Our Catholic Journey April 2012 by Forum Communications Printing

Official Publication of Catholic United Financial

Happy Easter!

Our Journey Catholic March/April 2012 Vol. 117 Issue 2

$611,290

raised for Catholic schools! Raffle results p. 12

+ + +

2011 Annual Reports

Foundation Annual Report Fraternal Year in Review

From the President

he spring of the year always brings excitement and change. With the unseasonably warm winter we’ve had, we have been spoiled a bit as the season changes. Today I am sitting at my computer (they made me get rid of my typewriter) and I can see the tops of the trees starting to blossom and turn. It is an exciting time as our minds fill with promise of another great year. I think this is why Midwesterners stay put; the seasonal contrasts invigorate our senses and remind us of our Lord’s presence at every turn. This Journey magazine is packed with exciting news of the past year and full of anticipation for things to come. Let’s take a quick glance at our most recent past. You’ll see as you review our Annual Statement numbers that it was quite a year. We grew in so many significant ways. Of course our merger with AFU had an impact. The merger took place at the beginning of the fourth Quarter and brought assets and new members to our organization. Many fine members who we are proud to say are now members of our great Society. As you analyze this year’s report, you’ll see growth in sales, assets, fraternal spending and most importantly in membership. Besides the addition of AFU members, we were able to grow nicely from our foundational membership. There is no better measurement of future survival and relevance to our Association than membership growth. Thank you to all who submitted referrals and to our home office and field staff for a job well done. The raffle. Wow! What a story! Three years and more than $1,000,000. I think it would be fair to say that this is the most significant effort and gift in support of Catholic schools that has come along in decades. To take an idea and grow it from a goal of raising $50,000 in our first year to reaching $611,000 just three years later is a dream come true. We will stretch for $750,000 next year and I feel confident that a million is just around the corner. The buzz and excitement in these schools were over the top. Our biggest problem has become finding a barrel big enough to hold all of next year’s tickets! When you throw in the millions of dollars

March/April 2012

of Matching Grant money our local councils have raised over the years, we truly have and will continue to have an impressive impact on Catholic education in the Midwest. A big hats off to all who were involved. Now let’s spend a little time discussing the future of Catholic United Financial. As I am sure you are aware by now, this is my last year as President and Chairman of the Board. I will complete my 15th full year on December 31 this year. The task of finding a replacement is currently underway. There have been many applicants and our vetting process is in progress. The selection committee (made up of the Board of Directors) will pass the names of the most qualified applicants to the Nominating Committee (four members elected at last year’s convention, plus three members of the Board). The Nominating Committee will conduct two rounds of interviews and investigate the candidates’ qualifications. Our constitution states that nominees must announce their intention to run by June 1st, so we will aim to have our selection by the May Board meeting. This process has worked well in the past and leaves little to chance in terms of finding a capable and qualified nominee. Finally, we have another extremely important task to complete this summer at our Convention. Two great board members will be leaving us this year, former Lead Director Fran Barton and current Lead Director Deb Pauly. Both have served us with distinction over these many years, and because of term limits, their time on the Board will expire at the end of the year. A successful future for Catholic Untied Financial is predicated on great leadership at all levels from the local councils to the Board of Directors. The two new members we select this year carry a heavy responsibility as they move forward for many years to come. If you feel you are qualified to serve on a Board of an organization that has more than $735,000,000 in assets and 84,000 members, and have an unshakable dedication to our Catholic Faith, it may be your time to answer the call. If not you, then maybe a friend or relative would be a great candidate. To apply, you must be an adult member for at least 2 years, and apply in writing to my office on or before June 1 of this year. Think about it. The Lord opens many doors in our lives; maybe this is one of yours. May the Lord bless you in every way,

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AFU Member Disclaimer

Catholic United Financial is not licensed in all states. Nothing contained herein should be construed as a solicitation for insurance, financial products or annuity products in any state in which Catholic United Financial is not licensed. Catholic United Financial is licensed to sell insurance in Minnesota, Wisconsin, Iowa, North Dakota and South Dakota.

Contents Features

6 10 5

Assets

$735,583,519

2011 in Review

The fourth year of the Great Recession struck only a glancing blow to Catholic United in 2011, as we continue to grow through the economic turmoil.

Looking Ahead

The Catholic United Financial Foundationâ&#x20AC;&#x2122;s new executive director recaps 2011 and shares a vision of the future for Catholic Unitedâ&#x20AC;&#x2122;s Foundation.

And We Have a Winner!

No one was sure whether the Annual Catholic Schools Raffle would reach its goal of $500,000 this year. Did it? Find out on page 12!

Departments

9 16

Sales Award Winners

Our dedicated field staff journeyed to Minneapolis for the annual Winter Conference and awards banquet.

Keys to Your Kingdom

Estate planning advice from our estate planning guru, John Tetzloff.

Sections

4 12 On the Cover Photo of Speltz Family by Bob Pearle, background photo from www.istockphoto.com.

Happy Easter from Catholic United Financial! On the cover of this this issue are members Tom and Cindy Speltz of Roseville, Minn., with their grandchildren Leo, Ellie, Rebecca and Ronin.

Official Publication of Catholic United Financial

Our Journey Catholic March/April 2012

Read news tidbits and see member photos.

Memorials/Anniversaries In memory and in celebration.

Fraternal

JOIN HANDS DAY is just around the corner on May 5, see what some of our councils did in 2011.

Vol. 117 Issue 2

$611,290

raised for Catholic schools! Raffle results p. 12

2011 Annual Reports

+ Foundation Annual Report + Fraternal Year in Review

SFI-00574

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Scrapbook

Catholic United Financial President/Chairman Michael F. McGovern, Northfield Senior Vice President and Secretary/Treasurer Harald Borrmann, St. Paul Board of Directors Lead Director Frances M. Barten, Union Hill; George Gmach, Rogers; Joseph F. Kueppers, Mendota Heights; John W. Maile, Cold Spring; Deborah M. Pauly, Jordan; Robert Krattenmaker, New London; Michael Schmitz, Mankato Magazine Staff: Publisher Michael F. McGovern Editor Jared Roddy Staff Susan Detlefsen, Michelle Clark Director of Marketing Steve Wendorf Office of Publication: Catholic United Financial, 3499 Lexington Ave. N., St. Paul, MN 551268098; 651-490-0170 or 1-800-568-6670. Postmaster: Send change of address notice to above. Periodicals postage paid at St. Paul, MN and other locations. Subscription price is 50 cents a year. Official Publication of Catholic United Financial. Published bimonthly. Publication No. 093500

March/April 2012

Scrapbook

Pocket full of posies...join hands day in Wabeno, Wis. With JOIN HANDS DAY coming up on May 5, and newly submitted photos from 2011 piling up around the Journey offices, let’s take a trip back in time! St. Ambrose Council of Wabeno, Wis., joined hands across their community to celebrate Mother’s Day last year. Girl Scout Troop #7088 and the St. Leonard’s Church Men’s Group teamed up with the St. Ambrose Council to pass out carnations (not posies) to all the mothers after Mass on Sunday, May 8,2011. The men’s group and St. Ambrose Council also helped give mothers throughout the community a break by serving breakfast to about 120 people that morning at the parish hall.

New Members Bring Spring R.E.New-al Thanks to Catholic United’s revamped R.E.New Program for Catholic Religious Education, money has been flowing into schools and religious education programs every time a new member purchases a qualifying life insurance product (almost all life products qualify). Left: Sales Rep Butch Byers presented the very first R.E.New Fund check of $150 to Sr. Louise Marie of St. Benedict Church in Yankton, S.D., in January. Sr. Louise Marie said for schools like hers, every single dollar makes a significant impact. At right: Sales Rep Dean Warta delivered a $50 check to Mary Gangelhoff of St. Mary’s school in Sleepy Eye, Minn. Since October 2011, more than $7,300 has been donated to religious education through Catholic United’s R.E.New program.

