By The WayThe By The Way newsletter is a great way to keep Kentucky credit unions informed of the latest updates in governmental affairs, compliance and regulations, education and training. In addition, By the Way highlights the difference credit unions are making on a daily basis. League Updates CUNA Announcements Educational Opportunities Credit Union Announcements
If you have new or an announcement you would like to share, please send your article to Janet Garrett. Compliance Updates A message from Wendell
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| March 5: | League Office (Louisville) |
| April 23: | Bluegrass Indoor Karting (Louisville) |
| August 13: | League Office (Louisville) |
| September 4: | Kentucky State Capitol (Frankfort) |
| October 4: | Hyatt Regency Lexington |
*Participants will be required to work on a group project, which may require additional hours and/or travel outside of your credit union’s normal work hours. Group project may require coordination among credit unions.
Educational Investment
The cost for the program is $599 and includes program materials, meals and refreshments on meeting days, and 1-day registration to the Annual Meeting & Convention. Travel expenses are not included.
Why apply?
- Develop and build leadership skills.
- Share and grow with peers.
- Learn from nationally recognized presenters and industry experts.
Your Credit Union’s Best Investment? Talent.
Employees with leadership skills will strengthen your credit union, improve your bottom line, and ensure a successful future.
Organizations that invest in their employees are 50 percent more likely to see these employees outperform expectations.
Invest in talent. Invest in your people.
For information regarding the Emerging Leaders Program, please visit https://www.kycul.org/emerging-leaders-program.
2019 IRA Training registration is open
February 12 - 13, 2019 | League Office
Educational Investment: $239 per person per day
REGISTER
Day 1: IRA Essentials
9:00 a.m. – 4:30 p.m.
IRA Essentials gives attendees a solid foundation of IRA knowledge. Exercises are included throughout the day to help participants apply information to job-related situations. Attendees will leave this session able to work with IRA owners and process basic IRA transactions with confidence. This is a beginner’s session; no previous IRA knowledge is assumed.
Introduction and Establishing IRAs
- Identify the tax differences of a Traditional and Roth IRA
- Examine the process for establishing an IRA and the required documents
- Differentiate between the types of beneficiaries
IRA Funding
- Learn about the Traditional and Roth IRA eligibility requirements
- Identify the contribution limit and deadline
- Communicate contribution reporting deadlines
IRA Distributions
- Identify federal income tax withholding requirements
- Examine IRS penalties and penalty exceptions
- Summarize the tax consequences of IRA distributions
- Communicate distribution reporting deadlines
IRA Portability
- Differentiate between a rollover and a transfer
- Recognize rollovers between IRAs and employer- sponsored retirement plans
Who Should Attend?
You should attend this seminar if you:
- need to learn the basics of Traditional and Roth IRAs or
- want an updated, general refresher on IRA rules.
Day 2: Advance IRAs
9:00 a.m. – 4:30 p.m.
Advanced IRAs builds on the attendees’ basic knowledge to address more complex IRA issues their financial organizations may handle. This is an advanced session; previous IRA knowledge is assumed. The instructor uses real-world exercises to help participants apply information to job-related situations.
IRA Update
- Explain the recent changes affecting IRA owners.
- Discuss the Roth modified adjusted growth income limits.
- Recognize how recent changes may affect your financial organization.
Required Minimum Distributions
- Calculate a required minimum distribution (RMD).
- Discuss the RMD rules and reporting requirements.
Beneficiary Options
- Describe beneficiary distribution options.
- Recognize the differences for spouse, nonspouse, and nonperson beneficiaries.
- Explain beneficiary payment deadlines.
Advanced Portability
- Summarize the restrictions on the movement between IRAs.
- Recognize the options available when moving from an employer-sponsored retirement plan to an IRA.
- Explain the result of violating the portability restrictions.
- Roth IRA Conversion Contributions
- Describe a conversion.
- Explain the effect of withholding on a conversion.
