2016-08-15T11:18:31-07:00 2015-12-31 990 2015-01-01 390201015 CATHOLIC FINANCIAL LIFE CATH 4142736266 1100 W Wells Street Milwaukee WI 53233 Jeffrey Tilley Chief Financial Officer 4142786583 2016-08-15 2015 2016-12-15 16:53:06Z Jeffrey B Tilley 1100 W Wells St Milwaukee WI 53233 214340775 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 2015, members volunteered over 91,000 hours of service valued at more than $2.1 million to extend their hand to help others in need. Over $1.3 million in contributions were raised through the Society's efforts to promote Catholic education, Diocesan programs, civic causes and more. 14 12 212 16332 0 0 3970 3440 63593231 61686561 63086014 63326347 2361329 2473741 129044544 127490089 1136939 1222381 96330018 96313302 9129169 9141327 0 0 0 11689979 11168257 118286105 117845267 10758439 9644822 1350071147 1378099759 1304077496 1320497146 45993651 57602613 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 116972225 0 127486649 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. 873042 0 3440 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 91,000 hours of service were donated to support various Diocesan and community programs and events in 2015 valued at over $2.1 million. 0 0 0 117845267 0 0 0 0 0 0 1 0 0 1 1 0 0 1 0 0 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 32500 0 1 212 1 0 0 0 0 0 0 X 14 12 0 0 1 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 0 CA X Jeffrey B Tilley 4142786583 1100 W Wells Street Milwaukee WI 53233 Mary E Baker Board member 3 0 X 16250 0 0 Carla C Breunig Board member 3 0 X 17375 0 0 Robert N Dippold Board member 3 0 X 26725 0 0 Dennis N Kabat Board member 3 0 X 17100 0 0 John F Kenawell Board member 3 0 X 17525 0 0 Donald W Layden Board member 3 0 X 7525 0 0 Archbishop Jerome E Listecki Board member 1 0 X 12500 0 0 John C Mack Board member 3 0 X 19050 0 0 Patrick J Murphy Board member 3 0 X 18625 0 0 Paul B Pinsonnault Board member 3 0 X 15825 0 0 David C Singer Board member 3 0 X 16675 0 0 Michael Stivoric Board member 4 0 X 16250 0 0 Thomas W VanHimbergen Board member 3 0 X 18625 0 0 Arthur W Wigchers Board member 3 0 X 16925 0 0 William R O'Toole President and Chief Executive Officer 45 1 X X 343339 0 63942 Jeffrey B Tilley Secretary and Chief Financial Officer 45 0 X X 174456 0 22178 Kristen L Mueller Vice President - Human Resources 45 0 X 70024 0 8001 Jeffrey R Piotrowski Senior VP IT & Insurance Services 45 0 X 23940 0 4212 John T Borgen Senior Vice President -Membership 45 2 X 133683 0 24759 Rogelio Cabral Vice President - Sales 45 0 X 142577 0 24759 John Callen Chief Investment Officer 45 0 X 109048 0 24210 Elizabeth E Gabrys Vice President & Chief Actuary 45 0 X 107203 0 5343 Joseph E Gadbois Vice President Fraternal Outreach 45 0 X 97290 0 18177 Frederick W Muenkel Vice President - Insurance Services 45 0 X 139736 0 20656 Kerry E Riemer Controller 45 1 X 113648 0 23435 Scott G Brost Director Information Systems 45 0 X 97275 0 23160 Philip Lamphear Programmer Analyst - Lan Administrator 45 0 X 77526 0 22875 Kristin O'Connell Regional Sales Manager 45 0 X 225924 0 22728 Michael Soczka Regional Sales Manager 45 0 X 135974 0 6364 Les Driscoll Programmer Analyst - Database Administrator 45 0 X 78656 0 17962 2307274 0 332761 21 0 1 0 Wellington Management Co LLP PO Box 13694 Newark NJ 071880694 Investment management 1018271 Sungard Iworks LLC DBA Insurance Systems 11605 Haynes Bridge Rd Suite 400 Alpharetta GA 30009 Accounting solutions 239400 John Augustine 2665 S Moorland Road Suite 212 New Berlin WI 53151 Sales Advisor 218291 Milwaukee City Center LLC The Milwaukee Hilton 509 W Wisconsin Ave Milwaukee WI 53203 Event hosting 200014 Karen Stiles 1100 West Wells Street 0 Milwaukee WI 53233 Sales