Executive Benefits: Overview of Newly Issued Guidance for NCUA 701.19

About the Webinar

After several years in the making, the NCUA recently published its guidance for examiners on Section 701.19. Under this regulation, a federal credit union may hold otherwise impermissible investments if the investment is “directly related” to the credit union’s obligations or potential obligations under an employee benefit plan. The guidance addresses due diligence and direct relationship requirements, in addition to concentration limits for typical investments and individual insurers.

BFB Gallagher partners with the law firm of Sherman & Patterson to ensure federal and state compliance on every proposal, guidance, or regulation affecting executive benefits for nonprofits. The Minneapolis-based law firm represents credit union interests to regulatory agencies and examiners. Jim Patterson will explain the implications of the guidance and what action, if any, you should take now.

The new guidance is available here


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About the Presenters

Kraig Klinkhammer, Chief Operating Officer, BFB Gallagher
Kraig Klinkhammer, Chief Operating Officer, BFB Gallagher

Kraig Klinkhammer has 20 years of experience in executive benefits, asset management, and various applications of life insurance and financial planning. As BFB Gallagher’s chief operating officer, Kraig ensures our clients’ benefit and investment programs run smoothly, from design to ongoing service. He sets the pace for staff goals, developmental training, and forward-looking corporate initiatives. Kraig also manages our investment and portfolio strategy, working closely with asset management firms, life insurance companies, and other financial service organizations to ensure clients have access to a wide variety of compliant solutions.

Prior to joining BFB Gallagher, Kraig served as manager of the bank-owned insurance portfolio for a large regional bank where he was responsible for the oversight of insurance investments exceeding $5 billion. In this role, he was also responsible for budgets, forecasted revenue/expenses, cash flow management, P&L impact, Sarbanes-Oxley/GAAP compliance and financial account procedures.

Kraig earned his Master of Science in Financial Analysis and Bachelor of Science in Finance-Law from Portland State University in Oregon. He holds an insurance license as well as FINRA series 7, 63, and 65 licenses. Kraig lives outside of Portland, Oregon, where he and his family enjoy exploring the coastline and new local restaurants.

James Patterson, Partner at Sherman & Patterson

Jim focuses significant time on regulatory work within the credit union industry, having talked with many of the state regulators in the 46 states that have state-chartered credit unions, as well as consistent contact with regulators at the National Credit Union Administration. Jim’s practice also includes drafting employment agreements and severance plans that integrate nonqualified deferred compensation concepts with other issues relating to an individual’s employment.