[Federal Register Volume 80, Number 14 (Thursday, January 22, 2015)]
[Notices]
[Pages 3258-3259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-00976]


-----------------------------------------------------------------------

NATIONAL CREDIT UNION ADMINISTRATION


Agency Information Collection Activities: Submission for Office 
of Management and Budget Review; Comment Request; for Extension of a 
Previously Approved Collection; Golden Parachutes and Indemnification 
Payments

AGENCY: National Credit Union Administration (NCUA).

ACTION: Request for comment.

-----------------------------------------------------------------------

SUMMARY: NCUA is announcing that a proposed collection of information 
has been submitted to the Office of Management and Budget (OMB) for 
review and clearance under the Paperwork Reduction Act of 1995 (PRA) 
(Pub. L. 104-13, 44 U.S.C. Chapter 35). The purpose of this notice is 
to allow for 30 days of public comment. This is related to NCUA's 
regulation that prohibits, in certain circumstances, a federally 
insured credit union (FICU) from making golden parachute and 
indemnification payments to an institution-affiliated party (IAP). The 
regulation requires requests for a troubled FICU to make a severance or 
golden parachute payment to an IAP to be submitted in writing to NCUA.

DATES: Comments will be accepted until February 23, 2015.

ADDRESSES: Interested persons are invited to submit comments to: (i) 
Desk Officer for the National Credit Union Administration, 3133-0183, 
U.S. Office of Management and Budget, 725 17th Street NW., #10102, 
Washington, DC 20503, or by email to: [email protected]; and 
(ii) Jessica Khouri by mail at the National Credit Union 
Administration, 1775 Duke Street, Alexandria, VA 22314-3428, by fax at 
Fax No. 703-837-2861, or by email at [email protected].

FOR FURTHER INFORMATION CONTACT: Requests for additional information, a 
copy of the information collection request, or a copy of submitted 
comments should be directed to Jessica Khouri by mail at the National 
Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-
3428, by fax at Fax No. 703-837-2861, or by email at [email protected].

SUPPLEMENTARY INFORMATION:

I. Abstract and Request for Comments

    NCUA is extending a previously approved collection of information 
for 12 CFR 750, Golden Parachute and Indemnification Payments. Part 750 
is NCUA's regulation that prohibits, in certain circumstances, a FICU 
from making golden parachute and indemnification payments to an IAP. 
The collection of information requirement applies to troubled FICUs 
seeking approval to make a severance or golden parachute payment to an 
IAP. Specifically, Sec.  750.6 requires requests for an FICU to make 
nondiscriminatory severance plan payments under Sec.  750.1(e)(2)(v) 
and golden parachute payments permitted by Sec.  750.4 to be submitted 
in writing to NCUA.
    In NCUA's experience, FICU requests to make severance and golden 
parachute payments within the scope of the rule do not occur often. 
NCUA estimates that, as of June 30, 2014, there are 6,429 FICUs. Of 
those, there were 278 problem FICUs with CAMEL 4 or 5 ratings. Of 
those, 229 FICUs had less than $50 million in total assets and an 
additional 22 FICUs had less than $100 million in total assets. These 
smaller FICUs are unlikely to seek NCUA approval to make severance or 
golden parachute payments because these payments are more typically 
seen in the executive compensation of larger, more complex FICUs. Of 
the remaining 27 larger problem FICUs, NCUA anticipates no more than 20 
percent would seek NCUA approval to make a severance or golden 
parachute payment. Accordingly, NCUA estimates that on an annual basis 
and across all FICUs, only approximately five FICUs will need to 
solicit NCUA approval in advance of making a severance or golden 
parachute payment within the scope of the rule and that preparing the 
request for approval may take four hours. Five FICUs times four hours 
per respondent equals 20 annual burden hours.
    In the Federal Register of November 5, 2014 (79 FR 65711), NCUA 
published a 60-day notice requesting public comment on the proposed 
collection of information. NCUA received no comments during that 
period.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number.
    NCUA requests that you send your comments on the information 
collection requirements to the locations listed in the addresses 
section. Your comments should address: (a) The necessity of the 
information collection for the proper performance of NCUA, including 
whether the information will have practical utility; (b) the accuracy 
of our estimate of the burden (hours and cost) of the collection of 
information, including the validity of the methodology and assumptions 
used; (c) ways we could enhance the quality, utility, and clarity of 
the information to be collected; and (d) ways we could minimize the 
burden of the collection of the information on the respondents such as 
through the use of automated collection techniques or other forms of 
information technology. It is NCUA's policy to make all comments 
available to the public for review.

II. Data

    Title: Golden Parachutes and Indemnification Payments.
    OMB Number: 3133-0183.
    Form Number: None.
    Type of Review: Extension of a previously approved collection.
    Description: Part 750 is NCUA's regulation prohibit, in certain 
circumstances, a FICU from making golden parachute and indemnification 
payments to an IAP. The collection of information requirement only 
affects troubled FICUs seeking approval to make a severance or golden 
parachute payment to an IAP. Specifically, Sec.  750.6

[[Page 3259]]

requires requests for an FICU to make nondiscriminatory severance plan 
payments under Sec.  750.1(e)(2)(v) and golden parachute payments 
permitted by Sec.  750.4 to be submitted in writing to NCUA.
    Respondents: Federally Insured Credit Unions.
    Estimated No. of Respondents/Recordkeepers: 5.
    Frequency of Response: Upon Request.
    Estimated Burden Hours per Response: 4.
    Estimated Total Annual Burden Hours: 20.
    Estimated Total Annual Cost: $800.

    By the National Credit Union Administration Board on January 14, 
2015.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2015-00976 Filed 1-21-15; 8:45 am]
BILLING CODE 7535-01-P