On December 17, 2024, the NCUA approved a final rule that will require federally insured credit union boards of directors to establish succession planning processes for key positions.
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.
For smaller credit unions, the NCUA has provided several resources that they can use to develop succession plans such as the succession plan template included in the rulemaking, getting assistance through the Small Credit Union and Minority Depository Institutions Support Program, and completing online training available through the NCUA’s Learning Management System.
The final rule became effective on January 1, 2026.
The final rule can be found here.