Comments are due Feb. 20 on the “overhead transfer rate” (OTR) methodology proposed by the federal credit union regulator at its meeting last month, the agency said Thursday.
The OTR is the rate at which the National Credit Union Administration (NCUA) transfers earnings from the National Credit Union Share Insurance Fund (NCUSIF) to partially fund its supervision of federally insured credit unions (both federal and state-chartered).
In 2017, the NCUA Board committed to a review every three years of the methodology for determining the OTR. The NCUA, then, adopted several principles for calculating the OTR and various cost allocations associated with the calculation.
“The primary goal of the proposed changes to the OTR methodology at that time was to simplify the methodology and reduce the resources needed to administer the OTR,” the NCUA said in announcing the comments-due date. “The Board committed to subjecting the four principles to public comment every three years and in the event the Board proposes a change to one or more of the principles.”
Comment Period on the NCUA’s Request for Comment on the OTR Methodology Now Open