Pre-Purchase Analysis of Investments for Employee Benefits

A thorough pre-purchase analysis should be conducted to help ensure your credit union and board of directors understands the risks, rewards, and unique characteristics of the investments that fund your employee benefits. The nature and extent of your evaluation should correspond with the size and complexity of the investments under consideration. You should also consider existing investments for employee benefits holdings. Finally, be sure to maintain adequate records concerning your pre-purchase analysis, including documentation of the purpose and amount of investments needed.

Your credit union should evaluate the risks and rewards of investments for employee benefits through a variety of activities. The nine steps outlined in this whitepaper offer an approach that can result in a more comprehensive and effective pre-purchase analysis.