William Penn Life, 1993 (28. évfolyam, 1-11. szám)
1993-09-01 / 9. szám
Page 2, William Penn Life, September 1993 William Penn LIFE Official Publication of the William Penn Association Published Monthly Office of Publication: 709 Brighton Road Pittsburgh, PA 15233 Phone: 412/231-2979 Third Class U.S. Postage Paid Pittsburgh, PA Permit No. 2724 E. E. Vargo Editor-in-chief George S. Charles, Jr. Frances A. Furedy Associate Editors John E. Lovász Managing Editor NATIONAL OFFICERS E. E. Vargo National President George S. Charles, Jr. National V.P./Secretary Frances A. Furedy National V.P./Treasurer Robert A. Kapinus Assistant Treasurer BOARD OF DIRECTORS Joseph P. Arvay Chairman Michael J. Hrabar Vice Chairman Roger G. Nagy Vice Chairman Anthony C. Beke Charles S. Fabian Louis A. Fodor Elmer A. Furedy Barbara A. House Michael R. Kara Michael F. Tomcsak Elmer W. Toth Fránk J. Wukovits, Jr. Frank J. Radvany Secretary of the Board AUDITING COMMITTEE Charles J. Furedy Robert A. Ivancso Co-Chairmen Margaret H. Boso Secretary Dennis A. Chobody Joseph Hamari Ernest J. Mozer, Sr. CONSULTANTS Bruce &. Bruce Company Actuary Horovitz, Rudoy &. Roteman C.P.A. Rothman Gordon Foreman Sc Groudine, P.C. General Counsel Dr. Julius Kesseru Medical Director Unsolicited articles, letters, manuscripts, pictures and other material submitted to the WILLIAM PENN LIFE are forwarded at the owner's risk, and the WILLIAM PENN LIFE expressly denies any responsibility for their safekeeping or return. The WILLIAM PENN LIFE reserves the right to edit, revise or reject any article submitted for publication. Postmaster: If undelivered, please send form 3579 to: William Penn Association 709 Brighton Road Pittsburgh, PA 15233 Member named minister of music at N.Y. church From The Valley Mirror Keith S. Toth, a member of Branch 89 Homestead, Pa., was recently appointed minister of music at the Brick Presbyterian Church in New York City. Brick Church, located at 91st Street and Park Avenue in Manhattan’s Upper East Side, is one of the more prominent Presbyterian churches in the country. Keith is the son of National Director Elmer and Ruth Toth. Founded in 1767, Brick Church boasts a large, vital congregation and a long heralded music program. The late great American organist Dr. Clarence Dickinson, the founder of the School of Sacred Music of the Union Theological Seminary in New York City and the dean of American church music during the first half of this century, was the minister of music at Brick Church for more than 30 years. Brick Church’s music program continues to this day to be a guiding force in church music in this country. In his new position, Keith will oversee the entire music program of the church and act as the principal organist and conductor. He will supervise an active program of children, youth and handbell choirs, each with their own directors, and an assistant organist-choirmaster. Keith will personally conduct the Chancel Choir, a 30-plus voice ensemble led by a core of 16 professional singers, and play the church’s four manual, 135 rank E.M. Skinner-Austin organ. The church also has an acclaimed concert series and radio ministry. The William Penn Association congratulates Keith on his prestigious appointment and wish him continued success. Home Office News The Official Family, sales force and Home Office staff extend our best wishes to Sales Coordinator Amy Codan who retired Aug. 26 after 11 years of service to the Association. Amy joined the Home Office staff July 15, 1982, as a junior underwriter. Six months later she became an underwriter. She later served as secretary to the sales director then as agency administrator before assuming her latest position. The National Officers and Home Office staff saluted Amy at a retirement luncheon held in her honor Aug. 25. As a token of their love and respect for her, the employees presented her with a beautiful mantel clock. We will miss Amy’s warmth and good humor, and we wish both her and her husband Dan good health and much happiness for many years to come. As we say farewell to one member of our fraternal family we happily welcome another. We extend our congratulations and best wishes to Publications Editor John E. Lovász and his wife Mary Ann on the arrival of their daughter, Leanne Elizabeth, born on July 12, 1993, at Magee Women’s Hospital in Pittsburgh. Leanne weighed in at six pounds 15 ounces and was 19 inches long. The proud grandparents are retired National Treasurer John L. Lovász and Mr. and Mrs. Joseph D. Kelly of Cheswick, Pa. May God bless Leanne Elizabeth and her family. Letter to the Editor I am writing to thank the W illiam Penn Association for the scholarships I have received over the years. They helped me out greatly, often times paying for most of my books for the entire school year. I graduated in May from Case Western Reserve University with a Bachelor of Science degree in mechanical engineering. 