Croí Laighean Credit Union holds AGM via Zoom

Commitment to staff and previous staff members is one of the reasons Croi Laighean Credit Union (CLCU) members paid just over one million euros to the Irish League of Credit Unions pension fund to fill a deficit, CLCU’s AGM was told on December 8.

The AGM, the third successive one to held via Zoom, heard that the credit union had a surplus of just €140,000 from assets of almost €254 million but it would have been higher, around €1.2m if the credit union, which has just over 43,000 members, including 2,361 new ones this year, had not to pay the pension fund deficit.

Contribution

Chief Executive Officer, Paul Kennedy, speaking from a studio in Ballymount in Dublin, said the money was CLCU’s contribution towards an overall €93 million deficit in the ILCU Defined Benefit scheme.
He said a Price Waterhouse Cooper report into the pension scheme identified the deficit.
Asked by a number of members - 52 people attended the AGM, (which lasted around 33 minutes), via Zoom - he said the deficit was known about for some time.
At one point it was €30 million but the deficit jumped from €45 million to €94 million over the last two years.

Review

Mr Kennedy said the situation will probably be reviewed and added that it was outside the control of CLCU.
He said he was not aware of all of the reasons for the deficit but part of it was the fact that people were living longer and investments were getting much lower returns.
CLCU, which serves the Edenderry, west Kildare, Clane and Leixlip areas, had €78.8 million or almost 31% of its assets out on loan at the end of the financial year, September 30 last, and loans increased over 8% during the year.

Investments
Members were told that the return on investments, the largest part of the credit union’s assets, was low, barely 1%, compared to a 7.73% average interest rate on loans given out.
Outgoing chairman, Eugene Kearney, who has served three years as chairman, said a new technology project, which will see CLCU competing with not only the top credit unions here but other financial service companies, would be completed soon.
Mr Kennedy said he was incredibly excited about the new technology which would go live in 2023.
The credit union, like many others, has not paid a dividend to members for a number of years now.

Sponsorship

One member asked if a cap on sponsorship, going to various community groups over the past six years, could not be put in the light of no dividends or interest rebates being paid to members. The annual report said that in 2022, €50,000 was given to 102 organisations.
Mr Kennedy said he would not like to limit this part of the budget.
He said that some people have questioned the use of the virtual AGM and a return to people meeting face to face.
He said he did not want to take risks with health and safety and when the time was right the matter would be reviewed.
He said that the credit union, which has 50 staff, will review its office opening hours.
The annual report said that in 2022, €50,000 was given to 102 organisations.
A credit union is a member owned organisation, run by a board of non paid directors. The AGM formally elected three new board members who had been co opted during the year.
Josephine O’Leary, chairperson of the union’s Nominations committee, said that serving as a volunteer director was a good learning experience for one’s career.