2014-05-14T09:11:21-07:00 2013-12-31 990 2013-01-01 390494090 NATIONAL MUTUAL BENEFIT NATI 6088331936 6522 Grand Teton Plaza Madison WI 537192912 Jenna Dunker Treasurer 6088331936 2014-05-14 2013 2015-11-30 17:44:51Z George F Yanna 6522 Grand Teton Plaza Madison WI 537192912 38634202 0 0532 X www.nmblife.org X 1916 WI Fraternal Benefit Society - As a fraternal benefit insurance society, our mission is to provide meaningful fraternal programs and benefits for our members as well as high quality insurance products and services. We strengthen our members fraternally through charitable, educational and volunteer programs that encourage family values, help improve communities, support patriotism for our country and help others in need. 5 4 114 22224 0 0 0 0 40939630 38634202 0 0 0 0 40939630 38634202 0 0 30199332 25398006 5073000 5307954 0 0 0 5760223 5113080 41032555 35819040 -92925 2815162 308378728 318746371 280373579 286444065 28005149 32302306 Fraternal Benefit Society - As a fraternal benefit insurance society, our mission is to provide meaningful fraternal programs and benefits for our members as well as high quality insurance products and services. We strengthen our members fraternally through charitable, educational and volunteer programs that encourage family values, help improve communities, support patriotism for our country and help others in need. 0 0 1022450 FRATERNAL ACTVITIES AND PROGRAMS - The following is a report of expenditures, activities and programs of National Mutual Benefit and its branches completed in 2013 in fulfillment of the society's fraternal character: 1. National Office Branch Support: Subsidies are sent to fraternal branches on a quarterly basis, based on the number of members in a geographic area. Payments range from $100 - $600 per quarter for 40 lodges. Incentive cash awards for volunteer activity are presented in addition to quarterly payments. Payments: $58,700 2. The Community Benefit program offers additional grants to branches for service projects organized by NMB members to help people with basic needs. NMB members are actively involved in organizing activities that impact: scholarship programs, blood donation drives, fire and police departments, city and county parks, crime prevention programs, food pantries, schools, homeless shelters, senior citizens, and impact children including fingerprinting/DNA programs, essay, photo and coloring contests, book and school supply drives, after-school activities, i.e. post-prom parties, service projects. The Society also makes annual donations to community organizations that assist youth and families. Local branch activities provide financial resources for local libraries, school literacy programs and safety programs. Events: 121, Volunteer Hours: 26,494, Payments: $55,817, Local Scholarships: $6,950 3. The Matching Funds program offers grants to branches when sponsoring a fundraiser benefit for a member or non-member in dire financial need due to illness, accident or disaster. Funds raised locally through branch fundraisers are then matched up to $2,500 per recipient by the Society. Each branch can apply for up to $7,500 per year. Hours and events for Matching Funds Benefit fundraisers are included here, as well as fundraisers held by branches that were not matched by the Home Office. Events: 39, Volunteer Hours: 21,597, Branches raised: $214,666, NMB matched: $74,707, Total Disbursed: $289,373 4. Family activities that create positive family life and strengthen families by bringing them together for free or subsidized events, i.e. movies, dinners, bowling, bike rides, sporting events, water park outings, etc. These activities include members and nonmembers alike. Events: 99, Volunteer Hours: 10,457, Payments: $20,372 5. Educational Leadership opportunities: Regional and local leadership training seminars are held for training member volunteers to organize successful outreach programs for fellow members and their communities. Events: 1 Combined for 5 states, Hours: 5,783, Payments: $115,762 6. Patriotic programs and activities are encouraged nationally and through the branches, such as organizing annual Flag Day observances and American flag donations to local schools, and support of programs to improve quality of life