Credit unions can now submit comments on the NCUA’s proposed succession planning rule, following its publication in the Federal Register on Thursday. The comment period ends on April 4, and comments should be submitted via the Federal Register.
At its January board of directors meeting, the NCUA board of directors approved 2-1 the proposed rule that would require boards of directors at federal credit unions to establish and adhere to processes for succession planning.
According to the NCUA, the succession plans will help to ensure that the credit union has plans to fill key positions, such as officers of the board, management officials, executive committee members, supervisory committee members and (where provided for in the bylaws) the members of the credit committee to provide continuity of operations.
Further, the proposed rule would require directors to be knowledgeable about credit unions’ succession plans.