Connecting Deeper

The mission of South Central Telephone Association, Inc., is to provide dependable and affordable telecommunications services using sound management and progressive technologies to its customers in south central Kansas, north central Oklahoma and in other areas where deemed beneficial to the members.

Capital Credits

Capital credits, also referred to as patronage, are one of the many benefits of your telephone cooperative association membership. Capital credits are the profits derived from furnishing telecommunication and information services to the members and any other profits allocated by the company. These amounts are allocated in proportion to the total amount of goods and services purchased by the member for that year. The company keeps a permanent record of these allocations on what is called a capital credit account for each member, where the allocated amount remains until it is retired. Capital credits are not a life insurance policy or an investment account, but instead a portion of equity within the company that is allocated to a specific member.

These capital credits are retired to the members in different ways. A general retirement is payment directly to a member of a percentage of the member’s total capital credits balance. The percentage is determined by the Board based on the financial needs and position of the company. The Board considers general retirements on an annual basis based upon the present financial condition of the company. An estate retirement is payment of a deceased member’s accrued capital credits to their personal representative or legal heirs. As directed in the company’s Bylaws, a corporation, political body, or other legal entity that is a member is treated the same as a natural person for purposes of capital credit allocation and retirement.