2015-11-16T10:21:34-06:00 2014-12-31 PricewaterhouseCoopers LLP 600 13TH STREET NW SUITE 1000 WASHINGTON DC 20005 990 2014-01-01 530209087 ARMED FORCES BENEFIT ASSOCIATION % DEBORAH FRENCH ARME 7035494455 909 N WASHINGTON STREET ALEXANDRIA VA 223141556 Deborah French CFO 7035494455 2015-11-13 true KATRINA WALKER P00997158 2024141000 2014 2016-04-25 22:37:26Z RALPH EBERHART CEO 909 N WASHINGTON ST ALEXANDRIA VA 22314 155093441 false X WWW.AFBA.COM X 1947 VA SEE PART III, LINE 1 13 12 113 0 0 0 94796169 96341076 6764125 8422573 989642 1150357 102549936 105914006 82558 3015 77759061 75486848 13923731 13229851 0 0 0 17060815 23817196 108826165 112536910 -6276229 -6622904 217069428 222537849 65089755 91391610 151979673 131146239 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 56648723 45797456 PROVIDED BETTER ALTERNATIVE TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 154,827 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $22.0 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 352 DEATH CLAIMS TOTALING $38,976,643 IN 2014. 20465402 18957064 PROVIDED GROUP DECREASING TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 94,531 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $1.6 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 2,332 DEATH CLAIMS TOTALING $14,113,650 IN 2014. 29393935 23616625 PROVIDED LEVEL TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 114,748 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $9.3 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 239 DEATH CLAIMS TOTALING $15,609,000 IN 2014. 6028850 7969931 112536910 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 57 0 true 113 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 897333 0 72716 GEN JOHN N ABRAMS USA RET DIRECTOR 2.0 0.0 X 44000 0 0 ADM THOMAS COLLINS USCG RET DIRECTOR 2.0 0.0 X 41000 0 0 CHARLES K COLLUM JR DIRECTOR 2.0 0.0 X 41000 0 0 GEN LARRY R ELLIS USA RET DIRECTOR 2.0 0.0 X 33000 0 0 GEN HAL M HORNBURG USAF RET DIRECTOR 2.0 0.0 X 41000 0 0 GEN JAMES L JONES USMC RET DIRECTOR 2.0 0.0 X 30000 0 0 ADM T JOSEPH LOPEZ USN RET DIRECTOR 2.0 0.0 X 41000 0 0 CMSAF GERALD R MURRAY USAF RET DIRECTOR 2.0 0.0 X 21000 0 0 GEN PETER PACE USMC RET DIRECTOR 2.0 0.0 X 28000 0 0 LT GEN ROGER SCHULTZ USA RET DIRECTOR 2.0 0.0 X 39000 0 0 VADM PATRICIA TRACEY USN RET DIRECTOR 2.0 0.0 X 33000 0 0 SMA KENNETH O PRESTON USA RET DIRECTOR 2.0 0.0 X 18500 0 0 CMSAF JAMES A ROY USAF RET DIRECTOR 2.0 0.0 X 18500 0 0 M DELAHAN CIO 40.0 0.0 X 288987 0 22053 M CENTANNI VP HUMAN RESOURCES 40.0 0.0 X 208882 0 13221 M COLE GENERAL COUNSEL 40.0 0.0 X 328261 0 22716 D FRENCH CFO 40.0 0.0 X 329255 0 22679 C GABRIEL SVP OPERATIONS 40.0 0.0 X 263362 0 21137 A GORDON MONROE TREASURER 40.0 0.0 X 191917 0 18371 J SANDEFUR SVP MARKETING 40.0 0.0 X 241555 0 19958 K TAYLOR CAE 40.0 0.0 X 226743 0 19648 M SMITH CORP SECRETARY 40.0 0.0 X 108628 0 31735 A HOOVER VP HUMAN RESOURCES 40.0 0.0 X 59590 0 2226 R COTTLE IT DIRECTOR 40.0 0.0 X 176506 0 17839 B ALT IT DIRECTOR 40.0 0.0 X 172844 17440 D ALMAREZ FSR VP 40.0 0.0 X 176519 0 17621 B ABEBE SR PROGRAMMER 40.0 0.0 X 168190 0 34773 J HICKS IT DIRECTOR, POLICY ADMIN. 