Buzz from New Ulm:

Quilters are the Bee’s Knees! After a mission trip to Guatemala, where she saw doctors for the Foundation for Saving Sight in action in 2009, member Ann Wendinger vowed to make a difference when she returned. Recently hearing that the Foundation was in need of a new piece of equipment, she and her friends organized a quilting bee to raise the funds. On January 21, 48 quilters (and eight in reserve!) paid $45 each to sew all day. There was an on-site quilt show selling the wares and a silent auction, which, when combined with matching funds and donations, brought in $5,997.67! “We had just a fantastic turnout and we will be doing it annually,” Ann Wendinger said. “Everyone had so much fun, we could have charged double!” Pictured below, Alice Forst, Ann Wendinger, Cindy Wendinger and Jackie Forst. Sewers sewing, and an example of the some of the quilters’ handiwork.

If you wish to run for an open Board Member position, you must announce your candidacy in writing no later than June 1! 4

March/April 2012

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How to Contact your Sales Representative: Look on the back cover of this magazine. Your Sales Representative’s name and contact information should be listed with yours. Or, visit www.catholicunitedfinancial.org, or call 1-800-568-6670.

Aloysius Exceptionalism February 12, 2012, was a day members of the St. Aloysius Council in Elba, Minn., set aside to say thank you to their officers. Why would they want to do that? Well, because the officers in Elba have been working their fingers to the bone with events and projects to help one and all. During the event, members put together a slide show of all the work St. Aloysius had done over the past year. Matching grant fundraisers, member assistance benefits, military care package parties (right), a hunger banquet, cemetery cleanup, volunteering at the Dorothy Day House (below right) and making Easter Baskets (below left.) And that’s just a sampling! Keep up the great work, St. Aloysius council!

Pope visits retired priest

Big check for little town

Strasburg, N.D.

Just because there are only 439 residents in Strasburg, N.D., doesn’t mean they can’t raise big money for Catholic education. Sales Rep Victor Friesz recently delivered a matching grant check of $1,000 for the religious education program at SS Peter and Paul Parish, benefiting students in Strasburg and Hague, N.D. Pictured above, Sales Rep Victor Friesz, SS Peter & Paul pastor Fr. Paul Eberle, St. Mary’s President Ramona Reis, Vice President Veronica Glass and Treasurer Betty Hanson.

Globetrotting Rep racks up miles Sales Rep Dan Markell is no stranger to the open road, delivering checks, policies and his own expertise all across western Minnesota.

Below left: Cindy Cunningham and Fr. Gerald Kosse of St. Leo Parish in Pipestone, Minn., receive a Ministree check for volunteer work performed in 2011. Below right: Luke Nibbe, of Lake Benton, Minn., walks the Pope through the finer points of operating a John Deere combine.

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There’s Always Something to Celebrate in St. Charles

Fraternal Secretary Diane LeClair of the St. Isidore Council in St. Charles, Minn., reports with photos from a busy year. Bowling and pizza parties, Springfest (upper right) and the Gladiola Days Parade Float complete with Polka Band! Keep having fun, guys!

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2011

Annual Report

e are pleased to present for your review the 2011 Financial Report for Catholic United Financial. This report represents our combined results after our merger with the American Fraternal Union (AFU) on October 1, 2011. As a result of the merger, as well as the continuing growth of Catholic United’s direct business, the Association achieved alltime highs in several categories: • Assets - $735.6 million • Policy Reserves – $699.4 million • Premiums - $56.4 million • Insurance In Force – $2.025 billion • Fraternal Expenditures – $2.1 million Let’s look at some specifics...

500

800

$ Millions of Annuities In Force $397.6

400 $296.1 300 $286.4

$314.8

$426.7

700 600

$351.2

$ Millions in Assets

$538.9 $558.9

$581.8

$625.9

$693.1

$735.6

500 400

200

300 200

100 0 2006 0 2006

100

2007 2007

March/April 2012

100

2008 2008

2009 2009

2010 2010

2011 2011

0 2006 0 2006 100 200

2007 2007

2008 2008

2009 2009

2010 2010

2011 2011

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In many ways, growing our assets represents one of our Association’s more important tasks. As you can see, our assets grew nicely. Even if you factor out the increase due to the merger, the asset base grew meaningfully; this continues a decades-long trend and is a very real sign of our growth and strength. Unlike many commercial insurance companies that, like us, invest primarily in bonds, we did not need to impair (i.e., “write down”) the value of any of our bonds in 2011. Similarly, we did not have to foreclose on any mortgages during 2011. The combination of these two actions that we didn’t have to take is a good sign of the conservative values and underlying strength of our investments. We purchase assets for the long term, and do not look for opportunistic, short-term gains. Simply put, when we invest our members’ funds, we do so cognizant of our tremendous responsibility for their long-term security. One tool we have added to our investment arsenal is a new relationship with Wellington Management; we are working with Wellington, along with several other Catholic fraternal insurers, because they help provide us with additional guidance, support and resources to manage our investments as

2.5

prudently as possible. Management feels this relationship will only enhance the great results we have been able to obtain over the years. Equally important is our life insurance in force. For the last several years, we have been able to report increases in our insurance in force. This metric is the single best way for us to measure how our policies are perceived by our members. When someone is not pleased with the performance of their policies, they will not keep them in force. Happily, the growth of our insurance in force continues at a steady rate and is now an all-time record. We are more than $2.0 billion, including AFU, and just under $2.0 billion on a stand-alone basis. This is you – our member – telling us that you like our life insurance products. Did we make money running our Association last year? The answer is “Yes!” We posted a Net Operating Gain from Operations of $1.4 million in 2011. This allows us to continue to invest in our fraternal programs and expand the reach of our Association. One statistic of which we are particularly proud is that we were able to spend more than $2.0 million on our fraternal programs, the first year we have ever exceeded this threshold. Kathleen Moriarty describes our

fraternal efforts on pages 14–15. One area where we did not perform as we would have preferred was growth of surplus. This is almost entirely due to the provisions we were required to make for our future pension obligations. Catholic United has long had in place a pension plan for its employees, and we are required to post a liability for this future obligation. Due to the present low interest rate environment, the number we are required to establish has increased; this caused a reduction in our surplus as of December 31, 2011. While this is not something we are pleased about, we also understand that as interest rates begin to climb back to normal levels, this adjustment to our surplus will reverse and the surplus will be restored. Both Management and your Board of Directors recognize that fluctuations in our surplus due to fluctuations in our pension liability must be put into proper perspective. Although our charge to surplus for this change in our pension liability was approximately $3.4 million, we fully expect that this is a temporary situation. In the meantime, we remain committed to continue to grow our surplus through gains from our insurance operations. That is the single most

$ Billions of Life Insurance In Force

2.0 $1.84

$1.85

$1.87

$1.90

$1.99

$2.03

$ Millions in Surplus $30.2 30 $28.4 $26.5 $24.6 25

$29.9 $26.6

1.5

1.0

0.5

0.0

0 2006 0 2006

0.0

2006 2006

2007 2007

2008 2008

2009 2009

2010 2010

2011 2011

2007 2007

2008 2008

2009 2009

2010 2010

2011 2011

5 news@catholicunited.org

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March/April 2012

Year End Financials for Catholic United Financial 2011 Statement of Operations $92,596,423 Total Income $91,201,200 Total Claims & Expenses $1,395,223 Net Gain from Operations $445,814 Refunds to Members $949,409 Net Gain after Refunds to Members ($684,081) Net Realized Capital Gains (Losses) $265,328 Net Income

