Monday, May 4, 2015

Flying First Class

The 2013 Form 990s for some state-chartered credit unions are reporting that credit union officials (senior management and directors) are traveling first class.

For example, OnPoint Community Credit Union (Portland, OR) pays for its CEO and Board of Directors to travel via first class.

Other credit unions that provided first class or charter travel to their officials in 2013 were TruMark Financial Credit Union (PA), Redwood Credit Union (CA), Veridian Credit Union (IA), Hapo Community Credit Union (WA), Washington State Employees Credit Union (WA) and Public Service Credit Union (CO). The list is not exhaustive.

However, the Form 990 does not provide any information on how much these credit unions spent on first class travel. An e-mail inquiry to OnPoint Community CU regarding how much the credit union spent on first class travel went unanswered.

Unfortunately, there is no data regarding federal credit unions extending this perk to credit union officials, as federal credit unions are not required to file Form 990s.

Credit unions need to be accountable about how they use their tax subsidy. The tax subsidy is not meant to be used to pay for first class travel by credit union officials.

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