FAQ

1. When can I redeem my shares?
2. Are shares transferable from one member to another?
3. Do I have to choose between surplus shares and cash every year?
4. How will I know how many shares I have?
5. Can I opt to receive my member dividends in both cash and shares?
6. Are member dividends on Desjardins Funds and Northwest Funds eligible for the surplus share program?
7. What are the advantages of the surplus share program?
8. What is a share?
9. What is retirement age?
10. As a business owner, is the holding period affected if I transfer my shares from member dividends to my shareholders?
11. Is the holding period affected if I transfer my shares to another natural person who is member of my caisse?
12. How is the average 1-year term savings return + 1.3% calculated?
13. Can I withdraw the RRSP contributions I made in the form of shares for the Home Buyer's Plan (HBP)?
14. Do I have to respect the minimum 7-year holding period when I transfer my shares to another person?
15. Where can I get more information?

1. When can I redeem my shares?

Shares are redeemable at retirement after a minimum 7-year holding period for individual members, and a 15-year period for business members. Other holding periods may apply in special situations, such as a shareholder's death.

2. Are shares transferable from one member to another?

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

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

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

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

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

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

Yes.

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

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 pays member dividends to members out of its surplus earnings. The amount is based on their Desjardins Funds and Northwest Funds holdings.

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

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.

8. What is a share?

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

9. What is retirement age?

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 2006, the MPE is $42,100.

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

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 seven year holding period begins on the date of transfer.

11. Is the holding period affected if I transfer my shares to another natural person who is member of my caisse?

The holding period is seven years for new shareholders and begins on the date of transfer.

12. How is the average 1-year term savings return + 1.3% calculated?

It is the average one-year term savings rate posted annually. It is the same for all the caisses. The return on shares is voted on at the caisse annual general meeting.

13. Can I withdraw the RRSP contributions I made in the form of shares for the Home Buyer's Plan (HBP)?

No. However, these contributions can be used to repay your HBP, under the prescribed terms.

14. Do I have to respect the minimum 7-year holding period when I transfer my shares to another person?

No. The original owner of the shares may transfer them anytime.

15. Where can I get more information?

You can go to your caisse for information and register for the surplus share program. You can also call 1-877-CAISSES, option 926, to speak to an agent.

In accordance with provincial legislation, certain conditions regarding member dividends may differ in Ontario. Please contact your caisse or your Desjardins Credit Union branch for further information.