Volume 100 Number 19
ˇ ´ VESTNIK S P J S T
Benevolence
H E R A L D
★ Humanity
ISSN —07458800
★ Brotherhood
May 9, 2012
Pre-Convention Reports Issue
Delegates’ List...............................................................................................4 President’s Report ........................................................................................6 Vice President’s Report ...............................................................................9 Secretary-Treasurer’s Report ......................................................................9 Financial Secretary’s Report......................................................................11 Directors’ Report ........................................................................................14 Publication Committee’s Report................................................................17 By-Law Committee’s Recommendations..................................................18 Finance Committee’s Recommendations.................................................28
Insurance Committee’s Report..................................................................29 Readers Write..............................................................................................30 Meet the Candidates ...................................................................................32 Lodge Section .............................................................................................33 Youth Section ..............................................................................................40 In Memoriam................................................................................................43 Czech Culture..............................................................................................44 Lodge Calendar...........................................................................................46 Convention Schedule .................................................................................48
31st SPJST Convention • Killeen, Texas Monday, June 11 to Wednesday, June 13 Killeen Civic and Conference Center
SPJST local lodge delegates from across the state will meet in Killeen, Texas, on Sunday, June 10 through Wednesday, June 13 for the 31st SPJST Convention at the Killeen Civic and Conference Center (KCCC). Registration begins at 12:30 p.m. on Sunday. The Houston Concert Orchestra will perform at a Howdy Party from 4 to 7 p.m. at KCCC. The Orchestra’s performance is sponsored by Bailey, Ramsey and Associates, an actuarial consulting firm located in Austin, Texas. Complimentary snacks will be served. Late registration is 7 to 8:30 a.m. at the KCCC on Monday morning. The convention will convene at 8:30 a.m.
Lunch/Banquet Tickets All events are open to the public; however, all lunch and banquet tickets must be purchased in advance by May 25. The cost for boxed lunches is $7 per person and will be served on Monday, Tuesday, and Wednesday during lunch between 12 noon and 1 p.m. Lunch menus are:
Monday—Grilled chicken sandwich, baked macaroni and cheese, carrot cake, and bottled water.
Tuesday—Barbecue pulled pork sandwich, southern-style potato salad, baked beans, banana pudding, and bottled water.
Wednesday—Mesquite chicken salad sandwich on croissant, parmesan ranch pasta salad, vanilla pineapple cake, and bottled water.
Tuesday evening’s banquet at the KCCC will begin at 6:30 p.m. and will include a burgundy beef tips/smothered chicken in cream sauce dinner for $20 per person. Fritz Hodde will play for the evening’s dance. The cost for Tuesday evening’s banquet is $20 per person. Mail number of tickets needed, along with a
check or money order, for: Monday Lunch — $7; Tuesday Lunch — $7; Tuesday Banquet — $20; and Wednesday Lunch — $7 to: SPJST Convention Tickets, PO Box 100, Temple, Texas 76503-0100. If you have any questions or need any assistance, please call Linda at the SPJST Home Office (800) 727-7578. Home to family values, community spirit, and of course, Fort Hood—the largest military base in the world—Killeen is one of the nation’s fastest-growing cities. The community is also home to a weather of updated parks, golf courses, a regional airport, and a diverse population. Visit www.spjst.org for the latest convention information, including hotel information, by-law recommendations, candidate announcements, and pre-convention reports. —SPJST—
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Wednesday, May 9, 2012
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Delegates to the 31st SPJST Convention
The following is a listing of Delegates to the June 11 to 13, 2012, SPJST Convention which will be held at the Killeen Civic and Conference Center in Killeen, Texas. The listing is current as of May 3, 2012. Fraternally, Leonard Mikeska Supreme Lodge Secretary-Treasurer —SPJST— • • • District One • • • Lodge 1, Fayetteville Ronald R. Pflughaupt Debra L. Pflughaupt
Lodge 9, Snook William Orsak Elizabeth Ann Schoeneman Donnie S. Victorick Lodge 13, Dime Box Carla F. West Debbie A. Kostelka Wesley K. Ford
Lodge 17, New Tabor Ben F. Trcalek Jr. Evelyn Henry Stanley F. Mrnustik Kyle G. Skrabanak Susan Skrabanek Lisa Blum Randal A. Gaas
Lodge 38, Kovar Donna W. Zimmerhanzel
Lodge 39, Bryan Franki Dianna Everett Lodge 51, Ellinger Calvin C. Hlinsky
Lodge 67, Schulenburg Adrienne E. Kobza Lodge 106, LaGrange Darrell Matula Lodge 141, Sealy Josephine M. Bear
Lodge 169, Brenham Donald J. Strickland
Lodge 179, Warrenton Ricky L. Weyand John T. Cannon Linda H. Cannon
Lodge 189, Bryan-College Station Charles A. Munday
Lodge 201, Bleiblerville-Nelsonville Elaine Ann Duron Clara E. Susen Jenell Zettel
• • • District Two • • • Lodge 15, Buckholts Douglas L. Williams Sandra L. Fischer Lodge 18, Elgin Artie F. Monson Charles R. Wilson Johnny J. Vrabel Irene M. Vrabel Evelyn Gustafson
Lodge 20, Granger Norma F. Cavanaugh Edward J. Stoll, III Lodge 24, Cyclone Jason W. Hoelscher Shirley V. Hoelscher Barbara J. Macek Wilbert W. Mikeska Margaret A. Mikeska Daniel O. Wilde
Lodge 29, Taylor Marshall Wayne Voigt Connie D. Voigt Bobby C. Eulenfeld Laverne Eulenfeld Sharon J. Kaderka Leonard T. Kaderka Ronnie L. Rieger Lynette K. Rieger Linda C. Pospisil Jesse C. Pospisil Cristy P. Girod Albin F. Machu Tammy R. Whatley Lodge 47, Seaton Edwin J. Vasicek Leroy J. Dana Joyce D. Kraatz David C. Pechal Edwin J. Pechal Dolores J. Skrabanek Calvin H. Skrabanek James R. Skrabanek Frank E. Klinkovsky Woodrow E. Marek Joyce D. Skrabanek Patsy M. Koslovsky LaVerne F. Vanicek
Lodge 48, Beyersville Bobby Lee Wuensche Ruth Ann Wuensche Lodge 80, Holland Rita K. Spinn Frank E. Pajestka Jr Risa Pajestka Helen Pajestka Connie S. Horak
Lodge 87, Temple Jennifer R. Davidson Hiram A. Dixon Joe Camp Diane Troy
Lodge 155, Austin Joe Motl
Lodge 177, Academy Donald P. McCrea Shirley A. McCrea Bernice Hutka
Lodge 182, Falls County Donald W. Beckendorf
Lodge 187, Round Rock Johnnie S. Haak Mona F. Larson
Lodge 200, Bruceville-Eddy David W. Nauert
Lodge 246, Morgan’s Point Herman Wayne Orange • • • District Three • • • Lodge 6, Cottonwood Mary B. Neckar Johnnie R. Krizan Don Urbanovsky Peggy Dobecka Georgie Soukup Milton N. Peterson Barbara Jean Hykel
Lodge 25, Ennis James F. Holahan Jr. Patricia J. Fowler Mildred A. Dolezal Margaret A. Krajca Michael Van Fowler Betty J. Macalik Kay Lynn Kovar Lodge 35, Elk Randy C. Pavelka Gene E. Pavelka Barbara F. Pavelka
Lodge 54, West Wilburn Lee Willis Maxine M. Sefcik Mary Lou Mynar Freddie J. Kaluza Terry C. Sefcik Marcella Vaculik
Lodge 66, Waco Dana J. McAdams George E. Pauling Jr. Debbie Carol Galler Michael L. Galler Diana Lynn Engelke John Joseph Engelke Lodge 84, Dallas Justine Marie Yeager James Liska Vivian Cheryl Petr Vicki Carol Sims Bessie Petr Lynda Novak Jerry Manak Joann Manak
Lodge 92, Fort Worth Evelyn H. Scaff Alfred J. Kercho Joseph P. Hubenak Sherri Kabula Watkins Mary Ann Krivanek Lodge 130, Dallas John E. Vrla
Lodge 154, Fort Worth Mary J. Steinman Jerry B. Milan Rose K. Steinman Lesli J. Milan Lodge 180, Burleson Rhonda L. Hurtik
Lodge 204, Stephenville Norman M. Kneschk
• • • District Four • • • Lodge 49, Rowena Laura A. Pospichal Beverly J Teplicek Sylvia M. Rollwitz Lodge 73, Seymour Timothy H. Orsak Tracy Orsak
Lodge 76, Wichita Falls Ray Esparza Lodge 157, Lubbock Cynthia J. Kristinek
Lodge 160, San Angelo Sandra K. Jansa Sharon J. Hohmann Charlene D. Dusek Brenda J. Holik Herman D. Weise Leonard A. Jansa Lodge 207, Iowa Park Joyce L. Kotulek
Lodge 215, South Plains Arnold Lee Lehmann Lodge 219, El Paso Baltazar Nunez Arnulfo C. Rivera Ana J. Ahumada Alejandro Rivas
Lodge 229, Abilene Jesusita Hudson
Lodge 230, Midland Jimmy L. Slatton
• • • District Five • • • Lodge 81, Needville Thomas D. Stavinoha Bradley T. Stavinoha Lodge 88, Houston Carol A. Globke Kathleen Green Margie Anders Eugene L Barcak Georgia M. Barcak Clara A. Broz John V. Broz Patricia J Bruce Fred C. Buri JoAnn C. Buri Vernell M. Foyt Carolyn J. Havemann Donald G. Havemann Gladys A. Havemann Helen F. Hegwood Esther I. Heinsohn Mildred M. Holeman Janice M. Jahns Wallace H. Jahns Emil F. Kuropata Barbara M. Linney Edward L. Lorenz Mamie Lorenz Marceil R. Malak Carolyn J. Pechacek Dorothy M. Pflughaupt Josephine J. Pflughaupt Larry W. Pflughaupt Leander Pflughaupt Lynn A. Pflughaupt Dennis L. Roeder
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Carol A. Stayton Ashley D. Victorick Linda Wehring
Lodge 91, Crosby Vonda V. Smesny William D. Locke David S. Baldwin Jr Lonnie L. Lostak
Lodge 142, Houston Keith R. Kieschnick Alice O. Jochen MaryAnn Kieschnick Dennis W. Hermis
Lodge 172, Pasadena Jerome C. Dressler Jr. Robert D. Mayfield Helen L. Schewe Josephine M. Mayfield
Lodge 191, Lufkin Calvin Lee Anderson, II Lodge 255, Katy Cecil W. Roberts
• • • District Six • • • Lodge 4, Hallettsville Helen A. Zabransky Joseph L. Siptak Shirley A. Kalmus Gayenell T. Chudej Lodge 8, Weimar Leo Jares
Lodge 23, Moravia Eddie Vrana
Lodge 28, East Bernard Helen Ann Kelner Jeanette Ann Kaminsky Glenn Leslie Kaminsky Lodge 30, Taiton Yvonne M. Marcaurele Lisa Annie Bubela Debbie R. Krpec Karen S. Kaspar Wanda J. Dorotik Lodge 32, Victoria Michael K. Ahlstrom Kathleen H. Ahlstrom Lois J. Elles
CONVENTION O R N E R Convention Hotel Information
We have a special rate arrangement with the four hotels listed below. We have blocks of rooms set aside for the convention on a first come, first served basis.
Shilo Inn Suites Hotel 3701 South WS Young Drive Killeen, Texas 76542 (254) 247-3133 (254) 699-0999 $126 (special rate code: SPJST) 150 rooms reserved Hilton Garden Inn 2704 O.W. Curry Drive Killeen, Texas 76542 (254) 554-3900
Lodge 40, El Campo-Hillje Jerry L. Gensler Norma O’Canas Delia G. Floyd Mary Ann Cerny Vlasta C. Bartos James C. Kocurek Carmen S. Kocurek Ardis Ann Bacak Lodge 41, Port Lavaca Franklin D. Jurek
Lodge 63, Sweet Home Elaine F. Berkovsky Lodge 97, Placedo Yvonne Garrett
Lodge 143, Inez Esterleen A. Spann
Lodge 151, Wharton Rita J. Vanek David C. Bucek Charles L. Bucek
$ 99 (special rate code: SPJST) (877) 782-9444 30 rooms reserved Hampton Inn 2702 O.W. Curry Drive Killeen, Texas 76542 (254) 554-7110 $89 (special rate code: SPJST) 25 rooms reserved
Comfort Suites 2709 Cunningham Road Killeen, Texas 76542 (254) 634-5560 $70 (special rate code: SPJST) 40 rooms reserved
When making room reservations, please call the hotel direct and be sure to give them the special rate code which is “SPJST.” Rooms at the listed rates will not be guaranteed after May 31, 2012. All room rates are subject to applicable tax and prices are based on double occupancy. Please call Linda Hill at the SPJST Home Office (254) 773-1575 if you have any questions about making hotel reservations. Fraternally, Leonard Mikeska Supreme Lodge Secretary-Treasurer —SPJST—
Lodge 153, LaSalle Jerome J. Hlavaty JoAnn Andel
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Wendy A. Pruski Glen M. Pruski Roxanne M. Bertrand Lawrence E. Bertrand Elizabeth P. Bielefeld
Lodge 184, Moulton Elmer J. Michna GayeNell C. Baetz
• • • District Seven • • • Lodge 26, Skidmore Edwin Wallek, Jr.
