2018-10-23T14:44:24-07:00 2017-12-31 990 2017-01-01 390201015 CATHOLIC FINANCIAL LIFE CATH 4142736266 1100 W WELLS ST MILWAUKEE WI 53233 Jeffrey Tilley Chief Financial Officer 4142786583 2018-08-15 104.129.196.195 2017 2018-06-14 16:35:46Z Jeffrey B Tilley 1100 W Wells St Milwaukee WI 53233 312924020 0 0507 X WWW.CATHOLICFINANCIALLIFE.ORG X 1885 WI Catholic Financial Life, a faith-based membership organization, puts Catholic values in action by serving God through serving others, providing financial security and enhancing quality of life. The Society offers individual life insurance and annuity products through a network of Financial Advisors. Members also have access to fraternal benefits that include child cancer and orphan benefits, will preparation benefit and social activities through the chapter system. The Society is committed to hosting and supporting fraternal activities and community outreach. In 2017, members volunteered over 103,000 hours of service valued at nearly $2.5 million to extend their hand to help others in need. Over $1.8 million in contributions were raised through the Society's efforts to promote Catholic education, Diocesan programs, civic causes and more. 15 13 192 16576 0 0 3110 2830 84260885 78713394 76515967 75841989 2469728 2828913 163249690 157387126 1276673 1040946 122622085 116505311 12511853 11310921 0 0 0 14982092 16477506 151392703 145334684 11856987 12052442 1620087795 1641577299 1542898663 1553525352 77189132 88051947 Catholic Financial Life, a faith-based membership organization, puts Catholic values in action by serving God through serving others, providing financial security and enhancing quality of life. 0 0 144067375 0 157384296 Financial Security: The Society operates to provide its members long term financial security through the offering of individual life insurance and annuity products. Members are served by a network of Financial Advisors that provide financial planning, estate planning and other financial services. Each member has access to their financial products and information through their own Financial Service Advisors and/or Home Office Member Services Representative. 1267309 0 2830 Fraternal Benefits & Community Outreach: The Society exists to benefit its members and community in non-financial ways. This includes faith based education, fraternal social events and community outreach. The Society is committed to provide fraternal benefits including child cancer and orphan benefits, will preparation benefit and the coordination and support of community service. In addition to monetary contributions over 103,000 hours of service were donated to support various Diocesan and community programs and events in 2017 valued at nearly $2.5 million. 0 0 0 145334684 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 35091 0 1 192 1 0 0 0 0 0 0 X 15 13 0 0 1 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 CA X Jeffrey B Tilley 4142786583 1100 W WELLS ST MILWAUKEE WI 53233 Sandra Dempsey Director 3 0 X 8550 0 0 Dennis N Kabat Director 3 0 X 17525 0 0 John F Kenawell Director 3 0 X 17700 0 0 Joseph G Kopinski Director 3 0 X 3975 0 0 Archbishop Jerome E Listecki Director 1 0 X 12000 0 0 Allan G Lorge Director 4 0 X 21600 0 0 John C Mack Director 5 0 X 29700 0 0 Lisa Mick Director 3 0 X 13800 0 0 Patrick J Murphy Director 4 0 X 21600 0 0 Susan Obermiller Director 3 0 X 17100 0 0 Paul B Pinsonnault Director 3 0 X 15900 0 0 Kristine Rappe Director 3 0 X 12525 0 0 David C Singer Director 3 0 X 17525 0 0 Michael Stivoric Director 4.00 0 X 19200 0 0 Marion Strauss Director 3 0 X 15900 0 0 William R O'Toole President and Chief Executive Officer 45 1 X X 458406 0 77514 Jeffrey B Tilley Secretary and Chief Financial Officer 45 0 X X 262464 0 48034 John T Borgen Senior Vice President - Membership 45 2 X 186275 0 33512 Rogelio Cabral Vice President - Sales 45 0 X 241130 0 35970 John Callen Chief Investment Officer 45 0 X 186975 0 30695 Elizabeth E Gabrys Vice President & Chief Actuary 45 0 X 172644 0 10257 Joseph E Gadbois Vice President - Fraternal Outreach 45 0 X 114613 0 23505 Kristen L Mueller Vice President - Human Resources 45 0 X 155020 0 17762 Charles A B Haas Vice President - Business Development 45 0 X 55528 0 14481 Jeffrey R Piotrowski Senior VP IT & Insurance Services 45 0 X 238125 0 33823 Kerry E Riemer Controller 45 1 X 156493 0 26684 Lisa Flanary Former CEO Degree of Honor 45 0 X X 474958 0 22497 Daniel Lloyd Regional