for active troops and veterans. Events: 38, Volunteer Hours: 7,820, Payments: $5,801 7. Fraternal support includes activity by members that maintains the branch as a unit; activities include events that assist in the development of the branch such as business meetings, committee work, record keeping, and the organization of activities for members and their families, along with printing and mailing of flyers and posters to membership for fundraisers, service projects, family and patriotic events. Events: 166, Hours: 2,449, Payments: $32,692 8. Fraternal Services support includes other activity and resources to implement and oversee its national fraternal mission. Payments: $321,681 9. Stony Hill School, Fredonia, Wisconsin. National Mutual Benefit has adopted this one-room schoolhouse recognized on the National Register of Historic Places as the birthplace of National Flag Day. The Society underwrites upkeep of Stony Hill School and its educational programs. Volunteer Hours: 108, Payments: $1,000, In-kind Services: Design/Printing 10. FRATERNAL BENEFIT PROGRAM: Members are eligible for these non-contractual fraternal benefits, at no additional cost, over and above their life insurance coverage. A. Disaster Benefit: A grant of up to $1,500 will be provided to members for out-of-pocket expenses, not reimbursed by a relief agency or insurance, incurred by loss from hurricane, tornado, earthquake, or loss of entire house to fire or wind. Payments: $500 B. Disease Benefit: A grant of up to $1,500 will be provided for out-of-pocket unreimbursed expenses incurred from a number of specific diseases. Payments: $1,039 C. Family Fraternal Benefit -- Newborn Death Benefit: a $2,500 death benefit is provided when a live-born infant dies less than 60 days after birth. Claims: 0, Payment: $0 -- Newborn Guaranteed Insurance: A guarantee that a live-born infant can be insured at standard rates for up to $5,000 of permanent life insurance regardless of the infant's health. This insurance takes effect on the infant's 60th day of life. No policies issued in 2013 D. Loss of Sight and Dismemberment: Up to $5,000 for loss of both hands, both feet, or loss of sight in both eyes; or any combination of one foot and hand. Up to $2,500 for loss of one hand, foot, or loss of sight in one eye. Payments: $0 E. Member Magazine: The Society publishes a magazine at least twice annually called The Benefit News and mails it to every member household. The magazine highlights fraternal activity, insurance products and services, the financial condition of the Society, and items of general interest to the membership. Payments: $70,795 F. Orphan Income Benefit: Offers an eligible orphan a monthly allowance for their care, maintenance and education, through age 18. Payments: $3,600 G. Orphan Scholarship Benefit: A fraternal grant is offered up to $3,000 per year for tuition or maintenance provided the orphaned child enrolls full time in an accredited technical or vocational school, college or university. Payments: $1,500 H. National Volunteer Scholarship Program: All National Mutual Benefit members, age 25 and under, are eligible to apply for one of 29 national scholarships. The scholarships are awarded to young adults pursuing undergraduate degrees, and involved in civic and volunteer action in their communities. Payments: $30,000 I. National Photo Contest: All National Mutual Benefit members, any age, are eligible to win cash prizes for winning photographs. Payments: $1,275 Representative Form of Government. The entire adult voting membership is eligible to vote by casting a ballot. Every four years ballots are sent to adult members, age 16 and over, to elect outside members of the national board of directors of the Society. No Election Held in 2013. Lodge System National Mutual Benefit has 40 local fraternal lodges (called Branches). They are organized in the states of Wisconsin, Illinois, Minnesota, North Dakota, and South Dakota. Each branch holds planning meetings, elects its own governing body (biennially), carries on its own affairs and business in an assigned geographic area and organizes benevolent, charitable, educational, community, family, and patriotic activities according to the Society Bylaws. 