washingtonscene
planned to assess member-owned credit Speaker of the House Rep. Nancy Pelosi
unions nearly $5 billion to replenish losses (D-Calif.) and Senate Majority Leader
by “corporate” (wholesale) credit unions Harry Reid (D-Nev.) hosted separate meet-
on risky loans. The latter group are “credit ings, along with key committee leaders.
unions for credit unions.” At the House meeting, Armed Services
The plan by the NCUA (which is to Committee Chair Rep. Ike Skelton (D-
credit unions what the Federal Reserve Mo.) applauded the president’s budget for
and the FDIC are to banks) would force including funds to extend concurrent re-
many military credit unions into the red, ceipt eligibility to severely disabled retir-
which could mean degraded services, ees forced into early medical retirement.
reduced savings returns, and higher loan Skelton said his committee eagerly will
rates for military families. support expansion of concurrent receipt
Here are some additional specifi cs. but that budget rules on “mandatory spend-
Did military credit unions engage in sub- ing” will require him to seek the support of
prime or other risky loan activities? other committee chairs to volunteer offset-
No, but they and other member-based ting cuts to pay for it. He said this could put
credit unions are being assessed, propor- the committee at a disadvantage if the bud-
tional to their resources, to bail out a group get also includes any TRICARE fee hikes
of “corporate” credit unions that did so. that would require still further offsets.
Is my credit union at risk of becoming During the meetings, Hill leaders asked
insolvent because of this? attendees to outline their priorities for
That is not likely. Member-based credit the year. Association leaders expressed a
unions remain sound. As long as your general consensus in support of advance
credit union is federally insured (look for funding for the VA, doing more for wound-
a blue NCUA insurance sign), your depos- ed warriors and especially their family
its are insured up to $250,000. caregivers, opposing disproportionate
What would it take to fix this inequity? TRICARE fee hikes, expanding concurrent
In part because of MOAA’s efforts, receipt, eliminating the Survivor Benefi t
the NCUA recently has recommended Plan/Dependency and Indemnity Compen-
legislation that would ease the impact by sation offset, and increasing assistance for
creating a Treasury Department fund that homeless veterans, among others.
would spread the costs over seven years. In addition, MOAA voiced strong
MOAA is joining military credit unions in support for sustaining end-strength in-
supporting this legislation. creases as the only way to ease deployment-
related stresses on servicemembers and
Hill Leaders
their families and noted the importance of
sustaining a commitment to restore full pay
Hear Concerns
comparability by authorizing a 3.4-percent
military pay raise rather than the 2.9-per-
MOAA meets with House and
cent raise proposed in the defense budget.
Senate leaders.
Information on the application process is
available at
http://hap.usace.army.mil. MO
I
n March, MOAA and other military
— Contributors are Col. Steve Strobridge, USAF-
and veterans’ organizations met with
Ret., direct or; Col. Mike Hayden, USAF-Ret.; Col.
democratic leadership of the House
Bob Norton, USA-Ret.; Cmdr. René Campos, USN-
Ret.; Cmdr. John Class, USN-Ret.; Col. Phil Odom,
and Senate in separate meetings to discuss
USAF-Ret.; Joy Dunlap; Cass Vreeland; and Bret
association priorities for 2009. Shea, MOAA’s Government Relations Department.
3 8 M I L I T A R Y O F F I C E R M AY 2 0 0 9
MMay_scene.indd
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