ALEXANDRIA, Va. — A $2.6 million 2013 operating budget decrease was approved Thursday by the NCUA Board during itsmonthly meeting. That leaves a revised totalbudget of $248,811,870.

Because federally insured credit unions have already paid 2013operating fees, the excess funds will be used to offset 2014operating budget requirements according to a Board ActionMemorandum. That budget is scheduled to be revealed inNovember.

Also Thursday:

NCUA Imposes Lowest Corp Bailout Fee Since2009

Budget tweaks include a $6,263,449 net decrease in employee payand benefits after the NCUA scrapped its budgeted 7.5% pay andbenefits increase that would have cost $9.5 million. That wasreplaced with an average increase of 3%, which will come in theform of a one-time, performance-based lump sum totaling $3.6million.

An additional $100,000 will be doled out to employees who aren’tunion members to correct a locality pay disparity that resultedfrom a three-year pay freeze, the board said.

All NCUA employees last received merit increases and localitypay adjustments in 2010. In 2011, only employees covered under theNCUA-National Treasury Employees Union and non-bargaining unionemployees received merit increases.

However, in 2011, only union members received local adjustments.Senior staffers received no increases in 2011. And, no employeesreceived pay increases or locality adjustments in 2012 or duringthe first half of 2013.

NCUA Board Chairman Debbie Matz said the NCUA is required perthe Federal Credit Union Act to maintain compensation parity withother regulatory agencies, and it has not.

“It really does pain me that (NCUA employees) work so hard andhave done such a tremendous job and don’t realize any payincreases,” Matz said.

She explained that even at federal agencies subjected tosequestration cuts, employees are still allowed to move up thefederal pay scale; no similar scale exists at the NCUA.

“We are the only federal agency where employees have received nopay increases,” Matz said. The board memo said according to theU.S. Office of Personnel Management’s Fed Scope database, theaverage salary growth at other federal financial servicesregulatory agencies has ranged from 3.6% to 8% since 2011, with noincrease at the NCUA.

Other changes to the budget include a $3,772,745 net increase incontracted services that will upgrade information technologysystems and strengthen cyber security. The increase will alsodeploy an emergency notification management system and a new travelmanagement system the agency said will increase efficiency andreduce paperwork.

The travel budget was decreased by $198,500. Rent,communications and utilities saw a net increase of $85,950 due tolarger and longer examiner meetings and training. And,participation in the Federal Financial Institutions ExaminationCouncil training resulted in a net budget increase of $27,943.

Trade association representatives attending the meeting saidthey were pleased with the budget decrease. NAFCU General CounselCarrie Hunt said her organization appreciates any dollars the NCUAreturns to credit unions, although she said she felt there was roomto realize more budget savings. CUNA Deputy General Counsel MaryDunn noted that the budget decrease was the largest cut in recentyears.