2019-10-11T15:18:21-05:00 2018-12-31 PricewaterhouseCoopers LLP 600 13TH STREET NW SUITE 1000 WASHINGTON DC 20005 990 2018-01-01 530209087 ARMED FORCES BENEFIT ASSOCIATION % DEBORAH FRENCH ARME 7035494455 909 N WASHINGTON STREET ALEXANDRIA VA 223141556 DEBORAH FRENCH CFO 7035494455 2019-10-10 true TRAVIS PATTON P00369623 2024141000 167.68.125.77 52580220192845000003 2019-10-11 P 99F9B6889B003424A2292640F74963A1956CE5CD 5D86657B04133EFD86B5B0998D71DEAD23A9772A 2018 2020-01-14 16:20:31Z RALPH EBERHART CEO 909 N WASHINGTON ST ALEXANDRIA VA 22314 246354369 false X WWW.AFBA.COM X 1947 VA SEE PART III, LINE 1 12 11 137 0 0 101019 0 0 108313744 124784525 10669063 5514542 1705875 863340 120688682 131162407 54216 0 82809124 89380630 19448971 19920417 0 0 0 28299313 37653538 130611624 146954585 -9922942 -15792178 226108476 209940311 114987006 117945330 111121470 91994981 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 65065757 0 52594049 PROVIDED BETTER ALTERNATIVE TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 348,718 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $24.7 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 798 DEATH CLAIMS TOTALING $44,309,174 IN 2018. 16405028 0 14030691 PROVIDED GROUP DECREASING TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 73,272 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $1.0 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 2,178 DEATH CLAIMS TOTALING $11,444,450 IN 2018. 58055600 0 51513061 PROVIDED LEVEL TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 229,616 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $18.7 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 418 DEATH CLAIMS TOTALING $24,092,750 IN 2018. 7428200 0 6646724 146954585 false false false false false false false false false true false true 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 83 0 true 137 true true true false false false false false true false X 12 11 false false false false true true 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 GEN RALPH EBERHART USAF RET PRES AND CHAIRMAN 40.0 0.0 X X 1375198 0 73410 GEN JOHN N ABRAMS USA RET DIRECTOR (UNTIL 09/2018) 2.0 0.0 X 52250 0 0 COMMR SALVATORE J CASSANO DIRECTOR 2.0 0.0 X 44750 0 0 ADM THOMAS H COLLINS USCG DIRECTOR 2.0 0.0 X 54000 0 0 GEN LARRY R ELLIS USA RET DIRECTOR 2.0 0.0 X 47250 0 0 GEN HAL M HORNBURG USAF RET DIRECTOR 2.0 0.0 X 54000 0 0 GEN JAMES L JONES USMC RET DIRECTOR 2.0 0.0 X 47250 0 0 GEN PETER PACE USMC RET DIRECTOR 2.0 0.0 X 44750 0 0 SMA KENNETH O PRESTON USA RET DIRECTOR 2.0 0.0 X 51500 0 0 CMSAF JAMES A ROY USAF RET DIRECTOR 2.0 0.0 X 51500 0 0 LT GEN ROGER SCHULTZ USA RET DIRECTOR 2.0 0.0 X 51500 0 0 VADM PATRICIA A TRACEY USN RET DIRECTOR 2.0 0.0 X 50750 0 0 MR THOMAS WALSH DIRECTOR 2.0 0.0 X 54000 0 0 M DELAHAN CIO 40.0 0.0 X 393624 0 26932 D FRENCH CFO 40.0 0.0 X 431774 0 37852 C GABRIEL SVP, OPERATIONS, (UNTIL 6/30/1 40.0 0.0 X 199756 0 19719 M GIBSON CORP SECRETARY 40.0 0.0 X 122262 0 21919 A HOOVER SVP, HUMAN RESOURCES 40.0 0.0 X 239082 0 48764 C KLEIN CAE 40.0 0.0 X 228597 0 34051 C LIGHT SVP, MARKETING 40.0 0.0 X 0 287006 108599 M MOSER GENERAL COUNSEL 40.0 0.0 X 0 382472 63933 D ORR SVP, ACTUARIAL SERVICES 40.0 0.0 X 0 443740 80268 J PAULIN SVP, OPERATIONS (EFFECTIVE 7/1 40.0 0.0 X 164320 0 25934 M WONG SVP, ASSN INSURANCE MARKETS 40.0 0.0 X 0 271969 24110 A GORDON MONROE TREASURER 40.0 0.0 X 187275 0 33046 B ABEBE IT DIRECTOR 40.0 0.0 X 182576 0 68223 D ALMARAZ VP REGIONAL OPERATIONS 40.0 0.0 X 181669 0 32455 J HICKS IT DIRECTOR 40.0 0.0 X 192210 0 81865 T SHUEY III VP REGIONAL OPERATIONS 40.0 0.0 X 215984 0 40848 4717827 1385187 821928 42 false true false MANNING NAPIER 290 WOODCLIFF DRIVE FAIRPORT NY 14450 INV MGMT SERVICES 534649 RPI CONSULTANTS LLC 101 N HAVEN STREET SUITE 201 BALTIMORE MD 21224 IT DEV SERVICES 410339 EXAMINATION MANAGEMENT SERVICES IN 1111 WEST MOCKINGBIRD LANE DALLAS TX 75320 MED INFO SERVICES 400248 THEODORE G SHUEY JR 1754 CHURCHVILLE AVE STAUNTON VA 24401 CONSULTING SERVICES 343400 ROTH STAFFING COMPANIES 4350 FAIRFAX DRIVE SUITE 800 ARLINGTON VA 22203 TEMPORARY HELP SVCS. 403989 14 X 0 BETTER ALTERNATIVE INSURANCE PROGRAM 524298 52594049 52594049 GROUP TERM INSURANCE PROGRAM 524298 14030691 14030691 LEVEL TERM INSURANCE PROGRAM 524298 51513061 51513061 GROUP SELECT TERM INSURANCE PROGRAM 524298 6408725 6408725 7-20 YEAR TERM INSURANCE PROGRAM 524298 21327 21327 216672 216672 124784525 1944193 1944193 0 0 1211653 866915 344738 0 344738 344738 117895396 114325047 3570349 3570349 3570349 0 0 0 0 0 0 0 0 0 REFERRAL FEES 900099 353630 353630 SSLI ADMIN FEES 900099 164972 164972 518602 131162407 125647865 5514542 0 0 0 89380630 0 0 14761379 2467203 1707948 983887 0 2825443 98557 0 0 586116 4109868 907153 1363780 1456010 0 1489723 743632 0 469727 1500380 0 1833425 117807 FIELD SERVICE REP FEES 19152044 STATE AND LOCAL TAXES 124153 BANK SERVICE CHARGES 806024 ADP AP PROCESSING 24109 45587 146954585 X 5928 5928 7142602 6814637 0 0 25244557 25604466 0 0 0 0 0 0 0 0 10745804 9291001 28188099 13105137 15300027 15082962 0 0 0 0 167669558 153141317 0 0 0 0 226108476 209940311 10246194 15158188 0 0 10336269 9725598 0 0 0 0 0 0 40060797 39946633 0 0 54343746 53114911 114987006 117945330 X 0 0 0 0 111121470 91994981 111121470 91994981 226108476 209940311 X -15792178 -6497437 3163126 X false true X true false 8843211 8843211 2899196 1014719 1884477 3974911 2887731 1087180 12470781 9202687 3268094 15082962 INVEST IN 5STAR FINANCIAL, LLC 73160453 C FIXED MATURITY SECURITIES 28393842 F EQUITY SECURITIES 51587022 F 153141317 0 PREMIUMS DUE UNDERWRITERS 29022195 PENSION 23710295 ANNUAL REFUNDS DUE MEMBERS 10358 CONTINGENT LIAB. HEALTH & FSA -4777 INTEREST RATE SWAP FAIR VALUE 376840 53114911 131391016 -586116 -586116 131977132 -814725 -814725 131162407 147104809 736340 736340 146368469 586116 586116 146954585 PART XI, LINE 2D - INVESTMENT MANAGEMENT FEES (586,116) PART XI, LINE 4B - RENTAL EXPENSES (814,725) PART XII, LINE 2D - RENTAL EXPENSES 814,725 INSURANCE CONTRIBUTIONS REFUNDED TO MEMBERS 5,760 ADJUSTMENT FOR ACCRUED GRANTS (84,145) -------- TOTAL 736,340 X X true true X X X X X false false false GEN RALPH EBERHART USAF RET PRES AND CHAIRMAN 706889 0 499443 0 168866 0 60250 0 13160 0 1448608 0 0 0 M DELAHAN CIO 287269 68200 0 38155 0 13750 0 13182 0 420556 