NCUA Finalizes Succession Planning Rule for Federally Insured Credit Unions

At its final board meeting of 2024 on December 17th, the National Credit Union Administration (NCUA) issued a succession planning rule for all federally insured credit unions (FICUs).

Under the rule, an FICU must establish a written succession plan that must be approved by the credit union's board of directors. The succession plan must cover, at a minimum, the following positions:

• Members of the board of directors
• Management and assistant management officials
• Senior executive officers, and
• Other credit union personnel deemed critical by the credit union's board of directors.

Each FICU's succession plan must address the following:

• The title of each position covered by the succession plan, and if the position is term-limited (e.g., board member), the expiration date of the incumbent's term
• The credit union's plan for permanently filling vacancies in any covered position, and
• The credit union's strategy for recruiting qualified candidates for covered positions.

Each FICU must review, and update as necessary, its succession plan in accordance with a schedule established by the board of directors, but not less than every 24 months.

The final rule, available here, is effective January 1, 2026.