Why is CBIS discontinuing the checking and debit card features?
Since the introduction of the CUIT Flex Cash Fund (then called the RCT Money Market Fund), CBIS’ focus has increasingly moved toward the long-term investment needs of our participants. Simultaneously, technology has enabled banks and other high-volume investment firms to provide increasingly sophisticated account management and information tools for checking products. Rather than deploy the resources that would have been necessary to maintain a competitive banking product, we felt that it was more prudent to allocate those resources to the continued enhancement of our long-term investment program, a program that benefits CBIS participants of all sizes.
Is the CUIT Flex Cash Fund closing?
No. All accounts will remain open and the Fund will continue as a traditional money market investment option. Only the checking and debit card banking features are affected.
Is CBIS recommending a replacement?
In order to provide participants with an alternate solution, CBIS has identified one potential option at Federated Investors, a well-known money market fund provider based in Pittsburgh, PA. The Federated fund, the Federated Automated Government Cash Reserves Money Market Fund (Ticker: AGSXX), provides many features similar to Flex Cash checking accounts. Of course, participants are also welcome to find their own checking account provider if they prefer.
Do I need to use Federated? Why are you recommending them?
No. CBIS participants are free to talk with their local banks or other providers to secure a new checking solution. In our research, Federated was best able to replicate the account structures many Catholic institutions have established with the CUIT Flex Cash Fund, but we are not affiliated with them.
I don’t currently use checking or debit card services. Do I need to move my account?
No. All CUIT Flex Cash Fund accounts will remain, and account balances will not be affected. The only change we are making is to eliminate checking and debit card features from the Fund.
What is the process of moving a checking account?
Below are general steps to guide you through the process of moving your checking/debit account. Of course, individual circumstances vary so your process may be somewhat different.
Step 1: Contact Federated or explore checking/debit account options at your local bank or other financial institution
Step 2: Complete account opening paperwork at Federated or institution of your choice
Step 3: Order checks and debit cards as needed for each checking/debit account user
Step 4: Confirm that new accounts are open, and that checks and debit card have been received
Step 5: Contact any third-party vendors to set up or change any automatic money transfers (Social Security Administration, vendors, and banks)
Step 6: Complete the necessary CBIS forms to authorize the CBIS Service Center to redeem all money in your Flex Cash checking accounts, close your account, remove all online users and send a wire/money to your new investment option.
A number of the checking account holders in my organization have their Social Security payments credited directly to their checking accounts. What do I need to do to change this?
You should contact the Social Security Administration through their website (http://ssa-custhelp.ssa.gov) or via phone at 1-800-772-1213 to change the account to which you want to send the payments
What if all my checks have not cleared by January 15?
Checks that have not been cleared by January 15 will be returned to the payee. It’s very important to ensure that you have no outstanding checks by January 15.
What should I do with my remaining check stock from my CUIT Flex Cash account?
Please shred or otherwise destroy all remaining checks to prevent fraud.