Advisor 121454 6 X 0 3440 0 0 0 0 0 3440 Premium income 524113 61510661 61510661 0 0 Reinsurance commission and expense allowances 524113 175900 175900 0 0 0 0 0 0 61686561 63609756 63609756 0 0 0 0 0 0 0 0 0 0 2084983 0 1521627 0 563356 0 563356 563356 0 0 84656905 388745 84963528 365531 -306623 23214 -283409 -283409 0 0 0 Net allocated investment expense 524113 1902129 1902129 0 0 Miscellaneous income 524113 8256 8256 0 0 0 0 0 0 1910385 127490089 127486649 0 0 X 1042452 1042452 179929 179929 0 0 96313302 96313302 2640035 2640035 0 0 0 0 0 0 3999062 3999062 0 0 653456 653456 0 0 1055522 1055522 0 0 793252 793252 0 0 0 0 0 0 120196 120196 0 0 189937 189937 0 0 0 0 0 0 0 0 0 0 0 0 437186 437186 0 0 344818 344818 0 0 144287 144287 0 0 54424 54424 0 0 0 0 0 0 766080 766080 0 0 205966 205966 0 0 0 0 0 0 296194 296194 0 0 0 0 0 0 300236 300236 0 0 914287 914287 0 0 112785 112785 0 0 Commissions 3388900 3388900 0 0 Field representatives expenses 1158980 1158980 0 0 Fraternal expenses 147243 147243 0 0 Other 2586738 2586738 0 0 117845267 117845267 0 0 556533 892472 18279363 12744369 5531597 5534994 1140071672 1164042745 156723278 159625048 32423243 32135894 14764824 15868606 1350071147 1378099759 4500422 4378619 1299577074 1316118527 1304077496 1320497146 X 0 0 0 0 45993651 57602613 45993651 57602613 1350071147 1378099759 X 9644822 -112431 0 0 0 2076571 X 0 1 X 1 0 0 0 X X 0 0 0 0 0 10027060 5545396 4481664 0 6572565 5720260 852305 0 1679738 1478713 201025 0 0 0 0 5534994 Private commercial loans 25356573 C Private placement bonds 132601717 C Private equity holdings 473426 F Other private holdings 1193332 C 159625048 Policy and claim reserves 1293561399 Minimum pension liability 4812345 Asset valuation reserve 7653760 Refunds payable 2028597 Advance premiums 2100324 Interest maintenance reserve 5622992 Other miscellaneus liabilities 339110 1316118527 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 VI, Line 1a Amounts are aggregated for the Society's land and buildings on Schedule D, Part VI, line b. 1 Archdiocese of Milwaukee 3501 S Lake Dr Milwaukee WI 53207 390807221 501(c)(3) 30945 Cash Soles for Education Walk sponsorship, sponsorships, etc. BVM Helping Hands 32088 N Pine Avenue Grayslake IL 60030 412115749 501(c)(3) 10450 Cash WSFI Catholic radio sponsorship Catholic Financial Life Foundation Inc 1100 W Wells St Milwaukee WI 53233 204780760 501(c)(3) 276200 1370 Cash Items for auction Scholarships and educational initiatives Catholic Memorial High School 601 East College Ave Waukesha WI 53186 390964819 501(c)(3) 10000 Cash CMHS sponsorship Irish Festivals Inc 1532 Wauwatosa Ave Wauwatosa WI 53213 391374611 501(c)(3) 7850 Cash Irish Fest sponsorship Milwaukee Habitat for Humanity 3726 N Booth St Milwaukee WI 53212 391496741 501(c)(3) 10000 Cash Pope Francis House Build sponsorship Society of St Vincent de Paul 58 Progress Parkway Maryland Heights MO 63043 135562362 501(c)(3) 50323 Cash National partner St Gabriel 3733 Hubertus Rd Hubertus WI 53033 810555020 501(c)(3) 6491 Cash Sponsorship and general support Waukesha Catholic School System 221 S Hartwell Ave Waukesha WI 53186 391688421 501(c)(3) 5500 Cash Sponsorship 9 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 172 chapters out of 183 throughout the United States (126 of which are in Wisconsin) conducted 681 fundraisers in 2015. In 2015, $725,409 was raised by chapters, $350,083 was matched by the Home Office for a total of $1,075,492. 681 350083 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 2015 our chapters and the Home Office donated funds in support of our local communities and dioceses through direct donations. In 2015, $20,861 was donated by chapters and $221,144 was donated by the Home Office for a total of $242,005. While the number of recipients are not accumulated on an individual basis, the Society annually audits a sample of its local chapters. 