How The National Financial Co-operatives Group Benefits Plan Works

Organizational Structure

Pricing - How are Credit Union Premiums Calculated In The National Financial Co-operatives Group Benefits Plan?

Participating credit unions benefit from the two-tiered pricing structure of the National Financial Co-operative Employee Benefits Plan. This approach provides participating credit unions the benefit of large group pooling while maintaining market-competitive pricing.

Annual Credit Union premiums are calculated in two tiers:

1. Tier One - The National Committee examines the 10,000 group claims experience and demographics (age, gender, salaries) to evaluate overall performance of the group life and long-term disability plans. The National Committee then makes its decisions on premium and coverage changes for the upcoming year.

2. Tier Two - Individual credit union demographics are then examined to establish the credit union’s premiums requirements for the upcoming renewal year.

NOTE: Individual credit union life and long-term disability claims experience does not impact the credit union’s premiums directly. The life and LTD claims experience is examined at the national level and built into the pricing. Only the demographics (age, gender, salaries) are used to determine life and long-term disability premiums of the individual organization.

Can My Credit Union Influence the National Financial Co-operatives Group Benefits Plan?

Constant upgrading of coverage is something the National Financial Co-operatives Employee Benefits Plan has the power to do because it is controlled by the credit unions that participate in it.
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