• FAQ File 01
• FAQ File 02
• FAQ File 03

Q. Is this a merger or a partnership?

A. Legally speaking, it is a merger. If we put it to a vote and our members approve it, it’ll mean that Squamish Credit Union will no longer be an independent entity. 

But our vision is to operate as a partnership, rather than be completely absorbed into Vancity.

 We think this can be a win-win for members, employees and the Squamish community.

Q. What do you mean by 'independent business unit'? How would that work?

A. We’d keep our local presence and brand in the community, and we’d keep our own elected board of directors that would continue to make decisions about how we operate in Squamish. 

Vancity members recently voted in favour of changes to their rules that will hold Vancity accountable for treating Squamish as an independent business unit.

Q. Why do we need a merger? Why can’t we just carry on as before?

A.  We're proud of our 60 years in Squamish as an independent credit union. But it's not easy. We face the same technological, administrative, research, and development expenses as a larger financial institution, but we have a much smaller base over which to spread those costs. 

Because of our size, we’re also limited in the range of products we can offer our retail and business members, making it tougher to match the pace of growth we’re seeing in the Squamish region.

A partnership merger with Vancity will enable us to grow along with our community while continuing to deliver the personalized service our members expect and deserve.

Q. Why Vancity and not some other credit unions such as North Shore?

A.  We have been approached by other credit unions in the past about merging, but this was the first offer to catch our attention.

The Vancity merger will enable us to preserve our autonomy (retain our brand name, our elected Board and local decision-making authority). This unique approach offers the benefits of a traditional merger without taking away from what makes Squamish Credit Union so special.

Vancity's strength will allow us to expand our products and services – especially lending – to meet the needs of our members. At the same time, we'll be able to benefit from spreading costs across a larger membership base. This means we'll be able to continue to meet your needs, even as they evolve.

Moreover, Squamish and Vancity share very similar values, in terms of how we treat our members, our employees and our communities.

Q. What are the benefits for Squamish members?

A. Squamish members will have a credit union that can meet their needs, even as the Squamish community continues to grow. Members will benefit from more products and services, and access to improved telephone and online banking 24 hours a day, 365 days per year. In time, Squamish members will be able to be served at any of Vancity's branches, and vice-versa.

Under the partnership model, Squamish members will have 'dual membership'; that is, they will be members of Vancity while holding special partnership shares in Squamish. Squamish members will have the rights and privileges of Vancity members. At the same time, they will continue to have a say in setting the direction of the Squamish operation specifically.

Q. Will any Squamish branches be closed because of this merger?

A. No, this is about growth, not about consolidation. We look forward to serving our members through our Downtown and Garibaldi Highlands branches.

Q. Will any employees lose their jobs because of this merger?

A. No. One of the benefits of the partnership merger is that it focuses on growth – not on cutting costs through job layoffs. There may be changes to some current jobs, depending on the needs of our organization under the partnership model. But every employee will be treated fairly and respectfully.

Squamish staff are excited about the career opportunities emerging from a merger with Vancity, which was named top employer in Canada for 2004 by Macleans magazine.

Q. SCU currently has $3.5 M in retained earnings. Will we lose that money when we merge with Vancity?

A. While Squamish members will share their $3.5 million in equity with Vancity as part of the merger, as members of Vancity, Squamish members will share ownership of a credit union with $440 million in equity. Our joint membership and resources will be put to use helping our fellow credit union members – just like it was 60 years ago when we started with $75.00.

Q. What's in it for Vancity?

A. A partnership merger would allow Vancity to enter a new market and provide SCU with better lending services in a way that is cost effective and likely more successful than coming in independently.

In addition, Vancity welcomes the opportunity to pair with a credit union, like Squamish, that already has in-depth understanding of and loyalty to the community. By pairing Vancity's resources with Squamish's strong brand and local knowledge, we can continue to compete as a vibrant alternative to the banks.

Q. Is this merger/partnership a done deal?

A. No, we're still in the very early stages of discussion. A joint steering committee with representatives from both organizations is developing a partnership merger proposal that would work in the best interest of both credit unions.   

Once there is a proposal that meets the approval of both organizations, it will be brought to a vote of Squamish's membership. This vote will take place on November 03 2005. In the meantime, there will be plenty of opportunities for Squamish's members, employees and the community to share their questions and concerns.

The final decision will be in the hands of Squamish members. But you can be sure that we won't bring a proposal to you unless we're confident that it's in the best interests of our members, our employees and our communities.