Sales Manager 45 0 X 125608 0 8055 Kristin O'Connell Regional Sales Manager 45 0 X 136421 0 28244 Michael G Soczka Regional Sales Manager 45 0 X 123616 0 7756 Erica Oberg Former CFO Degree of Honor 45 0 X X 239349 0 20333 3572225 0 439122 28 1 1 0 Wellington Management Co LLP PO Box 13694 Newark NJ 071880694 Investment management 1068852 American Benefit LLC PO Box 41 Norfolk NE 68701 Independent insurance agent 487754 Asset Allocation & Management Co LLC 30 W Monroe St 3rd Floor Suite 212 Chicago IL 60603 Investment management 285127 John Augustine 2665 S Moorland Road Suite 212 New Berlin WI 53151 Sales advisor 273889 Ernst & Young LLP 3712 Solutions Center 0 Chicago IL 60677 Financial services 273500 X 0 2830 0 0 0 0 0 2830 Premium Income 524113 78498920 78498920 0 0 Commissions and Exp Allowances on Reins Ceded 524113 214474 214474 0 0 0 0 0 0 78713394 73287646 73287646 0 0 0 0 0 0 0 0 0 0 2075135 0 1599609 0 475526 0 475526 475526 0 0 154059311 2432317 151720168 2217117 2339143 215200 2554343 2554343 0 0 0 Net allocated investment expense 524113 2320144 2320144 0 0 Miscellaneous income 524113 33243 33243 0 0 0 0 0 0 2353387 157387126 157384296 0 0 X 856425 856425 184521 184521 0 0 116505311 116505311 4011346 4011346 0 0 0 0 0 0 4192764 4192764 0 0 794623 794623 0 0 1358458 1358458 0 0 953730 953730 0 0 0 0 0 0 158455 158455 0 0 373888 373888 0 0 0 0 0 0 0 0 0 0 0 0 565936 565936 0 0 354554 354554 0 0 152972 152972 0 0 607045 607045 0 0 0 0 0 0 975791 975791 0 0 273106 273106 0 0 0 0 0 0 387234 387234 0 0 0 0 0 0 309381 309381 0 0 817942 817942 0 0 162365 162365 0 0 Commissions 4351726 4351726 0 0 Field Representatives Expenses 1602443 1602443 0 0 Merger Related Expenses 2142643 2142643 0 0 Other Expenses 3242025 3242025 0 0 145334684 145334684 0 0 -1139390 -215019 21752865 32563982 19050441 13394691 5610316 5655750 1378826620 1358187684 153271496 186288531 42133606 39112792 19632282 19983579 1620087795 1641577299 5047851 5725825 1537850812 1547799527 1542898663 1553525352 X 0 0 77189132 88051947 0 0 77189132 88051947 1620087795 1641577299 X 12052442 1766219 0 0 0 -2955846 X 0 1 X 1 0 0 0 X X 0 297751 1181225 15548 24183 0 613 1469728 294328 0 11951 7736 0 792 297751 220629 75376 2448 3773 0 352 294328 213079 0 11443 3583 0 310 220629 197180 0 19443 3280 0 264 213079 0 1 0 0 1 1 0 0 0 0 10027060 5580201 4446859 0 6956028 6114570 841458 0 2067353 1699920 367433 0 0 0 0 5655750 0 0 Private commercial loans 12663861 C Private placement bonds 154280846 C Private equity holding 549868 F Other private holdings 18793956 C 186288531 0 Policy and claim reserves 1519185615 Pension liability 2025978 Asset valuation reserve 10424899 Refunds payable 2032477 Advance premiums 2156200 Interest maintenance reserve 11682856 Other miscellaneus liabilities 291502 1547799527 152512638 0 0 0 0 0 152512638 2320144 2554344 4874488 157387126 143014542 0 0 0 0 0 143014542 2320142 0 2320142 145334684 Schedule D, Part III, Line 1 The Society considers all works of art and historical exhibits to be nonadmitted assets as defined by the guidance within the National Association of Insurance Commissioner's Accounting Practices and Procedures Manual. These assets are accordingly excluded from the Society's balance sheet. Schedule D, Part III, Line 4 The Society has an extensive collection of historical items. The items are displayed throughout the Society's home office for viewing by associates, members and the general public. The Society maintains these items with utmost care to ensure they are available for future generations. Schedule D, Part V, Line 4 All endowment funds are held and administred by the Society's tax exempt affiliate, Catholic Financial Life Foundation, for the sole use of the Foundation in accordance with its giving guidelines. Schedule D, Part VI, Line 1a Amounts are aggregated for the Society's land and buildings on Schedule D, Part VI, line b. Schedule D, Part XI, Line 4b Realized gains 1 Archdiocese of Milwaukee 3501 S Lake Dr Milwaukee WI 53207 390807221 501(c)(3) 33905 Cash Sponsorships, general support etc. Arise Ministries Inc PO Box 378 Elm Grove WI 53122 460580407 501(c)(3) 10000 Cash Sponsorship Catholic Financial Life Foundation Inc 1100 W Wells St Milwaukee WI 53233 204780760 501(c)(3) 144250 Cash Scholarships and educational initiatives Catholic Memorial High School 601 East College Ave Waukesha WI 53186 390964819 501(c)(3) 10000 Cash Tuition assisstance Diocese