Newsroom

February 10, 2016

Reg Alert highlights NCUA OTR, op fee methodologies

NAFCU issued Regulatory Alerts and invited its members' input Tuesday on NCUA's overhead transfer rate and federal credit union operating fee methodologies. The OTR and operating fees provide the funding for NCUA's budget.

The OTR is used to transfer funds from the National Credit Union Share Insurance Fund to the agency's operating fund to cover "insurance-related" activities. For 2016, the OTR increased from 71.8 percent to 73.1 percent, which NCUA said was due to an increase in the percentage of insured shares held by federally insured, state-chartered credit unions. The agency's total 2016 budget is set at $290.9 million – up 4.1 percent from the year before.

NAFCU, in its Reg Alerts to members, emphasizes that comments to NCUA will not have any impact on the 2016 OTR rate or the 2016 operating fee schedule, both of which were set in November.

The methodologies were released in January. Comments on both are due April 5 to NAFCU and April 26 to NCUA.