Question 1

What is an SPGA?

Accepted Answer

A Single Premium Guaranteed Annuity (SPGA) is a fixed-rate institutional investment that provides a guaranteed interest rate for a defined term. You make a single premium payment and receive a contractually guaranteed rate of return with 100% principal protection — no market exposure, no volatility.

Question 2

How are SPGAs different from CDs or bonds?

Accepted Answer

Unlike CDs, SPGAs offer tax-deferred compound growth and are not subject to FDIC/NCUSIF concentration limits. Unlike bonds, SPGAs carry no interest rate risk to principal — your full investment is protected regardless of market movements. SPGAs also typically offer higher yields than comparable-term CDs or agency bonds.

Question 3

What documentation is included?

Accepted Answer

Every NexitIQ engagement includes a complete Master Working Document — seven governance documents customized for your credit union: Board-Chair Cover Note, ALCO Slide-Ready Summary, Supervisory Committee Briefing, Examiner Q&A Addendum, Investment Policy Insert, CEO One-Page Brief, and ALCO Memo. No other SPGA provider includes this level of governance support.

Question 4

How does the board approval process work?

Accepted Answer

We provide everything your board needs to make an informed decision: a cover note from the board chair, an ALCO summary for your investment committee, policy language ready for adoption, and a supervisory committee briefing. Our team can also attend your board meeting virtually to answer questions and support the approval process.

Question 5

What are the current rates?

Accepted Answer

Current guaranteed rates range from 5.10% (2-year term) to 5.50% (7-year term). Rates are fixed for the full guarantee period and locked at the time of funding. Contact us for the most current rate sheet.

Question 6

Is my principal protected?

Accepted Answer

Yes — 100% of your principal is protected for the full term. Your investment earns a contractually guaranteed rate and will never decrease in value due to market fluctuations. Principal protection is backed by the claims-paying ability of the issuing carrier.

Question 7

What is the 10% annual liquidity provision?

Accepted Answer

You can access up to 10% of your contract value each year without surrender charges. This provides meaningful liquidity for operational needs while keeping the remainder invested at your guaranteed rate. Withdrawals beyond 10% may be subject to surrender charges.

Question 8

How are SPGAs treated for NCUA examination?

Accepted Answer

Our Master Working Document is specifically designed for NCUA examination readiness. It includes regulatory citations, risk ratings, and examiner Q&A that address common examiner concerns — carrier evaluation methodology, liquidity management, ALM integration, and governance framework. Credit unions using our documentation report smooth examination experiences.

Question 9

What carrier strength requirements do you follow?

Accepted Answer

We work exclusively with carriers that meet rigorous financial strength standards — minimum AM Best ratings of A (Excellent), strong risk-based capital ratios, and proven claims-paying history. Carrier evaluation criteria are documented in your governance package for board and examiner review.

Question 10

How long does implementation take?

Accepted Answer

From first call to funded, the typical timeline is 30 days. That includes a 15-minute overview call, delivery of your customized governance package, board presentation and approval, and funding. We handle all documentation — your team focuses on the decision.

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