- Report a conversion.
- Define the consequences of an ineligible conversion.
IRA Owners Tax Forms and You
- Determine which tax forms an IRA owner must complete when certain IRA activity occurs.
- Understand which IRS penalty taxes may apply to IRA owners.
Who Should Attend?
You should attend this seminar if you:
- are an IRA administrator or member service representative who has working knowledge of basic IRA operations and wish to expand your expertise;
- are a compliance specialist with procedural oversight of IRA policies and practices; or
- are support personnel responsible for promotional materials that describe the services provided by your credit union.
Make plans to join us at the 2019 Southeast Director’s Conference
Save the date and make plans to join your peers from credit union boards across the Southeast for two-and-a-half days of education designed for credit unions’ volunteer leaders. The 2019 Southeast Director’s Conference, set for July 21 – 24, 2019, features a full range of informative sessions on critical, timely issues, with first-rate speakers to address the economy, lending environment, and much more.
Click here to reserve your room.
The Southeast Regional Directors’ Conference is designed for credit union directors and committee members. The conference location rotates among the ten Southeastern states, giving each state an opportunity to host their fellow credit union volunteers and showcase the best of what their state has to offer. This conference features a full range of informative educational sessions that provide a conduit for learning about critical issues important to today’s ever-changing financial industry.
The 2019 program will be hosted by the Kentucky Credit Union League and held at The Historic Seelbach Hilton, in the heart of Downtown Louisville, Kentucky; conveniently located 10 miles from Louisville International Airport.
At the Seelbach Hilton, you’ll experience modern amenities wrapped in a storied past that delivers distinct character. The Seelbach Hilton is equal parts historical landmark and architectural masterpiece. A stay at this grand luxury hotel appearing on the National Register of Historical Places will never be described as “ordinary.”
Louisville is home to iconic attractions that visitors can’t experience anywhere else. Here, you can bet on the ponies at Churchill Downs (home of the Kentucky Derby), get inspired at the Muhammad Ali Center, see the craftsmanship firsthand at the Louisville Slugger Museum & Factory, go back in time on the Belle of Louisville, tour Bourbon distilleries and more.
Commonwealth CU Goes Casual for a Cause
The month of December is widely recognized as the month of giving, but team members at Commonwealth CU believe the act of giving should not be contained to just one month. That belief was the driving force behind the Dress Down Friday Program.
This idea was born in 2014 when Commonwealth CU adopted the common purpose of “We Better Lives Through Our Passion to Serve.” In order to truly Better Lives, team members recognized this purpose could not end with their members but should also be extended to the communities they serve. The Dress Down Friday Program helps fulfill this purpose. To participate, team members pay $2 every Friday to wear jeans and casual shoes to the office. The money collected from that day is then donated to a charity or other non-profit group in one the communities the credit union serves. Although participation in this program is voluntary, team members have embraced the ability to help their friends and neighbors by simply dressing down.
To date, Commonwealth CU employees have raised more than $26,000 through the Dress Down Friday Program. As part of their annual holiday tradition, team members can dress down for various charitable organizations in the last two weeks of December. This year, those additional dress down days will benefit the Open Hands Food Pantry in Lawrenceburg; Operation Care Kentucky in Shelbyville; Transform Scott County in Georgetown; Frankfort Mission Clinic; St. Vincent de Paul in Louisville; God’s Pantry Food Bank in Lexington; and Christian Life Center in Harrodsburg.
Fort Knox Federal Supports Those Impacted by Partial Government Shutdown
Fort Knox Federal Credit Union is offering assistance to those affected by the partial government shutdown. This may include federal employees or contractors within the Department of Homeland Security along with the Departments of Justice, State, Interior, Agriculture, and Housing and Urban Development. Impacted members may qualify for a personal loan with no payments due for the first 90 days or withdraw up to $10,000 of their certificate deposits early - without penalty - by visiting their local branch.
