Tag Archives: Credit Unions

This morning.

Via Independent.ie:

A huge deficit has emerged in the pension fund covering thousands of credit union staff.

The €78m deficit is so large it has the potential to financially destabilise the sector, according to credit union sources.

The shortfall has ballooned from just €6m in 2017. It hit €20m in 2020, but it has jumped to €78m for this year, due to the impact of low interest rates on the scheme.

The scheme is overseen by the Irish League of Credit Unions and covers staff in that organisation along with employees in affiliated credit unions.

The shortfall will have to be made up by individual credit unions that are members of the league, it states in a memo from pension advisers to the league marked “confidential” and seen by the Irish Independent.

Vanessa!

€78m deficit in credit union pension fund has potential to destabilise sector (Independent.ie)

RollingNews

A survey by the Central Bank of 276 credit unions found that the draws were often performed by staff who were eligible to enter without independent supervision.

It found that in 30 per cent of these institutions, prizes were won by either staff or directors over a two-and-a-half-year period to March 2017.

The entry price for such competitions is usually around €100, but some members were entered without their consent and the money deducted from their accounts.

The Central Bank report said: “Draws were conducted by staff, who were eligible to enter the draw, with no independent oversight.

The bank said the practice of individual credit unions operating draws and allowing staff to enter “poses a reputational risk” to the institutions.

It added: “The survey results showed that the majority of credit unions allowed staff and directors to enter the prize draws.

Central Bank credit union probe finds almost one third of cars or cash offered in competitions were won by either staff or directors (The Irish Sun)