2020-07-14T14:36:40-05:00 2019-06-30 161131146 BONADIO & CO LLP 171 SULLYS TRAIL PITTSFORD NY 14534 990 2018-07-01 201260597 NBA PLAYERS' HEALTH AND WELFARE BENEFIT PLAN NBAP 8047186092 C/O ALIGHT 1025 BOULDRS PKWY NO 405 RICHMOND VA 23225 ROBERT CRIQUI GARY ARRICK TRUSTEES 8047186092 2020-07-13 1 DAWN MINEMIER P01339753 5853811000 64.201.232.104 2020-07-13 21:22:37 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 101C5B7212EC88EE0E9B23FAA05451CCC5FBB977 2018 2021-09-10 13:11:23Z G ARRICK N AARON C/O ALIGHT 1025 BOULDRS PKWY NO 405 RICHMOND VA 23225 121955151 0 X N/A X 2004 NY THE PLAN PROVIDES CERTAIN HEALTH AND WELFARE BENEFITS TO ELIGIBLE (CONTINUED ON SCHEDULE O) (CONTINUATION OF LINE 1) CURRENT AND FORMER NATIONAL BASKETBALL ASSOCIATION ("NBA") PLAYERS AND THEIR SPOUSES AND ELIGIBLE DEPENDENTS PURSUANT TO THE ELIGIBILITY RULES FOR EACH BENEFIT. 6 6 0 0 0 0 0 0 2956188 21451564 7895649 10961871 30000 0 10881837 32413435 0 0 8043714 32464199 0 0 0 0 0 1024126 786928 9067840 33251127 1813997 -837692 290152785 295035339 811174 246388 289341611 294788951 X THE PLAN PROVIDES CERTAIN HEALTH AND WELFARE BENEFITS TO ELIGIBLE CURRENT AND FORMER NBA PLAYERS AND THEIR SPOUSES AND ELIGIBLE DEPENDENTS PURSUANT TO THE ELIGIBILITY RULES FOR EACH BENEFIT. 0 0 HEALTH REIMBURSEMENT ACCOUNTS (HRAS) FOR ELIGIBLE CURRENT AND FORMER NBA PLAYERS AND THEIR FAMILIES THAT COVER HEALTH-RELATED COSTS QUALIFIED UNDER IRS RULES. MEDICAL AND PRESCRIPTION DRUG COVERAGE TO ELIGIBLE RETIRED NBA PLAYERS AND THEIR FAMILIES. MEDICAL, PRESCRIPTION DRUG, DENTAL, VISION, LIFE/AD&D AND DISABILITY INSURANCE COVERAGE TO ELIGIBLE CURRENT NBA PLAYERS AND THEIR FAMILIES. EX-PATRIATE MEDICAL, DENTAL, PRESCRIPTION DRUG AND VISION COVERAGE FOR ELIGIBLE CURRENT INTERNATIONAL NBA PLAYERS AND THEIR FAMILIES AND TUITION REIMBURSEMENT BENEFITS FOR ELIGIBLE CURRENT AND FORMER NBA PLAYERS. 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 X 6 6 1 0 0 1 0 1 0 1 1 0 0 1 1 1 1 1 1 0 0 0 X ALIGHT SOLUTIONS 8047186092 1025 BOULDERS PARKWAY 405 RICHMOND VA 23225 X DANIEL RUBE TRUSTEE 1.00 X X 0 0 0 ERIC HUTCHERSON TRUSTEE 1.00 X X 0 0 0 NEIL AARON TRUSTEE 1.00 X X 0 0 0 RONALD KLEMPNER TRUSTEE 1.00 X X 0 0 0 GARY ARRICK TRUSTEE 1.00 X X 0 0 0 PURVIS SHORT TRUSTEE 1.00 X X 0 0 0 0 0 0 0 0 0 0 WELLINGTON TRUST COMPANY NA 280 CONGRESS STREET BOSTON MA 02210 INVESTMENT MANAGEMENT 588352 WELLS FARGO BANK 12 E 49TH STREET NEW YORK NY 10017 CUSTODIAL 165987 2 NBA TEAMS CONTRIBUTIONS 624100 18955563 18955563 SELF-PAY CONTRIBUTIONS 624100 2496001 2496001 21451564 6143303 6143303 94360284 89541716 4818568 4818568 4818568 32413435 21451564 0 10961871 32464199 724718 589 PARTICIPANT IMPUTED TAX 56419 PCORI FEES 4263 BANK CHARGES 939 33251127 575747 2290708 3700631 3878950 131854651 136717533 153561902 151583011 459854 565137 