Lodge 79, Corpus Christi Larry James Elzner Dorothy J. McCoy Jessica M. Janota Ronald L. Janota Virginia D. Rebecek Marcus F. Rebecek Jerry E. Sijansky Gerilyn A. Donnell Jill J. Sijansky Lodge 107, Floresville Robert J. Bayer Pauline J. Bayer Oscar J. Korus
District One sets delegates’ meetings
District One Delegates’ Meetings will be held in Schulenburg at Frank’s Restaurant on Thursday, May 17, 2012, and at SPJST Lodge 186, Caldwell on Friday, May 18. Starting time will be at 6:30 p.m. with a meal served, and the meeting will follow. Your spouse is also invited. Please RSVP to Rick Ford (979) 595-7241 or Donnie Victorick (979) 224-3125 by Friday, May 11 so we can have a count. Fraternally, Donnie Victorick District One Director Ricky Ford District One By-Law Committee Representative —SPJST—
District Three sets May 19 delegates’ meeting
Dear District Three Delegates, There will be a third delegates’ meeting on Saturday, May 19, 2012, to be held at Lodge 92, Fort Worth at 10:30 a.m. The hall is located at 3316 Roberts Cutoff Road, Fort Worth, Texas
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Lodge 117, Robstown Kathryn Marek
Lodge 133, San Antonio Valarie M. Popp-Harari Vicki Reese Kelsey Ann Trinidad Jarolyn Popp
Lodge 185, New Braunfels Sherri L. Harris-Stokes Lodge 202, Jourdanton Regina L. House Valerie E. Barta Bettie V. House Lodge 258, Seguin Chester E. Jenke, Sr. —SPJST—
76114. The hall phone number is (817) 624-1361. All delegates and members are invited and encouraged to attend. For questions or more information, please contact me (972) 875-6827. Fraternally, Kay Lynn Kovar District Three By-Law Committee Representative —SPJST—
District Six sets May 22 delegates’ meeting
District Six delegates and Standing Committees are invited to attend a District Six Convention Delegates’ Meeting on Tuesday, May 22, 2012, at Lodge 40, El Campo-Hillje. Pizza will be served at 6:30 p.m., and the meeting will begin at 7 p.m. This meeting will be a time to review, discuss, and understand the submitted bylaw amendments. Please bring your May 9 issue of the Vestnik which will have the by-law recommendations. Fraternally, Michael Ahlstrom District Six Director —SPJST—
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President’s Pre-Convention Report
Dear Brothers and Sisters, To endeavor to keep alive the cherManaging the SPJST since the ished traditions, customs, heritage, 2008 Convention required that culture and language of our forefaSupreme Lodge members review and thers. understand the factors that drive fraternalism, profitability, and growth. And generally, through moral, spirThe Supreme Lodge met on a quar- itual, and economic respect, to enterly basis to rec o u r a g e view fraternal benevolence and operations, dishumanity cuss the insurthrough the Soance program, ciety with sound investments, practical life inrisk managesurance for its ment and an members. ever-changing array of busiGauging ness challenges Performance as well as opSPJST’s perportunities. formance of These meetings over the past were generally four years can be enlightening, gauged in sevproductive, and eral ways. The lively. following statisMore detical data reflects tailed audit proour Society’s c e d u r e s performance in introduced in key reporting Brian Vanicek 2009 as well as areas. Life inmore detailed exsurance in force as pense accounting and budgeting pro- of December 31, 2008, compared to cedures have resulted in a more cost December 31, 2011, decreased from efficient and accountable operation. $932.8 million to $896.4 million, repAdditionally, performance expecta- resenting a decrease of 4.1 percent. tions have been raised. Total life insurance certificates in In 2012, we observe the 115th an- force decreased from 51,970 as of Deniversary of the founding of SPJST. cember 31, 2008, to 48,734 as of DeWe celebrate not just for having sur- cember 31, 2011, representing a vived, but for being vibrant — alive decrease of 6.2 percent. These dewith the same energy, spirit, and clines can be attributed, in large part, promise that must have filled the to insurance certificates that lapsed Fayette County Courthouse in La during this period. Please note that Grange, Texas, on December 28, these certificate counts do not include 1896, when 25 Texans of Czech de- annuity contracts. scent met for the purpose of organizEven as the average number of life ing a new fraternal benefit society in insurance certificates issued annually the State of Texas. has declined over the past four years, Going forward, the success of efforts have been made to significantly SPJST will depend on our continued improve sales persistency over the ability to unite, innovate, and achieve same period. Thanks to the Supreme our sales, investment, and fraternal ob- Lodge and everyone in the SPJST Injectives even as we stay true to our surance Department for helping to core values. These ideals, as outlined move the Society in this direction. in the Preamble to our By-Laws, are While new insurance production reas follows: mains an important element in the growth of SPJST, sales persistency — To provide and promote fraternal the quality of business written — reand social fellowship among members. mains a critical factor in our success.
Sustainable growth is growth that is repeatable, systematic, and aligned with the mission of the Society; moreover, it represents the underlying strength and vitality of SPJST’s core business. Sustainable growth, I believe, can and will be achieved through a concerted effort to grow out of our existing lodges, through the servicing of our existing members, their families and their circles of friends. To achieve sustainable growth, the products and services — financial as well as fraternal — that we offer to our members must meet and exceed expectations. The training and support we offer to our sales agents and lodge leaders must be equally superior. SPJST’s business philosophy — to work to establish a reputation for quality among members, sales agents, employees, and management remains an ongoing initiative. Annuity deposits in force as of December 31, 2008, to December 31, 2011, increased from $92.2 million to $117.1 million, representing an increase of 22.3 percent. The increase can be attributed to members seeking to ensure a guaranteed rate of interest on their contributions during a period of extreme volatility and uncertainty in the financial markets. Correspondingly, total admitted assets of the Society also increased, from $185.1 million to $217.8 million, over the same period, representing an increase of 15 percent. Vice President Gene McBride presents a detailed overview of insurance and annuity sales in his report. Total surplus increased from $13.0 million as of December 31, 2008, to $16.4 million as of December 31, 2011, representing an increase of 20.7 percent. This increase can be primarily attributed to an improvement in the market value of Society investments. It is especially gratifying to report to you that the negative trend lines of the mid-2000s have been reversed, especially as that relates to reclaiming surplus, and posting positive net income from operations. The improvements in bottom line results reflect the corrective and progressive actions taken by SPJST over the past four years to build and strengthen the financial structure of our fraternal order. Our financial performance through the first four months of 2012 has been good. SecretaryTreasurer Leonard Mikeska and Financial Secretary Roy Vajdak offer detailed explanations of these and other items related to SPJST’s invest-
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ments and financial statement in their reports. Thanks to everyone in the Accounting and Investment areas for their attention to detail and redoubling of efforts during what has been a period of management transition in these two areas. While we can be proud of the progress that has been made over the past four years, vigilance in the area of compliance remains a watchword. One of the most significant challenges that SPJST had to deal with over the last four years was the issue of premium guideline violations identified by the office of the Secretary-Treasurer in 2009. It was reported in the October 2009 Supreme Lodge meeting that numerous SPJST Universal Life insurance certificates had guideline premium violations and/or had been categorized as modified endowment contracts. Following a comprehensive review, a total of 188 premium guideline violations, some going as far back as 1988, were identified and addressed. It was determined that computer programming errors had led to the problem which has since been corrected. After consulting with our attorneys and the Internal Revenue Service, the SPJST Supreme Lodge made the decision to not pass the burden of tax liability on the violated accounts to our certificate holders but rather to absorb the impact of the decision and correct the errors in a diligent manner. As a result and under the terms of Proclamation 2008-40, SPJST settled on a negotiated amount of $1,087,106.20 with the IRS to settle this matter. This payment appears under Exhibit 2 General Expenses as line item 4.5 “Expense of investigation and settlement of certificate claims” on page 11 of SPJST’s 2011 Annual Statement. It is important to note that SPJST — along with other fraternal and even commercial insurers — faces more regulation, a wider range of stakeholder expectations, and more public scrutiny than ever before. As a result, quality control and compliance issues remain high on the Supreme Lodge’s list of priorities. By taking a strategic and proactive approach to these matters, the Society is operating in a manner that warrants and justifies the confidence of our devoted members. Fraternal Recognition Over the past four years, SPJST’s fraternal venue has expanded to include a wide range of adult- and youth-oriented activities as well new opportunities for community service.
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As a result of these efforts, SPJST and its members received considerable recognition on the state level through the Fraternal Alliance of Texas and on the national level by the American Fraternal Alliance. The Alliance’s national “Fraternalist of the Year” award is presented annually to recognize the nation’s top volunteer among the almost 10 million members affiliated with the Alliance’s member societies. The award goes to a fraternal benefit society member who has provided outstanding volunteer service in his or her community and excellent leadership in his or her local lodge throughout the past year. All 72 member societies of the Alliance are invited to nominate their top volunteer. In recent years, this high honor has been bestowed upon SPJST fraternalists three times, beginning with Brother Bob Hagen of SPJST Lodge 246, Morgan’s Point in 2007. Subsequent honorees have included Sandra Hoggard of Lodge 202, Jourdanton in 2009 and Susan Skrabanek of Lodge 17, New Tabor in 2010. Ronnie Pflughaupt of Lodge 1, Fayetteville received recognition as first runner-up for the honor in 2008. Awards and recognition are a positive affirmation, but they don’t compare to the satisfaction of knowing that SPJST’s fraternal program is the real deal when it comes to meeting its fraternal obligations on an everyday basis.
SPJST Youth Program Let’s begin with our youth program. Through active participation in local SPJST Youth Clubs and statewide events, young members between the ages of five and 18 developed a greater awareness of the common bonds that we all share. SPJST youth clubs also worked with community-based organizations, tailoring programs to fit their local needs. Additionally, SPJST’s summer camp program fostered a spirit of cooperation, an appreciation of the natural environment, and helped campers to acquire leadership fundamentals. SPJST christened the newly constructed SPJST Education and Nature Center at Cooper Farm in 2010. Past SPJST State Youth Director John Hoelscher took on the role of SPJST ENC Executive Director in that same year. Congratulations to Brother Hoelscher and ENC Directors for stepping up to the challenge and bringing this project to fruition. Additionally, SPJST sponsored Youth Achievement Day (YAD) com-
petitions on the district and state levels as an educational activity for SPJST youth club members. Contestants fielded entries in a range of areas including arts and crafts, music, dance, drama, and public speaking. Starting in 2011, State Youth Director (SYD) Frank Horak initiated a re-emphasis on the dramatic performance elements of YAD competition. Already, it appears, the emphasis is making a positive difference. YAD talent and royalty competition teaches young people to learn the value of teamwork. Working together to be part of something bigger than themselves can be very rewarding and help them to achieve a sense of self-worth. It allows them to learn to lead as well as follow. It can also be just plain fun! SYD Frank Horak and our District Youth Counselors (DYCs) planned and directed activities and programs as well as formulated the rules and regulations for our youth program. Brother Horak, aided by Fraternal Services Specialist Tammy Martinez effectively managed the multitude of activities that comprise the SPJST’s youth program. The collaborative ties that exist within the SPJST Youth Program and that are nurtured by our DYCs, their assistants, and youth leaders represent a tremendous devotion of time and spirit. They demonstrate the importance of working together to achieve common goals. Their commitment represented a powerful and driving force behind the success of the SPJST Youth Program. A special thanks to those DYCs, youth leaders, youth club members, and adult volunteers who helped to promote the colorful Czech heritage and culture by fielding Beseda dance groups throughout the state. SPJST Beseda dancers routinely perform at the Texas State Fair Multi-Cultural Celebration, Caldwell Kolache Festival, and — most recently — on March 2, 2012, Texas Independence Day — at the Texas State Capitol in Austin.
Scholarship Program Thanks to all of our members who donated money to support the SPJST 100 Pennies Scholarship Fund Drive, Memorial Fund, or contributed to our endowed scholarships over the past four years. Your contributions combined with SPJST’s annual cash allocation enabled many of our deserving young people to pursue a higher education. During the four-year period from
2008 to 2012, a total of 286 scholarships totaling $292,000 were presented. This total includes the 35 scholarships — 27 Merit Scholarships and eight Royalty Scholarships — that were awarded in conjunction with the SPJST Youth Program at State Youth Achievement Days. Keep in mind, this total does not include the many scholarships that were awarded by our local lodges.
Doing Good for Each Other Whereas Brother Horak tended to matters of business relating to the youth program, State Fraternal Activities Coordinator Chester Jenke provided adult lodges across the state with assistance in the area of officer training, lodge development, and fraternal programming. Brother Jenke also organized many of our SPJST statewide events and contests. SPJST is fortunate to have Brother Jenke on staff. With more than 24 years of fraternal experience, he knows what he is talking about because he and his wonderfully creative and supportive wife, Colleen, have lived it. Thanks again to Fraternal Services Specialist Tammy Martinez, who enabled Brother Jenke to stay on the road by handling fraternal activity administrative functions as well as organizing SPJST statewide tournaments and assisting with local lodge and district activities. Thanks, too, to our District Fraternal Activities Coordinators as well as all of our district officers for the many and varied services that they provided to the lodges in their districts. The idea of fraternalism — of doing good for each other and for our communities — is a powerful motivator once we allow the fraternal spirit to guide us in our mission — in our lodges, in our youth clubs, in our district and state activities, and in the affairs of the SPJST Supreme Lodge and Home Office. The last four years have been extremely productive for SPJST and for fraternalism. That’s not to say we didn’t have our challenges, disagreements, and even a few reconciliations along the way. That’s the way it goes with families . . . In SPJST, we are “family” if not by blood, then by common bond. Through 110 lodges throughout the state of Texas, SPJST offers products and services that offer protection, that celebrate achievement, and that bring people together. Insuring and enriching lives — that’s what we’re about. So far, we’ve touched on a lot of areas, but you know, it repre-
Wednesday, May 9, 2012
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sents only part of the big fraternal picture. That grand, panoramic image only comes into view when you step back and take note of the hundreds of local lodge events that have taken place over the past four years. That’s not an overstatement. SPJST’s weekly newspaper, Vestnik, observes its 100th anniversary in 2012. The Vestnik holds the distinction of being the nation’s only weekly fraternal publication. Look through any typical issue of the Vestnik over the last four years and what did you see? Members doing good things for each other and for their communities. That’s what it’s all about. In lodges all over the state, men, women, boys, and girls committed their time and energy to supporting worthwhile causes. They are taking the best that SPJST has to offer — a tradition of helping people to care for their families — and are extending these values to their communities. To name a few: Join Hands Day events, Tarok tournaments, bowling tournaments, domino tournaments, horseshoe tournaments, district meetings, fundraisers, lodge picnics, dances, turkey shoots, stuff the bus, barbecue cookoffs, outdoor extravaganzas, cemetery cleanups, care packages for soldiers, auction sales, reverse raffles, polka festivals, lock-ins, Beseda performances, soup tastings, bingo games, building renovations, hall restorations, nursing home visits, pull tab drives, food drives, pet food drives, clothing drives, eyeglass drives, and dozens of drives up and down the streets of towns and cities all over Texas pulling the SPJST floats — more than 160 parade appearances over the past four years! Thank you to Vestnik Editor/Director of Communication Melanie Zavodny and husband, David Nauert, for the wonderful job they have done in prepping SPJST’s two floats for presentation and for coordinating their many appearances throughout the state. And, certainly, thanks to Melanie for her extraordinary communication efforts on behalf of SPJST. A detailed summary of these activities appear in the Publication Committee Report. In August 2011, SPJST hosted the Fifth Annual Corpus Christi Getaway Weekend. The event is getting bigger and better all the time. More than 340 attendees enjoyed fun in the sun and fraternalism with a cruise theme. There was food, music, entertainment, games, and lots of kolaches—thanks to our good friends at Lodge 79, Corpus Christi. We are looking forward
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to hosting the Sixth SPJST Summer Getaway August 10 to 12 in Corpus Christi. This highly-anticipated event is emblematic of how SPJST’s fraternal program has evolved in order to remain relevant in the active lives of our members.
