ALEXANDRIA, Va. (7/28/15)--The National Credit Union Administration has posted materials regarding the agency’s overhead transfer rate (OTR), including a chronology and minutes from annual board meetings where the rate was discussed.
The materials were added Friday, a day after the OTR was a topic of discussion when NCUA Chair Debbie Matz appeared before the U.S. House Financial Services subcommittee on financial services and consumer credit.
The OTR, which is taken from the National Credit Union Share Insurance Fund, is one of the funding sources for the NCUA’s budget. A percentage of the share insurance fund is presented to the NCUA board at each November board meeting, when the agency’s budget is presented.
During her testimony Thursday, Matz said the NCUA will, in the future, solicit public comment on the OTR, as recommended in a 2011 study of the rate by PricewaterhouseCoopers. The study was among the documents posted to the agency’s website last week.
“In response to feedback from the credit union community and to obtain more frequent public input on the overhead transfer rate going forward, NCUA will solicit comments on the overhead transfer rate methodology every three years in conjunction with the public review of the agency’s strategic plan,” Matz said in her testimony.
CUNA noted last November, when commenting on the agency’s budget, that the OTR is at an all-time high, and pushed for the agency to provide more information regarding the supporting data for OTR decisions.
The agency also posted to the NCUA Budget and Supplementary Materials page: