The NCUA board will vote Friday on whether to issue a request for comment on its Overhead Transfer Rate (OTR) methodology, among other items on the agenda for its monthly board meeting. The meeting was postponed due to NCUA Acting Chair J. Mark McWatters’ Thursday appearance before the Senate Banking Committee.
The OTR is taken from the share insurance fund and covers expenses related to NCUA’s insurance-related activities. It is set at 67.7% for 2017. NCUA also receives funding for the agency from federal credit unions from the Operating Fee.
The agency previously requested comments on OTR in January 2016. CUNA responded by proposing an alternative calculation to keep within a range of 62% to 67%.
The NCUA board listened to a briefing on the OTR at its November meeting, and said then the agency is reviewing options for improving the methodology with a direction to make the methodology simpler, fairer, and more transparent.
Other items on Friday’s agenda include: