OWNERSHIP BENEFIT SHARES
The benefits of credit union ownership are increasing in value!
MSCU is YOUR Credit Union. For more than a decade, we have been sharing our earnings with you, our owners, in the form of annual patronage distributions. The distributions take the form of a class of shares called Ownership Benefit Shares (OBS). Recently, you have been asking us to make some changes to how these shares work, and we are now happy to announce that we have done just that. We believe that the changes described below provide you with significantly greater value as Credit Union owners!
Capital in the form of Ownership Benefit Shares (OBS) has been essential to support MSCU’s significant growth in assets over the past years. With the addition of Investment Share capital in 2005 our capital base has stabilized and we are now able to make the following changes.
It’s your money, you deserve a return on it!
A dividend calculated at the rate of 4.16% was deposited to your Ownership Benefit Share account on February 7, 2008; $531,763 in total was distributed on this basis to member accounts. In future, a dividend is expected to be paid annually on OBS at a rate determined at each year-end.
We value your loans and your savings!
The method of calculating the annual patronage distribution to members has been amended to include interest earned on investments in registered products (RRSPs and RRIFs), in addition to interest on non-registered products and interest paid on lines of credit and loans. This distribution was completed on February 22nd with $1,267,546 posted to member OBS accounts at the rate of 2.605% of total interest earned and paid during 2007.
Taken together, the 2007 patronage allocation amounted to $1,800K, an increase of more than 12% over the amounts allocated for the 2006 year.
It’s your money, you can access it!
Access up to 5% of your OBS balance
In 2008 you will have two opportunities to access up to 5% of your OBS balance, subject to a set dollar minimum. The first opportunity is April 14th until June 13th. These transfer requests would be processed and appear on your June statement. Following June 13th, MSCU will receive additional requests until November 14th with these transfer requests processed and appearing on your December statements. All transfer requests are subject to approval by the Board of Directors.
Transfer funds from non-registered to registered OBS accounts
MSCU recently created a registered version of OBS. With this you can transfer OBS earnings from non-registered to registered OBS (RRSP) that would then be deductible for tax purposes.
If you would like to learn more, visit your branch and ask to speak with a Financial Planner or an Investment Clerk. We’re excited about these enhancements to your
Ownership Benefit Shares...we hope you are too!
Ownership Benefit Shares Transfer Request (up to 5% transfer)
February Member Statement Letter
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