Member VIP FAQ

Am I getting a Special Dividend? How will I know?
All members who will receive a Special Dividend/s will be notified through email (if we have a current address on file) and in monthly statements.

When will I receive my Special Dividends?
VIP Patronage Dividend, Loan Rebates and Deposit Bonuses will be paid to qualifying members (VIPs) in mid to late January of 2014.

How will I receive my Special Dividends?
Special Dividends will be deposited directly into the member’s Share Savings account (S1).

Why are dividends being paid into Share Savings?
Share Savings is the one account type that all members have in common.

How can I calculate my Special Dividends?
Review the VIP Member Program page of our website to help get an idea of what dividends you qualify for and the respective amounts. See qualification guide and VIP payout information.

Is a Loan Rebate Dividend or Deposit Bonus Dividend reportable on my taxes?
Yes. Loan Rebate Dividends and Deposit Bonus Dividends are reportable on IRS Form 1099 INT for the year the dividends are awarded.

Can I receive more than one Special Dividend?
Yes. There are multiple Special Dividends which include a VIP Patronage Dividend, Deposit Bonus, and Loan Rebate. It is also possible for an individual member to earn Special Dividends on more than one Share Savings account. If a member with more than one membership account qualifies for VIP status, by performing 144 annual checking withdrawals per account, each account then earns VIP status and will be awarded accordingly.

I have more than one membership account. Will PCU count all of the loans and deposits I have among them when determining my VIP status and any Special Dividends?
No. PCU looks at each membership account as separate entities. Even if two accounts have the same owner, each account is taken into consideration for VIP eligibility on its own.

My spouse is joint on my checking account, is he/she also a VIP?
Whoever is the primary account holder is a VIP. If he/she is not the primary account holder, then they are not a VIP.

I’m a VIP; why didn’t I receive a dividend?
Being a VIP automatically qualifies you for the VIP Patronage Dividend of $5.00. To be eligible for either the deposit dividend or loan rebate, you are required to meet the criteria for each.

When are VIPs determined?
VIPs are determined at the beginning of January. Once a member is determined as a VIP, they will remain a VIP for the remainder of the year.

Why are VIPs only determined annually?
We want members to be able to enjoy the benefits of being a VIP for a sustained period of time, while ensuring that it is easy to explain and understand. Shortening the time period would mean that members could fall in and out of the program. Likewise, the behind-the-scenes complexity of the program makes an annual program much more favorable.

Is the dividend paid at the same time every year?
While annual member Special Dividends are not guaranteed, it is our objective to reward members annually in January.

How can I ensure that I get a dividend again?
Dividends aren’t actually guaranteed each year and will be determined by the overall financial performance of the credit union at the end of each year. However, we would like to continue offering our members a dividend each year. In order for PCU to continue a patronage dividend, a member must maintain two or more loan types or two or more deposit types, to help increase your chances of receiving a dividend in the future.

Once a VIP, will I always be a VIP?
Once you have been determined to be a VIP, you will remain a VIP for the rest of the calendar year. Each January, we will recalculate who our VIPs are based on the number of withdrawals done from your checking account over the course of the year.

What is the significance of 144 withdrawals?
Our research shows that a member who is actively using PCU for their primary checking relationship does at least 144 transactions each year. In fact, most of our active checking accounts are being used twice as often. The 144 withdrawal count also makes it very easy for members who use a PCU Checking Account at least 12 times a month to qualify as VIPs.

Do I have to do at least 12 withdrawals every month to remain a VIP?
No, once you have been qualify as a VIP by completing 144 checking withdrawal transactions, you remain a VIP for the entire year.

Which withdrawals count? Is it only debit card purchases?

Most withdrawal transactions count, including debit card purchases, ATM withdrawals, checks, automatic payments (ACH) and transfers based on our transaction code data.

Where is the dividend money coming from? Who is paying for it?

The Special Dividends come from a portion of our net earnings. Net earnings are the money left over after we’ve covered our operating expenses, regular member dividends, deposit interest and reserve requirements.

Why don’t banks offer Special Dividends? Why don’t other credit unions?

Banks are stockholder-owned corporations and are obligated to return excess earnings (in the form of dividends) to their shareholders, not their customers. Because PCU is a financial cooperative and our members are both customers and shareholders, we can return excess earnings to our membership. Some other credit unions, and many other cooperatives, actually do offer patronage dividends in some form or another.

Why are there three Special dividend programs?

The programs are designed for members who are in different financial life phases. While there is some overlap as people transition from their borrowing years into their wealth-building years, most people fall into only one category of financial need. It simply isn't a good service to our members - nor is it an effective use of our resources - if we try to incent members to open accounts they don’t need.

Does my signature loan count toward the Loan Rebate Dividend?
Your Signature Loan does not count as a loan type toward your eligibility for the Loan Rate Dividend. However, it does factor into the total interest paid when determining how much your Loan Rebate Dividend will be if you qualify.

Do Certificates of Deposit (CDs) count towards the Deposit Bonus Dividend?
CDs do not count as a deposit account toward your eligibility for the Deposit Bonus Dividend. However, it does factor into the average balance when determining how much your Deposit Bonus Dividend will be if you qualify.

I co-signed on a loan. Which one of us gets the credit toward a Loan Rebate Dividend?
The primary borrower will be credited toward the Loan Rebate Dividend if they meet all of the criteria for earning the dividend.

My spouse and I each have a checking account and are VIPs. We also have a mortgage and an auto loan, but we didn’t receive a dividend. Why not?
Dividends are determined by each individual account, not by household. Two of the qualifying loan types per individual account are required to be eligible for a Loan Rebate Dividend.

Do my business accounts qualify?
No. Business Accounts, Custodial Accounts, and Trust Accounts are not eligible. Business checking is not factored into VIP eligibility. Likewise, business deposits and loans are not considered as part of either dividend qualification or Special Dividends.

Does my Health Savings Account (HSA) count toward the Deposit Bonus Dividend?
Your Health Savings Account counts toward your eligibility for the dividend and factors into determining how much your Deposit Bonus Dividend will be.

Can you explain how average balance is calculated?
Deposit Bonus Dividends are based upon a member’s year-end average daily balance. This is calculated as the average of the month-end average daily balances of all deposit accounts (non-business) listed under a single membership number for the calendar year. This may vary slightly –although insignificantly – from a true average daily balance because not every month has the same number of days. Any variance between the two is neutralized by our tiered Special Dividend model.

What is a member in good standing?
A member in good standing is any member who has at least $1.00 deposited in their Share Savings account; it is your ownership share in our financial cooperative. In addition to being a member in good standing, in order to receive a dividend a member must also not have any loan charge offs or delinquencies.

As a result of the $500,000 Special Dividend, are there going to be any increases to loan rates or decreases to deposit rates?
No. PCU planned for this Special Dividend as part of the annual budget, so it will not affect the pricing of other products.

Will a HELOC count as one of the two loan types if there is no outstanding balance on the account?
Yes. HELOCs and Visa Credit cards count whether they have a balance or not. Because they are lines of credit that you keep open and use as needed, simply having the product is important to us.

Will a Visa count as one of the two loan types if there is no outstanding balance on the account?
Yes. Visa Credit cards and HELOCs count whether they have a balance or not. Because they are lines of credit that you keep open and use as needed, simply having the product is important to us.