2023-11-13T20:34:32-06:00 2022-12-31 PwC US Tax LLP 655 New York Ave NW Suite 1100 Washington DC 20001 990 2022-01-01 530209087 ARMED FORCES BENEFIT ASSOCIATION % DEBORAH FRENCH ARME 7035494455 909 N WASHINGTON STREET ALEXANDRIA VA 223141556 DEBORAH FRENCH CFO 7035494455 2023-11-13 true DEBORAH FRENCH 999009999 TRAVIS PATTON P00369623 2024141000 2023-11-13 2 2022 2023-04-26 12:10:37Z LARRY SPENCER CEO 909 N WASHINGTON ST ALEXANDRIA VA 22314 201195519 false X WWW.AFBA.COM X 1947 VA SEE PART III, LINE 1 12 10 142 0 0 0 2270009 0 142437770 144692090 12814847 -10267553 365585 242294 157888211 134666831 0 0 124119533 102568885 20598237 19990920 0 0 0 32338501 33186239 177056271 155746044 -19168060 -21079213 212566568 181302582 140874669 111890850 71691899 69411732 X PROMOTE THE WELFARE OF MEMBERS OF THE U.S. UNIFORMED SERVICES, FEDERAL GOVERNMENT EMPLOYEES, FIRST RESPONDER EMERGENCY PERSONNEL AND THEIR FAMILIES BY PROVIDING LOW COST LIFE INSURANCE, AND OTHER BENEFITS. false false 57043340 0 49183837 PROVIDED BETTER ALTERNATIVE TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 331,294 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $21.2 BILLION, UNDERWRITTEN BY RELATED ORGANIZATIONS AND OTHER THIRD PARTY LIFE INSURANCE COMPANIES, IN SUPPORT OF AFBA'S OBJECTIVE TO PROMOTE THE WELFARE OF ITS MEMBERS AND THEIR FAMILIES. PAID OUT 948 DEATH CLAIMS TOTALING $38,990,049 IN 2022. 13805893 0 10632172 PROVIDED GROUP DECREASING TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 53,508 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $.6 BILLION, UNDERWRITTEN BY RELATED ORGANIZATIONS AND OTHER THIRD PARTY LIFE INSURANCE COMPANIES, IN SUPPORT OF AFBA'S OBJECTIVE TO PROMOTE THE WELFARE OF ITS MEMBERS AND THEIR FAMILIES. PAID OUT 2,137 DEATH CLAIMS TOTALING $10,600,450 IN 2022. 79711841 0 79957429 PROVIDED LEVEL TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 298,272 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $25.9 BILLION, UNDERWRITTEN BY RELATED ORGANIZATIONS AND OTHER THIRD PARTY LIFE INSURANCE COMPANIES, IN SUPPORT OF AFBA'S OBJECTIVE TO PROMOTE THE WELFARE OF ITS MEMBERS AND THEIR FAMILIES. PAID OUT 759 DEATH CLAIMS TOTALING $42,159,750 IN 2022. 5184970 0 4918652 155746044 false false false false false false false false false true true false false true false false true false false false false false false false false false false false true false false false false false false false false false false false true true true false true 71 0 true 142 true false false false false false false true false X 12 10 false false false false true false false true true false false true true true true true true true false false X DEBORAH FRENCH 8007762322 909 N WASHINGTON ST ALEXANDRIA VA 22314 X GEN LARRY O SPENCER PRESIDENT 27.0 13.0 X X 1122226 0 70566 D FRENCH