James Schenck, PenFed
TYSONS, Va.–The $22.8-billion PenFed Credit Union has issued a statement saying it supports an NCUA proposal to begin paying rebates to credit unions from the Temporary Corporate Credit Union Stabilization Fund (TCCUSF).
The NCUA board is scheduled to vote on closing the TCCUSF, merging it with the National Credit Union Share Insurance Fund, and making rebate payments at its meeting on Sept. 28.
Federally insured credit unions paid $4.8 billion in assessments to the Temporary Corporate Credit Union Stabilization Fund from 2009-2013.
“PenFed commends NCUA for managing the Stabilization Fund out of the financial crisis and into a surplus,” said PenFed President and CEO James Schenck. “We thank NCUA Chairman J. Mark McWatters and Board Member Rick Metsger for their initiative to begin returning that surplus to credit unions in 2018—rather than waiting until the Stabilization Fund expires in 2021. The timing of the vote to finalize the proposal will be critical. If the NCUA board votes to merge the Stabilization Fund into the National Credit Union Share Insurance Fund before the end of the federal Fiscal Year on September 30, 2017, NCUA could begin paying rebates to credit unions in 2018.”