ANCHORAGE, Alaska Alaska USA FCU has ordered extra cash for its 34 in-state branches, made special staffing arrangements at branches and the call center, and double-checked its online capacity in preparation for annual payment of dividends from the Alaska Permanent Fund, about $215 million of which is expected to flow into the credit union’s coffers.
This year’s $576 million dividend, or $900 per person, will be paid to 593,000 Alaska residents, with the majority of it, 60%, being deposited in one of the state’s 12 credit unions. Alaska USA, which has a 37% share of the state’s depository market, will receive the largest chunk, by far, according to Dan McCue, senior vice president, corporate administration for the $5.3-billion credit union. The next highest market share belongs to Wells Fargo.
“We’re prepared for several days of action,” McCue told Credit Union Journal yesterday. That means processing electronic and paper payments, fielding call center inquiries about whether the deposits are made, and providing cash for the year’s biggest day for withdrawals. He conceded the popularization of electronic payments has reduced the size of what used to be long lines at the branches. “The lines at the branches are down, it’s not as congested.”
Most members will receive their payments by electronic debit, but a large number an estimated 86,000 residents, still prefer checks, requiring that Alaska USA and other credit unions maintain adequate staffing for Oct. 3’s dividend day and the days following. “We still make sure we have adequate cash,” said McCue. “Sometimes people just like to have cash.” He noted that small businesses in remote areas of Alaska still favor cash.
The dividends are distributed annually to residents who have lived in Alaska for at least one calendar year. Approximately two-thirds of residents are eligible. This year’s payment is slightly higher than last year’s $878 dividend. The highest annual payout was $2,069 in 2008.
