Coop Credit Union Merger and RMDs??
Are there any other UC Berkeley retirees in the BPN who are in my position?
My 403(b) retirement savings account is with Fidelity. My UCRS retirement income for 10 years has been direct-deposited to Cooperative Center Federal Credit Union.
Longtime Berkeley people may recall the old Co-Op supermarket chain. In its heyday it had multiple branches, such as the building that is now Whole Foods on Telegraph at Ashby - plus a hardware store, drugstore, and - a credit union! It was also a supermarket chain with a foreign policy, which may be part of the reason why the retail arm was not managed well and went out of business. Just saying.
But still the co-op federal credit union persisted. Until now.
Cooperative Center Federal Credit Union has sent its customers a letter announcing a proposed merger with Nuvision Credit Union, based in Los Angeles. The letter touts the 26 branches of Nuvision. I googled them - they are located in 7-11 convenience stores in economically disadvantaged areas of Oakland. I have never spent any time in these parts of town.
Hmm. So this institution provides banking options to low-income people. It is FDIC insured to $250k. So far, so good, I guess.
However, I have two reservations about continuing to do business with this new entity:
1. A previous time when I was a credit union member and it was acquired by a new credit union (PatelCo), the new entity immediately started charging new fees.
2. This year, 2024, turns out to be the year when I turn 73, and the IRS requires me to start taking Required Minimum Distributions from my 403(b) retirement savings.
I was preparing to tell Fidelity to transfer these RMDs to my credit union savings account. But if there is anything undesirable about the new credit union situation, it could be a mess to straighten out.
Meanwhile, my husband suggests that I move all my money out of Cooperative Center Federal Credit Union and put it in his reliable credit union based in Silicon Valley.
What do people think about this situation?