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Supreme Lodge Meeting Minutes
from Vestnik 2021.05.10
by SPJST
FROM THE SUPREME LODGE
April 20 and 21, 2021 Minutes of the Regular Meeting of SPJST Supreme Lodge held at the SPJST Home Office Temple, Texas
PRESIDING The meeting was called to order by Supreme Lodge Chairman John Engelke on Tuesday, April 20, 2021, at 8:10 a.m.
ATTENDING: Brian Vanicek, President; Delisle Doherty, Vice President; Leonard Mikeska, Chief Financial Officer; Roy Vajdak, Controller; Donnie Victorick - District One/Supreme Lodge Vice Chairman; Jesse Pospisil - District Two; John Engelke - District Three/Supreme Lodge Chairman; Bobby Davis - District Four; Bradley Stavinoha (joining the meeting on a video conference call) District Five; Annie Vahalik - District Six; Regina House - District Seven; Melanie Zavodny, Editor/Director of Communication; Janie Coakley, Recording Secretary.
OPENING OF MEETING The meeting was opened by Supreme Lodge Chairman Engelke with a welcome to all. The Pledge of Allegiance was recited, and a moment of silence was observed in respect to our departed members and in honor of our government officials, military troops, law enforcement, firemen, EMS, healthcare workers, and others affected by COVID-19, especially our members who have been affected. Chief Financial Officer Mikeska led the Supreme Lodge in an opening prayer.
ANNOUNCEMENTS President Vanicek announced there will be three visitors on Wednesday - Larry White and Stephen Gonzalez of AQS Asset Management will be present at 11 a.m. to report on investments and Rob Clift, Executive Director of Camp Kubena, will be on a video conference call at 1 p.m. to report on the camp.
APPROVAL OF SUPREME LODGE MINUTES After review of the minutes of the February 3, 2021, Regular Meeting and March 10, 2021, Special Called Meeting, Director House moved we accept all the minutes as written, seconded by Director Vahalik, and the motion carried unanimously.
MANAGEMENT TEAM MEETING NOTES The Management Team meeting notes were reviewed. Director Pospisil moved to accept the notes as written, Director Vahalik seconded the motion, and the motion carried unanimously.
OLD BUSINESS The executive officers and the Editor/Director of Communication each presented a report on their old business, and each was accepted as presented. Recess for break was from 9:36 to 9:51 a.m.
NEW BUSINESS President Vanicek presented and reported on his new business.
USSI CONTRACT ANNOUNCEMENT President Vanicek moved we stay with USSI at this time and engage in a three-month term contract at the hourly rate proposed in the written bid. The motion was seconded by Vice President Doherty, and the motion passed unanimously.
SUPREME LODGE ALLOCATIONS FOR 2021 The SPJST Finance Committee submitted its pre-convention report in June 2020 for the 33rd SPJST Convention. Due to the 33rd SPJST Convention being advanced to August 13 to 15, 2021, and in the interest of supporting various longstanding SPJST initiatives, the Supreme Lodge considered and took action in the following areas:
President Vanicek presented the proposed recommendation from the Finance Committee for payment of $150 per day for the District Youth Counselors, and all assistants as outlined by the by-laws, be paid $100 per day, mileage paid at the current IRS rate at time of travel less 20 cents per mile, lodging, and actual cost of meals with receipts not to exceed $35 per day while on duty. Any other reimbursements will be recommended to and approved by the Supreme Lodge. Per diems should only be paid one-half of the per diem if away from their home base for less than 4 hours. To be reviewed annually by the Finance Committee. Recommendation was accepted and approved unanimously.
Director Victorick moved that any time the 20 cents mileage decrease payment per mile is mentioned, it be removed. President Vanicek seconded the motion, and the motion carried unanimously.
Director Victorick moved to authorize the Supreme Lodge to allocate $195 per youth camper for each camper attending camp for 2021. These funds are to be used exclusively for the youth. Chief Financial Officer Mikeska seconded the motion, and the motion carried unanimously.
Director Vahalik moved to authorize the Supreme Lodge to contribute to the district 80 cents per year for every insured member who has attained the age of 16 years. This amount must be for the benefit of the youth. Director Victorick seconded the motion, and the motion carried unanimously.
Director Victorick moved to remove the sentence “To be reviewed by the Finance Committee” from any and all proposed Finance Committee recommendations. Director House seconded the motion, and the motion carried unanimously. Director Stavinoha moved to authorize a $10,000 contribution plus will match a grant of monies raised up to $25,000 to the Czech Heritage Museum for operations. Vice President Doherty seconded the motion, and the motion carried unanimously.
