What is profit distribution?

Part of our profits are distributed to members under certain conditions at the end of the fiscal year. The money comes from the Caisse’s surplus earnings and is “returned” to the member-owners.

As a financial services cooperative, the Caisse is guided by cooperative principles, illustrated by the sharing of surplus earnings.

When profits are distributed, the amount you receive is proportional to your volume of business with the caisse during the year. In other words, the more products and services you use, the better it is for you!

There are three prerequisites to a Caisse profit distribution:

1. It must have surplus earnings from the previous fiscal year.
   These surplus earnings can be compared to the net earnings of a capital stock company, but there is one small difference: the cooperative’s goal is not to earn profits for a small number of shareholders.
2. It must have sufficient capital (equity).
   The law requires the Caisse to maintain a funding level that guarantees its financial soundness. Before distributing profits, the Caisse must first make sure that its own financial needs are met.
3. Board members must decide if they will distribute a portion of the surplus earnings .
   Board members must decide if they will distribute a portion of the surplus earnings and if required, they decide the terms and conditions of payment. They may also decide to earmark a portion of the profits for community projects.

Products and services that are eligible for profit distribution

Profit distributions are calculated on mortgages, personal loans, term savings deposits and deferred tax savings plans.

Who is entitled?

You have to have been a Caisse member during the financial year. You may become a member by buying a $10 share when you open your account.

This gives you the right to attend annual general meetings and based on the “one person, one vote” rule, elect administrators and participate in other decisions such as the distribution of surplus earnings.

There are 2 types of profit distribution:

• Individual – Paid to each individual or business member in proportion to their use of their cooperative’s products and services.
• Collective – Paid into a fund in order to support local community projects.

Frequently asked questions about profit distribution (FAQ)