CFO 40.0 0.0 X 507486 0 33759 M MOSER GENERAL COUNSEL 20.0 20.0 X 0 431858 88504 B ABEBE CIO 40.0 0.0 X 268542 0 115212 M WONG CHIEF DISTRIBUTION OFFICER 28.0 12.0 X 0 350641 32790 A HOOVER SVP, HUMAN RESOURCES 40.0 0.0 X 276639 0 73374 J HICKS IT DIRECTOR 40.0 0.0 X 208775 0 104118 J BRADFORD VP, 1ST RESPONDER MARKET 40.0 0.0 X 198640 0 93378 T SHUEY III VP REGIONAL OPERATIONS 40.0 0.0 X 229353 0 61903 C KLEIN CAE 40.0 0.0 X 252331 0 29849 J PAULIN SVP, OPERATIONS 40.0 0.0 X 235384 0 28955 T TRAN CONTROLLER 40.0 0.0 X 200394 0 27829 R LAMBERT DIR. STATS & ANALYSIS 40.0 0.0 X 197005 0 26360 M SMITH CORP SECRETARY 40.0 0.0 X 175529 0 27074 GEN RALPH EBERHART USAF RET CHAIRMAN AND FORMER PRESIDENT 2.0 0.0 X X 77250 111152 0 GEN CRAIG R MCKINLEY USAF RET DIRECTOR 2.0 0.0 X 53460 0 0 SMA KENNETH O PRESTON USA RET DIRECTOR 2.0 0.0 X 53460 0 0 CMSAF JAMES A ROY USAF RET DIRECTOR 2.0 0.0 X 53460 0 0 MR THOMAS WALSH DIRECTOR 2.0 0.0 X 53460 0 0 FIRE CHIEF JOHN S BUTLER FCFD DIRECTOR 2.0 0.0 X 47835 0 0 POLICE CHIEF CATHY LANIER DCMPD R DIRECTOR 2.0 0.0 X 47835 0 0 SMMC ALFORD L MCMICHAEL USMC RET DIRECTOR 2.0 0.0 X 47835 0 0 BRIG GENERAL ALLYSON SOLOMON USAF DIRECTOR 2.0 0.0 X 47835 0 0 VADM PATRICIA A TRACEY USN RET DIRECTOR 2.0 0.0 X 47835 0 0 MR LARRY LYNCH DIRECTOR 2.0 0.0 X 16100 0 0 4418669 893651 813671 43 false true false MANNING NAPIER 290 WOODCLIFF DRIVE FAIRPORT NY 14450 INV MGMT SERVICES 572014 TENPEARLS LLC 8614 WESTWOOD CENTER DR STE 540 VIENNA VA 22182 IT CONSULTING SVCS 474638 MCDOWELL HETHERINGTON LLP 1001 FANNIN STE 2700 HOUSTON TX 770026707 LEGAL SERVICES 406305 ROTH STAFFING COMPANIES 4350 FAIRFAX DRIVE SUITE 800 ARLINGTON VA 22203 TEMPORARY HELP SVCS. 357808 THEODORE G SHUEY JR 1754 CHURCHVILLE AVE STAUNTON VA 24401 CONSULTING SERVICES 341742 14 X 0 BETTER ALTERNATIVE INSURANCE PROGRAM 524298 49183837 49183837 GROUP TERM INSURANCE PROGRAM 524298 10632172 10632172 LEVEL TERM INSURANCE PROGRAM 524298 79957429 79957429 GROUP SELECT TERM INSURANCE PROGRAM 524298 4709379 4709379 MILITARY SPOUSE TERM INSURANCE PROGRAM 524298 176718 176718 32555 32555 144692090 -12330837 -12330837 0 0 1031088 833349 197739 0 197739 197739 67758623 65695339 2063284 2063284 2063284 0 0 0 0 0 0 0 0 0 REFERRAL FEES 900099 44555 44555 0 0 44555 134666831 144934384 0 -10267553 0 0 0 102568885 3384502 0 11402950 2359303 1919271 924894 0 1022818 119617 0 0 655456 4107004 578354 1071787 2719837 0 1369862 449994 0 257213 1445877 0 650735 178339 FIELD SERVICE REP FEES 17211338 PAYMENT PROCESSING FEES 1223819 RECRUITMENT EXPENSE 8341 STATE AND LOCAL TAXES 5459 110389 155746044 1463305 2238723 7777683 6473381 0 0 23002461 19210578 0 0 0 0 0 0 0 0 6248169 6715976 22449487 10344726 12641084 12104761 94764090 71815443 66669776 62743720 0 0 0 0 0 0 212566568 181302582 13440510 15159489 0 0 