WASHINGTON, DC (February 19, 2025) |
Today, the Defense Credit Union Council (DCUC) sent a letter to the Senate Health, Education, Labor & Pensions Committee, emphasizing key labor and regulatory issues affecting defense credit unions. As the Committee reviews the nomination of Lori Chavez-DeRemer for Secretary of Labor, DCUC called for consideration of the impact of labor policies on defense credit unions and their ability to serve military and veteran members.
DCUC’s letter outlined the following issues:
Proposed increases to the salary threshold for overtime exemptions could impose significant burdens on smaller credit unions serving military installations, potentially reducing services and staffing. DCUC recommended a phased-in approach with exemptions for small, defense-focused credit unions to preserve essential financial services.
Changes to fiduciary duties under the Employee Retirement Income Security Act (ERISA) could increase compliance costs and divert resources from member services. DCUC advocated for regulatory relief to maintain flexibility for credit unions managing retirement plans and military transition assistance.
As defense credit unions operate on military bases under the “one bank, one credit union” policy, increased unionization efforts and National Labor Relations Board (NLRB) regulations could hinder hiring and retention. DCUC requests that credit unions serving military personnel be exempt from unionization mandates affecting commercial entities.
Defense credit unions are uniquely positioned to provide financial counseling and services to transitioning military members. DCUC recommends stronger partnerships between the Department of Labor (DOL) and credit unions to enhance financial readiness and workforce training for military families and veterans.
The DOL’s ongoing rulemaking on worker classification may limit credit unions’ use of independent contractors, raising costs and reducing service availability. DCUC advocates for maintaining flexibility in classification standards for credit unions.
DCUC remains committed to supporting defense credit unions as they continue to serve their military members and veterans needs without unnecessary regulatory burdens. As the Committee considers Lori Chavez-DeRemer's nomination, DCUC urges that DOL policies reflect the unique role of defense credit unions in supporting financial readiness, national security, and workforce development.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.