Savings Policy

7/29/2019 Savings Policy

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Savings policy

Saver's Credit Limits Revised for Tax Year 2010

The IRS has issued its annual inflationary adjustments for the Saver's Credit (formally the Retirement

Savings Contributions Credit) eligibility requirements. This document provides an overview of eligibility

rules for the upcoming tax season.

The Savers Bonus is a policy proposal that would reward low- and moderate-income individuals and

families who save at tax time. Every dollar deposited in a designated savings product would be matched

with an additional dollar from the federal government, up to a $500 annual maximum.

U.S SAVINGS BONDS-Report on the tax season 2009 savings bonds project, where taxpayers were

encouraged to allocate part of their refunds to U.S. Savings Bonds. The research found that taxpayers

like to buy savings bonds for their children, and prefer paper savings bonds to online bonds.

LOW COST AND SAFE BANK PRODUCTS-Research paper on reloadable prepaid cards, which function like

electronic bank accounts without checks; consumers load funds on the card and can spend only what

they load, limiting the risk of overdraft while providing immediate liquidity. The research notes financial

circumstances that lead consumers to prepaid cards and examines several benefits consumers cite as

reasons for liking their Financial Literacy and Education Commission

FINANCIAL LITERACYThe Treasury Departments Financial Literacy and Education Commission solicited

comments on a number of questions related to a national strategy for financial literacy and education.

In response, practitioners from 24 organizations signed a letter to Treasury with detailed answers to

each of the Commissions questions.

AYALA MULTI-PURPOSE COOPERATIVE MEMBERSHIP POLICY

Membership Policy

MEMBERSHIP

1. Attend the Pre-Membership Education Seminar or read the AMPC Brochure w/ FAQs.

2. Commit to continuous share capital build-up.

3. Pay a one time P50.00 membership fee which can also be deducted from salary.


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BENEFITS

Coop members are entitled to earn dividends on their paid-up capital, receive patronage refund on their

interest payments and avail of the loan products and services.

RIGHTS & DUTIES OF MEMBERS

1. Commit to contribute to sustained capital build-up through semi-monthly

salary deduction.

2. Patronize the Cooperative's business.

3. Participate in parliamentary affairs.

4. Obey rules and regulations and policies of the Cooperative.

5. Inspect and examine financial records, and other records of the Cooperative.

AYALA MULTI-PURPOSE COOPERATIVE MEMBERSHIP POLICY

OBJECTIVE

This policy provides guidelines governing membership in the Ayala Multi-Purpose

Cooperative drawn from CDA Regulations, pertinent provisions of AMPC By-laws and

policies and procedures approved by the Board of Directors for the orderly

implementation of Coop programs and services.

I. WHO CAN BECOME A MEMBER Membership in the Ayala Multi-Purpose Cooperative is a privilege

extended

to employees of the Ayala Group of Companies:

A. Regular employees are qualified to become regular members of the Cooperative.


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B. Members who have resigned or retired from the Ayala Group may

apply as Associate members.

A. Regular members

Participation in the capitalization of the Cooperative through their commitment to sustained capital

build-up.

Enjoy fully all the loan products of the Cooperative.

Share in the surplus earned by the Cooperative.

To be paid patronage refunds in the proportion that they patronize the business of the Cooperative.

To attend meetings and participate in the parliamentary affairs of the Cooperative.

B. Associate members

Participate in the capitalization of the Cooperative.

Avail of the loan facilities up to 50% of their investment in the Cooperative.

Share in the surplus earned by the Cooperative.

To be paid patronage refunds in the proportion that they have patronized the business of the

Cooperative

II. HOW TO BECOME A MEMBER Employees of the Ayala Group of Companies can apply for

membership through the following procedure:

Attend a Pre-Membership Education Seminar given by an accredited Trainer of the Cooperative.

Fill out a Membership Application Form including a commitment to a semi-monthly salary deduction for

Share Capital and submit the same to the HRD.

The HRD certifies that the applicant is a regular employee and sends the application form to the Coop.

The Coop activates the membership by including his/her semi-monthly pledge for Share Capital

Contribution in the semi-monthly billing sent to the Company payroll.

The one-time membership fee of FIFTY PESOS (P50.00) can be paid out of the first salary deduction.

He or she becomes a regular member upon full payment of at least 4 shares (at P500 per share).

III. SHARE CAPITAL


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The main source of funds of the Coop comes from members' share capital contributions.

One share has a par value of P500.00.

