2016-07-18T14:50:32-05:00 2015-12-31 EISNERAMPER LLP 111 WOOD AVE SO STE 600 ISELIN NJ 088302700 990 2015-01-01 453635388 GUARANTY ASSOCIATION BENEFITS COMPANY % LYNDA G LOOMIS GUAR 2068024575 1050 K STREET NW Suite 400 WASHINGTON DC 20001 LYNDA G LOOMIS OPERATIONS OFFICER 2068024575 2016-06-30 true RICHARD A SACKIN P00184276 7322437000 2015 2016-12-15 16:53:06Z LYNDA G LOOMIS 1050 K STREET NW400 WASHINGTON DC 20001 1758579029 false X WWW.GABENEFITSCO.COM X 2011 DC SEE SCHEDULE O 7 7 0 0 0 0 0 0 0 131635489 96682788 0 0 131635489 96682788 0 0 0 0 332268 463111 0 0 0 77060247 78522311 77392515 78985422 54242974 17697366 1565793005 1534328612 1428634749 1379695866 137158256 154632746 X THE ORGANIZATION OPERATES TO PROTECT, IN ACCORDANCE WITH A COURT-APPROVED LIQUIDATION PLAN, INDIVIDUALS RELYING UPON ANNUITIES ISSUED BY INSOLVENT EXECUTIVE LIFE INSURANCE COMPANY OF NEW YORK, IN FURTHERANCE OF THE COMMON INTERESTS OF THE STATE GUARANTY ASSOCIATIONS AND THEIR MEMBERS. false false 123763235 The Organization operates to protect, in accordance with a court-approved liquidation plan, individuals relying upon annuities issued by insolvent Executive Life Insurance Company of New York ("ELNY"), in furtherance of the common interests of the state guaranty associations and their members. The Organization's obligations commenced on August 8, 2013, when the order of liquidation against ELNY became effective. The organization met its obligations in 2015 by providing annuity benefit payments in the amounts set forth above. 123763235 false false false false false false false false false true false false false true true true false false false false false false false false false false false false true false false false true false true false false false false false false false false true 8 0 true 0 false false false false false false X 7 7 false false false false true true true true true false false true true true true false false true true false X LYNDA G LOOMIS 2068024575 PO BOX 582 COLUMBUS OH 43216 DEBORAH A BELLO DIRECTOR-MEMBER ELECTED 1.0 0.0 X 0 0 0 THOMAS F ENGLISH DIRECTOR-MEMBER ELECted 1.0 0.0 X 0 0 0 MERLE T PEDERSON DIRECTOR-MEMBER ELECTED 1.0 0.0 X 0 0 0 PAMELA E OLSEN director- ex officio 5.0 0.0 X 0 0 0 JOHN J FALKENBACH DIRECTOR,chairman, secretary 12.0 0.0 X X 0 0 0 PETER G GALLANIS DIRECTOR-ex officio, president 10.0 0.0 X X 85591 0 1690 NANCY S DAVENPORT Director - Member Elected 1.0 0.0 X 0 0 0 FRED A BUCK VICE PRESIDENT OPERATIONS 15.0 0.0 X 278045 0 0 Michael Marchman TREASURER 5.0 0.0 X 0 0 0 LYNDA G LOOMIS VICE PRESIDENT OPERATIONS 18.0 0.0 X 97785 0 0 461421 0 1690 1 false true true faegre baker daniels LLP 300 N Meridian Street Suite 2700 INDIANAPOLIS IN 46204 legal services 898415 nisa investment advisors llc 150 n meramec avenue SUITE 640 ST LOUIS MO 63105 investment advisors 1036557 Towers Watson Pennsylvania Inc 71 SOUTH WACKER DRIVE CHICAGO IL 60606 Actuarial Services 954517 Legal General Invest Mgmt Americ PO BOX 7247-7057 PHIILADELPHIA PA 19170 Investment Mgmt. 1747077 COMPUTER SCIENCE CORP PO BOX 8500-52283 PHILADELPHIA PA 19178 TECHNOLOGY 305339 8 X 0 0 68604077 68604077 0 0 0 0 0 1689974952 1661896241 28078711 28078711 28078711 0 0 0 0 96682788 96682788 X 0 0 0 0 463111 0 0 0 0 0 320602 666521 287178 0 0 2946777 923502 0 66592 0 0 0 2306 0 0 0 0 3252 156272 CHANGES IN ANNUITY RESERVE -50858165 DATA PROCESSING 69964 INTEREST & PENALTIES 7831 LICENSES AND PERMITS 165958 123763721 78985422 X 3999475 12784035 0 0 0 0 0 0 0 0 0 0 0 0 0 0 112271 132000 13023 7407 9353 5616 1541486910 1502132369 0 0 0 0 0 0 20184996 19274592 1565793005 1534328612 5250897 7170179 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1423383852 1372525687 1428634749 1379695866 X 0 0 97060093 97060093 40098163 57572653 137158256 154632746 1565793005 1534328612 X 17697366 -222876 X X false true X true false 13023 7407 5616 5616 0 AGGREGATE LIFE RESERVE 1372525687 1372525687 X 93736011 93736011 2946777 2946777 96682788 76038645 76038645 2946777 2946777 78985422 SCHEDULE D, PART XI, LINE 4b INVESTMENT MANAGEMENT FEES: $2,730,519 CUSTODY FEES-US BANK: $ 216,258 SCHEDULE D, PART XII, LINE 4B INVESTMENT MANAGEMENT FEES: $2,730,519 CUSTODY FEES-US BANK: $ 216,258 schedule d, part x, line 2 GABC HAS BEEN CLASSIFIED BY THE INTERNAL REVENUE SERVICE (THE "IRS") AS A NON-PROFIT ORGANIZATION DESCRIBED UNDER SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE, AND THEREFORE IS EXEMPT FROM FEDERAL INCOME TAXES. ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTERPRISE'S FINANCIAL STATEMENTS. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY GABC, AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2015 AND 2014, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE SPECIAL-PURPOSE FINANCIAL STATEMENTS. GABC RECOGNIZES ACCRUED INTEREST AND PENALTIES ASSOCIATED WITH UNCERTAIN TAX POSITIONS, IF ANY AS AN OPERATING EXPENSE. THERE WAS NO INCOME TAX-RELATED INTEREST OR PENALTIES RECORDED FOR THE PERIODS ENDED DECEMBER 31, 2015 AND 2014. false false false PETER G GALLANIS DIRECTOR-ex officio, president 85591 0 0 0 0 0 0 0 1690 0 87281 0 0 0 FRED A BUCK VICE PRESIDENT OPERATIONS 278045 0 0 0 0 0 0 0 0 0 278045 0 0 0 Part II, Line 1 The Organization's president, which is its top management official, is not compensated directly by the Organization. The Organization's president is also the president of the National Organization of Life and Health Insurance Guaranty Associations ("NOLHGA") which is an unrelated entity. The Organization has entered into an agreement with NOLHGA for various services to be provided to the Organization by NOLHGA (e.g., maintaining a computer server and website for the Organization and oversight and tracking of the Organization's administrative costs and expenses, etc.). The services provided to the Organzization under the agreement also include advice and leadership by NOLHGA's president, who also serves as president of the Organization. An appropriate portion of the time spent on the Organization's behalf by NOLHGA's president is charged to the Organization. Thus, the organization's president receives no additional compensation for serving as the organization's president, but the organization reimburses NOLHGA for the portion of time NOLHGA's president devotes to the organization. The terms of the agreement were negotiated on behalf of the Organization by its outside counsel, with oversight by the Chairman of the Board. Once final, the agreement was presented to and approved by the Organization's Board. FRED BUCK VICE PRESIDENT OPERATIONS 278045 SEE SUPPLEMENTAL INFOMRATION false PETER G GALLANIS DIRECTOR-EX-OFFICIO, PRES 87281 SEE SUPPLEMENTAL INFORMATION false LYNDA G LOOMIS VICE PRESIDENT OPERATIONS 97785 SEE SUPPLEMENTAL INFORMATION false SCHEDULE L, PART IV, LINE 1D The Vice President Operations is a non-employee officer that is compensated under a service contract. The Organization's President and Chairman oversaw the negotiation of the service contract on behalf of the Organization. Both the President and the Chairman are familiar with the services the Vice President of operations is obligated to provide under the service contract and the cost of similar services provided to state life and health insurance guaranty associations, which are similar to the Organization. The Vice President resigned his position effective October 31, 2015. The service contract with Fred BucK was amended to provide that Fred Buck would provide transition services through April 30, 2016. SCHEDULE L, PART IV, LINE 2D The Organization's president, which is its top management official, is not compensated directly by the Organization. The Organization's president is also the president of the National Organization of Life and Health Insurance Guaranty Associations ("NOLHGA"). The Organization has entered into an agreement with NOLHGA for various services to be provided to the Organization by NOLHGA (e.g., maintaining a computer server and website for the Organization and oversight and tracking of the Organization's