Patronage Allocations: One More Way It Pays To Be a Member
At the 2019 Annual General Meeting, Fusion announced they are giving $600,000 in patronage allocations to members plus $1.3 million in cash payouts to members under 19 and 65 and over, along with other dividends that bring the total return this year to $2,266,874.
So, how do patronage allocations work, and how do you get yours?
“A patronage return is one way that credit unions share profits with their members,” says Kelly Brook, Chief Financial Officer. “As shareholders, every member of the credit union is entitled to a percentage of the patronage return, in the years when one is warranted.”
“We are thrilled to be paying out over $2 million to our members,” says Darwin Johns, CEO. “With so many people facing uncertain times right now, we hope that the cash payouts are a timely support to our members, who have made Fusion Credit Union flourish. The annual payouts have been accelerated this year to put cash in members’ hands when they need it the most.”
As shareholders, every member of the credit union is entitled to a percentage of the patronage return
Each member of Fusion purchases a $25.00 share when they become a member (except youth, whose share costs are covered by Fusion). That share entitles you to a portion of the patronage return. The amount depends on the holdings you have on account.
“The distribution to members is based on their relationship and represents a portion of their interest paid and earned during the past year,” adds Kelly Brook.
“For most members, the patronage allocation goes into their surplus share account; it belongs to the member but remains part of the equity of the Credit Union.”
Members will see their allocation on their statements. Business account holders will see the change around the end of June and Personal account holders will see it on their July statement.
Members’ patronage allocations are retained in a Surplus Share account. Before the amalgamation, Catalyst Credit Union had a policy to distribute patronage payments in cash to members once they reached age 65, Fusion has now adopted to continue this. The Board made the commitment to align these payouts to all Fusion members over 65, over a four-year period.
This year, they are paying out $1.3 million in cash across to members who are over 65 and under 19. The balance of the $2,266,874 is allocated to our members through allocations, cash redemptions of Surplus Shares and Preferred Share Dividends.
$1.3 million will be used to pay a portion of the balances held by all Fusion members who are over age 65 and under 19.
“Fusion belongs to its members and we all take great pride in helping our members live their best lives,” adds Johns. “We are committed to ensuring our members and communities remain at the centre of every policy, decision and action we undertake.”