NCUA Projects 2013 TCCUSF Assessment, NCUSIF Premium

The National Credit Union Administration (NCUA) announced at its Nov. 15 open board meeting that the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment will likely be between 8 and 11 basis points in 2013, while a National Credit Union Share Insurance Fund (NCUSIF) premium may not be assessed next year at all.

The NCUA projects an NCUSIF premium range between 0 and 5 basis points in 2013. While the demands on the NCUSIF in 2013 will be determined by many economic factors and possible unforeseen losses, the most likely scenario will result in an equity ratio of just less than 1.3 percent, meaning the zero basis-point projection is much more likely than the projection of five.

Currently, the projected TTCUSF assessments that credit unions will need to pay are between $1.9 billion and $4.8 billion before the stabilization fund expires in 2021.

The NCUA expects to decide the level of the TCCUSF assessment next July, as it has done in the past.

The agency also modified the Overhead Transfer Rate (OTR) for 2013 to 59.1 percent, down slightly from the current OTR of 59.3 percent. Under the Federal Credit Union Act, the NCUA may transfer funds from the NCUSIF to fund administrative expenses and other expenses related to federal share insurance. The NCUA uses the OTR to allocate those expenses.

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Around the NW, Community Impact, Compliance, CU4Kids, Federal, NCUA.