2015-11-13T09:26:11-06:00 2014-12-31 521446779 JOHNSON LAMBERT LLP 700 SPRING FOREST ROAD STE 115 RALEIGH NC 27609 990 2014-01-01 530116720 NAVY MUTUAL AID ASSOCIATION NAVY 8006286011 29 CARPENTER RD - HENDERSON HALL ARLINGTON VA 22212 BRUCE B ENGELHARDT PRESIDENT 7036141638 2015-11-10 1 JOHN HUSKINS P01081531 9197196400 2015-11-12 2014 2016-02-25 16:41:14Z BRUCE B ENGELHARDT 29 CARPENTER RD - HENDERSON HALL ARLINGTON VA 22212 475570630 0 X WWW.NAVYMUTUAL.ORG X 1879 VA AND FORM 990, PART III, LINE 1:TO PROVIDE MEMBERS OF THE NAVY, MARINES, COAST GUARD, NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION, PUBLIC HEALTH SERVICE, AND HONORABLY DISCHARGED VETERANS (COLLECTIVELY THE "SEA SERVICES") LIFE INSURANCE AT AS NEAR THE ACTUAL NET COST AS POSSIBLE; ASSIST SEA SERVICE MEMBERS AND THEIR FAMILIES IN SECURING FEDERAL BENEFITS TO WHICH THEY MAY BE LEGALLY ENTITLED; AND EDUCATE SEA SERVICE MEMBERS AND THEIR FAMILIES ON MATTERS OF FINANCIAL SECURITY. 17 16 123 20 0 958633 0 0 74367834 77365810 177693637 171885759 1050806 1362303 253112277 250613872 0 0 126904792 129782126 11125569 12466256 0 0 0 84993329 98424860 223023690 240673242 30088587 9940630 2779441493 2848318132 2548838990 2596577484 230602503 251740648 SEE SCHEDULE O 0 0 THE NAVY MUTUAL AID ASSOCIATION ("NAVY MUTUAL") IS A MUTUAL AID ASSOCIATION THAT CONSERVATIVELY MANAGES ITS ASSETS TO PAY PROMISED LIFE INSURANCE BENEFITS TO ITS MEMBERS AND THEIR BENEFICIARIES. NAVY MUTUAL'S BENEFIT PLANS ARE DESIGNED AT AS NEAR ACTUAL NET COST AS POSSIBLE IN ORDER TO PROVIDE MEMBERS OF THE SEA SERVICES WITH LIFE INSURANCE COVERAGE THAT IS NOT LIMITED BY WAR, TERRORISM, OR AVIATION CLAUSES. NAVY MUTUAL'S INSURANCE IS NOT SUBJECT TO LIMITS ON COVERAGE BASED ON ACTIVE DUTY STATUS OR GEOGRAPHICAL LOCATION. AS A CONGRESSIONALLY-CHARTERED VETERANS SERVICE ORGANIZATION, NAVY MUTUAL PRESENTS EDUCATIONAL PROGRAMS TO MEMBERS OF THE SEA SERVICES AND THEIR FAMILIES IN ORDER TO ASSIST THEM IN UNDERSTANDING MILITARY SURVIVOR BENEFITS. AS A CONGRESSIONALLY-CHARTERED VETERANS SERVICE ORGANIZATION, NAVY MUTUAL PROVIDES BENEFICIARY ASSISTANCE AND COUNSELING TO ASSIST MEMBERS' SURVIVORS THROUGH THE DEATH PROCESS AND TO HELP SECURE THE FEDERAL BENEFITS TO WHICH THEY MAY BE ENTITLED. 