Fraternal Outreach Over the past four years, the SPJST Home Office continued to show strong support for a multitude of annual public events, most notably helping to sponsor such events as National Polka Festival in Ennis, Westfest in West, Caldwell Kolache Festival, Temple Czech Feszt, and Heritage Day at the Texas State Fair. The Society also offered its support to an array of cultural and heritage groups including Czech Educational Foundation of Texas (CEFT), Texans of Czech Ancestry (TOCA), Czech Heritage Society (CHS) of Texas, Texas Czech Heritage and Cultural Center (TCHCC) in La Grange, Czech Cultural Center Houston, and Sokol. It was an honor for us to work with and to be affiliated with each of these fine organizations and the projects that they championed. I would be remiss at this point were I not to offer my thanks and appreciation to the Texas Czech Genealogical Society (TCGS) for the volunteer support that they extended to SPJST over the past two years, especially as that relates to scanning back issues of the Vestnik for future retrieval by our members and others doing research. The SPJST Home Office basement has taken on a new life as it is now home to the TCGS’ Czech Veterans’ Wall of Honor and Czech Military Museum. Demonstrating a strong, united fraternal front, in May 2009, and again in May 2011, SPJST organizers worked with other Texas-domiciled fraternal benefit societies to coordinate and host Legislative Awareness Week at the Texas State Capitol in Austin, two very successful events which included picnics on the grounds of the State Capitol for state legislators and their staffs. Building strong, personal relationships with our public officials and their staffs is an important aspect of generating public attention and support for fraternal groups and the good work that they do. Building legislative support for SPJST is an idea that applies as much on the local lodge level as it does on the state and national levels. Thanks to our lodge leaders who extended invitations to
their elected officials to attend and participate in SPJST lodge functions since the 2008 convention. For the past three years, SPJST has been involved in raising awareness and funding for the November 5th, 2009 Fort Hood Memorial, a project conceived by SPJST State Field Representative Hiram Dixon late in 2009 to pay tribute to the 12 American soldiers and civilian contractor gunned down at Fort Hood on November 5, 2009. The memorial will serve to honor the victims and provide a historic record of this tragedy in order to deliver a message of vigilance for generations to come. The response to the memorial project has been gratifying as veterans groups, businesses and civic organizations have been stepping up to donate or pledge support. To date, more than $106,000 has been raised for the memorial. SPJST lodges assisting in this effort were recognized at the 2012 SPJST Awards Banquet. Approximately $500,000 will be needed to bring the project to completion. This amount includes an endowment to be established from the funds collected to provide for the perpetual maintenance and upkeep of the memorial and garden. Even as SPJST will continue to assist in efforts to raise awareness and funding for this project, our Home Office emphasis in months ahead will be on generating support for the Czech Heritage Museum and Genealogy Center in Temple and SPJST Education and Nature Center in Fayette County. On a related note, the SPJST Education and Nature Center — an independent 501(c)(3) non-profit organization ordained by the 2000 SPJST Convention — enjoyed its first full year of operations in 2011. That represented a great achievement for supporters in that this project that had been — in one form or another — on and off the drawing boards for more than 48 years. Located in Fayette County, the project embodies the ideas of wildlife preservation, conservation, and personal achievement. Also in 2011, the SPJST Library, Archives and Museum, (Czech Heritage Museum) — another 501(c)3 non-profit organization established by the 2000 SPJST Convention — made significant strides in establishing its base of operations at its newly refurbished headquarters located at the corner of Third Street and French Avenue in Temple. Organized as a result of actions by the 1956 SPJST Convention, the S.P.J.S.T. Rest Homes in Taylor and
Needville are also a 501(c)3 non-profit enterprise. In March 2010, S.P.J.S.T. Rest Home No. 1, Taylor opened a new addition to its assisted living accommodations to meet the needs of its near-capacity resident population. In 2011 and 2012, the SPJST Supreme Lodge laid the groundwork for the establishment of The SPJST Foundation — a 501(c)3 non-profit enterprise, which will seek to administer to the support and development of a number of cultural, educational, and humanitarian programs and causes. We are presently awaiting an IRS ruling on the establishment of this far-ranging fraternal endeavor. The word “lodge” has two meanings to SPJST members. It is both a place where local SPJST meetings are held and a collective term for the members who meet there. SPJST lodges help to define and convey the fraternal ideal of “doing good for each other and for the communities that SPJST lodges seek to serve.” A strong lodge strives to keep members informed of the life insurance benefits and other fraternal benefits afforded through membership in SPJST. What’s more, belonging to a strong lodge conveys a sense of tradition and responsibility. To help lodges achieve these worthy objectives, the SPJST Supreme Lodge has developed a checklist of 10 SPJST Model Lodge Best Practices. We are now in the introductory stages of introducing these “best practices” to our lodges. A Positive Reflection The success of SPJST over the preceding four years reflects well on everybody — our members, lodge officers, district leaders, Supreme Lodge, Editor/Director of Communi-
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cation, and Home Office staff and field personnel. I especially want to recognize the tremendous dedication and work ethic of my assistant, Sandra Dubcak. She’s great at keeping me and the Fraternal Department on track. Her ability to effectively multitask a dozen projects at a time is incredible. Also, I want to recognize Human Resources Administrator Debbie Klinkovsky for her cost-effective restructuring of the Society’s multiple internal insurance plans as well as for her devotion to matters related to the personnel and benefits area. Finally, I want to extend my appreciation to our two part-timers in the Fraternal Department — Sister Ruth Hanusch and Brother Frank Klinkovsky — for the conscientious job that they do in helping the Fraternal Department remain responsive to the needs and concerns of our members. Ruth is now in her 35th year of service to SPJST. Frank has been around SPJST for a lifetime in positions ranging from DYC and State FAC to District Director and local lodge President. And top it off, he speaks great Czech as well. As a lifelong member of SPJST, it has been an honor to serve you as President these past eight years. We’ve had a great run and are on track to achieve new heights in the years to come. With a deep awareness of the responsibility conferred by your trust, I humbly ask for your support for President for the next four years. I will continue to work hard for you as we carry our fraternal mission. Fraternally, Brian Vanicek Supreme Lodge President —SPJST—
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Vice President’s Pre-Convention Report
with $1,440,905.41 in premium inDear Members, This pre-convention report is being come from life products. submitted in accordance with Article In 2009, we increased the goal to 3(d) of the By-Laws. 2,500 which was about 5 percent more It has been an extreme honor to than the preceding year. We ended have served as your vice president with a total of 1,868 applications writover the past 12 years. This report ten with 454 being youth. Insurance summarizes and recaps the activities written was $107,344,023 with and successes $784,113.42 in of the past four premium inyears since the come. We fell 2008 convenshort of our extion. In 2008, I pectations by a presented a small margin. program to the In 2010, we S u p r e m e achieved 1,552 Lodge that was applications writadopted. It was ten. Of those, called Cele371 were youth brate ‘08. The apps written. Intheme of this surance written program was to was $85,148,553 celebrate with $700,227.34 SPJST’s proud premium inpast, present, come. and future and In 2011, we its memberproceeded with ship, all that 1,198 applicaSPJST offers tions written with its members 241 of those Gene McBride and communibeing youth apties across plications. InsurTexas. Our mission for this program ance written was $74,068,585 with was to increase membership, premium $582,146.29 premium income. income, and face amount of insurance; In 2009 to 2011, we experienced a to enhance fraternal and youth pro- drop in the economy as well as suffergrams; and to foster a common bond ing from lapses of certificates which within our membership and lodges dropped our production in those three throughout Texas. years. We are pleased to report that we have turned around the lapse chalMarketing Strategy lenge, and the ratio is holding at 85 Our top priority has been and con- percent and above. We think 2012 tinues to be increasing our member- will show a positive production for the ship and premium income. Our year. membership was declining, so we inI recognize my field staff for a great troduced an incentive program in job. Thanks to State Field Representa2001. We continue to use the program tives Delisle Doherty in Districts One today. This plan motivates and re- and Five; Hiram Dixon in District wards sales agents, lodges, lodge offi- Two; Phillip McBee in District Three; cers, youth clubs, youth leaders, Bobby G. Davis in District Four; district youth counselors, and mem- Karen Kaspar in District Six; and Don bers. This has motivated our sales J. Strickland in District Seven. agents, youth members, lodges, and Thanks to the Home Office staff in lodge officers to promote the program the Insurance Department. They are and secure new members. We have Executive Assistant to the Supreme also developed new products that are Lodge Vice President Cynthia Hutka, competitive in today’s market. In Assistant to the Supreme Lodge Vice 2008, our goal was 2,345 applications President Lisa Mills, New Business written. We wrote 3,562 applications. Technician Donica Zabcik, UnderOf those, 724 were youth. Insurance writer Doni Powell, Administrative written for 2008 was $203,739,061 Specialist to the Insurance Department
Socorro Wolcott, Certificate Issue Technician Doris Tyroch, Customer Service Specialist Susan Shofner, and Insurance Technician Karen Franklin. These staff members work very hard to keep the flow of sales going without any backlog. Member service is always a top priority. I pledge to you that this commitment of providing benefits to our members will continue to be top priority for the SPJST Insurance Department. In closing, I would like to say it has been a great 12 years serving as your vice president. I feel very opti-
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mistic about the future of SPJST and would very much like to remain a part of our Society’s growth and success. With this feeling, I ask the delegates at the 31st SPJST convention to re-elect me and allow me to serve you for four more years. If you have any questions or concerns, feel free to contact me. I will be more than happy to assist you. Fraternally, Gene McBride, FICF, CFFM Supreme Lodge Vice President —SPJST—
Secretary-Treasurer’s Pre-Convention Report
The purpose of this pre-convention report is to comply with Article 32 (g) of our By-Laws and to share a summary of management and performance information with you. The report will also include highlights of selected information from our financial statements. I will begin by sharing an abbreviated listing of responsibilities and duties of the Secretary-Treasurer’s Department:
• Providing member services, administration of annuities, individual retirement accounts (IRA), certificate loans, and general certificate information requests.
• Managing mortgage loan department and providing mortgage loans for benefit of our members and lodges.
• Secretary• Custody of Treasurer is reall matters relatsponsible for ing to investresponding to ment of funds of correspondence the Society innot addressed to cluding manageanother department and ment and attestrequired record ing to all official keeping. Investdocuments as the ment managecorporate secrement is listed tary. first because of its importance in • Supervising providing funds the Home Office to support the Leonard Mikeska fraternal probuilding and all grams and acreal estate betivities that define who we are as a longing to the Society. Society and to fund the life insurance and annuity benefits for our members. • Managing the claims department and paying all death claims • Recording Supreme Lodge minutes and informing membership of important conclusions. The publication of • Filing of various compliance reminutes in the Vestnik is important be- ports, participating in Supreme Lodge cause it is the member’s window into and committee meetings, and various the meetings of the Supreme Lodge. other corporate responsibilities. ParAlso recording of Investment Commit- ticipating in management of the Socitee and officers’ meeting minutes and ety and providing goals for meeting the Society’s mission. notes.
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Although I assumed management of the Secretary-Treasurer’s position on August 1, 2008, some of the information in this report will date back to January 1, 2008. Here is a chart illustrating growth of our Society assets. Year 2008 2009 2010 2011
Total Admitted Assets $185,108,063 196,978,272 211,879,313 217,751,169
Investments Taking over management of the assets on August 1, 2008, the first task was beginning the process of evaluating the Society’s portfolio of stocks and securities. Numerous securities were found to be in process of default, and unrealized losses were identified that would have to be dealt with. The surplus shown on the books at the beginning of 2008 was $24.2 million. By the time of the 2008 Convention, the economic crisis was beginning to take its toll well before I assumed office in August 2008. By year end 2008, losses would take the surplus down from $24.2 million to $13.02 million as defaulting securities were written off and impaired securities were written down to market value incompliance with insurance accounting regulations. Even at that, there were ailing and non-performing securities left on the books to be dealt with later. Other matters needing resolution were fees paid to the consultant, the custodian, and the way our Society bought and sold securities. I am grateful to your Supreme Lodge in their wisdom and willingness to allow many changes in the way we handled our investments. There was immediate need for software and services to provide necessary investment information to manage our portfolio. Consequently, numerous consultants and advisors were evaluated and Buddie Ballard, C.F.A. of Alpha Capital Management in Austin, Texas, was selected. Alpha came on board on October 1, 2008. With their assistance, we were able to enter into a totally transparent method of buying and selling securities and superior custodial services. Our cost for stock trades is less than $10 and for bond trades, the cost is $25. The success that we have enjoyed in turning around our finances would not have been possible without the wisdom and confidence of the Supreme Lodge in approving the major changes that made it possible. Their willingness to step out of the box and accept new methods and technology has placed us in a very advantageous position. With the future in mind, and with the assis-
tance of Mr. Ballard, we adopted a comprehensive Investment Policy Statement (IPS) which is a living document and is reviewed in every Supreme Lodge meeting. The IPS provides that SPJST maintains full discretion on sales and purchases of securities. That is, all purchases and sales of securities require SPJST approval. Amazing Recovery and Turnaround The following chart illustrates an amazing turnaround: Year Net Gain/(Loss)
2008 2009 2010 2011
-($9,061,065) - (1,244,738) 1,427,704 1,228,253
Surplus
$13,022,948 13,807,528 16,185,721 16,379,403
In addition to the gains shown above, profits on bond trades have increased our interest maintenance reserve by over $2.5 million, and these profits will be taken into income spread over a period of years, as provided by insurance accounting regulations. We sometimes loosely refer to the Interest Maintenance Reserve (IMR) as our “cookie jar” where we are limited in how much of the stored profit we can take out each year. Combining profits and losses for the period from year 2000 through year 2008 show a significant average annual loss over this period. A turnaround was needed, and we have achieved this turnaround with two profitable years and recovering over a million dollars per year in surplus. During 2009, profits were generated and used to liquidate impaired or nonperforming assets and unrealized losses. Also during 2009, we began the process of diversifying our securities among sectors, and laddering our maturities to provide cash flow and liquidity. Diversification and adequate cash flow are absolute necessities for an insurance Society. At December 31, 2008, the market value of our securities was over $21 million less than the book value. That measurement is now reversed in that at the end of the first quarter, the market value posted in our custodian account is some $4.6 million greater than the book value. Simply observing history, we know that sometime in the future, we will again experience an economic downturn or some economic crisis. We have diligently labored to prepare for this by diversifying our portfolio, laddering our maturities to provide cash flow and improving the quality of our securities. We are financially strong and ready for what the future may bring.
Taking Care of Members— Our First Priority Two serious irregularities were discovered the latter part of 2009, and the Supreme Lodge response demonstrates our commitment to our members. The first was my chance discovery of a Universal Life certificate in violation of Internal Revenue Service (IRS) guidelines due to excessive premium deposits. This led to the second discovery of the fact that our Admin system had allowed excessive deposits to flow through without warning on 188 certificates. Some of the violations dated back more than 20 years to 1988. SPJST sought the assistance of a tax specialist to help us to take remedial action to deal with this violation. The certificates were replaced, and a settlement was negotiated with the IRS for $1,087,106. Considering the possibilities if this would had not been dealt with, it is our opinion that this was a very favorable settlement to put this matter behind us. Although unfortunate, the incident does demonstrate a strong commitment to our members. If we had not encountered this extraordinary expense, our net income for 2011 would have been more than $2.3 million.