Q. Section 1 (d) of the Asset Transfer Agreement says that Squamish will cease to carry on business. What does this mean? Isn’t this supposed to be a partnership?

A. Legally speaking, this is still an acquisition (referred to as a merger). If Squamish members approve the merger proposal, “Squamish Credit Union” would cease to exist as an independent entity on the date the merger takes effect. But, members would not see any change in the level of service they receive or the staff who provide that service.

The partnership is created through a legal structure that would allow Squamish to operate as an independent business unit.

Q. You’ve mentioned that under a partnership merger, we’d keep our local name and presence in the community. But under Section 9 of the Asset Transfer Agreement, the name of the credit union is different. Can’t we keep it as “Squamish Credit Union”?

A. If members approve this merger, we could not legally continue to use the exact name “Squamish Credit Union” because it would no longer exist as an entity – Vancouver City Savings Credit Union (Vancity) would be the legal entity. The name “Squamish Credit Union” cannot continue.

Together, we would come up with a label that keeps the Squamish history front and centre while meeting our legal obligations. And we would continue to use Squamish’s “swirl” logo.

Q. Would I become a member of Vancity?

A. If members approve this merger, you’d become a member of Vancity and enjoy all of the rights and privileges of that membership. At the same time, you would also hold a special share in the Squamish operation that entitles you to have a meaningful say in decisions that affect the credit union in Squamish.

Q. Why do we need a merger? Why can’t we just carry on as before?

A. The Squamish-Lilloet Regional District has been the fastest growing region in the province for the past 20 years – and the pace of growth shows no signs of slowing down. At its present size, Squamish will be increasingly challenged to meet the needs of our members and this dynamic community. Partnering with Vancity would allow Squamish to better serve the community in the short-term and the long-term – while maintaining our identity and preserving local decision-making

Q. What are the benefits for Squamish members?

A. Members would benefit from more products and services, and a credit union that can grow to meet the pace of the community. In time, Squamish members would also be able to be served at any of Vancity’s 40-plus branches, and vice-versa.

Under the partnership model, Squamish members would have ‘dual membership’; that is, they would be members of Vancity while holding special partnership shares in Squamish. Squamish members would have the rights and privileges of Vancity members. At the same time, they would continue to have a say in setting the direction of the Squamish division specifically.

Q. Will any Squamish branches be closed because of this merger?

A. No, this is about growth, not about consolidation. We look forward to serving our members through our Downtown and Garibaldi Highlands branches.

Q. Will any employees lose employment because of this merger?

A. No. One of the benefits of the partnership merger is that it focuses on growth – not on cutting costs through job layoffs. There may be changes to some current jobs, depending on the needs of our organization under the partnership model. But every employee will be treated fairly and respectfully.

Squamish staff are excited about the career opportunities emerging from a merger with Vancity, which was named top employer in Canada for 2004 by Macleans magazine.

Q. What’s in it for Vancity?

A. A partnership merger would allow Vancity to enter a new market and provide Squamish with better services in a way that is cost effective and likely more successful than coming in independently. In addition, Vancity welcomes the opportunity to pair with a credit union, like Squamish, that already has in-depth understanding of, and loyalty to, the community. By pairing Vancity’s resources with Squamish’s strong brand and local knowledge, we can continue to compete as a vibrant alternative to the banks.

Q. Is this merger/partnership a done deal?

A. No – the final say belongs to you, our members. We require a two-thirds majority of voting members to approve this merger proposal. The vote is scheduled to take place on Thursday, November 3, at 7 pm (registration at 6:30 pm) – and we hope to see you there! We’re confident that this proposal is in the best interests of our members, our employees and our communities.

Q. If members approve the merger, when does it take effect?

A. If members approve the merger, it would likely take legal effect on December 31, 2005 – the date that Squamish’s assets would transfer to Vancity. From a practical perspective, it may take several months before you could be served at any Vancity branch, or before Vancity members could be served through the Squamish.

Q. Why has the name of our credit union changed

Once the merger takes effect, Squamish Credit Union no longer exists as an independent legal entity. For legal reasons, the name "Squamish Credit Union" can no longer be used.

Squamish management and your Partner Board have worked closely together to create a name that celebrates our heritage while complying with the legal requirements of the merger. In addition, we'll keep the distinctive 'swirl' logo front and centre.