0 0 0 0 0 0 0 1 0 1 1 0 0 1 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 13 0 1 123 1 1 1 0 0 0 0 0 X 17 16 0 0 0 0 1 1 0 1 1 0 0 0 1 0 1 1 1 1 1 0 X ADAM MULLINS 8006286011 29 CARPENTER ROAD-HENDERSON HALL ARLINGTON VA 22212 ERIC CANDELORI DIRECTOR 1.00 X 0 0 0 MICHELLE DUNNING DIRECTOR 1.00 X 0 0 0 CARL JENSEN DIRECTOR 1.00 X 0 0 0 JOHN LUECKE DIRECTOR 1.00 X 0 0 0 MICHAEL MCDANIEL DIRECTOR 1.00 X 0 0 0 ERICA SCHWARTZ DIRECTOR 1.00 X 0 0 0 STAN SZEMBORSKI DIRECTOR 1.00 X 0 0 0 FRANK THORP IV DIRECTOR 1.00 X 0 0 0 LEO WILLIAMS DIRECTOR 1.00 X 0 0 0 MIKE WILLIAMS DIRECTOR 1.00 X 0 0 0 GARY T BLORE DIRECTOR (FROM 4/2014) 1.00 X 0 0 0 CHRISTOPHER P DEAN DIRECTOR (FROM 4/2014) 1.00 X 0 0 0 ALFORD L MCMICHAEL DIRECTOR (FROM 4/2014) 1.00 X 0 0 0 CATE MUELLER DIRECTOR (FROM 4/2014) 1.00 X 0 0 0 JOHN ROOTS DIRECTOR (THRU 4/2014) 1.00 X 0 0 0 PATRICK STILLMAN DIRECTOR (THRU 4/2014) 1.00 X 0 0 0 KATHLEEN MARTIN CHAIR 1.00 X X 0 0 0 JEFFREY OSTER CHAIR (THRU 4/2014) 1.00 X X 0 0 0 MARK WILSON VICE CHAIR 1.00 X X 0 0 0 RANDY WELCH VICE CHAIR (THRU 4/2014) 1.00 X X 0 0 0 BRUCE ENGELHARDT PRESIDENT 40.00 X X 604091 0 68003 DAVID FRIDELL CHIEF FINANCIAL OFFICER 40.00 X 294473 0 55358 STEPHEN PIETROPAOLI CHIEF OPERATING OFFICER 40.00 X 228133 0 26197 LAUREN BLOOM GENERAL COUNSEL 40.00 X 258250 0 58687 MICHELLE BRICKWEDDE VP HR & ADMIN 40.00 X 254808 0 38375 JOHN MCVEIGH VP MEMBERSHIP 40.00 X 252791 0 40454 DAVID BRAGG VP IT 40.00 X 220689 0 32530 SANGEETA JACOB VP, BUSINESS PROCESS REENG 40.00 X 214729 0 53701 JAMIE MALTESE VICE PRESIDENT OF INVESTMENTS 40.00 X 162910 0 27968 ROBERT HOLT DIRECTOR OF SALES 40.00 X 188852 0 22346 PAUL HIGGINS DIRECTOR OF UNDERWRITING 40.00 X 180043 0 21332 RYAN HUTCHINSON SALES REPRESENTATIVE 40.00 X 163673 0 17824 DANIEL WALCZUK SALES REPRESENTATIVE 40.00 X 161010 0 30082 ADAM MULLINS DIRECTOR, FINANCE & ACCOUN 40.00 X 157023 0 38743 3341475 0 531600 31 0 1 0 ACCENTURE LLP 161 N CLARK ST CHICAGO IL 60601 CONVERSION SUPPORT 5901743 WHITE & PARTNERS 13665 DULLES TECHNOLOGY DR HERNDON VA 20171 MARKETING 1770766 EDGEWATER TECHNOLOGY 200 HARVARD MILL SQUARE WAKEFIELD MA 01880 ALIP CONSULTING 1716653 THE LIFE & ANNUITY GROUP INC ONE CONSTITUTION PLAZA HARTFORD CT 06103 ALIP CONSULTING 1025843 PORTAMEDIC ONE JERICHO PLAZA JERICHO NY 11753 MEDICAL EAMS 784366 24 NET EARNED PREMIUM 524113 63554483 63554483 ANNUITY CONSIDERATIONS 524298 12570669 12570669 SURVIVOR INCOME DEPOSITS 524298 1240658 1240658 77365810 170272445 170272445 226570072 224956758 1613314 1613314 1613314 AMORTIZATION OF IMR 524298 1205744 1205744 156559 156559 1362303 250613872 77365810 0 173248062 129782126 2892147 6384227 1403690 1122199 663993 282717 263732 446035 4003919 4235482 1194599 4488317 183178 173480 6070573 CHANGE IN LIFE RESERVE 75583444 MEDICAL EXPENSES 1026666 CHANGE IN EMPLOYEE BENE 457694 15024 240673242 108473174 72968475 161479677 163143824 1071735 