Employee Benefit Funding Trust (EBFT) FAQs

Employee Benefit Funding Trusts

Competitive benefits packages not only help recruit and retain talent, but they align with the service culture of credit unions. With the rising costs of benefits today, credit unions are faced with the challenge of how to best fund their compensation plans.

A Employee Benefit Funding Trust (EBFT) is a sustainable funding strategy for employee benefits. Through Employee Benefit Funding Trusts, credit unions fund their employee and executive benefits through actively managed investment returns rather than operating income.

Employee Benefit Funding Trusts: More Benefits. More Fund.

Our credit union partners have offset 67% of their benefit costs through Employee Benefit Funding Trusts.

Credit Union Investment Returns with MTC

*Return comparisons are between a composite of MTC Credit Union Employee Benefit Funding Trust returns and the average return on average assets as reported by the National Credit Union Association from 2013 to 2021.

Take Advantage of the ETF Portfolio Advantage®

We tailor your Employee Benefit Funding Trusts to your needs, goals, and risk tolerance and actively manage your portfolio to reduce risk.

We provide expertise in developing your organization’s investment policy and offer customized solutions to meet your needs.
EBFTs target benefits like health insurance premiums, 401k contributions, pension contributions, sick/vacation time, etc.
Our team manages over $4 billion in assets, including $700mm in Employee Benefit Funding Trusts for credit unions across the country.
We claim compliance with Global Investment Performance Standards® (GIPS) and analyze investment risk, liquidity risk, and compliance risk.

CLICK TO VIEW EBFT FAQS

Portfolio Allocations. 1year. 3year. 5year. 10year.

*Employee Benefit Funding returns as of 12/31/21

Members Trust Company (MTC) claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. To obtain GIPS-compliant performance information for the firm’s strategies and products, please contact MTCLargentTeam@memberstrust.com.
Members Trust products are (1) Not FDIC Insured, (2) No Bank Guarantee, and (3) May Lose Value. Past performance is not indicative of future results; return comparisons are between a composite of MTC Credit Union CDA & EBFT returns and the average return on average assets as reported by the NCUA from 2013 to 2020. Composite returns are gross of management fees. For EBFTs, offset of benefit costs cited may not be representative of future benefit cost saving.

Life Insurance vs. EBFT

Helping our credit union partners give back more to the communities they serve is not just our priority today, but always.

	General Account Life Insurance	Separate Account Life Insurance	MTC Employee Benefit Funding Trust
Investment Type	Generally provides minimum interest rate guarantee	Returns are generally dependent on stock and bond market returns less applicable fees	Returns are generally dependent on stock and bond market returns less applicable fees
Return Potential	Low – 10-year treasury-like returns	Higher	Highest – between 10-year treasury and stock market-like returns
Fees	Low	Highest	Low
Income Volatility	Low	Higher, depending on underlying investment strategy	Higher, depending on underlying investment strategy but can be managed accordingly

EBFT me ASAP.

Jason Ritzenthaler, CFA, CTFA
Co-Chief Investment Officer
Director, Institutional Investments
Direct: 813-386-8705
Jason.Ritzenthaler@memberstrust.com