UPDATE – Change to Flexible Premium Deferred Annuities

There’s an important change that will affect future premium payments that members can make on Flexible Premium Deferred Annuities issued before October 1, 2011.

Like many financial service companies, our faith-directed business has been impacted by the low interest rate environment over the last decade. We continue to seek out investments that allow us to grow while we fulfill our obligations to our members. Our Flexible Premium Deferred Annuities have a guaranteed rate of return that, in many cases, exceeds the rate of return we can earn on our members’ funds in today’s financial marketplace. Unfortunately, we do not see significant improvement on the horizon.

On Feb. 10, 2022, Catholic United Financial’s Board of Directors approved a resolution to suspend future premium payments to Flexible Premium Annuities issued prior to October 1, 2011. The Board made this difficult decision in the best interest of all the Association’s members. An endorsement that allows us to suspend the acceptance of future premium payments, effective May 1, 2022, was sent to members who own affected contracts. This change was approved by the insurance department of the state in which the annuity was issued.

This action does not affect the funds already deposited under these contracts and they will continue to earn no less than the guaranteed rate stated in each contract.

With over $1 billion in assets, Catholic United remains financially strong. We hope your financial support of our mission will continue in the years to come.

Let us help your next steps

First, please review the “Frequently Asked Questions” section below to find more details on this change.

Second, if you’d like to know the current balance of your Flexible Premium Annuity, the date and amount of your last payment, or other details, you can login to your account at my.catholicunitedfinancial.org. If you don’t have an online account yet, click on the same link to create one.

Third, if you have questions about your specific situation, your local Member Advisor can provide you with more information about your specific situation. Not sure who your local advisor is? Log in to your online account (or create one) at my.catholicunitedfinancial.org. 

How will my Flexible Premium Annuity change?

Effective May 1, 2022, Catholic United will no longer accept premium payments on your Flexible Premium Annuity.

Will this change be permanent?

While it is possible that increased interest rates in the financial marketplace may once again allow us to accept premium payments on these contracts, we don’t anticipate being able to do so for the foreseeable future.

How does this impact the current balance in my annuity?

Your current balance will continue to earn interest at no less than the guaranteed rate stated in your contract. We are only suspending future payments into these accounts.

Why is Catholic United making this change now?

Financial institutions like Catholic United have had to function in a prolonged, low interest-rate environment for nearly a decade. Your annuity has a high guaranteed interest rate that, in many cases, is greater than the rate of return we can earn on our members’ funds in today’s financial marketplace. Since Catholic United is a member-owned financial cooperative, all our members are essentially bearing the cost of these high guaranteed rates for the benefit of approximately 10 percent of our members.

Updated: 2-13/2024

*Offered by Global Atlantic Financial Group through Catholic United Financial General Agency, LLC
**Offered by United Life Insurance Company through Catholic United Financial General Agency, LLC Catholic United Financial is a member-owned, not-for-profit financial services company, connecting people of faith, protecting their future and generously impacting parishes, schools and communities.