10479878 10686068 0 0 0 0 0 0 38206066 36370303 0 0 78748215 49674990 140874669 111890850 X 0 0 0 0 71691899 69411732 71691899 69411732 212566568 181302582 X -21079213 -4191415 22990461 X false true X true false 8843211 8843211 2899196 1594558 1304638 4298605 3766390 532215 6284185 4983778 1300407 124290 124290 12104761 INVEST IN 5STAR FINANCIAL LLC 62743720 C 62743720 0 PREMIUMS DUE UNDERWRITERS 39321860 PENSION 10978700 ANNUAL REFUNDS DUE MEMBERS 672 CONTINGENT LIAB. HEALTH & FSA 15446 INTEREST RATE SWAP FAIR VALUE -641688 49674990 134785984 -655456 -655456 135441440 -774609 -774609 134666831 155829166 738578 738578 155090588 655456 655456 155746044 PART XI, LINE 2D - INVESTMENT MANAGEMENT FEES (655,456) PART XI, LINE 4B - RENTAL EXPENSES (774,609) PART XII, LINE 2D - RENTAL EXPENSES 774,609 INSURANCE CONTRIBUTIONS REFUNDED TO MEMBERS 672 ADJUSTMENT FOR ACCRUED GRANTS (36,703) --------- TOTAL 738,578 X X true true X X X false false false GEN RALPH EBERHART USAF RET CHAIRMAN AND FORMER PRESIDENT 77250 111152 0 0 0 0 0 0 0 0 77250 111152 0 0 GEN LARRY O SPENCER PRESIDENT 648979 0 337640 0 135607 0 68720 0 1846 0 1192792 0 0 0 B ABEBE CIO 223299 0 42651 0 2592 0 97161 0 18051 0 383754 0 0 0 D FRENCH CFO 364616 0 92628 0 50242 0 15186 0 18573 0 541245 0 0 0 M SMITH CORP SECRETARY 148319 0 24050 0 3160 0 9528 0 17546 0 202603 0 0 0 A HOOVER SVP, HUMAN RESOURCES 235229 0 38359 0 3051 0 55188 0 18186 0 350013 0 0 0 C KLEIN CAE 212684 0 36622 0 3025 0 11759 0 18090 0 282180 0 0 0 M MOSER GENERAL COUNSEL 0 337879 0 74130 0 19849 0 70006 0 18498 0 520362 0 0 J PAULIN SVP, OPERATIONS 197886 0 35000 0 2498 0 11032 0 17923 0 264339 0 0 0 M WONG CHIEF DISTRIBUTION OFFICER 0 277974 0 63698 0 8969 0 14304 0 18486 0 383431 0 0 J BRADFORD VP, 1ST RESPONDER MARKET 167962 0 28000 0 2678 0 79982 0 13396 0 292018 0 0 0 T TRAN CONTROLLER 174471 0 22523 0 3400 0 10121 0 17708 0 228223 0 0 0 R LAMBERT DIR. STATS & ANALYSIS 170541 0 22265 0 4199 0 8666 0 17694 0 223365 0 0 0 T SHUEY III VP REGIONAL OPERATIONS 196037 0 32672 0 644 0 43993 0 17910 0 291256 0 0 0 J HICKS IT DIRECTOR 191797 0 12375 0 4603 0 86289 0 17829 0 312893 0 0 0 SCH J PART I LINE 1 - EXPLANATION: FIRST CLASS AIR TRAVEL FOR THE ASSOCIATION'S CHAIRMAN (FORMER PRESIDENT) WAS PAID BY THE ASSOCIATION. THE TOTAL COST OF AIR TRAVEL PAID BY THE ASSOCIATION IN 2022 WAS $4,084. SCH J PART I LINE 3 - THE PRESIDENT OF THE ASSOCIATION ALSO SERVES AS THE PRESIDENT OF THE ASSOCIATION'S AFFILIATE, 5STAR LIFE INSURANCE COMPANY, WHICH PERIODICALLY CONSIDERS AN INDEPENDENT FIRM'S COMPENSATION STUDY WHEN APPROVING ITS PRESIDENT'S COMPENSATION. FORM 990, PART III, LINE 4D - OTHER PROGRAM SERVICES: THE ORGANIZATION PROVIDED GROUP SELECT TERM, MILITARY SPOUSE AND CONTINUING CHILDREN LIFE INSURANCE COVERAGE TO A POPULATION OF 11,299 MEMBERS AND SPOUSES. INSURANCE IN FORCE TOTALLED $1.9 BILLION AND WAS UNDERWRITTEN BY RELATED ORGANIZATIONS AND OTHER THIRD PARTY LIFE INSURANCE COMPANIES, IN SUPPORT OF AFBA'S OBJECTIVE TO PROMOTE THE WELFARE OF ITS MEMBERS AND THEIR FAMILIES. 