An open letter to UECU Members from CEO Glen Yeager. This is an urgent message about the future of your Credit Union. The U.S. Congress is considering an overhaul of the federal tax code and one idea being discussed could seriously harm UECU and our members. Utilities Employees Credit Union is a not-for-profit financial co-operative , which means that you, as a member, literally own the Credit Union. There are no stockholders to satisfy, so we can focus all our efforts on providing benefits to our membership. Since we don't need to maximize profits for a small group of investors, we are able to offer members higher returns on savings, lower rates on loans, and lower or no fees on services for which other institutions charge their customers. That's why UECU and all credit unions are not-for-profit and exempt from corporate income taxes.
Now some individuals in Washington are talking about taxing credit unions, despite the fact that they are not-for-profit and hold a minimal portion of the assets on deposit in U.S. financial institutions (about 6% versus banks' 94%). I truly believe that if this is allowed to happen, the credit union model will disappear, eliminating financial choice for consumers. Because we return benefits solely to you, rather than stockholders, and those benefits would be severely reduced, taxing credit unions would really be a tax on the millions of credit union members nationwide. That's why I'm urging you to send a strong message to Congress: Don't Tax My Credit Union.
You can write or call your U.S. Representative and Senators to deliver this message ( Click here for a sample letter you can send your representatives). An even easier way to take action is to visit DontTaxMyCreditUnion.org. When you enter your home address, your specific legislators will appear and you can send an email directly to them. On this website, you can also watch a short video explaining the situation, follow our campaign on social media, and learn more about how you can help us tell Congress "Don't Tax My Credit Union!"
Please accept my sincere thanks for being a loyal UECU member and helping in this important cause!
Glen A. Yeager