Every member is required to subscribe to at least four (4) shares with a total value of P2,000.00 in order

to become a bona-fide member entitled to avail of the Coop's loan facilities.

However, the By-laws of the Ayala Multi-Purpose Cooperative require all members to commit to

sustained capital build-up. Therefore semi-monthly salary deductions for share capital contribution will

be sustained even after the minimum P2,000.00 subscription is completed.

Aside from the regular semi-monthly share capital contributions, members may also increase their

investment through direct deposit to the Coop's bank account (BPI CA# 0381-0116-66). Deposits may

also be coursed through BPI Expressonline. Members should indicate their Member Reference Number

in the deposit slip for the Coop to issue an Official Receipt.

It is standard practice among Cooperatives to use paid-up share capital to determine the loan

entitlement of regular members. In this connection share capital cannot be paid through loan borrowed

from the Coop.

At the end of the year, numbered stock certificates are issued to members for every P50k additional

share capital they have contributed during the year.

At any time, members have the right to request for a print out of their paid-up share capital ledger or

request for a certification of share capital balance.

IV. CALCULATION AND PAYMENT OF DIVIDEND AND PATRONAGE REFUND

Upon completion of the external audit in compliance with the CDA policy, the Coop deducts the

mandatory reserve requirements (10% General Reserves, 5% Cooperative Education Training Fund, 5%

Optional Reserves, 3% Community Development Fund) from the Annual Surplus to determine the

Surplus Available for Distribution.

A proposal dividing the Surplus Available for Distribution into Dividend and Patronage Refund is

presented for approval of the Annual General Assembly of the members. This ratio determines the

amount that will be paid out as Dividend and the amount to be paid out as Patronage Refund.

Dividend Rate: The Surplus Available for Distribution as Dividend is then divided by the Total Average

Share Capital to get the dividend rate.

4. Total Average Share Capital:

4.1. Total Share Months: This is computed by adding the monthly balances of each

member's share capital for 12 months using the 7th of the month as the


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cut-off date; share capital received from the 1st to the 7th of the month are

counted for that month while amounts paid after the 7th

are counted for the next month.

4.2. Average Share Capital: This is computed by dividing the

Total Share Months by 12.

4.3. Total Average Share Capital: The Average Share Capitals of all

members are added to get the Total Average Share Capital.

5. The Patronage Refund Rate is computed by dividing the Surplus Available

for Distribution as Patronage Refund by the Interest Income from loans. Only loans

under the Regular Lending Windows are entitled to Patronage Refund.

6. Patronage Refund paid to each member is computed by multiplying the patronage

refund rate by the total amount of interest paid under the Regular Lending Windows.

7. Actual payment of dividends and patronage refund is effected after the

General Assembly approves the Board's proposal.

8. Members who terminate their membership from January 01 to June 30 will not be

be entitled to dividends/patronage refund of the current year.

V. TERMINATION OF MEMBERSHIP

Any member who withdraws, terminates or resigns his membership from the Coop

implies that he ceases to be interested in the business of the Coop. Termination of


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membership can be effected through the following procedure:

Fill out the Membership Termination Form and submit to Ayala Coop, together with a photocopy of valid

ID and the original stock certificate issued to the member.

In behalf of the Board of Director, the General Manager approves the resignation after the member has

settled all outstanding obligations to the Cooperative.

As a standard procedure, the Coop processes the termination request upon full payment of loan/s and

receipt of in transit remittances from the Companies for loan payments and share capital. Hence, turn-

around-time may extend from 1 to 4 weeks.

Resigned members who continue to be employees of the Ayala Group may re-apply six months after

his/her resignation. No re-application is allowed for any member who resigned for a second time.

VII. INACTIVE STATUS

Members who strictly comply with the requirement for sustained capital build-up are considered Active

Members. They are entitled to avail of the loan products of the Coop subject to its credit policy.

Regular members whose share capital has not moved for at least six months are considered Inactive

Members. They will not be entitled to the loan products of the Coop. To be reinstated as Active

Members they have to renew their pledge to share capital build-up.

Inactive Members who fail to reactivate their status within six months will be considered resigned.Outstanding loan balances will be due and demandable. Their paid-up share capital will be lodged as a

liability suspense account which will not entitle the members to any dividend.

Resigned employees from the Ayala Group are ipso facto considered resigned from the Coop unless they

apply as Associate Members. Their paid-up share capital will be lodged to a liability suspense account

and will cease to earn dividends. They may request for payment of their paid up capital by submitting a

Membership Termination Form.

Documents

Savings Policy