2010 $89,935,982 $87,730,192 $2,205,790 $446,340 $1,759,450 ($2,664,835) ($905,385)

Summary

The past two years have been a period of extraordinary change for Catholic United. Our name update, the AFU merger, the Wellington investment relationship, the physical plant improvements, increased funding for the Catholic Schools Raffle and for the Foundation’s Disaster Relief program along with the stresses of the financial crisis all affected our Balance Sheet results. We are pleased that this period $735,583,519 $693,080,820 Total Admitted Assets of change has produced operating $709,454,464 $663,140,037 Total Liabilities profits along the way. However, we now $29,940,783 $26,129,055 Surplus expect to produce even higher levels 735,583,519 $693,080,820 Total Liabilities and Surplus of profitability that we can turn into a higher level of fraternal benefits. Our conservative approach to investments important component of long-term surplus growth. as well as our conservative approach to underwriting We are a member-owned and member-directed and reserving both serve to protect our members organization. Growing our membership remains our and our surplus. There are no plans to change most important goal. Therefore, we are pleased to our time-tested approaches in these areas. report another year in which our membership increased. Management is bullish on our future and believes We finished the year with 74,436 members, up from that our Association has actually never been stronger 74,097 last year. While most fraternals are reporting or better suited to continue its growth and leadership drops in membership, we continue to buck this trend. within the fraternal community. The merger has been We believe this is due to many factors: a professional and a challenge, yet one which the Association’s employees enthusiastic sales force, a strong home office, relevant responded to with enthusiasm and teamwork. fraternal programs and benefits, increased marketing, We expect good results in 2012 and beyond. The excellent insurance products, a strong financial base, necessary ingredients are in place. Management and our great history and reputation. But maybe and employees are working together to take full the most important factor is you – our member. It is advantage of our competitive advantages. We often through word of mouth that new members hear thank the Board of Directors for their continued about us. It may sound simple, but if we take proper support of our efforts. Most of all, we thank care of our members, you will take proper care of our you for your unwavering commitment. Association. That’s a partnership that can’t be beat! May God bless our members and their families.

Liabilities and Surplus

Assets

$735,583,519

88% Bonds 6% Mortgage Loans 2% Cash/Short-Term Investments 1% Mutual Funds 1% Policy Loans 1% Investment Income Due/Accrued 1% Other Assets March/April 2012

91% Reserves 4% Surplus 4% Supplementary Contracts 1% Other Liabilities

www.catholicunitedfinancial.org

$735,583,519

Sales News

2012 Sales Conference Above: The ballroom at the Marriott. Left: The North Region posed for a victory photo after their second year as top region. From top, Right: Dan Markell receives the FIC of the year from Tom Schisler, Rick Mathiowetz and Michael McGovern for the Top Producer award, and Mary Harens receiving the Peter Loskiel Award.

he mood was light and the company divine for the 2012 winter sales conference held at the Plymouth Crowne Plaza on Thursday, February 2. The entire sales force of Regional Managers, Sales Reps and Independent Agents descended upon the Twin Cities to sharpen their skills, learn how they had done as a force, and receive their rewards for a steady year of work. For many, 2011 will go down as yet another year lost to the slow recovery from the Great Recession of 2008/2009. But Catholic United is not just one of many. Just like 2010, 2011 proved to be a banner year for the sales force and for the company as a whole. You can read in our Annual Report on pages 6-8 exactly how Catholic United’s fiscal year turned out. But for the sales reps at the awards banquet February 3, there was certainly a celebratory mood. President McGovern addressed the group for the last time as president of the Association and thanked them for their dedication through his tenure. McGovern repeatedly attributed the success of Catholic United in weathering the economic climate of the past few years to the efforts of our sales force, the skills of the news@catholicunited.org

Home Office staff and the quality of the products that we sell. The North Region, led by Mike Bredeck, took home the “Region of the Year” award for the second consecutive year. Also returning to the pedestal was Rick Mathiowetz, who, after a three-year hiatus, reclaimed his title as the Top Producer of the year. Dan Markell’s efforts in recruitment of new members, chartering the Pipestone and Marshall Councils, and general Fraternal excellence earned him the FIC Of The Year award. And for the first time in the history of its existence, the Peter Loskiel Award for most new members (jokingly referred to as the “Butch Byers” award) was awarded to Mary Harens, who brought in 167 new members in 2011. Congratulations to all our Award winners, and thank you for all you do to make our Association great! March/April 2012

Annual Report

Connecting Faith With Giving The Catholic United Financial Foundation provides support for the following three areas of focus:

Catholic Education

through Technology Grants and Chastity and Abstinence Grants to area Catholic schools and churches

Seminarian Support through cost of attendance scholarships to local seminarians

Disaster Relief

providing direct support through equipment and supplies and volunteer coordination and training

What have you done to show your faith today? Every day we are given the opportunity to support many worthwhile charitable organizations. With so many choices and so much need, we often have trouble deciding where to invest our charity. One of the easier choices is when we choose to follow our faith and trust in our beliefs to guide our giving. Part of our role as followers of Christ is to set an example and model charitable behavior for others as well. Your charitable support of the Catholic United Financial Foundation helps to ensure the future of the Foundation and the Church as a whole. The following excerpt from

March/April 2012

Pope Benedict XVI’s message for Lent 2012 is especially appropriate to remind us why acts of generosity are so important and serve as a model to others. “Christians can also express their membership in the one body which is the Church through concrete concern for the poorest of the poor. Concern for one another likewise means acknowledging the good that the Lord is doing in others and giving thanks for the wonders of grace that Almighty God in his goodness continuously accomplishes in his children. When Christians perceive the Holy Spirit at work in others, they cannot but rejoice and give glory to the heavenly Father (cf. Matt-

hew 5:16).” Through the Catholic United Financial Foundation, you can invest in several projects that clearly define our faith as Catholics. Our three areas of focus, much like the Holy Trinity, provide support for the education of young Catholics to aid in the formation of their own faith, that provide support for seminarians, who will become the future leaders and teachers within our Church, and provide aid to others in times of need to reaffirm our own personal commitment to help others. The Bible teaches us that “Whatever you did for the least of My brothers and sisters, you did for Me.” (Matthew 25:40) www.catholicunitedfinancial.org

Your contributions provided 5,411 hours of service Minot Souris River Flood: 23 days, 549 volunteers, 4,941 hours

North Minneapolis Tornado: 2 days, 22 volunteers, 172 hours

Wadena Tornado: 4 days, 37 volunteers, 298 hours

2011 Total: 29 days, 608 volunteers, 5,411 hours

Catholic United Response is designed to help our communities be prepared, and to provide assistance with emergency supplies for personal hygiene, cleanup, comfort and supplies for baby kits for those victims whose homes have been destroyed. When communities are ready for cleanup and rebuilding, we will be there with equipment and tools necessary to help with recovery.

Your contributions allowed for grants to 49 Catholic Schools Chastity & Abstinence Education: 11 schools received $7,025

Technology Assistance: 38 schools received $18,600

2011 Total: 49 schools received $25,625 There are 7,000 are Catholic elementary or high schools in the U.S. What sets these Catholic schools apart from the other education choices? Three things: academics, service, and faith.Your contributions provided support for Technology Grants to schools and chastity and abstinence education to our schools and churches.

