By Bob Katzen

The Senate approved a House-approved bill that would allow credit unions to compensate their board members for their service. Under current law, board members may only be reimbursed for expenses incurred in the performance of their duties.

“I was proud to sponsor this legislation which would modernize current law by allowing credit unions to compensate their board members for their service,” said Sen. Pavel Payano (D-Lawrence). “This bill would permit compensation to be set and approved by the membership at an annual meeting, giving credit unions the flexibility to determine appropriate levels of compensation as needed … Credit unions play a vital role in supporting our communities, and this update will help them attract and retain strong leadership, strengthen their institutions, and enhance their ability to serve their members.”