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Credit unions that participate in federal government programs, such as holding Treasury tax-and-loan accounts or acting as issuing or paying agents for U.S. savings bonds, are considered federal contractors under the Department of Labor’s nondiscrimination and affirmative action rules.  But, is federal share insurance issued by the NCUSIF considered a federal contract as well?

Whether you get a “yes” or “no” answer to this question will depend on who you ask: NCUA will tell you that the long-standing answer to this question is no.  Federal share insurance is not a federal contract triggering affirmative action obligations.  But, if you ask the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), the answer is yes.  So, what’s a federally insured credit union to do?  Read more at CUNA's Compliance Blog.

 

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