0 242005 Cash The number of recipients cannot be determined. Educational benefits: Grade school scholarships. Members attending Catholic elementary schools are eligible for annually renewable scholarships. 510 102000 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. 717 65888 Cash Financial benefits: Estate planning, Prenatal Benefit, Newborn Protection Benefit, Guaranteed Protection Benefit, Uninsurable Child Protection Benefit, Orphan's Benefit, Child Cancer Benefit and Special Needs Benefit. 152 78100 Cash 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. 20 1010 33956 Cash 1,182 prescriptions with a value of $33,956 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 not tracked on an individual basis. 0 42374 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 0 1 0 William R O'Toole President and Chief Executive Officer 303412 0 30100 0 9827 0 45357 0 18585 0 407281 0 0 0 John T Borgen Senior Vice President -Membership 120171 0 13350 0 162 0 6174 0 18585 0 158442 0 0 0 Rogelio Cabral Vice President - Sales 111480 0 8500 0 22597 0 6174 0 18585 0 167336 0 0 0 Frederick W Muenkel Vice President - Insurance Services 127924 0 10100 0 1712 0 6541 0 14115 0 160392 0 0 0 Jeffrey B Tilley Secretary and Chief Financial Officer 156868 0 16400 0 1188 0 8073 0 14105 0 196634 0 0 0 Kristin O'Connell Regional Sales Manager 76496 0 31798 0 117630 0 4993 0 17735 0 248652 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 Board chair. Schedule J, Part I, Line 3 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 4b) Supplemental deferred compensation to William O'Toole ($34,757) which is included in Mr. O'Toole's officer compensation on Part Vll, section A. Form 990, Part VI, Section A, Line 4 The Society made a number of amendments to its Bylaws effective September 26, 2015. Three specific "grandfather clauses" relating to matters that were included in the Catholic Knights and Catholic Family Merger Agreement were no longer needed and were deleted as the dates they reference had either passed or the unique reason for the clause no longer exists. In addition to these changes, the Society changed the timing of specific matters related to Triennial Council business from a number of days methodology to a specific date reference, moved the timelines 30 to 60 days earlier than the previous Bylaws timelines and deleted a reference to appointing the Judiciary Committee by a specific number of days before the Triennial Council meeting. 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 copy after 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 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 and 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 1a All revenues are regarded as being from activities substantially related to the organization's exempt purpose and therefore, included in column (B), 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. $-1,208,458 change in non-admitted assets, 2. $-21,232 change in Asset Valuation Reserve, 3. $3,482,161 change in pension liability, 4. $-175,900 change in surplus as a result of reinsurance. Catholic Financial Life Foundation Inc 1100 W Wells Street Milwaukee WI 53233 204780760 Religious and educational grants WI 501(c)(3) 9 N/A 0 Catholic Knights Financial Services Inc 1100 W Wells Street Milwaukee WI 53233 391796482 Holding company WI N/A C 46428 473426 1.00 0 Catholic Brokerage Service Corp 1100 W Wells Street 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 276200 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, 2016 and was granted an extension until August 15, 2016.