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YMeet Hawaiian Electric EFCU’s new President & CEO

Your Credit Union welcomes Pamela M. Sumimoto, our new President & CEO. Pam, as she prefers to be called, has over 15 years of knowledge and experience in the banking industry working with American Savings Bank and City Bank. Pam is very excited to meet as many ac-tive HECO and MECO employees, as well as our retired and family members. She looks forward to establishing a great partnership that reflects the credit union’s concept of people helping people.

Pam loves to golf and spend time with her family which includes four furry friends - Duke, Chewie, Bella and Bebe.

Welcome to our Credit Union ‘Ohana, Pam!

Chairman’s MessageAs you may know, I wear two hats – My Human Resources (HR) Benefits Hat and my Credit Union Chairman Hat. Part of my job is to administer the Hawaiian Electric Industries Retirement Savings Plan or HEIRS 401(k) plan available to help employees save for their retirement.

The U.S. Dept. of Labor allowed plan loans as a way to help employees tap their retirement funds when commercial loans were not available to meet their financial needs. After all, it’s employees’ money.

When a loan is requested, the employee is actually selling their investments from their account, borrowing the funds; then repaying their account through loan repayments through payroll deductions. Both the principal and interest are posted to the account. There is a one-time set-up fee of $35 and quarterly loan recordkeeping fees totaling $15.00 per year.

Summer2014

Myra O’Brien

It’s easy to get a loan, but the long term effects for the primary purpose of retirement savings is compromised for the following reasons:

• Selling Investments: When taking out a loan, the investments are sold to provide the loan amount or principal: but it may be sold at an inoppor-tune time when the market is on a downturn; which would mean selling your investments at a loss or less than what you purchased them at.

• Loan Repayments: Although employees continue to save, many employees will stop their saving for retirement during the term of the loan which would also undermine your retirement savings goals.

• Double Taxed: Loan repayments are repaid using after-tax money. You get paid, pay taxes; then the loan payment is deducted. Eventually when the employee retires or qualifies to take a withdrawal, the loan interest will be taxed again, thus being taxed twice.

• Opportunity Loss: By not taking out a loan, your investments continue to grow faster because of compounding. If you take a loan, that money will only earn the loan interest. In a low interest rate environment, that would be mean a lower return on your investments.

• Loan fees: Fees are deducted from your account.

Unfortunately, people are creatures of habit so one loan leads to another, then another. This is called loan churning. Many employees do them-selves an injustice by doing this because it defeats the primary purpose of saving for retirement when it’s needed most.

A few employees use their savings like a bank account for vacations and other purchases. Managing personal finances to meet immediate needs can be difficult. But imagine what would happen when you retire without any earned income. Costs will continue to rise due to inflation and retirement income may not increase to cover those expenses.

Instead of dipping into your 401k, consider the Credit Union for your borrowing needs. We offer a variety of loan offerings and our rates are very competitive. The Credit Union offers payroll deduction which makes handling your finances even easier. Please call Jae-Kila, Credit Union Loan Officer at 543-4428 or 543-7581 for more information.

Pamela M. Sumimoto

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EIGHT TIPS TO FIGHT FRAUDImmediately report lost or stolen cards to your credit union.

Cover the ATM PIN pad when entering your number.

Choose a credit and debit card PIN number that is difficult to guess, but easy for you to remember.

Do not reply to any email, text or phone requests for your social security number, credit or debit ac-count number or any other personal information.

Monitor your credit report, credit and debit card accounts and statements for unauthorized trans-actions.

Shred all credit and debit card statements or financial documents before you throw them away.

Before making purchases online with your credit or debit card, make sure the website is secure and the company is reputable.

Update anti-virus and spyware software regularly.

Name (please print) CU Account #

References: Name, address & phone number of relative not living with you:

Number and age of dependants:

Monthly rent or mortgage payment: $ Day Phone:

Total monthly installment/credit card payment: $

Yes, please process my Loan (e.g. New Year Loan, Consolidation Loan, Auto Loan, etc.)

in the amount of $ ($2,000 minimum / See Current Rates box for maximum amounts)

SendmyLoantomebyinterofficemail.Mailstopcode:

Loan to be repaid by: Payroll deduction – monthly Payroll deduction – every pay period

IunderstandthatallloansaresubjecttocreditqualificationsandloanpoliciesattheHawaiianElectricEmployeesFederalCreditUnionandauthorizeyoutoprocurecreditintheamountshownabove.Iagreetonotifythecreditunionofanychangestomyname,addressoremployment.Iauthorizemycredituniontoobtaincreditreportsinconnectionwiththisrequest.

Applicationmustbesubmittedwithyourlatest2paystubs.

Signature Date

Your savings federally insured to at least $250,000 and backed by full faith and credit of the United States Government–NationalCreditUnionAdministration,aU.S.GovernmentAgency(NCUA)

LOAN APPLICATION

Hawaiian Electric EFCU770 Kapiolani Blvd., Suite 514Honolulu, Hawaii 96813

PRESORTEDSTANDARD

U.S. POSTAGEPAID

HONOLULU HIPERMIT NO. 289

Back by Popular Demand – Bill Consolidation LoanCheck out these low rates: 1-year – 3.00% APR 3 year – 5.00% APR 2-year – 4.25% APR 4 year – 5.50% APR (APR=Annual Percentage Rate)

Please contact Jae-Kila, Loan Officer at 543-4428

for more information.

