JUNE 2006 – The Massachusetts Credit Union Share Insurance Corporation (MSIC) has issued $1.4 million in a special refund to its membership, as a result of changes in the primary deposit insurance offered through the National Credit Union Share Insurance Fund (NCUSIF).

MSIC is an Excess Deposit Insurer, insuring deposits in credit unions above the federal limit to certain thresholds. With the recent increase in the federal limit on retirement accounts from $100,000 to $250,000, MSIC’s Board of Directors authorized a special refund proportionate to the amount of insurance now transferred to the NCUSIF.

“It was the right thing to do, returning funds to our members,” said MSIC President and CEO John Buddle, “Our credit unions can use this to meet the increase in their NCUSIF deposit.”

MSIC’s credit unions were offered the option to take the special refund, or leave it as a credit towards future insurance premiums. The special refund received by member credit unions ranged from $312 to $390,931.

“We were delighted to see MSIC offer a rebate as a result of the change in coverage,” said Fred Healey, President of Workers Credit Union, “Member service has always been a hallmark of MSIC.”

As of December 2005, MSIC insured over $994 million in excess deposits. MSIC’s equity ratio, (reserves per dollar insured) was 6.15% as of its last fiscal year end. This ratio is the highest of any deposit insurer in the nation, and is approximately 5 times the requirement of 1.25%.