Comment period on the NCUA’s request for comment on the OTR Methodology now open
ALEXANDRIA, VA (December 21, 2023) — The comment period for the NCUA’s recently approved request for comment on the Overhead Transfer Rate Methodology is now open. Stakeholders must submit their comments by February 20, 2024.
The NCUA Board unanimously approved the issuance of a notice and request for comment on the existing Overhead Transfer Rate (OTR) methodology at its December 2023 meeting. The Board is inviting comment on the NCUA’s methodology to determine the OTR. The request for comment clarifies the four principles for calculating the OTR and the various cost allocations associated with the calculation.
In 2017, the NCUA published in the Federal Register a request for comment regarding a revised OTR methodology based on the Board’s internal assessment and comments received from a 2016 request for comment. The primary goal of the proposed changes to the OTR methodology at that time was to simplify the methodology and reduce the resources needed to administer the OTR. The Board committed to subjecting the four principles to public comment every three years and in the event the Board proposes a change to one or more of the principles.
For more information or to submit a comment, please go to Regulations.gov.
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.