IRA Certificate Advisory

We are issuing this advisory because some credit unions have notified us that some IRA certificates did not renew as they should. After researching the issues, we found that in these cases that the Automatically Renew Upon Maturity check box had not been selected in the IRA Certificate Setup. If the Automatically Renew Upon Maturity check box is not selected, this indicates to the system that the certificate has matured and the credit union is going to take some 'manual' action.

The year-end release for 2008 (CAMS-ii version 2.8.0) created a New IRA Account Defaults section in the Control-IRAs parameters (Back Office > Standard > Parameters > Control-IRAs) so credit unions could establish default values for the New IRA Certificate Setup. These default values appear when new IRA certificates are opened so that some of these critical items are not missed. After the release installed, credit unions had to set up their respective defaults.

If you have not set the New IRA Account default values, we encourage you to do so. When you choose the default settings that you want to use, they will appear every time that you set up a new IRA certificate. In exceptional cases, you can still choose the other, non-default settings in the New IRA Certificate Setup screen. Therefore, you are not limited to only those default settings.

CAMS-ii also produces a monthly Certificate Maturity Report (CU$MATURE) that shows any IRA certificates that have matured or are about to mature. This can can help you identify any IRA certificates that are nearing maturity or have matured that should have been set for automatic renewal.

Please address any questions on this advisory to the CBS Issue Tracking System.