Death Claims Paid One of the primary reasons our members buy life insurance is to provide funds for their family in the event of their death. During the past four years, the following amounts were paid: Year
2008 2009 2010 2011
Number of Certificates 475 657 580 600
Amount Paid $2,590,480 4,222,233 3,571,217 3,447,017
What a Difference a Name Makes My report consistently refers to SPJST as a “Society”—and not a “company.” Why is SPJST the “light on the hill” in the American Fraternal Alliance? It is because we have not forgotten the reason for our existence as a fraternal benefit society. It is because we on the Supreme Lodge know that we are here to serve you and not some abstract image of a “company.” Yes, we must make prudent business decisions, and we must make a profit but our purpose must be rooted in a higher mission and a vision to serve you better. Our everyday mission must be to remain financially strong for the sole purpose of fulfilling our contractual benefits to you and funding strong
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fraternal programs that define who we really are. We remain confident that the decisions and governance of the delegates will continue to provide the direction you desire for our “Society.”
Challenges and Goals We experienced very strong performance in the first quarter and expect that our March 31, 2012, quarterly report will show surplus of near $18 million. A realistic goal is to increase surplus back to $24 million by the 2016 convention. The past three and one-half years have seen a lot of “mopping up” problems with our Admin system. A serious goal will be training staff to use new technology to help us manage operating costs and at the same time provide better service to our members. It is our goal that we will make the necessary changes to allow our members and sales personnel access to information they need online. It is our goal to see our A.M. Best rating upgraded. We see a trend for continued improvement in our financial strength and are confident we are moving towards an upgrade in our financial rating.
In Summary In short, it is the duty of the Secretary-Treasurer to manage the funds of the Society to produce income to support our benefit obligations to our members as well as the many fraternal programs the Society provides. Additionally, it is the duty of this position to provide the best possible service to our members and to oversee all administrative duties in a professional manner. I feel that I have done that and ask for your vote of confidence to return me to this position for another four-year term. The fraternal mission of the Society is an inseparable part of every decision I make and every action I take. During my many years of service in the Secretary-Treasurer’s Department, I have encountered and found solutions to almost every imaginable problem. I have experienced and managed the Society’s monies through all kinds of economic cycles. I have embraced and know how to adapt to and use new technology. My bachelor of science degree is augmented by a heart for our fraternal mission. Expression of Appreciation Appreciation and acknowledgement is expressed to the members of my department, in alphabetical order: Margaret Campbell, Janie Coakley, Rudy Constancio, Tamara Gettys, Linda Hill,
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Ann Paruzinski, Marissa Salinas, Margaret Santana, Dorothy Tomasek and Carol Wolf. I appreciate the manner in which you serve our members and how you have grown professionally. I graciously thank the officers, directors, Editor/Director of Communication, and all of you who bless us with your labor of love for our Society and one another. Dorothy and I thank you for your friendship and hospitality during our many years of service. Most of all, I thank God and give
him the glory for His Blessings and all that He has done in leading us to victoriously meet the challenges we have faced the past four years. Again, I humbly ask for your support in reelecting me to the position of Secretary-Treasurer. Fraternally yours, Leonard Mikeska, FIC Supreme Lodge Secretary-Treasurer —SPJST—
Financial Secretary’s Pre-Convention Report
This report is submitted in accor- by $784,580. This is accomplished by dance with Article 3 (b) and Article 32 a decrease in the risk in our portfolio. (g) of our 2008 SPJST By-Laws. Higher risk assets require higher reI want to thank the Supreme Lodge serves. As the risk of the portfolio defor appointing me to the position of Fi- clines, surplus can increase even if the nancial Secretary. It is an honor to be Society suffers operating losses. Our the first appointed person to this posi- A.M. Best rating dropped further to Btion that was not previously elected to (Watch). this position. As The Society the grandson of started to recover charter memfrom these losses bers, SPJST has in 2010. The Sobeen important ciety had a Net to my family Gain from Opersince its formaations of tion. Histori$416,903 and a cally, the capital gain of Financial Secre$1,010,800. Surtary is responsiplus rose by ble for all $2,378,193. Our accounting A.M. Best rating functions of our improved to B Society. (Stable). The Society These gains suffered under continued in the economic 2011 despite an downturns of extraordinary 2008 and 2009. event. The Net In 2008, the SoGain from Operciety suffered a ations was Roy Vajdak Net Loss from $1,070,013 and Operations of the capital gain $1,930,754 and had a capital loss of was $221,740. Surplus rose by $7,143,045. This resulted in a decrease $193,682. It was discovered in 2010 in surplus of $11,238,089 and a drop in that guideline premium violations had our rating by the A.M. Best Company occurred in the Universal Life product. from B+ (Good) to B (Fair). This rat- SPJST was faced with a difficult deciing reduction was a result of our Soci- sion. Does the Society issue 1099s to ety’s Net Loss from Operations, our policyholders for over 20 years of inhigh level of risk in the investment terest income thus forcing the policyportfolio and the high level of capital holder to file amended tax returns and losses. be subject to underreporting tax penalThe Society continued to suffer a ties? The Society chose the other opNet Loss from Operations in 2009 of tion which was to negotiate a payment $491,559 and a capital loss of to the Internal Revenue Service (IRS) $753,179. Despite these losses, the So- thus sparing the policyholder unnecesciety was able to increase the surplus sary stress. This payment was slightly
over $1.1 million and was a direct reduction of the Net Gain from Operations. Stock values declined at year-end, and the Society recognized an unrealized loss of $2,645,461. This is a direct reduction of surplus. The stock market has rebounded in 2012 and much of this loss will result in larger gains in 2012. Without these two occurrences, the Society would have had its best year financially in over 15 years. During the first quarter of 2012, the Society’s Net Revenues have far exceeded budgeted amounts and should result in improvements in Net Gains from Operations, capital gains, and gains in surplus. We hope this will improve our A.M. Best rating to B+ (Good). The financial statement will show that our Society has decreased our common stock portfolio to approximately $10 million compared to approximately $18.8 million at the end of 2010. We will continue to monitor all aspects of the Society’s operations so that we may re-achieve our A- (Excellent) rating with A.M. Best. All official figures (accrual basis) are taken from the annual statement as submitted to the Texas Department of Insurance.
Financial Statement I have submitted a financial statement of SPJST for a four-year period, which includes 2008, 2009, 2010, and 2011. This financial statement enables you to compare assets, liabilities, net income, expense, and surplus. I am pleased to report that assets have increased by approximately $25.7 million over the last four years. Total liabilities have also increased by $33.6 million over the last four years primarily due to the increase in the annuity portfolio. The difference is measured through surplus, and this amount decreased by approximately $7.9 million. We continue to maintain a sizeable amount in our Interest Maintenance Reserve (IMR) which amounts to approximately $4.8 million. This amount is set up as a liability for future release to the financial statement provided that no losses occur to offset this amount. Earnings on our assets make it possible to support our fraternal programs (including the youth program), refund to lodges, incentive awards, interest on annuities, and interest on universal life certificates. Our spending on the fraternal programs in 2011 was over $1.8 million which is a direct reduction on our Net Income from Operations. We have maintained this course; therefore, we were able to support the incentive awards program that enables lodges to
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receive monetary amounts based on their production. We have also maintained a higher level of interest on our interest sensitive products. My financial statement and graphs follow.
Refund to Local Lodges The Supreme Lodge Officers and Directors have continued to declare refunds to our local lodges for the past four years. This total refund for the past four years has amounted to more than $700,000. All active lodges were paid by taking the number of certificates at a rate of $8.50 per certificate on premium paying certificates and $1 per paid up certificates. All annuity certificates were excluded. It is very important that each local lodge increase its new insurance sales so that these programs and refunds may continue.
Incentive Awards Program to Local Lodges This program was started approximately 16 years ago and has continued to be of a great interest to our local lodges. This has enabled local lodges to receive high refunds based on their production provided that guidelines were met. This program for the past four years has enabled us to refund approximately $187,000. Please make sure your local lodge has active sales agents so that refunds may continue.
Department of Insurance and Independent Audit The last Texas Department of Insurance audit was completed for years 2004 through 2008. I am pleased to report that no discrepancies of any magnitude were found, and no changes were made to my financial statement as submitted. Our independent audit is being conducted by Jaynes, Reitmeier, Boyd & Therrell, P.C. for the year 2011. This audit began in January with preliminary work and should be finished by June 15, 2012. The Supreme Lodge reviewed all independent audits for years 2008, 2009, and 2010, and no discrepancies were noted or items changed. As required by state insurance regulations, we are required to file these independent audits with the Texas Department of Insurance in Austin, Texas. Cost of these audits for the past four years has amounted to approximately $52,825.
Data Processing We continue to upgrade our equipment to provide for the most efficient work flow and continue to maintain our software programs with United Systems and Software, Inc. in Lake Mary,
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Florida. We are currently working with United Systems and Software to insure the software is operating as expected and IBM to more fully utilize our existing equipment.
In Conclusion At this time, I would like to thank the dedicated employees of my department for a job well done. All of this detailed work would be impossible without an efficient office staff. My employees include Dorothy Stuchly, Debbie Dohnalik, Lisa Kirby, Lori Slack, Stephanie Bartose, and Susan Neal. Debbie, who is our Accounting Manager (35 years of service), has enabled our Society to maintain a high rating with her efficient work and dedication. Lisa, my Executive Assistant (20 years of service), has proven her capabilities and dedication to this position after taking over from Linda Johnson, who retired in December 2011
after 35 years of service. Dorothy (46 years of service), Lori (four years), Stephanie (two years), and Susan (four months) have also performed their duties very efficiently and have become valuable assets to my department. I am very pleased that they represent me and our Society at a high level. I must not forget the other team members of the Home Office. It has been a pleasure working with the other employees and with the Supreme Lodge Officers, Directors, and Editor/Director of Communication. I certainly appreciate the fine cooperation each has displayed towards me. I’d like to tell you that I find much pride in representing SPJST. My wife Becky, my children, and I try our best to represent you well. We are all SPJST members. Fraternally, Roy W. Vajdak Financial Secretary —SPJST—
RANKING OF LODGES ACCORDING TO AMOUNT OF INSURANCE IN FORCE AS OF DECEMBER 31, 2011
Ranking Lodge No. Certificates Amount of Ins. 1 88, Houston 5,869 $ 55,859,431 2 160, San Angelo 1,138 37,840,621 3 47, Seaton 2,033 35,855,506 4 107, Floresville 1,099 28,751,851 5 29, Taylor 1,774 28,527,691 6 219, El Paso 484 28,210,265 7 79, Corpus Christi 1,390 26,885,820 8 40, El Campo-Hillje 1,259 25,277,267 9 49, Rowena 663 23,871,305 10 66, Waco 1,428 21,507,799 11 30, Taiton 814 21,386,719 12 6, Cottonwood 1,078 20,571,401 13 17, New Tabor 979 19,111,010 14 80, Holland 843 17,026,704 15 133, San Antonio 567 16,754,701 Top 15 lodges account for 43 percent of total insurance in force. RANKING OF LODGES ACCORDING TO NUMBER OF CERTIFICATES IN FORCE AS OF DECEMBER 31, 2011
Ranking Lodge No. Certificates Amount of Ins. 1 88, Houston 5,869 $ 55,859,431 2 47, Seaton 2,033 35,855,506 3 29, Taylor 1,774 28,527,691 4 66, Waco 1,428 21,507,799 5 79, Corpus Christi 1,390 26,885,820 6 40, El Campo-Hillje 1,259 25,277,267 7 84, Dallas 1,250 14,972,613 8 160, San Angelo 1,138 37,840,621 9 107, Floresville 1,099 28,751,851 10 6, Cottonwood 1,078 20,571,401 11 25, Ennis 1,029 9,463,970 12 92, Fort Worth 1,013 8,355,424 13 24, Cyclone 986 16,741,701 14 17, New Tabor 979 19,111,010 15 172, Pasadena 913 12,166,471 Top 15 lodges account for 45 percent of total certificates in force.
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RANKING OF LODGES ACCORDING TO NUMBER OF PREMIUM-PAYING CERTIFICATES IN FORCE AS OF DECEMBER 31, 2011
Lodge No. Certificates Amount of Ins. Ranking 1 88, Houston 1,601 $ 41,656,962 2 47, Seaton 811 30,075,604 79, Corpus Christi 810 24,797,585 3 4 160, San Angelo 738 35,805,889 5 107, Floresville 737 27,173,710 6 40, El Campo-Hillje 685 23,607,466 7 29, Taylor 677 25,191,862 8 66, Waco 624 19,183,487 9 6, Cottonwood 514 18,709,882 10 219, El Paso 481 28,181,850 11 49, Rowena 442 22,522,056 12 80, Holland 433 14,985,946 13 333, Group 428 2,160,000 14 30, Taiton 419 19,826,870 15 24, Cyclone 368 14,189,328 Top 15 lodges account for 44 percent of total premium paying insurance in force.
SPJST Financial Statement A Four-Year Comparison Statement of Financial Condition 2008
ASSETS 2009
2010
Bonds $120,168,519 Stocks 19,981,091 Mortgage Loans 27,103,903 Real Estate: Properties occupied by the Society 2,766,322 Properties held for the production of income Certificate Loans 2,218,424 Cash 11,105,147
$141,874,270 $151,094,079 18,302,111 24,019,646 28,650,614 28,427,111
Totals
$196,978,272 $211,879,313
Other Assets
1,764,657
$185,108,063
2,676,666
2,554,313
1,973,822
2,615,428
2,232,085 1,268,704
64,754 2,271,094 832,888
LIABILITIES AND RESERVES 2008
Certificate Reserves $164,893,120 Cert. Benefits Payable 559,358 Premiums Received In Advance 384,431 Interest Maintenance Reserve 2,283,132 Asset Valuation Reserve 749,726 Other Accrued Liabilities 3,215,348
Totals
172,085,115
Totals
$185,108,063
Unassigned Funds
13,022,948
2009
2010
$171,292,790 $182,225,973 460,791 984,848 379,226
357,399
2011
$168,465,514 15,209,066 25,456,011
2,479,353
64,754 1,908,760 1,042,537
3,125,174
$217,751,169
2011
$189,557,036 847,935
89,269
4,549,621 3,380,733
4,721,419 4,276,936
4,854,418 2,809,143
183,170,740
195,693,592
201,371,766
$196,978,272 $211,879,313
$217,751,169
3,107,579
13,807,532
3,127,017
16,185,721
3,213,965
16,379,403
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Statement of Operations 2008
Insurance and Annuity Premiums $12,281,553 Net Investment Income 7,889,909 Amortization of Interest Maintenance Reserve 438,483 Commissions and Expense Allowance 30,339 Net Realized Capital Gains or (Losses) (7,143,045) Miscellaneous Income -
TOTALS
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$13,497,239
INCOME 2009
2010
$16,272,933
$20,627,087
$20,808,298
575,502
776,237
872,921
8,600,186 17,129
9,758,692 5,925
10,221,924 3,620
(753,179)
1,010,800
221,740
$24,712,571
$32,178,741
$32,131,934
-
-
DISTRIBUTION OF INCOME 2008
2011
2009
2010
3,431
$13,912,183 (604) 6,399,670 5,646,060
$14,261,530 161 10,933,183 5,556,165
$17,092,195 (206) 7,331,060 6,480,132
NET INCOME
$(1,244,738)
$1,427,702
$1,228,753
22,558,304
$(9,061,065)
25,957,309
30,751,039
Net Gain (Loss) From Operations
2011
Life and Annuity Benefits $10,868,503 Refunds to Members 5,664 Additions to Reserves 5,051,814 Operating Expenses 6,632,323
TOTALS
Surplus For The Past 10 Years
30,903,181
STATEMENT OF CHANGES IN CERTIFICATE HOLDERS’ SURPLUS 2008
Balance - Beginning $24,261,037 Net Income (9,061,065) Change in Unrealized Capital Gains (+) or Losses (-) (2,177,024) BALANCE - ENDING $13,022,948
2009
2010
2011
$13,022,948 (1,244,738)
$13,807,528 1,427,702
$16,185,719 1,228,753
$13,807,528
$16,185,719
$16,379,403
2,029,318
950,489
(1,035,069)
Certificates In Force For The Past 10 Years
Net Income (Loss) For The Past 10 Years
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Directors’ Pre-Convention Report
We, the undersigned directors, examined all income and expense in the books of the Supreme Lodge. We also examined the bonds, preferred stock, common stock, mortgage loans, and certificate loans. This examination was conducted on January 17, 2012. The following Balance Sheet as of December 31, 2011, and Statement of Operations for the year ending December 31, 2011, are our financial reports.
