More Credit Unions Offer Employee Retirement Plans

October 23, 2001

FOR IMMEDIATE RELEASE
Contact: Tom Dunn
tdunn@cuna.com
(608) 231-4002

MADISON, WI – More credit unions than ever are offering retirement plans as a major benefit to employees, according to Credit Union Executive Journal's 2001 Credit Union Staff Benefits Survey Report from CUNA & Affiliates. The survey found a 16-percentage-point increase in the number of credit unions offering retirement plans since 1998, bringing the overall percentage to 76%. Retirement plans are nearly universal among credit unions with $10 million or more in assets.

"In particular, there has been tremendous growth in the number of credit unions that offer 401(k) plans-from 26% in December 1997, to 54% now," says Vicki Joyal, vice president of market research and information for the Credit Union National Association (CUNA). "For ten years or so, credit unions couldn't offer 401(k)s. But since January 1997, more and more credit unions are seeking to meet employee needs by making 401(k)s available, knowing that the number one long-term financial goal is to assure a comfortable standard of living during retirement."

The survey also found that approximately 60% of credit unions make group health insurance available to their employees, more than half provide the option of group life insurance, 86% offer paid vacation time and 34% offer educational assistance.

Credit union employee benefits expenses rose 14%, on average, between 1997 and 2000. Benefit costs represent an average of 23% of average salary expense, overall. In 2000, the average credit union spent $122,931 on employee benefits.

The information in Credit Union Executive Journal's 2001 Credit Union Staff Benefits Survey Report can help credit unions determine how their employee benefits programs compare with other credit unions in their region and asset size category. The report also contains articles and other valuable information that credit unions can use to identify potential benefit program enhancements.

To order Credit Union Executive Journal's 2001 Credit Union Staff Benefits Survey Report, call CUNA Customer Service at 800/356-8010, press 3, and ask for Stock No. 23387-PR. Or order online at www.cuna.org.

With its network of affiliated state credit union leagues, Credit Union National Association serves more than 90% of America's 10,300 credit unions, which are owned by more than 80 million consumer members. Credit unions are not-for-profit cooperatives where people are worth more than money. For more information, visit www.cuna.org.

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