Fraternity-Testvériség, 1980 (58. évfolyam, 1-4. szám)

1980-04-01 / 2. szám

VI. TRUST FUND

Unclaimed matured proceeds and death benefits which cannot be remitted to the legal recipients because of various reasons, are kept on our Trust Fund. The following listing shows the changes in the deposits in 1978:

U.S.A. Canada Total

Balance on 12-31, 78....$166,473.51 $6,217.84 $172,691.35 Balance on 12-31, 79.... 169,936.68 5,814.84 175,751.52

State Welfare Departments consider these deposits abandoned properties after 7 or 8 years under the escheat laws. At the end of such period the Federation must transfer unclaimed insurance proceeds to the State agencies. New York State lowered the waiting period to three years.

The idea of using abandoned funds for fraternal purposes repeatedly came up. The only legally acceptable way is to designate the Federation, the Bethlen Home or Student Aid and Loan Fund contingent beneficiary provided that the Insured agrees to such solution.

VII. PAYROLL, TAXES

After deducting the various Federal and State taxes as well as contribution to the Retirement Benefit Fund, we forwarded net payroll to the Treasurer’s office. Taxes withheld were always submitted to the US agencies and Canadian tax offices on time.

Reassurance Company. As of December 31, 1979, $1,590,- 567.00 worth of insurance was reinsured. In 1979 we paid the following premiums:

U.S.A. Canada

Premium actually paid .....................$8,678.32 $2,877.06

Less: Experience Refund ................... 513.40 364.81

Cost of Reinsurance in 1979 ...........$8,164.92 $2,512.25

No reinsured member died during the past year.

b. I served as Chairman of the RETIREMENT BENEFIT PLAN. We are in compliance with the Employees’ Retirement Security Act of 1974. (ERISA) The Plan is approved by the Internal Revenue Service and insured by the Pension Benefit Guaranty Corporation. The Board of Directors liberalized the Plan again in 1979 and the amended by-laws were submitted to the proper agencies.

c. WORKMEN’S COMPENSATION demanded much more attention than in the old days when one report and payment to the District of Columbia took care of our obligations. More and more states are requesting separate filing and the premium is skyracketing in some cases.

d. SEARCH FOR A NEW HOME OFFICE building proved to be time consuming and often frustrating activity.

Siince January 1, 1974, Canada levies 2% tax on dues collected.

In Canada we have paid $21,754.43 in corporate taxes in 1979.

VIII. GUARDIAN OF SAFETY DEPOSIT BOXES

I acted as one of the guardians of the safety deposit boxes and went to the bank vault whenever the Treasurer wanted access to the securities.

IX. ASSOCIATE EDITOR

As associate editor I wrote articles in our official publication. The “Fraternity” with a circulation of more than 14,000 is not directed to our membership only but serves as an important tool of communication to other Hungarian diasporas around the world also.

X. BUDGET

We overspent the limitation of expenses set by the Insurance Department of New York State again:

1976 1977 1978 1979

N.Y. Limitation

of Expense ......... $677,139 $703,591 $677,256 $645,973

Actual Expenses

Occured ............... 790,727 815,373 802,433 816,973

Negative Safety

Margin ................. $113,588 $111,782 $125,177 $170,238

XI. OTHER SERVICES

In this chapter I am reporting on services rendered which are not enumerated among my duties in the by-laws but were assigned to me either by the Board of Directors or the President.

a. REINSURANCE applications and premium payments are handled in my department. Insurance over $15,- 000.00 are automatically reinsured with the North American

e. I served as Executive Vice President of the Bethlen Home. The first significant and controversial event in the past year was the sale of the Children’s Home. We should have transacted this deal and start new projects on the hill much sooner disregarding the unwarranted and at times utterly rude criticism of certain individuals. Repeated delays had significantly increased construction cost. I am glad and happy that I was participating in the new and perhaps last big expansion of our charitable institution.

f. The STUDENT AID and LOAN FUND was my pet project from its establishment in 1968. I made the motion at the Convention to set up the first fund. I handled later the process of incorporation and obtained tax exempt status for the contributions. I warmly recommend to support this fine and promising fraternal endeavor in the future.

For the last twenty-three years I rendered services to the Federation as Auditor, Controller and Executive Vice President. Primarily, my fine co-workers deserve credit that I never faced any serious problem in my office during such a long period of time. Former and present employees in my department excelled in dedication, expert knowledge and loyalty to the Federation for which they deserve full recognition of the Board of Directors and the Convention as well. Mrs. Katalin Paschke rendered outstanding services not only as my secretary and claim adjuster but also took care of various other administrative duties. Dr. Zoltán Korossy is an excellent machine operator and statistician. Mr. Tibor Baksy is the senior bookkeeper, payroll clerk and well qualified to serve in almost any position in the Home Office.

I owe a word of appreciation to my fellow Officers and Members of the Board who made easier for me to cope with my diversified duties with their kind advice and support.

Respectfully submitted by,

LÁSZLÓ L. ESZENYI

Executive Vice President

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