Michael Hogan: Vermont values are at the heart of the VSECU merger

This commentary was written by Michael J. Hogan, a retired state worker and vice chair of the VSECU Board of Administrators.

I joined VSECU in 1986 as a brand new state worker. After retirement from the state of Vermont, I grew to become a director in 2016 and have intensive expertise in board governance as a member of many state and native boards, at present serving as chair of my very own city’s Selectboard and as vice chair of the VSECU board.

I felt it was essential to be direct and reply to the continual deceptive narrative crafted by VSECU’s previous leaders who oppose the merger, led by former CEO Steve Submit and 4 board members. They try and opine as authorities who haven’t been concerned within the enterprise affairs of VSECU for the previous 9 to 20-plus years since their retirement. 

Over 20 years in the past, they departed from our state workers’ exclusivity as an employer-based credit score union and started the transition to a community-chartered credit score union. 

At the moment our membership is 71,389 sturdy. Our members are from all walks of life, communities, professions and backgrounds. Solely 8% of our members right now can be thought of present or retired state workers primarily based on information final offered by the state of Vermont in Could 2016, demonstrating the ability behind the community impact the place extra folks collaborating creates better worth for all.

Early on on this merger course of, we invited these former leaders to satisfy with our board chair and CEO to debate the proposed merger. They declined.

I wish to deal with a commentary revealed on Sept. 7, “Former VSECU leaders: Save the Vermont State Workers Credit score Union” that’s comprised of nothing greater than misrepresentations and false narratives which can be baseless and designed to inflame folks’s feelings. 

1. There are not any conflicts of curiosity. We’re a really diligent board that takes our fiduciary duty severely.
2. For months we now have offered info to our membership. We have now been ruled by a regulatory course of that required approval from the Nationwide Credit score Union Administration earlier than we may share sure info. We have now obtained approval and a member mailing of the proposed merger marketing strategy is coming within the close to future. 
3. We have now diligently offered info to our members. We hosted member boards throughout Vermont to achieve enter and listen to issues. We discipline calls every day. We act proactively on all suggestions we hear. We have now operated with excessive integrity at each juncture of this proposed merger, as our members anticipate. 
4. The Board of Administrators will not be stacked. Members vote us in. Sure, it’s totally different from many many years in the past. It’s numerous with gender, pores and skin shade, preferences and consultant of areas from round Vermont, who’re all elected by the membership.

Different factors for readability embody the next:

• VSECU will not be being acquired. This can be a conscientious merger between two superb cooperatives. We can be a brand new Vermont-based credit score union with a brand new title but to be decided, reflective of our partnership, membership and communities we serve.

• VSECU is regulated by each Vermont and federal regulators right now. Regulators don’t influence or dictate native management. Their job is to have oversight over the monetary security and soundness of the credit score union. 

• Individuals who reside in Vermont can be eligible for membership within the newly mixed credit score union.

• The Chases of the world and different regional or mega-banks are certainly making inroads into our small state. Contemplate that in 2021, banks managed 77% of deposits in Vermont and out-of-state banks managed 40.6% of these Vermont deposits. 

Governing and operating a monetary establishment with the perfect curiosity of individuals over revenue is extremely advanced. To deduce the board made this determination recklessly in a smoky darkish room for the good thing about a couple of, is a determined transfer to persuade others with unsubstantiated statements.

I’m deeply grateful for our founding members and proud to have been a State worker for 30 years. I like Vermont and what we stand for. Like Vermont, VSECU is about inclusion, progress and shifting issues ahead. Our boundaries don’t outline us, our values do.

I’ll proceed to function a board member within the new credit score union, representing the pursuits of our state workers and different members. I ask to your assist by voting YES on the proposed merger and serving to us proceed to maneuver ahead, and never backward, on this dynamic and ever-changing world.