2018-10-22T13:12:32-05:00 2017-12-31 PricewaterhouseCoopers LLP 600 13TH ST NW SUITE 1000 WASHINGTON DC 20005 990 2017-01-01 530209087 ARMED FORCES BENEFIT ASSOCIATION % DEBORAH FRENCH ARME 7035494455 909 N WASHINGTON STREET ALEXANDRIA VA 223141556 DEBORAH FRENCH CFO 8007762322 2018-10-19 true TRAVIS PATTON P00369623 2024141000 155.201.188.33 52580220182955000000 2018-10-22 P 0F88DFED7540E0115A284F5DEC2A5C89A8D4765E 0F88DFED7540E0115A284F5DEC2A5C89A8D4765E 2017 2018-06-14 16:35:46Z RALPH EBERHART CEO 909 N WASHINGTON ST ALEXANDRIA VA 22314 278185119 false X WWW.AFBA.COM X 1947 VA SEE PART III, LINE 1 13 12 136 0 0 0 0 0 103197607 108313744 4927457 10669063 1709712 1705875 109834776 120688682 63164 54216 81843084 82809124 16445051 19448971 0 0 0 25815911 28299313 124167210 130611624 -14332434 -9922942 228166337 226108476 107584932 114987006 120581405 111121470 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 57745021 0 45173239 PROVIDED BETTER ALTERNATIVE TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 162,598 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $21.8 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 354 DEATH CLAIMS TOTALING $39,301,928 IN 2017. 16557502 0 15233211 PROVIDED GROUP DECREASING TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 78,289 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $1.1 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 2,322 DEATH CLAIMS TOTALING $11,319,250 IN 2017. 47828195 0 40823196 PROVIDED LEVEL TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 184,934 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $14.0 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 326 DEATH CLAIMS TOTALING $21,174,000 IN 2017. 8480906 0 7084098 130611624 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 true true false false false false false false false false false false false true true true false true 60 0 true 136 true false false false false false false X 13 12 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 1215230 0 72519 GEN JOHN N ABRAMS USA RET DIRECTOR 2.0 0.0 X 37750 0 0 COMMR SALVATORE J CASSANO DIRECTOR 2.0 0.0 X 29250 0 0 ADM THOMAS H COLLINS USCG DIRECTOR 2.0 0.0 X 36000 0 0 GEN LARRY R ELLIS USA RET DIRECTOR 2.0 0.0 X 29250 0 0 GEN HAL M HORNBURG USAF RET DIRECTOR 2.0 0.0 X 36000 0 0 GEN JAMES L JONES USMC RET DIRECTOR 2.0 0.0 X 29250 0 0 GEN PETER PACE USMC RET DIRECTOR 2.0 0.0 X 26250 0 0 SMA KENNETH O PRESTON USA RET DIRECTOR 2.0 0.0 X 34500 0 0 CMSAF JAMES A ROY USAF RET DIRECTOR 2.0 0.0 X 34500 0 0 LT GEN ROGER SCHULTZ USA RET DIRECTOR 2.0 0.0 X 34500 0 0 VADM PATRICIA A TRACEY USN RET DIRECTOR 2.0 0.0 X 30250 0 0 MR THOMAS WALSH DIRECTOR 2.0 0.0 X 33000 0 0 M DELAHAN CIO 40.0 0.0 X 388061 0 26023 D FRENCH CFO 40.0 0.0 X 422581 0 43000 C GABRIEL SVP OPERATIONS 40.0 0.0 X 293147 0 38114 M GIBSON ASSOCIATION SECRETARY 40.0 0.0 X 118884 0 53156 A HOOVER VP HUMAN RESOURCES 40.0 0.0 X 232703 0 40839 C KLEIN CAE 40.0 0.0 X 210006 0 32047 C LIGHT SVP MARKETING 40.0 0.0 X 0 284265 97546 M MOSER GENERAL COUNSEL 40.0 0.0 X 0 374231 55062 M WONG SVP ASSN INSURANCE MARKETS 40.0 0.0 X 0 266841 23142 A GORDON MONROE TREASURER 40.0 0.0 X 185928 0 32706 B ABEBE IT DIRECTOR 40.0 0.0 X 179239 0 56711 D ALMARAZ IT DIRECTOR 40.0 0.0 X 181413 0 31580 J HICKS IT DIRECTOR 40.0 0.0 X 188354 0 67421 T SHUEY