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Polish Roman Catholic Union of
America
State of the Union
Dear Members:
This is my 12th consecutive
State of the Union message to our members and it is one of the most
difficult reports presented. This report is a reflection of the economic
condition of our nation, as well as the world. No longer can we, as
individuals or as an organization, be isolated from the actions of our
leaders, either in Washington or internationally.
Some of the positive
factors regarding the Polish Roman Catholic Union of America are as follows:
The total assets grew from $169,537,651 in 2008 to $178,199,480 in 2009.
Considering a decrease in surplus, this was still $8,661,829 more in assets
than our previous year. This reflects a positive 5.1% increase in assets.
In the twelve years that I
have been reporting to you, our assets have grown by $84,777,831. This is a
91% increase. The last time that our asset level was close to this amount
was in 1995. At that time, the PRCUA assets were $82,166,897.
Now, I would like to
address the issue of our nation's and the world’s economic order. Economic
action was taken to prevent a severe economic depression in America. The
pressure was to reduce interest rates. As most of you know, zero interest
rates have been the policy of the Federal Reserve for over a year. This
behavior had an adverse effect on our investment return.
The PRCUA earned $709,333
less in net investment income in 2009 than in 2008, even though we had more
funds to invest. Our overall return on net invested income to mean assets
was 5.03% in 2009. Compare this with the year 1995 when our return was 6.9%.
Why was there a drastic reduction in interest during 2009? Because there
were over $90 million in federally insured or commercially issued bonds of
high interest rates that were redeemed. We had to purchase bonds at a lower
interest rate.
However, we are very
fortunate that in our annuity program we were able to maintain a 1.55%
spread. Our members received a maximum rate of return compared to other
fraternal organizations or other companies.
Our total dividend paid on
a cash basis to our members in 2009 was $761,097. This year we have reduced
the annual dividends to a level to reflect our ability to meet expenses and
issue a respectable return of premium to our life insurance members, as
reflected by our economic conditions.
As of this month, no
special dividends have been declared.
Since April of 2009, the
administration of your fraternal has reduced expenses. The salaries of the
officers have been reduced back to the 2008 level. There has been a
reduction in annuity interest rates, as well as a reduction in mileage
reimbursements for all.
The Narod Polski newspaper
has been changed from a semi-monthly publication to a monthly publication.
Donations and matching funds have been reduced, along with other
adjustments, to a lower level.
As of February of this
year, an estimated savings of $545,657.37 has been tabulated. This is 85% of
the goal set by the Budget and Grievance Committee in March of 2009.
The National Association of
Insurance Commissioners requires us to follow their ratings on all types of
stocks and bonds. What was rated #1 is now rated #4 and this requires
additional reserving of our funds from the surplus. In 2009, this amount was
$630,000.
For a complete report,
please review the PRCUA ANNUAL
STATEMENT for the year ending December 31, 2009.
Where are we going? I have
asked our Board of Directors, agents and members to bring in new members.
Membership programs, in honor of our
137th Anniversary and
our 60th Convention, have been instituted to provide new members with
low cost life insurance. I am asking all of our members to promote these
programs with the hope that each delegate will bring at least one new
membership application to the Convention.
The PRCUA Membership Drive
to help Societies is still on-going. A Society will receive $10.00 for each
of the Society’s new deputy- generated life insurance certificate issued.
After five new certificates are issued, the Society will have its name
placed in a drawing to win an additional $2,000. This drawing will take
place during the upcoming PRCUA National Quadrennial Convention in August,
2010.
The PRCUA Annuity Programs
still pay members a higher interest than can be earned in a bank savings
account.
The minimum deposit to
start an annuity is only $300.
In these uncertain economic times, it is wise to save for the future, and it
makes good sense to get the most for your money with a PRCUA annuity.
Membership is key to our
fraternal’s continued success. I urge all PRCUA members to spread the word
about the Polish Roman Catholic Union of America and its fraternal benefits
to family members and friends. Your fraternal supports educational,
charitable, benevolent, ethnic, patriotic and religious activities for the
benefit of its members and the
community at large. Now, I call upon all of our members to accept
responsibility of supporting your fraternal by doing whatever you can to
increase PRCUA membership. It’s a win-win situation for everyone.
Fraternally yours,
Wallace M. Ozog, FICF
National President
 PRCUA
Annual Statement for the Year Ending December 31, 2009
137th Anniversary and
60th Convention Specials
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