SAN DIEGO — A benefits roundtable at CUNA's HR/TD Council Summit revealed a unique benefits program in place at Colorado State Employees Credit Union. In an effort to control benefit costs, CSECU is facilitating a program that shares the ownership of cost control with employees.
The $700 million institution gives each of its 210 employees a monthly stipend for benefits, and allows them to choose which benefits to spend the money on. Leftover monies are either applied toward a 401K or other retirement plan, or taxed and paid directly to the employee.
"We just couldn't keep absorbing the cost of these big increases each year, especially for employees who weren't using their benefits, so we put part of it on them. It really raised awareness among our employees, because they didn't understand how much benefits were costing us, and how much of it we were paying for them," said Karen Doyle, director of human resources.
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Each employee receives a base benefits stipend of $395 per month to be applied toward any combination of 33 possible benefits. Employees with dependents are given a larger allowance, and the amount each employee receives increases with tenure. The credit union requires employees who opt out of credit union health insurance prove that they are covered elsewhere. The monthly allowance is capped at 19% of gross pay.
Doyle said one popular benefits option is an $8 per month accident insurance policy, which covers health insurance deductibles. The HR director said her young employees tend to choose health plans with large deductibles, then find themselves in financial trouble when they are injured, often as a result of risky behavior like skiing or snowboarding. The accident insurance fills in the gap.
Another popular option is pet insurance, Doyle said.
"Some people think of their pets as members of the family, so pet insurance is really important for them," she said.
The plan has been in place for seven years, and Doyle said despite occasional complaints that the credit union should cover a larger percentage of health insurance, the program is an overall success.
"Twenty-three percent of my staff has been with us more than 15 years, and I think this is part of it. The longer you work for us, the more money you get, so it helps keep our good people here," she said.
Doyle said the plan was difficult to set up at first, but maintaining the program doesn't take any more time than traditional ones.
"Plus, at the end of the year, I don't have to say, 'oh no, our health insurance went up another 24%, I guess we'll have to shop for something we can afford'," she said. –[email protected]
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