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Capital Credits Our "profit" is your gain. As with any non-profit cooperative, any margins remaining at the end of the year are assigned back to the membership. These assignments are made proportionate to the member's patronage, and are commonly referred to as "Capital Credits." Each year, you will receive a notice of assignment of the past year's capital credits. These credits are refundable only on the co-op's present refund schedule, or to estates or members who have reached the age of 80 years. Your co-op now refunds capital credits on a Percentage of Equity Method (PEM). This is a combination of the old "First In First Out" (FIFO) system and a "Percentage of Current Year" (PCY) system. The FIFO system has been in place since the co-op began. This system pays out the oldest capital credits first, on a 19-year rotation. The drawback was you had to wait for 19 years before you saw any capital credits. The PCY system pays back a percentage of the most recent year's capital credits. This system has the benefit of providing recognition of current members and their investment in the cooperative. Now with the PEM system the board detemines the dollar figure to be refunded. This figure is then split evenly between FIFO and PCY. Capital credit checks are available each year at the annual meeting. Checks not picked up at the annual meeting are mailed. |
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