Chief Financial Officer Mikeska moved to authorize the Supreme Lodge to contribute $25,000 per year to the Scholarship Fund. Controller Vajdak seconded the motion, and the motion carried with 10 in favor and one in opposition. Voting in favor: President Vanicek, Vice President Doherty, Chief Financial Officer Mikeska, Controller Vajdak, Director Pospisil, Director Engelke, Director Davis, Director Stavinoha, Director House, and Director Vahalik. Voting in opposition: Director Victorick.
Recess for break was taken from 2:50 to 3:04 p.m.
President Vanicek moved to reconsider the vote on allocation to the Scholarship Fund, as he had previously voted on the prevailing side noting that his “motion to reconsider” would require a two-thirds vote to pass. Vice President Doherty seconded the motion, and the motion passed unanimously. Director Victorick moved we contribute $30,000 to the Scholarship Fund and any unused remainder go to the Endowment Fund. President Vanicek seconded the motion, and the motion carried unanimously.
Director Victorick moved to authorize the Supreme Lodge to administer and disburse $600 per year per cemetery for the upkeep of each of the SPJST Cemeteries. Director House seconded the motion, and the motion carried unanimously.
Director Victorick moved to authorize a $1,000 contribution to the Czech Heritage Society of Texas for its publication which promotes SPJST. Director House seconded the motion, and the motion carried unanimously.
There was a discussion about the recommended charter committees for the Supreme Lodge. Director Victorick moved to proceed and establish the three committees when the time comes. The three committees are the Governance Committee, Communication Committee, and the Compensation Committee. Director Pospisil seconded the motion, and the motion carried unanimously.
BY-LAW REVIEW The by-laws and recommendations for changes were reviewed extensively.
SUPREME LODGE RECOMMENDATION REVIEW Controller Vajdak moved to add to the Operations Manual: The Investment Committee, by majority vote, approves all commercial first lien mortgages and investments not covered by a discretionary agreement with an Investment Manager. The members of the Investment Committee are the President, Vice President of Marketing, Chief Financial Officer, and Controller. Director Victorick seconded the motion, and the motion passed unanimously.
Recess for the day was taken at 6:35 p.m., and session resumed on Wednesday, April 21 at 8 a.m. Janie Coakley was ill and absent on this day.
RESOLUTION OF RESPECT Chief Financial Officer Mikeska presented a Resolution of Respect for Honorary Financial Secretary Jerry Mikulas.
RESOLUTION OF RESPECT
WHEREAS, the Supreme Lodge and the SPJST membership was saddened to learn of the death Jerry Mikulas; and,
WHEREAS, Brother Mikulas left surviving him to mourn his departure, his wife Betty; his three children, Donna Mikulas Heatherley Martin and husband Craig of Temple, Wade Mikulas and wife Michelle of Highland Village, and Chad Mikulas and wife Heather of Temple; eight grandchildren; three great-grandchildren; and a host of relatives, friends, and neighbors, all of whom, with all the members of the Supreme Lodge SPJST, mourn his departure: and,
WHEREAS, the members of the Supreme Lodge SPJST desire to record their sorrow at the death on April 15, 2021, of Brother Mikulas, who had worked harmoniously and diligently for the good of the Society and served SPJST for more than 50 years, and 34 of those years in the capacity of Supreme Lodge Financial Secretary. Brother Mikulas was incredibly proud of his job and the people he worked with, and he will be missed and remembered by his many friends mourning his passing. Brother Mikulas leaves an enduring legacy of loyal service to the members of SPJST.
BE IT THEREFORE RESOLVED that the Supreme Lodge of SPJST meeting as a body in session on April 21, 2021, hereby gives its formal expression of sympathy and does hereby note in its records the passing from this life of a loyal member, who was respected by his associates and loved by his family and friends.
BE IT FURTHER RESOLVED that a copy of this resolution be tendered to the family as an expression of heartfelt sympathy in their bereavement.
Chief Financial Officer Mikeska moved approval of the resolution, Director Victorick seconded, and the motion received unanimous consent.
INVESTMENTS Director Victorick moved ratification of investments for the period from January 1, 2021, to March 31, 2021. Director House seconded, and the motion carried unanimously. Director Victorick moved approval of annuity payout rates for the period from May 1, 2021, to July 31, 2021. Director Vahalik seconded, and the motion carried unanimously.