34796590 INSURANCE ACTIVITIES: The primary purpose of the insurance activities of National Mutual Benefit is to accomplish the exempt purpose of the fraternal benefit society rather than to produce income. Number of members: 38,136 0 0 0 35819040 0 0 0 0 0 0 0 1 0 1 0 1 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 1 0 0 1 0 0 1 114 1 0 0 0 0 0 0 X 5 4 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 1 1 0 IN X Steven G Reindl 6088331936 6522 Grand Teton Plaza Madison WI 537192912 Thomas R Johnson Outside Director 2 0 X 44550 0 34684 Nancy Nelson Heykes Outside Director 2 0 X 39825 0 34684 John E Rashke Outside Director 2 0 X 39825 0 15633 Maureen A O'Hern Hahn Outside Director 2 0 X 44550 0 41882 George F Yanna President 40 0 X X 212966 0 121462 Steven G Reindl Secretary/Vice President - Operations 40 0 X 133511 0 128562 Jenna M Dunker Treasurer 40 0.5 X 83571 0 22419 Anne D Rogers Vice President - Fraternal 40 0 X 79217 0 115302 Paul M Stadler Vice President - Marketing 40 0.25 X 170944 0 49463 Donald Lohrentz Former Outside Director 0 0 X 27230 0 0 Darold A Treffert MD Former Outside Director 0 0 X 21384 0 0 897573 0 564091 3 1 1 0 Prime Advisors Inc 22635 NE Marketplace Dr Ste 160 Redmond WA 98053 Bond Investment Managers 391518 Godfrey & Kahn SC 780 North Water St Milwaukee WI 532023590 Law Firm 156475 Griffith Ballard & Company 100 1st Ave NE Ste 117 Cedar Rapids IA 52401 Actuarial Consultants 149498 3 0 Insurance Premiums 524113 19544162 19544162 0 0 Investment Income 524113 16479240 16479240 0 0 Realized Capital Gains 524113 1560127 1560127 0 0 Gains-Post-Retirement Benefit Reserve 524113 443855 443855 0 0 Commission Reinsurance Ceded 524113 292420 292420 0 0 314398 314398 0 0 38634202 0 0 0 0 0 38634202 38634202 0 0 25398006 1420010 2400225 233964 918901 334854 308162 210297 466188 131713 45794 533485 351527 350004 119373 18172 153385 74003 Commission/Field Expense 1203037 Deferred Compensation Benefit Reserve 418368 Fraternal Expenses 372292 Change in AVR 270445 86835 35819040 0 0 0 -36561 -326338 534 3656881 1484074 936581 2172807 790663 302221687 312203734 4465824 4696168 308378728 318746371 806272 885159 15331 15640 64777 57296 279487199 285485970 280373579 286444065 X 0 0 0 0 28005149 32302306 28005149 32302306 308378728 318746371 2815162 1481995 0 0 0 0 X 0 1 X 1 0 0 1 X 306925 476000 782925 1015655 1858301 1484074 1389882 0 0 0 0 0 0 0 0 0 0 0 0 2172807 Bonds and Surplus Debentures 258439372 C Mortgage Loans 32652328 C Common Stock 10931292 F Short-term Investments 5839358 F Contract Loans 4341384 C 312203734 Reserves - Life, Annuity, A&H 259884813 Liability for Deposit-Type Contracts 12238594 Asset Valuation Reserve 4015980 Post-Retirement Benefit Reserve 4008240 Deferred Compensation Reserve 2614296 Contract Claims - Life, A&H 1377040 Interest Maintenance Reserve 682165 Refund Payable - Not Yet Apportioned 410147 Remittances and Items Not Allocated 136441 Escheat Items 59594 Fieldworkers' Credit Balances 58660 285485970 38778691 1481995 0 0 0 1481995 37296696 1337506 0 1337506 38634202 34481534 0 0 0 0 0 34481534 1337506 0 1337506 35819040 Schedule D, Part IV, Line 2b In 2013, National Mutual Benefit held money in escrow on behalf of three of the society's mortgagors for the payment of their property tax and property insurance. In addition, National Mutual Benefit held security deposits paid to the society by the lessees of property held for the production of income. Europe (including Iceland and Greenland) Investments 19332743 East Asia and the Pacific Investments 9706332 North America (including Canada and Mexico, but not the United States) Investments 4255140 Central America and the Caribbean Investments 495605 0 0 33789820 0 0 0 0 0 0 X X 0 1 X X X 0 0 0 George F Yanna President 194696 0 0 0 18270 0 110893 0 12664 0 336523 0 0 0 Steven G Reindl Secretary/Vice President - Operations 120747 0 0 0 12765 0 96882 0 33044 0 263438 0 0 0 Paul M Stadler Vice President - Marketing 155214 0 10350 0 5380 0 32454 0 18701 0 222099 0 0 0 Anne D Rogers Vice President - Fraternal 75550 0 0 0 3667 0 85128 0 31050 0 195395 0 0 0 Donald Lohrentz Former Outside Director 0 0 0 0 27230 0 0 0 0 0 27230 0 0 0 Darold A Treffert MD Former Outside Director 0 0 0 0 21384 0 0 0 0 0 21384 0 0 0 Schedule J, Part I, Line 1a Travel