Washington CUs Cannot Pay Expenses For Director Emeritus
OLYMPIA, Wash. – State chartered credit unions may appoint individuals as director emeritus to their boards but may not pay travel, training or insurance benefits for the ad hoc board member, the Washington state regulator said in a new ruling.
To appoint a director emeritus a credit union must create an enabling bylaw amendment that establishes the designation, its term of service, the requirements for attendance at board meetings, and to prohibit the director emeritus from voting on board of directors’ business, according to a legal interpretative letter signed by Linda Jekel, director of credit unions for the Department of Financial Institutions.
While the state’s credit union statute does not specifically refer to a director emeritus, it does allow each board to set the terms and requirements for each director, the letter states. “A director emeritus is typically an honorary title and may provide experience-based advice to elected officials,” she wrote.
“I do not find a director emeritus to be eligible to receive reimbursement for travel and training, nor to qualify for insurance benefits,” wrote Jekel. In addition, she added. “Training should be allocated to elected officials and regular committee members who have clear responsibilities and standards of care for their duties.”