40.0 0.0 X 178327 0 45271 4445899 0 399404 39 false true false EXAMINATION MANAGEMENT SERVICES IN MED INFO SERVICES 650831 INTERNETWORK CONSULTING SERVICES IT DEV SERVICES 369710 PRICEWATERHOUSECOOPERS LLP AUDIT, TAX SERVICES 288208 TWINSTARS CORPORATION IT DEV SERVICES 163774 CLINICAL REFERENCE LAB INC MED LAB SERVICES 112027 5 0 BETTER ALTERNATIVE INSURANCE PROGRAM 524298 45797456 45797456 GROUP TERM INSURANCE PROGRAM 524298 18957064 18957064 LEVEL TERM INSURANCE PROGRAM 524298 23616625 23616625 GROUP SELECT TERM INSURANCE PROGRAM 524298 7808629 7808629 7-20 YEAR TERM INSURANCE PROGRAM 524298 70283 70283 91019 91019 96341076 2405787 2405787 0 0 805997 729647 76350 0 76350 76350 54466574 48449788 6016786 6016786 6016786 0 0 0 REFERRAL FEES 900099 985436 985436 GRANT REFUND 88571 88571 1074007 105914006 97491433 8422573 0 3015 0 75486848 3208794 0 7112906 1134386 1048094 725671 0 187862 325633 0 0 578495 2714513 1205692 2300322 1547021 0 1560356 545149 0 444020 305546 0 1192964 95381 FIELD SERVICE REP FEES 9303454 STATE AND LOCAL TAXES 64861 BANK SERVICE CHARGES 411218 OTHER THAN TEMP IMPAIR 851401 183308 112536910 3200 3200 6031909 4524199 0 0 18115978 22910817 0 0 0 0 0 0 0 0 10237182 13685647 24014097 10974084 13620741 13040013 0 0 0 0 169060418 168373973 0 0 0 0 217069428 222537849 7772306 9169906 0 0 10079417 10622944 0 0 0 0 0 0 11719697 22608653 0 0 35518335 48990107 65089755 91391610 X 0 0 0 0 151979673 131146239 151979673 131146239 217069428 222537849 X -6622904 -2700798 -11509732 X false true X true false 8843211 8843211 2899196 434879 2464317 3151314 2109995 1041319 9120376 8429210 691166 13040013 INVEST IN 5STAR FINANCIAL, LLC 86691152 C FIXED MATURITY SECURITIES 18841171 F EQUITY SECURITIES 62702963 F PREFERRED STOCK 138687 F 168373973 0 PREMIUMS DUE UNDERWRITERS 28640331 PENSION 20321799 ANNUAL REFUNDS DUE MEMBERS 18954 CONTINGENT LIAB. HEALTH & FSA 9023 48990107 102424388 -2700798 -1429896 -4130694 106555082 -641076 -641076 105914006 111763190 656176 656176 111107014 1429896 1429896 112536910 PART XI, LINE 2D INVESTMENT MANAGEMENT FEES (578,495) OTHER THAN TEMPORARY IMPAIRMENT-SECURITIES (851,401) ----------- TOTAL (1,429,896) PART XI, LINE 4B RENTAL EXPENSES (729,647) GREANT REFUND 88,571 -------- TOTAL (641,067) PART XII, LINE 2D RENTAL EXPENSES 729,647 INSURANCE CONTRIBUTIONS REFUNDED TO MEMBERS 15,100 GRANT REFUND (88,571) -------- TOTAL 656,176 PART XII, LINE 4B INVESTMENT MANAGEMENT FEES 578,495 INSURANCE CONTRIBUTIONS REFUNDED TO MEMBERS 851,401 -------- TOTAL 1,429,896 X X true true X X X X X false true false GEN RALPH EBERHART USAF RET PRES AND CHAIRMAN 630197 0 217813 0 49323 0 63000 0 9716 0 970049 0 0 0 M DELAHAN CIO 249039 0 31769 0 8179 0 12452 0 9601 0 311040 0 0 0 M CENTANNI VP HUMAN RESOURCES 176179 0 30365 0 2338 0 7468 0 5753 0 222103 0 0 0 M COLE GENERAL COUNSEL 286135 0 26000 0 16126 0 13000 0 9716 0 350977 0 0 0 D FRENCH CFO 270192 0 55000 0 4063 0 13000 0 9679 0 351934 0 0 0 C GABRIEL SVP OPERATIONS 230977 0 27500 0 4885 0 11599 0 9538 0 284499 0 0 0 A GORDON MONROE TREASURER 180041 0 8600 0 3276 