WASHINGTON–CUNA’s affiliated credit unions have voted overwhelmingly in favor of a new membership model that gives CUs the option of belonging to the traditional CUNA/league model, or individually to either CUNA or their respective league.
The so-called “choice” issue is the first significant change to the membership rules in CUNA’s bylaws since the group was created in 1934. CUNA reported that approximately 2,200 CUs cast votes (43% of its membership), with more than 90% voting in favor.
The vote will have repercussions across the CUNA/league system, especially at the state level where leagues are going to have to come to decisions on how to move forward, including with dues structures. While many leagues prior to the vote indicated their members supported “choice,” other leagues’ member CUs rejected the proposal.
In addition, the vote raises two other issues:
* Depending on the decisions of some large credit unions, the revenues at some state leagues could be impacted
* While it didn’t receive significant attention, the new bylaws proposal also gives CUNA the option of significantly reducing the size of its board.
CUNA said “this historic change creates a new, open membership model for CUNA and empowers the board of directors to maintain a fair dues formula and board structure as the credit union system evolves.”
“This is a tremendous victory for credit unions. I am grateful to our members for this strong vote of confidence in CUNA and embracing a modern, national trade association model that will help us build an even stronger, more effective, and more united credit union system,” said CUNA President/CEO Jim Nussle in a statement. “This new membership model allows us to enhance and build upon our already strong interdependence with the Leagues. Interdependence has helped us serve the best interests of credit unions for many years.”
CUNA said that coordination with the state leagues for the 2017 dues cycle has already begun. Under the association’s new bylaws, credit unions will have the option of belonging to CUNA and their state League or CUNA alone. Several state Leagues already have implemented similar changes.
“I believe that this voting process has demonstrated our commitment to meeting the needs of our membership,” said Rod Staatz, CUNA board chairman and President/CEO SECU, Linthicum, Md., in a released statement. “What’s more, this new membership model will help us build an even stronger, more effective, and more united credit union system. I want to thank the CUNA Board for their efforts in supporting this important modernization.”
In its statement today, CUNA said it will now turn its attention to:
- Celebrating the credit union difference in all we do.
- Rejecting the “one-size-fits-all” regulatory scheme adopted out of convenience by policy makers and regulators that rob us of our very nature.
- Pointing out that credit unions aren’t banks, so policy makers and regulators must stop treating us like banks.
- Asserting credit union relevance in the market place by leading the kind of financial services disruption that Americans are searching for today, putting consumers first.
Chairman's Letter to Credit Unions
On Saturday, March 19, Staatz sent a letter to the CUNA membership that read in part:
Dear Credit Union Leaders,
The vote is in, and the membership of the Credit Union National Association (CUNA) has overwhelmingly approved the modernization of our bylaws. This historic change will provide new and modern association governance, including creating a new, open membership model for the association, while also granting the board a greater ability to maintain a fair dues formula and board structure. These changes will allow us to become more nimble and responsive as the credit union system evolves. With more than 2,200 credit unions participating, or over 43% of the membership, more than 90% voted in favor.
Clearly, there was strong support for these changes, and I believe that this voting process has demonstrated our commitment to meeting the needs of our membership. What’s more, this new membership model will help us build an even stronger, more effective, and more united credit union system. I want to thank the CUNA Board for their efforts in supporting this important modernization.
As a result of the vote, CUNA’s bylaws now allow for credit unions to become members of CUNA and their respective leagues, or of CUNA alone. Coordination with the state leagues for the 2017 dues cycle is already underway.
While we support credit union choice, we maintain our position that the best choice is dual membership. We wholeheartedly believe that CUNA/League interdependence is the best way forward for the credit union movement, as do many of the leagues that have already approved optionality for their members.
Interdependence has helped us serve the best interests of credit unions for many years, and will continue to do so for many years to come. It stands for a united system that is the best advocate for credit unions at both the state and federal levels, and in any arena in which our support and participation is needed.
Our stronger, united credit union system will accelerate CUNA’s bold agenda.
When we work together, when we fight for credit union interests using one voice, we better support, protect, unify and advance the credit union mission. The approved changes to our bylaws will only strengthen that.