CUNA, NAFCU Merger Vote to Begin Aug. 28
The voting period lasts 60 days and is expected to end on Oct. 27. Officials also announce the updated dues structure.
Officials with CUNA and NAFCU released more details to credit union leaders about the proposed merger of the two lobbying groups on Thursday explaining the dues structure going forward if the merger is approved to create America’s Credit Unions. And, for the first time, officials announced when voting on the proposed merger would begin – Aug. 28.
According to posts from CUNA and NAFCU on their websites, chairs of the NAFCU and CUNA boards of directors, Gary Grinnell and Lisa Ginter, distributed an email update on the dues structure to members and stressed “that creating a clear, effective dues structure is a top priority.”
In the email to CUNA and NAFCU members, and according to the information posted online, “Existing credit union members will receive dues invoices from their respective association(s) later this year for 2024, which will be calculated using the same methodology in effect as of Dec. 31, 2023.”
Future dues information, according to both organizations, also included the following:
- 2025 dues: Equal to the greater of the dues that would have been paid using CUNA’s current methodology or NAFCU’s current methodology, as of Dec. 31, 2023.
- 2026 dues: Calculated using 2024 invoice methodology as indicated for existing dual members.
- 2027 dues: Calculated using 2024 invoice methodology as indicated for existing dual members.
- 2028 dues: Calculated by the new America’s Credit Unions dues structure, as will be determined by the board of directors.
In a blog post published Friday, NAFCU President/CEO Dan Berger wrote, “The proposed membership dues structure was built to help navigate the transition period and put America’s Credit Unions in the strongest position for launch – should you approve the merger.”
Grinnell’s and Ginter’s email to credit union members stated, “It’s important to reiterate that all decisions on this structure were driven by a shared commitment to the collective needs of our memberships. These decisions were made at the Board level, with input from both Jim Nussle and Dan Berger, in addition to outside legal consultants. Members of both CUNA and NAFCU Boards of Directors voted unanimously in support.
“We hope this clarifies many of your questions and underscores our prioritization of transparency. We truly believe the formation of America’s Credit Unions is an opportunity to better serve our collective membership, lead the industry into the future, and ensure the growth and prosperity of all credit unions. We encourage you to join us in voting in favor of this merger. The voting period is set to begin August 28, 2023.”
Voting will be open to members of both groups for 60 days and therefore should end on Oct. 27. If credit unions belong to both CUNA and NAFCU, they will be allowed to vote twice.
According to a NAFCU spokesperson, the voting results are expected to be announced by Nov. 2.
If approved, CUNA President/CEO Jim Nussle will lead America’s Credit Unions and Berger plans to step aside to pursue other opportunities once the merger is legally final, which is expected to be by January 2024.
While most of the leadership structure of America’s Credit Unions has been decided, there are many other unanswered questions as far as staffing levels and office locations of the new organization.
In an Aug. 10 interview with CU Times, Nussle said America’s Credit Unions would remain in Washington, D.C. but wasn’t sure about the Madison, Wis., location. “Yeah … so the thing I do know is that our headquarters will be in Washington, D.C. It is for both of our associations today. That will not change,” Nussle said. “Having said that, that’s a perfect example of ‘I don’t know.’ That’s a detail that is yet to be determined. We’re building agile sprint teams around a lot of these questions. We have a number of conferences we have to decide. We have a number of things like that. We have a team to build and a lot of issues to work out. So it’s a great question. It’s a worthy question, don’t misunderstand me, but we’re not yet even to that level.”
In his blog post on Friday, Berger added, “Voting on the proposed merger begins next week and it is my hope that you participate in this process and trust this is what is right for the industry and the 137 million members you serve.”
CUNA and NAFCU have posted more information online concerning dues and other details about the proposed merger, which can be found here.