Other options available for those impacted include extending the payment due date on their current loans by 30, 60 or 90 days, depending on need as determined by the credit union, or applying for a new low-rate VISA credit card or instant cash line of credit to ease financial stress during the shutdown.
“Supporting members and the broader community during the partial government shutdown is part of our ‘people helping people’ philosophy,” says Ray Springsteen, CEO of Fort Knox Federal Credit Union. “During the 16-day shutdown in 2013, we provided 200 emergency loans for those impacted. As the largest member-owned financial institution in Kentucky, we want to help hard-working Kentucky families through this shutdown as well.”
Impacted members should visit the credit union’s website, www.fortknoxfcu.org or visit a branch for more details.
Park Community Credit Union Announces New Partnership with Simmons College and St. Stephen Church
Park Community Credit Union announced this week a new partnership with Simmons College of Kentucky and St. Stephens Church. The announcement positions Park Community as Simmons College “Preferred Credit Union.”
The sponsorship will include five, four-year scholarships to prospective incoming students of Simmons
College, as well as financial literacy programs for students, staff, alumni, and the community. The sponsorship also includes renovations to the St. Stephen Family Life Center where Simmons Athletics hosts their basketball games. Renovations include an Interactive Teller Machine, new gym showers, lighting, improvements to the locker room, and gym floor cover – just to name a few.
Along with the renovations, Park Community will also sponsor the Simmons basketball program and provide grants to help subsidize housing costs for student athletes. In addition, Park will sponsor The Angela Project, and the West Louisville Forum Speaker Series.
In the spirit of the credit union creed of, “People Helping People”, Park Community has been on a mission to partner with established local institutions that share a similar passion for reinvesting in the Louisville community. This week’s announcement with Simmons College and St. Stephen is a significant addition to that effort as it continues to expand its presence in the Louisville area.
“We are excited to be the partner of St. Stephens Church and Simmons College, a Historically Black College/University, and an institution that plays a significant and historical role in education, community revitalization, and social and economic justice,” said Raymond Smith, Vice President of Community Development for Park Community Credit Union.
“The support we’ve received from Park Community Credit Union in just one year is not only admirable, but it also shows their true commitment to closing the wealth gap in the urban community,” says Dr. Kevin Cosby, president of Simmons College of Kentucky. “As Park Community is resourcing minority servicing institutions, it is uplifting the entire city.”
Service One Partnering with SKyPAC
Southern Kentucky Performing Arts Center (SKyPAC) serves as the regional affiliate for 23 Kentucky counties in the 96th Scholastic Art & Writing Awards and is pleased to announce Service One Credit Union as our presenting partner. Presented nationally by the nonprofit organization, Alliance for Young Artists & Writers, Scholastic Art & Writing Awards is the country's longest-running and most prestigious scholarship and recognition program for creative students in grades 7-12. This year, nearly 350,000 works of art and writing will be submitted to more than 100 Affiliate Partners across the country. Students and educators have been working throughout the fall.
In celebration of this year’s regional award recipients, an exhibition of their work will open during January 2019 in the Wedge Education Gallery at SKyPAC. A reception and awards ceremony will be held at SKyPAC on Saturday, February 23, 2019, from 12:00 p.m. to 2:00 p.m. with awards beginning promptly at 12:30 p.m.
“Service One Credit Union is pleased to become a partner with SKyPAC, and help provide recognition and opportunity for students in the region,” said Service One Credit Union President and CEO, Rebecca Stone. “At Service One,” Stone continued, “our purpose is ‘A better life experience…one person at a time!’, and we’re excited to meet that purpose in various ways, including recognizing the value of the arts and creativity in the education of our students.”
Since the program’s founding in 1923, the Awards have fostered the creativity and talent of millions of students, including renowned alumni who have gone on to become leaders in their fields, including Andy Warhol, Truman Capote, Richard Avedon, Philip Pearlstein, and Sylvia Plath. More recently, Stephen King, Richard Linklater, Zac Posen, and Lena Dunham received Scholastic Art & Writing Awards when they were teens.
