INDIANAPOLIS--As the economy has taken its toll on communities where Indiana credit unions are located, the Indiana Credit Union League and its Servicecorp subsidiary have continued an overall emphasis on services offered to credit unions, and they have taken additional steps to provide financial support to affiliates.
“To address the financial challenges credit unions and their members are facing in the current economic environment, the League has taken several steps to assist Indiana’s credit unions in meeting these challenges,” said League President John McKenzie. “A number of efforts are underway.”
The League recently announced a 2010 dues rebate of $38,000. According to McKenzie, “We are in a position, because of prior years’ successes, to operate 2010 at a deficit and provide a rebate to affiliated credit unions. Affiliates will end up paying their 2009 dues amount for 2010. This is the same approach we took the previous year, where a dues rebate was provided so that credit unions paid the 2008 dues amount in 2009.”
Transfer of funds to Stabilization Reserve. There was a transfer of $250,000 from the League’s general retained earnings to the Stabilization Reserve (which is a board-designated reserve account on the League’s balance sheet), so that more funds are available to assist credit unions with financial needs through grants from that fund.
“To emphasize the importance the League places on advocacy, for the fifth year in a row, the League board authorized financial assistance to help affiliates attend the CUNA Governmental Affairs Conference (GAC),” McKenzie explained. “Financial assistance totaled $16,000.”
$90,000 annual savings from office relocation. The League and Servicecorp relocated their headquarters in late October which reduced office leasing expense by $90,000 annually through lease terms and reduction in office space.
“Assistance is also targeted at our Servicecorp clients,” said McKenzie. “We appreciate their loyalty and are rewarding it in a number of ways.”
Promotional rebates. Servicecorp is offering up to $20,000 in promotional rebates to client credit unions that participate in webinars, teleconferences and planning sessions from the League. A 20% rebate will be provided on the actual registration cost of these sessions up to the $20,000 maximum.
Coverage of client costs for data processing. On behalf of its Credit Union Card Center client credit unions, Servicecorp is covering the $57,881 in First Data programming expenses required for statement and disclosure compliance due to the Credit CARD Act of 2009 legislation.
Clients of Servicecorp’s CUCare group health insurance program received a premium holiday in the fourth quarter of 2009. Excess premiums due to less than anticipated claims expenses were refunded to credit unions from Servicecorp in the amount of $1.497 million, with another $609,000 scheduled to be refunded in 2010. There are 106 participating clients in CUCare’s group health program.