Contingency plans, including loan relief products and skip a payment plans, were put in place last week by Minnesota credit unions girding for a state government shutdown July 1.
The prospect of missed paychecks had CUs rolling out a series of products and scheduling counseling sessions for strapped employees though Jeff Schwalen, president/CEO of the $833 million Hiway CU of St. Paul, suggested timing of the pay schedules in the first week of July may bar major problems.
Schwalen's CU serves 8,100 state employees accounting for 14% of the CU's membership, but some groups like state troopers look to be exempt, and "we also understand employees will receive their July paychecks for the first week and there are also severance packages" mitigating any severe impact in the short term.
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