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—SPJST—
•••••••••••••••• See all convention information including available hotels, by-law recommendations, candidate announcements, and pre-convention reports at www.spjst.org. ••••••••••••••••
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Publication Committee’s Pre-Convention Report
This is a report of the Publication Committee for the past four years. The 30th SPJST Convention in Killeen in 2008 elected the following members to the Publication Committee: District One - Floyd Kostelka District Two - Tammy Whatley District Three - Bessie Petr District Four - Sharon Hohmann District Five - Lorenda Baldwin District Six - Helen Kelner District Seven - Jarolyn Popp
Following the 2008 Convention, the Committee elected the following officers: Chairman - Jarolyn Popp Vice Chairman - Bessie Petr Secretary - Helen Kelner
The 2008 Convention elected Vestnik Editor/Director of Communication Melanie Zavodny. The Publication Committee met in 2009, 2010, 2011, and 2012 with the Editor and, on occasion, with Supreme Lodge members, to evaluate past performance and to make recommendations for improving organizational communications. Also, on a regular and as needed basis, the Vestnik Editor/Director of Communication consulted with the Publication Committee on matters pertaining to organizational communications.
Editor’s Duties During the past four years, the duties of the Vestnik Editor/ Director of Communication consisted of editing the Vestnik and assisting the Supreme Lodge in a variety of capacities, including the promotion of fraternal and youth activities, life insurance programs, and the mortgage lending program. The Editor's duties also included the development of printed materials, including newsletters, flyers, brochures, and advertisements for Society marketing and promotions. The Communication Department carried out approximately 40 annual lodge and youth club mailouts each year. Other printed communication projects that the Editor completed included the annual calendar, Youth Spectacular, SPJST Excellence sales agent newsletters (through 2009), Member Services Directory, SPJST Convention Souvenir Book, and membership campaign promotional
materials. As a matter of routine, the Editor represented the Society at various SPJST and member-related activities including heritage and cultural events — throughout the state. A 700-page cookbook—SPJST Tasty Traditions—featuring 1,400 recipes was compiled, designed, and edited in 2011 by the Vestnik/ Communication Department.
SPJST Website Additionally, the Vestnik Editor/Director of Communication was responsible for designing and creating the SPJST website at www.spjst.org. The site features downloadable forms; event information, online registration, and photos; SPJST historical data; and The SPJST Store for ordering SPJST merchandise. The website is updated several times per week. An online archives has been established that includes past tournament winners, district kings and queens, and top sales winners. Future plans include district adult pages (for fall/spring meetings information, etc.); district youth pages (for YAD, camp, activity, information); sales agent pages (including contact information); and lodge pages.
Social Media The Editor introduced SPJST to social media by establishing presences on Facebook, Twitter, and You Tube. Video projects that the Editor completed included the annual state youth video, State Youth Achievement Day videos, American Fraternal Alliance National Fraternalist of the Year videos in 2009 and 2010, and other SPJST promotional video projects.
Events, Orel, Floats In addition, the Editor coordinated the Orel Buck program and assisted with organizing and coordinating events such as the annual SPJST Awards Banquet, Bloomin’ Temple SPJST Car Show, and State Youth Achievement Day. The Editor and the Communication Department were responsible for Orel, the SPJST mascot, and all of Orel’s appearances across the state. This included scheduling and coordinating the live, costumed mascot and the 20-foot inflatable mascot at various events. The Editor’s duties also included all aspects of the two SPJST Floats. Through the effective use of volunteers, the Editor has designed and
developed numerous float themes during the past four years. The floats appear in more than 40 parades each year. The Editor scheduled the floats in parades working with lodges and youth clubs throughout the state. She also coordinated drivers to deliver the floats to parades and, again, working with volunteers, oversaw the floats’ repair and maintenance. “The Voice of Our Members and SPJST” The Vestnik continues to be the voice of our members and SPJST. The delegates at the 2004 Convention approved printing the weekly Vestnik in full color. The page count has increased due to an increase in submissions from lodges and youth clubs and statewide activities. The average page count per week in 2012 is 31 pages. The average number of Vestnik subscriptions currently being mailed out are 10,008. The 2012 Vestnik cost is an average of 21 cents for printing each issue and 24 cents for mailing each issue. This amounts to about 45 cents per Vestnik—or the same cost as one postage stamp.
100th Anniversary The Vestnik is observing its 100th year in 2012. To recognize this significant milestone and to preserve SPJST’s history, the Vestnik/ Communication Department partnered with Texas Czech Genealogical Society (TCGS) to scan all available past Vestniks from 1912 through 2004. SPJST is providing the scanners, and TCGS is providing the volunteers. TCGS members have worked hundreds of hours scanning the Vestniks and checking the scans for accuracy. Upon project completion, the archived Vestniks will be stored in a permanent, searchable online database.
$10,000 Donation to TCGS The Publication Committee is asking that delegates consider donating $10,000 to Texas Czech Genealogical Society (TCGS) as a token of appreciation for their countless hours of work towards the Vestnik archiving project (which is a savings of more than $500,000 to SPJST). We believe $10,000 is a very small token of appreciation for TCGS’ generous volunteer efforts in making this project a reality. We are confident that this project will connect generations and provide valuable historical research for SPJST and genealogical data for families. Your consideration of this contribution to Texas Czech Genealogical Society is greatly appreciated.
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Appreciation and Thanks Publication Committee The expresses its sincere thanks and appreciation to Temple Daily Telegram, which has printed the Vestnik since 2005. The relationship between SPJST and the Temple Daily Telegram has always been very friendly. In her annual presentations to the Publication Editor/ Committee, the Vestnik Director of Communication has consistently given the management and personnel at Temple Daily Telegram high marks for their professionalism. The Vestnik and Communication Department currently includes two full-time individuals — Editor/ Director of Communication Zavodny and Communication Assistant Katherine Morris. Adult lodge and youth club correspondents and members provide a never-ending flow of lodge news, photos, feature ideas, and other communication projects. In 2010, Melanie was honored by the American Fraternal Alliance with the prestigious Marcia D. Heywood Memorial Fraternal Communications Award. The Editor currently serves on the American Fraternal Alliance Fraternal and Communications Section Advisory Council. The Publication Committee expresses its thanks and vote of confidence to Vestnik Editor/Director of Communication Melanie Zavodny for a job well done in leading the Vestnik and Communication Department to new levels. We also recognize the Supreme Lodge for the initiatives that have been implemented. We express thanks to our lodge and youth club correspondents for their input over the years and to all of our members who are helping to spread the good word about SPJST. Even with the considerable efforts that have been made in the communication area, we believe that many exciting communication and growth opportunities exist for SPJST. Best wishes for a successful convention. Fraternally submitted, Jarolyn Popp, Chairman District Seven Bessie Petr, Vice Chairman District Three Helen Kelner, Secretary District Six Floyd Kostelka District One Tammy Whatley District Two Sharon Hohmann District Four Lorenda Baldwin District Five —SPJST—
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By-Law Committee’s Recommendations
Editor’s Note: As in the past, the Vestnik is printing only the articles thereof where the By-Law Committee has recommended changes. By-Law Committee recommendations appear to the right of the article.
2012 Recommendations for Changes to Current By-Laws Accepted by the By-Law Committee to be Presented to the Delegates at the Convention
SUPREME LODGE
The Supreme Lodge is composed of a president, vice president, secretary-treasurer, and seven directors. The body elected by the convention is solely responsible for administration of all business affairs of the Society according to the constitution and by-laws as approved by the delegate-body in the convention.
TABLE OF CONTENTS
Page Nos. Preface ..................................................2 Definitions and Observing By-laws ..............................................6 Convention ............................................8 Standing Committees .....................17-22 By-Law ...................................... 17-22 Finance ........................................17-22 Insurance .....................................17-22 Publication ..................................17-22 Supreme Lodge ..........................4, 22-32 Officers ..........................................32-37 Directors ........................................37-40 Youth Department ...............................40 Fraternal Activities Coordinator Department ..................41 Districts ..........................................41-46 Local Lodges .................................46-58 New Lodges and Lodge Mergers ...58-59 Members: Classes, Admissions, Applications, Transfers, Insurance ....................60-61 Beneficiaries ..................................62-65 Vestnik ............................................66-69 Loans: Real Estate and Certificate; and Assignments .........................69-74 Miscellaneous ................................74-75 Index ...................................................77
PREAMBLE
The main ideal and purpose of this Society, as organized by fearless and peaceloving Czech pioneers in Texas, was and is: To provide and promote fraternal and social fellowship among its members. To endeavor to keep alive the cherished traditions, customs, heritage, culture, and language of our forefathers. And generally, through moral, spiritual, and economic respect, to encourage benevolence and humanity through the Society with sound practical life insurance for its members. This Society operates under the Lodge System and provides for the payment of life, sick, accident or other benefits to its members.
Abbreviations ......................................77 78 idea (housekeeping)
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(a) The Supreme Lodge is responsible for hiring a financial secretary. Effective immediately. 1. The Financial Secretary maintains accounts of various funds of the Society, mailing list of the Vestnik subscribers, files all monthly reports, statements and supplements, keeps accurate accounts of all the receipts and disbursements, and presents these books to the directors for examination. 2. Accepts from the secretary-treasurer bank deposits. 3. Publishes quarterly in the Vestnik an audited account of income and expenses on forms approved by the directors. 4. Prepares an annual report and forwards it to the Commissioner of Insurance at the end of the year. 5. Publishes annually, but not later than June first, an annual valuation report of the Society, based on the report of the State Department of Insurance. 6. Maintains an exact list of all members of every lodge, and on request of a lodge officer list of members of his lodge. 7. Has the power and authority, on behalf of the Supreme Lodge, to check the books of any local lodge any time it is deemed such procedure is necessary for the benefit of the Supreme Lodge, local lodge and the entire Society. Also has the power and authority to impound the official and records of a local lodge on behalf of the Supreme Lodge, if such action is deemed necessary. 8. Notifies each lodge, in the month of October preceding the pre-convention year, as to the number of qualified votes in order that each lodge may elect the proper number of delegates to the convention. 9. Receives premiums and money coming to the treasury of the Society and delivers all of the checks and money to the
(add) Establish a permanent Screening Committee for the purpose of reviewing all qualifications of submitted candidates for Supreme Lodge Officers and Editor/Director of Communication. Gather additional background information and submit the slate of qualified candidates to the delegates 90 days prior to convention. This committee will consist of the Chairperson of the four standing committees. The Human Resources Administrator and two outside members selected by the four standing committee members. delete (housekeeping)
Also, (add comma - housekeeping)
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secretary-treasurer for him to deposit without delay in the various banks selected for that purpose by the Supreme Lodge, in the Society’s name. (b) Legal Counsel will be hired on an “as needed” basis. Effective immediately. CONVENTION
The convention, composed of duly elected delegates, elected according to rules and regulations of its by-laws, is the controlling and legislative body of the Society. Regular conventions are held once in every four years within a 75 mile radius of the Home Office. LANGUAGE
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(add) Anyone seeking a Supreme Lodge office must announce candidacy at least 120 days prior to convention.
All deliberations and minutes in districts and lodges may be conducted either in the Czech or English languages. The minutes of the convention shall be kept and approved in the English language. CONVENTION
ARTICLE 4. (a) The convention of the SPJST is composed of delegates elected from among active members of the local lodges. Every lodge has the right to elect a delegate on a numerical basis from its membership, according to the following scale: 1. From 20-100 members over 16 years of age, one delegate. 2. For each additional 100 members, one additional delegate if the lodge achieves its insurance goal or its members’ goal; if goal not reached, for each additional 150 members, one additional delegate. Note: A lodge meets its insurance goal when it achieves a three year total of 15 percent increase of net premium income (excluding annuity premiums) or a 15 percent net increase of members on base year 2007 for the year of the convention and the two years following the convention. 3. A lodge attaining enough new members for an additional delegate between the annual meeting and 60 days before the convention will fill that position under the provisions of Art. 4(g)3. Transfer of membership will not be counted as additional new members and terminations will be subtracted. 4. A lodge represented by its delegate or delegates is entitled to one vote for every active member and every member over 16 years of age belonging to the Society and local lodge at least 60 days before the convention and who has his premiums and dues paid in full. (b) A lodge chartered during the con-
2011 (housekeeping)
vention year may elect its delegates and substitutes any time before convening of the convention. (c) A lodge chartered or merged or reorganized less than three (3) years preceding the election of its delegates may elect its delegates and their substitutes from among those members having attended a majority of the regular meetings from the date of its charter, merger or reorganization. (d) A lodge losing the required number of members between the time of the election of delegates and convention will not lose delegate or delegates due to such change. (e) Qualifications: Only that member may be elected delegate or substitute delegate who: 1. Qualifies as an active member as defined under Art. 1 of these by-laws. 2. Is present during the election or is absent due to unavoidable circumstances. 3. Attended a majority of the regular meetings during the three years preceding the convention. When there is a conflict with the date of their local lodge meeting, the state youth director, district youth counselors and their assistants attending youth club meetings, state and district field representatives, and state and district fraternal activities coordinator, on official business, may count as attending a regular meeting for this purpose. When there is a conflict with the date of their local lodge meeting, Supreme Lodge members attending official functions of the Society qualify as attending a regular meeting for this purpose. Notification must be given to the local lodge secretary prior to the event with written confirmation made by the party within two weeks following the event. New transferred members’ attendance record of the previous lodge shall be accepted. 4. Is a citizen of the United States of America at the time of election. 5. Is not an insurance agent (underwriter) selling life insurance in competition with the Society. 6. Is not an officer or director of any grand lodge of another fraternal life insurance Society. (f) If a delegate is not in the convention by the second day he will not be seated unless he has a good excuse, such as serious illness, death, or emergencies which prevented him from attending. (g) Delegates and substitutes: 1. Delegates and their substitutes to the convention are elected in the annual meeting preceding the convention, or in nearest succeeding meeting, for the term from one convention to the next convention. 2. When a lodge elects delegates, the nomination and election of delegates is made by whatever procedure is deemed most convenient and expedient by the
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local lodge. If a nominating committee is used, nominations from the floor must be permitted. In the election process a secret ballot may be used. Ballots containing more or fewer nominees are void and not counted. The nominees receiving the highest number of votes are elected. 3. Not more than ten substitute delegates are elected. Such substitute shall be elected in the same manner as the delegates. If a lodge is entitled to an additional delegate, as provided in Art. 4(a)3, or if any one of the elected delegates cannot go to the convention, for whatever reason, the substitute with the highest number of votes fills the first vacancy. The same procedure is continued until all substitutes are depleted, in which case additional delegates are elected, if needed. 4. Delegates approved by the Credentials Committee and the convention, who are present and voting at the convention, shall divide all the local lodge’s votes equally among themselves. Odd vote or votes are taken by the delegate receiving the largest number of votes when elected. (h) No delegate shall vote by proxy. Each delegate will vote his allotted number of votes by separate vote or separate ballot.
