First Rulemaking Meeting on Director Compensation This Afternoon in Tumwater

The Washington Department of Financial Institutions (DFI) holds its first “rulemaking” meeting to begin the process of defining reasonable compensation for credit union directors. The new rules will be effective Jan. 1, 2014.

On June 20 the DFI held a pre-rulemaking meeting with the regulator announcing its plan to have board compensation rulemaking done by the end of the year. The DFI process includes a series of meetings to collect input. That was the first of several other steps the agency had to take before getting credit unions’ input. The DFI could not schedule an official meeting until the implementing legislation took effect on July 28. On Aug. 5 the DFI filed intent to do rulemaking (CR 101) with the Code Revisers Office.

At this afternoon’s meeting, accountants will weigh in on issues that need to be considered when compensating boards and will outline the new information required on IRS form 990s. A representative from the Department of Revenue will go over the state business and occupation tax, as sitting on a compensated board is considered a business activity in Washington. Finally, the meeting will begin a discussion on what should be provided as guidance and what should be required by rule regarding compensation to members of a board or supervisory committee.

The Northwest Credit Union Association (NWCUA) urges Washington Credit Unions to participate, according to John Trull, director of regulatory affairs. “Credit union leaders have the opportunity to help shape this rule. Even if credit unions are not going to compensate their board there are important principals being discussed,” Trull said.

Meeting Details:

Date: Tuesday, Aug. 27, 2013
Time: 2:00 p.m. – 4:00 p.m.
Location: Department of Financial Institutions – 150 Israel Road SW, Room 319 Tumwater, WA 98501

If you would prefer to dial in:

Dial-in instructions: 1.877.298.8255; conference ID 7009517#

 

Questions? Contact Lynn Heider: 503.350.2225, lheider@nwcua.org.

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