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.
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CUSO and FCU employees can be part of the same employee group for administrative convenience and cost savings, as long as the CUSO pays for its share of the benefits in advance or reimburses the FCU within a reasonable time, Albin added.
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