WASHINGTON — Federal credit unions can administer benefits for CUSO employees but can't pay for them, according to an NCUA legal opinion.

If the credit union were to pay for the CUSO employees' benefits, it would negatively affect the legal separateness between the FCU and CUSO, said Sheila A. Albin, the agency's associate general counsel, in response to an inquiry from Boston lawyer Steven D. Eimert.

Any plan for FCUs to administer benefits that CUSO employees pay for must "preserve the corporate veil" between the two entities, Albin wrote.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.