NCUA: Some CU Volunteer Costs Can Be Reimbursed

NCUA stated in a recent legal opinion letter that associate directors or other credit union officials who occupy volunteer positions established by credit union directors may be reimbursed for any training expenses or related traveling expenses.

The NCUA opinion noted that the agency has previously stated that volunteer members of non-voting, advisory committees, such as emeritus or associate directors, should not be eligible to receive expense reimbursement or insurance benefits from the credit union they are serving. However, NCUA has reconsidered this position, and has decided that these types of volunteers would be eligible for reimbursement for training and training-related expenses, so long as the volunteers are not simply serving in an honorary capacity and are providing services that are established by the credit union’s management team.

Washington State-chartered credit unions, however, cannot reimburse this type of expense for non-voting directors (such as associate or emeritus directors). The Washington DFI recently issued an interpretive letter addressing the issue and concluding that such volunteers were not eligible for expense reimbursement

Posted in Compliance News, Events, NCUA.