542691 4393954 529044 1923012345 1913774464 552813633 667813245 29268710 30089080 2779441493 2848318132 34912949 27784297 1198679 1190428 14760 9888 2512712602 2567592871 2548838990 2596577484 X 230602503 251740648 230602503 251740648 2779441493 2848318132 X 9940630 4511025 6686490 X 0 1 X 1 0 0 1 X 1071735 542691 529044 529044 MORTGAGE LOANS 114325565 C REAL ESTATE LIMITED PARTNERSHIP 7446334 F PRIVATE PLACEMENT BONDS 538634115 F REAL ESTATE CONSOLIDATED CORP. & PARTNERSHIP 7407231 F 667813245 RESERVE FOR LIFE CONTRACTS 2399672990 LIABILITY FOR DEPOSIT-TYPE CONTRACTS 131534103 ASSET VALUATION RESERVE 17638780 INTEREST MAINTENANCE RESERVE 7169500 EMPLOYEE BENEFITS 11577498 2567592871 247811277 0 247811277 446035 2356560 2802595 250613872 237870647 0 237870647 446035 2356560 2802595 240673242 PART IV, LINE 2B: NMAA HOLDS AMOUNTS IN ESCROW FOR MEDICAL AND DEPENDENT CARE. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSE ALLOCATION 2,200,000. CHANGE IN WAR RESERVE 156,560. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSE ALLOCATION 2,200,000. CHANGE IN WAR RESERVE 156,560. CENTRAL AMERICA & CARIBBEAN 0 0 DEBT INVESTMENTS 17536530 EAST ASIA & PACIFIC 0 0 DEBT INVESTMENTS 55599820 EUROPE 0 0 DEBT INVESTMENTS 163411335 NORTH AMERICA 0 0 DEBT INVESTMENTS 83577246 0 0 0 0 0 0 320124931 0 320124931 0 0 0 0 0 0 X 1 1 X X X X X 0 0 0 BRUCE ENGELHARDT PRESIDENT 263591 0 300000 0 40500 0 41106 0 26897 0 672094 0 0 0 DAVID FRIDELL CHIEF FINANCIAL OFFICER 196973 0 80000 0 17500 0 24237 0 31121 0 349831 0 0 0 STEPHEN PIETROPAOLI CHIEF OPERATING OFFICER 145133 0 60000 0 23000 0 0 0 26197 0 254330 0 0 0 LAUREN BLOOM GENERAL COUNSEL 185236 0 40000 0 33014 0 36358 0 22329 0 316937 0 0 0 MICHELLE BRICKWEDDE VP HR & ADMIN 199808 0 55000 0 0 0 25428 0 12947 0 293183 0 0 0 JOHN MCVEIGH VP MEMBERSHIP 157291 0 55000 0 40500 0 35557 0 4897 0 293245 0 0 0 DAVID BRAGG VP IT 125689 0 60000 0 35000 0 19819 0 12711 0 253219 0 0 0 SANGEETA JACOB VP, BUSINESS PROCESS REENG 135857 0 55000 0 23872 0 24676 0 29025 0 268430 0 0 0 JAMIE MALTESE VICE PRESIDENT OF INVESTMENTS 128594 0 25000 0 9316 0 0 0 27968 0 190878 0 0 0 ROBERT HOLT DIRECTOR OF SALES 125338 0 35000 0 28514 0 10235 0 12111 0 211198 0 0 0 PAUL HIGGINS DIRECTOR OF UNDERWRITING 138027 0 35000 0 7016 0 17219 0 4113 0 201375 0 0 0 RYAN HUTCHINSON SALES REPRESENTATIVE 146350 0 9000 0 8323 0 5857 0 11967 0 181497 0 0 0 DANIEL WALCZUK SALES REPRESENTATIVE 145676 0 9000 0 6334 0 15004 0 15078 0 191092 0 0 0 ADAM MULLINS DIRECTOR, FINANCE & ACCOUN 102971 0 45000 0 9052 0 10948 0 27795 0 195766 0 0 0 PART