Board Action Bulletin
Approves Final Annual Operating Fee Assessment Rule
ALEXANDRIA, Va. (Dec. 18, 2020) – Through a live audio webcast, the National Credit Union Administration Board today held the second of two consecutive open meetings in December. At the meeting, the Board approved three items:
- Operating, capital, and National Credit Union Share Insurance Fund budgets for 2021 and 2022;
- A final rule on the annual operating fee assessment; and
- A final notice on the overhead transfer rate and the operating fee schedule methodologies.
Agency Budgets Approved for 2021, 2022
By a 2-1 vote, the NCUA Board approved the agency’s budgets for 2021 and 2022 (opens new window). Combined, the 2021 operating, capital, and National Credit Union Share Insurance Fund administrative budgets will be $341.4 million. The combined budgets for 2022 will be $343.5 million.
|Operating budget||$314.6 million||$316.9 million|
|Capital budget||$18.8 million||$18.9 million|
|Share Insurance Fund budget||$8.0 million||$7.7 million|
The budget supports a total of 1,192 full-time employees for 2021, and 1,187 full-time employees in 2022.
Annual Operating Fee Assessment Final Rule Approved
The Board unanimously approved a final rule (opens new window) that amends the NCUA’s regulation governing assessment of an annual operating fee to federal credit unions.
The final rule:
- Amends the current rule to exclude from total assets any loan a federal credit union reports under the Small Business Administration’s Paycheck Protection Program (PPP) or similar future programs approved for exclusion by the NCUA Board;
- Deletes from the current regulation references to the Credit Union System Investment Program and the Credit Union Homeowners Affordability Relief Program, both of which no longer exist;
- Amends the period used for the calculation of a federal credit union’s total assets; and
- Incorporates minor technical changes.
This final rule is effective 30 days after date of publication in the Federal Register.
Board Approves Issuing Final Notice on OTR and Operating Fee Schedule Methodologies
Staff from the NCUA’s Offices of Examination and Insurance and Chief Financial Officer briefed the Board on a final notice (opens new window) on the overhead transfer rate and the operating fee schedule methodologies.
Specifically, the offices sought approval to issue a final notice on these two matters:
- The existing principles-based overhead transfer rate methodology adopted in 2017; and
- Clarifications and changes to the agency’s methodology in determining how it apportions operating fees charged to federal credit unions.
The Board unanimously approved issuing the final notice.
The NCUA tweets all open Board meetings live. Follow @TheNCUA (opens new window) on Twitter, and access Board Action Memorandums and NCUA rule changes at www.ncua.gov. The NCUA also live streams, archives and posts videos of open Board meetings online.