NCUA Boardroom. Credit/NCUA
The NCUA Board is set to discuss the agency’s Voluntary Separation Programs (VSPs) during its upcoming April 17 meeting, potentially signaling a new phase of workforce restructuring aimed at modernizing operations and improving efficiency.
VSPs, which is comprised of Voluntary Separation Incentive Payments (VSIP) and Voluntary Early Retirement Authority (VERA), are employee-focused initiatives designed to help the NCUA realign its workforce with evolving organizational priorities, avoid layoffs and reduce long-term costs. Typically, these programs offer eligible employees financial incentives to voluntarily leave federal service or retire early, providing the agency with flexibility to meet strategic goals.
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The NCUA has historically used these programs during times of transformation. Most recently, in 2020 and 2021 during the COVID-19 pandemic, the agency implemented VSPs as part of a broader modernization effort. At that time, NCUA Chairman Rodney Hood emphasized that the voluntary programs allowed the agency to “right-size and realign the workforce” amid changing industry demands, including a shift toward digitization and remote examinations.
The upcoming discussion is expected to revisit these themes. With federal regulators including the NCUA facing increased scrutiny under the Department of Government Efficiency (DOGE), an agency focused on reducing bureaucratic overhead, VSPs may become a key tool for reshaping the agency without resorting to involuntary separations.
If approved, the new VSP cycle could target specific departments or roles based on updated workforce planning assessments, mirroring the approach used in past years. Participation would remain optional and subject to approval, with financial incentives likely capped at the federal standard of $25,000 or more depending on authorization.
As credit unions navigate evolving economic and regulatory challenges, any changes to the NCUA’s structure could impact how the agency delivers examinations, guidance and oversight in the months ahead.
The NCUA Board has not met publicly since February. The March Board meeting was canceled.
The NCUA Board convened two closed-door meetings on March 12 and March 21, citing personnel matters as the agenda for both sessions.
These meetings were closed to the public under Exemption 2 of the Sunshine Act. Since these meetings were classified as "Closed pursuant to Exemption (2)", there is indication that they involved discussions about internal personnel matters, such as hiring, promotions, disciplinary actions or other sensitive employment-related issues.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
