The methodologies behind the overhead transfer rate and federal credit union operating fees used to fund NCUA’s budget are each out for a 90-day public comment period as result of unanimous action Thursday by the NCUA Board.
NAFCU Executive Vice President and General Counsel Carrie Hunt welcomed the board’s action. “NAFCU welcomes an opportunity to provide credit union input on the methodology for the OTR calculation,” said Hunt. “We look forward to working with NCUA to ensure that the most efficient and objective methodology is used.”
NCUA Chairman Debbie Matz said, “I am certainly open to considering new ideas to simplify or improve both methodologies, as long as the methodologies remain objective, equitable and neutral with respect to charter type. Summaries of the comments, along with the Board’s responses to the comments, will be published later this year in the Federal Register.”
The OTR is used to transfer funds from the National Credit Union Share Insurance Fund to the agency’s operating fund to cover “insurance-related” activities. For 2016, the OTR increased from 71.8 percent to 73.1 percent, which NCUA said was due to an increase in the percentage of insured shares held by federally insured, state-chartered credit unions. The agency’s total 2016 budget is set at $290.9 million – up 4.1 percent from the year before.continue reading »