Q. When will I become a Vancity member, and when will I be able to be served at any Vancity branch?

Legally, the merger between Squamish and Vancity took effect on December 31, 2005. Because Vancity and Squamish Savings operate with different technology platforms, we cannot share Squamish members' information and therefore, we cannot offer you complete service through Vancity's additional branch locations in Lower Mainland.

• However, are pleased to offer you the following limited services through the Vancity branch network:
• You will be able to cash cheques
• You will be able to make deposits to your Squamish accounts
• You will be able to make bill payments
• You may be able to make additional transactions (relevant information/paperwork will be sent to Squamish).
• Don't forget that you can perform Squamish transactions through Vancity's ATM machines, which are part of the Exchange network. You will not incur additional service fees for using these ATMs.
• Don't forget that you can perform Squamish transactions through Vancity's ATM machines, which are part of the Exchange network. You will not incur additional service fees for using these ATMs.

  Please be sure to have two pieces of acceptable ID to help the staff at Vancity to serve you and protect the security of your accounts.

  We look forward to offering you more convenient access to your Squamish Savings accounts when we've completed the technology conversion in mid-2006.

Q. When will I have access to other Vancity branches?

Members of Squamish Savings will have expanded access to Vancity branches after the technology conversion in mid-2006. In the meantime, Squamish Savings members will be able to perform some transactions through Vancity branches immediately (please see above). And don't forget: all Squamish Savings members currently have fee-free access to Vancity ATMs as part of the Exchange network.

Q. Will I have access to Vancity's 24-hour telephone banking service?

Access to Vancity's telephone banking service was not included in the partnership merger. In future, the management team at Squamish Savings may choose to access this service. For now, however, members will continue to have access to Squamish's telephone banking.

Q. Will I have access to Vancity's online banking service?

Members of Squamish Savings will continue to have access to Squamish Savings' online banking services.

Q. I'm a VANCITY member. When can I be served at one of the Squamish Savings branch locations?

Legally, the merger between Squamish and Vancity took effect on December 31, 2005. Because Vancity and Squamish operate with different technology platforms, we cannot share Vancity members' information and therefore, we cannot offer you complete service through Squamish Savings' existing locations.

However, we are pleased to offer Vancity members the following limited services through the Squamish Savings branches:

• You will be able to cash cheques
• You will be able to make deposits to your Vancity accounts
• You will be able to make bill payments
• You may be able to make additional transactions (relevant information/paperwork will be sent to Vancity).
• Don't forget that you can perform Vancity transactions through Squamish Savings' ATM machines, which are part of the Exchange network.

Please be sure to have two pieces of acceptable ID to help the staff at Squamish Savings serve you and protect the security of your accounts.

We look forward to offering you more convenient access to your Vancity accounts through the Squamish

Savings locations when we've completed the technology conversion in mid-2006.

During the transition period between the merger taking effect and the technology conversion, Squamish Savings members will continue to receive the same level of service at the existing Squamish Savings branches, as well as through Squamish Savings' online and telephone banking. At the same time, Squamish Savings members will be able to conduct some basic banking transactions at any of Vancity's 47 branches in the Lower Mainland, Greater Vancouver and Victoria.

Effective immediately, members of Squamish Savings will no longer pay additional transaction fees to use ATMs that are part of the Exchange network (this includes most credit union ATMs across the country, as well as HSBC and other select financial institutions). For more information about the Exchange Network, please visit www.the-exchange.ca

Q. During the transition period, will Squamish Savings continue to offer its current full range of products and services?

We are working to ensure that the Squamish Savings products will transition over to Vancity. This could mean some adjustments to what is currently available, but we expect the impact will be minimal, as both credit unions offer very similar products today.

During the transition period, we may decide to discontinue the sale of products that are not popular with Squamish Savings members but again, we expect this impact to be minimal and we will inform you well of advance of any such decisions.

Q. Will Squamish Savings be able to offer mortgages and other credit products during the transition period?

Squamish Savings will continue to offer a full range of lending products during the transition period.

Q. Will my account numbers change?

Your account number will not change as a result of the merger.

Q. Will I have to order new cheques?

For now, your existing Squamish Credit Union cheques will be valid. If you order replacement cheques, they will have the new name on them (Squamish Savings, a division of Vancity).

Squamish members will need new Squamish Savings cheques after the technology conversion that happens in mid-2006. We will be pleased to provide a complimentary initial set of Squamish Savings cheques for members to use after the banking platforms have been changed.

