What is a member equity account?
A member equity account is an account that has been set aside for members to include past patronage allocations.In 2013, the Conexus Board of Directors approved a no-fee account for members called FreeStyle. This account provides significant ongoing financial benefits to members of the credit union and is the primary alternative for the distribution of excess earnings back to members. As a result, a patronage allocation was not declared for the 2014 fiscal year under the Member Equity Program. Accordingly, should earnings warrant it, the board of directors could decide in any given year to declare an allocation.
Conexus has redemption guidelines.
- Age 60 - The month you turn 60, the balance in your non-redeemable equity account will be transferred to a redeemable equity account, which you then may withdraw at any time
- Charities & Non-profit Organization Accounts - The funds will be paid into a redeemable equity account
- Business Distribution Payment - The Conexus Board of Directors decides annually on the business distribution payment. This year, 10% of the existing balance of eligible non-redeemable equity accounts with a balance of more than $100 was allocated into a redeemable equity account. If the business equity account had a balance of $100 or less, the entire balance was be allocated to a redeemable equity account.
The amount will be indicated in our online or paper statement.
Closed accounts - Members who have ceased dealings with Conexus will be paid out immediately.
Member equity accounts become eligible for full redemption.
The Conexus Board of Directors decides annually on the business distribution payment. This year, 10% of the existing balance of eligible non-redeemable equity accounts with a balance of more than $100 was allocated into a redeemable equity account. If the business equity account had a balance of $100 or less, the entire balance was allocated to a redeemable equity account.
