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NCUA Finalizes Succession Planning Rule for Federally Insured Credit Unions
Michael Christians • December 21, 2024
At its final board meeting of 2024 on December 17th, the National Credit Union Administration (NCUA) issued a succession planning rule for all federally insured credit unions (FICUs).
Under the rule, an FICU must establish a written succession plan that must be approved by the credit union's board of directors. The succession plan must cover, at a minimum, the following positions:
- Members of the board of directors
- Management and assistant management officials
- Senior executive officers, and
- Other credit union personnel deemed critical by the credit union's board of directors.
Each FICU's succession plan must address the following:
- The title of each position covered by the succession plan, and if the position is term-limited (e.g., board member), the expiration date of the incumbent's term
- The credit union's plan for permanently filling vacancies in any covered position, and
- The credit union's strategy for recruiting qualified candidates for covered positions.
Each FICU must review, and update as necessary, its succession plan in accordance with a schedule established by the board of directors, but not less than every 24 months.
The final rule, available here, is effective January 1, 2026.
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Michael Christians Consulting, LLC
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