2014-11-14T17:48:54-06:00 2013-12-31 PRICEWATERHOUSECOOPERS LLP 600 13TH STREET NW SUITE 1000 WASHINGTON DC 200053005 990 2013-01-01 530209087 ARMED FORCES BENEFIT ASSOCIATION % DEBORAH FRENCH ARME 7035494455 909 N WASHINGTON STREET Suite ALEXANDRIA VA 223141556 DEBORAH R FRENCH CFO 7035494455 2014-11-14 true KATRINA D WALKER P00997158 7035494455 2013 2015-11-30 17:44:51Z RALPH EBERHART CEO 909 N WASHINGTON ST ALEXANDRIA VA 22314 239314950 false X WWW.AFBA.COM X 1947 VA SEE PART III, LINE 1 13 12 111 0 0 0 0 96293308 94796169 2364300 6764125 230922 989642 98888530 102549936 54089 82558 79862021 77759061 13630247 13923731 0 0 0 17555276 17060815 111101633 108826165 -12213103 -6276229 209740530 217069428 72585192 65089755 137155338 151979673 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 57416531 46042054 PROVIDED BETTER ALTERNATIVE TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 156,372 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $22.4 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 341 DEATH CLAIMS TOTALING $39,214,610 IN 2013. 20975307 20092732 PROVIDED GROUP DECREASING TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 99,916 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $1.9 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 2,274 DEATH CLAIMS TOTALING $14,322,600 IN 2013. 21098714 21107033 PROVIDED LEVEL TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 87,896 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $6.9 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 187 DEATH CLAIMS TOTALING $12,867,000 IN 2013. 9335613 7554350 108826165 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 44 0 true 111 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 PRES AND CHAIRMAN 40.0 X X 906740 0 74913 GEN JOHN N ABRAMS USA RET DIRECTOR 2.0 X 47000 0 0 ADM THOMAS COLLINS USCG RET DIRECTOR 2.0 X 41000 0 0 CHARLES K COLLUM JR DIRECTOR 2.0 X 42000 0 0 GEN LARRY R ELLIS USA RET DIRECTOR 2.0 X 33000 0 0 GEN HAL M HORNBURG USAF RET DIRECTOR 2.0 X 33000 0 0 GEN JAMES L JONES USMC RET DIRECTOR 2.0 X 33000 0 0 GEN J MICHAEL LOH USAF RET DIRECTOR 2.0 X 34000 0 0 ADM T JOSEPH LOPEZ USN RET DIRECTOR 2.0 X 41000 0 0 CMSAF GERALD R MURRAY USAF RET DIRECTOR 2.0 X 39000 0 0 GEN PETER PACE USMC RET DIRECTOR 2.0 X 29000 0 0 LT GEN ROGER SCHULTZ USA RET DIRECTOR 2.0 X 31500 0 0 VADM PATRICIA TRACEY USN RET DIRECTOR 2.0 X 35750 0 0 M DELAHAN CIO 40.0 X 250019 0 21539 M CENTANNI VP HUMAN RESOURCES 40.0 X 268025 0 50184 M COLE GENERAL COUNSEL 40.0 X 311864 0 25823 D FRENCH CFO 40.0 X 292880 0 50272 C GABRIEL SVP OPERATIONS 40.0 X 247726 0 48383 A GORDON MONROE TREASURER 40.0 X 182341 0 38437 J SANDEFUR SVP MARKETING 40.0 X 229173 0 24105 K TAYLOR CAE 40.0 X 214962 0 42324 M SMITH CORP SECRETARY 40.0 X 100950 0 45894 R COTTLE IT DIRECTOR 40.0 X 169138 0 37876 B ALT IT DIRECTOR 40.0 X 167283 0 32674 D ALMAREZ FSR VP 40.0 X 167006 0 34034 B ABEBE SR PROGRAMMER 40.0 X 156908 0 43510 C LIANG SR DEVELOPER 40.0 X 148661 0 49428 4252926 0 619396 34 false true false EXAMINATION MANAGEMENT SERVICES IN MED INFO SERVICES 638697 INTERNETWORK CONSULTING SERVICES IT DEV SERVICES 424423 PRICEWATERHOUSECOOPERS LLP AUDIT, TAX SERVICES 239932 TWINSTARS CORPORATION IT DEV SERVICES 161290 CLINICAL REFERENCE LAB INC MED LAB SERVICES 120897 5 0 BETTER ALTERNATIVE INSURANCE PROGRAM 524298 46042054 46042054 GROUP TERM INSURANCE PROGRAM 524298 20092732 20092732 LEVEL TERM INSURANCE PROGRAM 524298 21107033 21107033 GROUP SELECT TERM INSURANCE PROGRAM 524298 7386206 7386206 7-20 YEAR TERM INSURANCE PROGRAM 524298 82403 82403 85741 85741 94796169 1911258 1911258 0 0 771302 661069 110233 0 110233 110233 140956812 136103945 4852867 4852867 4852867 0 0 0 REFERRAL FEES 900099 879409 879409 879409 102549936 95785811 6764125 0 82558 0 77759061 3443930 0 6523692 2373862 901067 681180 0 157183 420794 0 0 525262 2170360 1150182 2445544 963829 0 1633599 215076 0 356192 193223 0 1464487 87766 FIELD SERVICE REP FEES 4843615 STATE AND LOCAL TAXES 44144 BANK SERVICE CHARGES 316896 