February 4, 1998
Michael J. Lord, Senior Vice President
State Employees Credit Union
1000 Wade Avenue
P.O. Box 26807
Raleigh, NC 27611-6807
Dear Mr. Lord:
You have asked whether member funds deposited into a Money Market
Share Retirement Account are insured up to $100,000 per member.
As explained below, the answer is yes.
The federal credit union (FCU) has established a 401k plan for
its employees. The FCU's board of directors and President are
the trustees of the plan. As of January 1, 1998, Fidelity Investments
will be managing the plan. Employees may continue to invest in
the FCU's Money Market Share Account or invest in several, new,
mutual fund options. On behalf of the trustees, Fidelity Investments
will keep records of each member's balance in the FCU's Money
Market Share Account. Each member will be insured up to $100,00
if the trustees can document, through records maintained in the
ordinary course of business by Fidelity Investments, the total
amount of the member's vested interest and that the members' interests
are segregated. 12 C.F.R. §745.9-2.
As you are aware, any funds that employees decide to invest in
mutual funds through Fidelity Investments would no longer be federally
insured.
Sincerely,
Sheila A. Albin
Associate General Counsel
GC/MFR:bhs
SSIC 3000
97-1213