ACTUARY REPORT Actuary Glenn Tobleman joined the meeting by video conference and reviewed the Actuarial Opinion and Memorandum for 2020 with the Supreme Lodge. The Actuarial Opinion was prepared in accordance with the NAIC Annual Statement Instructions for Life and Health Insurance Companies. He reviewed his certifications of reserves and cash flow testing scenarios. Mr. Tobleman announced cash flow testing results are better this year than last, and he was able to issue a clean opinion for the company on cash flow testing.
Brief recess was taken.
NEW BUSINESS CONTINUED Controller Vajdak gave his report on financials and the external audit progress by JRBT.
Director Stavinoha reported for the internal audit committee.
SCHOLARSHIP WINNERS The Supreme Lodge took up the matter of scholarships and announced that there were 39 scholarship and leadership grant winners. The Supreme Lodge drew names for the endowed scholarships with award designations.
AQS INVESTMENT REPORT Larry White and Stephen Gonzalez were present and gave a report on investment progress.
Recess for lunch was taken from 12:10 to 1 p.m.
CAMP KUBENA Executive Camp Director Rob Clift presented a report on Camp Kubena via video conference.
Controller Vajdak moved that beginning in 2022, we will charge a fee per SPJST camper after review and study by the Camp Kubena Advisory Committee for decision no later than the October Supreme Lodge meeting. Director Stavinoha seconded the motion, and the motion carried unanimously.
Brief recess was taken.
DIRECTORS’ NEW BUSINESS Director Victorick moved that there be a study conducted regarding the Scholarship Program to be presented in the October Supreme Lodge meeting and the committee should be headed by President Vanicek and members he selects. Controller Vajdak seconded, and the motion carried unanimously. Director Victorick moved that Vice President Doherty’s probationary period be ended at this time. Director Davis seconded, and the motion carried unanimously.
Controller Vajdak moved that we approve full compensation for Vice President Doherty effective May 1, 2021. Director Pospisil seconded, and the motion carried.
The results of a board assessment survey were reviewed.
ADJOURNMENT There being no further business, Director Davis moved for adjournment. Director House seconded the motion, and the motion to adjourn carried unanimously.
Supreme Lodge Chairman Engelke adjourned the meeting at 4:21 p.m. The next regular meeting of the Supreme Lodge will begin at 8 a.m. on Tuesday, July 20, 2021. Janie Coakley, Recording Secretary Leonard Mikeska, Chief Financial Officer —SPJST—
DISTRICT DIRECTORS’ REPORTS
District One Director Donnie Victorick
Activity Report
February—Supreme Lodge meeting (online); Lodge 9, Snook meeting; marketing/branding planning session at Home Office; American Fraternal Alliance Enterprise Risk Management webinar.
March—Lodge 9, Snook meeting; Lodge 38, Kovar meeting; Special Called Supreme Lodge meeting (online); Finance Committee meeting; Lodge 40, El Campo-Hillje meeting.
April—Sales agents’ continuing education class on universal life in College Station; Lodge 13, Dime Box meeting; Lodge 40, El Campo-Hillje; funeral service for Honorary Supreme Lodge Financial Secretary, Jerry Mikulas; AQS webinar reviewing fraternal peers; Supreme Lodge Audit Committee meeting; Supreme Lodge meeting.
Commentary
Our Supreme Lodge meeting has been a very successful endeavor. We were able to accomplish a great deal and also were informed of many things which all of us needed to hear. I look forward to the upcoming days ahead and the future of SPJST. We are making many right decisions and improving the efficiency of our organization. Technological advancement is a must, and a very strong marketing campaign is being put into place. Our investments are continually improving with a new emphasis on the philosophy of investing. We now have a uniform training program for all of our sales agents throughout the state. By unifying
our efforts, working closely together with the same vision, goals, and objectives is a blessing for SPJST. I want to thank everyone for our team approach of conducting business and deliberating on the strategies to be developed for the future. We are definitely moving in the right direction to overcome the setbacks of the last several years. We must all continue to work together, respect one another, and lead by example with a vision for SPJST. It is great to have our new Supreme Lodge members who have added value to our deliberations, discussions, and decisions. For our membership, we ask you to be patient and help us continue moving in the right direction by giving us your input. Our future is bright. Donnie Victorick, FICF, CFFM District One Director
District Two Director Jesse Pospisil
Activity Report
January—Lodge 18, Elgin meeting and installed officers; sales meeting with Vice President Delisle Doherty, District Two RGA Sabino Garcia, and Sales Agent Albin Machu of Lodge 29, Taylor.
February—Supreme Lodge meeting (online); marketing/branding planning session at Home Office; Audit Committee telephone conference; Audit Committee meeting (online).