0 0 0 D FRENCH CFO 314169 83500 0 34105 0 24692 0 13160 0 469626 0 0 0 C GABRIEL SVP, OPERATIONS, (UNTIL 6/30/1 147386 48000 0 4370 0 7369 0 12350 0 219475 0 0 0 A HOOVER SVP, HUMAN RESOURCES 204146 32500 0 2436 0 35971 0 12793 0 287846 0 0 0 C KLEIN CAE 189202 37000 0 2395 0 21337 0 12714 0 262648 0 0 0 C LIGHT SVP, MARKETING 0 234570 0 48500 0 3936 0 95634 0 12965 0 395605 0 0 M MOSER GENERAL COUNSEL 0 297945 0 73500 0 11027 0 50773 0 13160 0 446405 0 0 D ORR SVP, ACTUARIAL SERVICES 0 317504 0 84000 0 42236 0 68954 0 11314 0 524008 0 0 J PAULIN SVP, OPERATIONS (EFFECTIVE 7/1 146246 0 16000 0 2074 0 14620 0 11314 0 190254 0 0 0 M WONG SVP, ASSN INSURANCE MARKETS 0 218127 0 46000 0 7842 0 11219 0 12891 0 296079 0 0 A GORDON MONROE TREASURER 179407 4500 0 3368 0 20467 0 12579 0 220321 0 0 0 B ABEBE IT DIRECTOR 166298 14000 0 2278 0 55738 0 12485 0 250799 0 0 0 D ALMARAZ VP REGIONAL OPERATIONS 166402 11974 0 3293 0 19927 0 12528 0 214124 0 0 0 J HICKS IT DIRECTOR 175386 13500 0 3324 0 69316 0 12549 0 274075 0 0 0 T SHUEY III VP REGIONAL OPERATIONS 183589 32000 0 395 0 28199 0 12649 0 256832 0 0 0 SCH J PART I LINE 1 - EXPLANATION: FIRST CLASS AIR TRAVEL IS AUTHORIZED FOR THE ASSOCIATION'S PRESIDENT AND SPOUSE PER A BOARD APPROVED EMPLOYMENT CONTRACT. THE TOTAL COST OF AIR TRAVEL PAID BY THE ASSOCIATION WAS $2,054 IN 2018. FORM 990, PART III, LINE 4D - OTHER PROGRAM SERVICES: THE ORGANIZATION PROVIDED GROUP SELECT TERM, 7 - 20 YEAR TERM AND MILITARY SPOUSE LIFE INSURANCE COVERAGE TO A POPULATION OF 15,552 MEMBERS AND SPOUSES. INSURANCE IN FORCE TOTALLED $2.9 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. 45 DEATH CLAIMS WERE PAID OUT IN 2018 TOTALLING TO $3,825,000. 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: AFBA'S BOARD OF DIRECTORS IS ELECTED ANNUALLY EACH MAY BY ITS MEMBERS AT AN ANNUAL MEETING OF MEMBERS. MEMBERS RECEIVE 30 DAYS PRIOR NOTICE OF THE ANNUAL MEETING AND A BALLOT CARD INCLUDING NOMINEES FOR THE BOARD FOR THE ENSUING YEAR. MEMBERS ARE DIRECTED TO AFBA'S WEBSITE FOR BIOGRAPHICAL INFORMATION ON THE NOMINEES. MEMBERS MAY VOTE VIA BALLOT CARD, ONLINE, OR IN PERSON AT THE ANNUAL MEETING. RESULTS ARE ANNOUNCED AT THE ANNUAL MEETING AND POSTED ON THE ASSOCIATION'S WEBSITE. FORM 990, PART VI, SEC A, 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 12A - 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 2,569,599 ANNUAL REFUNDS DUE MEMBERS (5,760) INTEREST RATE SWAP FAIR MARKET VALUE 515,142 ADJUSTMENT FOR ACCRUED GRANTS 84,145 ------------ $3,163,126 GRANTS THE CHARLES C. BLANTON AFBA FAMILY SURVIVOR COLLEGE SCHOLARSHIP IS OFFERED TO THE SURVIVING SPOUSE OR CHILDREN OF AN INSURED AFBA MEMBER WHO DIES IN A COMBAT ZONE, AS A RESULT OF COMBAT ACTION OR WHOSE LIFE WAS LOST AS A RESULT OF ACTS OF FOREIGN OR DOMESTIC TERRORISM. THE SCHOLARSHIP PROVIDES AN EDUCATIONAL SCHOLARSHIP TO CANDIDATES FOR AN UNDERGRADUATE DEGREE OF UP TO $10,000 PER FAMILY, PER YEAR FOR A MAXIMUM BENEFIT OF $40,000 PER FAMILY FOR TUITION AND FEES. THE ADJUSTMENT FOR ACCRUED GRANTS OF $84,145 ON THE 2018 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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