ARTICLE 5. (a) The result of the election of the delegates and substitutes shall be forwarded to the secretary treasurer of the Supreme Lodge within thirty (30) days after the election. (b) The Secretary-Treasurer of the Supreme Lodge forwards to the secretary of the local lodge the required forms in duplicate which must be filled out by the secretary and signed by the president and secretary of the local lodge, to certify the election of the delegate and substitute. After completion, one form must immediately be forwarded to the SecretaryTreasurer of the Supreme Lodge and the second must be delivered to the committee on credentials by the elected delegate at registration. The credential form must contain: 1. A statement of the number of regular meetings held by the lodge the delegate is representing. 2. The number of regular meetings attended by the delegate in each of the three calendar years preceding the convention. 3. The mileage from the delegate’s home to the convention site and return. 4. Delegates will be paid the week after the convention. ARTICLE 6. Lodges failing to comply with all required lodge duties and obligations lose their right to representation at the convention. Effective immediately.
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Secretary-Treasurer (capitalize - housekeeping)
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ARTICLE 12. All proceedings of the convention will be conducted according to these by-laws in the following order, unless decided otherwise by a two-thirds vote: (a) Convening of the convention by the President of the Supreme Lodge. He also appoints a temporary committee of seven tellers to tabulate votes during the election of the chairman and cochairman of the convention. (b) Report of the three member committee on credentials. (c) A list of the names of elected delegates and the number of votes each lodge and delegate is entitled to will be made available to the delegates at the beginning of the convention. (d) Election of convention chairman and co-chairman and naming of various committees from among the delegates.
(e) Act on all reports as directed in Articles 3(b) and 35. (f) Deliberate on by-laws. (g) Reports of convention committees. No complaint can be discussed in the convention unless it was first presented to the Grievance Committee and acted upon by that committee. No request for donations, support, salaries or increase of salaries may be presented to the convention until considered, approved or rejected by the Finance Committee. No motion to change by-laws or amendment thereto can be presented to the convention unless the motion or amendment thereto has been submitted to the committee on by-laws so that the committee could study such motion or amendment and deliver its opinion. (h) Miscellaneous business. (i) Following the elections of the Supreme Lodge officers and editor/director of communication in the convention the delegates of the respective districts will convene in separate district meetings. The purpose of these meetings will be to nominate and elect the district director and substitute, member of the committee on By-laws and substitute, member on the Insurance Committee and substitute, member on the Publication Committee and substitute and a member of the Finance Committee and substitute. Each delegate will vote in accordance with Article 4(a-4) of the by-laws. All members of the Supreme Lodge, the editor/director of communication and members of standing committees may also attend and may participate in the discussions, but they do not have the right to vote or to nominate unless they are delegates. (j) Selection of place for the succeeding convention. (k) Installation of all members of the
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(add) Members of the Supreme Lodge, their spouses, or employees of the SPJST Home Office are not eligible to serve as convention chairman or vice chairman or on any convention committee.
VÓ–STNĂ?K
Supreme Lodge, editor/director of communication and all committees. (l) Adjournment of the convention. STANDING COMMITTEES: By-Law, Insurance, Publication and Finance
ARTICLE 18. (a) A seven-member By-Law Committee is elected for the purpose of considering, arranging and recommending of motions, for amending by-laws by the succeeding convention, eliminating conflicts in the by-laws, codifying, rearranging, and having the by-laws printed. (b) The legal counsel may attend any meetings of this committee upon request with the exception of executive sessions and shall give the committee legal advice.
ARTICLE 19. (a) The By-Law, Insurance, Publication and Finance Committees convene immediately after adjournment of the convention and elect from among its members a chairman, vice chairman and secretary. Members of these committees will receive compensation for attending such meetings as adopted by the preceding convention. (b) The By-Law Committee convenes not later than January of the convention year, deliberates and decides on all recommendations for amending the by-laws and may also prepare and present its own recommendations for changes, additions or deletion of any articles, and shall publish all recommendations of the committee in the Vestnik 30 days prior to the convention. The committee on by-laws, elected by the preceding convention, will also function during the convention. (c) In the event additional recommendations are made, and if the committee deems it advisable for the purpose of considering and deciding on such recommendations, the committee will convene during the convention and present its recommendations. (d) Recommendations for changes to the by-laws must be signed and submitted to any member of this committee not later than 60 days prior to the convention. (e) The secretary shall forward all signed recommended changes to the bylaws to the Vestnik for publication. (f) Recommendations may be submitted in writing either in the English or Czech language and will be published in the language in which they were received. (g) Rejected recommendations can be presented by a delegate in the convention during deliberation of the respective article. SUPREME LODGE
ARTICLE 26. To be an elected officer of the Supreme Lodge, an individual must meet the fol-
A (housekeeping)
lowing requirements: (a) Be an active member of this Society for at least five consecutive years prior to his election. (b) At the time of the convention has all his premiums, dues and assessments, if any, paid. (c) Is present at the convention or has an excuse acceptable by two-thirds of the delegates for not being present. (d) Have knowledge of both the Czech and English languages. (e) Is a citizen of the United States of America at the time of election. (f) Must have at least $10,000.00 of insurance or if uninsurable then an annuity in at least that amount. such insurance or annuity to be with SPJST. ARTICLE 28. No person can be an employee of the Supreme Lodge if he is related to any member of the Supreme Lodge within the third degree, as construed under Section 573 of the Government Code of the Texas Revised Civil Statutes.
ARTICLE 31. (a) Regular meetings of the Supreme Lodge are held quarterly, the third week or weekend in January, April, July and October. In case of necessity, the president has the right to change the date of the meeting. Two-thirds of the Supreme Lodge members will constitute a quorum at regular meetings. Effective immediately. (b) After each regular or special Supreme Lodge meeting, each item voted on at the meeting will be listed in the minutes with a record of how each Supreme Lodge officer and district director voted on each issue, excepting only personnel disciplinary matters and matters concerning litigation and threatened litigation. This will be published in the Vestnik as part of the board minutes. (c) The president calls special meetings of the Supreme Lodge in case of necessity. In the event that a majority of members of the Supreme Lodge determine a necessity for a special meeting, and the president refuses to call such a meeting, the majority of members may, by written notice, call all members of the Supreme Lodge to such a special meeting and hold the meeting. The majority of members of the Supreme Lodge will constitute a quorum at special meetings. Effective immediately. ARTICLE 32. (a) The Supreme Lodge is the governing and executive body of the Society between conventions and is authorized to amend any by-law which is in conflict with State or Federal law. The Supreme Lodge has the duty and authority: 1. To adopt such additional plans and tables of insurance including annu-
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Shall continue their active membership during the tenure of their office.
Must have at least $50,000.00 of insurance or if uninsurable then an annuity in at least the amount of $20,000.00. Such insurance or annuity to be with SPJST.
(add) or member
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ities and universal life products, which appear to be beneficial for the Society, according to fraternal insurance laws of the State of Texas. 2. To compensate its sales representatives monthly, or on any other basis, for procuring new members, and occasionally to grant rewards to its sales representatives for successful insurance sales. 3. To discharge employees for incompetence in service and for unbecoming conduct; fills vacancies in the Supreme Lodge and editor/director of communication with the exception of the president, as specified in Article 37(a), and directors as specified in Article 42(h). The Supreme Lodge has the authority to hire any assistants or any subordinates to any Supreme Lodge officer and the editor/director of communication and also the authority to set their salary and remuneration. 4. To investigate all irregularities, disorders and incompetence in office of any member of the Supreme Lodge, and editor/director of communication (after consultation with the Publication Committee), and after thorough investigation and after twenty days’ advance notice to the accused, and after a hearing of such charges, may discharge the accused from his office by a two-thirds vote of the members of the Supreme Lodge. 5. To suspend local lodges for not, performing their local lodge duties, and for irregularities detrimental to our Society. In the event of suspension, and until the suspension is lifted by the Supreme Lodge, one or more of the following shall be in effect: I. The loss of representation at regular and special conventions of the Society. II. All official lodge records and papers shall be relinquished for examination to the Supreme Lodge. III. The name and number of the local lodge will be dropped from the roster of the lodges. IV. The loss of representation at district meetings and other functions of the Society. V. The loss of representation at all youth functions on the district and state levels. VI. No new applications for membership will be accepted. VII. No transfers into the lodge will be accepted. VIII. All meetings and activities normally carried on by such lodge will cease. IX. No local lodge dues will be collected. 6. To suspend or discharge local lodge officers and committees for irregularities in office detrimental to the Society on charges filed by members of the local lodge or the Supreme Lodge, and after twenty days’ notice to the accused and due
hearing thereon, by a vote of two-thirds of the Supreme Lodge. 7. To assign further duties to any member of the Supreme Lodge. 8. To determine the amount of application fee and rate of interest on real estate loans according to prevailing conditions, and the demand for loans to the best interest of the Society. 9. To provide sufficient insurance coverage for the protection of the Society. 10. To set the date of the next regular convention and must publish the date of the convention in the Vestnik no later than January of the convention year. 11. To select the person or persons to record the proceedings of each convention in a manner most suitable under the circumstances. 12. To hold workshops for the training of local lodge officers in the first quarter of each year. 13. To announce annually, after determining the solvency of the Society, the aid in the form of a 25 percent reduction of premiums to be given to all members of the certificates in Classes “A” and “B” whose certificates were in force 35 years or more and who have attained the age of 70 years, and an additional 25 percent reduction when they attain the age of 75. 14. To allow all Class “B” policies to become paid-up whenever the amount of premiums paid equals the face amount of the policy. 15. To approve a contract on an annual basis, if deemed beneficial, for the publishing of the Vestnik, after consultation with a member of the Publication Committee designated by that committee, and the editor/director of communication. 16. To define the duties of the state youth director who will be under the supervision of the president. The state youth director will submit a written report to the Supreme Lodge meetings. 17. To define the duties of the state fraternal activities coordinator who will be under the supervision of the president. The state fraternal activities coordinator will submit a written report to the Supreme Lodge meetings. 18. To do whatever else may be required in the efficient administration of the affairs of the Society. (b) The Supreme Lodge is authorized to adopt formulas to determine the amount of refund to lodges based on premium income from members and other incentive factors after a review of the annual statement and consultation with the actuary. (c) The Supreme Lodge is obligated to seek legal counsel for every violation of the by-laws and request assistance to effect an appropriate remedy. Effective immediately. (d) The Supreme Lodge officers determine the sale or purchase of bonds and stocks by a majority vote. (e) The Supreme Lodge is authorized to
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determine if stocks, bonds, and other general securities, certificates or receipts are held in physical form or under a bank custody account agreement in accordance with the Texas Insurance Code as it applies to a Fraternal Benefit Society. If stocks, bonds, other general securities or certificates or receipts are held under an approved custody account agreement, the bank with corporate trust powers and the custody account agreement must be approved by the Supreme Lodge. All such stocks, bonds, and other general securities or certificates that are held in physical form, must be kept on deposit in a bank safety deposit box rented in the name of the Society in the bank where the stocks, bonds, general securities or certificates are stored and shall not be opened unless at least two or more officers of the Supreme Lodge are present when such vault is opened and while it remains open. At such opening, a statement must be signed revealing the object of such entry in a book kept in the safety deposit box, so long as stocks, bonds, general securities, or certificates are held either in physical form or under an approved custody account agreement. (f) The president, vice-president, secretary-treasurer, and financial secretary devote all of their time and efforts to the service of the Supreme Lodge. (g) Every officer of the Supreme Lodge must publish his convention report in the Vestnik 30 days before the convention. Directors may submit one joint report if they so agree. (h) No agent of any other life insurance company, nor any officer or director of any similar fraternal order, is eligible to membership in the Supreme Lodge of this Society, nor as editor/director of communication or publisher. (i) When the Supreme Lodge orders any supplies, acts on bids or applications for loans or any other matters, a member thereof related to such bidder, contractor or applicant, shall abstain from voting. (j) The amount of the bond for the members of the Supreme Lodge shall be at least the minimum prescribed by regulatory guidelines. (k) All members of the Supreme Lodge, upon termination of their tenure of office, must deliver to their successors all property belonging to the Society. (l) The Supreme Lodge will provide leadership for all SPJST members and others, to promote fraternalism between lodges, to learn the Czech heritage, language and the SPJST history. (m) Supreme Lodge meetings are open to the members except during personnel disciplinary matters and executive sessions concerning litigation and threatened litigation. (n) No member of the Supreme Lodge of SPJST shall be personally liable to SPJST or its members for monetary dam-
ages for any act or omission in the officer’s or director’s capacity as an officer or director except in the following instances: 1. For any breach of the officer’s or director’s duty of loyalty to SPJST or its members; 2. For any act or omission not in good faith or which involves intentional misconduct or knowing violation of the law; 3. For any transaction from which the officer or director received an improper benefit, whether or not the benefit resulted from action taken within the scope of the officer’s or director’s office; 4. For any act or omission for which the liability of an officer or director is expressly provided for by statute or payment of a dividend. (o). The Supreme Lodge shall employ a certified public accountant to prepare a detailed report concerning the condition of the Society annually.
ARTICLE 33. (a) General Income Fund. All money received by the Supreme Lodge in accordance with the laws of the Society governing payment of premiums, as well as all other income, shall be deposited in the Society’s name, in an approved depository bank or banks, where same shall be held, retained, handled, disbursed and allocated in accordance with the laws of the Society, as herein set out and prescribed. Such depository bank or banks must be approved in advance by the Supreme Lodge. (b) Any two or more officers with the advance consent of the Supreme Lodge have the authority to make transfers of funds and pay all general expenses of the Society. (c) All checks issued by the Supreme Lodge in an amount exceeding $500.00 shall bear the signatures of any two officers. Effective immediately. (d) Any check $500.00 or less shall bear the signature of one officer. Effective immediately. OFFICERS, SUPREME LODGE
ARTICLE 37. Vice President (a) The vice president of the Supreme Lodge assists the president and is his suc-
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(add) (p) That each member of SPJST Supreme Lodge* undergo on an annual basis, a review of personal performance against established criteria, for purposes of assessing its effectiveness. The performance of each officer and director is appraised at least annually, through a formal performance appraisal process conducted by the Supreme Lodge. * The Editor/Director of Communication is encouraged and invited to participate in this annual cross-evaluation process at the discretion of the Publication Committee.
