OFFICIAL ORGAN OF THE CROATIAN FRATERNAL UNION OF AMERICA / ALL FOR ONE...ONE FOR ALL VOL. 116 / NO.7 PITTSBURGH, PENNSYLVANIA / WEDNESDAY, MARCH 31, 2021 TWELVE PAGES ALL PUBLICATIONS RIGHTS RESERVED UPS 698 • 800/PERIODICALS POSTAGE PAID AT PITTSBURGH Christians throughout the world will remember, with reverence and prayer, the events which transpired over two thousand years ago when our Lord and Savior, Jesus Christ, gave His life for the redemption of the souls of the righteous. Happy THIS EASTER SEASON in particular leads the faithfulEaster to and provides hope for eternal life to all those who prayerful contemplation of our lives here on earth, believe.” how precious life actually is, our own or loved ones’ ON BEHALF of the National Administration of the ultimate passing, and achievement of eternal life with Croatian Fraternal Union of America, we send God the Father, Jesus His Son, the Holy Spirit and the our best wishes for a blessed Easter to CFU members heavenly host. throughout the world. May the peace and blessing of THE ANNUAL OBSERVANCE of Holy Thursday, Good Friday, Jesus Christ come upon us now and forever. and Easter Sunday, allows Christians to proclaim, “From sorrowful darkness came everlasting light,” and that the “Savior of the world has conquered death EDWARD W. PAZO / National President Illustrations by Mladen Veža. PAGE 2 / MARCH 31, 2021 / ZAJEDNIČAR (ISSN 1087-7460) Established November 6, 1929 - Published Bi-Weekly 2020 Financial CROATIAN FRATERNAL UNION OF AMERICA LORRAINE TURKALL / IVAN BEGG - ASSOCIATE EDITORS Results Reported 100 Delaney Drive, Pittsburgh, PA 15235 Phone: 412-843-0380 Fax: 412-823-1594 e-mail: [email protected] *Surplus Growth Key to Website: www.croatianfraternalunion.org Continued Safety* Unsolicited articles, manuscripts, letters, photos, etc., submitted to THE ZAJEDNIČAR are forwarded at the owner’s risk and Croatian Fraternal Union of America THE ZAJEDNIČAR expressly denies any responsibility for their Founded in 1894 safe-keeping or return. THE ZAJEDNIČAR reserves the right to Periodicals Postage Paid at Pittsburgh. PA By Edward W. Pazo/National President edit, revise or reject articles submitted for publication. POSTMASTER: Send address changes to Zajedničar, 100 Delaney Dr., Pittsburgh, PA 15235 Management Discussion and Analysis Continued From March 17, 2021 issue of Zajednicar. • Part II SURPLUS: FROM THE EDITOR'S DESK... Surplus of the Croatian Fraternal Union of America Lodge 859 increased by $1,860,921 or 3.4% due to the following factors: Postpones positive net income from operations; and, active portfolio Inspired management. April Meeting The gain to surplus was recorded while at the same time by our Faith CLEVELAND, OH - Dear the following factors contributed to reductions in surplus: Members of Žumberak CFU Net realized and unrealized capital losses associated with the Happy Easter, One and All! Christ’s Resurrection fills Lodge 859: We are writing to society’s investment portfolio. our hearts with hope as we commemorate the Holy Season notify you that the April 9th The Society’s solvency ratio at December 31, 2020 was of Easter. It is a time of renewal and joyous celebration meeting of our lodge has been listed as 112.85; an increase from the year previous reported postponed. value. extolling Jesus’s Resurrection from the dead and what it The next meeting will be on When factoring in the additional reserves of AVR and IMR, means to each one of us in our faithful reflections. Friday, May 14, at 7 p.m. the total margin of safety afforded the membership of the During the weeks of Lent leading up to the Blessed Day Please mark your calendars. society equals $64,704,111 a marginal increase of $21,700 of Easter, many people are surely pondering the tribulations We hope to see you at the May meeting. Have a happy and safe from the previous year. A margin of safety ratio of 115.05 is of the past year, are expressing their fears of the pandemic, Easter! then calculated which adds to the protection of our members are lamenting the loss of time with friends and the isolation Linda Russell/Lodge 859 financial welfare and is not readily evident from reviewing from family and are experiencing an overwhelming sense the solvency ratio alone. The IMR amortization contributed of loneliness and despair. Yet again, we are faced with Annual Meeting $164,615 to the summary of operations. celebrating another holiday without large, festive gatherings, The Society considers its surplus position to be adequate and with abiding concerns for our health and that of others of Ontario based on the quality of its invested assets coupled with the near and dear to us. We pause to consider what we have Federation additional reserves associated with the IMR and