Postal Credit Unions Celebrate Rent Reduction
DEL MAR, Calif. - Perseverance has paid off for postal credit unions across the country. The U.S. Postal Service has recently announced that any authorized credit union now being charged rent for occupying space in their facilities will now only have to pay $1 per year in rent. "I am pleased to report that while we are looking to increase revenue and reduce costs, we also recognize that credit unions provide a unique benefit to our employees," said U. S. Postal Service Vice President of Facilities Rudy Umscheid. "This is something we have debated at length and I'm pleased that we can resolve this point of contention between NCPCU and the Postal Service." In 1993 when the U.S. Postal Service started experiencing some financial difficulties, a decision was made to start charging postal credit unions rent. The National Council of Postal Credit Unions lobbied to have it reversed. "Some of the new postmasters didn't know about the policy and the result was that some charged a local rate and others a low rate and yet others didn't charge at all," said NCPCU Executive Director Bob Spindler. "The inconsistencies were challenging and it was particularly rough for those smaller onsite credit unions being charged a local rate. It has been 10 years in the making so this is just such great news for us." For the 380 postal credit unions across the country, the new policy takes effect May 31, 2003. "We've worked closely with the Postal Service over the years to make sure they understand what our credit unions do for their employees," said NCPCU Chairman Sidney Parfait. "This new policy is a clear indication that they value what we do. They have also improved our bottom line in a measurable way. Now we can turn around and use the money we save on rent to provide even better financial service to our members."