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Coop Structure and Operation

Coop Structure and Operation. Who runs the coop and how?. Teaser Questions. Why are FICCO services priced competitively? Is it safe to deposit your money at FICCO?. Is our Money at FICCO Safe?. It’s more than its 56 years track record

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Coop Structure and Operation

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  1. Coop Structure and Operation Who runs the coop and how?

  2. Teaser Questions • Why are FICCO services priced competitively? • Is it safe to deposit your money at FICCO?

  3. Is our Money at FICCO Safe? • It’s more than its 56 years track record • It is beyond being the biggest community type coop in the whole country • Its diligence in making sure that doubtful accounts are fully provided is contributory • More so the fact that, unlike banks, its members are also the borrowers • FICCO has a tried and tested way of doing things – we call it the FICCO culture.

  4. Coop Volunteers Function, Term, etc.

  5. Two Groups that Work for the Coop • Elected or Appointed Volunteers • BOD, CRECOM, AICom, ELECOM, A&Ccom • Treasurer, Secretary, ELECOM • Paid (or salaried) Personnel • CEO, Regional Managers, Branch Managers • Cashier, Accountant, Loan Officer • Rank and File

  6. Why are FICCO services priced competitively? • Because FICCO has a group of people who performs vital coop functions without seeking rewards or recognition • We call these people as the -FICCO volunteers • They are FICCO’s competitive advantage

  7. Sources of Funds • Common Shares • Preferred Shares • Deposits • Savings • Time • Retirement savings/Instalment Savings • Youth/Young savers

  8. SOURCES OF FUNDS • FIXED /SHARE CAPITAL • Cannot be withdrawn anytime except when one voluntarily terminate his membership. • Minimum P3,000.00 • Maximum 20% of total Capital of FICCO. • Average dividend is 9% - 12%P.A.

  9. SOURCES OF FUNDS • PREFFERED SHARE: • For Associate Members • Non- voting • 1 share = P 100.00 • Preferred as to income • The same dividend as Common Share.

  10. SOURCES OF FUNDS • SAVINGS DEPOSIT • Can be withdrawn anytime as long as it is not encumbered to the depositor’s loan. • Earns interest of 3.25% per annum+ 1% Deposit Insurance • Computed quarterly • Can be used as equity to Loan

  11. TIME DEPOSIT MINIMUM TERM 30 DAYS Based on deposit bracket AMOUNT RATE P 1,000.00 – 50,000.00 4.25% 50,001.00 – 100,000.00 4.50% 100,001.00 – 300,000.00 4.75% 300,001.00 – 500,000.00 5.25% 500,001.00 – 999,999.00 5.75%

  12. INSTALLMENT / RETIREMENT SAVINGS (Pension Savings Plan ) INSTALLMENT SAVINGS: Term - 1 to 4 years Interest Rate - 7% P.A. Example: TERM TOTAL MATURITY CONTRIBUTION VALUE 12 mos. (P100) 1,200.00 1,260.50 18 mos. 1,800.00 1,934.00 24 mos. 2,400.00 2,638.50 30 mos. 3,000.00 3,375.50 36 mos. 3,600.00 4,146.50 48 mos. 4,800.00 5,795.50

  13. RETIREMENT SAVINGS Term - 1 to 5 years Interest Rate – 7% per annum RS – 205 A Total At the Maturity Contribution end of Value Monthly - P 200.00 P 12,000.00 5yrs P 15, 198.00 Quarterly - 595.55 11,911.006yrs 16,624.00 Semi-Annual- 1,177.89 11,778.90 7yrs 18,183.00 Annually- 2,304.15 11,520.75 8yrs 19,889.00 Lump Sum- 9,706.88 9,706.00 9yrs 21,755.00 10th 23,796.00

  14. YOUNG SAVERS - For children ages 6 to 12 yrs old - Initial deposit of P 10 - Preferred Share of P 100 - Interest bearing deposit is P 200 - Interest rate is 4.50% per annum - Compounded quarterly

  15. TEEN AGE SAVINGS DEPOSIT Initial deposit is P 100.00 plus P 100 Preferred share For 12 to 17 year olds Succeeding monthly deposit of P220.00 Interest @ 5% per annum Term is 4 years Maturity Value is P 11,947.67 Pre-termination interest rate is 2% p.a.