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cessor in case of vacancy and would vacate the office of the vice president. (b) Is in charge of the Insurance Department and has direct control of the field agents, general agents and career and associate sales agents. (c) In areas where more sales agents are needed, the vice president has the right to appoint new sales agents whenever he feels it is in the best interest of the Society. Must contact local lodge officers before appointing a new sales agent for any one lodge. All sales agents must be active in lodge activities, namely, attend lodge meetings, and regularly scheduled sales argent seminars. If this requirement is not met to the satisfaction of the lodge, a letter from the local lodge president would be sent to the Supreme Lodge vice president notifying him that the sales agent is not fulfilling his obligation to the lodge. The vice president will contact the sales agent in question and redefine his responsibilities. If the sales publishes cannot comply with what the agents obligations are, such agents contract will be terminated. Effective immediately.
(d) Reviews all insurance applications. (e) Prepares necessary material and sales aids for insurance work. (f) Directs and conducts educational sales programs in every district at least once a year. (g) Publishes, once a month, in the Vestnik a report of the progress of the Insurance Department. (h) Is responsible for organizing new lodges, increasing net gain in membership, and maintaining a substantial growth for our Society with the District Director. (i) Together with the president, promotes appropriate publicity for the Society. (j) Appoints, with the approval of the Supreme Lodge, one, or more if needed, field representative whose primary duties shall be to assist local lodge sales agents. The field representative shall receive such salary and expense allowance as may be fixed by the Supreme Lodge. A person, in order to be considered for appointment as field representative, must be an active member of this Society and does not have all of his insurance with the Society prematurely exchanged for paid-up insurance. (k) Appoints one member to a three member committee on credentials at least one month prior to the convention.
(add) The Supreme Lodge Vice President has the right to appoint new sales agents in areas where he feels the need arises and in the best interest of the Society. A local lodge officer must be contacted before appointing a new sales agent for any one lodge. All sales agents must be active in lodge activities, namely, attend the majority of their lodge meetings and regularly scheduled sales agent seminars. The agent must turn documentation in on a quarterly basis tot he Supreme Lodge Vice President’s office that verifies the meeting he/she has attended. If the above requirements are not met, the Supreme Lodge Vice President will contact the sales agent in question and redefine his/her obligations. Such agent will not be eligible for any incentives, drawings, bonuses, etc. or special recognition on the district or state level and such agent’s contract can be terminated.
DIRECTORS
ARTICLE 39. (a) To be a director of the Supreme Lodge, an individual must meet the following requirements: 1. Be an active member of the Society for at least five consecutive years preceding his election. Also have met
preceding his assuming office. Must
local lodge attendance requirements same as delegates. Supreme Lodge members attending Supreme Lodge meetings, district meetings, and local lodge meetings, on this same date qualify as attending a regular meeting for this purpose. 2. Be a citizen of the United States of America at the time of his election. 3. Be capable of assuming the responsibilities as outlined in the constitution under the heading of “Directors”. 4. Is present at the convention or has an excuse acceptable by two-thirds majority of the delegates for not being present. 5. Has a knowledge of both the Czech language and culture and is fluent in the English language. (b) No member of the Supreme Lodge, nor the editor/director of communication, may hold any other position in the districts. (c) No employee of the SPJST Home Office can serve as a Director. DISTRICTS
ARTICLE 42. (a) The Society is divided into seven districts, which may be updated according to the marketing plan approved by the Supreme Lodge currently composed of the following counties in the State of Texas in which lodges are located: FIRST DISTRICT: Austin, Bastrop (except Lodge No. 18), Brazos, Burleson, Fayette, Gonzales, Lee, Caldwell, Leon, Washington, Robertson and Houston. SECOND DISTRICT: Bell, Falls, Milam, Travis, Williamson, Lodge No.18, Elgin, located in Bastrop County, and Lodge 200, Bruceville-Eddy, located in McLennan County. THIRD DISTRICT: Cooke, Dallas, Denton, Ellis, Erath, Grayson, Hamilton, Hill, Kaufman, Limestone, McLennan (except Lodge 200), Tarrant, Gregg, and Johnson. FOURTH DISTRICT: Baylor, Foard, Haskell, Jones, Knox, Lubbock, Lynn, Runnels, Tom Green, Taylor, El Paso and Wichita. FIFTH DISTRICT: Angelina, Brazoria, Fort Bend, Galveston, Harris, Liberty, Waller, and Montgomery. SIXTH DISTRICT: Brazoria, Calhoun, Colorado, DeWitt, Gonzales, Jackson, Lavaca, Matagorda, Victoria, and Wharton. SEVENTH DISTRICT: Atascosa, Bee, Bexar, Cameron, Frio, Hays, Kleberg, Live Oak, Media, Nueces, Refugio, San Patricio, Wilson, Comal, Karnes and Guadalupe. A newly organized lodge in a county which does not lie within the boundary of an existing district will be annexed, both lodge and county, to the nearest district by
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(add) (d) A director can serve no more than three (3) consecutive 4-year terms.
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the Supreme Lodge. Districts have the right to assemble for consultation, information and administration within the limits of the by-laws of the Society. (b) Members of every district must hold at least one business meeting a year, which may be combined with social and youth activities. (c) Every district formulates its own rules and regulations which must not conflict with the by-laws of the Society. Anytime a district desires to adopt a new program of activity, which is not provided for in Society’s by-laws, it will present its proposal to the district director, who in turn, will present it to the Supreme Lodge for approval. (d) The district must elect or appoint an Auditing Committee, consisting of three or more members. If appointed, the president appoints the majority of the committee and the vice president appoints the minority. This is to be done in the annual meeting. The duties of the Auditing Committee are to audit at least once a year the income and expense of the operation of the district and report to the district. (e) The following district officers shall be elected during the first meeting of the year: president, first vice-president (to serve as fraternal activities coordinator for the district unless the district elects a fraternal activities coordinator as a separate position), second vice-president (optional), secretary, treasurer, fraternal activities coordinator (optional), reporter (optional), district youth counselor, assistant youth counselor, and flag bearer. The district youth counselor is compensated by the Supreme Lodge. The assistant youth counselor will act in place of the district youth counselor when and if the district youth counselor is unable to fulfill his duties, the compensation from the Supreme Lodge being the same as for the district youth counselor. If the district wishes to elect any other assistants to the youth counselor, it may do so in accordance with the following stipulations: l. From 50 to 100 active youth one additional assistant. 2. For each additional 50 active youth one additional assistant. 3. The number of youth will be based on the quarterly reports. 4. The assistants will be paid by the Supreme Lodge upon request by the district youth counselor. The district director may attend meetings of the district officers in an advisory or planning capacity but does not have a vote. (f) In the event of the resignation of the president between district meetings, the 1st vice president will automatically assume that office. Any other positions vacated between district meetings shall be filled by a person designated by a majority of the other district officers who will
then seek ratification of their appointment at the next district meeting. (g) Following the election of the Supreme Lodge officers in the convention, the delegates of the respective districts will convene in separate district meetings. The purpose of these meetings will be to elect the district director and substitute, a member of the Committee on By-Laws and substitute, a member on the Insurance Committee and substitute, a member on the Publication Committee and substitute, and a member on the Finance Committee and substitute. Each delegate will vote in accordance with Article 4(a)4. The district director will act as temporary chairman of the district meeting until the delegates elect a permanent chairman. (h) In case of death, resignation, incompetence or permanent incapacity of a director, his substitute shall immediately succeed to his office and duties. In case of incapacity, but before determination by the Supreme Lodge of permanent incapacity, the director must notify his substitute, who will act as a representative of his district with full authority and compensation, but not the salary, under the title of “acting director”. If the director is so incapacitated that he cannot notify his substitute, or neglects to do so, this will be done by the president of the Supreme Lodge. In the event of the death, resignation, incompetence or permanent incapacity of the substitute director who succeeded the director, the district president calls a meeting of the delegates of the previous regular convention to a place centrally located for the purpose of electing a new director and his substitute for the term to the next convention. This election shall be carried out within thirty (30) days. The results of the election shall be announced to the Supreme Lodge without delay. (i) The Supreme Lodge contributes, annually, to the Youth Fund an amount per year set by the delegates on recommendation of the Finance Committee. This will be based on every insured member who has attained the age of 16 years. This sum will be distributed to the Districts with 80% going to the District Youth Fund, but not less than five hundred ($500.00) dollars to each district and 20% going to the local lodge youth clubs. This distribution will be based on each District’s and youth club’s annual average of quarterly report totals submitted to the State Youth Director. These amounts must be used for the benefit of the youth. (j) Each district will receive an allocation of $3,500 per year from the Supreme Lodge to be placed in the district’s General Expense Fund. This sum is to be used by the district to pay the lodge hosting the District Meeting $750 per meeting with the balance being used to defray the expenses of the district and to promote
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growth for the Society. (k) The Lodge in each district hosting a District Youth Achievement Day will receive an allocation of $750 from the Supreme Lodge. This will be placed in the district’s expense fund. Effective immediately. LOCAL LODGES
ARTICLE 43. (a) Every local lodge determines its own local dues, if any, at annual meetings. (b) All dues and assessments, if any, are paid monthly or for a longer period, according to the wishes of the payor. (c) Members who have their certificates paid up in due course, according to the terms thereof and who wish to remain active members, must pay the local lodge dues and assessments if any as prescribed by the lodge to which they belong, payable annually. (d) All lodges are encouraged to secure and maintain liability insurance in the minimum amount of $300,000 and workmen’s compensation insurance (if the lodge has any employees) and have the carrier/insurer furnish proof of such coverage to the Supreme Lodge. This also includes those lodges which do not own their own lodge facility. (e) In the event of dissolution of a lodge after the payment of all legally binding debts, the remaining assets and funds of the lodge, if any, shall never inure to the benefit of any member of the lodge and no funds or property of the lodge shall be distributed among or revert to any member. Nothing herein will prevent transferring such funds or property to another duly chartered SPJST local lodge, or from one duly chartered SPJST lodge merging with another duly chartered SPJST lodge.
ARTICLE 50. (a) Local lodges must conduct monthly meetings unless previously grandfathered by the Supreme Lodge to meet at least every three months to remain in good standing and have authority to elect delegates to the convention. Meetings are conducted on the day and hour specified by the regulations of the local lodge. Effective immediately. (b) Annual meeting is to be held in November or December, or the first meeting thereafter. (c) Presence of five members of a local lodge in good standing constitutes a quorum for valid transaction of all business of the local lodge, according to by-laws and rules. (d) Whenever a lodge deems it necessary, with the consent of two-thirds of the members present, it may nominate candidates for officers, delegates, and committees in the meeting preceding the annual meeting. (e) The election of nominated candi-
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(b) Members with paid-up certificates wanting to remain active members, must pay any local lodge dues and assessments.
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dates is held during the annual meeting at which time every member has the right to vote for any candidate on his ballot. Elections are conducted in conformity with Article 52(a) of the by-laws. (f) Officers and committees are installed in the regular meeting following the annual meeting or at a time deemed most expedient to the lodge. (g) All outgoing local officers must turn over all records, reference material, booklets, etc., and money to their successor in good order at the end of their term.
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MEMBERS: CLASSES, ADMISSIONS, APPLICATIONS, TRANSFERS, INSURANCE
ARTICLE 71. The local lodge has the right to determine whether it will accept an applicant for membership into that lodge. Upon receipt of notification of a new member, the local lodge must vote to accept or to reject the members no later than the next regularly scheduled meeting.
(a) In the event that (1) a lodge posts an annual lapse rate of 20 percent or greater on the number of new life insurance certificates issued and/or (2) demonstrates a sustained inability to meet essential fraternal directives, the lodge will be considered by the Supreme Lodge to be operating at “marginal” status. Members belonging to marginal lodges or inactive lodges as determined by an earnest effort of review and consideration, will be subject to reassignment to an active lodge, pending necessary protocol and notification. (b) Each lodge member shall receive notification from the SPJST Home Office of the decision to reassign his/her membership to any active SPJST lodge in the State of Texas, along with a complete listing of lodges. Should the member fail to respond to the request for reassignment within two weeks, he/she will be assigned by the SPJST Home Office to an active SPJST lodge nearest his/her current address on file with the SPJST Home Office. In the event that there is no address on file or if the member lives out-of-state, the membership shall be reassigned to the active lodge nearest the regular meeting place of the old lodge. (c) Lodges agreeing to accept this special class of reassigned members will not be held accountable for any lapses in membership that may be attributed to the reassigned members for a period of 36 months, calculated from the date of reassignment. This relates, especially, to any incentives which the lodge may be eligible for under the guidelines of any prevailing lodge incentive program. As such, any lapses credited to the reassigned members will not be held against the lodge that votes to accept reassigned members. (d) Lodges that have experienced a reassignment of membership will remain in “inactive” status for a period of five years from the time of reassignment. At some point during this 60-month period, the Supreme Lodge and/or local membership may find it practical to “reorganize” the
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ARTICLE 74. (a) Every member may secure a transfer of membership if he has paid all premiums, dues or assessments, if any, plus any other obligations, to the local lodge. (b) Any member who desires to transfer to another lodge must complete a transfer request certificate from the Home Office. Local lodge officers must act on the request at the first meeting after receipt of transfer. (c) A member holding a transfer request must file such request with the lodge to which he wishes to transfer within one month after issuance of such transfer request. If he is not accepted by the lodge in the first meeting, he may request admission at the succeeding meeting. If he is not then accepted, he must return his transfer request to his previous lodge and pay all premiums and dues covering the intervening period of time. If he is accepted by the lodge to which he requests transfer then the premiums and dues will
lodge. As such, it will not be necessary to recharter the lodge but merely to “reorganize.” Should a period of five years lapse from the time of reassignment, the lodge will be officially “disbanded” and require the reassignment of a new number for the purpose of organizing and chartering. This measure will be retroactive to include any lodges which over the last 24 months have had members reassigned to active lodges. (e) Once the period of five years lapse from the time of reassignment and provided that there are no forseeable plans to reorganize the lodge, the lodge will be officially “disbanded” and assets residing in the Lodge Management Account and previously assigned to a lodge where members have been reassigned will be redirected to the receiving lodges in an amount proportionate to the number of members who had been reassigned. (f) Upon occasion there arises the desire to pay appropriate and due respect to the lodge for the fraternal commitment which may have predated the reassignment of members. In the event that members are assigned from a previously active and longstanding SPJST lodge, the Supreme Lodge, shall at its discretion, designate an official and honorable “retiring” of the lodge and its identifying number much the same way in team sports that a player’s number is sometimes “retired” as a tribute to that individual for his or her valued commitment. In that regard, retiring a lodge number — especially one which reflects the lives and dedication of generations of SPJST members — should receive deserved honor and recognition. Effective immediately.
be paid to that lodge. If the member has his local lodge dues prepaid the amount is sent to the lodge to which he is transferring. (d) Voting on members with transfer request shall be conducted as outlined in Article 74.
