The National Credit Union Administration (NCUA) has issued a new rule aimed at improving succession planning for federally insured credit unions. This rule mandates that these credit unions create a written succession plan covering key positions and specifies that the plan must be regularly updated at least every 24 months. Responding to public comments, the NCUA has made several adjustments, such as reducing the frequency of required plan reviews and removing certain officials from the mandatory coverage list. The rule will take effect on January 1, 2026, giving credit unions time to prepare.
Simple Explanation
The NCUA has made a new rule that says credit unions must have a plan for when important people leave their jobs. This plan needs to be checked every two years and will start in 2026.