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TMECU & Alterna Merger FAQ

TMECU is in formal discussions to pursue a merger with Alterna Savings and Credit Union (Alterna).

About Alterna Savings and Credit Union

Alterna was originally a federal civil service credit union which expanded into other Toronto communities and are now located all over the province. There are 32 branches, 9 of which are located in the GTA. Alterna has a history of being deeply involved in the community.  They are an Imagine Canada Caring Company, providing a minimum 2% of their pre-tax profits to the communities they serve.

Why Merge with Alterna?

TMECU and Alterna are both financially strong organizations. This merger will allow TMECU to enhance products and services offered to members while ensuring growth and stability for the credit union. TMECU cares deeply for our members and will continue to work towards improving our members’ financial lives. The past 3 years have overall been the strongest in the history of TMECU.  We were not compelled to make this decision.  Management and the Board of Directors  deeply reflected on all alternatives and know that merging with Alterna is the best choice for the long-term  success of its members.

When is the merger taking place?

The merger is expected to close on or before December 1st, 2018. There will be several steps beforehand, one of which will be a Special Membership Meeting for TMECU members to vote on the merger.

How will this merger benefit members (me)?

Alterna is a larger organization with economies of scale and the systems in place to better accommodate members’ needs. TMECU has done a great job at providing members with fair and competitive financial services, however our ability to deliver the same pricing and service levels well into the future would be hampered without the growth and opportunities projected in this merger. The credit union will have a greater voice and play a more active role within the community as leaders and provide stronger support members.

Tangible Benefits to Members

  • In-depth investment and retirement planning services
  • Full-service brokerage services
  • Substantially larger loan/mortgage amounts available with more competitive rates
  • Business banking solutions
  • Greater choice of investment options (including U.S. dollar)
  • Better variety on pricing options on products and services
  • Alterna has 33 branch locations across Ontario, 9 branches in the GTA

What changes are expected to occur for the Credit Union?

This merger is expected to provide an overall improvement in the following areas:

  • Services to Members – More variety of services like financial planning.
  • Depth of Staffing – Opportunity to bring in more specialized staff for members needs.
  • Career Opportunities for Staff – Opportunities to move to different locations or to stay at current location.
  • Enhanced Presence in our Communities – Alterna cares about communities and wants to help TMECU increase its presence in our communities.
  • Long-term Stability and Viability – Backed by a strong credit union system, TMECU will be able to continue to grow and prosper for many years to come.
  • Future Increased / Improved Technology for Ease of Access – Alterna is a champion in the credit union industry for technology adoption.

What will happen to TMECU staff?

There will be no job loss as a result of the merger. The two branches will remain open. Staff will have access to new job opportunities and may, if they wish move to another branch within Alterna’s 33 branch network. Staff can also further their education to better serve our members.

Do members have a say in the process?

  • Yes, members will have the final say in whether the merger is approved at a Special Membership Meeting held in Fall of 2018 prior to the planned December 1st, 2018 official closing date.
  • Actual date of the Special Membership Meeting for TMECU will be announced soon. Notice will be posted online and on your statements.

Will the merger change any current products or services I have with TMECU?

TMECU members can look forward to enhancements and a greater number of services added to the current product and service line. Services like micro-loans, in-depth financial planning and wealth management are a few examples of services to look forward to. Details about specific products and services will be made available to members, our goal is to be as unobtrusive to members as possible with this merger.

Will Service charges increase?

Alterna’s suite of products are very comparable with TMECU’s products. They offer a variety of chequing accounts, senior discounts, and various investment and lending options. As a larger organization, Alterna offers great rates, reasonable service charges and a large variety of additional services our members will benefit from.

 

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