NCUA Board approves succession planning proposed rule, discusses CLF and 2022 Supervisory Priorities

The NCUA Board Thursday approved by a 2-1 vote a proposed rule requiring the board of directors of a federal credit union (FCU) to establish a process for succession planning. In addition, the NCUA staff briefed the board on the Central Liquidity Facility (CLF) and the impact of the CARES Act and Consolidated Appropriations Act.

Regarding the board’s proposed rule on succession planning, the FCU must establish a plan for positions such as officers of the board, management officials, executive committee members, supervisory committee members, and credit committee members. Of note, the proposal allows FCUs flexibility with developing the succession plan and encourages all credit unions to have plans in place to mitigate consolidation and prepare for future retirements. NAFCU will fully evaluate the proposal and solicit member feedback to offer recommendations to the agency.

On the CLF, NCUA staff noted that certain enhancements will expire on December 31, 2022. In December 2021, both NAFCU and the NCUA urged Congress to extend or make CLF enhancements permanent, to ensure credit unions may continue to respond to the COVID-19 pandemic and beyond. NAFCU will continue to urge Congress to make these enhancements permanent.

During the meeting, the staff also briefed the board on the following:

 

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