of Little Rock 2500 N Tyler St Little Rock AR 72207 710236871 501(c)(3) 10000 Cash Seminarian education St Joan Antida High School 1341 N Cass St Milwaukee WI 53202 391570745 501(c)(3) 7000 Cash Support Catholic education Italian Community Center 631 E Chicago St Milwaukee WI 53202 391304069 501(c)(3) 8000 Cash Sponsorship Irish Festivals Inc 1532 Wauwatosa Ave Wauwatosa WI 53213 391374611 501(c)(3) 14000 Cash Sponsorship SecureFutures Foundation Inc 710 N Plankinton Ave Milwaukee WI 53203 205203533 501(c)(3) 10000 Cash Financial literacy for teens St Raphael the Archangel 40000 N US Hwy 45 Old Mill Creek IL 60046 300416009 501(c)(3) 6000 Cash General support Society of St Vincent de Paul 58 Progress Parkway Maryland Heights MO 63043 135562362 501(c)(3) 48093 Cash National partner St Gabriel 3733 Hubertus Rd Hubertus WI 53033 810555020 501(c)(3) 5620 Cash Sponsorship and general support United Community Center Inc 1028 S 9th St Milwaukee WI 53204 391146191 501(c)(3) 26000 Cash Support hispanic initiatives Waukesha Catholic Schools 221 S Hartwell Ave Waukesha WI 53186 391688421 501(c)(3) 5500 Cash Support Catholic education Womens Care Center Foundation Inc 360 N Notre Dame Ave South Bend IN 46617 383651599 501(c)(3) 5795 Cash Women's health 15 0 Match Fund Program: Through this program our chapters and members conduct fundraisers to benefit individuals, families, communities, religious and charitable organizations. Catholic Financial Life matches up to $1,000 for each fundraiser conducted by our local chapters. Our chapters work independently or partner with local organizations to conduct fundraising activities. A total of 677 fundraisers were conducted in 2017. In 2017, $910,009 was raised by chapters, $347,109 was matched by the Home Office for a total of $1,257,118. 677 347109 Cash The number of recipients cannot be determined so an estimate is used based on the number of events matched. Direct charitable outreach: Catholic Financial Life embodies Catholic values in action. In 2017 our chapters and the Home Office donated funds in support of our local communities and dioceses through direct donations. In 2017, $34,081 was donated by chapters and $599,050 was donated by the Home Office for a total of $633,131. While the number of recipients are not accumulated on an individual basis, the Society annually audits a sample of its local chapters. 0 633131 Cash The number of recipients cannot be determined. Educational benefits: Grade school and seminarian scholarships. Members attending Catholic elementary schools or studying for the priesthood are eligible for applicable scholarships. 512 106600 Cash Spiritual benefits: Catholic Financial Life values the spiritual growth of its members. To foster and recognize this growth, several spiritual benefits are granted to members. 1. Baptismal certificates, 2. Commemorative prayer book for celebrating the Sacrament of First Holy Communion, 3. Up to $100 for those who participate in a retreat for the Sacrament of Confirmation or for spiritual growth, 4. Commemorative plaque for celebrating Holy Matrimony and 5. Up to $100 towards the cost of attending a Catholic summer camp. 646 60840 Cash Financial benefits: Estate planning, Prenatal Benefit, Newborn Protection Benefit, Guaranteed Protection Benefit, Uninsurable Child Protection Benefit, Orphan's Benefit, Child Cancer Benefit, Special Needs Benefit and Member Rewards Program. 3397 43700 73769 Cash Member rewards program Wellness benefits / Prescription Savings: Prescription savings on brand name and generic medications, vision care, hearing care, diabetes care and supplies and daily living products. Free Medic alert membership for qualifying members for the first year. Free apartment (Family Care Suite) for members or families of members who are hospitalized in the Milwaukee area. 42 2130 Cash 566 prescriptions with a value of $10,896 as reported by the benefit administrator. Member recognition program: Members are honored for longevity of membership with Catholic Financial Life. 50 year members are eligible to receive a gold rosary and 75 year members are eligible to receive a statue of the Immaculate Conception. Number of recipients are not tracked on an individual basis. 