Credit unions are navigating a period of rapid change. Retirements, along with unexpected departures, are putting pressure on organizations to maintain strong, stable leadership on both their senior management teams and board of directors. Yet despite this reality, succession planning often remains an afterthought instead of a strategic priority.
However, the days of treating succession planning as an optional initiative or a nice-to-have practice are officially over, particularly for federally insured credit unions. With the NCUA’s new succession planning rule that took effect on Jan. 1, 2026, every federally insured credit union must have written succession plans for their leadership team, board of directors, and all other key positions as designated by the board.
And that’s a good thing! The organizations that take a proactive approach to succession planning ensure they are not only compliant but also ready for whatever comes next.
Understanding The NCUA Succession Planning Rule
The NCUA’s new succession planning rule took effect on Jan. 1, 2026. All federally insured credit unions are now required to have written succession plans for their leadership team and board of directors. The NCUA has stated that the purpose of this new rule is to: (1) reduce the volume of voluntary mergers where a lack of succession planning is a factor, and (2) address the risk associated with the “Silver Tsunami” wave of baby boomer retirements.
The new rule requires credit unions to create written succession plans for all key positions, which includes:
- Members of the board of directors.
- Management officials and assistant management officials.
- Any other personnel the board deems critical given the credit union’s size, complexity, and risk of operations. This can include positions that might be critical due to planned changes in operations, supervisory landscape, or corporate structure.
At a minimum, the written succession plans must contain the following information for each key position listed above:
- The title of each covered position.
- The expiration of the incumbent’s term (if they, board members, are serving a term-limited capacity) or their anticipated vacancy date (for example, the incumbent’s expected retirement date or a year in which they anticipate leaving the board). An expected leave date is also required for management officials, assistant management officials, and other key roles. In conversations with NCUA officials, credit unions may use year ranges when adding their anticipated leave dates, such as <3 years, 4 to 6 years, 7 to 10 years, etc.
- The credit union’s plan for permanently filling vacancies for each of the covered positions.
- The credit union’s strategy for recruiting and developing candidates with the potential to assume the position.
- An estimate of the budgetary impacts of executing the succession plan. An exact figure is not required.
Succession plans are expected to be reviewed and updated, as necessary, no less than every 24 months. Best practice, however, is to review and update the plans at least annually, as a lot can change within your organization in a year. Many organizations are starting to meet with potential successors on a quarterly basis to ensure they are working through their development plans.
Also, it is important to note that the ruling does require all board members to be familiar with the credit union’s succession plans within six months of their appointment to the board.
By outlining exactly what must be documented and reviewed, the NCUA has made it clear that leadership and governance succession planning is no longer optional. But meeting the regulatory requirement is only one part of the equation. Understanding why succession planning matters is equally important!
What’s At Stake When Planning Gets Delayed
Every leadership team and board of directors evolves over time. Retirements, promotions, and unexpected departures can leave critical gaps — unless those changes are anticipated and prepared for in advance. When succession planning isn’t in place, credit unions may face:
- Disruptions in strategy, governance, and operations while roles sit unfilled.
- Not having developed internal candidates that could step up and lead a department/team or the organization when needed.
- A lower employee morale or anxiety across the organization as employees and board members question the future of the credit union.
Strong succession planning doesn’t just prevent these risks — it reinforces confidence and continuity at every level throughout the credit union.
Why Preparedness Matters More Today
Several industry realities are pushing leadership and board member continuity to the forefront:
- Regulatory Expectations Are Rising — As we discussed above, the NCUA now requires credit unions to have defined succession strategies for both board and senior management roles. Without a solid succession strategy, your credit union risks falling out of compliance with the examiners.
- A Wave Of Retirements Is Underway — A silver tsunami is still sweeping through the workforce, with many of the baby boomers retiring all at once. In fact, a 2010 PEW research study found that 10,000 people will turn 65 every day until 2030. That’s a ton of people reaching retirement age all at once. And with experienced leaders exiting faster than organizations can replace them, the need to grow talent internally has become essential.
- Greater Governance Accountability — Unexpected board vacancies and competency gaps can stall decision-making and delay strategic progress at your credit union. Succession planning ensures you understand where there are competency gaps on your board and establishes a strong bench of future directors to guarantee governance continuity.
- Competition For Talent Is Intense — Attracting experienced leaders externally is more difficult than ever, making leadership development within your organization a critical strategic advantage.
Succession Planning Doesn’t Have To Be Complicated
Common misconceptions about succession planning are that you only need to do it right before leadership retirements, that it takes too long, that it requires too many resources, or that it is too difficult to maintain.
The truth? When done consistently with the right tools and approach, it actually makes leadership and board planning simpler.
SUCCESSIONapp was built with that simplicity in mind. Our global award-winning platform eliminates the spreadsheets and guesswork, giving you a clear framework to create NCUA compliant succession plans. Easily choose critical competencies, identify and assess potential successors, and create individualized development plans with SUCCESSIONapp’s management module. Or simplify the board succession process by selecting critical board competencies, anticipating director departures, understanding your board’s competency gaps, and planning for future board leadership all in one place!
With everything centralized and easy to update, succession planning can become a continuous and manageable process.
Future-Ready Starts Today
Succession planning protects your mission, your people, and the members who rely on you. Do you think your organization is ready for management and board turnover? Find out with our “What’s your management succession planning readiness score” and our “What’s your credit union’s board succession planning readiness score” quizzes. Take the quizzes now to find out!
Yvonne Evers, the founder and CEO of SUCCESIONapp, LLC, is a succession planning expert who has successfully worked with hundreds of credit unions over the past 25 years. SUCCESSIONapp is the leader provider of online management and board succession planning solutions in the credit union industry. The global award-winning software simplifies the succession planning process by providing an easy-to-follow workflow. The mission of the company is to help leaders and board members create succession plans to ensure smooth and successful transitions.