290152785 295035339 811174 246388 811174 246388 X 289341611 294788951 289341611 294788951 290152785 295035339 -837692 6285032 0 X 0 1 X 1 0 0 RUSSELL 3000(R) INDEX NL CTF4 76844975 F WTC-CTF INTERNATIONAL RESEARCH EQUITY PORTFOLIO 46379571 F WTC-CTF OPPORTUNISTIC INVESTMENT ALLOCATION 28358465 F 151583011 X 37973749 6285032 6285032 31688717 724718 724718 32413435 32526409 0 32526409 724718 724718 33251127 PART X, LINE 2: IN GENERAL, FOR EMPLOYEE BENEFIT PLANS, THEIR TAX-EXEMPT STATUS ITSELF IS DEEMED TO BE AN UNCERTAINTY, SINCE EVENTS COULD POTENTIALLY OCCUR TO JEOPARDIZE THEIR TAX-EXEMPT STATUS. THE PLAN FILES THE RETURN OF EXEMPT ORGANIZATION FROM INCOME TAX (FORM 990) AND THE ANNUAL RETURN/REPORT OF EMPLOYEE BENEFIT PLAN (FORM 5500) IN THE U.S. FEDERAL JURISDICTION. FORM 990, PART VI, SECTION A, LINE 2 BECAUSE THE PLAN IS JOINTLY OPERATED AND ADMINISTERED BY THE NBPA AND THE NBA, (I) GARY ARRICK IS IN A "BUSINESS RELATIONSHIP" WITH EACH OF RON KLEMPNER AND PURVIS SHORT BY VIRTUE OF RON KLEMPNER AND PURVIS SHORT EACH BEING EMPLOYED BY THE NBPA, OF WHICH GARY ARRICK IS THE CHIEF FINANCIAL OFFICER AND (II) THE NBA TRUSTEES ARE IN A "BUSINESS RELATIONSHIP" WITH EACH OTHER BY VIRTUE OF ALL BEING OFFICERS OF THE NBA. FORM 990, PART VI, SECTION A, LINE 5 THE DIVERSION IN QUESTION WAS THE USE BY FIVE PLAN PARTICIPANTS OF HEALTH REIMBURSEMENT ACCOUNT ("HRA") ASSETS WITHOUT SUBSTANTIATION ADEQUATE TO VERIFY THAT THE FUNDS WERE PROPERLY SOUGHT AND DISBURSED. IN OR ABOUT MAY 2019, THE PLAN'S THIRD-PARTY ADMINISTRATOR IDENTIFIED CERTAIN IRREGULARITIES IN CONNECTION WITH SEVERAL PARTICIPANT CLAIM SUBMISSIONS SEEKING REIMBURSEMENT FROM THEIR HRAS, SOME OF WHICH HAD BEEN PAID AND OTHERS FOR WHICH PAYMENT WAS PENDING. TO EXAMINE MORE CLOSELY THE IRREGULARITIES DESCRIBED ABOVE, AND TO ENSURE FULL COMPLIANCE WITH THEIR OBLIGATIONS, THE TRUSTEES PROMPTLY RETAINED TWO INDEPENDENT AND HIGHLY-QUALIFIED NATIONAL LAW FIRMS TO CONDUCT A COMPREHENSIVE REVIEW OF THE IRREGULAR CLAIMS AND OTHER CURRENT AND HISTORICAL CLAIMS IN ORDER TO IDENTIFY POTENTIAL CASES OF DISBURSEMENT OF HRA FUNDS OTHER THAN FOR ELIGIBLE EXPENSES. THE REVIEW IDENTIFIED REIMBURSEMENT PAYMENTS MADE IN CONNECTION WITH CLAIMS SUBMITTED BY THE FIVE PLAN PARTICIPANTS REFERENCED ABOVE FOR SERVICES THAT COULD NOT BE VERIFIED AS HAVING ACTUALLY BEEN RECEIVED BY THE PARTICIPANTS. THE AMOUNT OF THE PAYMENTS MADE FOR THESE UNSUBSTANTIATED CLAIMS IS $1,327,677 IN THE AGGREGATE. A PAYMENT TO A SIXTH PARTICIPANT IN THE AMOUNT OF $37,790 WAS IDENTIFIED DURING THE NEXT TAX YEAR. THE TRUSTEES TOOK IMMEDIATE CORRECTIVE AND PREVENTATIVE STEPS. THE PLAN FOLLOWED IRS CORRECTION PROCEDURES WITH RESPECT TO THE IMPERMISSIBLE PAYMENTS, INCLUDING SEEKING RECOUPMENT FROM THE SIX PLAN PARTICIPANTS FOR PAID AMOUNTS TO WHICH THEY WERE NOT ENTITLED, FREEZING