III VP, REGIONAL OPERATIONS 40.0 0.0 X 213848 0 35010 4219894 925337 704876 40 false true false MANNING NAPIER 290 WOODCLIFF DRIVE FAIRPORT NY 14450 INV MGMT SERVICES 634325 CAPTECH 7100 FOREST AVE RICHMOND VA 23226 IT DEV SERVICES 603392 EXAMINATION MANAGEMENT SERVICES IN 1111 WEST MOCKINGBIRD LANE DALLAS TX 75320 MED INFO SERVICES 350702 THEODORE G SHUEY JR 1754 CHURCHVILLE AVE STAUNTON VA 24401 CONSULTING SERVICES 340000 DATA DIMENSIONS LLC 400 MIDLAND COURT SUITE 201 JANESVILLE WI 535471207 DATA ENTRY SERVICES 197928 9 0 BETTER ALTERNATIVE INSURANCE PROGRAM 524298 45173239 45173239 GROUP TERM INSURANCE PROGRAM 524298 15233211 15233211 LEVEL TERM INSURANCE PROGRAM 524298 40823196 40823196 GROUP SELECT TERM INSURANCE PROGRAM 524298 6829074 6829074 7-20 YEAR TERM INSURANCE PROGRAM 524298 39795 39795 215229 215229 108313744 2060114 2060114 0 0 1175353 828156 347197 0 347197 347197 165277230 156668281 8608949 8608949 8608949 0 0 0 0 0 0 0 0 0 REFERRAL FEES 900099 684616 684616 SSLI ADMIN FEES 900099 674062 674062 1358678 120688682 110019619 10669063 X 0 54216 0 82809124 3271111 0 11538734 2225791 1540172 873163 0 158554 97146 0 0 653890 1579881 841551 1497817 1029263 0 1530950 865320 0 283560 1102406 0 1463737 122089 FIELD SERVICE REP FEES 15892911 STATE AND LOCAL TAXES 83808 BANK SERVICE CHARGES 660889 OTHER THAN TEMP IMPAIR 275663 159878 130611624 3200 5928 4062469 7142602 0 0 23716069 25244557 0 0 0 0 0 0 0 0 9483404 10745804 27965236 12665209 14899623 15300027 0 0 0 0 176001572 167669558 0 0 0 0 228166337 226108476 8230935 10246194 0 0 10531726 10336269 0 0 0 0 0 0 39605714 40060797 0 0 49216557 54343746 107584932 114987006 X 0 0 0 0 120581405 111121470 120581405 111121470 228166337 226108476 X -9922942 3616452 -3153445 X false true X true false 8843211 8843211 2899196 869759 2029437 3837925 2684253 1153672 12384904 9111197 3273707 15300027 INVEST IN 5STAR FINANCIAL, LLC 73160453 C FIXED MATURITY SECURITIES 27141087 F EQUITY SECURITIES 67368018 F 167669558 0 PREMIUMS DUE UNDERWRITERS 26864225 PENSION 26570619 ANNUAL REFUNDS DUE MEMBERS 9590 CONTINGENT LIAB. HEALTH & FSA 7330 INTEREST RATE SWAP FAIR VALUE 891982 54343746 120536616 -929553 -929553 121466169 -777487 -777487 120688682 130464020 781949 781949 129682071 929553 929553 130611624 PART XI, LINE 2D - INVESTMENT MANAGEMENT FEES (653,890) OTHER THAN TEMPORARY IMPAIRMENT-SECURITIES (275,663) ----------- TOTAL (929,553) PART XI, LINE 4B - RENTAL EXPENSES (777,487) PART XII, LINE 2D - RENTAL EXPENSES 777,487 INSURANCE CONTRIBUTIONS REFUNDED TO MEMBERS 4,462 -------- TOTAL 781,949 PART XII, LINE 4B - INVESTMENT MANAGEMENT FEES 653,890 OTHER TEMPORARY IMPAIRMENT - SECURITIES 275,663 -------- TOTAL 929,553 true COLLEGE SCHOLARSHIP FOR FAMILY OF DECEASED MEMBERS 1 54216 NOT APPLICABLE SCH I, PART I, LINE 2 - GRANT FUND PROCEDURES: CHARLES C. BLANTON AFBA FAMILY SURVIVOR COLLEGE SCHOLARSHIP - THE 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. ELIGIBLE FAMILIES ARE NOTIFIED, ADVISED OF SCHOLARSHIP TERMS AND HOW TO APPLY FOR PAYMENTS. A LIST OF ELIGIBLE SCHOLARSHIP RECIPIENTS IS MAINTAINED BY AFBA. WHEN AN APPLICATION IS RECEIVED THE NAME IS CHECKED AGAINST THE LIST TO VERIFY ELIGIBILITY. THE APPLICATION IS ALSO CHECKED TO DETERMINE IF THE REQUEST FALLS WITHIN OTHER SCHOLARSHIP GUIDELINES INCLUDING AMOUNT LIMITATIONS, NATURE