ALEXANDRIA, Va. (10/26/11)--The National Credit Union Administration's (NCUA) Wednesday announcement that it will institute a pay freeze for all NCUA employees in 2012, and will index future pay raises to the Office of Personnel Management's general schedule raise level, is "a step in the right direction," the Credit Union National Association (CUNA) said.
The agency will also freeze locality rates, and will provide yearly three percent contributions to an agency-established 401(k) plan and contribute to health, dental and vision premiums paid on federal plans. The terms were agreed to under a new three-year collective bargaining agreement, and the NCUA said its unionized employees agreed to the pay freeze as an offset to the increased employee benefits.
The agreement will bring the 950 unionized employees of the NCUA in line with a government-wide pay freeze that was put in place by an executive order earlier this year. The NCUA earlier this year applied the pay freeze to agency employees whose salary increases were not negotiated under existing union contracts.
The agreement is scheduled to be signed by NCUA Chairman Debbie Matz and National Treasury Employees Union (NTEU) President Colleen Kelley on Nov. 1.
CUNA will study this agreement to assess its impact.
The NCUA in July reduced its 2011 operating budget by $2 million after adjustments to the employee pay and benefit budget, administrative and contracting costs, travel, and other standard business expenses were made.
CUNA at that time supported the decision, but also noted that even with the reduction, the NCUAs 2011 budget of $223 million was still $23 million more than the agency spent in 2010.
Bill Cheney, CUNA president/CEO, encouraged the agency to "continue a close review of its operations and look for other potential areas where expenses can be cut without detracting from its mission of safety and soundness as it develops its 2012 budget."