The simple way to save
Pioneer Mutual Credit Union’s Payroll Savings Scheme, is a great staff benefit tailored to your organisations specific needs, arranged and managed free of charge by ourselves.
A Money and Mental Health Policy Institute Study has shown that 25% of workers have lost sleep over financial difficulties and our Pioneer Payroll Savings scheme can help alleviate money worries by saving for a rainy day. Research has also proven that employees who are in debt or have money worries are much more likely to suffer from stress, leading to illness, absenteeism and reduced productivity and our Payroll Savings is an easy way to assist your employees.
As part of the package Pioneer Mutual Credit Union offers employees free budget advice and access to a wide range of financial services. The contractual arrangement is between Pioneer Mutual and the employee, the employer is only the conduit and there will be no recourse on the employer.
Participating in Pioneer Payroll Savings Scheme can also be a very simple way to enhance your Corporate Social Responsibility profile. Contact us today and become a Pioneer Partner.
If your organisation is based within a G, PA or ML postcode you are eligible to join our Pioneer Payroll savings; but don’t worry if not; dependent on location we can add an organisation to our common bond to ensure your staff can access our services.
What is a Credit Union?
A credit union is a not-for profit run to benefit members; members can save and borrow money at low rates of interest charged in a transparent, understandable manner.
How can payroll help?
Like everything we do, our payroll scheme is both simple and sensible. Members save a small amount regularly and have a ready source of affordable loans. This helps employees to avoid debt and the stress it can lead to, which in turn helps employers to avoid the absenteeism and staff turnover caused by stress.
Furthermore, research suggests that people are more motivated when they feel looked after by their employer resulting in improved productivity and morale.
Employers will also welcome the way a payroll scheme can help them to achieve their corporate responsibility goals.
In short, it is a way to help increase productivity and staff retention that is provided by the credit union cost-free.
Is it difficult to set up?
The credit union provides comprehensive support, guiding your company painlessly through the launch, operating the scheme and dealing with all enquiries. All the employer has to do is facilitate monthly deductions from salary, with a single monthly exchange of data and BACS funds transfer.
How much does a payroll scheme cost to set up and run?
Remarkably little, in fact Pioneer Mutual Credit Union will provide all its services free of charge. Minimal admin arranging payroll deductions is the only cost to the company.
If an employee leaves and they have a credit union loan is the employer liable for re-payments?
No, the contractual arrangement is between the credit union and the employee. You are only the conduit.
If an employee finds that an alternative credit union can offer better rates could they have any recourse on the employer?
No. This is much the same as engaging in a pension scheme. You facilitate the arrangement and signpost employees but at no stage do you advise your employees to engage with the preferred supplier.
Will there be fluctuating balances?
There might be, but this will not be a concern for the employer as the credit union would advise the deduction amount and when to stop.
Will payroll be required to process refunds?
No. Any monies will be paid and/or refunded directly by the credit union.
Payroll frequencies i.e. what happens if it is weekly?
It would be deducted from each pay period (weekly); however, an agreement could be made with the credit union to pay all contributions monthly, whichever works best for your business.
Does the payment date need to be the same as date as our payrun?
The payment date would be agreed between the employer/service provider and Pioneer Mutual. Please note that until the payment is received from the employer, the saver’s account will not reflect any of the monies deducted.
Can the schedule be electronic?
An electronic copy of the file is our preferred method, the employer/service provider can work with the credit union to receive and send a file electronically that could be uplifted directly into the payroll, subject to payroll software ability. An example of the file is included in the Pioneer Payroll Employers Pack.
How does the employer notify the credit union of a leaver?
All the required information is included in the Pioneer Payroll Employers Pack, but it is simple as sending us an email.
Can we pay credit unions via Bacs?
Yes, this is our preferred payment method.
Could I be accused of unlawful deduction from wages?
No, a mandate would be signed between the credit union and the employee. An example of the mandate is included in the Pioneer Payroll Employers Pack.