administrative costs and expenses, etc.). The services provided to the Organzization under the agreement also include advice and leadership by NOLHGA's president, who also serves as president of the Organization. An appropriate portion of the time spent on the Organization's behalf by NOLHGA's president is charged to the Organization. Thus, the organization's president receives no additional compensation for serving as the organization's president, but the organization reimburses NOLHGA for the portion of time NOLHGA's president devotes to the organization. The terms of the agreement were negotiated on behalf of the Organization by its outside counsel, with oversight by the Chairman of the Board. Once final, the agreement was presented to and approved by the Organization's Board. SCHEDULE L, PART IV, LINE 2D The organization operates to protect, in accordance with a court-approved liquidation plan, individuals relying upon annuities issued by insolvent Executive Life Insurance Company of New York ("ELNY"), in furtherance of the common interests of the state guaranty associations and their members. In that capacity, the organization is a party to various agreements, including an "Agreement of Restructuring" to which NOLHGA is a party, and Peter Gallanis (the Organization's president and a director) is the president of NOLHGA. The Organization is also a party to two other related agreements with 39 life insurance companies, including MetLife (director NANCY DAVENPORT IS an officer), New York Life (director Tom English is an officer), Principal Financial (director Merle Pederson an officer) and Prudential (director Deborah Bello IS AN officer). All of the transactions related to the ELNY liquidation, including all of the foregoing, closed as of August 8, 2013, when the liquidation order against ELNY became effective and the Organization commenced its operations. SCHEDULE L, PART IV, LINE 3D The Vice President Operations is a non-employee officer that is compensated under a service contract. The Organization's President and Chairman oversaw the negotiation of the service contract on behalf of the Organization. Both the President and the Chairman are familiar with the services the Vice President of operations is obligated to provide under the service contract and the cost of similar services provided to state life and health insurance guaranty associations, which are similar to the Organization. Lynda Loomis became Vice President Operations effective November 1, 2015. FORM 990, PART I, LINE 1 The organization operates to protect, in accordance with a court-approved liquidation plan, individuals relying upon annuities issued by insolvent Executive Life Insurance Company of New York, in furtherance of the common interests of the state guaranty associations and their members. FORM 990, PART VI, SECTION A, LINE 6 The Organization is a non-stock, non-profit membership organization organized under the District of Columbia Nonprofit Corporation Act of 2010. Membership is restricted to the state life and health insurance guaranty associations that participated in the court-approved liquidation plan for Executive Life Insurance Company of New York. FORM 990, PART VI, SECTION A, LINE 7A The Organization's Members elect four (4) of the Organization's seven (7) Board members, but each person eligible for election to the Board by the Members must satisfy the requirements in the Organization's Bylaws. FORM 990, PART VI, SECTION A, LINE 7B The Organization's members retain the rights to approve all amendments to the Organization's articles of incorporation and to amend the Organizations bylaws. In addition, the Organization's members retain the rights provided under the District of Columbia Nonprofit Corporation Act of 2010 to approve certain extraordinary actions by the Organization (e.g. certain disposition of assets, dissolution or merger of the organization). FORM 990, PART VI, SECTION B, LINE 11B The Organization's management worked with the Organization's