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IMPORTANT CHANGES TO DEATH BENEFIT PAYMENTS | |
At the Annual General Meeting on 11th March 2010, the members voted to amend the Johnstone Credit Union Death Benefits Fund. Beginning on 1st April 2010, two major changes will be implemented. | |
1. | On the death of a credit union member, the payments on a deceased member’s shares will be significantly increased. |
2. | The fund will no longer make a direct payment to repay any outstanding loan balance. |
New Death Benefits Entitlement | |
* | All members’ S1 life savings are covered be the fund. |
* | No charge shall be levied on any member for participation in the fund. |
* | The Board of Directors shall be the sole arbiter of all payments from the fund. |
* | All payments from the fund will be made in accordancw with a formula agreed by the members at the AGM. It should be noted that the general level at which payments are made may be varied by members at a future general meeting. |
Calculation of Payments from the Fund | |
1. | All loan arrears due at the date of death shall be transferred from shares before death benefit payments are calculated. |
2. | These arrears will be transferred first from S2 shares then from S1 shares. |
3. | In the interest of fairness and equity the level at which payments will be made will reflect the value of shares held at the date of death and the length of time the S1 Savings have been held by the member. |
4. | To facilitate this objective, payments on Life Savings will be made in accordance with the following formula: - |
S1 Shares deposited up to 65th Birthday and retained till date of death: | 150% |
S1 Shares deposited between 65th & 70th Birthday and retained till date of death: | 100% |
S1 Shares deposited between 70th & 75th Birthday and retained till date of death: | 50% |
S1 Shares deposited after 75th Birthday and retained till date of death: | 10% |
5. | After death benefits have been added to the members account, any outstanding loan balances will be cleared by transfer from the member’s share account. |
6. | After all credit union debts have been cleared, the remaining shares in the member’s account will be paid to the nominated beneficiary. |
Notes on Calculation of Death Benefits | |
* | Death Benefits will be paid on S1 Shares only. |
* | The maximum shares deposited in the year prior to death that qualify for payment, is £500. |
* | The maximum payment on shareholdings will be £5,000. |
* | Payments on shareholdings will be determined after the transfer of loan arrears. |
* | In the event that the member’s shareholding after payment of benefits is insufficient to clear outstanding loan balances, the residual balance will be repaid from the death benefits fund. |
* | If the beneficiary is a bad debtor, the outstanding debt will be deducted before payment of benefits. |
Not For Profit, Not for Charity, But For Service |
