Věstník (Temple, Tex.), Vol. 85, No. 11, Ed. 1 Wednesday, March 12, 1997 Page: 4 of 28
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ASL**TAíV’*-—"VX* iDvA*
4/VĚSTNÍK—Wednesday, March 12,1997
cení, 7.4 percent, or 8 percent, dependihg or Corporation and (2) when the law
upon which type of certificate the mem- changes, SP1ST can lend up to a maxi-
ber has. Approximately 1,563 members mum of 85 percent of the property’s
háve borrowed some $1,874,947.53 appraised value or purchase price,
from the cash value of their certificates in whichever is lower Currently according
the form of certificate loans. to the law, fraternal benefit societies can
The members háve a combined total only lend a maximum of 75 percent of
of $42,412,739.08 deposited in our the appraised value for a reál estate loan.
Annuity í and Annuity II programs, The delegates had the foresight to autho-
which includes both IRA’s and NON- rize an increase in the amount that can be
IRAs. The federal govemment requires loaned when there is a change in reguía-
an annuitant to begin making with- tions without there having to be a refer-
drawals from their m^^uaammmmmiendum. The By-
IRA annuity during ' ~ __________ Committee rec-
the calendar year in ommended the
which they reach the ^Á fflPífííiPT Supreme Lodge
age 70 1/2. It is a investigate the possi-
constant challenge to Cílit t)QVYOZV bility of offering 30
the department to year mortgages.
notify those turning d2(liííSÍ JlÍS Of JlCY As of December
70 that a withdrawa! & B 31, 1996, the
needs to be consid- CCVŤtftCCltCf Society had 793
ered. During 1996 * J 2 jl.1 jl jlI mortgage loans on
there was a total of f)TOZ)títC(t títdT LítC íbe books with an
$2,963,067.25 with- ' , , « outstanding princi-
drawn from the CCTTtŤÍCCíŤB ft&S Cl . pal balance of
Annuity program. j y // $26,848.729.63. Of
We also háve a few CítSít Zt<lC* these loans, 23 were
members continuing past due more than
to také advantage of _ 90 days which is
.................i................ ]ess qlan 3 peiCCnt
the opportunity to
transfer their funds from the Annuity I
program into the Annuity II program
since the Annuity II program is currently
paying a higher rate of interest.
Investment Summary
As of December 31, 1996, the
Society’s total assets based on cash figuře
amounted to $117,623,812.28. This is an
increase of $5,788,032.00 over the
December 31, 1995, total asset figuře.
The following chart shows the distribu-
tion of the assets.
Cash
.36%
Bonds
73.08%
Mortgage Loans
22.83%
Certificate Loans
1.59%
Stock
1.24%
Reál Estate (including
Home Office)
.62%
Office Equipment
.28%
100.00%
Our bond portfolio is the Society’s sin-
gle largest asset. The bond portfolio is
made up of 265 different bonds which
háve a combined total book value of
$85,953,720.51 and a market value of
$86,010,385.00.
The percentage of funds invested in
each category is shown below:
U.S. Government
54.04%
Industrial
29.16%
Utilities
10.72%
Financial
4.63%
Transportation
1.45%
100.00%
These bonds are constantly being moni-
tored to insure that the issuing companies
continue to meet SPJST investment
guidelines.
During the XXVII SPJST Convention
our delegates passed several changes to
the mortgage loan program. These
changes became effective January 1,
1997. The two most dramatic changes
were (1) the Society can now lend a
maximum of $200,000.00 per individual
of the portfolio. During 1996, one piece
of property was foreclosed on by the
Society. This property and the property
foreclosed on in 1995 were sold during
the year of 1996. The two pieces of
property had a combined loss of
$7,027.91 and there had been a loss
reserve set up to cover the anticipated
losses on these properties.
Certificate loans to our members
account for $1,874,947.53 of total assets
and the remaining $1,463,541.33 is
invested in cash, the home office build-
ing, furniture and office equipment.
Our Society’s present investment poli-
cy is to invest in high quality stocks and
bonds; keep a portion of the assets liq-
uid; make well-secured mortgage loans;
and maintain a conservative policy con-
cerning the interest rate factors.
Service
As the Society continues to grow, the
need for quick and efficient response to
the local lodge officers and to the mem-
bership is a matter of greaí importance.
For the past 100 years SPJST has shown
pride in responding to our members
needs and in trying to anticipate their
future needs. The Home Office is able to
provide the quick response due to the
assistance we receive from the local
lodge officers.
In conciusion, I would like to thank
the delegates and aíl of the members for
supporting me at the 1996 Convention. I
would like to thank my staff, Dorothy
Tomášek, Daryl Entrop, Stephanie
Herring, Julie Wiseman, Ann Paruzinski,
Peggy Sue Pancake, and Ed Mokry, who
háve gone above and beyond the call of
duty to make the Secretary-TreasureCs
department run smoothly and see to it
that responses to our membership are
handled promptly and efficiently. Finally,
I would like to thank my family for giv-
ing me their continued support during
this past year.
