AUSTIN, Texas — The Texas Credit Union League reaped the benefits of a well-prepared dues increase proposal at its 2007 Annual Membership Meeting April 12. Delegates approved the new dues structure unanimously, without discussion, surprising league officials.
The new formula, which differs significantly from the 2007 formula, is based entirely on assets using the square root of assets plus a factor of .52, and includes a minimum dues assessment of $500 or 6% of gross income, whichever is less. As a credit union grows, so will the size of its dues. Likewise, if a credit union experiences a down year in assets, the formula adjusts dues downward.
An 18-member League Dues Study Task Force, co-chaired by John Tippets, American Airlines Federal Credit Union, and Wayne Vann, Navy Army Federal Credit Union, was responsible for creating the new dues proposal. "Our objective was to ensure the viability of the league when the number of credit unions is declining and credit union assets are rising, maintaining a sense of fairness to all credit unions," Tippets said.
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Tippets offered delegates a detailed explanation of the steps taken in designing the new dues formula. The task force first assessed the league's current use of credit union dues monies, and Tippets noted that legislative advocacy efforts have been tremendously effective. He also applauded the league's consolidation of office space during the past year, a move that resulted in a 15% cost savings.
In addition, the task force conducted a dues comparison with leagues around the country, which found them ranking favorably among other large leagues. They also conducted chapter meeting presentations across the state to familiarize credit unions with the rationale behind the proposal and to give them an opportunity to get their questions answered. "And under the new structure, larger credit unions will pay a more proportionate share of dues than they have in the past," Tippets told attendees.
The new structure removes any artificial caps, plateaus and voluntary special assessments, including a "requested" assessment for the league's legislative advocacy-oriented FORCE Fund. These activities will be sustained under the new dues structure.
Another component of the dues schedule gives the league's board authority to adjust the factor, currently .52, up to 5% annually without delegate approval. There will be no phase-in of the new schedule; changes will go into effect in 2008. –[email protected]
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