Your contributions supported grants for 125 seminarians 53 Minor Seminarians received grants totaling $13,250

72 Major Seminarians received grants totaling $28,800

2011 Total: 125 seminarians received $42,050 The call to the priesthood is a great gift to our faith and should be supported by the entire Catholic community through prayer, guidance, encouragement and financial support. Much of the financial support for tuition, and room and board is provided by the diocese and seminary financial aid programs. But many seminarians also need help with ordinary living expenses, and typical grant programs donâ&#x20AC;&#x2122;t cover those costs. The Rev. Msgr. Richard J. Schuler Charitable Trust has provided support to more than 1,000 seminarians since its inception in 1998.

How will you show your faith today? Please consider making a tax-deductible donation to the Catholic United Financial Foundation, the Rev. Msgr. Richard J. Schuler Charitable Trust, or Catholic United Response. You can make your contribution with a gift of cash, or consider making your gift possible through your financial or estate planning.

Contact the Foundation or your Sales Representative to learn more about making a beneficial impact through insurance policies, charitable gift annuities, or donor-advised funds. Allow us to help you connect your charitable giving with your Catholic faith today.

Contact us: 1.877.275.7145 rheuermann@catholicunited.org March/April 2012 11 www.catholicunitedfinancial.org/links/foundation

We have a winner!

or the six weeks of ticket sales leading up to the drawing, Catholic United raffle staffers nervously hoped that President Michael McGovern’s ambitious goal of half-a-million dollars wasn’t a little too ambitious. Now they’ve got a $750,000 goal to worry about in 2013. The applause swelled and the room became momentarily electric, as fears of swinging and missing on the ambitious $500,000 goal perished. The tenfoot banner unfurled before the crowd and live on the Internet told the tale: $611,290 raised this year, $1,088,000 in the past three for Catholic Schools in Minnesota and the Dakotas. The Third Annual Catholic Schools Raffle final results were

March/April 2012

announced at the Thursday, March 1, drawing, and left little doubt about who the true winners were — the more than 65 schools that have received every dollar that they raised through the raffle. The “gala” event was for the first time broadcast live. Also new this year, Catholic United sponsored a prize for the topselling schools (as in tickets sold per-student) — a SMART Board interactive whiteboard package worth more than $3,000. With more than $45,000 in prizes to be drawn for, and the SMART Board winners to be announced, Catholic United gussied up the Home Office for the big day. “The raffle has become such an exciting event that we want an appropriate level of

excitement when we have the drawing,” President Michael McGovern said of the drawing. In the days leading up to the drawing, most of the Home Office staff, including McGovern himself, helped separate, fold and “fluff” more than 120,000 individual ticket stubs to be entered into the drawing drum. The acrylic drum itself strained to hold almost twice as many tickets as the 2010-2011 raffle. On the day of the drawing, balloons, banners and a festive air festooned the Home Office auditorium as staff and guests enjoyed hors d’oeuvres and admired the brimming raffle drum. After a welcome by Mr. McGovern, and a brief prayer of thanks by Spiritual Director Msgr. James Habiger, Fraternal

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! Annual

Catholic Schools Raffle!

Presented by Catholic United Financial

2012 Winners Grand Prize Winner - $25,000

Walt Dziedzic — Minneapolis, Minn. 1st Prizes - $5,000 Cruise Voucher Betty Young — St. Francis, S.D. Dan Fauskee — Worthington, Minn.

Top Schools

St. Francis of the Lakes $43,860 — Brainerd, Minn Divine Mercy $42,910 — Faribault, Minn. Rapid City Catholic Schools $39,633 — Rapid City, S.D.

SMART Board Winning Schools St. Francis of the Lakes Brainerd, Minn. St. Wendelin School St. Cloud, Minn. St. Mary of Mount Carmel Long Prairie, Minn.

All full list of winners and results can be found on our Web site. Liaison Nate Lamusga pulled the cord to drop the results banner. Next, Home Office Raffle Coordinator Michelle Clark announced the SMART Board winners. The winning schools were: St. Francis of the Lakes School in Brainerd, Minn., (also the top overall school in terms of total dollars raised $43,860); St. Wendelin Catholic School of St. Cloud, Minn., and St. Mary of Mt. Carmel School of Long Prairie, Minn. With the totals announced and

the winning schools recognized, Msgr. Habiger dug into the galaxy of ticket stubs to withdraw the $25,000 Grand Prize winner: Walter Dziedzic of Minneapolis, Minn. Winners of the $5,000 Carnival Cruise travel vouchers were Betty Young, of St. Francis, S.D., and Dan Fauskee, of Worthington, Minn. After the drawing, visiting VIPs posed in front of the Victory Wall to have their photos taken with their school’s fundraising total. Several were interviewed (interviews will be viewable on our Web site as well)

Top Left: St. Francis of the Lakes school Principal Deb Euteneur, Raffle Chairperson Deseree Hopkins and Development Director Maria Pryzinski point to their school’s fundraising total (obscured) of $43,860. Top center: Msgr. James Habiger hands the Grand Prize winning ticket to emcee Steve Pesek while sales Director Tom Schisler helps stir the drum. Top Right: Sales Rep Butch Byers presents the Rapid City Catholic Schools top ticket seller with a Sony Cybershot camera. Below from left: 200,000 tickets were printed, and more than 120,000 sold during the 3rd Annual Raffle. Editor Jared Roddy

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and all spoke of the benefits the money raised through this raffle would bring to their schools. For Principal Bob Seidel of the number two overall school, Divine Mercy in Faribault with $42,910, it was clear the families and students of his school would all end up winners. “We’re actually giving (one quarter of the money raised) back to the families as a tuition break,” Seidl said. “So all 177 families will get a tuition break for next year.”

during a video run-through prior to the drawing; President Mike McGovern helps to count and “fluff” tickets; McGovern and Sr. Vice President Harald Borrmann pose beside the stuffed raffle drum; Fraternal Liaison Nate Lamusga pulls the cord and reveals the record-breaking total raised; Raffle Coordinator Michelle Clark announces the SMART Board winning schools; McGovern thanks the audience and sets the goal for 2013: $750,000! Grand Prize winner Walt Dziedzic receives his grand prize check from officers McGovern and Borrmann at the Home Office, March 14.

March/April 2012

2011

Fraternal Giving

his annual report to members provides an excellent opportunity for us all to reflect back on the 3% 1% 3% commendable work done and dollars donated 6% by our members in 2011 to benefit local parishes and schools. I can report that throughout the past year, our core fraternal programs continued to be well-utilized. 19% Parishes and councils continue to take advantage of matching grants, MinisTREE and member assistance Kathleen Moriarty grants. And Fraternal Director a myriad of opportunities for our members to receive benefits, either as individual members or as groups, abound. Members received record numbers of scholarships for post-high school tuition, grants for National Catholic Youth Convention and World Youth Day and assistance with local retreat attendance. Our programs continue to benefit parishes, religious education, the needy and the young. Our base of giving is expanding to more non-members as well! The money raised locally and matched by Catholic United Financial provides funding that

benefits many children and adults who may not have joined our fine organization as members – yet. We are currently focused on a major membership drive to bring new people into our ranks. With the recent completion of our third successful Catholic Schools raffle, Catholic United Financial has given more than $1 million over the last three years to benefit Catholic education. And we want the beneficiaries of that money – students, parents, and faculty – to take that additional step of becoming members. Buying a raffle ticket is only the first step! We encourage our current, loyal members to be our best advertising in encouraging your neighbors, parishioners and co-workers to partake of the many benefits that membership in Catholic United offers. Along with giving money and welcoming new members, our local councils and parishes also spent time and energy in 2011

24%

Fraternal Dollars Given in 2011 23% 20% $949,368 $229,010 $216,555 $197,296 $182,579 $57,714 $28,093 $28,093 $9,645

Council Allowances Donations & Gifts Scholarships Matched Funds Ministree Youth Programs Misc. Fees & Expenses Fraternal Events

(An additional $383 in convention and training expenses not graphed below.)

