going through a record diminution of wealth and the slump in home and stock prices, analysts said. However, consumers still may be reluctant to increase their spending--which constitutes 70% of the US. economy--as they focus on paying down debt and bolstering their savings, analysts said (Bloomberg.com Sept. 11) ...
News of the Competition
MADISON, Wis. (9/14/09)
- Prices of U.S. imports rose a higher-than-anticipated 2% in August, according to a report by the Bureau of Labor Statistics. Import prices have risen in all but two months this year. Excluding fuels, import prices increased 0.4%--the largest amount since 2008--compared with -0.2% in July. Small increases in import prices--excluding fuels--if sustained, are good--as there is still a risk of significant disinflation, analysts said. Due to escalating unemployment and a substantial output gap, inflation is not an immediate concern, they added (Moody's Economy.com Sept. 11) ...
- Fannie Mae is speeding up its funding in mortgage-backed transactions to hasten turnaround for lenders amid scant U.S. warehouse lending. Warehouse lending is a line of credit extended by a financial institution to a loan originator to fund a mortgage that a borrower initially used to buy a property. The loan typically lasts from the time it is originated to when the loan is sold into the secondary market, whether directly or through a securitization. Fannie is not intending to get into the warehouse lending business, but is looking at ways to provide support for warehouse lending due to a request from its regulator--the Federal Housing Finance Agency--and the Treasury Department, said Michael Williams, Fannie president/CEO (National Mortgage News via American Banker Sept. 11) ...
New initiatives aim to boost retirement savings
NEW YORK (9/14/09)--New initiatives announced this month by President Obama and Treasury Secretary Timothy Geithner will make saving for retirement a lot easier and more automatic, particularly for the estimated 78 million working Americans--approximately half the workforce--who don't have a retirement savings plan at work (The New York Times Sept. 6).
A White House document released Sept. 5 outlines four steps, effective immediately, to expand the range of retirement savings options for workers:
- Streamline automatic enrollment. Behavioral research indicates that workers are more likely to contribute to a retirement plan if they're automatically enrolled. Although many large- and medium-size companies already have adopted automatic enrollment, the new initiatives target very small firms that often use a simpler system called the "simple I.R.A." Watch for new guidelines from the Labor Department on how small businesses can use automatic enrollment, and how to institute an automatic "step up" to increase the worker's savings rate each year or with each pay raise. Workers can opt out of automatic enrollment or stop the increases at any time.
- Redirect tax refunds. Beginning in early 2010, taxpayers can check a box on their tax return and use their refund to purchase U.S. savings bonds, which will be mailed to the taxpayer. Beginning in 2011, taxpayers can add co-owners, such as children or grandchildren, to the bonds purchased with tax refunds.
- Convert unused vacation or leave. Rather than receive cash for unused vacation and similar leave when leaving a job, employers can allow employees to contribute those amounts to their 401(k) plan.
- Use plain language. To help workers understand the confusing rules governing retirement plans when changing jobs, the Treasury Department and the Internal Revenue Service are publishing an easy-to-read, plain-English guide. This road map explains how to transfer plan balances, what key decisions need to be made, and what the tax consequences are for each decision. Look for new user-friendly website materials, too, at irs.gov/retirement.
For more information, read "HR an Essential Member of Your Retirement Planning Team" in Plan It: Retire Ready Toolkit.
Wesabe, Addison Avenue FCU deliver springboard app
SAN FRANCISCO (9/14/09)--Addison Avenue FCU and Wesabe are partnering to offer the credit union's members access to a customized version of the Wesabe Springboard Community Application, which was launched in March.
The customized application for Addison Avenue provides members with a dashboard view of their account data and personal finances, guiding them toward value, savings and goal completion, and away from poor financial decisions.
It also includes a community feature that lets members help each other by anonymously sharing advice, support and tips for getting the most value for their money.
"In the current economic climate, it's important to have someone to turn to for advice," said Marc Hedlund, Wesabe CEO.
Credit unions can implement Wesabe Springboard through a Web services architecture or through a fully hosted Web personal financial management solution. Wesabe works with .Net and Java.
Addison Avenue FCU, Palo Alto, Calif., has more than $2.3 billion in assets. Wesabe is a money management tool.
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