Agenda Item #8
SUBJECT: Dues – Prepayment of Annual Dues (Article XI.B.4.)
STATEMENT OF QUESTION:
Should the 10% discount for prepayment of annual dues be reinstated?
SOURCE AND DATE SUBMITTED: International President – April 15, 2016
BACKGROUND INFORMATION:
This discount for annual dues was introduced at a time when interest rates were high and it made fiscal sense for the Union to collect dues on an annual basis. The 10% discount far exceeds the financial benefit to the Union and results in reduced resources available to provide representation to members.
Initially, this provision was inserted into the Constitution because it was fiscally advantageous to the Union to receive the dues moneys earlier. Given the current very low interest rates, it is no longer fiscally prudent to retain this provision.
The 2015 Board of Directors eliminated the 10% reduction with the proviso that the concept be reintroduced and voted upon as an advanced agenda item in 2016.
PROPOSED RESOLUTION:
WHEREAS, as a result of action of the 2015 Board of Directors, a significant savings was achieved by eliminating the 10% discount for prepayment of annual dues; and,
WHEREAS, the resolution in 2015 required that this provision be re-introduced as an advanced agenda item;
THEREFORE BE IT RESOLVED, Article XI.B.4. be reinstated as follows:
- Prepayment of Annual DuesAny member may pay dues annually in advance prior to July 1 of any year, instead of quarterly and a ten percent (10%) discount will be granted to such member on such annual prepaid amount.