The NCUA – in a letter to credit unions Monday – announced the operating fee schedule for 2020. The fee scale has been raised 1.13 percent due to the Overhead Transfer Rate (OTR) level and changes in the NCUA’s capital investment program.
The fee scale applies to consumer-based federal credit unions, but those with less than $1 million in assets remain exempt from the fees. Federal credit unions with assets totaling more than $1 million can expect to receive the invoice for their respective operating fee in March and payments are due to the NCUA Wednesday, April 15.
According to the NCUA, the agency uses the OTR to determine how much of the NCUA’s operating budget is funded by the National Credit Union Share Insurance Fund (NCUSIF). If the OTR decreases, the operating fee collected increases. For 2020, the OTR increased from 60.5 percent to 61.3 percent, decreasing the operating fee. However, increased cash needs for capital investments planned for 2020 and the increased budget level resulted in increases to the operating fee.
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