Each scenario may vary based on the member’s situation. If a change needs to be made to the membership name, Pioneer Communications requires legal documents to support the change. Please provide original documents. The original documents will be returned to you upon request. Please contact Pioneer Communication with any questions concerning your capital credit allocations [...]
NPVD is an acronym for Net Present Value Differential or Discount. This is the difference between the total amount of capital credits retired and the amount actually distributed by check or applied to your Pioneer Communications account. It represents the net present value discount amount for the time value of money retired. In other words, [...]
The Cooperative may specially retire capital credits when it receives proper written notification that a member or former member has died. Upon request from the appropriate representative of the member and receipt of the appropriate documentation, the Cooperative will pay the estate at a discounted rate, which is the Net Present Value Discount (NPVD.)
For residential service accounts, capital credits are generally not taxable. For businesses (which includes rentals), according to Internal Revenue Service guidelines, members receiving capital credits checks in excess of $600 are required to complete the IRS' Form W-9.
When capital credits are retired, meaning a check has been issued and mailed to the member’s address on record, the cooperative sometimes receives returned mail marked “undeliverable.” In the event that Pioneer Communications has unclaimed capital credits, a letter will be sent to the membership in an effort to locate those members with unclaimed capital [...]
No. Capital credits allocations are simply a record of your pro rata share of the margins. Since the capital is not held in an account and is reinvested to support the operations and growth of the business, the entire balance cannot be retired to you at once. There is no legal obligation imposed on the [...]
Allocated capital credits remain on the Pioneer Communications books in your name and account number until they are retired. Capital credit retirements (payments) are made years after capital credits have been allocated. Please notify Pioneer Communications of your new mailing address.
When my allocated capital credits are a negative amount, how does that affect my capital credits account balance?
A negative amount of capital credits allocated will decrease the amount in your capital credit account. Pioneer Communications uses margins (i.e. capital credits) to fund the operating activities and upgrades to your infrastructure and equipment. The negative capital credit allocation happens when expenses are more than the margins.
Each year the Pioneer Communications Board of Directors reviews the financial status of the cooperative to determine whether a refund is feasible and if so, how much. While capital credits are allocated every year, they are not automatically retired or refunded to the members every year. Pioneer Communications uses margins (i.e. capital credits) to fund [...]
Allocated Capital Credits are amounts entered on to the cooperative’s permanent financial records representing each member’s pro rata share of annual excess operating margins. Every year, Pioneer’s Board of Directors reviews the financial health of the cooperative and determines whether any previously allocated Capital Credits will be paid out to members. Capital Credits that are [...]