Building your future

 

The Rewards of Membership

 

As a member of Advantage Credit Union:

§         you own and hold shares in the organization

§         you can help determine policies, elect directors and have an overall say in our direction.

§         you will have the opportunity to enter various member draws held throughout the year for things such as concert tickets or credit union merchandise.

§         profits are returned to you, the shareholders, in the form of patronage refunds. Read more about our Member Patronage Equity Program below.

 

Advantage Credit Union

Member Patronage Equity Program (MPEP)

 

Advantage Credit Union is committed to maintaining a solid equity base that enhances our future financial stability to support new services and developments. The Member Patronage Equity Program (MPEP) does this for us, plus it builds your equity account, based on your business with us, providing you with savings for the future. Registered funds including RRSPs, RRIFs, and RESPs are not eligible due to their complexity in administration.

 

How does MPEP work?

 

Annual member patronage calculations are based on total business held with Advantage Credit Union. Balances are taken at a given point in time during the year to determine the amount the MPEP will be paid on. The MPEP is designed so that over time, it will grow Advantage Credit Union’s equity base an additional 2%. This ratio could change as directed by legislative requirements or by the Board of Directors through the long-term strategic plans or annual budget process. Patronage is determined each year by the Board of Directors.

 

Patronage will be allocated as follows:

 

§         If your patronage payment is between $5.00 and $99.99, your Member Patronage Equity Account (MPEA) will be credited. If you don’t currently have a MPEA, one will be created for you. Payments will not be made for allocations of less than $5.00.

§         If your patronage payment is $100 or greater, 50% will be paid to you by cheque, and the remaining 50% credited to your MPEA.

§         If you are leaving the community/trading area and closing your account(s), your application will be reviewed and considered after year-end.

§         MPEP Accounts that involve estate settlement, bankruptcy or Revenue Canada demands for payments will be paid out in full.

§         If an MPEP Account is held jointly, the surviving member may choose to keep the account as-is under their name.

§         The year you turn 70, you will receive your accumulated balance in your MPEA along with your allocation for the year (if applicable). Each year following, if there is a patronage allocation, you will receive your MPEA balance in full annually.

§         The amount paid on your deposits is subject to tax, and is included in your T5 total. The portion paid on your loan does not require a T5. If you claimed the loan interest as an expense, you will be responsible to reduce your tax deduction by loan patronage received.

§         A maximum cap of $2000 will be placed on all MPEAs, and balances in excess of the cap will be paid out as a separate cheque within 30 days after Patronage Day. This cap may be adjusted by the Advantage Credit Union Board of Directors when approving patronage allocation, based on the credit union’s capital position.

§         Charitable organization accounts may apply annually by letter for cash payout of any portion or of all funds held in the MPEA by providing documentation and proof of their registered charity status.

 

If you have any questions about the Member Patronage Equity Program, please contact your branch, or email us at reachus@advantage.cu.sk.ca.