At a recent credit union meeting when I raised the subject of the NCUA’s recent proposal to permit credit unions to voluntarily prepay assessments, earning 0% interest with the agency, CEO heads were shaking. All in disbelief and all in response to the question, “Will your credit union be participating?”
The majority of NCUA employees, who are covered by a collective bargaining agreement, will receive pay increases, despite a federal pay freeze.
The NCUA announced its budget increase at the last board meeting much to the dismay of the industry that supports it financially.
A natural tension exists between industry and regulators that can be healthy and helps keep both on their toes. But when a loss of respect occurs on either side, and currently on both sides, it becomes counterproductive.
Federal government employment shifting, rather than eliminating subpar employees, can have a strong impact on credit union regulation.