NCUA Wants More Information Before Commenting on Federal Pay Freeze (Misc News: November 30, 2010)
The NCUA is waiting for more information before it reacts to President Barack Obama’s call for a pay freeze for all civilian government employees.
Obama announced his plan on Monday for a two-year moratorium on pay increases. The pay freeze will save about $28 billion over the next five years, according to White House estimates. Obama’s plan requires congressional approval.
Last week, NCUA Chair Debbie Matz announced that the agency’s budget would increase 12 percent or $25 million to cover 78 new positions, as well as pay increases that average 5.7 percent, but go as high as 8 percent.
At the time, CUNA President/CEO Bill Cheney questioned the pay increases “at a time when so many credit unions are feeling the pain of an obstinate recession."
In addition, the NCUA has said the assessment to repay part of the Treasury Department’s loan to the Temporary Corporate Credit Union Stabilization Fund will likely be between 20 and 25 basis points. This year, the premium was 12.4 basis points. The premium to shore up the NCUSIF will likely be between 0 basis points and 10 basis points. This year, the premium was 13.4 basis points.