Members to get payout based on balances

MEMBERS, employees and pensioners of the Bristol & west Building Society will get minimum cash payments of £250 each on the takeover of the society by Bank of Ireland. The maximum payments to individual members is expected to be about £1,000.

Under the terms of the deal, must be approved by building society members and bank shareholders, the size of the payments to members will be based on the balance in their accounts. The full details of payouts to the members have to be approved by the Building Societies Commission.

Savers who have had share accounts since December 31st 1994, and had £100 or more in that account at opening time yesterday will get a fixed cash payment of £500. In addition they will a variable cash payment.

This variable payment will be based on the lower of the aggregate amount in all their qualifying accounts at dates which have yet to be decided. The maximum savings taken into account to calculate this payment will be £100,000.

Share account holders who have had their accounts for two years but had less than £100 in their accounts yesterday will get an opportunity to top their accounts so that they qualify for a fixed cash payment of at least £250.

They have until December 31st 1996 to top up their accounts. But these members will not get any variable cash payment. Share account holders who have had their accounts for less than the two year qualifying period and whose balance yesterday was under £100 will be able to top up their accounts to qualify for shares in Bristol & West plc worth at least £250.

Bristol & West plc is the new company which Bank of Ireland will set up to take over the business of the building society. Eligible borrowing members (mortgage holders) will get shares in the new Bank of Ireland subsidiary, Bristol & West plc, to the value of at least £250.

Qualifying employees and pensioners will get a fixed distribution of £250 in cash - they qualify if they have been employed or pensioners throughout 1996 and until the completion date of the transaction. Members of Bristol & West who are not eligible to vote in the meeting to decided the future of the society - mainly those with less than £100 in their accounts on the qualifying shareholding date which is expected to be December 31st 1996 - and minors - will get cash payments.