What is Capital Credit smoothing?

In 2017, faced with forecasts of increasing margins, the Board approved a smoothing methodology for Capital Credits. Smoothing the annual general retirements produces a predictable schedule that will allow the Co-op to stay ahead of the 25-year retirement schedule, and avoid fluctuations in margins, cash and equity stemming from capital credits. For example, the Capital Credit distribution for 2022 included all of the retirements due for 1997 and a smaller percentage of those coming due for 1998.