Capital Credits FAQ

What if the cooperative does not have a valid address for a past member?

SVEC will still retire the capital credit of the member but will not mail out a check. The cooperative will list on its website all past members who currently have unclaimed retired capital credit monies.

How can a member claim unclaimed capital credit monies?

If you believe that you or a person you are a legal beneficiary of have unclaimed capital credits, go to our unclaimed capital credits page and submit the online form to begin the process of validating your claim.

What happens to capital credits that are never claimed?

Capital credits that are not claimed after three years are reallocated to the current year’s membership. This allows the cooperative to keep the ownership stake of the cooperative in the community.

What happens if the member is deceased or a member business closes?

SVEC does not retire the remaining capital credits in lump sums. The capital credits can be transferred into up to three beneficiaries who will continue to receive the capital credits retirement until the capital credits are exhausted and the member no longer has an ownership stake in the cooperative.

Are capital credits retired every year?

At the end of each year the board of SVEC determines if the cooperative is in a financial position to retire capital credits. There are certain requirements the cooperative must meet before the board can consider retiring capital credits. Fortunately for more than the past 20 years the cooperative has been able to retire capital credits to the membership every year.

Can a member receive a lump sum payout of capital credits?

The cooperative does not retire capital credits in lump sums. Capital credits are retired over time as they are replaced by other members’ more recent capital credits.

Are payments for capital credit retirements taxable?

SVEC’s residential members do not need to report payments of retired capital credits as income when they file their taxes. Commercial members, however, should consult their tax adviser regarding the taxable nature of their capital credits.