OF ITEMS REQUESTED, TIME EXPIRATION LIMITATIONS AND ACCREDITATION OF COLLEGE OR UNIVERSITY. THE COLLEGE OR UNIVERSITY IS CONTACTED TO CONFIRM THE BALANCE DUE AND TO VERIFY ANY LINE ITEMS WHERE THE NATURE IS UNCLEAR. ONCE ALL CRITERIA ARE SATISFIED A CHECK IS ISSUED DIRECTLY TO THE COLLEGE OR UNIVERSITY. X X true true X X X X X false false false GEN RALPH EBERHART USAF RET PRES AND CHAIRMAN 634586 0 441718 0 138926 0 60000 0 12519 0 1287749 0 0 0 M DELAHAN CIO 281250 0 75000 0 31811 0 13500 0 12523 0 414084 0 0 0 D FRENCH CFO 303000 0 93000 0 26581 0 30481 0 12519 0 465581 0 0 0 C GABRIEL SVP OPERATIONS 235564 0 52500 0 5083 0 25785 0 12329 0 331261 0 0 0 M GIBSON ASSOCIATION SECRETARY 103685 0 13000 0 2199 0 41734 0 11422 0 172040 0 0 0 A HOOVER VP HUMAN RESOURCES 195150 0 35172 0 2381 0 28757 0 12082 0 273542 0 0 0 C KLEIN CAE 187665 0 20000 0 2341 0 20041 0 12006 0 242053 0 0 0 C LIGHT SVP MARKETING 0 229383 0 51023 0 3859 0 85260 0 12286 0 381811 0 0 M MOSER GENERAL COUNSEL 0 288200 0 76950 0 9081 0 42543 12519 0 429293 0 0 M WONG SVP ASSN INSURANCE MARKETS 0 213382 0 48645 0 4814 0 10932 0 12210 0 289983 0 0 A GORDON MONROE TREASURER 177600 0 5000 0 3328 0 20781 0 11925 0 218634 0 0 0 B ABEBE IT DIRECTOR 160166 0 17000 0 2073 0 44912 0 11799 0 235950 0 0 0 D ALMARAZ IT DIRECTOR 163816 0 15053 0 2544 0 19718 0 11862 0 212993 0 0 0 J HICKS IT DIRECTOR 169119 0 16000 0 3235 0 55559 0 11862 0 255775 0 0 0 T SHUEY III VP, REGIONAL OPERATIONS 180415 0 33048 0 385 0 23031 0 11979 0 248858 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 $4,568 IN 2017. 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 16,692 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. 43 DEATH CLAIMS WERE PAID OUT IN 2017 TOTALLING TO $3,300,000. 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 LOSS - PENSION (3,228,162) ANNUAL REFUNDS DUE MEMBERS (4,462) INTEREST RATE SWAP FAIR MARKET VALUE 79,179 ------------ $(3,153,445) AFBA INVESTMENT TRUST 909 N WASHINGTON STREET ALEXANDRIA VA 22314 516588783 GRANTOR TRUST VA AFBA TRUST 1.00000 true 5STAR FINANCIAL LLC 909 N WASHINGTON STREET ALEXANDRIA VA 22314 521616382 FINANCIAL SRVCS VA AFBA INV TRUST C CORP -654324 68311956 1.00000 true 5STAR LIFE INSURANCE COMPANY 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541829709 LIFE INSURANCE VA 5STAR FIN LLC C CORP -6706691 392525742 1.00000 true 5STAR GENERAL AGENCY LLC 909 N WASHINGTON STREET ALEXANDRIA VA 22314 020564967 INSURANCE SALES VA 5STAR LIFE INS C CORP 1.00000 true 5STAR ADMINISTRATORS INC 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541802185 INACTIVE VA 5STAR FIN LLC C CORP 1.00000 true 5STAR ADVERTISING COMPANY 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541536557 INACTIVE VA 5STAR FIN LLC C CORP 1.00000 true false false false false false false false false false false true true true true true true true true true 5 Star Financial LLC K 1198161 CASH, ACCRUAL 5 Star Life Insurance Company L 865669 CASH, ACCRUAL 5 Star Financial LLC M 83016 CASH, ACCRUAL 5 Star Life Insurance Company N 1173577 CASH, ACCRUAL 5 Star Life Insurance Company O 1184292 CASH 5 Star Life Insurance Company P 100574943 CASH, ACCRUAL 5 Star Financial LLC Q 205615 CASH 5 Star Life Insurance Company Q 1434270 CASH 5 Star Life Insurance Company R 6698618 CASH 5 Star Life Insurance Company S 7484322 CASH