The Pennsylvania Credit Union Association joined its Maryland counterpart on Tuesday in giving income back to its members.
In announcing the $500,000 "loyalty rebate," amounting to 18 basis points of income from its Pacul Services Inc. CUSO, the Pennsylvania group credits a "strong year" in 2010 in permitting the giveback.
"Membership, assets and deposits all showed strong increases for Pennsylvania credit unions," said the statement signed by PCUA Chairman Ray Brunner and President/CEO James J. McCormack.
PCUA said Pacul Services, a wholly-owned subsidiary, "is a unique and cooperative vendor that is pleased to share its strong year with all association member credit unions by a direct payment rebate."
The loyalty rebate was calculated based on assets and will be allocated using a formula that returns 18 basis points with a minimum rebate of $100 for small credit unions. In the aggregate, Pacul will return almost $500,000 of the projected $1 million it earned in 2010.
In addition to providing the rebates, Pacul is also contributing $20,000 to the Pennsylvania Credit Union Foundation to establish a fund for educational assistance for small credit unions.
Earlier this month t
he Maryland/D.C. Credit Union Association, in a move to help its members cope with a depressed economy, said it would be extending a 10% dues rebate for 2010.The MDCCUA said the rebates are linked to a higher than expected payoff from a CUNA Mutual Group sales incentive program. Under its plan, the very smallest CUs, under $500,000, would be getting a one-time free pass on dues as a result of the rebate.