BETHPAGE, N.Y. – Bethpage FCU announced yesterday it is moving 91 back-office jobs to Baltimore as part of a shared service center operation it is developing with two other credit union giants, State Employees CU of Maryland and Colorado’s Bellco CU.
Bethpage expects to save between $6 million and $8 million annually as it teams with the two other credit unions on a CUSO called S3 to create a shared back-office operation in Baltimore. Bethpage officials said Maryland offers savings, including 22% lower salaries, lower leases and other benefits that led to its choice for the shared-service center rather than high-cost Long Island.
Bethpage, New York’s biggest credit union, announced the reorganization, affecting 19% of its 500-person Long Island workforce over the next two years, at a quarterly employee meeting Wednesday.
Back-office jobs in collections, call center, lending, deposits and mortgage, are being moved, although all decisions regarding lending will continue to be handled on Long Island, according to the the $4.8 billion credit union. Bethpage plans to transition the affected jobs during the first quarter of 2013 to be completed by the first quarter of 2014.
The three credit unions teamed previously on a Denver CUSO called Open Technology Solutions, which provides technological support for the three.