Built for Co-ops
Homestead Advisers was founded in 1990 by the National Rural Electric Cooperative Association (NRECA) to provide affordable, high-quality asset management to rural America. Homestead Advisers is an extension of the cooperative network — a strategic partner that understands the unique financial challenges facing cooperatives and their employees. We develop custom solutions based on the real challenges faced by cooperative leadership.
Resources Available to Your Cooperative
As a board director, you’re faced with challenges that affect your cooperative’s long-term sustainability, workforce stability, and member value.
Homestead Advisers offers programs in three key areas:
- Workforce Compensation Programs
- Financial Resilience and Management
- Community Investment and Cooperative Value
Watch Now: A Conversation with NRECA’s Pat Mangan
Homestead Advisers’ CEO Mark Santero and NRECA’s Pat Mangan discuss how these programs help cooperatives navigate today’s challenges.
Below you’ll find detailed information about how each of the programs can support your cooperative’s strategic priorities.
Available Resources
Workforce Compensation Programs
The board oversees compensation strategies, retirement plans, and benefits that enable your cooperative to attract, retain, and motivate qualified employees within budget constraints.
More Information (click to expand)
Available Programs
Deferred Compensation Plans allow your cooperative to provide supplemental retirement benefits to key employees while managing cash flow timing. These plans can support succession planning and executive retention strategies.
The Short-Term Incentive and Retention Program for Employees helps cooperatives implement performance-based compensation or retention bonuses tied to organizational goals or tenure commitments. These programs can address specific workforce challenges or reward the achievement of strategic objectives.
The Employer-Sponsored Savings Program helps employees build emergency funds through a post-tax savings benefit with employer matching contributions (up to a defined limit). This program may help reduce financial stress that can affect productivity and safety while fostering employee loyalty by demonstrating an investment in their financial well-being.
Retiree Medical Plans (FAS-106) assist cooperatives in funding post-retirement medical benefits for retirees.
Considerations
- Are your compensation and benefits competitive enough to attract and retain qualified employees?
- Does your benefits strategy balance member rate impact with workforce sustainability?
- How are you addressing long-term retiree healthcare liabilities?
- Do compensation programs align with organizational performance and strategic goals?
Financial Resilience and Risk Management
Directors help to ensure adequate reserves for operational emergencies, major storms, and unexpected system challenges while maintaining reasonable rates for members.
More Information (click to expand)
Available Programs
Disaster Reserve Accounts provide designated funding for storm response, emergency repairs, and system restoration. Proper reserves can help provide a buffer against rate volatility following major events and support rapid response capability.
Entity Accounts offer investment options for general cooperative reserves, operating funds, or other organizational assets. These accounts can be invested in the Homestead Funds, our family of professionally managed mutual funds, which offer a range of investment options across the risk–reward spectrum.
Considerations
- Are your compensation and benefits competitive enough to attract and retain qualified employees?
- How quickly could your cooperatives respond financially to a major storm or system failure?
- Is your reserve investment strategy appropriate for your liquidity needs and risk tolerance?
- Could your cooperative manage cash flow in the event of an extended delay in FEMA reimbursement?
Community Investment and Cooperative Value
The board assists in how the cooperative invests in community development, economic viability, and programs that benefit the members beyond electric service.
More Information (click to expand)
Available Programs
Community Purpose Accounts provide a structure for managing funds dedicated to community development, economic development initiatives, charitable programs, or member assistance. These accounts allow cooperatives to formalize their commitment to community investment while maintaining appropriate oversight and accountability.
Considerations
- How does your cooperative demonstrate the cooperative principle of “concern for community”?
- What programs or investments provide value to members beyond reliable electric service?
- Are community funds managed with appropriate governance and transparency?
Homestead Advisers provides consulting services only and does not sponsor the plans or act as a plan administrator.
Next Steps
Your cooperative’s CEO can provide the board with additional information about any of these programs, including design, structure, and implementation considerations. We’re available to present to the board to discuss these programs in depth and address any questions or concerns.
Your Relationship Manager can assist you with questions you may have about the programs.
Brian Allen
NATIONAL RELATIONSHIP MANAGER; INVESTMENT ADVISOR REPRESENTATIVE; AND REGISTERED REPRESENTATIVE
Mark Edwards
REGIONAL RELATIONSHIP MANAGER; INVESTMENT ADVISOR REPRESENTATIVE; AND REGISTERED REPRESENTATIVE
Stephanie Taylor
REGIONAL RELATIONSHIP MANAGER; INVESTMENT ADVISOR REPRESENTATIVE; AND REGISTERED REPRESENTATIVE
Homestead Advisers and Homestead Funds do not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.