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•—•—•—•—•
In accordance with Article 20 of the ByLaws of the SPJST we, the members of the Committee on By-Laws, certify by our signatures that these by-laws are arranged truly and correctly according to the proceedings of the convention as voted on, adopted and approved by the convention of our Society, in session on June 09 through June 11, 2008, in Killeen, Texas. Ronnie Rieger, Chairman Mildred Holeman, Vice-Chairman Beverly J. Teplicek, Secretary Richard Ford Al Kercho Joe Siptak Bettie V. House
11 through June 13, 2012
Kay Lynn Kovar An explanation key to all abbreviated titles, company names, etc. will be included at the end of the by-laws and the convention proceedings. Examples:
ENC - Education and Nature Center CHMGC - Czech Heritage Museum and Genealogy Center LCRA - Lower Colorado River Authority FAC - Fraternal Activities Coordinator TCGS - Texas Czech Genealogical Society NFCA - National Fraternal Congress of America TOCA - Texans of Czech Ancestry
. . . and others mentioned in the proceedings and minutes.
—SPJST— The Home office will change the lodge number upon receipt of the transfer request and notify the old lodge of the change. The Home Office will forward the transfer request to the new lodge for approval.
If he is not accepted by the new lodge at the succeeding meeting, he may request admission at the succeeding meeting. If he is not then accepted, the new lodge will return the transfer request to the Home Office marked “Not accepted” and the Home Office will notify the old lodge that the member is returning and he must pay
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Finance Committee’s Recommendations
The elected representatives from each district had a voice in the remunerations and recommendations. Recommendations were discussed and voted on by the committee members, and the majority vote was accepted. Our meetings were opened to anyone interested in SPJST. Recommendations made by lodges and individuals were taken into consideration. After deliberating and consulting with the Supreme Lodge Officers and Directors and Editor/Director of Communication on the financial status of the society, our committee is pleased to present the following recommendations and remunerations to the delegates of the 31st SPJST Convention.
Remunerations and Recommendations Delegates........................$220 per day Directors.........................$230 per day Convention Chairman....$305 per day Convention Vice Chairman...........$275 per day Convention Secretaries per day includes extra hours.................$345 per day Parliamentarian..............$230 per day By-Law Committee .......$230 per day Finance Committee........$230 per day Publication Committee..$230 per day Insurance Committee.....$230 per day Members on All Other Committees...............$230 per day Time Keeper ..................$230 per day Sergeant-at-Arms...........$230 per day
**Assistant Secretaries (secretary-intraining) be paid $50 per day. This is in addition to any other remuneration received.
Mileage, 55 1/2 cents per mile, or the IRS adjusted rate, at time of travel for one round trip. Mileage will be paid only to the delegate furnishing the transportation. Delegates using commercial mode of transportation will be reimbursed for their expenses not to exceed 55 1/2 cents per mile, or the IRS adjusted rate, at time of travel. District Directors of each district will encourage delegates to minimize expenses for the district by utilizing carpooling or bus transportation for a group. The District Director will review and approve the delegate’s claim voucher for the district prior to submission for payment by the Supreme
Lodge. No individual may qualify for more than one per day “the higher per day” remuneration. Officers and all past Officers, Directors, Editor/Director of Communication of SPJST, and Officers and Directors of the Czech Heritage Museum and the Education and Nature Center, who are not delegates or paid a per day convention rate be reimbursed meals, mileage, and lodging and two tickets to all convention activities, effective immediately.
Standing Committees After the 2012 convention, all standing committees shall be paid $200 per day. Additional $40 per day for chairman and secretary of standing committees or vice chairman when acting in place of the chairperson. Committee members shall be paid for official meetings ONLY. The Standing Committees that meet on the day before the convention convenes be paid, per day, lodging for one night, and meals, as outlined by the previous convention, at the existing standing committee rate.
Other Committees The Credentials Committee will be paid for working the day before the convention convenes, as outlined by the previous convention, at the existing standing committee rate. Officers’ Salaries January 1, 2013 to December 31, 2013.........$121,216
Compensation for 2014, 2015, and 2016 to be reviewed annually by the Finance Committee. Members of the Supreme Lodge are to assume duties August 1 in the year of their election. Any incumbent officers being replaced shall be relieved of his/her duties July 31 and be paid for the remainder of his/her term.
Longevity Pay Officers will be paid annually $200 for each year of completed employment with SPJST after the 20th year of employment, and adjusted for each year of service added. A newly elected officer in the Supreme Lodge will be paid 75 percent of the scheduled salary for six months.
After six months, the performance will be reviewed and the salary adjusted as deemed appropriate by the Supreme Lodge. The Supreme Lodge will review and make adjustments to the salary as necessary, but not to exceed the salaries authorized by the 2012 convention delegates. Editor/Director of Communication January 1, 2013 to December 31, 2013.......$99,673
Compensation for 2014, 2015, and 2016 to be reviewed annually by the Finance Committee. Any incumbent Editor/Director of Communications being replaced shall be relieved of his/her duties July 31 and shall be paid for the remainder of his/her term. Any replacement of newly elected Editor/Director of Communication will be paid 75 percent of the scheduled salary for six months. After six months, the performance will be reviewed and the salary adjusted as deemed appropriate by the Supreme Lodge. The Supreme Lodge will review and make adjustments to the salary as necessary, but not to exceed the salary authorized by the year 2012 convention delegates. Directors January 1, 2013 to December 31, 2013............$29,029
Compensation for 2014, 2015, and 2016 to be reviewed annually by the Finance Committee. Any incumbent District Director being replaced shall be relieved of his/her duties July 31 and be paid for the remainder of his/her term. In addition to the annual salary, Directors will be paid $200 per day for attending Supreme Lodge meetings, and be paid $100 per evaluation, including final evaluations on real estate, plus mileage at 55 1/2 cents per mile, or IRS rate at time of travel, lodging, and cost of meals, not to exceed $25 per day. The salary includes delivery of scholarships and insurance policies, attending lodge meetings within the district, District Youth Achievement Day, etc., workshops, and all other duties performed for the Society. District Youth Counselors $200 per day, and all assistants, as outlined by the By-Laws, be paid $120 per day, mileage 55 1/2 cents per mile, or IRS rate at time of travel, lodging, and actual cost of meals not to exceed $25 per day while on duty. Any other
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reimbursements will be recommended to and approved by the Supreme Lodge.
Youth Department Authorize the Supreme Lodge to provide quarterly reimbursements of $2 per youth to the local lodge youth clubs. Annual allocations of $142 for each camper attending camp for 2012. These funds are to be used exclusively for the youth. The Finance Committee will review the allocation for 2013, 2014, and 2015 at the annual meeting. All funds are to be accounted for and audited by the District Audit Committee and a report given at the District Spring Meeting. The audit (income and expense) must be filed with the Supreme Lodge President within 30 days after the audit. The District Youth Counselor and District Audit Committee must see that the report is filed. Any unused revenue is to be placed in the District Youth Fund. Authorize the Supreme Lodge to contribute to the district $1.10 per year for every insured member who has attained the age of 16 years. This amount must be for the benefit of the youth.
District Fraternal Activities Coordinators $100 per day and 55 1/2 cents per mile, or IRS adjusted rate at time of travel, lodging, and actual cost of meals not to exceed $25 per day while on duty. Any other reimbursements will be recommended by the President of the Society and approved by the Supreme Lodge. Example: District teams to state tournaments.
Education Czech Language Education Fund: $2,500 annual allocation to institutions teaching the Czech language, with or without credit.
Education and Nature Center The Finance Committee recommends a contribution sufficient to cover delinquent interest through 2012. The Finance Committee will review annually and make recommendations for 2013, 2014, and 2015.
Czech Heritage Museum The Finance Committee recommends a contribution sufficient to cover delinquent interest through 2012. In addition, a $50,000 contribution for the year 2012, thereafter to be reviewed annually by the Finance Committee.
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Rest Homes $2,500 per year, per rest home. The funds are to be placed in the Rest Home Charity fund. Those funds are to be for the rest home residents. $1,500 annual allocation to the S.P.J.S.T. Assisted Living Home. These funds must be used for residents of the Assisted Living Home.
Scholarship Fund Authorize the Supreme Lodge to contribute $40,000 per year to the Scholarship Fund, $7,000 of the $40,000 per year to go into the SPJST Scholarship Endowment Fund. Other Recommendations (1) Officers, Directors, Editor, members on the Standing Committees, and other authorized personal using a personal car for the use of the Society work, and are authorized to travel for the society, be paid 55 1/2 cents per mile, or the IRS adjusted rate at time of travel. (2) Officers and Directors should not be paid a bonus until the Earned Surplus reaches the $24 million level.
(3) $3,000 annual allocation for the upkeep of the SPJST cemeteries, and give the authority to disburse and administer these funds to the Supreme Lodge.
(4) Authorize the Supreme Lodge to reimburse hosting entities for pre-convention activities and refreshments during the convention. Arrangements will be coordinated with the Supreme Lodge.
(5) $1,500 annual allocations to the Czech Heritage Society of Texas (for the purpose of printing and mailing the Cesky Hlas newsletter to members of the society). (6) $1,500 annual allocations to the American Sokol Organization, Southern District. This money cannot be used for legal services or litigation.
(7) A one-time contribution to the Texas Czech Genealogical Society (TCGS) in the amount of $10,000 for their assistance with the Vestnik archiving project.
(8) Delegates and all other parties under remunerations and recommendations get paid for the actual days of the convention, not to exceed three days. (9) Per diems as authorized elsewhere in this recommendation should only be paid one-half of the per diem if away from their home base for less than four hours. Respectfully Submitted: Finance Committee Members 2012 SPJST Convention Killeen, Texas
Herman D. Weise, Chairman (District Four) Michael Galler, Vice Chairman (District Three) Marceil Malak, Secretary (District Five) Thomas Cannon (District One) Edwin Pechal (District Two) Glenn Kaminsky (District Six) Roy Haag (District Seven) —SPJST—
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Insurance Committee’s Pre-Convention Report
The Insurance Committee met on January 7, 2012, and extensively reviewed information, operation, and goals of the Insurance Department. The Insurance Committee found that the SPJST Insurance Department is managed well, functioning in an efficient manner, and setting and reaching its goals in insurance sales and retention of policies. The Insurance Committee acknowledges that our membership drives have fallen short of the goals set by the Insurance Department mostly due to the current economic status of our country. The Insurance Committee commends Supreme Lodge Vice President Gene McBride and the entire sales force for continuing to set high goals and diligently working to meet these goals for the last three years. The Insurance Committee supports new insurance products brought on board, including the Estate Builder plan and realizes the need to remain competitive in the insurance market. The Insurance Committee realizes the need for working on the underfunded Universal Life policies and understands that software issues were mainly responsible for not recognizing that these policies were not going to be funded properly when written. We are pleased to announce that software is now installed that catches these sorts of problems prior to issue. The Insurance Committee also realizes that the reason most of the ULs are underfunded is due to the member taking out policy loans and not paying them back, making cash value withdrawals, and missing premium payments over the life of the policy. The Insurance Committee recognizes the efforts of the Insurance Department in training new sales agents and keeping our present sales force educated. We realize this is a combined effort of the Supreme Lodge Vice President and the presence of state field representatives throughout the state.
The Insurance Committee acknowledges the need for improved member service throughout our organization. We realize that there needs to be a method for tracking contacts to our present membership and that sales agents need to be offered some type of incentive for making these periodic contacts to our membership. We also realize that servicing our current membership is an excellent way to sell new insurance policies to family members of our current members. The following by-law change was proposed to the By-Law Committee: Article 37 (c) Delete second sentence to end of paragraph. Add: Must notify the local lodge officers of the appointment of a new sales agent for that lodge. Add: (d) Administers sales agents contracts and insures that duties and responsibilities in contract are fulfilled.
Reason: Most of Article 37 (c) deals with sales agents’ responsibilities, and Article 37 is detailing duties of Vice President. Duties of sales agents are outlined in agent contracts and should not be part of our by-laws.
Fraternally submitted, Insurance Committee Susan Skrabanek, Chairman District One Jerome Hlavaty, Vice Chairman District Six Helen Hegwood, Secretary District Five Dolores Skrabanek District Two Daniel Roznovsky District Three Leonard Jansa District Four Wendy Pruski District Seven —SPJST—
31st SPJST Convention • June 10 to June 13, 2012 Killeen Civic and Conference Center (KCCC)
3601 South W.S. Young Drive • Killeen, Texas 76543 • (254) 534-501-3888
Sunday, June 10, 2012 12:30 to 4 p.m. 4 to 7 p.m.
Delegates’ Registration Howdy Party Complimentary snacks and cash bar. The Houston Concert Orchestra will perform.
12 noon to 1 p.m.
1 p.m. to 4 p.m. 6:30 to 10 p.m.
Monday, June 11, 2012 7 to 8:30 a.m. 7:30 a.m. 8:30 a.m. 9:30 a.m. 10 a.m. to 12 noon 12 noon to 1 p.m.
1 to 6 p.m. 7 to 10 p.m.
Late Registration Complimentary Coffee and Water Assembly of Delegates Opening Ceremonies Delegates’ Picture Morning Snacks and Beverages Business Session Lunch—available for $7 (Tickets must be purchased in advance) Grilled Chicken Sandwich Baked Macaroni and Cheese Carrot Cake • Bottled Water Business Session No activities scheduled.
Tuesday, June 12, 2012 7:30 a.m. 8 to 4 p.m. 9:30 a.m.
Complimentary Coffee and Water Business Session Morning Snacks and Beverages
Lunch—available for $ 7 (Tickets must be purchased in advance) Barbecue Pulled Pork Sandwich Potato Salad • Baked Beans Banana Pudding • Bottled Water Business Session Convention Banquet - $20 per person (Tickets must be purchased in advance) Suggested Attire: Semi-Formal Social Time: 6:30 to 7 p.m. Dinner: 7 p.m. Cash bar available. Burgundy Beef Tips/Smothered Chicken in Cream Sauce Spring Mix Salad • Garlic Mashed Potatoes Parmesan Crusted • Asparagus Assorted Desserts Dance: 8 to 10 p.m. Music by Fritz Hodde
Wednesday, June 13, 2012 7:30 a.m. 8 a.m. to TBA 9:30 a.m. 12 noon to 1 p.m.
Complimentary Coffee and Water Business Session Morning Snacks and Beverages Lunch –available for $7 (Tickets must be purchased in advance) Mesquite Chicken Salad Sandwich on Croissant Parmesan Ranch Pasta Salad Vanilla Pineapple Cake • Bottle Water