FEDERAL WAY, Wash. (7/2/13)--Washington state credit union movement leaders and consultants met June 20 with the Washington Department of Financial Institutions (DFI) to begin discussions on how "reasonable" credit union director compensation will be defined.
It was the first such meeting since the state legislature passed an updated Credit Union Act, which allowed for credit unions to pay board members, said the Northwest Credit Union Association (Anthem Recap June 25). Gov. Jay Inslee signed the measure into law on April 22.
The DFI intends to have board compensation rulemaking completed by the end of the year, with an effective date of Jan. 1, said DFI Director Linda Jekel. She indicated that credit unions could begin compensating board members by July 28, the date the updated law becomes effective, but urged them to wait until DFI issues its proposed rule, CR102.
Jekel asked NWCUA to help identify and lead a work group to review Washington's model bylaws, which were last updated in 2001. Washington credit unions interested in helping to review the bylaws can contact John Trull, NWCUA's director of regulatory advocacy.
"The right balance between guidance and rulemaking was a significant topic of discussion at the meeting," said Hal Scoggins, principal attorney at Farleigh Wadda Witt. He noted that most participants were "seeming to be in favor of guidance."
"Some of the things that guidance may cover are the board nominating process, fair and open elections, verifying election results, and board qualifications," Scoggins reported.
NWCUA encouraged credit unions considering board compensation to review guidelines issued by the Internal Revenue Service on what tax-exempt organizations should consider in setting executive compensation.