Every year, SKyPAC has the opportunity to recognize the exceptional work of students from grades 7-12 in almost 30 categories of art and writing. Hundreds of young artists from throughout southern Kentucky will have their artworks adjudicated, with the top winners earning a spot in the Wedge Education Gallery at SKyPAC. https://www.theskypac.com/
FFIEC Issues Update to Exam Modernization Project
The Federal Financial Institutions Examination Council (FFIEC) released its second update on its Examination Modernization Project in early December, following one from March of this year. According to the FFIEC, further action and additional updates may be needed as the project progresses.
The most recent update provides common risk tailoring principles and practices used by federal regulators, NCUA, Federal Reserve Board, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency, as well as FFIEC’s State Liaison Committee when risk tailoring examinations.
Common risk tailoring principles and practices include:
- Recognizing there are financial institutions, or areas within institutions, that present low risk, and in those cases, minimum examination procedures are generally sufficient to assess the institution’s condition and risks;
- Allocating more examination resources to higher risk areas and fewer resources to lower risk areas;
- Using data from the quarterly Call Report filings to monitor changes to the institution’s business model, complexity and risk profile between examinations;
- Leveraging available information, including analyses and conclusions from ongoing offsite monitoring and previous examinations to determine the financial institution’s risk profile and the scope of the next examination;
- Considering the financial institution’s ability to identify and control risks when risk-focusing examinations;
- Tailoring the pre-examination request list to the institution’s business model, complexity and risk profile;
- Contacting institutions between examinations or prior to finalizing the scope of the examination to help inform an examiner’s assessment of an institution’s risk profile; and
- Following up between examinations on institutions’ actions taken to address areas in need of improvement.
Federal and state regulators will clarify if needed, any issued guidance with examination staff. At the beginning of the examination, examiners should reach out to the credit union’s management to discuss the examination plan and rationale for the tailored risk focus areas.
Based on the principles of the Examination Modernization Project examiners, if they haven’t done so already, will:
- Consider the unique risk profile, complexity and business model of the institution when developing an examination plan;
- Analyze existing information such as Call Report data, publicly available information, and confidential supervisory information to help identify areas of higher and lower risk when planning examinations;
- Monitor financial institutions between examinations;
- Tailor the document request list based on the financial institution’s business model, complexity, risk profile and planned scope of review;
- Apply examination procedures in a way that reduces the level of review of low risk institutions or low risk areas; and
- Discuss financial conditions, risk profiles, new or expanded business lines, and pertinent new supervisory or regulatory information with institution management prior to finalizing the scope of review.
In addition to CompBlog, CUNA’s Compliance Community contains discussion boards and a number of other resources for credit union compliance professionals around the country.
SOURCE: CUNA
CUNA notes several concerns in NCUA’s appraisals proposal
CUNA generally supports NCUA’s proposed rule on real estate appraisals, it recommended several substantive changes in potentially problematic areas in its comment letter submitted Monday.
CUNA supports the agency’s efforts to reorganize the appraisal regulation to make it easier for readers to determine whether, and if so by whom, an appraisal is required.
Specifically, NCUA’s proposal would:
- Increase the threshold below which appraisals would not be required for non-residential real estate transactions to $1 million (up from $250,000);
- Restructure the appraisal regulation to clarify its requirements for the reader;
- Exempt from the appraisal regulation certain federally related transactions involving real estate where the property is located in a rural area; and
- Make certain conforming amendments to the definitions section.
One area of the rule flagged by CUNA concerns amending the exemption from appraisal requirements for certain transactions involving an existing extension of credit. The proposal would make the exemption available only if the transaction is not considered a new loan under generally accepted accounting principles (GAAP).
CUNA believes this change reduces flexibility and may make fewer transactions eligible for the exemption.