Katie BaileyThe National Credit Union Administration (NCUA) has approved a final rule allowing federal credit unions to reimburse volunteer officials for reasonable dependent care expenses incurred while conducting official credit union business.
Examples include childcare, eldercare, or care for a disabled dependent when expenses are incurred because of board meetings or other official duties.
Key Considerations
- The rule applies only to federal credit unions and corporate federal credit unions.
- Reimbursement is optional and subject to board approval.
- Credit unions choosing to offer reimbursement should adopt written policies addressing eligibility, documentation, approval processes, and reimbursement limits.
- The rule does not change existing tax reporting requirements.
The final rule is intended to reduce barriers to volunteer service and may help federal credit unions recruit and retain qualified board and committee members.