To minimize inconvenience, we'll continue to honour Squamish Credit Union cheques for three months after the technology conversion.

You will receive more information about the technology conversion in the months to come.

Q. Will I need a new MemberCard?

For now, your existing MemberCard will be valid. If you require a replacement card, you will receive one with the Squamish Savings name on it.

When the Squamish Savings' technology platform is converted to Vancity's technology platform in mid 2006, we will be issuing new MemberCards to current card holders.

You will receive more information about the technology conversion in the months to come and we will be sure to give plenty of notice of any changes that will affect you.

Q. What will happen to my direct payroll deposit and pre-authorized payments for BC Hydro, etc?

Because your account is not changing, your direct deposits, automatic transfers and pre-authorized payments will be processed as usual.

One of our jobs during the transition period will be to identify and re-route any automatic deposits or payments that may be impacted by the technology conversion, to minimize any disruptions to these services.

We will contact you well in advance of the technology conversion if you need to do anything in order to update your pre-authorized transactions.

Q. I have given out a series of post-dated Squamish Credit Union cheques for the year ahead. Do we have to change those?

Your existing Squamish cheques will continue to work up to the banking system conversion (which will happen in mid-2006) and for three months afterward. After conversion, we do recommend that you begin to use your new Squamish Savings cheques. You'll receive a complimentary set of Squamish Savings cheques for your use after conversion.

We will give you additional information about the technology conversion in the months to come.

Q. As a senior, I do not currently pay any service charges for my banking or for traveller's cheques. What will happen now that I'm becoming a Vancity member?

During this transition period, you will continue to enjoy the benefits of your Senior Membership with Squamish.

We expect minimal, if any, changes to the features and benefits of your Senior membership in the future, and will advise you well in advance.

Q. Will I be able to keep my current hold and limits on my future Squamish Savings Member Card?

At the time of the technology conversion and replacement of the Squamish Credit Union MemberCard with a Squamish Savings MemberCard, we will honour all hold and limit exceptions that already exist. After this date, exceptions will be at the discretion of Squamish Savings staff.

Q. When will I receive my bank statement? What is the cycle date for my bank statement?

At this point, we're still looking into the impact of the transition on the timing of Squamish members' banking statements. We'll advise you as soon as we know what will happen with your bank statements.

Q. Will I be able to keep my MasterCard?

Financial institutions in Canada can only issue either a MasterCard or a VISA card product. Because Vancity is a VISA card offering institution and we are now a part of the Vancity group of companies, we cannot continue to offer or support MasterCard products.

Because Squamish Savings' current MasterCard products are administered through CUETS (Credit Union Electronic Transaction Systems), Squamish MasterCard holders can retain their card and receive support directly from CUETS. You will be able to continue to use your Squamish MasterCard without disruption.

In future, Squamish members may wish to explore the VISA credit card products offered through the Vancity group of companies. This includes my VISA RewardsPlus program, in which cardholders accumulate points that can be redeemed for a wide range of rewards, including travel, merchandise and financial products (such as an RRSP contribution). Cardholders can even donate their points towards the registered charitable organization of their choice through the Vancity Community Foundation.

Information and applications for VISA card products will be available in Squamish Savings locations in the future.

Q. Will service charges change?

We're currently reviewing differences between the service charge structure at Squamish Savings and Vancity.. We've identified instances where Vancity's service charges are lower than those for Squamish. We'll be adjusting Squamish Savings' packages within the next month, so that members can take immediate advantage of the savings.

In future, there may be some minor changes to account packages. At the time of the technology conversion, your account will be converted to the option that best matches your current package. There will be specific communication regarding the key differences that you may find.

Overall, the pricing of monthly package fees, transaction fees and miscellaneous charges is very similar. Members wishing to make adjustments can receive branch assistance in choosing an account package to minimize service charges.

Q. What happens to the trusteeship for my RSPs, RIFs and RESPs?

At present, Credit Union Central of BC is the Trustee for Squamish members' RRSPs and/or RRIFs. This trusteeship will be transferred over to Vancity as part of the transition later this year. Vancity will advise members in writing of the change of trustee; members will not be required to do anything.

Because RESPs are also administered through Credit Union Central of BC, there will be no impact on members.

Q. Will I receive tax receipts for interest earned or any RRSP contributions I've made?

Yes. You will receive tax receipts that cover the 2005 period from “Squamish Credit Union”. To avoid confusion and misplacement of receipts, all tax receipts will be sent to members during the first two months of 2006, as is accepted practice.

