ALEXANDRIA, Va. (1/22/16)--Federal credit unions will have 90 days to examine and comment on the National Credit Union Administration’s (NCUA) overhead transfer rate (OTR) and operating fee methodologies.
The NCUA voted unanimously to publish the two items in the Federal Register at its meeting Thursday.
The OTR and the operating fee are the two primary funding mechanisms for the agency’s operating budget. The OTR represents insurance-related costs in the NCUA operating budget and is funded by the National Credit Union Share Insurance Fund.
The current OTR methodology has been in place since 2003.
According to the NCUA, the agency intends to analyze the comments to determine whether to adjust the methodology.
“I am certainly open to considering new ideas to simplify or improve both methodologies, as long as the methodologies remain objective, equitable and neutral with respect to charter type,” said NCUA Chair Debbie Matz. “Summaries of the comments, along with the board’s responses to the comments, will be published later this year in the Federal Register.”
The operating fee methodology is used to determine the aggregate amount of operating fees charged to federal credit unions, including the fee schedule that allocates the operating fee among federal credit unions. The formula was originally established in 1979.
Matz specifically asked for comments on some of the fee thresholds, particularly for smaller size asset credit unions.
The NCUA began publishing information on the OTR and operating fee in July of last year.