Dependent care reimbursement proposal aids credit union volunteers

NCUA’s dependent care proposal appropriately confirms that such care is a reimbursable expense, and America’s Credit Unions submitted comments in support Friday. The proposal reflects America’s Credit Unions' 2024 request that NCUA clarify that dependent care expenses are reimbursable for volunteer officials.

Specifically, the proposal would ensure dependent care costs can qualify as “reasonable and proper” reimbursable expenses under the Federal Credit Union Act and section 701.33 of NCUA’s regulations and are not compensation when subject to existing safeguards.

“Allowing credit unions to reimburse reasonable dependent care costs incurred in connection with official duties helps ensure that volunteers are not required to bear these expenses personally in order to serve,” the letter reads. “This approach helps ensure that volunteer service remains practical for individuals with caregiving responsibilities.”

This flexibility is particularly important for smaller credit unions, “which often rely on a limited pool of volunteer officials and may face additional challenges recruiting individuals who are able to absorb out-of-pocket costs associated with board service,” it adds.

America’s Credit Unions believes the rule should allow federal credit union boards to adopt written reimbursement policies that set reasonable parameters for dependent care reimbursements, including documentation requirements, standards for determining reasonableness, and the types of official duties that may qualify.

Read the full letter