Co-op Pays Out $2.3 Million During Co-op Week

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October 13, 2017
Co-op Pays Out $2.3 Million During Co-op Week

Pembina Co-op recorded another strong year in 2016 with sales of $127.0 million while achieving a net savings of $6.63 million. After allocating for reserves and paying income taxes, Co-op members received a patronage allocation of $4.04 million. Your individual equity statement is enclosed in the mail-out showing how you have benefited from supporting your Co-op during 2016.

Your individual patronage allocation is based on 1.0% of general merchandise and project purchases, 3.0% of fertilizer purchases, 4.0% of crop input purchases, 4.75% of clear petroleum (including propane and lubricants) purchases and 5.25% on dyed petroleum purchases. There was no patronage allocation made on food purchases.

Many Co-op members will also receive a cash repayment in this package. During Co-op Week, Pembina Co-op is paying out $2.32 million. This includes a general repayment of $2.02 million, which is calculated on a percentage of your 2016 patronage allocation. When combined with the withholding tax that the Co-op has forwarded to Revenue Canada on each member’s behalf, members will receive 40% to 95% of their patronage allocation in cash. The cash repayment percentages increase as the members total equity balance in the Co-op grows. More information pertaining to your equity statement is included on the last page of the newsletter.

In order to receive a cash repayment, you needed to purchase enough goods in 2016 to generate a minimum cheque of $10. This would be approximately $2,500 of general merchandise or $530 of gasoline. New members also need to build their equity balance to over $100, so it may take a few years to receive their first cash repayment.

The cash repayment also includes $305,000 being paid out to members who are eligible under the Co-op’s age bylaw. Once a member reaches the age of 65, they can apply to have their equity balance paid down to the $100 minimum balance. Once this is approved by the Co-op’s Board of Directors, these members receive their entire patronage allocation in cash each year.

It is important to note that this does not happen automatically when the member turns 65 - each member must complete a written application. This can be done at any one of Pembina Co-op’s retail outlets or at the Administration office.