March—Funeral service for Curtis Wolf of Lodge 80, Holland; Supreme Lodge meeting (online); Finance Committee meeting; Lodge 187, Round Rock meeting and installed officers.
Commentary
This was a very productive meeting due to excellent information produced by the Supreme Lodge officers. I feel the future of SPJST is much brighter due to our present financial advisors (AQS) and the increase in insurance sales. I also want to thank the directors for their input for the many decisions we had to make. Fraternally, Jesse Pospisil District Two Director
District Three Director John Engelke
Activity Report
February—Fraternal Focus webcast; marketing/ branding planning session at Home Office; virtual meeting; webcast meeting.
March—Lodge 6, Cottonwood meeting; visitation in Bartlett for Curtis Wolf of Lodge 80, Holland; insurance webinar; Finance Committee meeting; visit Pivovar Hotel with President Brian Vanicek in Waco; Lodge 66, Waco meeting; Fraternal Focus webinar; S.P.J.S.T. Senior Living meeting at SPJST Home Office in Temple.
April—Sales agents’ meeting in Temple; funeral of Honorary Supreme Lodge Financial Secretary Jerry Mikulas in Temple; Audit Committee meeting in Temple; Supreme Lodge meeting in Temple.
Commentary
Thank you to the officers and directors for a very informative meeting. Thank you to Melanie for the great job on the by-law changes. It was great to have a face-to-face meeting and exchange ideas with each other. Please stay safe and help your lodges get back in the swing of things. Please be prepared for a great convention in August, and I hope everyone can attend. Fraternally, John Engelke District Three Director/ Supreme Lodge Chairman
District Four Director Bobby Davis
Activity Report
February—Supreme Lodge meeting (online).
March—Meeting with prospective member Eric Morgan; meeting with Vice President Delisle Doherty and District Four sales agents; continuing education class on understanding universal life; worked with member Slaton in Midland; Special Called Supreme Lodge meeting (online); Finance Committee meeting.
April—Set up booth for San Angelo Rodeo; continuing education class on servicing orphan members (online); work booth at San Angelo Rodeo.
Commentary
I would like to thank the officers for their reports and Delisle on his hard work and many hours of work to turn the insurance department around; also Delisle working with Brian in the fraternal department showing the agents it’s not just about insurance, but we have the fraternal side of SPJST. Times are changing, and we need to stay focused on the future and not look back at the past on sales and fraternal activities. We are all working together for the betterment of SPJST and that is one of the best things that has happened this year. We still have improvements to make, and it will take time. Thank you all for a good meeting. Fraternally, Bobby Davis, FICF, CFFM District Four Director
District Five Director Bradley Stavinoha
Activity Report
February—Supreme Lodge meeting (online); marketing/branding planning session at Home Office; Lodge 81, Needville meeting; ERM training (online); Audit Committee meeting (online); youth webcast (online).
March—Supreme Lodge meeting (online); Audit Committee meeting (online); Lodge 88, Houston; Supreme Lodge meeting (online); American Fraternal Alliance roundtable meeting (online); sales agents’ meeting in Sugarland; Lodge 81, Needville meeting.
April—Equisoft demonstration (online); Lodge 81, Needville meeting; Audit Committee meeting; Supreme Lodge meeting.
Commentary
For the April Supreme Lodge meeting, there were lots of positives to look at including increases in book yield since June 2020. This was driven by our new investment advisors and our diversification into more real estate investments with ILS and commercial deals that AQS has steered SPJST into that offer much higher yields. We see almost $1 million increase in returns.
Our vice president’s marketing and sales strategies are fruitful and seeing success. His detailed business plan has been partly implemented. SPJST looks for a positive sales growth, and we are confident that by July 2021, we will have matched 2020 insurance and annuity sales figures.
Much time was spent on going over the by-law recommendations. These changes will make a positive impact on the Society. SPJST will have better governance and become more efficient.
Our audit committee spent much time evaluating each department. We went over the BKD study and what each department had implemented to become more efficient. We also went over their key performance indicators (KPIs) to narrow down what items we can look at that quantifies how well each department is doing.
Camp Kubena, as always, was discussed. We upgraded the maintenance barn. With Rob running this facility, we see a very positive outlook. SPJST will need to invest more into the facility over the next few years to see a profit. I anticipate a quick return on investment (ROI) after all upgrades are done. There are several other camps operating in Fayette County, and all are profitable.
The Supreme Lodge is constantly looking at ways to cut expenses and make SPJST more efficient. The Supreme Lodge seems to be in some type of online meeting weekly. Supreme Lodge members have weekly contact with each other with one-on-one communication either by email or phone calls.
