More than 5,700 credit unions will begin receiving share insurance fund distributions this week as a result of the CUNA-supported plan from NCUA. CUNA continues to press NCUA to reduce the Share Insurance Fund Normal Operating Level (NOL).
CUNA supported a transparent and equitable method for repaying credit unions and pushed for a temporary increase of four basis points in the fund NOL while the share insurance fund holds corporate legacy assets and continues to insist the increase that was adopted be only temporary and phased down to 1.3% by 2021 as the relative exposure of the legacy assets diminishes.
CUNA pushed for disbursements this year and submitted a comment letter with NCUA providing input on how the agency should amend its share insurance rule to provide for equity distributions.
"We commend the NCUA Board for making the decision to start issuing refunds and see this as a victory for credit unions," said CUNA President/CEO Jim Nussle. "CUNA was the only national trade association advocating for refunds to begin in 2018, and more than 90% of credit unions who commented on NCUA’s proposal supported our position. Credit unions look forward to getting their money back and putting it to work for their members."
Next week, statements will be mailed to eligible credit union recipients, indicating the amounts they will receive. The board unanimously voted at its February meeting to declare a distribution in the form of a dividend in the amount of $735.7 million.