for Companions - Companion travel is permitted for those activities where the presence of the companion enhances the fellowship aspect of the fraternal system. Tax Indemnification and Gross-up Payments - Gross-up payments for taxable use of company cars were completed for four officers in 2013. Gross-up payments for education bonuses for classes taken through Life Office Management Association were completed for one officer in 2013. Both types of gross-up payments were treated as taxable compensation. Schedule J, Part I, Line 1b All expenses are reviewed and limited to those necessary for the travel to and from the event and reasonable hotel and meal expenses while at the event. Schedule J, Part I, Line 3 A board appointed Compensation Committee annually reviews the compensation of the CEO along with the other officers of the organization. Outside salary surveys of similar fraternal benefit societies, data concerning similar positions in the area, the performance and financial status of the society, general cost of living/inflation increases, and general economic conditions are taken into consideration. The recommendations of the Compensation Committee are then considered by the full board of directors and are either approved or modified. Form 990, Part VI, Section A, Line 6 National Mutual Benefit is a mutual fraternal benefit insurance society and is therefore owned by its policyholder members. Form 990, Part VI, Section A, Line 7a National Mutual Benefit's members elect the four independent directors every four years. Form 990, Part VI, Section A, Line 9 Nancy Nelson Heykes W175 Lake Sandia Drive, Krakow, WI 54137, Thomas R Johnson 2800 Marledge St, Madison, WI 53711, John E Rashke 7670 Moraine Ridge Road, Verona, WI 53593, Maureen O'Hern Hahn 4 Meadowbrook Lane, Appleton, WI 54914, Darold A Treffert MD W4065 Maplewood Lane, Fond du Lac, WI 54937, Donald W Lohrentz 10554 Royal Porthcawl Dr, Naperville, IL 60564 Form 990, Part VI, Section B, Line 11b The accounting department completed the Form 990 and gave a copy to the Treasurer to review. Following the Treasurer review, the President and Secretary/Vice President of Operations were given copies for review. The completed 990 was then emailed to the four independent directors for their review. Form 990, Part VI, Section B, Line 12c Conflict of interest questionnaires are required from all officers, directors and key employees annually stating any conflict they may have. If there are any stated, the governing body determines any needed action. Form 990, Part VI, Section B, Line 15 A board appointed Compensation Committee annually reviews the compensation of the CEO along with the other officers of the organization. Outside salary surveys of similar fraternal benefit societies, data concerning similar positions in the area, the performance and financial status of the society general cost of living/inflation increases, and general economic conditions are taken into consideration. The recommendations of the compensation committee are then considered by the full board of directors and are either approved or modified. Information regarding the positions to which this process applies and the latest review periods follow: President/CEO 6/2013, Secretary/Vice President of Operations - 6/2013, Treasurer - 6/2013, Vice President of Fraternal - 6/2013, Vice President of Marketing - 6/2013, President of Marketing - 6/2013. Form 990, Part VI, Section C, Line 19 The governing documents are filed with our state of domicile (Wisconsin) when any changes are made, are published periodically in our official publication "The Benefit News" and are also available upon request. The financial statements are published annually in the "The Benefit News" and are filed quarterly with the NAIC and with the states that require them. The conflict of interest policy is available upon request. NMB Services Inc 6522 Grand Teton Plaza Madison WI 53719 391826998 Specialty Membership Services WI National Mutual Benefit C 56655 17012 1 1 National Mutual Benefit Corporate Agency Inc 6522 Grand Teton Plaza Madison WI 53719 391503828 Insurance Broker WI National Mutual Benefit C 79124 21799 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 NMB Services Inc o 56742 Estimated hours worked