FARMINGVILLE, N.Y. — It pays to earn an "A" if you're an employee at Teachers FCU.
The credit union is living up to its name by emphasizing its higher educational benefits package for employees, which has some unique aspects.
Like a number of other employees, the credit union offers tuition reimbursement all the way up to the $5,250 IRS limit and pays for up to nine credits per semester. But what sets TFCU apart is its in-house collegiate program coordinated with the Dowling Institute.
The $3-billion institution reimburses its employees in a unique way by basing the amount it covers on educational performance. Employees that receive an "A" in a course pay nothing. while lower grades mean more financial responsibility to cover tuition.
"We're giving them an interest-free loan so when they register for the course and when they complete it they hand in their grade and they owe us zero, 20% or 40% depending on what the grade was," CEO Robert Allen explained. "The better they do the more that we pay."
Aside from Allen's personal passion for higher education, the credit union's tuition program helps achieve staffing goals, as TFCU prefers to promote from within and not look outside senior management to fill positions.
"We'd rather have promotable people who know our business and we know the individuals" the CEO said. "But we do have educational standards depending on what the positions are."
Between 10% and 15% of all TFCU employees participate in the program each year, attending schools of their choice. Nearly two-dozen have been able to work toward bachelor's and even master's degrees at the credit union's headquarters right after the workday ends, thanks to the partnership with Dowling Institute.
"They finish work and the class starts right here," said Allen, noting that the on-site program removes another obstacle to higher education. "In today's market it's not just the cost, but time is a big factor."
This year's class recently graduated with eight employees earning master's degrees, while three received bachelor's degrees. The last graduating class finished its work in 2006 with 10 employees earning master's degrees-the program had a 100% retention rate as everyone who signed up for it in 2003 completed their degrees. Dowling Institute even conducts a small graduation ceremony at the credit union's headquarters, where Allen gets the opportunity to not only speak to his graduating employees but meet their families. In good labor markets as well as the current tough one, Allen said programs such as those offered by Teachers Federal build staff loyalty and lift morale.