0 9023 0 9348 0 210288 0 0 0 J SANDEFUR SVP MARKETING 208525 0 26000 0 7030 0 10501 0 9457 0 261513 0 0 0 K TAYLOR CAE 197228 0 26000 0 3515 0 10212 0 9436 0 246391 0 0 0 R COTTLE IT DIRECTOR 168056 0 4500 0 3950 0 8528 0 9311 0 194345 0 0 0 B ALT IT DIRECTOR 158627 0 12000 0 2217 0 8157 0 9283 0 190284 0 0 0 D ALMAREZ FSR VP 161988 0 12043 0 2488 0 8325 0 9296 0 194140 0 0 0 B ABEBE SR PROGRAMMER 151160 0 15000 0 2030 0 25534 0 9239 0 202963 0 0 0 J HICKS IT DIRECTOR, POLICY ADMIN. 160869 0 15000 0 2458 0 35996 0 9275 0 223598 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 $5,235 IN 2014. SCH J PART I LINE 4B - SUPPL. NONQUALIFIED PLAN NET PERIODIC PENSION COST (TERMINATED 12/3/13): PRESIDENT - GEN. R. EBERHART, USAF (RET.) $55,255 CFO - D. FRENCH $5,522 CHRO - M. CENTANNI $4,233 GENERAL COUNSEL - M. COLE $7,654 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 20,378 MEMBERS AND SPOUSES. INSURANCE IN FORCE TOTALLED $3.5 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. 35 DEATH CLAIMS WERE PAID OUT IN 2014 TOTALLING TO $3,000,000. 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. AFBA HAS FOLLOWED THIS PRACTICE FOR MANY YEARS AND PLANS TO HAVE THIS POLICY FORMALLY ADOPTED BY THE BOARD OR A COMMITTEE THEREOF. 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 11,494,632 ANNUAL REFUNDS DUE MEMBERS 15,100 ------------ $11,509,732 5STAR BANK 101 S SAHWATCH STE 100 COLORADO SPRINGS CO 80903 930762778 BANKING SVCS CO 5STAR FNCL LLC C CORP 2196000 172783000 1.00000 true 5STAR LIFE INSURANCE COMPANY 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541829709 LIFE INSURANC VA 5STAR FNCL LLC C CORP -2560000 360885000 1.00000 true 5STAR FINANCIAL LLC 909 N WASHINGTON STREET ALEXANDRIA VA 22314 521616382 FINANCIAL SER VA AFBA INV TRUST C CORP 309000 81405000 1.00000 true AFBA INVESTMENT TRUST 909 N WASHINGTON STREET ALEXANDRIA VA 22314 516588783 GRANTOR TRUST VA AFBA TRUST 1.00000 true 5STAR GENERAL AGENCY 909 N WASHINGTON STREET ALEXANDRIA VA 22314 020564967 INS SALES VA 5STAR LIFE INS C CORP 1.00000 true 5STAR ADVERTISING COMPANY 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541536557 INACTIVE VA 5STAR FNCL LLC C CORP 1.00000 true 5STAR ADMINISTRATORS INC 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541802185 INACTIVE VA 5STAR FNCL LLC C CORP 1.00000 true true true false false false false false false false false true true true true true true true true true 5STAR BANK A 4335 CASH, ACCRUAL 5STAR FINANCIAL LLC K 1337029 CASH, ACCRUAL 5STAR BANK L 47715 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY L 1240430 CASH, ACCRUAL 5STAR BANK M 174191 CASH, ACCRUAL 5STAR FINANCIAL LLC M 84055 CASH 5STAR LIFE INSURANCE COMPANY M 801200 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY N 1274277 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY O 724873 CASH 5STAR FINANCIAL LLC B 6100000 CASH 5STAR LIFE INSURANCE COMPANY P 94392715 CASH, ACCRUAL 5STAR BANK Q 470478 CASH 5STAR LIFE INSURANCE COMPANY Q 1493058 CASH 5STAR LIFE INSURANCE COMPANY R 7920612 CASH 5STAR LIFE INSURANCE COMPANY S 8690214 CASH 5STAR FINANCIAL LLC S 1119755 CASH