For eighth consecutive year, league-Initiated legislation yields considerable fee credits for Illinois Credit Unions
NAPERVILLE, IL (January 10, 2018) — As has been the case for the past seven years, the Illinois Credit Union League is pleased to report the margin threshold has again been surpassed for the State’s fiscal year ending June 30, 2017, therefore entitling all Illinois credit unions to an excess over margin regulatory fee credit.
This credit is based upon legislation enacted to implement the court-approved settlement of the regulatory fee case filed by the League against the State and then-Governor Rod Blagojevich in 2004 (Public Act 95-1047). Under the terms of the settlement, each credit union received a cash payment in June 2009 (the aggregate amount paid to credit unions was approximately $6.2 million).The case challenged the propriety of the regulatory fee escalation and sweep scheme established by the former Governor, in an attempt to balance the budget.
The 2009 legislation implementing the settlement also accomplished two other goals:
It codified a rate reduction in regulatory fees on a going forward basis, commencing January 1, 2009 (for 2017, the rate reduction savings was $960,258).
Further, it reduced the Credit Union Fund margin that triggers a credit back to the credit union.
The aggregate amount of the margin credit for is $723,030.62. The credit represents approximately 57% of the total 2017 4th Quarter billing to credit unions for regulatory fees. Accordingly, credit unions will enjoy a partial 4th Quarter fee holiday. The amount of each individual credit is determined on a proportionate basis by taking into account the regulatory fee each credit union paid versus the aggregate amount of all fees collected by IDFPR from credit unions.
The prosecution and favorable settlement of the regulatory fee case is an excellent example of the power of the League/Credit Union relationship, as well as the advocacy value of League affiliation.
“It would have been cumbersome and costly for any credit union, no matter how large, to individually pursue a lawsuit against the Governor and IDFPR, and then successfully settle it with implementing legislation in the General Assembly,” said ICUL Executive Vice President & General Counsel Stephen Olson. He added that the litigation and legislative effort established a regulatory fee structure that avoids the collection of fees far in excess of the amount required for regulatory supervision.
ICUL is particularly pleased to see the settlement terms originally negotiated in 2008 continue to provide our state credit unions with a financial benefit (for 2017, the value of the excess over margin credit and rate reduction savings was $1,683,288, and cumulatively to date, the settlement has returned over $20,252,000 to Illinois credit unions).
About Illinois Credit Union League
The Illinois Credit Union League (ICUL) is the primary trade association for 212 state and federal credit unions in Illinois. It focuses on providing legislative and regulatory advocacy, compliance assistance and information, and a wide range of educational and training services to those credit unions, who in turn serve approximately 3.4 million members. More information can be found at www.icul.com.