Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUNA seeks comment on NCUA golden parachute rules
WASHINGTON (7/15/11)--The Credit Union National Association (CUNA) has asked credit unions to comment on whether the list of Section 457 deferred compensation plans that are shielded from the National Credit Union Administration’s (NCUA) new executive compensation prohibitions should be expanded beyond 457(b) and 457(f) deferred compensation plans. The NCUA in May approved a final rule that prohibits golden parachute and indemnification payments. The golden parachute prohibitions would apply if the credit union in question is insolvent, in conservatorship, has a CAMEL 4 or 5 rating or is otherwise in "troubled condition." "Bona fide" deferred compensation plans, general institution-wide severance pay plans, and other assorted employee benefits will not be impacted by the prohibition. The NCUA rules came into effect on June 27, and only new contracts that were entered into after that date will be impacted. Current contracts held by credit union executives will not be affected, unless they are revised. The NCUA allows 457(f) plans to be offered to employees, provided the plans meet the “bona fide” criteria set forth by the agency. The Internal Revenue Service currently allows 457(b) plans to be amended to allow designated Roth IRA contributions and in-plan rollovers to designated Roth accounts. For CUNA’s full comment call, use the resource link.


RSS print
News Now LiveWire
For the last 75 years, even in the most difficult of times, Mill Town #CU has been there for the community it serves. Read #NewsNow Tues.
11 hours ago
The 1st vid shows how consumer can become victim and, advice to those who think they've been targeted. http://t.co/hr9VHpzEze
15 hours ago
.@TheNCUA has released two videos designed to raise awareness of elder financial abuse. http://t.co/iddSxr7H40
15 hours ago
Celebrate #100MM with @MDDCCUA1 at Orioles v Blue Jays tonight at Camden Yards
15 hours ago
The At Home In Lawrence mortgage program from @MetroCU is designed to help revitalize Lawrence, Mass.
16 hours ago