1 am now working for a company called Crawford Fitting Corp. in Solon, Ohio. Thanks again! David Horvath Branch 14 Cleveland, OH Officiol Notice Updating Beneficiaries On Insurance Policies Have you checked your insurance policies lately to see if the beneficiaries listed on them are correct? If you have not, we suggest that now is a good time to do so and to change or update your beneficiaries, if necessary. Each policy should list the person who you wish to receive the proceeds of your insurance policy. This person is known as the primary beneficiary. If you wish the proceeds to be divided amongst two or more persons, then you must list each of them as a primary beneficiary and indicate the percentage of the proceeds each is to receive. We suggest you also list a contingent beneficiary for each policy. The contingent beneficiary is the person who will receive the proceeds of your policy should the primary beneficiary (or beneficiaries) be deceased at the time your policy is settled. Again, you may list more than one person as a contingent beneficiary and the percentage each is to receive. If you want to update the beneficiaries on your policies, check with your William Penn agent, branch officer or branch coordinator and complete a Change of Beneficiary form. At the same time, check to see that the names of your beneficiaries are current. Remember, a person may have been married or divorced or, for some other reason, had their name legally changed. We recommend that you do not name any minor children as beneficiaries since the proceeds would have to be put in a trust for them until they reach legal adult age. Any questions you have concerning the naming and status of your beneficiaries can be answered by our qualified representatives. At the same time, let our representative review your current policies to see if you need to update your insurance coverage. As always, we at the Home Office will be glad to answer any questions you have regarding your beneficiaries or policies. You can call us toll-free at 1 -800-848-7366. George S. Charles, Jr. National Vice President-Secretary Insurance and Employee Benefits By Emil W. Herman, Esq., General Counsel In the last issue, we looked at the use of insurance in meeting the needs of the small business owner. In this article, we consider the role which insurance can play in employee benefit planning. Life insurance coverage is often provided by an employer and at its cost as a part of an employee’s benefit package. This protection is typically provided in the form of group term life insurance carried by the employer and evidenced by a master policy or by a group of individual policies. The cost of providing each participant with a death benefit larger than $50,000 does produce taxable income to the participant. Nevertheless, for each participating employee, a reasonable amount of insurance can be provided to his or her surviving family members at little or no current cost to the employee. In some instances the insurance benefit is provided to the employee through an arrangement called a "split dollar” plan. The plan is evidenced by a contract between the employer and the employee. In general under such a plan, the employer pays the portion of the annual premium attributable to the increase in cash value of the insurance and receives a share of the death benefit sufficient to reimburse it for its premium contributions. Sometimes the employer pays all of the premium; in rare instances, it pays none of the premium. The employee pays income tax on the difference between the value of the insurance protection which he or she receives (commonly called the "P.S. 58” cost) plus the dollar value of policy dividends received, reduced by the amount of premium for the year which the employee has paid. The plan may be structured so that the employer owns the policy or may provide for policy ownership by the employee. When an employer has entered into a deferred compensation arrangement with an employee, the employer will often purchase life insurance to help it satisfy its deferred obligation. The employer will enter into a trust agreement with a trustee and through the trust it will accumulate the assets which it will use ultimately to pay the deferred compensation claims. The trusts which produce a deferred tax liability to the employee are often called "rabbi” trusts (in honor of the first beneficiary for whom such a trust was approved by the Internal Revenue Service). Those which produce current income to the employee when the employer contributes to the trust are called "secular” trusts. The secular trust’s benefits are guaranteed. Those of the rabbi trust are subject to the claims of the employer’s creditors. The employer uses the cash value of the policies and, as time goes by, the death benefits which are paid, to meet its obligations to its employees. Finally, life insurance can serve as an investment in a qualified retirement plan. The employer can take a current income tax deduction for the premiums paid (an advantage which it does not have when it provides group term insurance). If the employee dies before retirement, the portion of the proceeds in excess of the cash value passes to the employee’s beneficiary free of income tax. There are disadvantages to this use of life insurance as well. Careful guidance should be obtained for such an investment.
