Our credit unions continuously look for ways to increase the value we provide to members, employees, and local communities while effectively and efficiently managing our operations. East Coast and Provincial Government Employees have worked together for several years – serving members from our shared branch in downtown Halifax. Exploring a merger builds on our partnership and will enable us to take advantage of new opportunities. The board believes there could be significant value gained from a potential amalgamation for staff and members. Creating a business case to explore the opportunity further is the next step.

A decision will be made after the business case is completed which we expect to happen in September 2024. If both boards approve the business case, the credit unions will seek approval from the membership and the regulator.

The name of the credit union will be East Coast Credit Union. Provincial Government Employees will become a division of East Coast and the unique programs such as payroll deduction, orientation and retirement seminars will continue to be offered. There will be no changes to the branch located in Downtown Halifax which serves members from both credit unions.

Both East Coast Credit Union and Provincial Government Employees Credit Union are financially strong. This merger demonstrates the shared goal of looking for opportunities to increase the value we provide to members, employees, and local communities while effectively and efficiently managing operations.

We see only positive benefits for members. Together, we will be able to provide better service with an expanded product portfolio, digital services, enhanced member support, and more competitive rates and fees. PGECU members will also gain access to services from East Coast’s network of 20 locations, including a digital branch, in communities across Nova Scotia.

The business case is expected to be completed in Summer 2024. If approved by both boards, the proposed amalgamation will be recommended to members who will be asked to vote on the amalgamation in the fall. Following a successful member vote, the new entity could come into effect in January 2025.

Provincial Government Employees Credit Union (PGECU) is an independent, member-owned and board governed credit union. It was created in 1937 for the sole purpose of providing a cooperative banking option for individuals employed by the provincial government.

While it was formed to serve provincial government employees, it is not a government-run organization. The management and staff work for the credit union. Like all credit unions in Nova Scotia, PGECU’s operations comply with all statutory and regulatory requirements and policies including the provincial Credit Union Act, regulations and directives issued by the provincial regulator, the credit union’s by-laws and board and management policies.

If approved, the merger will not create any new reporting relationships for East Coast Credit Union – East Coast remains a member-owned, Board governed credit union.

A unique aspect of this merger is we are creating a new Division.

The Provincial Government Employees Division will help East Coast maintain the relationship with the Provincial Government and the related services that currently exist for members of the Provincial Government Employees Credit Union. These services include such things as savings plans through payroll deduction, employee financial planning and retirement seminars. Creating a division also helps East Coast Credit Union maintain access to the public service employees for future campaigns and programs.

To support the creation of this Division and merger transition, an Advisory Committee will be formed. This committee will include representatives from the current PGECU Board and will work directly with East Coast’s Senior Management.

From a branding perspective, all member-facing products and services will be identified as East Coast Credit Union. The Division will be focused on marketing initiatives that directly relate to the unique services available to PGECU today and any future programs that might be developed.

The Downtown Halifax Branch will be known as East Coast Credit Union’s Downtown Halifax branch. It will also be the address for the Provincial Government Employees Division.

Both credit unions will be holding Special Meetings of Members on November 4. The sole purpose for these meetings is to table the Board resolution that recommends members approve the merger. To be approved, a minimum of 2/3 of the voting members must vote in support.

For members of PGECU, voting will take place at their Special Meeting of Members. To vote, members must attend in person. East Coast Credit Union members will have the opportunity to vote electronically on November 4.

For Provincial Government Employees Credit Union, voting electronically is not an available option as defined in their Bylaws.

If approved, the two credit unions will merge on January 1. It will be business as usual for all members. There will be no immediate changes to our banking systems and members will continue to access their accounts as they do today. Our priority will be to minimize member change and disruption, and we will advise members regularly as we work through the process to integrate our operations, systems and services.

The inaugural Board for the merged credit union is comprised of 13 directors that are currently serving on the East Coast Board.

In addition to the Board, an Advisory Committee is also being established to support the creation of the Provincial Government Employees Division. This committee will be comprised of 2-3 current directors from the Provincial Government Employees Credit Union. The Advisory Committee will report to East Coast CU’s management.