League-initiated legislation yields significant fee credits for Illinois credit unions for the ninth consecutive year
NAPERVILLE, IL (January 8, 2019) — The Illinois Credit Union League is pleased to report the margin threshold has been surpassed for the State’s fiscal year ending June 30, 2018, entitling state-chartered credit unions to an excess over margin regulatory fee credit for the ninth year in a row.
The aggregate amount of the margin credit is $1,042,541.44. The credit represents approximately 83% of the total 2018 4th quarter billing to credit unions for regulatory fees due in January, 2019. Accordingly, credit unions will enjoy almost a total 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.
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 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 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 (the rate reduction savings for 2018 was $964,896.47).
- Further, it reduced the Credit Union Fund margin that triggers a credit back to the credit union.
In 2018, the value of the excess over margin credit and rate reduction savings was $2,007,438. The settlement has returned over $ 22,260,000 to Illinois credit unions cumulatively to date.
“We believe the prosecution and favorable settlement of the regulatory fee case is an excellent example of the advocacy value of League affiliation. We are particularly pleased the settlement terms we negotiated with the State in 2008 continue to provide credit unions with a financial benefit,” said Stephen Olson, principal of Olson Government Consulting, LLC, who served as Executive Vice President & Chief Advocacy Counsel of ICUL until his retirement at the end of 2018 and continues to provide advocacy services to ICUL.
About Illinois Credit Union League (IUCL)
The Illinois Credit Union League is the trade association for 217 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.