RADCLIFF, Ky. (8/5/13)--Fort Knox FCU in Radcliff, Ky., is offering furlough assistance options to members who are federal employees or federal contractors. Nearly 100 members have been helped so far.
The options include reduced payments on existing loans, interest-free loans for 30 days, and no penalty for early withdrawal from share certificates of deposit, said the Kentucky Credit Union League (By The Way Newsletter July 31).
The $1.06 billion asset credit union introduced the options to help Department of the Army civilian employees and contractors who are dealing with furloughs or loss of pay due to sequestration.
"There are as many as 5,000 civilian federal workers and contractors in our service area and many of them could face up to 176 non-contiguous hours of furlough from work without pay," said Bill Rissell, president/CEO of Fort Knox FCU.
"That could mean as many as 22 eight-hour work days between now and the end of the fiscal year in September," he added. "Missing that many days of pay will likely be a hardship for these families."
So far, participating members have reduced payments on roughly 200 loans, totaling $2.45 million in balances, the credit union said. Also, it allows early withdrawal up to $10,000 from share certificates of deposit, with no penalty.