2013-11-15T12:06:03-06:00 2012-12-31 PricewaterhouseCoopers LLP 1301 K STREET NW SUITE 800W WASHINGTON DC 200053333 990 2012-01-01 530209087 ARMED FORCES BENEFIT ASSOCIATION % DEBORAH FRENCH ARME 7035494455 909 N WASHINGTON STREET Suite ALEXANDRIA VA 223141556 DEBORAH R FRENCH 7035494455 2013-11-13 true 2024141000 2012 2016-02-25 16:41:14Z RALPH EBERHART CEO 909 N WASHINGTON ST ALEXANDRIA VA 22314 99897678 false X WWW.AFBA.COM X 1947 VA 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. 13 12 108 0 0 0 0 97146936 96293308 2045340 2364300 201740 230922 99394016 98888530 202938 54089 77214464 79862021 13811483 13630247 0 0 0 16609864 17555276 107838749 111101633 -8444733 -12213103 247668330 209740530 66442644 72585192 181225686 137155338 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 58437507 46189692 PROVIDED BETTER ALTERNATIVE TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 158,008 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $22.5 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 346 DEATH CLAIMS TOTALING $40,122,385 IN 2012. 21908919 21272377 PROVIDED GROUP DECREASING TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 105,312 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $2.0 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 2,352 DEATH CLAIMS TOTALING $15,105,350 IN 2012. 21360738 21507915 PROVIDED LEVEL TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 86,372 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $7.1 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 182 DEATH CLAIMS TOTALING $12,974,000 IN 2012. 9394469 7323324 111101633 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 39 0 true 108 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 X GEN RALPH EBERHART USAF RET 40.0 X X 970604 0 74286 GEN JOHN N ABRAMS USA RET 2.0 X 47000 0 0 ADM THOMAS COLLINS USCG RET 2.0 X 43000 0 0 CHARLES K COLLUM JR 2.0 X 43000 0 0 GEN LARRY R ELLIS USA RET 2.0 X 33000 0 0 GEN HAL M HORNBURG USAF RET 2.0 X 25000 0 0 GEN JAMES L JONES USMC RET 2.0 X 31000 0 0 GEN J MICHAEL LOH USAF RET 2.0 X 34000 0 0 ADM T JOSEPH LOPEZ USN RET 2.0 X 43000 0 0 CMSAF GERALD R MURRAY USAF RET 2.0 X 39000 0 0 GEN PETER PACE USMC RET 2.0 X 32000 0 0 LT GEN ROGER SCHULTZ USA RET 2.0 X 16000 0 0 VADM PATRICIA TRACEY USN RET 2.0 X 40000 0 0 R BELL 40.0 X 194427 0 30464 M CENTANNI 40.0 X 270858 0 49688 M COLE 40.0 X 319556 0 25176 D FRENCH 40.0 X 287807 0 49608 C GABRIEL 40.0 X 244747 0 47882 A GORDON MONROE 40.0 X 177990 0 37963 J SANDEFUR 40.0 X 227637 0 23615 K TAYLOR 40.0 X 211783 0 41852 M SMITH 40.0 X 98969 0 45464 M DELLAHAN 40.0 X 208941 0 20731 R COTTLE 40.0 X 168178 0 37465 B ALT 40.0 X 162827 0 32209 D ALMAREZ 40.0 X 160840 0 33567 B ABEBE 40.0 X 151763 0 42663 C LIANG 40.0 X 142220 0 48950 4425147 0 641583 29 false true false EXAMINATION MANAGEMENT SERVICES IN MED INFO SERVICES 709379 INTERNETWORK CONSULTING SERVICES IT DEV SERVICES 432040 PRICEWATERHOUSECOOPERS LLP AUDIT, TAX SERVICES 186073 TWINSTARS CORPORATION IT DEV SERVICES 154171 CLINICAL REFERENCE LAB INC MED LAB SERVICES 148329 6 0 BETTER ALTERNATIVE INSURANCE PROGRAM 524298 46189692 46189692 GROUP TERM INSURANCE PROGRAM 524298 21272377 21272377 LEVEL TERM INSURANCE PROGRAM 524298 21507915 21507915 GROUP SELECT TERM INSURANCE PROGRAM 524298 7112723 7112723 7-20 YEAR TERM INSURANCE PROGRAM 524298 115511 115511 95090 95090 96293308 2364300 2364300 0 0 983134 1009148 -26014 0 -26014 -26014 0 0 0 0 REFERRAL FEES 900099 256936 256936 256936 98888530 96524230 2364300 0 54089 0 79862021 3515615 0 6365920 2256035 860234 632443 0 47897 311356 0 0 0 2243932 970592 2275672 1909861 0 1765681 221436 0 165917 149868 0 1361796 92539 FIELD SERVICE REP FEES 5586488 STATE AND LOCAL TAXES 93582 BANK SERVICE CHARGES 313024 OTHER EXPENSES 45635 111101633 X 3200 3200 3803896 988914 0 0 16536263 18398282 0 0 0 0 0 0 0 0 19182233 8369590 25690814 12148866 14470074 13541948 0 0 0 0 193672664 168438596 0 0 0 0 247668330 209740530 7466202 6930191 0 0 10475201 7584417 0 0 0 0 0 0 2000000 7408828 0 0 46501241 50661756 66442644 72585192 X 0 0 0 0 181225686 137155338 181225686 137155338 247668330 209740530 X -12213103 -15432762 -11173160 -5251323 X false true X true false 8843211 8843211 2899196 