0 25669 Cash Schedule I, Part I, Line 2 Matching funds grants are made to chapters for charitable fundraising programs which local chapters decide to support in accordance with the Matching Funds Program Policy. Elementary school tuition grants are made in accordance with a written corporate policy and are paid directly to the named educational institution or service provider. Member loyalty awards are based upon years of membership. All other contributions and grants are made by a Charitable Contributions Committee comprised of the Society's President/CEO, Secretary/CFO, and the Sr VP of Membership. Additionally, the Society provides funding to the Catholic Financial Life Foundation for high school and college scholarships which is reported as a fraternal expense in the year of the funding to the Foundation. X X 1 1 X X X X 1 1 0 John T Borgen Senior Vice President - Membership 158013 0 28100 0 162 0 11865 0 21647 0 219787 0 0 0 Rogelio Cabral Vice President - Sales 128955 0 112175 0 0 0 14323 0 21647 0 277100 0 0 0 John Callen Chief Investment Officer 162405 0 24300 0 270 0 9048 0 21647 0 217670 0 0 0 Elizabeth E Gabrys Vice President & Chief Actuary 149547 0 21635 0 1462 0 9921 0 336 0 182901 0 0 0 Kristen L Mueller Vice President - Human Resources 132528 0 22100 0 392 0 9440 0 8322 0 172782 0 0 0 William R O'Toole President and Chief Executive Officer 393556 0 52400 0 12450 0 55867 0 21647 0 535920 0 0 0 Jeffrey R Piotrowski Senior VP IT & Insurance Services 202255 0 35600 0 270 0 12176 0 21647 0 271948 0 0 0 Kerry E Riemer Controller 133519 0 22200 0 774 0 8642 0 18042 0 183177 0 0 0 Jeffrey B Tilley Secretary and Chief Financial Officer 224676 0 36600 0 1188 0 31795 0 16239 0 310498 0 0 0 Lisa Flanary Former CEO Degree of Honor 272948 0 200300 0 1710 0 7950 0 14547 0 497455 0 0 0 Kristin O'Connell Regional Sales Manager 97067 0 39354 0 0 0 8493 0 19751 0 164665 0 0 0 Erica Oberg Former CFO Degree of Honor 138299 0 99870 0 1180 0 5021 0 15312 0 259682 0 0 0 Schedule J, Part I, Line 1a The Society directly pays for social and health club dues for the President, Sr VP of Membership and VP Chief Actuary as those facilities are used for the Society's business purposes. Spouse travel costs are paid directly by the Society in those instances where spouse attendance is considered a normal business practice for the specific event. All club dues and spousal attendance events are reported to and reviewed by the Executive Committee of the Board of Directors. Schedule J, Part I, Line 3 Annually, all officer positions are compared to market averages for like positions utilizing a mix of insurance and not for profit industry market data to determine compensation that is reasonable. All top officer salaries are reviewed with the Executive Committee of the Board of Directors. The Executive Committee of the Board of Directors completes an annual written evaluation of the President from all Directors. Considering this performance evaluation and industry average compensation survey data, the Executive Committee recommends the President's compensation for full Board of Directors action. Deliberations and decisions by the Executive Committee and Board of Directors are recorded in their respective meeting minutes. Schedule J, Part I, Line 4 Line 4a) Stay bonuses to Lisa Flanary ($140,000) and Erica Oberg ($71,470). Payment(s) are included in the individual's compensation on Part VII, section A. Line 4b) Supplemental deferred compensation to William O'Toole ($39,667) and Jeffrey Tilley ($17,994). Payment(s) are included in the individual's officer compensation on Part VII, section A. Form 990, Part VI, Section A, Line 4 The Society made three amendments to its bylaws in 2017 in conjunction with the merger. 1. Degree of Honor Delegates: The members of the DOH Advisory Committee are appointed as delegates to the 2018 Triennial Council representing DOH chapters. Following the 2018 Triennial Council meeting, delegates representing DOH chapters shall be elected in accordance with the rules and procedures applicable to the other chapters of the Society as provided in these Bylaws, except that the requirement that such person be a Catholic member shall not apply to delegates of DOH chapters. 2. Officer Qualifications: Principal officers of DOH chapters need not be Catholic. 