Fraternaly,
Lanita Anglin
Secretary-Treasurer
—SPJST—
SPJST is rated A - (Excellent) by the A.M. Best Company.
This rating reflects the Best Company’s opinion
of our financial strength and operating performance.
FINANCIAL SECRETARY’S REPORT
Organizational Growth
Depends on Member Support
_ This is my report to the membership
for 1996 covering areas of my responsi-
bilities as per our By-Laws. These areas
include all accounting functions of our
Society. Our assets continue to show a
substantial increase. The SPJST has cer-
tainly remained stable and solvent. All
official figures are taken from the 1996
Annual Statement as submitted to the
Texas Department
of Insurance.
Financial
Statement
I am pleased to
report that in 1996
our assets increased
by approximately $6
million. Our liabili-
ties also increased
by approximately $5
million. Total assets
now amount to
approximately $119
million compared to
total liabilities of
approximately $95
million. Our net
gain from operations
(earned income)
amounted to approx-
imately $900,000
compared to the 1995 amount of approx-
imately $1,300,000. This amount
decreased largely due to increased death
claims and convention cost.
Our net investment ratio remained at
a high level of 6.60 percent which indi-
cates that all investmenís remain sound
and secure. I háve indicated the gain in
assets, gain in liabilities and net gain
from operations for the past 10 years.
Please review the Directors’ Report for
detaíled informa-
tion. All figures are
reported on an
accrual basis with
the exemption of
the Directors’
Report which is
reported on a cash
basis.
Supreme Lodge Financial Secretary
Jerry Mikuláš
percent of total certificates in force.
Please refer to the chart on page five for a
summary of this information.
Refund to Local Lodges
All refunds to local lodges were made
on February 5, 1997, for 1996. This
refund amounted to $169,050.00. Each
lodge received $1.00 per paid-up certifi-
cate and $8.50 per
prémium paying
certificate. Annuity
certificates were
eliminated.
It is very
important that new
insurance sales
increase so that
your lodge will con-
tinue to receive sig-
nificant refunds.
Your efforts to pro-
cure new members
will definiteiy
increase your
iodge’s check.
Leťs all pull togeth-
er to help our
SPJST Lodge grow.
Lodge Incentive
Program for 1996
The Lodge Incentive Program for 1996
proved to be very successful for all
lodges. Fifty lodges qualified for an
award which amounted to approximately
$36,000.00. Please refer to the chart on
page five for a summary of this informa-
tion.
Prémium Refund to
Individua! Certificate Holders
The prémium refund rate paid in 1996
was 3 percent of the
Direct Bili
As of this report,
I am pleased to
report that all lodges
háve been placed on
direct bili. This
direct bili project
was implemented in -
1985. All lodges
who háve converted háve indicated that
they are extremely pleased with the
results. I wish to thank all the past finan-
cial secretaries that háve made this pro-
ject a huge success. Your cooperation
was greatly appreciated.
Gains in Assets and Liabilities
Please refer to the chart on page five
for a ten-year summary of SPJST gains in
assets, liabilities and net gain from opera-
tions.
Top Fifteen Lodges by Insurance
The top fifteen lodges account for 54
percent of total insurance in force.
Please refer to the chart on page five for a
summary of this information.
Top Fifteen Lodges by Certificates
The top fifteen lodges account for 50
"I am pleased
to report
that in 1996
our assets
increased by
approximately
$6 million.
mid-terminal
reserve on all per-
manent life certifi-
cates. Each certifi-
cate holder has the
option to receive a
refund check each
year or convert this
refund to paid-up
insurance, better
known as paid-up
additions. Approx-
imately 67 percent
opted to receive
paid-up additions in
lieu of prémium
—refunds. We
increased life insur-
ance in force by approximately one mil-
lion dollars through the paid-up additions
program; otherwise, we would háve for-
warded over $457,000.00 in cash to our
certificate holders. The rate for 1997 will
once again be 3 percent. Certificates
issued under the 1980 CSO Mortality
Table will not be eligible.
Budget -1996
After comparing the 1996 actual fig-
ures (income and expense) with the 1996
budget, we found that income surpassed
the budget by 7 percent. Total expenses
exceeded the budget amount by 3 per-
cent. The Supreme Lodge has main-
tained a budget since 1990 and this bud-
get has proven to be a beneftcial asset to
our Society. The 1997 budget was pre-
sented and unanimously approved in our
recent Supreme Lodge Meeting.
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Vanicek, Brian. Věstník (Temple, Tex.), Vol. 85, No. 11, Ed. 1 Wednesday, March 12, 1997, newspaper, March 12, 1997; Temple, Texas. (https://texashistory.unt.edu/ark:/67531/metapth633325/m1/4/?q=music: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Slovanska Podporujici Jednota Statu Texas.