independent audit firm to complete the 990. The Organization's chairman caused the 990 to be circulated electronically to all board members after it was completed for their review and comments. The transmittal asked each Board member to notify the Chairman of any questions, comments or observations about the 990 within five (5) days, and advised the Board members that the Chairman would call a meeting of the Board if two or more Board members so requested. Any comments received from any Board member were considered prior to finalizing the 990. Any adjustments determined by the Chairman and the Organization's management to be warranted were made to the Form 990 before it was finalized and filed with the Internal Revenue Service. FORM 990, PART VI, SECTION B, LINE 12C Each year the Organization's outside counsel prepares a "Certificate of Compliance and Conflict of Interest Statement" that is presented to each director, officer and key personnel for execution. Outside counsel explains the reason for the statement. Outside counsel reviews the statements and evaluates any items that may be listed by the individuals to determine if a conflict might exist and would advise disinterested officers of the Organization if any actions would be advisable. Each "Certificate of Compliance and Conflict of Interest Statement" are made part of the Organization's official minute book. FORM 990, PART VI, SECTION B, LINE 15A The Organization's president, which is its top management official, is not compensated directly by the Organization. The Organization's president is also the president of the National Organization of Life and Health Insurance Guaranty Associations ("NOLHGA"). The Organization has entered into an agreement with NOLHGA for various services to be provided to the Organization by NOLHGA (e.g., maintaining a computer server and website for the Organization and oversight and tracking of the Organization's administrative costs and expenses, etc.). The services provided to the Organzization under the agreement also include advice and leadership by NOLHGA's president, who also serves as president of the Organization. An appropriate portion of the time spent on the Organization's behalf by NOLHGA's president is charged to the Organization. Thus, the organization's president receives no additional compensation for serving as the organization's president, but the organization reimburses NOLHGA for the portion of time NOLHGA's president devotes to the organization. The terms of the agreement were negotiated on behalf of the Organization by its outside counsel, with oversight by the Chairman of the Board. Once final, the agreement was presented to and approved by the Organization's Board. FORM 990, PART VI, SECTION B, LINE 15B The Organization's Vice President Operations is a non-employee officer that is compensated under a service contract. The Organization's President and Chairman oversaw the negotiation of the Service Contract on behalf of the Organization. Both the President and the Chairman are familiar with the services the Vice President of Operations is obligated to provide under the Service Contract and the cost of similar services provided to state life and health insurance guaranty associations. FORM 990, PART VI, SECTION C, LINE 19 When appropriate, the Organization's relevant documents will be delivered in an agreed upon manner upon request. FORM 990, PART XII, LINE 1 THE ACCOUNTING METHOD USED TO PREPARE FORM 990 IS THE BASIS USED TO COMPLY WITH REPORTING PROVISIONS SPECIFIED BY THE DISTRICT OF COLUMBIA DEPARTMENT OF INSURANCE, SECURITIES AND BANKING AND THE MODIFIED D.C. REPORTING BLANK. THIS BASIS ALSO DIFFERS FROM STATUTORY ACCOUNTING PRACTICES PER THE ACCOUNTING PRACTICES AND PROCEDURES MANUAL OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS. FORM 990 PART IX LINE 24 - OTHER EXPENSES DESCRIPTION:ANNUITY BENEFIT PAYMENTS TOTAL EXPENSES:XXX-XX-XXXX FORM 990 PART IX LINE 24 - OTHER EXPENSES DESCRIPTION:LOSS ON DISPOSITION OF ASSET TOTAL EXPENSES:486