$9,645 3% $28,093 3% $28,093 6% $57,714 $182,579 19% $197,296 $216,555 $229,010

Fraternal Events 1% Misc. Fees & Expenses 24% Youth Programs Ministree Matched Funds Scholarships Donations & Gifts Council Allowances

23% best advertising in encouraging matched by Catholic United 20% 20% current, loyal members to be our The money raised locally and 23% the first step! We entreat our to more non-members as well! $229,010 Council Allowances Buying a raffle ticket is only The Unseen Our base of givingHand is expanding step of becoming members. the needy and the young. $216,555 Donations & Gifts Every year, we publish the total Fraternal Dollars given in our Annual Report, but that only tells a small part of the 19% $197,296 Scholarships and faculty – to take that additional parishes, religious education, story. As you can see, Catholic United matched $182,579 this year. However the real story, and the real impact is far that money – students, parents, Our programs continue to benefit Funds $182,579 greater. Local Catholic United Councils and Parish Units raised an additional $517,520 in 2011. Our Matched totals are only a And we want the beneficiaries of attend local retreat opportunities. reflection of the generosity and ambition of our local councils and their members. And for that fact, we thank you! Ministree $57,714 years to benefit Catholic education. Youth Day and opportunities to 6% Youth Programs $28,093 more than $1 million in only three Youth Convention and World 24% 14 March/April 2012 www.catholicunitedfinancial.org 3% Fees & Expenses $28,093 tuition, grants for National Catholic Catholic United Financial has given 3% Misc. 1% successful Catholic Schools raffle, of scholarships for post-high school Fraternal Events $9,645 the recent completion of our third Members received record numbers

dealing with change – the ever-present component of our lives. I often talk about all the “churning” that is going on in parishes, schools and councils as a result of demographic shifts in both rural and urban areas. The Fraternal staff continues to spend considerable time training new council officers, introducing nonmembers to the fraternal benefits we provide, and assisting members as they seek to strengthen and expand the involvement of others in council activites. The Fraternal staff is also working closely with advisory groups, sales reps, members and nonmembers to determine the best way to deliver our fraternal benefits to our members. Change can seem somewhat exhausting at times, but it’s also energizing and exciting! As social trends shift, we must be prepared to adjust our procedures and goals, while still maintaining our values and staying true to the vision and mission of Catholic United Financial. We could never accomplish our goals without the support and creativity of you, our valued members. I’m especially grateful to our dedicated council officers who give generously of their time to generate funds

Holy Cross Council #397 of West Fargo, N.D. was the first council chartered as a “Catholic United” council in 2011. It was also the Association’s first chartering of a council in North Dakota since 1918!

for local needs. I hope you take pride in the many accomplishments of 2011, even as we continue to anticipate and adapt to the changes coming in 2012.

Save the dates!

2012 will see the Catholic United Financial community gathering for good in New Prague and Albertville! Join us, whether a member or nonmember. All are welcome to have fun and celebrate family, food and fellowship while doing good works for your less fortunate neighbors. The activities will be held on Sunday, June 24 at the Cedar Lake Farms in New Prague, Minn., and on Sunday, September 16 at Central Park in Albertville, Minn. Along with enjoying food and music outdoors, we’ll have volunteer activities planned for youth and adults, geared to helping military families, those dealing with homelessness and hunger, and outreach to teens. More details will follow on our website and via communications with our active members and councils. This is a great opportunity to invite your friends, neighbors and parishioners who may not be familiar with the many benefits of membership in Catholic United. Come to both events if your schedule allows. news@catholicunited.org

March/April 2012

Keys to your

Kingdom

Estate Planning with John Tetzloff This issue of Journey magazine will arrive as spring is starting for many of ouvr members. The advent of Spring brings the deadline of filing our tax returns. This year the filing deadline falls on April 17 which means we have to have our tax returns postmarked by that date to avoid late fees with the IRS and your individual state. With the filing of tax returns comes the discussion of IRAs, Roth IRAs, and general tax planning and retirement issues. In this article, we’ll talk in general about those investments and how they can fit into a person’s tax and retirement planning. Traditional IRAs have been around for many, many years as retirement tools. The basic benefit of an IRA is its tax deductibility and tax deferred growth. When someone deposits money into an IRA, they are allowed a tax deduction for that contribution. In simple terms, they are able to lower their taxable income by the amount deposited in the IRA. With all good things, there are special rules we need to be aware of. Contributions to a Traditional IRA are limited to $5,000 per year, and if you are over age 50 you can contribute an additional $1,000 each year. You also must have earned income to contribute to an IRA. There are special contribution rules for a non-working spouse as well. Another rule to be aware of are the phaseout limits. This is based on income limits and deductibility. An

example of that is the following: An IRA deduction is phased out for adjusted gross incomes between $92,000 and $112,000 for those filing jointly. Tax deferral is another benefit of a Traditional IRA. As long as the interest earned remains in the IRA, it is not currently taxable. Don’t forget though that there is a required minimum distribution at age 70 1/2 where the IRS will then start capturing the tax on the entire distribution amounts. As with all tax planning, please consult your CPA or accountant for specific tax advice. Another retirement planning tool that is commonly used around tax time is the Roth IRA. The benefits of a Roth IRA are somewhat different from a Traditional IRA. A Roth IRA contribution is NOT tax deductible as the contribution used is after tax dollars. The interest grows tax deferred similar to an IRA, but when a person distributes the Roth IRA dollars the interest is tax free as long as the account is held for five years. Contributions are withdrawn tax free at any time but keep in mind any company-specific early withdrawal fees. There are annual contribution limits to a Roth IRA as well. Depending on income, you can contribute $5,000 annually to a Roth IRA and if over age 50, an additional $1,000 per year. You also need to have earned income to contribute to the Roth each year. Keep in mind that this $5,000 annual contribution applies to both Roth and Traditional IRA

contributions combined. Which means the total contribution to both Roth and Traditional IRAs cannot exceed that level each year. One other difference between a Roth IRA and Traditional IRA is the required distribution. A Roth IRA does NOT have a required distribution age so money can stay in a Roth until death, and then can be passed to heirs tax free. One question I often hear is, can I move my Traditional IRA dollars into a Roth IRA. Yes, you can do that but keep in mind that this is a taxable event. Whenever you move dollars out of an IRA into another type of investment, like a Roth IRA, you change the tax rules, which creates a taxable transaction. This means that the amount of money moved is considered taxable income and is added to the annual income and taxed accordingly. Although this often makes sense to do, make sure you consult with your Catholic United Financial Sales Representative and CPA for the correct tax advice. As with all planning, timing and consulting the correct professionals are vital to a successful transaction. Make sure you are aware of the contribution deadlines, typically April 17 as you file your return, and plan for your retirement contributions. Also, make sure you are aware of all the tax consequences by talking with your tax professionals and your Catholic United Sales Representative. Good luck in your retirement planning.

John Tetzloff, CLU, FICF, LUTCF, is the Catholic United Financial Advanced Case Specialist and Trainer. He leads estate planning seminars throughout the year and is the host of the “Creating Wealth Beyond Money” radio show, which can be heard Saturday mornings on the Relevant Radio network. He has more than 20 years’ experience in estate planning and financial preparedness. March/April 2012

www.catholicunitedfinancial.org

Announcements

Goodbye to a dear friend

Catholic United Financial lost a dear friend and cherished colleague on February 29, 2012, with the passing of Joseph Walter Dorf. Joe Dorf was a long-term sales representative for Catholic United in the Eau Claire, Wis., area. He was also a dedicated volunteer, working for many years as a Polish interpreter for the hospitals near his home.

