Before members receive their
dividend check, the money is
actually working to save money.
The business of building and
maintaining telephone and
internet lines is quite
expensive. FMCTC uses the
dividends to help finance
construction, rebuilds and
maintenance. Without this
source of funds, FMCTC would
have to borrow more money, pay
more interest and
ultimately, it could lead to
higher rates. Instead, the
dividends are put to work to
help provide adequate cash flow
for reinvestment in the
business. It shows FMCTC’s
lenders that the cooperative is
financially stable.
Patronage Dividends Frequently
Asked Questions
The following frequently asked
questions (FAQs) provide
additional information. If you
have a question that is not
included on this list, please
contact FMCTC Customer Service
at 712-744-3131 or e-mail us at
fmctc@fmctc.com.
What is Patronage?
Your patronage is the value of
local telephone service,
long-distance service, 800
number service, custom calling
features, internet, and wireless
services you use. Miscellaneous
purchases such as telephones,
caller ID boxes, cellular
phones, business phone systems,
telephone wire and jacks are
also included. Cable TV is not
included.
What is an Allocation?
Allocation is the process of
adding the dividend amount
earned for the year to your
member account. This amount is
based on your patronage.
What is a Distribution?
When the Board of Directors
decides that the company is in
the financial position to pay
out patronage dividends, the
process of paying out the funds
designated by the Board of
Directors is called the
distribution of patronage
dividends.
How long will it take to get
all of the money shown on my
Allocation statement?
There is no stated time period
for total distribution of
patronage dividend accounts.
Patronage dividends are paid at
the discretion of the Farmers
Mutual Cooperative Telephone
Company Board of Directors and
are based on the financial needs
of the Cooperative.
When does FMCTC issue a
Patronage Dividend pay-out?
-
General Retirements
Farmers Mutual Cooperative
Telephone Company Board of
Directors reviews the
financial status of the
company on a yearly basis
and decides if the company
can pay out member patronage
dividends. If the Board of
Directors decides the
company is in a financial
position to make a pay out,
a dollar amount is
determined. Patronage
dividends are typically paid
in cycles specified in the
bylaws.
-
Estate Retirements
There is one way members are
paid the total amount of
their capital credit
account.
o A Member's Death – When a
Farmers Mutual Cooperative
Telephone Company member
passes away the estate or
legal representative may
file for full retirement of
the member's patronage
dividend account. To submit
a request for full payment
of a member's account, a
copy of the member's death
certificate is required.
Authorization forms are then
mailed back to the estate or
legal representative for
completion. Once the
completed forms have been
received by the company, the
request is reviewed by the
Board of Directors. Once the
request is approved by the
Board of Directors a check
is issued.
Can you apply this to my
phone bill?
The amount may be applied as a
payment to your account. Simply
submit payment by endorsing the
check and either bring it in to
the FMCTC business office or
send it in the mail.
Can I remove someone else's
name from an account?
FMCTC does not remove names from
an account. In case of a death
or divorce, FMCTC will refund
the account and then issue a new
membership. Legal documentation
such as a death certificate or
divorce decree may be required.
A deceased family member
received a check, what can I do
about that?
Please contact FMCTC customer
service and a representative
will be happy to assist you.
I am moving from the area...
can I have my allocated
patronage dividends?
Moving from the FMCTC service
area or discontinuing your phone
service does not result in a
full payment of patronage
dividends from your account. The
bylaws only allow payments for
General Distributions or Estate
Retirements. You continue to
maintain your membership status
with the Cooperative even after
you have disconnected your
service. You will continue to
receive patronage dividend
checks until all funds
allocated, during your years of
service, are paid out. Keeping
us informed of address changes
will ensure you receive your
future allocation notices and/or
patronage dividend checks. We've
made it easy to keep us up to
date – e-mail us at
fmctc@fmctc.com
|
…...2095
patronage
dividend
checks
were
mailed
to
FMCTC
members
in
2007.
based on the amount of services
they purchase. These earnings
are called patronage dividends.
Each member's account is
maintained by the company.
Patronage dividends are placed
in member's accounts based on
criteria established in company
bylaws. Patronage dividends are
paid out to members when
directed by FMCTC’s Board of
Directors.