103 DEATH CLAIMS WERE PAID OUT IN 2022 TOTALLING TO $5,161,000. FORM 990, PART VI, SEC A, LINE 6 - MEMBER DESCRIPTION: IN SUMMARY, THE FOLLOWING ARE ELIGIBLE FOR MEMBERSHIP IN AFBA: MEMBERS OF THE UNIFORMED SERVICES (ACTIVE DUTY, RETIRED, SEPARATED, NATIONAL GUARD, AND RESERVES), FEDERAL CIVILIAN EMPLOYEES AND CONTRACTORS OF THE U.S. GOVERNMENT, STATE AND LOCAL GOVERNMENT FIRST RESPONDERS, AND THOSE WHO SHARE A COMMON BOND WITH THE MEMBER GROUP INCLUDING CURRENT AND FORMER SPOUSES AND DEPENDENTS. AN ELIGIBLE PERSON BECOMES A MEMBER UPON ISSUANCE OF A MEMBERSHIP CERTIFICATE, INDICATING THE PERSON HAS APPLIED FOR, BEEN APPROVED AND PAID FOR GROUP TERM LIFE INSURANCE OFFERED BY THE ASSOCIATION. THIS INSURANCE IS UNDERWRITTEN PRIMARILY BY 5STAR LIFE INSURANCE COMPANY. FORM 990, PART VI, SEC A, LINE 7A - ELECTION OF BOARD: PURSUANT TO THE DISTRICT OF COLUMBIA'S NOT-FOR-PROFIT CORPORATION STATUTES, WHICH IS THE LAW APPLICABLE TO AFBA AS A D.C. NON-PROFIT CORPORATION, AFBA'S BOARD OF DIRECTORS IS ELECTED BY ITS EXISTING DIRECTORS UPON RECEIPT OF NOMINATIONS PROFFERED BY THE BOARD'S PLANNING AND GOVERNANCE COMMITTEE. NOMINEES ARE IDENTIFIED BASED ON CRITERIA SET FORTH IN AFBA'S GOVERNING BYLAWS, INCLUDING THOSE WITH THE EXPERIENCE, REPUTATION, ABILITY, AVAILABILITY, AND COMMITMENT TO THE OBJECTIVES OF THE ASSOCIATION FROM THE FOLLOWING CATEGORIES: RETIRED SENIOR OFFICERS AND NON-COMMISSIONED OFFICERS, AS WELL AS OTHER SENIOR PERSONS FROM THE ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, NATIONAL GUARD, RESERVE AND, OTHER BRANCHES OF THE UNIFORMED SERVICES OF THE UNITED STATES; AND RETIRED SENIOR OFFICIALS FROM ORGANIZATIONS THAT PROTECT AND SERVE THE UNITED STATES HOMELAND INCLUDING THE DEPARTMENT OF HOMELAND SECURITY, POLICE, FIRE, EMERGENCY MANAGEMENT, AND OTHER GOVERNMENTAL ENTITIES, AND ACKNOWLEDGED BUSINESS LEADERS FROM PRIVATE INDUSTRY. THE BOARD TAKES INTO CONSIDERATION CANDIDATES' BACKGROUNDS AND DIVERSE PERSPECTIVES, INCLUDING GENDER, ETHNICITY, AND RACE, TO ENSURE REPRESENTATION OF THE ASSOCIATION'S MEMBERSHIP. TO PROMOTE THE INCLUSION OF NEW PERSPECTIVES INTO ITS DELIBERATIONS, A DIRECTOR MAY NOT SERVE PAST THE AGE OF 75. FORM 990, PART VI, SEC B, LINE 11B - REVIEW OF THE FORM 990: THE ASSOCIATION'S FORM 990 IS COMPILED AND REVIEWED BY MEMBERS OF MANAGEMENT AND SENIOR MANAGEMENT. THE NATURE OF THE QUESTION DETERMINES THE EMPLOYEES INVOLVED IN THE REVIEW TO ENSURE ACCURACY AND HAS INCLUDED THE FOLLOWING INDIVIDUALS: CEO, GENERAL COUNSEL, CFO, DIRECTOR OF AUDIT, DIRECTOR OF HUMAN RESOURCES, AND CONTROLLER. THE CFO COMPILES A