The Michigan Credit Union League said the state's Department of Insurance and Financial Services issued a bulletin last week for state-chartered credit unions that clarifies permissible employee deferred compensation arrangements and investment limitations under the Michigan Credit Union Act.
Currently, MCUA permits state-chartered credit unions to buy insurance policies and other investment products to fund deferred compensation arrangements for employees as long as the arrangement does not present a risk to the safety and soundness of the credit union.
In the past, these types of arrangements were typically structured as bank-owned life insurance policies, according to the Michigan league.
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