January, 2012

In loving memory of our deceased members

Mary Adams, 74 Richmond, MN Ss. Catherine/Joseph

Anna Jansen, 107 Rogers, MN Mary Queen of Peace

Donald Ruthland, 82 St. Cloud, MN St. Anthony

Catherine Aretz, 94 Victoria, MN St. Victoria

Lois Evens, 71 St. Cloud, MN St. Anthony

David Olmscheid, 62 St. Martin, MN St. Martin

Arthur Arbes, 102 New Ulm, MN St. Joseph

Mildred Johnson, 90 Ortonville, MN St. John

Michael Schlechter, 60 Waconia, MN St. Joseph

Beatrice Bakula, 72 Minneapolis, MN St. Ann’s

Roger Fox, 76 Minneapolis, MN St. Boniface

Mary Rademacher, 92 Melrose, MN Ss. Bernard/Elizabeth

Rose Mary Athmann, 71 Cold Spring, MN St. Boniface

Gary Judge, 49 Hastings, MN St. Elizabeth Ann Seton

Marvin Schumacher, 76 Delano, MN Ss. Anthony & Ann

Orville Bau, 78 Parkston, SD Holy Cross/St. Mary

Winona, MN Ss. Joseph/Elizabeth

Fr. Lawrence Paul Ginther, 91

Janet Rueter, 72 Freeport, MN Sacred Heart

Gerald Axtman, 64 Balta, ND St. John Nepomucene

Dennis Kasper, 64 St. Michael, MN St. Michael

Sylvester Seifermann, 88 Terrance Baumberger, 84 Richard Hennen, 85 Dimock, SD Elrosa, MN Jordan, MN St. John the Baptist St. James St. John the Baptist

Steven Sawochka, 55 Minneapolis, MN St. Boniface

Kathleen Bennek, 87 Minneapolis, MN St. Ann’s

Candice Kaun, 40 St. Michael, MN St. Michael

Vivian Senden, 91 St. Leo, MN St. Leo

Lawrence Berle, 84 Bird Island, MN St. Mary

Fred Huneke, 87 New Trier, MN Ss. Nicholas/Theresa

Jerome Schimnich, 81 Sauk Rapids, MN Sacred Heart

Eileen Bohne, 81 Perham, MN Holy Family

Rev. Francis Kunz, 87 Mankato, MN Holy Family

Leona Snyder, 88 Sauk Rapids, MN Sacred Heart

William Binner, 76 Wabasha, MN Ss. Joseph/Kunigunda

Joseph Janssen, 58 Albertville, MN St. Albert

Robert Schindler, 77 St. Joseph, MN St. Joseph

Jane Braun, 84 Bloomington, MN Ss. Ann & Wendelinus

Marie LaPlante, 89 St. Paul, MN St. Bernard’s

Florence Soyka, 91 St. Cloud, MN St. Augustine

Daniel Blonigen, 87 St. Michael, MN St. Michael

Cordelia Johnson, 92 Richmond, MN Ss. Catherine/Joseph

Elmer Schoenecker, 102 Eden Valley, MN Ss. Joseph & Mary

James Callais, 80 Cold Spring, MN St. Boniface

Delrose Lenneman, 80 St. Michael, MN St. Michael

Carol Stenglein, 58 Waconia, MN St. Joseph

Benjamin Braulick, 78 Sleepy Eye, MN St. Mary

Peggy Kaufhold, 43 Victoria, MN St. Victoria

Fannie Schroepfer, 84 St Paul, MN Ss. Peter & Clemens

Irene Daas, 93 Millerville, MN St. Catherine

William Lintgen, 52 St. Cloud, MN St. Anthony

Florian Tadych, 86 St. Cloud, MN St. Augustine

Joseph Brinkman, 95 St. Paul, MN Home Office

Arnold Kemper, 80 Melrose, MN Ss. Bernard/Elizabeth

Bernard Sheehan, 92 Minneapolis, MN St. Boniface

Dolores Davister, 88 Wabeno, WI St. Ambrose

Harald Melsha, 74 Bird Island, MN St. Mary

Elva Waldherr, 96 Minneapolis, MN St. Ann’s

Deloris Brown, 79 Sykeston, ND Ss. Joseph/Elizabeth

Teresa Korth, 89 Wilmont, MN St. Kilian

Loretta Steil, 85 Richmond, MN Ss. Catherine/Joseph

Doris Weber, 87 Watkins, MN Holy Family

Valery Bruns, 85 Wilmont, MN St. Kilian

Marie Laing, 87 Freeport, MN Sacred Heart

Robert Thurmes, 37 Hampton, MN St. Mathias

Hubert Demartelaere, 73 Louise Minette, 88 Sauk Centre, MN Callaway, MN St. Paul St. Joseph Marinus Fasching, 83 Cologne, MN St. Bernard

Bernard Mischke, 85 Buckman, MN St. Michael

Gary Weber, 75 Leavenworth, MN Holy Family

Mary Ann Buetow, 57 St. Paul, MN Ss. Peter & Clemens

Carol Lieb, 67 St. George, MN St. George

Marie Vornbrock, 84 Sauk Centre, MN St. Paul

Oscar Forcier, 84 Perham, MN Holy Family

Donna Moldan, 72 Sleepy Eye, MN St. Mary

Edith Wegscheider, 81 St. Paul, MN St. Bernard’s

Mary Ann Califano, 77 St. Paul, MN St. Anthony-Maria Hilf

Marilyn Lindbloom, 68 Mankato, MN Holy Family

Bernard Wegman, 86 Elba, MN St. Aloysius

Timothy Goettl, 70 Mankato, MN Holy Family

Elvera Neudecker, 90 Sleepy Eye, MN St. Mary

Lucille Zimmel, 89 Mahnomen, MN Ss. Michael & Joseph

Dolores Dierkhising, 85 New Munich, MN Immaculate Conception

Grace Markel, 79 Mandan, ND Holy Cross

Irmund Willenbring, 93 Richmond, MN Ss. Catherine/Joseph

Delores Guetter, 89 Wabasso, MN St. Anne

Jeanette O’Leary, 72 Hastings, MN St. Elizabeth Ann Seton

Gertrude Zorn, 70 Red Wing, MN Ss. Joseph & Mary

E. Diane Drapeau, 53 Wabeno, WI St. Ambrose

Stanley Meidl, 92 New Ulm, MN St. Joseph

Alvin Hartmann, 89 Paynesville, MN St. Louis

Donald Patzner, 74 Rollingstone, MN Ss. Nicholas/Theresa

February

Edward Dubois, 88 St. Paul, MN St. Anthony-Maria Hilf

Peter Molitor, 91 Richmond, MN Ss. Catherine/Joseph

Edmund Herges, 97 St. Martin, MN St. Martin

Margaret Pexa, 87 Shakopee, MN St. John the Baptist

Dominic Adelman, 95 Rosen, MN Ss. Anthony/Monica

Benadette Dullinger, 85 Holdingford, MN St. Joseph

Julia Nierenhausen, 83 Richmond, MN Ss. Catherine/Joseph

Carol Jacobs, 80 St. Augusta, MN St. Mary

Marion Rothmeier, 57 Morgan, MN St. Michael

Margaret Anfang, 93 St. Paul, MN St. Anthony-Maria Hilf

Lyle Eissinger, 93 Fosston, MN St. Mary’s

Milton Nietfeld, 80 Melrose, MN Ss. Bernard/Elizabeth

news@catholicunited.org news@catholicunited.org news@catholicunited.org

Duane Stadler, 71

was a sales representative for Catholic United for many years, and was an active member of the Fraternal community throughout his life. Wabeno, WI St. Ambrose

19 1717

March/April May/June 20112011 March/April 2012

Minutes of the

Board of Directors Front row from left: Deborah Pauly, President & Chairman Michael McGovern, Senior Vice President & Secretary/Treasurer Harald Borrmann and Lead Director Fran Barten. Back row from left: George Gmach, Robert Krattenmaker, Michael Schmitz, Joseph Kueppers and John Maile.

