Federal Furloughs Could Hit Defense Credit Unions, NCUA Says
Last week, 700,000 Department of Defense civilian employees began taking once-a-week furlough days that will cut their pay by roughly 15%. How will the temporary pay cuts affect credit unions?
NCUA Chief Economist John Worth said that while just under 2% of federally chartered credit unions have primarily military-based fields of membership, their relatively large size means they represent about 21% of federal credit union assets. The 82 federal credit unions that claim a military common bond include the nation’s largest credit union, the $54 billion Navy Federal Credit Union, and the third largest, the $16 billion Pentagon Federal Credit Union.
At the nation’s eighth-largest credit union, the $7.2 billion Security Service Credit Union, Vice President of Public Affairs Bruce Gillooly said he estimates only a couple of thousand out of 600,000 members face sequestration-related furloughs.
“That number is not staggeringly high,” he said. “It’s what we consider to be manageable enough that our call center and branches should be able to handle volume of people who have concerns.”