Oregon joins the ranks of states permitting credit union board compensation

Jim co-wrote an article with Chris Burns-Fazzi on Oregon's new board compensation law.

On June 16, Oregon governor Kate Brown signed into law a bill that will permit reasonable compensation for members of state-chartered credit union boards of directors. The new law makes Oregon the 16th state to permit board compensation, and the third to permit the practice in the last three years.

IRS to release machine readable Form 990 data next year

Yesterday the IRS announced that it will publish data from Form 990 in a machine readable format beginning in early 2016. Currently, the Form 990 data is available as a low resolution image, which makes it difficult to research many organizations at once. The new format will be XML-based, enabling computers to quickly analyze the data.

This new resource will make peer comparison surveys much easier for healthcare organizations, credit unions, and their consultants. Only state-chartered credit unions submit Form 990, but both federal and state-chartered credit unions can use the data.

For example, the current data looks like this:

Screen Shot 2015-07-01 at 4.00.09 PM.png

That same data in the new format will look like this:

<IRS990ScheduleJ documentId="RetDoc1042400001">
    <FirstClassOrCharterTravel>X</FirstClassOrCharterTravel>
    <TravelForCompanions>X</TravelForCompanions>
    <WrittenPolicyReTAndEExpenses>1</WrittenPolicyReTAndEExpenses>
    <SubstantiationRequired>1</SubstantiationRequired>
    <CompensationCommittee>X</CompensationCommittee>
    <WrittenEmploymentContract>X</WrittenEmploymentContract>
    <CompensationSurvey>X</CompensationSurvey>
    <BoardOrCommitteeApproval>X</BoardOrCommitteeApproval>
    <SeverancePayment>0</SeverancePayment>
    <SupplementalNonqualRetirePlan>1</SupplementalNonqualRetirePlan>
    <EquityBasedCompArrangement>0</EquityBasedCompArrangement>
    <Form990ScheduleJPartII>
        <NamePerson>VINCENT SANDUSKY</NamePerson>
        <BaseCompensationFilingOrg>382438</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>37600</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>24342</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>444380</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
    </Form990ScheduleJPartII>
    <Form990ScheduleJPartII>
        <NamePerson>JERROLD MARANS</NamePerson>
        <BaseCompensationFilingOrg>149353</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>15848</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>17952</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>183153</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
    </Form990ScheduleJPartII>
    <Form990ScheduleJPartII>
        <NamePerson>TOM SOLES</NamePerson>
        <BaseCompensationFilingOrg>165945</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>17329</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>24342</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>207616</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
    </Form990ScheduleJPartII>
    <Form990ScheduleJPartII>
        <NamePerson>DEBORAH WYANDT</NamePerson>
        <BaseCompensationFilingOrg>187821</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>19019</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>10249</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>217089</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
    </Form990ScheduleJPartII>
    <Form990ScheduleJPartII>
        <NamePerson>ELI HOWARD</NamePerson>
        <BaseCompensationFilingOrg>154565</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>15819</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>16641</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>187025</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
    </Form990ScheduleJPartII>
    <Form990ScheduleJPartII>
        <NamePerson>STAN KOLBE</NamePerson>
        <BaseCompensationFilingOrg>144829</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>15177</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>24324</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>184330</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
    </Form990ScheduleJPartII>
    <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 1A</ReturnReference>
        <Explanation>SMACNA PAYS FOR ITS EXECUTIVE COMMITTEE MEMBERS AND THEIR SPOUSES TO FLY TO BOARD MEETING LOCATIONS.
</Explanation>
    </Form990ScheduleJPartIII>
</IRS990ScheduleJ>

It's not as human friendly, but computers can quickly analyze mountains of data formatted like this. If the IRS makes the bulk data reasonably accessible, lots of interesting analysis will be possible next year.

The IRS is adding this option largely because of constant pushing from public.resource.org.

AFRs for July 2015

The IRS published the applicable federal rates for July 2015. Now that both the January and July rates are known, we can calculate the blended AFR for 2015 (it's 0.44%).

The July rates are:

  • Short Term: 0.48%

  • Mid Term: 1.77%

  • Long Term: 2.74%

Our chart of the historical rates can be found here.

“Anticipated” Section 457(f) Regulations

Section 457 of the tax code governs the taxation of nonqualified deferred compensation plans sponsored by tax-exempt employers. It divides plans into two categories:

  • “Eligible deferred compensation plans” that limit annual deferrals (no more than $18,000 in 2015) and that meet a variety of limitations similar to qualified plans are subject to 457(b); and
  • All other plans. These other plans are governed by section 457(f). Common names for these plans are SERPs, Capital Accumulation Accounts, and Retention Payment Plans.

NAFCU Services | Compensation and Severance Plan Rule Changes May Impact Your Credit Union

Upcoming IRS regulations may require changes to your nonqualified deferral plans and severance plans. Kirk and Jim explain more on the NAFCU Services blog.

NAFCU | Attracting and Retaining Executive Talent with Fair and Reasonable Compensation

Kirk presented with Rich Brock on executive compensation and retention.

NAFCU | Executive Benefits: A 360-View of Administration, Accounting, and Regulatory Compliance

Jim presented a webinar with Rich Brock of BFB on executive benefits.

AICPA | Employee Benefits: Structures, Funding and Accounting Considerations

Jim presented with Rich Brock and Greg Schwartz on accounting for employee benefits and the AICPA Conference on Credit Unions