Last December, the National Credit Union Administration (NCUA) released a final rule on succession planning, amending parts 701 and 741 of NCUA’s regulations. The new rule requires both consumer federal credit unions and consumer federally-insured, state-charted credit unions to establish written succession planning, effective Jan. 1, 2026.
Final Rule to Reduce Unplanned Mergers
Lack of succession planning is one of the most common causes for unplanned and unforced credit union mergers. The final rule establishes a process for NCUA to help ensure a succession plan is implemented and that smaller institutions remain the cornerstone of the credit union system.
According to NCUA, the final rule requires the board of a federally insured credit union to establish a written succession plan that addresses the specified positions that are vital to the operation and management of the credit union, and regularly review these plans to ensure they are current. The final rule also requires newly appointed members of the board to be familiar with those plans within six months after their appointment.
For federally insured, state-chartered credit unions in states that have established succession planning requirements, the NCUA will defer to the state’s requirements if no conflict exists between the final rule and the state’s rules.
Resources
NCUA Succession Planning Final Rule
America’s Credit Unions Regulatory Final Rule: Summary and Compliance for Credit Unions
NCUA Board Approves 2025–2026 Budget; Succession Planning Final Rule Press Release
NCUA Succession Planning Template for Small Credit Unions (Here small credit unions are classified as being under $100 million.)
Webinar Training
The Credit Union Webinar Network will host a webinar focused on the Succession Planning Rule on Monday, Dec. 15. It is also available on-demand.