December 8, 2011 The meeting was held at the Home Office in St. Paul, MN. The meeting started at 9:30 am with Secretary Harald Borrmann leading the Directors in the Opening Prayer and the Pledge of Allegiance. All directors were present, except for Director Bob Krattenmaker, who was ill. The Investment Reports for October and November were discussed by Chairman Mike McGovern and Mr. Borrmann. Although interest rates for investments have not improved, the average annuity crediting rate continues to decline by about one basis point per month. Approval of the report was moved by Director George Gmach, seconded by Mr. Kueppers and passed unanimously. Mr. Borrmann was selected as the Association’s Compliance Officer via a motion by Mr. Kueppers and a second by Director Deb Pauly; the motion passed. Howard Heidorn was selected as the Association’s Illustration Actuary via a motion by Ms. Pauly and a second by Mr. Gmach; the motion passed. Mr. Borrmann was selected as the Association’s Illustration Officer via a motion by Mr. Kueppers and a second by Director Mike Schmitz; the motion passed. Mr. Borrmann explained the dividend recommendation of the 2012 dividend as suggested by Mr. Heidorn. This year, the dividend for certain whole life policies can be increased due to favorable mortality experience since the current whole life product was introduced in 2004. Mr. Borrmann moved and Mr. Gmach seconded that this improved dividend scale be used for 2012; the motion passed. With regard to Policy Governance, Mr. McGovern led a discussion or action on the following items:

March/April 2012

Communication and Support review Monitoring CEO Performance; Mr. Gmach moved, Mr. Schmitz seconded and the revised wording was approved Cost of Governance; was reviewed for final approval in January Compensation and Benefits; Ms. Pauly moved, Mr. Kueppers seconded and the Board approved a revision Privacy Resolution; Director Fran Barten moved, Mr. Schmitz seconded and the Board approved this resolution Mr. Borrmann reviewed revised Council By-laws for the following councils: Ss. Joseph and Elizabeth, Winona St. George, St. George St. Anna, Belle Plaine Immaculate Conception, Pine City St. Michael the Archangel, Stillwater Mr. Kueppers moved, Mr. Schmitz seconded and the Board approved all the revised By-laws. Mr. Kueppers reviewed the Audit Committee Report. Strohm Ballweg continues to provide strong support to the Association and the transition to the new Managing Audit Partner has been smooth. Mr. Kueppers moved, Mr. Gmach seconded and the Board approved the Report. Mr. McGovern reported on the Succession Planning process. Candidates are responding and will be reviewed at the January Board Retreat. The Compensation Committee then met in closed session with the Board exclusive of the two officers. The report of the Compensation Committee was moved for approval by Ms. Pauly, seconded by Mr. Gmach and passed. Mr. Borrmann led a discussion of the third quarter financial report. The Association continues to grow and has passed the $700 million mark in assets. Mr. McGovern presented his President’s Remarks as follows:

• The Credit Union merger continues on track • The Schuler Fund checks are being distributed to a record number of recipients • Minnesota Insurance and Financial Services Council news: Mr. McGovern will complete his term as Chair in December • Life sales continue up, annuity sales are surprisingly strong and membership looks like it will be up again slightly for the year. • Two Task Forces have been working for several months: The Fraternal Task Force has been asked to project the fraternal model for the 21st century, and the Products/Operations Task Force is to develop the ideal life insurance operations schematic. Both task forces will summarize their finding at the Board Retreat • Technology grants continue to be in high demand from the Foundation, demonstrating continuing relevance for the grant program. • The 2012 Catholic Schools Raffle program will get under way January 16 with a record number of schools participating. The fundraising goal is $500,000. Mr. Borrmann presented a revision to the Association’s 401(k) Plan, allowing Roth rollovers into the Plan in accordance with state and federal law. The Board approved this revision. Mr. Borrmann presented for signature the annual Conflict of Interest and Code of Ethics Statements. Board members signed and returned these statements to Mr. Borrmann, signifying compliance with both Statements. Mr. Krattenmaker responded via fax subsequent to the meeting. Mr. McGovern led the closing prayer and the meeting was adjourned at 2:20 pm.

www.catholicunitedfinancial.org

Association Business January 18, 2012 The meeting was the annual Board Retreat and started at 9:30 am with Director George Gmach leading the Directors in the Opening Prayer and the Pledge of Allegiance. All members were present. In addition, the meeting was attended by Joe Annotti, president of the American Fraternal Alliance, and by employees Kathleen Moriarty and Jim Gibbons. The Investment Report was discussed by Mr. McGovern and Mr. Borrmann. The Association’s investments are performing well, given market conditions. Mr. Kueppers moved, Mr. Gmach seconded and the Board approved the Investment Report. Joe Annotti then presented a study conducted under the auspices of the Alliance regarding Consumer Research. The complete study is available in the Home Office but the essential conclusions are that consumers have little knowledge of fraternal insurers; once consumers understand what fraternal insurers do and how they differ from commercial insurers, their opinion dramatically improves. There is a need for fraternal insurers to present their differences to the public. Ms. Moriarty and Mr. Gibbons presented reports from their respective Task Forces, Fraternal and Product and Process. Again, the full reports are available from the Home Office. These two Task Forces grew out of the Strategic Planning process and involve numerous Home Office and Sales employees. The Task Forces are continuing their work in 2012. After these reports, the guests were thanked for their contributions and excused. Next, the Board met in closed session to discuss the candidates for the position of President and Chairman. The Board also discussed the Nominating Committee and its budget. During lunch, Mr. McGovern presented his President’s

Remarks as follows: • 2011 will have near-record sales of life insurance and annuities. • The average size of the life insurance cases reached an all-time high. • Membership will rise slightly as of year-end 2011. Much credit goes to the efforts of the sales force and the fraternal department. 2012 will bring a nearly year-long membership drive in hopes of continuing the membership growth momentum. • The 2012 Catholic Schools raffle is kicking off shortly. The goal is to raise $500,000, which would mean that the raffle will have raised more than $1 million in its three years of existence. • Once again, Catholic United will be advertising on selected radio stations and using billboard advertising to increase brand awareness and name recognition. The feedback from prior efforts in these areas has been universally positive. • The AFU merger continues to be implemented with the fourth quarter operations going as expected. • Effective January 1, 2012, the Credit Union merged with the Catholic Credit Union in St. Cloud. At least one employee is spending time in St. Cloud on most days to effect the smooth integration. The merger has resulted in doubling the size of the Catholic United Credit Union and a stronger balance sheet. Mr. Borrmann mentioned that the audit of Catholic United Financial as of 12/31/11 has begun. Although it is a highly complex process, it is expected that all reports and filings will be made on time and in an accurate manner. The State of Minnesota will be examining Catholic United Financial in accord with its usual five-year pattern. This means considerable additional work for the Finance Team but a positive outcome is expected. With respect to Lead Director, the Board thanked Fran Barten for her years of service in this capacity and for volunteering to take on