OTHER EXPENSES 72663 108826165 0 0 0 X 3200 3200 988914 6031909 0 0 18398282 18115978 0 0 0 0 0 0 0 0 8369590 10237182 26326408 12705667 13541948 13620741 0 0 0 0 168438596 169060418 0 0 0 0 209740530 217069428 6930191 7772306 0 0 7584417 10079417 0 0 0 0 0 0 7408828 11719697 0 0 50661756 35518335 72585192 65089755 X 0 0 0 0 137155338 151979673 137155338 151979673 209740530 217069428 X -6276229 6618310 14482254 X false true X true false 8843211 8843211 2899196 289920 2609276 2951078 1990156 960922 11632923 10425591 1207332 13620741 INVEST IN 5STAR FINANCIAL, LLC 81710907 C FIXED MATURITY SECURITIES 24107369 F EQUITY SECURITIES 62963059 F PREFERRED STOCK 279083 F 169060418 0 PREMIUMS DUE UNDERWRITERS 27627257 PENSION 7853551 ANNUAL REFUNDS DUE MEMBERS 28204 CONTINGENT LIAB. HEALTH & FSA 9323 35518335 109168246 6618310 6618310 102549936 102549936 108850323 24158 24158 108826165 108826165 PART XII, LINE 2D - OTHER CHANGES IN NET ASSETS: INSURANCE CONTRIBUTIONS REFUNDED TO MEMBERS = $24,158 true COLLEGE SCHOLARSHIP FOR FAMILY OF DECEASED MEMBERS 2 7190 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 true true X X X X X false true false GEN RALPH EBERHART USAF RET PRES AND CHAIRMAN 610824 0 248563 0 47353 0 65653 0 9260 0 981653 0 0 0 M DELAHAN CIO 217500 0 25000 0 7519 0 12482 0 9057 0 271558 0 0 0 M CENTANNI VP HUMAN RESOURCES 239149 0 25000 0 3876 0 41178 0 9006 0 318209 0 0 0 M COLE GENERAL COUNSEL 270691 0 25000 0 16173 0 16563 0 9260 0 337687 0 0 0 D FRENCH CFO 250000 0 40000 0 2880 0 41104 0 9168 0 343152 0 0 0 C GABRIEL SVP OPERATIONS 217989 0 25000 0 4737 0 39339 0 9044 0 296109 0 0 0 A GORDON MONROE TREASURER 170880 0 9000 0 2461 0 29573 0 8864 0 220778 0 0 0 J SANDEFUR SVP MARKETING 197217 0 25000 0 6956 0 15138 0 8967 0 253278 0 0 0 K TAYLOR CAE 186570 0 25000 0 3392 0 33471 0 8853 0 257286 0 0 0 R COTTLE IT DIRECTOR 160992 0 4300 0 3846 0 29046 0 8830 0 207014 0 0 0 B ALT IT DIRECTOR 154164 0 11000 0 2119 0 23874 0 8800 0 199957 0 0 0 D ALMAREZ FSR VP 152613 0 12008 0 2385 0 25221 0 8813 0 201040 0 0 0 B ABEBE SR PROGRAMMER 141975 0 13000 0 1933 0 34754 0 8756 0 200418 0 0 0 C LIANG SR DEVELOPER 134614 0 12000 0 2047 0 40699 0 8729 0 198089 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 $8,989 IN 2013. SCH J PART I LINE 4B - SUPPL. NONQUALIFIED PLAN NET PERIODIC PENSION COST (TERMINATED 12/3/13): PRESIDENT - GEN. R. EBERHART, USAF (RET.) $49,769 CFO - D. FRENCH $10,765 CHRO - M. CENTANNI $7,111 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 20,382 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. 45 DEATH CLAIMS WERE PAID OUT IN 2013 TOTALLING TO $4,180,854. 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 GAIN - PENSION 14,506,412 ANNUAL REFUNDS DUE MEMBERS (24,158) ------------ $14,482,254 5STAR BANK 101 S SAHWATCH STE 100 COLORADO SPRINGS CO 80903 930762778 BANKING SVCS CO 5STAR FNCL LLC C CORP 693000 174422000 1.00000 true 5STAR LIFE INSURANCE COMPANY 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541829709 LIFE INSURANC VA 5STAR FNCL LLC C CORP -719800 328901000 1.00000 true 5STAR FINANCIAL LLC 909 N WASHINGTON STREET ALEXANDRIA VA 22314 521616382 FINANCIAL SER VA AFBA INV TRUST C CORP -25000 77275000 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 false false false false false false false false false true true true true true true true true true 5STAR BANK A 7031 CASH, ACCRUAL 5STAR FINANCIAL LLC K 1365161 CASH, ACCRUAL 5STAR BANK L 58277 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY L 1059069 CASH, ACCRUAL 5STAR BANK M 160126 CASH, ACCRUAL 5STAR FINANCIAL LLC M 85716 CASH 5STAR LIFE INSURANCE COMPANY M 643590 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY N 2343519 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY O 528266 CASH 5STAR BANK O 385132 CASH 5STAR LIFE INSURANCE COMPANY P 86367700 CASH, ACCRUAL 5STAR BANK Q 745600 CASH 5STAR LIFE INSURANCE COMPANY Q 1455467 CASH 5STAR LIFE INSURANCE COMPANY R 7718857 CASH 5STAR LIFE INSURANCE COMPANY S 8972578 CASH 5STAR FINANCIAL LLC S 500000 CASH