Removing Barriers Blog

Pen Fed Supports NCUA Proposal to Pay Rebates to Credit Unions in 2018
Posted September 13, 2017 by CUNA Advocacy

Today PenFed Credit Union issued a statement in support of NCUA merging the Corporate Stabilization Fund into the National Credit Union Share Insurance Fund and providing a rebate to credit unions in 2018.  The statement “commends NCUA for managing the Stabilization Fund out of the financial crisis and into a surplus,” said James Schenck, PenFed President and CEO. “We thank NCUA Chairman J. Mark McWatters and Board Member Rick Metsger for their initiative to begin returning that surplus to credit unions in 2018—rather than waiting until the Stabilization Fund expires in 2021.”

PenFed also notes strong support of CUNA’s TCCUSF comment letter to NCUA by quoting CUNA President and CEO Jim Nussle, who voiced CUNA’s backing of the NCUA’s proposal to close the Corporate Stabilization Fund and distribute funds to credit unions in 2018.

The NCUA Board will be required to vote to merge the funds at the agency’s September Board meeting in order for credit unions to receive a distribution.  

Another trade association recently urged NCUA to delay this process in order to study alternative methods of distribution using the compressed comment period as a red herring argument for a rushed process. This stance is surprising given that NCUA is by no means rushing a process that credit unions have long asked for. In fact, the agency has discussed this process with CUNA over the course of several years and we are confident that NCUA has considered this proposal in large part to of these discussions.