Dear Board of Directors:
I am pleased to announce that for the third consecutive year, NCUA is reducing the operating fee scale for federal credit unions.
For natural person federal credit unions, the 2012 operating fee rate is 0.9% lower than the 2011 rate.
Enclosed with this letter is a chart that will help you calculate the exact dollar amount of your credit union’s operating fee. The rest of this letter provides additional insight into the calculation methods.
The two major factors that influence a decrease in the operating fee rate are the growth of federal credit union assets and the overhead transfer rate (OTR). The OTR is calculated from the annual allocation of NCUA resources toward insurance-related functions. For 2012, the OTR increased to 59.3% from 58.9% to reflect NCUA’s increased focus on risks to the National Credit Union Share Insurance Fund (NCUSIF). The combination of growth in assets and the OTR resulted in a reduction to the 2012 operating fee scale.
Each year, in order to preserve the relationship of the scale to the federal credit unions within each asset tier, the asset range for each tier is adjusted by the projected growth of federal credit union assets. In 2012, based on federal credit unions’ rate of growth, the asset ranges are increasing by 4.75%. You will see the new asset ranges to the right of the lower fee rates on the chart enclosed with this letter.
In March, you will receive an invoice for your 2012 operating fee and for any amount needed to adjust your NCUSIF capitalization deposit to 1% of insured shares.
- Your operating fee will be based on assets you report as of December 31, 2011.
- Your capitalization deposit may adjust up or down based on the insured shares you report as of December 31, 2011.
NCUA will combine your operating fee and your capitalization deposit adjustment into a single payment that will be due by Monday, April 16, 2012.
If you have any questions regarding this letter, please contact NCUA’s Office of the Chief Financial Officer at (703) 518-6570 or firstname.lastname@example.org.