  16. Uses of Funds • More than 29 types of loans • Features • Affordable interest rates • Easy access • Flexible terms (1 to 60 months) • Loan protection • Patronage refund

  17. Net Income to be returned to members

  18. Distribution of Dividend and Patronage Refund Formulae: Dividend Rate = Amt appropriated for dividend ∑ of members’ ave share capital Patronage = Amount approp for patronage ref refund rate Total interest paid by members (FICCO’s by-laws allows up to 95% of distributable surplus to be appropriated for dividend)

  19. FICCO Services In addition to its Loan services, we have many more!

  20. The New FICCO Mutual Aid Fund In compliance with the Joint Memorandum Circular of the Insurance Commission (IC) – Cooperative Development Authority (CDA) – Securities & Exchange Commission (SEC), FICCO MAF will be insured to FICCO’s co-owned insurance cooperative, CLIMBS Life & General Insurance Cooperative.

  21. Schedule of Benefit (Option 1)

  22. Schedule of Benefit (Option 2)

  23. TERMS & CONDITIONS • All existing FICCO Members and their Dependents as of December 31, 2011, who are insured under Mutual Aid Fund (MAF), Hospital Income Benefit (HIB), or Mutual Benefit Association (MBA) are eligible to participate without limit of age (except children who are limited up to 21 years old only, no age requirement for incapacitated children), without contestability period and death due to suicide are payable, provided, they are enrolled on or before March 31, 2012.

  24. TERMS & CONDITIONS • All members and their dependent whose insurance coverage under MAF, HIB, or MBA has expired and fail to enroll on or before March 31, 2012 will be subject to terms & conditions number 4.

  25. TERMS & CONDITIONS • Member’s insurance under Hospital Income Benefit (HIB) which are not expired, are not yet required to enroll until the last day of HIB coverage. Renewal of their insurance will be under Option 2 and will not be subject to contestability period, provided, they are insured within 30 days from the last day of the previous insurance coverage,

  26. TERMS & CONDITIONS • Existing FICCO Members and Dependents as of March 31, 2012, who are not previously insured in any of the following: MAF, HIB, or MBA are eligible and encourage to participate to this insurance program but will subject to the following terms and conditions:

  27. TERMS & CONDITIONS • Member with or without loan are free to choose from any of the two (2) options; • Member who will avail a =P=50,000.00 loan and above will be insured under Option 2; • Age must below 69 years old:

  28. TERMS & CONDITIONS • Not suffering from any of the following: Cancer, Epilepsy, HIV/AID and Stroke; • Death due to Suicide in not payable within one (1) year of coverage; • Subject to Contestability period of Six (6) Months:

  29. TERMS & CONDITIONS • In case of claim due to Pre-Existing sickness not mention in Item D the Insurance benefit will be subject to ex-gratia settlement based on this formula: Amount of Insurance -------------------------------- X Number of days insured = Benefit 180 days

  30. Ex- Gratia formula Example for Death Aid: 50,000 ----------- ---x 125 days = P 34,722.22 180 days Example for Hospitalization Claim: 700/day x 5 days --------------- x 125 days = P 2,430.55 180 days

  31. Terms & Conditions (New Members) • New and Incoming Members of FICCO after March 31, 2012 are eligible to participate to this insurance program but will be subject to the following terms and conditions: • Member with or without loan are free to choose from any of the two (2) options; • Member who will avail a =P=50,000.00 loan and above will be insured under Option 2; • Age must below 63½ years old;

