2010 FAQs Member Patronage & Member Equity Accounts
Click on the links below to learn more about these frequently asked questions.
If you have a question you don’t see here, please contact TeleService® at 934.4000 in Saskatoon and area, or 1.866.863.6237.
Member Patronage
2. Who will receive 2010 Patronage?
3. How much will each eligible member receive?
4. Which service fees are eligible/ineligible?
5. Will all members who paid service fees in 2010 receive a Patronage payment?
6. How will Patronage be paid?
7. Are there any T5 or tax implications on 2010 Patronage payments?
8. How will members be informed about Patronage?
9. How will members be made aware of the amount of Patronage they are entitled to receive?
10. Why is Patronage being paid so late in the year?
1. What is Patronage?
Patronage is the sharing of the credit union’s earnings with its members. Each year after the requirements for financial reserves are satisfied, the Board of Directors may set aside a portion of earnings to distribute to members.
2. Who will receive 2010 Patronage?
Qualifying members who paid service fees on deposit accounts in 2010.
3. How much will each eligible member receive?
Payments are calculated at 35% of the total amount of service fees paid in 2010. The table below will provide a quick reference to determine the amount the member will typically receive based on their account service fee package.
| MONTHLY PKG FEE |
ANNUAL COST |
REFUND of 35% |
|
| SERVICE FEE PACKAGE | |||
| Personal | |||
| Heritage (Unlimited transactions) | $ 1.00 | $ 12.00 | $ 4.20 |
| Value-Pac (30 transactions) | 1.00 | 12.00 | 4.20 |
| Future Builder 25 | 4.00 | 48.00 | 16.80 |
| Future Builder 50 | 7.00 | 84.00 | 29.40 |
| Future Builder Unlimited | 11.00 | 132.00 | 46.20 |
| e-Pac 25 | 5.00 | 60.00 | 21.00 |
| e-Pac 50 | 8.00 | 96.00 | 33.60 |
| e-Pac Unlimited | 12.00 | 144.00 | 50.40 |
| CU-PAC 10 | 4.00 | 48.00 | 16.80 |
| CU-PAC 25 | 8.00 | 96.00 | 33.60 |
| CU-PAC 50 | 13.00 | 156.00 | 54.60 |
| CU-PAC Unlimited | 15.00 | 180.00 | 63.00 |
| US Chequing (CU-PAC 10) | 4.00 | 48.00 | 16.80 |
| __________________________________ | |||
| Commercial | |||
| Com-Pac 10 | $ 10.00 | $ 120.00 | $ 42.00 |
| Com-Pac 25 | 20.00 | 240.00 | 84.00 |
| Com-Pac 50 | 40.00 | 480.00 | 168.00 |
| Com-Pac 100 | 80.00 | 960.00 | 336.00 |
| Com-Pac 200 | 140.00 | 1,680.00 | 588.00 |
| Organization (50 transactions) | 5.00 | 60.00 | 21.00 |
| US Chequing Business (Com-Pac 10) | 10.00 | 120.00 | 42.00 |
The amount paid to the member may differ from the above due one of the following reasons:
- The amount of the payment represents service charges paid on all accounts under the same membership. If the member has multiple accounts with different packages, the cumulative total is posted as one credit.
- The member exceeded the number of transactions allowed per package in any given month and therefore any over-limit transactions are considered in the calculation.
- At some point during 2010, the account was newly opened or the service fee package was changed.
4. Which service fees are eligible/ineligible?
Eligible fees include:
- account package and any per item fee charged at month end
- over-limit transactions Ineligible fees include:
- fees that are not included in the service fee package (ex: over draft fees, NSF fees)
- any fees charged at time of transaction (ex: ATM withdrawals, loan application fees)
5. Will all members who paid service fees in 2010 receive a Patronage payment?
No, the following will not qualify to receive a Patronage payment:
- Members who are delinquent 120 days or over on one or more of their loans.
- Estate accounts.
- Non-Member accounts
- Memberships that were closed prior to November 30, 2011.
- Calculated Patronage payment amount is less than $3.00.
6. How will Patronage be paid?
Members will be credited one time with a total 2010 Patronage amount, for all the accounts under that membership. It will be paid to the deposit account with the lowest balance.
7. Are there any T5 or tax implications on 2010 Patronage payments?
Since Patronage is based on service fees, there are no T5 implications on payments issued to member accounts in 2011. Where a member claims a deduction for service fees on their income tax returns, the amount claimed should be reduced by the amount of Patronage received.
8. How can I get more information?
For more information on 2010 Patronage, please call our TeleService® Representatives at 934-4000 (in and around Saskatoon), or 1-866-863-6237.
9. How do I know the amount of Patronage I am receiving?
The amount will appear on your statement and in Online Banking.
10. Why is Patronage being paid so late in the year?
Early in the year, the Board determines how much Patronage will be allocated although payment can be made at any time. With this in mind, we took time to survey members and research various options to come up with a program that would benefit more members.
Member Equity Accounts
1. What is a Member Equity Account?
2. How can a member withdraw from the Member Equity Account?
3. Do Member Equity Accounts earn interest?
4. Are there any T5 or tax implications on interest payments to Member Equity Accounts?
1. What is a Member Equity Account?
Member Equity is an account that contains the balance of Patronage payments allocated to members and retained in previous years.
2. How can a member withdraw from the Member Equity Account?
A member can only withdraw from their Member Equity Account if one or more of the following criteria are met:
- Membership closure.
- Reach the age of 65.
- Deceased.
- Dissolve a corporation.
- Reach a balance of $5,000.
3. Do Member Equity Accounts earn interest?
This is the first year that Affinity has allocated an interest payment to all Member Equity Accounts. Interest will be paid on the December 2010 closing balance at a rate of 1.65%.
4. Are there any T5 or tax implications on interest payments to Member Equity Accounts?
Interest earned on the Member Equity is taxable and will be included on the member T5 slip.