Liz Santos, Chief Consulting Officer, The Sheeter Group
I purchased my 2002 Jeep Wrangler through my credit union’s new car buying service. With almost 210,000 miles, there are a few signs of 
old age — the radio stopped working years ago and the green paint has faded to grey. I live in Washington, DC so this city Jeep doesn’t see the great outdoors like the television ads, climbing mountains or crossing rivers. I’m often asked how I keep the Jeep in great shape. Aside from avoiding potholes, the key is regular, purposeful maintenance.
Your executive benefit plans carry far greater value than my old Jeep, but the maintenance schedule is similar: annual servicing and periodic full inspection. Your plan’s Annual Review is like a car’s annual preventive service, like checking the oil and replacing filters. The Annual Review is often a status update with year over year performance tracking.
Conducted every few years, a Plan Audit is like the full inspection of all vehicle systems like the engine, frame, transmission, and more. The mechanic takes the Jeep on the road and highway to stress test all components. Over the decades, the full inspection has uncovered issues like frayed wiring and deteriorating belts. A Plan Audit is completed every three to five years or triggered by some event like a leadership change, merger, or regulatory update.
In practice, a well-serviced executive benefits plan gets both: Annual Reviews to keep tabs on funding and administration, and periodic Plan Audits to help ensure the foundation underneath is actually sound.
Your existing executive benefit plans are long-duration, high-stakes promises with significant regulatory and financial impact. Failing to periodically audit these plans — a “set it and forget it” approach — is one of the common ways credit unions end up with compliance exposure or funding shortfalls they didn’t see coming.
How a Plan Audit Serves Your Credit Union and Executives
From the credit union’s perspective, periodic Plan Audits review several key elements of a well-designed executive benefits plan, including:
- Regulatory and compliance risk – A plan design compliant at implementation may have drifted out of compliance as regulations or circumstances have changed.
- Funding adequacy – Investment or policy performance may have drifted from the original projections and assumptions.
- Alignment with strategic goals – Plan designs incorporate retention and succession goals at a point in time. Leadership or strategy changes can render the design misaligned with today’s needs.
- Competitiveness – A plan that was competitive five years ago may now be below market, undermining the retention purpose it was built for.
From the executive’s point of view, a periodic Plan Audit matters just as much, though the concerns may be different:
- Benefit security – Is the benefit on target to deliver in whole and on time?
- Compliance, including Section 409A – If a plan document has a drafting flaw, the executive could owe immediate income tax and penalties.
- Change-in-control and succession scenarios – If the credit union is considering a merger, or if there are leadership changes, an audit clarifies how the plan treats those triggers.
- Tax and estate planning – The executive and their own advisor confirm the plan still fits their broader financial picture, rather than assuming a plan designed a decade ago still makes sense today.
Upcoming Webinar
Plan Audits should be conducted by a seasoned executive benefits and compensation firm, with experience in leading clients through various financial and regulatory landscapes (the good and the bad). The Sheeter Group has served credit unions since 2004 … that’s two full decades of full inspections and finding fraying wires!
To dig into more about Plan Audits, join my colleague Troy Allen for an upcoming webinar. He’ll share what Plan Audits often uncover and best practices to prepare. Troy consults with credit union boards and executives on retention strategies, performance incentives, and funding solutions. He doesn’t drive a Jeep, but I’d say he’s a pretty great guy.
Executive Benefits: Auditing Your Plan for Performance and Compliance
Wednesday, October 28, 2026
2:00 pm–2:45 pm CT
Registration: https://bit.ly/TSGwebinar1028
If you can’t join us on October 28, register anyway so you’ll receive a link to the recording.
