NCUA 2013 Budget and OTR Approved Today
November 15 , 2012 -The National Credit Union Administration (NCUA) Board approved its fiscal year 2013 budget as well as the 2013 Overheard Transfer Rate (OTR) during its monthly November meeting today.
The NCUA Board approved a budget of $251, 387, 091 for 2013 equating to an increase of 6.1 percent over the 2012 budget. Most of this increase will fund employee pay and benefit increases if Congress passes a federal pay raise this year. Federal pay has been frozen for the past two years. The budget does not include an increase in NCUA staffing levels which will remain at 2012’s level of 1,261.5 Full Time Equivalents (FTEs). NCUA Chairman Debbie Matz noted that that the lack of staff increases “sends a strong signal that the credit union industry is emerging from the great recession.”
“As in past years, NASCUS offers no opinion on the NCUA’s overall budget,” said NASCUS President and CEO Mary Martha Fortney. “Just as with state agencies, we believe a regulator is uniquely positioned to understand its own budgetary needs to faithfully meet its safe and sound supervision obligation.”
The OTR decreased 20 basis points from 59.3 percent in 2012 to 59.1 percent for 2013. The agency reported the 2013 overall budget increase of $14 million for this decrease in the OTR, They also cited a workload increase for state supervision and examination increase of 8,191 hours and a decrease in federal supervision and examination of 1,794 hours. “NASCUS is carefully reviewing the information made public by NCUA regarding the Overheard Transfer Rate today,” said Fortney. “NASCUS has never advocated for a specific number for the OTR. Rather, we have consistently stated that the NCUSIF should pay costs that are appropriately allocated under Title II of the Federal Credit Union Act and that NCUA’s remaining Title I responsibilities should be funded by sources other than the Overhead Transfer.” NASCUS is encouraged by NCUA’s announcement that they will ‘work to further define what is insurance related’ in the determining of the OTR going forward. “NASCUS is committed to working with NCUA as they identify more accurately insurance related activities to ensure that the OTR is equitable to all parties,” said Fortney.