District Five continues to lead the way in insurance sales. Jennifer, Kerry, and Janice are ‘selling machines’ out in the field. Fraternally, Bradley Stavinoha District Five Director
District Six Director Annie Vahalik
Activity Report
February—Supreme Lodge meeting; Fraternal Focus webinar; met with president of Lodge 40, El Campo-Hillje to discuss upcoming strategic planning session; youth webcast.
March—Lodge 151, Wharton quarterly meeting; Lodge 40, El Campo-Hillje quarterly meeting and strategic planning session; District Six Cemetery Association meeting; delivered signed papers to attorney to complete cemetery donations to Diocese of Victoria (Moravia and Shiner); Lodge 4, Hallettsville quarterly meeting.
April—Lodge 40, El Campo-Hillje strategic planning session.
Commentary
It was a very productive meeting. Much thought, discussion, and consideration has gone into all the matters presented by the Supreme Lodge. I really appreciate all the presentations, detailed reports, and explanations. These are very helpful. Congratulations and best wishes to all the scholarship winners. We are all working hard to keep SPJST strong as we move forward. Fraternally, Annie Vahalik District Six Director
District Seven Director Regina House
Activity Report
February—Supreme Lodge meeting (online); Lodge 107, Floresville meeting; Fraternal Focus webinar; marketing/branding planning session at Home Office; Enterprise Risk Management webinar, hosted by American Fraternal Alliance; youth webcast.
March—Lodge 117, Robstown meeting; Lodge 202, Jourdanton meeting; Special Called Supreme Lodge meeting (online) - request to approve Illustrate, Inc.; Finance Committee meeting at SPJST Home Office in Temple; Lodge 79, Corpus Christmas meeting.
April—Fraternal peer review webinar, hosted by AQS.
Commentary
I want to thank everyone for such a productive meeting. We had a lot of ground to cover and because we are able to discuss and work together, I feel that we were able to accomplish a lot in the past two days. I have said before that I am amazed at how much I am learning, and I want to thank my fellow Supreme Lodge members for guiding me and their patience with me as I learn.
I also want to thank Rob Clift for the great work he has been doing at Camp Kubena. I am extremely excited to be able to be a part of the 2021 camping season. Fraternally, Regina House District Seven Director —SPJST—
From the Desk of SPJST Vice President Delisle Doherty It’s Your Life
My Children Don’t Need Life Insurance
As a grandfather of five beautiful grandchildren, this may be one of the hardest articles I ever have to write. This is one topic that is sensitive to all parents and grandparents. Every day we hear someone say we don’t need life insurance on our children; they are very healthy. It’s not that the kids don’t need life insurance, we don’t want to think about such tragedy.
When it comes to death in our youth, health rarely has anything to do with it. Truth of the matter is every day we either see a story on the news or read it in the paper about the tragic death of a child or young adult. Many of these deaths are sudden and unexpected. At the same time, we hear about funds being set up to help support the families . . . families who can’t afford to bury their child.
As we go through our lives, the questions we really need to ask are: Are we ready to bury our child? Do we want to fight a financial issue during what may be the hardest time of our lives? That is a battle that does not have to be fought.
According to the Texas Department of State Health Services, in 2014, death rates for children between the ages of one and 14 were staggering . . . more than 200,000 fatalities between the ages of 1 and 14.
The cost of children’s life insurance certificates (policies) are pennies on the dollar. They are at their healthiest, and the money is locked in for life. Buying life insurance certificates for children will save them money in the long run. For example, a two-year-old female can get a $50,000 whole life certificate for around $27 per month and a $100,000 for around $47 per month. At $100,000 and over, the costs per thousand are at its lowest point. That same female at age 37 would pay $59.85 for $50,000 and $113.31 for $100,000 in whole life, and that is if she is still healthy. The two-year-old will be locked in at the lower prices for life. At age 65, that two-year-old would still only be paying $27 per month or $47 per month. It is always best to buy enough for their whole life while they are young and healthy than to make them pay much more later.
Little secret: I purchased a $100,000 universal life with increasing death benefit and $50,000 whole life on each of my grandchildren when they were less than one month old. If they decide to cash the universal life in for college or buy a house, get married, take a trip, etc., they still have the $50,000 whole life. If they get married, buy a house, have children, etc., they will have over $150,000 and may not need to buy any more.
If you know anyone with children, please have them contact an SPJST sales agent, regional general agent (RGA), or me. We will be more that happy to educate them on the importance of coverage early on.
If you have any questions, my door is always open, figuratively and literally. —SPJST—
