The concept of patronage returns is unique to credit unions and we are proud to offer it to our loyal members!
Our Member Rewards Plan provides each Access Credit Union member with an opportunity to share in the credit union’s earnings while maintaining a strong equity position.
The amount a member receives is based on:
- Interest earned on non-registered deposits; and
- Interest paid on lending products.
As part of our merger commitment, both credit unions agreed that the new credit union will focus on maximizing the ability to pay patronage to members as part of the cooperative values and belief that members should share in our profits.
A new enhanced patronage program with the objective of paying bonuses in cash to members is in development and we look forward to sharing more details in the coming months.
2020 Patronage Payment Schedule
Share allocations paid to Surplus Share account.
Patronage allocations paid to Surplus Share account.
Eligible members may transfer their new surplus shares to RRSP surplus shares.
Announcement of AGM, Patronage Allocation, and Cash Redemption.
Cash redemption of a portion of surplus shares to members’ chequing or savings account.
Frequently Asked Questions
After satisfying requirements for reserves, the Board of Directors may set aside a portion of earnings for members who have borrowed and saved at the Credit Union.
Members can benefit from two components of the Member Rewards Plan:
- patronage; and
- share allocation.
Patronage and share allocations are distributed to members in the form of Surplus Shares. This ensures a strong equity base for the future of Access Credit Union and also ensures that the members benefit in relation to their utilization of Credit Union services.
Patronage is earned and calculated from:
- All T5 interest earned on non-registered deposit accounts with the same ownership; and/or
- All interest paid on eligible member loans, mortgages, and LOCs (interest paid within LOC limit).
Members are allocated a percentage of the interest they earned and the interest they paid during the calendar year. The balance of the patronage allocation will be credited in the form of Surplus Shares to their individual Member Rewards Plans. The allocation rate may vary from year to year as it depends on the amount of earnings achieved. The following examples illustrate a patronage allocation rate of 5% on both deposits and loans:
|Lending & Borrowing||Member A||Member B||Member C|
|Interest paid on mortgages, personal loans and lines of credit||$6,400||N/A||$650|
|Interest earned on savings and term deposits||$1,100||$4,000||$1,050|
|Total interest paid and received||$7,500||$4,000||$1,700|
|An allocation of 5% results in a credit to the individual Member Rewards Plan(s) of||$375||$200||$85|
The Board of Directors will decide each year whether earnings warrant an allocation.
The Board of Directors may declare a share allocation on the existing Surplus Shares of active members on an annual basis, depending on the level of earnings achieved by Access Credit Union.
Generally, Surplus Shares cannot be fully redeemed by a member. Like the $5 membership share, the Member Rewards Plan is your vested interest in the operation of the Credit Union. Every year the Board may declare a block redemption of Surplus Shares. This way all members receive the same percentage of their Surplus Shares redeemed to their accounts.
There are special circumstances under which consideration will be given to a complete redemption of Surplus Shares:
- Death, bankruptcy, or dissolution of a company or organization;
- Upon closing all accounts, and repaying any outstanding loans to Access Credit Union.
All active members who receive paper statements will receive notice annually advising them of the details of the allocation of Surplus Shares. The Member Equity Plan will show on the regular consolidated statements of account.
Your statement will detail your Member Rewards payout under the “CRB” line, which is defined as your Cash Rebate. This same acronym will be displayed in your account activity in online banking and on the mobile app.
Because Surplus Shares represent true equity, they are considered capital and therefore are not guaranteed. However, it is unlikely that Surplus Shares would ever have to be called upon because Access Credit Union has a very strong level of reserves built up in the form of retained earnings, and these reserves would have to be depleted first.
All members paying or receiving interest in a sufficient amount to warrant an allocation of one dollar or more will be allocated Surplus Shares to their Member Rewards Plans.
An allocation to Member Rewards Plans based on interest earned on savings or term deposits is taxable as interest income in the year received, as is any share allocation paid on existing Member Rewards Plans. Both are included in the T5 income tax slip issued by Access Credit Union.
An allocation based on interest paid on a loan is taxable only if the loan interest was tax deductible, as in the case of a business loan. It is the responsibility of the member to determine if the allocation is taxable and to report it if necessary on their income tax return.
By increasing your use of loan and deposit services with Access Credit Union, you increase your participation in the Member Rewards Plan!