Contributions to RRSPs in the first 60 days of 2006 will still be issued by your branch.

Q. Will there be a change to the insurance coverage on my deposits with Squamish Savings?

No. All credit unions in the province have the same members' deposit insurance coverage with the Credit Union Deposit Insurance Corporation (CUDIC) of British Columbia. This coverage is outlined in a CUDIC brochure entitled, ‘Your Guide to BC Credit Union Deposit Insurance’. This brochure is available in our branches or online at http://www.fic.gov.bc.ca/responsibilities/cudic/consumerinformation.htm.

Q. What happens to my insurance coverage if I am also a member of Vancity Credit Union?

Separate deposits prior to the merger will retain separate deposit insurance for five years following the merger, until the money is withdrawn or at term maturity, whichever is earlier.

In other words, a separate deposit from one credit union which is the same type as a separate deposit from the other credit union will not be combined, as they would otherwise be. For more information on this topic, please refer to the following web site for a Bulletin issued by the Financial Institutions Commission (FICOM): http://www.fic.gov.bc.ca/pdfreports/cu/cu%2D1997%2D001.pdf

Q. What is the Squamish Partner Equity Share?

In late January, we sent you a Squamish Savings Partner Equity Share certificate. This share recognizes your special status as a member of Squamish Savings, a division of Vancity. It also entitles you to help set the direction of Squamish Savings, through participating in the Partner Meeting and electing a Partner Board.

Q. What is the par value of a Squamish Partner Equity Share?

One penny. The value of the share does not lie in its monetary value; it confirms the unique status of Squamish Savings as a division of Vancity. This share gives Squamish Savings members the right to participate in the Partner Meeting and elect a Partner Board.

Q. Can I purchase additional Squamish Partner Equity Shares?

No

Q. What additional products and services will be available to Squamish Savings members and when?

The management team at Squamish Savings is in the process of identifying which Vancity products and services will be available at Squamish Savings. For the most part, these products will be made available after the technology conversion has taken place in mid-2006. We'll keep you informed of any changes through the member newsletter, our website and and through our branches.

Q. Will the credit experience I currently have with Squamish be recognized by Vancity?

Your credit requests will continue to be approved by Squamish Savings, therefore there will be no change.

Q. Will my loan arrangements change now or in the future?

We are pleased to honour the terms of Squamish members' current lending arrangements for the period covered under the lending agreement. Upon expiry, members will have the option of renegotiating the loan with Squamish Savings.

Q. What will happen to my loan insurance?

Vancity offers loan insurance from a different provider than Squamish. We are currently investigating the impact of the merger on loan insurance and do not anticipate significant changes, as both insurance providers offer similar products.

Q. What will happen to my existing Squamish products and services?

Both credit unions offer very similar products today, but there may be some minor changes to existing products and services.In the unlikely event that there is not a comparable product, we will honour the terms and features of the Squamish product for the remainder of the term and then work with you to identify an appropriate Squamish Savings product at that time.

Q. Will Vancity honour the rates of return on my Squamish investments (term deposits)?

Yes. Squamish Savings will continue to hold responsibility for setting prices of their array of products and services. Upon expiry, you'll be able to discuss your investment needs and options with the knowledgeable team at Squamish Savings.

Q. Where can I go with my questions/comments about the merger transition?

Please continue to visit this page for up-to-date information about the merger transition. Our FAQ page provides answers to frequently asked questions. You can also visit your local branch or email us at partnershipquestions@squamishcu.com

Q. I hold a joint account. Do both members on the account receive a Partner Equity Share?

No. Only the first named member on the joint account may vote.

Q. Will I earn a rate of return on the Squamish Partner Equity Shares?

Normally, any dividends paid will be declared and paid by Vancity based on the Member Equity Shares held at Vancity.

Q. Do all Vancity members receive a Squamish Partner Equity Share?

No. Only members of Squamish Savings will receive a Partner Equity Share.

Q. What happened to my Squamish Credit Union Membership Equity Shares?

On December 31, your Squamish Membership Equity Shares were exchanged for an equal number of Vancity Equity Shares; this is reflected on your statement. For the few members who still had Squamish Credit Union Non-Equity Shares, those were converted to Vancity (Non-Equity) Savings Shares.

Q. Will I receive dividends on my Vancity Membership Equity Shares?

Yes