WESTBOROUGH, Mass. – The Massachusetts Credit Union Share Insurance Corporation (MSIC) has rebated $9.85 million of excess assessments to its member credit unions.
The assessment was prompted by NCUA’s decision to permanently increase coverage at federally insured credit unions from $100,000 to $250,000. These “excess” deposits that formerly were insured by MSIC now are insured by the National Credit Union Share Insurance Fund. Each MSIC member credit union has been repaid for assessments on this portion of coverage now being provided by the NCUSIF, the company said.
Prior to announcing the rebate, MSIC received a private letter ruling from the IRS confirming that the refund of excess assessments would not jeopardize MSIC’s tax-exempt status as a Section 501(c)(6) corporation, and is otherwise permissible under the Federal Tax Code.
For some credit unions, MSIC returned all assessments paid during the past 16 years. Over the past two years, MSIC has advocated for the $250,000 federal deposit insurance limit to become a permanent part of federal law, resolved tax issues never before addressed nationally, and obtained regulatory approval for the rebate in the midst of the global financial crisis.
“MSIC’s sole objective is to help our credit union members during these difficult economic times. We hope this rebate will, in some small way, help our insured credit unions better serve their members,” said Mike Hanson, CEO of MSIC.