I, LINE 1A SOCIAL CLUB DUES WERE PROVIDED TO THE PRESIDENT OF NAVY MUTUAL AID ASSOCIATION. THE ENTIRE COST OF $1,440 WAS TREATED AS TAXABLE INCOME TO THE RECIPIENT. FORM 990, PART VI, SECTION A, LINE 6 NMAA HAS A MEMBERSHIP OF APPROXIMATELY 105,000. ALL MEMBERS HAVE THE OPPORTUNITY EACH YEAR TO VOTE FOR BOARD MEMBERS, INCLUDING THE CHAIRMAN. ALL MEMBERS WILL SHARE IN THE PROFIT/NET ASSETS OF THE ORGANIZATION IN THE UNLIKELY EVENT OF A DISSOLUTION. FORM 990, PART VI, SECTION A, LINE 7A NAVY MUTUAL HOLDS ANNUAL ELECTIONS IN WHICH ITS MEMBERS VOTE TO FILL OPEN BOARD POSITIONS. BOARD TERMS ARE EACH THREE YEARS, AND BOARD MEMBERS CAN SERVE FOR A MAXIMUM OF THREE TERMS. FORM 990, PART VI, SECTION B, LINE 11 A DRAFT OF NAVY MUTUAL'S FORM 990 IS MADE AVAILABLE TO THE AUDIT COMMITTEE FOR REVIEW PRIOR TO FILING WITH THE IRS. QUESTIONS ARE ANSWERED ON A TIMELY BASIS. FORM 990, PART VI, SECTION B, LINE 12C MEMBERS OF NAVY MUTUAL'S BOARD OF DIRECTORS ANNUALLY DISCLOSE ANY CONFLICTS OF INTEREST IN WRITING. OUR LEGAL DEPARTMENT REVIEWS THE DISCLOSURE STATEMENTS TO ENSURE COMPLIANCE. WE POST OUR CODE OF ETHICS ON OUR INTRANET HOMEPAGE. BREACHING THE CODE OF ETHICS OR CONFLICT OF INTEREST POLICY IS GROUNDS FOR DISCIPLINE, UP TO AND INCLUDING TERMINATION. FORM 990, PART VI, SECTION B, LINE 15 FOUR MEMBERS OF NAVY MUTUAL'S BOARD CONSTITUTE OUR COMPENSATION COMMITTEE. THIS COMMITTEE MEETS 2 TIMES/YEAR TO DISCUSS AND ANALYZE THE PRESIDENT'S AND STAFFS' SALARY AND BONUS FOR THE FOLLOWING YEAR. THE COMMITTEE USES SEVERAL BENCHMARKS IN ITS DISCUSSION/ANALYSIS, INCLUDING AN INDEPENDENT NOT-FOR-PROFIT SALARY STUDY, AN INSURANCE COMPANY SALARY STUDY AND A LOCAL AREA SALARY STUDY. THE COMMITTEE ALSO UTILIZES AN OUTSIDE COMPENSATION CONSULTANT TO VERIFY COMPENSATION BY GRADE AND BY JOB DESCRIPTION FOR ALL EMPLOYEES, INCLUDING THE PRESIDENT. THIS COMPARABILITY STUDY IS CONDUCTED EVERY 3 YEARS FOR EMPLOYEES AND EVERY YEAR FOR THE PRESIDENT. THE RESULTS OF THE COMMITTEE'S ANALYSIS ARE PRESENTED TO THE FULL BOARD OF DIRECTORS FOR APPROVAL PRIOR TO IMPLEMENTATION. THE PRESIDENT'S COMPENSATION WAS LAST REVIEWED IN DECEMBER 2014. FORM 990, PART VI, SECTION C, LINE 19 ALL PUBLIC DOCUMENTS ARE AVAILABLE UPON REQUEST. A FINANCIAL STATEMENT SUMMARY IS INCLUDED IN NAVY MUTUAL'S ANNUAL REPORT, WHICH IS AVAILABLE ON-LINE. FORM 990, PART XI, LINE 9: CHANGE IN ASSET VALUATION RESERVE 6,408,227. CHANGE IN NON-ADMITTED ASSETS 712,475. CHANGE IN ADDITIONAL MINIMUM LIABILITY FOR POSTRETIREMENT BENEFITS -2,192,060. CHANGE IN ACCOUNTING PRINCIPLE - RESERVE VALUATION BASIS 1,757,848.