Compliance Question of the Week
August 29, 2011
August 30, 2011
Is a credit union considered a federal contractor for affirmative action purposes when it is authorized to issue savings bonds? And since we will no longer issue savings bonds starting on Jan. 1, 2012, do we still need to have an affirmative action plan?
This question is best answered with a simple reprint from the CUNA guide:
The Office of Federal Contract Compliance Program’s (OFCCP) rules state that any financial institution “which is an issuing and paying agent for U.S. savings bonds and savings notes in any amount” is considered a federal contractor for affirmative action purposes. While the rule requires that the financial institution be both an issuing and paying agent, the Department of Treasury’s “paying agent only” application form (PDF 3880), as well as its “issuing agent only” application form (OPDF 3827), each include a requirement that applicants be bound by the requirements of Executive Order 11246, which includes equal employment and affirmative action. Consequently, if your credit union is a paying agent or an issuing agent for U.S. savings bonds, it is very likely that you are contractually required to comply with Executive Order 11246 and must take affirmative action to ensure that all employment decisions are made in a nondiscriminatory manner. In addition, if the credit union has 50 or more employees, it will be required to maintain a written affirmative action plan and annually file form EEO-1.
So, although you will no longer be an issuing agent starting in January, you will still be a paying agent—and hence still a federal contractor—and will need to keep your affirmative action plan.
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