Dear Board of Directors and Chief Executive Officer:
The NCUA Board has voted to eliminate 2013 operating fees for federal credit unions with assets less than or equal to $1 million.
For federal credit unions with assets over $1 million, the 2013 operating fee rate will increase by only 0.24 percent over the 2012 rate.
How is the operating fee calculated?
Enclosed with this letter is a chart that will help you calculate the exact dollar amount of your credit union’s operating fee. The chart also includes the NCUA web link to the online calculator.
The rest of this letter provides additional insight into the calculation method.
The two major factors that influence a change in the operating fee rate are the overhead transfer rate (OTR) and the growth of federal credit union assets. The OTR is calculated from the annual allocation of NCUA resources toward insurance-related functions. For 2013, the OTR decreased slightly to 59.1 percent from 59.3 percent to maintain NCUA’s focus on risks to the National Credit Union Share Insurance Fund (NCUSIF). The combination of growth in federal credit union assets and the OTR reduction resulted in a minor increase to the 2013 operating fee scale.
Each year, in order to preserve the relationship of the scale to the federal credit unions within each asset tier, the asset range for each tier is adjusted by the projected growth of federal credit union assets. The 2013 asset ranges are increasing by 6.5 percent based on projected federal credit union asset growth. You will see the new asset ranges to the right of the adjusted fee rates on the chart enclosed with this letter.
When will the operating fee be billed?
In March, federal credit unions with assets over $1 million will receive an invoice for their 2013 operating fee.
At the same time, all federally insured credit unions will receive notice of any amount needed to adjust their NCUSIF capitalization deposit to 1 percent of insured shares.
- Your operating fee will be based on assets you report as of December 31, 2012.
- Your capitalization deposit may adjust up or down based on the insured shares you report as of December 31, 2012.
When is the payment due?
NCUA will combine your operating fee and your capitalization deposit adjustment into a single payment that will be due in April 2013.
For federal credit unions signed up to pay via Pay.Gov, no further action is required, and you can expect payment to occur by April 30.
All other federal credit unions will need to send payment according to the instructions included with the invoice.
If you have any questions regarding this letter, please contact NCUA’s Office of the Chief Financial Officer at email@example.com.