Navy Federal Credit Union 2015 Annual Report Download - page 65

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Navy Federal Credit Union46
Deferred Compensation Plan
The Navy Federal 457(b) deferred compensation plan is a non-qualified plan that oers a before-
tax savings opportunity to highly compensated employees. The annual deferral amount allowed
mirrors the 401(k) Plan limits, and contributions held by Navy Federal earn monthly interest
based on Navy Federal’s monthly gross income divided by average earnings on assets (loans
and investments).
Non-Qualified Supplemental Retirement Plans
The non-qualified supplemental retirement plans are primarily designed to “make up” for benefits
not paid through the qualified retirement plans as a result of IRS limitations. Internal Revenue
Code Section 401(a)(17) limits the amount of compensation that can be used in a qualified
retirement plan calculation, and Internal Revenue Code Section 415 limits the amount of monthly
annuity that can be paid from a defined benefit plan.
All benefits are paid from Navy Federal’s assets and are in compliance with all federal laws and
regulations. As of December 31, 2015 and 2014, total liability related to these plans was $10.3
million and $9.6 million, respectively.
NOTE 18: RELATED PARTY TRANSACTIONS
In the normal course of business, Navy Federal extends loans and receives deposits from
credit union ocials. Credit union ocials are defined as volunteer members of the Board of
Directors and board committees, and employees with the title of Vice President and above. The
total outstanding loan balances extended to ocials as of December 31, 2015 and 2014 were
$37.3 million and $33.4 million, respectively. Total deposit balances received from ocials as of
December 31, 2015 and 2014 were $10.9 million and $9.5 million, respectively. Loans were made
at the same rates and terms as those available to all other members of the Credit Union. Deposit
accounts earned interest at the same rates provided to all other members of the Credit Union.
NOTE 19: ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)
Details of accumulated other comprehensive income (loss) are as follows:
(dollars in thousands)
Year Ended December 31, 2015
Unrecognized
Net Pension and
Postretirement
Costs
Unrealized Net
Gains (Losses) on
Available-for-Sale
Securities
Unrealized Net
Gains (Losses)
on Cash Flow
Derivatives
Total
Balance, beginning of period $ (280,360) $ 153,533 $ (33,568) $ (160,395)
OCI before reclassifications (9,085) (126,359) (27,342) (162,786)
Amounts reclassified from AOCI to:
Salaries and employee benefits 20,861 — — 20,861
Net gain on sales of investments — (21,385) — (21,385)
Interest on securities sold under
repurchase agreements and notes payable — — 22,679 22,679
Interest income on
available-for-sale securities — — (2,509) (2,509)
Net change in AOCI 11,776 (147,744) (7,172) (143,140)
Balance, end of period $ (268,584) $ 5,789 $ (40,740) $ (303,535)