DRAFT, WITH SUPPORTING WORKPAPERS, AND PROVIDES THIS TO THE ASSOCIATION'S TAX PREPARER, PRICEWATERHOUSECOOPERS LLP (PWC). A DRAFT FORM 990 PREPARED BY PWC IS THEN PROVIDED TO THE ASSOCIATION'S AUDIT COMMITTEE IN ADVANCE OF A REGULARLY SCHEDULED MEETING FOR REVIEW AND APPROVAL PRIOR TO SUBMISSION. A COPY IS ALSO MADE AVAILABLE UPON REQUEST TO ALL BOARD MEMBERS PRIOR TO FILING. THE CFO WORKS WITH PWC TO RESPOND TO QUESTIONS RAISED DURING THE REVIEW PROCESS AND REVIEWS THE FINAL DRAFT PRIOR TO SUBMISSION. FORM 990, PART VI, SEC B, LINE 12C - CONFLICT OF INTEREST POLICY: DIRECTORS, OFFICERS AND KEY EMPLOYEES OF THE AFBA ARE REQUIRED TO COMPLETE AN ANNUAL ETHICS COMPLIANCE STATEMENT, WHICH IS REVIEWED BY THE GENERAL COUNSEL'S OFFICE FOR COMPLETENESS AND COMPLIANCE WITH AFBA'S POLICY. RESPONSES REQUIRING FURTHER REVIEW ARE GIVEN TO AFBA'S GENERAL COUNSEL FOR INVESTIGATION AND DISCUSSION WITH AFBA'S PRESIDENT, TO ENSURE APPROPRIATE ACTION IS TAKEN, IF REQUIRED. FORM 990, PART VI, SEC B, LINE 15 - COMPENSATION REVIEW: THE PRESIDENT'S COMPENSATION PACKAGE IS AUTHORIZED BY A BOARD APPROVED EMPLOYMENT CONTRACT. ANNUALLY, THE BOARD'S COMPENSATION COMMITTEE REVIEWS THE PRESIDENT'S PERFORMANCE AGAINST BOARD APPROVED METRICS AND RECOMMENDS TO THE BOARD ANY CHANGES IN COMPENSATION OR BONUS TO BE PAID. PERIODICALLY, INCLUDING AT THE TIME OF CONTRACT RENEWAL, COMPARABILITY DATA FROM INDEPENDENT SOURCES INCLUDING OTHER FORM 990 FILINGS IS FORMALLY REVIEWED. COMPENSATION OF SENIOR MANAGEMENT IS ESTABLISHED BY THE PRESIDENT, UPON CONSIDERATION OF COMPARABILITY DATA FROM THIRD PARTIES. INDIVIDUAL PERFORMANCE IS EVALUATED ANNUALLY BY THE PRESIDENT AGAINST ESTABLISHED METRICS FOR EACH POSITION, TO DETERMINE ANY BONUS TO BE PAID OR ADJUSTMENTS IN COMPENSATION. THE COMPENSATION OF EACH MEMBER OF SENIOR MANAGEMENT IS REVIEWED BY THE BOARD'S COMPENSATION COMMITTEE ON AN ANNUAL BASIS. FORM 990, PART VI, SEC C, LINE 19 - DISCLOSURE COMMENTS: THE ASSOCIATION'S FORM 990 IS MADE AVAILABLE UPON REQUEST. GOVERNING DOCUMENTS ARE AVAILABLE TO THE PUBLIC TO THE EXTENT FILED WITH THE IRS. THE ASSOCIATION MAKES CERTAIN INFORMATION AVAILABLE ON ITS WEBSITE. OTHER INFORMATION REQUESTS ARE CONSIDERED BASED ON THE AVAILABILITY OF THE INFORMATION AND THE RELEVANT PRIVACY POLICY. FORM 990, PART XI, LINE 9 - RECONCILIATION OF NET ASSETS: OTHER CHANGES IN NET ASSETS CONSIST OF: OTHER COMPREHENSIVE GAIN - PENSION 21,013,199 ANNUAL REFUNDS DUE MEMBERS (672) INTEREST RATE SWAP FAIR MARKET VALUE 1,941,231 ADJUSTMENT FOR ACCRUED GRANTS 36,703 ------------- 22,990,461 THE ADJUSTMENT FOR ACCRUED GRANTS OF $36,703 ON THE 2022 RETURN IS DUE TO THE EXPIRATION AND CORRESPONDING WRITE-OFF OF BENEFITS TO CERTAIN FAMILIES, WHICH EXCEEDED THE ACCRUAL OF NEW BENEFITS FOR THE YEAR. 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