Should state-chartered credit unions in Michigan be permitted to provide reasonable compensation to board members for the time and effort they provide to the credit union?
At its February meeting, the MCUL board approved a list of more than 50 recommendations for updating the Michigan Credit Union Act, but held off on approving a proposal that would allow board member compensation so it could obtain additional input from credit union leaders. The MCUL Board of Directors is seeking feedback from Michigan credit unions regarding board member compensation in advance of their April 28 meeting, where the issue will be discussed in greater depth.
The MCUL government affairs team is working with the state Legislature on amending the MCUA, which was last updated in 2003.
MCUL & Affiliates CEO David Adams said the package of proposed amendments was developed after an MCUL working group thoroughly reviewed the state charter, looking for ways to reduce regulatory burden and modernize the act. The working group included Tiffany Ford, CEO of University of Michigan CU; Jeremiah Kossen, vice president of operations for Lake Michigan CU; Chadd O'Brien, general counsel for ELGA CU; Jim Orlowski, general counsel of DFCU Financial; and Lisa Gray, director of compliance and risk management, Dow Chemical Employees' CU.
“The working group members should be complimented for the solid work they did in developing a wide range of proposals designed to reduce regulatory burden and make the Michigan charter the strongest in the nation,” Adams said. “Our state already has one of the best credit union acts in the country, but these changes would make it even better.
“The MCUL board is very interested in hearing your feedback on the issue of board compensation,” he said.
Credit unions are invited to reach out to the board members for their districts:
I. Rudy Callen, Kalsee CU, Battle Creek Chapter, Greater Southwest Chapter
II. Dan Baines, My Personal CU, Grand River Chapter
III. John Buckley (vice chairman), Gerber FCU, Paul Bunyan Chapter, MOON Chapter
IV. Connie Toensing, Chippewa County CU, U.P. Chapter
V. Tim Benecke, Wildfire CU, Blue Ox Chapter, Mid-Michigan Chapter
VI. Karen Church (secretary/treasurer), ELGA CU, Flint Chapter, Capital Area Chapter
VII. Vicki McIntosh, Belle River Community CU, Metro East Chapter
VIII. Lon Bone, Genisys CU, Oakland Chapter
IX. Tony Carnarvon (chairman), Zeal CU, Metro West Chapter
X. Jim Francis, Jackson Community FCU, SoMi’ Chapter, Downriver Chapter
The full list of recommendations was reviewed and referred to the board by the Legislative Forum Executive Committee at its Jan. 12 meeting. The recommendations were discussed by the full Legislative Forum and the State and Federal Working Group on Jan. 23. The recommendations were also provided to all Michigan credit unions CEOs for review and comment in early February. The package of proposed amendments continues to be robustly discussed at first quarter chapter meetings as part of focused discussions led by Dave Adams and MCUL EVP/COO Ken Ross.
Comments to board members should be provided in advance of the April 28 MCUL board meeting.