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Surplus shares

Q. When can I redeem my surplus shares?

A. Shares are redeemable at retirement after a minimum 7-year holding period for individual members, and a 15-year period for business members. To be considered retired, you must have reached the age of 60, or 50 in cases where the employment or business income is less than 25% of the maximum pensionable earnings amount set by the Régie des rentes du Québec.

Q. Are shares transferable from one member to another?

A. Shares are transferable between members, but the two parties must be members of the same caisse.

Q. Do I have to choose between surplus shares and cash every year?

A. No. When you register for the program, your participation carries over from year to year, until you notify us otherwise.

Q. How will I know how many shares I have?

A. You will receive an annual account statement. Or, you could find out by contacting your caisse at anytime.

Q. Can I opt to receive my member dividends in both cash and shares?

A. Yes.

Q. Are member dividends on Desjardins Funds and Northwest Funds eligible for the surplus share program?

A. Yes. The amount you can choose to receive in cash or shares includes member dividends on Desjardins Funds and Northwest Funds. In fact, the caisse or branch pays member dividends to members out of its surplus earnings. The amount paid to each member is based in part on their Desjardins Funds and Northwest Funds holdings.

Q. What are the advantages of the surplus share program?

A. The surplus share program has many advantages, including the 30% member dividends increase that you can put into an RRSP. Furthermore, you will actively be participating in the capitalization of the caisse you co-own.

Q. What is a surplus share?

A. A surplus share is a security that you buy to actively participate in the capitalization of your caisse and that can earn you a higher annual return than regular savings.

Q. What conditions must I meet to be considered to have reached retirement age?

A. You must have reached age 60 or be between ages 50 and 60 and draw an employment or business income that doesn't exceed the limits set by the Régie des rentes du Québec, that is 25% of your maximum pensionable earnings (MPE). For 2010, the MPE is $47,200.

Q. As a business owner, is the holding period affected if I transfer my shares from member dividends to my shareholders?

A. Yes. The holding period then drops from 15 years to 7 years (if the shareholders are individuals), and all other terms for individual members apply. The 7-year holding period begins on the date of transfer.