THE HRAS OF THE PARTICIPANTS UNTIL SUCH AMOUNTS ARE RECOUPED, AND TREATING AND REPORTING THE AMOUNTS AS TAXABLE DISTRIBUTIONS TO THE EXTENT THE PARTICIPANTS HAVE NOT REPAID OR ARE NOT IN THE PROCESS OF REPAYING SUCH AMOUNTS. TO DATE, THE TRUSTEES HAVE SUCCEEDED IN RECOUPING $387,865 ($350,075 OF WHICH IS ATTRIBUTABLE TO THE 2018-19 TAX YEAR) AND CONTINUE TO TAKE ACTIONS TO RECOUP THE OUTSTANDING BALANCE. THE TRUSTEES ALSO IMPLEMENTED ADDITIONAL DETECTION PROCEDURES AND MORE STRINGENT SUBSTANTIATION REQUIREMENTS AND TOOK OTHER ACTIONS TO FORTIFY THE PLAN'S EXISTING INTERNAL CONTROLS. FORM 990, PART VI, SECTION A, LINE 7A THE NBA HAS THE RIGHT TO APPOINT AND REMOVE THREE NBA TRUSTEES, AND THE NBPA HAS THE RIGHT TO APPOINT AND REMOVE THREE NBPA TRUSTEES, EACH PURSUANT TO THE TRUST AGREEMENT ESTABLISHING THE PLAN. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED AND COMMENTED ON BY PLAN COUNSEL AND THE TRUSTEES. FORM 990, PART VI, SECTION B, LINE 12C EACH TRUSTEE ANNUALLY SIGNS A STATEMENT THAT AFFIRMS SUCH PERSON'S UNDERSTANDING OF THE FUND'S CONFLICT OF INTEREST POLICY; THIS CONFLICT OF INTEREST POLICY WAS PREVIOUSLY AGREED TO BY THE TRUSTEES. PRIOR TO THE SIGNING OF THE MOST RECENT STATEMENT, PLAN COUNSEL ADVISED THE TRUSTEES THAT THEY ARE NOT AWARE OF ANY CONFLICTS OF INTEREST OR POTENTIAL CONFLICTS OF INTEREST THAT INVOLVE THE TRUSTEES. THE TRUSTEES ARE REQUIRED TO DISCLOSE ANY CONFLICT OR POSSIBLE CONFLICT IN ACCORDANCE WITH THE TERMS OF THE CONFLICT OF INTEREST POLICY, AND ARE OTHERWISE PRECLUDED FROM ACTING AS A TRUSTEE WITH RESPECT TO ANY MATTER THAT WOULD POSE A CONFLICT OR POSSIBLE CONFLICT WITH THE CONFLICT OF INTEREST POLICY. TO ENSURE THE FUND OPERATES IN A MANNER CONSISTENT WITH ITS TAX EXEMPT STATUS AND DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS TAX EXEMPT STATUS, PERIODIC REVIEWS ARE CONDUCTED. FORM 990, PART VI, SECTION C, LINE 19 NO DOCUMENTS ARE AVAILABLE TO THE PUBLIC. CHICAGO PROFESSIONAL SPORTS LIMITED PARTNERSHIP DALLAS BASKETBALL LIMITED DENVER NUGGETS LIMITED PARTNERSHIP ROCKET BALL LTD LA CLIPPERS LLC MIAMI HEAT LIMITED PARTNERSHIP MINNESOTA TIMBERWOLVES BASKETBALL LIMITED PARTNERSHIP NEW ORLEANS PELICANS NBA LLC NEW YORK KNICKS LLC ORLANDO MAGIC LTD PHILADELPHIA 76ERS LP SACRAMENTO KINGS LIMITED PARTNERSHIP LP WASHINGTON BULLETS LP ATL INVESTCO LLC BANNER SEVENTEEN LLC BROOKLYN BASKETBALL HOLDINGS LLC HORNETS BASKETBALL LLC CAVALIERS OPERATING COMPANY LLC GSW SPORTS LLC PACERS BASKETBALL LLC MEMPHIS BASKETBALL LLC MILWAUKEE BUCKS LLC THE PROFESSIONAL BASKETBALL CLUB LLC SUNS LEGACY PARTNERS LLC SAN ANTONIO SPURS LLC DETROIT PISTONS BASKETBALL COMPANY MAPLE LEAF SPORTS AND ENTERTAINMENT PARTNERSHIP THE LOS ANGELES LAKERS INC TRAIL BLAZERS INC JAZZ BASKETBALL INVESTORS INC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0