Michigan State University Federal Credit Union

Michigan State University Federal Credit Union, serving university employees, students, alumni and others around its East Lansing, Michigan, headquarters and 24 branches, offers financial education, free, to members of the community to help individuals make decisions that improve their well-being.

New employees of MSUFCU discover its commitment to financial well-being on day one. Every new team member is enrolled in the MSUFCU 401(k) plan and guided through a comprehensive onboarding program designed by the learning and development team. This program not only familiarizes new staff with the plan but also equips them with the knowledge and tools necessary to maximize its benefits.

Silvia Dimma, MSUFCU’s chief human resources officer, stresses the significance of empowering individuals to secure their financial future. “Our approach is centered on personalized education upfront, ensuring that each member of our team understands the importance of saving for the future and can make informed decisions tailored to [his or her] needs,” she says.

Recognizing the diverse backgrounds of its workforce, MSUFCU places particular emphasis on educating both newcomers and those transitioning from organizations with less comprehensive retirement benefits.

Beyond the tailored onboarding experience, employees benefit from annual one-on-one sessions with a Principal Financial Group adviser; the employee’s significant other is invited as well. Dimma notes the tangible impact of these sessions: Participants often increase their deferrals and refine their investment strategies based on personalized guidance.

The results speak volumes: MSUFCU has a remarkable 97.4% participation rate and a deferral rate averaging 8.2%.

“Our commitment extends beyond enrollment numbers,” Dimma says. “We offer a generous employer contribution of 2%, coupled with a 200% match of up to 4% on 401(k) contributions.”

Dimma is particularly proud of employees’ engagement level and notes that many contribute above the threshold required to maximize the employer match.

To drive ongoing improvement, the MSUFCU plan committee, composed of company leadership and representatives from finance and HR, is constantly exploring innovative enhancements.

“They consistently challenge the status quo, seeking to enhance the plan’s value for our employees,” says Jeremy Tollas, a CAPTRUST financial adviser who collaborates with the plan.

Recent initiatives include optional provisions for 401(k) natural disaster loans and emergency withdrawals for victims of spousal abuse. Further, the committee actively explores emerging trends and stays abreast of new opportunities available under changing regulations. For example, the organization is looking at several of the optional SECURE [Setting Every Community Up for Retirement Enhancement] 2.0 Act provisions, such as in-plan student debt repayment and Roth conversions, to see whether the plan participants could benefit from such features.

“Our focus is on fostering innovation within our plan design to remain proactive in meeting the expectations of our employees,” Dimma says. “The committee continually evaluates industry trends, anticipating shifts and exploring how we can proactively integrate these advancements to enhance the experience for our participants.”

This collaborative approach underscores MSUFCU’s dedication to empowering its employees to navigate their financial future with confidence and resilience.

—Beth Braverman