State and local governments today face significant financial stress from the most recent recession, which makes their need to control benefit costs even greater. Revenues declined 22% from 2008 to 2009, mostly because of reduced tax income. At the same time, state and local government spending on unemployment compensation jumped 86%. It is no wonder education institutions are looking at all means possible to save money on benefit costs. The good news is that many effective cost-containment strategies are readily available, are proven to work, and can be implemented at no direct cost to the employer. This article offers five smart ways on how educators can save money on their benefit costs: (1) Implement wellness initiatives; (2) Move noncore benefits to employee-paid voluntary benefits; (3) Conduct a dependent verification audit; (4) Increase employee participation in pretax benefit programs; and (5) "Right source" benefits communication and enrollment. A list of references and resources is included.