Take advantage for the month of June with the Bill Consolidation Loan!• Ourlowinterestratescansaveyoumoney• Easiertomanage1lowermonthlypayment• Payrollautomaticdeduction–it’salwayspaidontime

Follow these easy steps to consolidate all your existing credit card bills:• Completeloanapplicationbelow• Providecreditcardstatements• Submitlast2currentpaystubsPayments will be made directly to the creditor. Note: HEEFCU loans do not qualify for consolidation.

TTHECO EFCU 76th Annual Business Meeting DinnerThe 76th HECO EFCU Annual Business Meeting Dinner was held on Friday, April 4, 2014 at the Hale Koa Hotel’s Waikiki Ballroom. The food was incredibly delicious! Over 100 members and guests were treated to a buffet of succulent prime rib, steamed crab legs, hulihuli style chicken, kalua pig and cabbage, noodles and much more, plus a variety of the most scrumptious salads and delectable desserts. Kaleo Pilanca, emcee and comedian did a wonderful job of making the audience laugh and even got a couple of good sports from the audience to get on stage and participate in his comical and very funny antics. There were two lucky grand prize winners! Shirley Agahan won a $300.00 Travelers check and Janet A. V. Okimoto went home with a $150.00 Travelers check. Congratulations! All in all it was an enjoyable evening of food, fun, and fellowship. Thank you to everyone who attended. We look forward to seeing all of you at next year’s dinner.

MECO Annual Dinner NO KA OI!

The 12th Annual Maui Credit Union Dinner was held on Saturday, May 17, 2014 at the Maui Beach Hotel in Kahului. There were over 45 members and guests who enjoyed a beautiful evening out on the hotel’s Pool Terrace. Prime Rib was the star of the evening along with a delicious Japanese buffet and an overwhelming spread of delectable desserts.

Every member received a Wal-Mart gift card and there were three lucky members who won the grand prizes. Congratulations to Brian Spielman ($25),

Merle Minami-Shima ($50), and Tom Bernaldo ($75). It was a pleasure to share this special evening with all the MECO members and their guests in attendance.

CURRENT RATES:Dividends APY=Annual Percentage YieldShare .........................0.15% ..............0.15%Custodial Share ..........0.20% .............0.20%Share Draft ............... 0.05% .............0.05%Christmas ................. 0.15% .............0.15%Roth IRA ................... 0.65% .............0.65%Share Certificates ...........Call for current rates

Loans APR=Annual Percentage Rate New Auto (Specials)2-3 years (100% financing) ..................1.99%4 years (100 financing) .........................2.25%5 years (100% financing) ......................2.50%6 years (100 financing)* .......................2.75%7 years (100% financing)* ....................3.00%*minimum $20,000

Used Auto (Specials)2-3 years (100% financing) ..................1.99%4 years (100% financing) .....................2.25%5 years (100 financing) ........................2.50%6 years (100% financing ......................3.00%(100% Blue Book Retail Value)

Share Secured2-5 years ............................................2.50%

Signature Loans2 years ...............................................8.25%3 years ...............................................9.00%4 years .............................................10.50%5 years .............................................11.50%$30,000 maximum

Tuition Loans1 year .................................................3.25%2 year .................................................3.75%3 year .................................................4.25%*maximum $50,000 Rate eff. 4/1/14-6/30/14

Line of Credit ................................ 12.00%Home Equity (HELOC) call for current rateContact us for more information about fees & rates.

Go with #1: The Sprint Credit Union Member Discount

Who doesn’t want to be #1? As a Hawaiian Electric EFCU member, you can save with Sprint, the wireless provider that was ranked #1 among all major wireless carriers for higher

satisfaction in value by 2011 American Customer Satisfaction Index. And that’s not even including the great savings you’ll get from the Sprint Credit

Union Member Discount from Invest in America.

Just for being a member, you can save:

• 10% off* select personal Sprint plans• 15% off* select business Sprint plans• Waivedactivationfeeonnewactivations• Waivedupgradefee• AvailabletonewandexistingSprintcustomers

Consider the Sprint Credit Union Member Discount one of the many perks for being a member!

3 Ways to Get Your Discount:

- Call 877.SAVE.4CU (877.728.3428) and let them know you’re a credit union member. Ask to be a part of the NACUC_ZZM Corporate ID to save

- Click LoveMyCreditUnion.org/Sprint- Visit your nearest Sprint store

Go with #1 and start saving today with the Sprint Credit Union Member Discount.*Application of discount requires 2-year contract extension on existing plans. Verifica-tion of membership is required at time of activation/upgrade. Discount not available on secondary lines for Family and Business Share plans.

All rights reserved. Sprint, the logo, and other trademarks are the trademarks of Sprint Nextel.

Credit ConneCtionpublished by

Hawaiian Electric EFCU 770 Kapiolani Blvd., Ste. 514

Honolulu, HI 96813 Phone: 543-7581

Pamela M. Sumimoto,

President & CEO

Office HoursMon. – Fri.: 7:30 a.m. – 4:00 p.m.

except the 3rd Wednesday of the month: 7:30 a.m. – noon

www.hecoefcu.org

HOLIDAYSJuly 4, 2014 . . . . . . . . . . . . . . Independence DayAugust 15, 2014 . . . . . . . . . . . . . . Statehood DaySeptember 1, 2014 . . . . . . . . . . . . . . . . Labor Day