this responsibility. Mr. Kueppers nominated Deb Pauly to replace Ms. Barten, Mr. Gmach seconded this motion and Ms. Pauly’s selection was unanimously approved. Mr. McGovern led a discussion of Board Committees, inasmuch as this was the first fully attended Board meeting in 2012. The slate of Board Committee members was reviewed and approved and is available from the Home Office. Board succession planning continues to be an important topic as several Board members will be reaching the end of their terms in the next few years. The Board continues to encourage interested and qualified potential Board members to become involved in council activities as well as Convention committees. Mr. McGovern reported on the Foundation. A new Executive Director has accepted the position after a very extensive and thorough search. It was suggested that the Foundation name its own Spiritual Director; several names were mentioned and Mr. McGovern will make contact. Finally, it was suggested that the Foundation’s By-laws be reviewed for accuracy and relevance; Mr. Kueppers volunteered to assist with this effort. Mr. Borrmann updated the Board on the final budget. Due to the completion of several large building projects, the merger and the name change, the Association had elevated expenses in 2010 and 2011. However, the final 2012 budget shows a decrease in expenses. Mr. Kueppers moved that the Cost of Governance be accepted as presented; this was seconded by Ms. Pauly and approved by the Board. Mr. Kueppers led the closing prayer and the meeting was adjourned at 2:55 pm. Respectfully Submitted, Harald Borrmann Senior Vice President and Secretary/Treasurer

Board Minutes are abridged. Complete minutes are available at no charge by contacting the Home Office at 1-800-568-6670 or by visiting our website. news@catholicunited.org

March/April 2012

Fraternal

h g i H

! t ligh

Save the Date!

Saturday, May 5 is

JOIN HANDS DAY Above: Members and youth of the St. Charles Council in St. Charles, Minn., teamed up to clean up their parish grounds for their JOIN HANDS DAY project. Below: All Saints Council of Madison Lake, Minn., opted to build care packages for soldiers serving overseas. Any activity that brings together people of all ages to do a good work in the community will make for a great JOIN HANDS DAY project.

atholic United Financial is looking forward to another year of participating in JOIN HANDS DAY, a program endorsed by our trade organization, the American Fraternal Alliance. Every year on the first Saturday in May, we “join hands” with other organizations to make a difference in our local neighborhoods through helpful projects that connect youths and adults. In fact, JOIN HANDS DAY is the only national day of service that specifically targets and develops  relationships between young people and adults through neighborhood volunteering. Young people and adults work together on an equal basis to plan, organize, and implement the day’s activities. You might be wondering, “Why is Catholic United Financial so interested in this concept?” It’s because we’ve noticed a predominant separation between the ages. Older people are often isolated from the young, and lack opportunities for building cross-generational relationships in their day-to-day lives. People become comfortable with their peers, and only their peers. As a solution JOIN HANDS DAY brings young people and adults together, and begins the process of developing understanding and trust across the generations. It is a day to begin a yearround process of relationship building. In 2011, 57 of our councils participated! All Saints Council in Madison Lake, Minn., joined hands with the Boy Scouts, Fire Department, and the Madison Lake, and Eagle Lake Legion

March/April 2012

and Auxiliary to assemble care packages for our military serving in Afghanistan. Students and adults gathered for a dinner prepared by Kathie Ulmen and volunteers of the All Saints council, while Miranda Hodapp, the council youth liaison, coordinated the event. Each box contained items like deodorant, disposable razors, beef jerky, lotion and candy. In addition, each box contained a hand-written and personalized card with a religious medal. It was certainly a successful event with more than 60 volunteers joining hands to support our troops. Interested in getting involved with JOIN HANDS DAY in your area? Contact the fraternal department to find out more information on Council activities in your area. Call 1-800-5686670 or email fraternal@catholicunited.org.

www.catholicunitedfinancial.org

Catholic United Kids Cool Kid

Name: Brianna Radatz Age: 9 Hometown: Faribault, Minn. School: Divine Mercy The Basics on Brianna: Brianna is sure going to “dig” winning this month’s Cool Kid Contest, hope she doesn’t “flip out!” She could, since she’s a volleyball player and gymnast. She’s also a huge fan of the Harry Potter books and movies. When she’s not busy with sports, or participating in her 4-H and Girl Scout projects, she likes to play cards and games, and hang out with her friends. Congratulations, Brianna! Be the May/June Cool Kid! Fill out the puzzles on this page as best you can and submit them to Our Catholic Journey. One winner will get a Catholic United prize pack! Include your information, as seen above, a photo (can be returned) and a phone number. Send to: Catholic United Kids, 3499 Lexington Ave. N., St. Paul, MN 55126.

Catholic United Kids

news@catholicunited.org

Smarch/April 2012

ye on the Industry Your sneak peek into current trends of the fraternal life insurance industry

LIMRA study finds retirement savings lacking If retiring early is the blissful finale to the American dream, quite a few adults are in for a rude awakening. LIMRA, an international trade association for the insurance industry, found that Americans aren’t saving enough to fund the retirement lifestyle they desire. In fact, a LIMRA study conducted late last year found that 40 percent of pre-retired adults

earning $50,000 or more per year are saving less than $100 a month for their retirement years and many aren’t saving at all. Think corporate retirement plans like 401(k)s pick up the slack? Not quite. More than 50 percent of the respondents to the survey said they don’t have an employer-provided retirement account; of those that do, nearly 50 percent of those surveyed

contribute less than 5 percent of their annual income to the plan. Do these findings reveal a comfortable retirement is out of reach for most? Not if they educate themselves now, said Matthew Drinkwater, associate managing director at LIMRA. Consumers are encouraged to educate themselves about their options. Source: “LIMRA Study: Forty Percent of Americans Save Nothing Towards Retirement”, Oct. 18, 2011

March/April Catholic Crossword

Across 1 Catholic lead singer for U2 3 Catholic president 7 Clippers’ state 11 First name of a famous French impressionist painter who was Catholic 12 Catholic actor who starred in

Westerns 14 Catholic actor, Tommy ___ Jones 16 Coverage, that’s good to have 18 Nonclerical 19 Before noon 21 Scottish city 22 Catholic A-list actor who

starred in “The Bucket List” 27 Place, abbr. 28 Shelby’s state 30 ___ Christopher 31 In shape 32 Guy 33 New Testament book 34 Catholic writer, Hilaire ___ 38 Home of the Trojans 39 Garden of Eden dweller 40 Doctrine 43 Possesses 45 Used before a vowel 46 Catholic who sang “Born in the USA” 49 Church recess 52 Spanish for “it is” 53 Old Testament prophet 54 Catholic and star of “Lost in Translation,” Bill _____

Down

March/April 2012

1 Catholic Supreme Court Justice William _____ Jr. 2 Ruth’s mother-in-law in the Bible 4 Lasts, like Jesus’ love 5 _____ Testament 6 Founder of the Catholic Workers’ Movement, Dorothy ____ 8 Religious place 9 Mel Gibson’s “The ___ of the Christ”

10 Catholic and Oscar-winning actress in the “The Country Girl” Grace ____ 13 Rainbow shape 15 Jesus came down to it 17 Sister 20 Catchall category, abbr. 21 Choir member 23 Official text of Catholic teachings 24 Goes with hers 25 Company abbreviation in Europe 26 Globe 27 Flyer 29 Fisherman’s catcher 31 Miami locale 33 Catholic theologian 35 Bond actor who is a Catholic 36 Celebration of the Eucharist 37 Former Green Bay QB who is a Catholic 41 Swallow 42 Former UK PM and a Catholic, ____ Blair 44 Popular 47 Dogma 48 “Yes, ___!” 50 Loudspeaker system 51 France and Germany’s economic bloc, abbr. Solution posted at www.catholicunitedfinancial.org/ links/games www.catholicunitedfinancial.org

Metro/East