AVR accounts. missed and question what the future will look like going RESULTS OF OPERATIONS: forward. It is yet another holiday milestone we must mark in Postponed TORONTO, ON - Dear Mem- The Society’s assets increased by the sum of $3,393,303 a different way. bers of Ontario Federation of or 0.69% which was the largest increase since 2017. Net gain Through our faith and in celebration of the Holy Day of CFU Lodges: Unfortunately, we from operations totaled $2,693,983 after refunds to members Easter, our spirits are brightened because we realize we have will not be able to hold our annu- in the amount of $155,964. not been forgotten by God’s Goodness and Blessings. We al conference on April 10. Net Income was recorded as $318,640, which translates to Due to COVID-19, we are not an 88 % reduction from the previous year’s total $2,839,194. are here. We are resourceful. We have found it in our hearts sure when things will be open up to honor this Holy Day and to rejoice in Jesus’ rising from again and we do not want to risk The decrease in net income is attributable to a decrease in the dead. Throughout the throes of this worldwide pandemic, anyone’s health. The best thing Net Investment Income of $1,820,646 and an increase in realized capital losses in the investment portfolio which were we have found ways to reunite and connect with one another to do is wait until the Croatian Park in Mississauga is open and partially offset by the AVR account. over the past year. then we can perhaps meet in Life insurance sales (permanent and term) experienced Yes, our lives have been greatly impacted but we have person and be outside. a decrease from prior year’s level and were recorded as Regarding Ontario Federa- been creative and careful, respectful and caring. We have $6,644,881. Life insurance premium for the year amounted tion activities for this year, our found ways to celebrate, to mourn, to pray, to share, to fraternal picnic is postponed to $2,369,018, which translates to a decrease of 7.58% from communicate, to interact and, most of all, to love one another. until further notice. the year previous total. The decrease in premium is directly Understanding these times has not been easy but perhaps Hopefully, the COVID-19 sit- related to a decrease in renewal premiums coupled with a some of the things we once viewed as extremely important do uation will change by that time decrease in the sale of Single Premium Ordinary Life plans. and we can hold the Man of the not hold the same value they once did. Perhaps simplifying Management continues to actively market life insurance Year banquet to honour of our and annuities to members and prospective members. our lifestyle has opened doors to new experiences of greater Brother Mike Lukicek and give Combined Premium Income decreased by $8,395,022 value to us. the scholarship awards for our or 27% in comparison with the previous year’s total. The The many life-defining milestones we have come to deserving students. The banquet will be held in decrease may be attributed to the aforementioned modest celebrate along life’s way…births, deaths, holidays, weddings, London on September 26. More decline in life premium coupled with a reduction in immedi- graduations, anniversaries, annual family gatherings…may details about the banquet and ate annuity premium line of business. The society’s deferred be celebrated differently these days but, in our hearts, the souvenir book will be published Annuity business remained consistent with prior years and in the Zajedničar at a later date. meaning of each of these treasured life moments is still the contributed $16,067,143 in premium dollars toward the Until we see each other again, combined premium total of $22,291,070. same for those we love and remember on these occasions. I hope everyone is staying safe We may have found it necessary to adjust our priorities, and healthy. Based upon the historically low interest rates available for investment, the society chooses to prudently attract new ease our schedules and look at situations from a different Antun Belan/President Annuity Business in a cautious manner that does not presently viewpoint. It has not been easy, but we have found ways to include payment of commission earnings. This allows for the make it work and just may have created some interesting new Lodge 170 Sets offering of competitive rates of return to contract holders. ways to commemorate meaningful times in our lives. Out of Net Investment Income decreased 7.4% as of December 31, necessity often emerges new experiences and ideas to accept April Meeting 2020 to $22,739,356 as a result of reinvestment risk resulting and appreciate. MERRILLVILLE, IN – CFU in a reduction in average rate of return on portfolio assets.