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Posted: December 4th, 2012
Erie Indemnity to share $94.7 million this month

Shareholders of Erie Indemnity Co. — like the shareholders at nearly 200 other American corporations — are getting a year-end gift this year: a special dividend.
The management arm of Erie Insurance Group is distributing about $94.7 million to its Class A and Class B shareholders on Dec. 21.
Erie Indemnity announced the special dividend on Nov. 19, when it also announced that its board of directors had approved an increase in the regular quarterly cash dividend, from 55.25 cents to 59.25 cents on each Class A share and from $82.875 to $88.875 on each Class B share. The regular dividend will be paid on Dec. 21 to shareholders of record as of the close of business on Dec. 7.
But the bigger payoff is the special dividend, which awards $2 on each Class A share and $300 on each Class B share. This special cash dividend will also be paid to shareholders of record as of the close of business on Dec. 7.
Corporations nationwide are offering special dividends and accelerating dividend distributions so shareholders can pay the current 15 percent tax rate and not the potential 39.6 percent rate that could kick in if the Bush-era tax cuts are allowed to expire next year.
But unlike many of those corporations, Erie Indemnity is not taking out corporate bonds to pay for the dividend, an Erie Indemnity spokeswoman said.

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