ALEXANDRIA, Va. (11/18/11)--The National Credit Union Administration (NCUA) on Thursday approved an expanded community credit union charter, and separate final rules that correct its golden parachute and indemnification rule and add remittance transfers to the list of international electronic funds transfers that may be offered by federal credit unions.
Both of these final rules were unchanged from the interim rules that came into effect earlier this year.
The remittance transfer rule final rule strictly adheres to Dodd-Frank Act's statutory language and allows federal credit unions to offer all variations of remittance transfers to their members and those within their fields of membership, subject to consumer protections.
The Golden Parachute and Indemnification Rule correction finalizes the interim final rule's changes to portions of the NCUA's original regulation that "did not accurately reflect the Board's intent regarding certain deferred compensation plans," the NCUA said.
The NCUA in a release added that the technical correction provides an exception to the definition of golden parachute payments pertaining to plans offered under section 457 of the Internal Revenue Code, and clarifies that 457(b) plans are excluded from the golden parachute definitions. The rule will exclude 457(f) plans from the golden parachute definition if they meet certain criteria, the NCUA added.
The NCUA also unanimously approved Indianapolis, Indiana-based Finance Center FCU's application to expand its community charter. That $419 million in asset, 44,000-member credit union will now be able to draw membership from citizens that live, work, worship, or attend school in the greater Indianapolis area, including the surrounding counties of Boone, Brown, Hamilton, Hancock, Hendricks, Johnson, Morgan, Putnam and Shelby. The credit union currently draws membership from Marion County.
The Credit Union National Association urged the NCUA to make the correction to the golden parachute rule and was also actively involved in the remittance transfer issues.
For more on the NCUA board meeting, use the resource link.