The NCUA is seeking comment on a draft proposal that would allow federal credit unions to reimburse or directly pay dependent care costs for volunteer officials. According to the agency, the proposed rule is designed to reduce barriers to volunteer service and help federal credit unions to adopt family-friendly policies.

Under the proposal, a “volunteer official” would be defined as a credit union official who receives no compensation solely for serving in that role. Any decision to permit such payments would be left to individual federal credit union boards through formal policy. Eligible expenses would include dependent care costs incurred while officials attend board meetings and perform official duties.

The proposal defines “dependent care costs” as expenses for the care of a qualifying individual who is generally a dependent under age 13 or a spouse or dependent of any age who is incapable of self-care and resides with the official for more than half the year.

The agency is seeking public comment on 12 questions addressing potential conditions and limits of the payments, relevant definitions, consistency with the prohibition on lost-wage payments, meeting frequency and format, budgetary impacts, and possible implementation challenges.

To view and submit comments on the Notice of Proposed Rulemaking, click here.