Aug. 19--WATERVILLE -- Days before a critical vote starts on a proposed merger with KV Federal Credit Union, Kennebec Savings Bank officials announced Tuesday at the local office that the bank has landed national acclaim for its employee benefits.

The credit union's membership is scheduled to start voting on the controversial merger proposal Saturday, with ballots due back Sept. 21.

Kennebec Savings officials said they thought news of the national award would buttress the case for the merger of a bank and credit union, which would be the first in Maine. The bank learned of the acclaim late last month.

"I think it definitely helps; it makes it more reassuring for employees with the credit union," said Mary Hammond, vice president and human resources officer of the bank, which has offices in Augusta and Waterville.

The bank applied for the national recognition, which comes from The Principal Financial Group, a financial services firm based in Des Moines, Iowa, that has compiled the list for eight years. In a statement, The Principal named Kennebec Savings Bank one of the 10 "best companies for employee financial security" because the bank offers employees "extraordinary benefits in the face of an economic storm."

For making the top-10 list, Kennebec Savings Bank is receiving a $2,500 contribution toward its charity of choice, United Way of Kennebec Valley, and will get attention in advertisements The Principal has placed in several national publications, including The Wall Street Journal.

Kennebec Savings Bank and the other nine companies were selected by an independent judging panel, according to Paul Fromm, assistant vice president of retirement investment services for The Principal, who visited the bank's Main Street office on Tuesday.

Among the key reasons the bank made the list were its "generous retirement and well programs," Fromm said. There were 130 applications this year, he said.

The program takes a holistic view of what companies offer their employees, Fromm said, in an attempt to highlight the importance of investing in employee benefits even amid tough economic times. Beyond traditional benefits for health, retirement and disability, Fromm noted events and services Kennebec Savings offers such as a clam bake, summer pool for employees and their children, and concerts.

Hammond said the benefits highlight worker satisfaction; the bank's employees have an average tenure of 9.8 years, she said.

Though news of the national recognition is "always great," it shouldn't have any impact on the merger vote, said John Murphy, president of the Maine Credit Union League, which opposes the merger.

The credit union would first need to change its charter from a non-profit financial cooperative to that of a bank, and then merge with Kennebec Savings Bank, he said.

"It's an issue of the membership and how they're going to benefit from such a conversion," Murphy said, saying credit union members already have the option of joining the bank if they want.

Under the merger, more than $5 million in capital assets owned by the credit union membership would be acquired by the bank, Murphy said.

Now, Kennebec Savings Bank has 81 employees. If the merger is approved, Hammond said, another 24 from the credit union will be added to that.

Scott Monroe -- 861-9253 smonroe@centralmaine.com

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