NCUA Reduces Operating Fee Scale for Third Consecutive Year

Posted by Marissa Anema Wednesday, January 25, 2012 11:22:00 AM

ALEXANDRIA, Va. – NCUA, for the third consecutive year, is reducing the operating fee scale for federal credit unions. For natural person federal credit unions, the 2012 operating fee rate is 0.9% lower than the 2011 rate.

NCUA stated in a press release the “two major factors that influence a decrease in the operating fee rate are the growth of federal credit union assets and the overhead transfer rate (OTR).” The OTR is calculated from the annual allocation of NCUA resources toward insurance-related functions. For 2012, the OTR increased to 59.3% from 58.9% to reflect NCUA’s increased focus on risks to the National Credit Union Share Insurance Fund (NCUSIF). The combination of growth in assets and the OTR resulted in a reduction to the 2012 operating fee scale.

Each year, in order to preserve the relationship of the scale to the federal credit unions within each asset tier, the asset range for each tier is adjusted by the projected growth of federal credit union assets. In 2012, based on federal credit unions’ rate of growth, the asset ranges are increasing by 4.75%.

In March, credit unions will receive an invoice for their 2012 operating fee and for any amount needed to adjust their NCUSIF capitalization deposit to 1% of insured shares.

The credit union’s operating fee will be based on assets you report as of December 31, 2011. The credit union’s capitalization deposit may adjust up or down based on the insured shares you report as of December 31, 2011.

NCUA will combine your operating fee and your capitalization deposit adjustment into a single payment that will be due by Monday, April 16, 2012.

A chart that will help you calculate the exact dollar amount of your credit union’s operating fee is available here. Credit unions will see the new asset ranges to the right of the lower fee rates on the chart. An operating calculator is available here.

NCUA’s Letter to Credit Unions is available here.

If you have any questions, please contact NCUA’s Office of the Chief Financial Officer at (703) 518-6570 or ocfomail@ncua.gov.
 

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