Newsroom

NAFCU President and CEO Dan Berger has a new op-ed in CUInsight touting the association’s advocacy efforts to secure key provisions of the NCUA’s recently proposed rule to reform field of membership (FOM) requirements.

“We have called on the NCUA to modernize outdated field of membership rules for years to allow credit unions to remain competitive and thrive in their communities,” Berger writes. “NCUA Board members have acknowledged the need for regulation to be effective but not excessive, and the board’s recent rulemakings show a shift toward principles-based regulation.”

Berger details some of the proposed changes, including one specifically sought by NAFCU to offer membership to all immediate family and household members when a credit union member passes away. Under the current rules, only a surviving spouse qualifies for membership; however, Berger notes that other family members and caretakers are often beneficiaries of assets.

“Out of necessity, these now-ineligible non-members are forced to withdraw funds from the credit union and deposit them at another institution – often not a credit union,” Berger explains. “In fact, NAFCU was initially made aware of this issue by a member credit union, who noted that 64 percent of the funds in those accounts were removed from its credit union altogether. Adding another layer of concern for this institution, the average age of its membership is about 50 years old.”

Berger adds that industry trends “show an aging membership and an accelerated transfer of shares out of member accounts.”

“The proposed survivorship revision shows compassion to families in their greatest time of need. This small but meaningful change is sure to strengthen the bonds of credit unions and their members, who now have peace of mind knowing their family will continue to be well served by the institution that has been there throughout their life in times of need,” Berger concludes.

Read Berger’s full op-ed online.