News and Events
53rd Annual Meeting RESULTS
Thank you all for joining us at the Annual Meeting held Friday, April 19, 2024, at Old Hickory Golf Club! We also thank you for participating in the balloting for the two resolutions. The results of the Board of Directors elections and the two resolutions for ballot are below:
BOARD OF DIRECTORS ELECTIONS
Directors elected to a three-year term (expires 2027):
Robert Pomietto (serving as Board President)
Irene Cromer (serving as Board Secretary)
John Wallingford (serving as Board Treasurer)
Board of Director ratification of appointments to seat vacancies:
Theresa McDonnell (Dale Hawkins Seat) – Term expires 2025
Sharon Richardson (Robin Perkins seat) – Term expires 2026
RESOLUTIONS FOR BALLOT
Resolution 1: Resolve to convert the credit union to a federal credit union.
Total For: 491
Total Against: 130
Total Votes: 621
Resolution passed with 79.07% of the vote and meets the 2/3 majority requirement.
Resolution 2: The name of this Corporation is to be PWC Employees Federal Credit Union.
Total For: 476
Total Against: 145
Total Votes: 621
Resolution passed with 76.65% of the vote and meets the 2/3 majority requirement.
This completes the first step in the charter conversion process.
Conversion from State Charter to Federal Charter Steps and Timeline
1. Vote by Members to Approve – Estimated time to give notice and hold member meeting to approve conversion: 60 days.
2. Submission of Conversion Proposal to NCUA – A cover letter and completed NCUA forms and other information submitted as follows – Estimated time to prepare materials for the conversion application and file with the NCUA: 10 days.
3. Notice of Conversion Proposal to the Virginia State Corporation Commission/Bureau of Financial Institutions (“Bureau”) – Estimated time for providing Bureau notice is within the same 10-day period indicated in 2. above.
4. NCUA Review and Investigation – Estimated time for NCUA’s review and investigation: 30 days.
5. Preliminary Approval - Estimated time for board action on these items and receipt of Bureau letter: 20 days.
6. Effective Date of Conversion – Estimated time for final approval after preliminary approval: 20 days.
Total Estimated Time Frame to accomplish conversion to a federal charter: 4-5 months minimum, pending approval from the NCUA.
CONVERSION BACKGROUND
The PWC Employees Credit Union (PWCECU) was organized in 1971 under a state charter, meaning that it was supervised and regulated by the State Corporation Commission-Bureau of Financial Institutions (SCC-BFI). At the time, a state charter was the optimal way for small credit unions to operate safely and securely.
Much has changed since 1971. Financial services, investment options, technology, and the regulatory environment have changed. In addition, the PWCECU has grown and continues to be on a path of expansion. After considering the benefits of operating under a federal charter, as outlined below, the PWCECU Board of Directors and Supervisory Committee seek approval from our membership to convert from a state-chartered credit union to a federally chartered credit union under the National Credit Union Administration (NCUA).
A federal credit union is not operated by the federal government. The federal government will have no say in credit union operations, cannot access your account information, or in any way violate your privacy rights.
The term federal is a reference to the Federal Credit Union Act. This is the set of rules and regulations a credit union operates under and makes it a federal credit union.
NCUA is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions. The NCUA, as a primary regulator, has changed with the times. The NCUA has embraced the changes mentioned earlier and developed departments specializing in each of the regulatory and compliance areas. The NCUA understands the impact these changes have had on credit unions. The NCUA operates as an effective regulator under the Federal Credit Union Act, a well-defined and comprehensive set of rules and regulations.
If the NCUA were to become our primary regulator, we would have access to more membership benefits, additional investment options, concise operating regulations, and a supervision perspective gained only through experienced national leadership of the challenges a small credit union faces. There are also tax benefits, grants, and other programs that we, as a small credit union, can take advantage of that we do not qualify for under a state charter.
A state-chartered credit union operates under the Code of Virginia and is regulated by the SCC-BFI. The Code of Virginia pertaining to credit unions lacks specificity in its guidance in many areas, leaving much of the regulatory supervision up to interpretation. The openness to interpretation can be a benefit in a changing financial environment when applied objectively and fairly, and in the best interests of credit unions and their members. Conversely, when regulations do not reflect the changing financial environment and, at the same time, are applied subjectively and unfairly, the result can inhibit the progress of credit unions that operate in a robust and transitional environment. This is where we find ourselves today operating under the Code of Virginia and the supervision of the SCC-BFI.
The conversion to a federally chartered credit union under the supervision of the NCUA will provide the PWCECU access to a large organization that is managed by financial experts who adhere to current financial standards and practices that help credit unions fully serve their members.
FAQ’s
What is a charter?
A charter is the document issued by a regulatory authority that allows a credit union to operate and defines the rules and regulations it operates under. Currently we operate under a State Charter under the Code of Virginia. A credit union with a Federal Charter operates under the Federal Credit Union Act as well as NCUA Rules and Regulations.
Does having a Federal Charter grant the government access my accounts whenever they want?
Absolutely not. The safeguards surrounding your privacy and your account history will remain exactly as they are today. A federal charter does NOT grant the government special access.
Will our field of membership change?
No. We are not looking to change or add to our field of membership, nor become a community credit union.
What if one or both of the resolutions fail to be approved by the membership?
The conversion process cannot go forward without approval of both resolutions.
What if the resolutions pass, but the NCUA or SCC-BFI do not approve?
There is an appeals process that we will take advantage of.
What are the financial impacts of the conversion?
Management is confident that opportunities associated with this conversion outweigh any additional costs.
Will there be any change in rates and fees?
Deposit and loan rates and the current fee structure will not be impacted by the conversion.
Will my accounts still be federally insured?
Yes. All deposit accounts will continue to be federally insured by the NCUA.
When will the name change?
The credit union has 180 days from the effective date of the conversion to change its signage and promotional material.
Will my checks, ATM, debit, and credit cards still work after conversion?
Yes, the NCUA allows checks with the state-chartered name can be used by the members until depleted. As ATM, debit, and credit cards expire, new cards will be issued with the new name.
Will the logo change?
Yes. The old logo will not accommodate the word “Federal” so we are looking at a new logo.
Will the hours or telephone numbers change?
No, these will remain the same.
Will the credit Union ABA routing number change?
No, it will remain the same.
Will access to online/mobile banking change?
Yes, once the conversion is complete our URL will change. Any saved favorites with our old website address will need to be deleted and replaced with the new web address.
Is this anything like a conversion to a bank, or will it lead to a buyout or merger?
No. PWC ECU has always been and will continue to be a credit union dedicated to serving those who serve Prince William County. We are extremely well-capitalized and strong financially, with no intention of merging with another credit union or converting to a bank.
Will accounts be impacted?
No. Accounts with us will not be impacted. Account names and account structure are not being changed in any way.
Will member numbers change?
No. Member numbers and account numbers will remain the same.