  32. Terms & Conditions (New Members) • Not suffering from any of the following: Cancer, Epilepsy, HIV/AID and Stroke or any terminal illness; • Death due to Suicide in not payable within one (1) year of coverage; • Subject to Contestability period of one (1) year and no benefit will be paid in case of claim due to concealment of any health condition within one (1) year from the date of coverage;

  33. TERMS & CONDITIONS • Effective date of Insurance coverage of : • Insurance coverage of existing FICCO member and their dependent as of March 31, 2012, shall be upon submission of application with authority to deduct for payment of premium from account of the insured or upon submission of application and over the counter payment of premium to any FICCO branch provided duly receipted;

  34. Effectivity • Insurance coverage of New and Incoming Member of FICCO after March 31, 2012, will be subject to approval, if no notice after 90 days from the receipt of premium and application form from CLIMBS, the insurance policy is considered approved and effected on the application date.

  35. Upgrading of plans • All insured member are allowed to upgrade their insurance coverage from option one (1) to option two (2) provided they will fill-up new application form and will be subject to approval by CLIMBS.

  36. Double Insurance Coverage • In case a member has double insurance coverage, only one benefit with a higher coverage will be paid in case of claim. Excess premium will be applied to renewal of coverage or refunded upon request in writing by the insured member.

  37. Applicability • Quarterly premium are applicable only for year 2012 during our transition period. Premium must be paid on or before the scheduled due to date to avoid termination of insurance coverage. • Members are required to fill-up and submit an Application Form

  38. Other Insurance Products Other Insurance Product Available: • Individual Life Insurance (Permanent and Endowment Plan) • Fire Insurance with Allied Perils coverage such as Typhoon, Flood, Earthquake, Robbery, Burglary and others • Motor Vehicle Insurance with coverage such as Typhoon, Flood, Earthquake, Landslide and others For your Insurance Protection and application form please see the MAF/MBA In-charge or any employee

  39. Savings Protection Plan (SPP) • Maximum share plus savings to be covered is P300,000.00 • Basic contribution of 1% of deposit up to the age of 70 years and 364 days. • On a member’s 71st birthday onward, reinsurance coverage shall cease. For this reason, the contribution shall be increased to 2.94 % of deposits covered.

  40. Savings Protection Plan (SPP) • “Bundak” deposit will be covered provided it will not be more than 10 times the average monthly deposit for six months or the maximum amount of coverage which ever is lower.

  41. Savings Protection Plan (SPP) • New & incoming member /depositor whose eligibility age for insurance is 55 to 63 years old will be subject to benefit settlement schedule based on years of membership after one year. • 5 years or less 50% • >5 years to 10 years 75% • >10 years 100%

  42. Savings Protection Plan (SPP) • New and incoming member/ depositor whose eligibility age for insurance is below 55 years old will be subject to ex-gratia settlement if death due occurs within one year from date of membership. Amt of Insured Deposit ------------------------- X # of days of membership = Benefit 365 days

  43. Savings Protection Plan (SPP) • Death due to suicide will not be compensable if it occurs within one (1) year from the effectivity date of insurance or reinstatement. • All eligible existing and incoming member/ depositor are required to participate in this plan.

  44. Savings Protection Plan (SPP) Schedule of Premium

  45. Savings Protection Plan (SPP) Schedule of Benefits Members Age 18 to 70 years old **Subject to policy provision

  46. Savings Protection Plan (SPP) Schedule of Benefits Members Age 71 years old and above

  47. Loan Protection Plan + (LPP+) Features of the Plan: • Group Credit Life Insurance(CLI) for eligible borrower; • Coverage includes Total and Permanent Disability(TPDB); • Additional benefit in case of Accidental Death and Dismemberment(AD&D) • Fire Insurance for loan Redemption Benefit (FI) for the residence of the borrower.

  48. Loan Protection Plan + (LPP+) Schedule of Premium:

  49. Loan Protection Plan + (LPP+) SCHEDULE OF BENEFITS:

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