Split-Dollar Plans OK'd
ALEXANDRIA, Va.-A federal credit union may use so-called split-dollar life insurance to fund employee benefit obligations, according to NCUA in a new legal opinion letter. Under split-dollar insurance, the policy is owned by the employee and paid for by the credit union, which treats the obligation as a nominal loan to the employee, in order to conform to IRS regulations to obtain favorable tax treatment. The agency also confirmed that the split-dollar arrangement also complies with NCUA's rules and regulations covering benefits for employees.
CMG Conversion Is On
MADISON, Wis.-CUNA Mutual group said it signed with Universal Conversion Technologies to help it convert from two legacy policy administration systems to Professional Data Management Again Inc.'s LifePRO platform. The conversion is scheduled to begin this month and be completed by June, with 32,000 policies for hospital indemnity protection and hospital accident protection. The Life70 conversion is scheduled for completion in April 2006 and will include 290,000 life policies.