3. Retained Position: Any Society member serving as an officer of a DOH Service Club or Lodge and in that capacity as of the effective date of the merger of DOH and the Society shall be eligible to continue to serve in that positon and seek reelection, while the individual remains a member of the Society until leaving the positon in the normal course, regardless of whether the member satisfies eligibility requirements under the Society's Articles of Incorporation and/or Bylaws. Complete copies of the amended bylaws are available upon request. Form 990, Part VI, Section A, Line 6 Catholic Financial Life is a fraternal benefit society operated under a mutual form owned by its members who own financial products. Form 990, Part VI, Section A, Line 7a Members of the Society's local chapters elect delegates to represent them at the triennial convention. Those delegates then elect Board of Directors at the triennial convention. The Board of Directors meets, at a minimum, quarterly. Form 990, Part VI, Section A, Line 7b In the case of a merger with another fraternal with more than 10,000 members or more than $50 million of assets, the Society's delegates are required to vote on and approve the merger and/or Bylaw changes as previously approved by the Society's Board of Directors. Form 990, Part VI, Section B, Line 11b The Form 990 is reviewed by select officers of the Society for accuracy and completeness. The return is then reviewed by the Governance and Audit Committees of the Board of Directors before filing. All Directors are provided access to a final copy before it is filed. Form 990, Part VI, Section B, Line 12c Annually all officers and directors are provided a copy of the Society's Code of Ethics (which includes conflict of interest policies) and they are required to certify they have read the Code, have no conflicts of interest and have not violated the Code. The Secretary/CFO reviews all signed certified copies. The Board of Directors also completes an annual self evaluation process. Form 990, Part VI, Section B, Line 15 Annually, all officer positions are compared to market averages for like positions utilizing a mix of insurance and not for profit industry market data to determine compensation that is reasonable. All top officer salaries are reviewed with the Executive Committee of the Board of Directors. The Executive Committee of the Board of Directors completes an annual written evaluation of the President from all Directors. Considering this performance evaluation and industry average compensation survey data, the Executive Committee recommends the President's compensation for full Board of Directors action. Deliberations and decisions by the Executive Committee and Board of Directors are recorded in their respective meeting minutes. Form 990, Part VI, Section C, Line 19 Governing documents are available on the Society's website. Financial statements of the Society are available upon request. All members are provided a summary annual financial statement in the Society's membership magazine. Approved Bylaw changes are also reported to all members in the membership magazine. Delegates to the Society's triennial conventions receive complete copies of the Bylaws each time the convention convenes. Form 990, Part VIII, Line 2a - 2e All revenues are regarded as being from activities substantially related to the organization's exempt purpose and are therefore included in column B as related or exempt function revenue. Form 990, Part IX, Line 1 All expenses are regarded as being from activities substantially related to the organization's exempt purpose and therefore, included in column (B), Program service expenses of the Statement of Functional Expenses. Form 990, Part XI, Line 9 1. $-809,104 change in non-admitted assets, 2. $-1,407,288 change in Asset Valuation Reserve, 3. $436,446 change in pension liability, 4. $-175,900 change in surplus as a result of reinsurance, 5. $-1,000,000 change in surplus note. Catholic Financial Life Foundation Inc 1100 W Wells St Milwaukee WI 53233 204780760 Religious and educational grants WI 501(c)(3) 9 N/A 0 St Jean Baptiste Educational Foundation PO Box 30065 Worcester MA 01603 237377080 Educational scholarships RI 501(c)(3) 9 N/A 0 Catholic Knights Financial Services Inc 1100 W Wells St Milwaukee WI 53233 391796482 Holding company WI N/A C 1 0 Catholic Brokerage Service Corp 1100 W Wells St Milwaukee WI 53233 391807368 Supplemental brokerage services WI N/A C 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 Catholic Financial Life Foundation Inc b 144250 Cash Catholic Financial Life filed a Form 8868, Extension of Time to File an Exempt Organization Return, by the original due date of May 15, 2018 and was granted an extension until November 15, 2018.