144960 2754236 2157108 1892929 264179 11791299 10110977 1680322 13541948 INVEST IN 5STAR FINANCIAL, LLC 82210907 C HENNESSY EQUITY AND INCOME FND 38983373 F HENNESSY LARGE CAP FND 18462253 F HENNESSY CORE BOND FND 20140324 F HENNESSY SMALL CAP FND 1856703 F HENNESSY MID CAP FND 6598852 F HENNESSY MUTUAL FND 186184 F 168438596 0 PREMIUMS DUE UNDERWRITERS 28389570 PENSION & DEFERRED BOARD COMP 22213497 ANNUAL REFUNDS DUE MEMBERS 48792 CONTINGENT LIAB. HEALTH & FSA 9897 50661756 83455768 -15432762 -15432762 98888530 98888530 111144461 42828 42828 111101633 111101633 PART XII, LINE 2D - OTHER CHANGES IN NET ASSETS: INSURANCE CONTRIBUTIONS REFUNDED TO MEMBERS = $42,828 true COLLEGE SCHOLARSHIP FOR FAMILY OF DECEASED MEMBERS 1 1469 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 X true true X X X X X false true false GEN RALPH EBERHART USAF RET 603507 0 312500 0 54597 0 65403 0 8883 0 1044890 0 0 0 R BELL 146422 0 45000 0 3005 0 22388 0 8076 0 224891 0 0 0 M CENTANNI 235068 0 32000 0 3790 0 41059 0 8629 0 320546 0 0 0 M COLE 264379 0 30000 0 25177 0 16313 0 8863 0 344732 0 0 0 D FRENCH 240000 0 45000 0 2807 0 40854 0 8754 0 337415 0 0 0 C GABRIEL 213166 0 28000 0 3581 0 39231 0 8651 0 292629 0 0 0 A GORDON MONROE 167479 0 8100 0 2411 0 29488 0 8475 0 215953 0 0 0 J SANDEFUR 192851 0 28000 0 6786 0 15040 0 8575 0 251252 0 0 0 K TAYLOR 181256 0 28000 0 2527 0 33376 0 8476 0 253635 0 0 0 M DELLAHAN 187310 0 15000 0 6631 0 12107 0 8624 0 229672 0 0 0 R COTTLE 160134 0 5000 0 3044 0 29016 0 8449 0 205643 0 0 0 B ALT 150753 0 10000 0 2074 0 23797 0 8412 0 195036 0 0 0 D ALMAREZ 148085 0 10670 0 2085 0 25143 0 8424 0 194407 0 0 0 B ABEBE 137349 0 12500 0 1914 0 34298 0 8365 0 194426 0 0 0 C LIANG 127853 0 12500 0 1867 0 40611 0 8339 0 191170 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 $13,436 IN 2012. SCH J PART I LINE 4B - SUPPLEMENTAL NONQUALIFIED PLAN NET PERIODIC PENSION COST: PRESIDENT - GEN. R. EBERHART, USAF (RET.) $49,769 CIO - R. BELL $4,551 GENERAL COUNSEL - M. COLE $17,704 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 19,725 MEMBERS AND SPOUSES. INSURANCE IN FORCE TOTALLED $3.4 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. 47 DEATH CLAIMS WERE PAID OUT IN 2012 TOTALLING TO $3,735,000. 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 (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 8 - RECONCILIATION OF NET ASSETS: PRIOR PERIOD ADJUSTMENTS CONSIST OF: DAC CHANGE IN ACCOUNTING METHODOLOGY ($11,173,160) FORM 990, PART XI, LINE 9 - RECONCILIATION OF NET ASSETS: OTHER CHANGES IN NET ASSETS CONSIST OF: OTHER COMPREHENSIVE INCOME - SECURITIES 517,813 OTHER COMPREHENSIVE LOSS - PENSION (5,726,308) ANNUAL REFUNDS DUE MEMBERS (42,828) ------------ ($5,251,323) 5STAR BANK 101 S SAHWATCH STE 100 COLORADO SPRINGS CO 80903 930762778 BANKING SVCS CO 5STAR FNCL LLC C CORP 1545000 178017000 1.00000 true 5STAR LIFE INSURANCE COMPANY 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541829709 LIFE INSURANC VA 5STAR FNCL LLC C CORP 3431000 316658000 1.00000 true 5STAR FINANCIAL LLC 909 N WASHINGTON STREET ALEXANDRIA VA 22314 521616382 FINANCIAL SER VA AFBA INV TRUST C CORP -444000 79460000 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 FBR FUNDS 1001 NINETEENTH STREET NORTH ARLINGTON VA 22209 541821041 INV FUNDS DE AFBA TRUST 6511000 0 0.00000 false HENNESSY FUNDS 7520 REDWOOD BLVD NOVATO CA 94945 680176227 INV FUNDS CA AFBA TRUST -270000 37973000 0.09410 false true true false false false false false false false false true true true true true true true true true 5STAR BANK A 12958 CASH, ACCRUAL 5STAR FINANCIAL LLC B 1300000 CASH 5STAR FINANCIAL LLC K 1491913 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY L 633333 CASH, ACCRUAL 5STAR BANK M 164234 CASH, ACCRUAL 5STAR FINANCIAL LLC M 110320 CASH 5STAR LIFE INSURANCE COMPANY M 681698 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY N 1547126 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY O 528942 CASH 5STAR BANK O 394968 CASH 5STAR LIFE INSURANCE COMPANY P 86005671 CASH, ACCRUAL 5STAR BANK Q 704953 CASH 5STAR LIFE INSUARNCE COMPANY Q 1468406 CASH 5STAR LIFE INSURANCE COMPANY R 7542982 CASH 5STAR LIFE INSURANCE COMPANY S 8141091 CASH 5STAR FINANCIAL LLC S 4500000 CASH