How a Credit Union Improved the Stability, Predictability, and Value of its Plan by Partnering with October Three
Learn how October Three helped a regional credit union transform its defined benefit plan for stability, cost predictability, and enhanced employee value.
Situation
Facing rising pension costs and mounting financial volatility, a credit union recognized that its traditional defined benefit (DB) plan was no longer sustainable for the long term. At the same time, it was navigating a fiercely competitive labor market and sought a retirement solution that could help attract and retain top talent.
Leadership remained deeply committed to employee retirement security but needed a strategic shift to regain control over escalating expenses.
Approach
October Three’s solution was a carefully tailored plan restructuring. Working closely with leadership, the team transitioned the organization to a market-based cash balance plan, offering significant improvements to cost predictability while preserving lifetime income for employees. To further enhance the benefits package, a retiree medical account was added, boosting the total rewards offering and increasing employee value.
Results
The impact was immediate and measurable:
Annual cost volatility (previously fluctuating by up to 30%) was eliminated
Control of long-term expenses was regained through a more sustainable plan design
The modernized benefits package strengthened recruitment and retention, positioning the credit union as an employer of choice
Employees retained access to secure lifetime income, reinforcing organizational values and employee trust
By modernizing its retirement program, the credit union aligned its financial strategy with the needs of its workforce. The result was a win for both the organization and its people.
Actuarial Services for Your Business
October Three offers full-service actuarial support, covering everything you need to manage your plan efficiently. Call our team today to learn how our actuarial services can help mitigate risks associated with your retirement plans.