Kansas Plan Sponsor Gives Workers Cash For Emergencies

Attempting to support the financial wellbeing of its staff, the Meritrust Credit Union, headquartered in Wichita, Kansas, funded a one-time $400 cash deposit for every employee, December 22, according to a company media alert.

Meritrust urged workers to set aside the deposit to grow their emergency savings fund, or to begin one, but the credit union did not require the workforce, about 370 employees, to set up a dedicated account or reserve the money for emergencies, said James Nastars, president and CEO of Meritrust, by email.

The Economic Well-Being of U.S. Households in 2022 Survey, published last May by the Federal Reserve, found that 37% of Americans have too little savings to cover a $400 emergency.

“This special allotment of dollars followed the normal account deposit path our employees utilize for paychecks,” Nastars wrote. “We encouraged the funds to be placed in their savings accounts, in multiple communications, but we are not monitoring the actual dollar flow.”

A Meritrust representative also noted in an email that the company’s employees have access to internal financial education specialists, who are available to help them navigate their finances.

Through the credit union’s financial education efforts and internal communications, education about the need for savings is “consistently communicated to employees as a critical step in their financial health journey,” the Meritrust representative added.

“We understand that, in order to best serve our members, we have to focus on financial health from within,” Nastars wrote. “Knowing that our employees are equipped to not be part of that 37% is just one step in the process of supporting their financial well-being.”

Meritrust Credit Union operates as a financial cooperative. It provides financial services and products including loans, insurance/investment sales, savings accounts, credit and debit cards, and online banking.