Credit union employees will no longer work for Mayo Clinic
This change means the approximately 117 Mayo Clinic employees working at MEFCU will become employees of the credit union.
"All staff members will retain their positions with the credit union, with the same compensation level and a comparable benefits package," according to a joint statement from Mayo Clinic and the credit union.
This change will undo a confusing link between the credit union and its namesake.
While Mayo Clinic has never owned or managed the 87-year-old credit union, it has leased clinic employees to staff it for decades. The credit union is independent and is governed by a board of directors elected by its more than 63,800 members.
"This was a common arrangement in the early days of credit unions and following the stock market crash of 1929. The credit union has paid and continues to pay the entire cost for the personnel and services to Mayo Clinic," according to the statement.
The credit union was ranked number one in Minnesota on the "Best-in-State" list of credit unions complied by "Forbes" magazine.
"The strength and stability of the credit union, and Mayo’s need to focus resources on its top priorities, make now the right time to transition employees to direct employment with the credit union. Just as Mayo Clinic understands how to solve the biggest problems in health care, Mayo Employees Federal Credit Union has a better understanding of its business as a non-profit financial cooperative than anyone else," according to the joint statement.
This shift should not cause any major changes for the credit union's members as no changes in services or names will be made. The 117 employees will simply transition from being Mayo Clinic employees contracted to the credit union to being direct credit union employees.
The credit union, which was founded by three Mayo Clinic employees in 1933, manages assets of more than $1 billion. It has six Rochester offices plus ones in La Crosse, Wis., Florida and Arizona.