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Operating Fee Schedule Adjusted for 2020

20-FCU-01 / January 2020
Operating Fee Schedule Adjusted for 2020
All Federal Credit Unions
Operating Fee
All Federal Credit Unions
Operating Fee Schedule Adjusted for 2020

Dear Board of Directors and Chief Executive Officer:

The enclosed 2020 Operating Fee Schedule will help you calculate the exact amount of your credit union’s 2020 operating fee. The enclosure includes a web link to the NCUA’s online calculator.1 If your credit union owes an operating fee, it will be due no later than Wednesday, April 15, 2020.

The rest of this letter provides additional insight to the operating fee calculation and payment options.

What is the timeline for the billing?

In March 2020, federal credit unions with assets greater than $1 million will receive an invoice for their 2020 operating fees. The operating fee exemption continues to apply for federal credit unions with assets of less than $1 million. Your credit union’s operating fee will be based on assets reported as of December 31, 2019.

At the same time, all federally insured credit unions will be notified of any adjustments needed to maintain their Share Insurance Fund capitalization deposits at one percent of insured shares, as required by the Federal Credit Union Act. Your credit union’s capitalization deposit may be adjusted up or down, based on insured shares reported as of December 31, 2019.

Then NCUA will combine your operating fee and capitalization deposit adjustment into a single invoice. Payment will be due no later than April 15, 2020.

How do I make the payment to the NCUA?

All federally insured credit unions are encouraged to participate in the PAY.GOV direct debit program. To enroll, please complete the Authorized Electronic Transfer Payments form, which can be found on, and email the form to Once enrolled, credit 1 Scheduled to be updated by December 18, 2019. 2 unions will continue to receive invoices by mail. Payments will be drafted automatically on the due date; no further action is required.

Federally insured credit unions that do not participate with the direct debit program must submit payments to the NCUA in accordance with the instructions provided with the invoice and no later than Wednesday, April 15, 2020.

What are the main factors impacting the operating fee?

There are two major factors contributing to the 2020 average rate increase of 1.13 percent. They are the Overhead Transfer Rate (OTR) level and changes in the NCUA’s capital investment program.

Each year, the NCUA uses the OTR to determine how much of the NCUA’s operating budget is funded by the National Credit Union Share Insurance Fund. The OTR is derived from estimates of the NCUA’s resources that will be used for insurance-related functions. Generally, if the OTR decreases, the operating fee collected from federal credit unions increases, and vice versa.

For 2020, the OTR increased from 60.5 percent to 61.3 percent, which decreased the operating fee. However, the operating fee increased because of the increased cash needs for capital investments planned for 2020, as well as the increased budget level. Additional discussion of the OTR and detailed information about the NCUA budget are available on the Budget and Strategy page of the NCUA website.

To preserve the relationship of the operating fee scale to federal credit unions within each asset tier, the asset range for each tier has been adjusted by the projected growth of federal credit union assets. You will see the new asset ranges to the right of the adjusted fee rates on the enclosed chart.

If you have any questions about your credit union’s operating fee, please contact the NCUA’s Office of the Chief Financial Officer at


Rodney E. Hood


1Scheduled to be updated by December 18, 2019.

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