2013-11-08T10:44:37-06:00 2012-12-31 521446779 JOHNSON LAMBERT LLP 700 SPRING FOREST RD STE 115 RALEIGH NC 27609 990 2012-01-01 530116720 NAVY MUTUAL AID ASSOCIATION NAVY 8006286011 29 CARPENTER RD - HENDERSON HALL ARLINGTON VA 22212 BRUCE B ENGELHARDT 7036141638 2013-11-07 1 JOHN HUSKINS P01081531 9197196400 2013-11-07 2012 2016-03-07 17:11:31Z BRUCE B ENGELHARDT 29 CARPENTER RD - HENDERSON HALL ARLINGTON VA 22212 352064247 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. 20 19 100 0 0 0 0 0 86545369 74869379 173423856 167397748 1038343 1026912 261007568 243294039 0 0 125751982 118961287 8565688 9986645 0 0 0 110347643 90178007 244665313 219125939 16342255 24168100 2681325206 2696874214 2481988060 2501698663 199337146 195175551 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 11 0 1 100 1 0 0 0 0 0 0 X 20 19 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 1.00 X 0 0 0 JAMES CARMAN 1.00 X 0 0 0 ISAIAH COLE 1.00 X 0 0 0 JAN GAUDIO 1.00 X 0 0 0 GARY LABUDA 1.00 X 0 0 0 JOHN LUECKE 1.00 X 0 0 0 KATHLEEN MARTIN 1.00 X 0 0 0 MICHELLE MCATEE 1.00 X 0 0 0 MICHAEL MCDANIEL 1.00 X 0 0 0 JOHN ROOTS 1.00 X 0 0 0 ERICA SCHWARTZ 1.00 X 0 0 0 PATRICK STILLMAN 1.00 X 0 0 0 STAN SZEMBORSKI 1.00 X 0 0 0 FRANK THORP IV 1.00 X 0 0 0 LEO WILLIAMS 1.00 X 0 0 0 MIKE WILLIAMS 1.00 X 0 0 0 MARK WILSON 1.00 X 0 0 0 JEFFREY OSTER 1.00 X X 0 0 0 RANDY WELCH 1.00 X X 0 0 0 BRUCE ENGELHARDT 40.00 X X 476117 0 73181 DAVID FRIDELL 40.00 X 212553 0 24971 THOMAS BENTON 40.00 X 193357 0 11967 LAUREN BLOOM 40.00 X 226232 0 49031 MICHELLE BRICKWEDDE 40.00 X 239777 0 31286 SANGEETA JACOBS 40.00 X 193495 0 32317 ALLEN MCCRAY 40.00 X 207473 0 41440 JOHN MCVEIGH 40.00 X 249096 0 30000 MICHELLE SMITH 40.00 X 159119 0 30788 DAVID BRAGG 40.00 X 147720 0 14801 MARK SUMMERS 40.00 X 153491 0 26888 ANTHONY GLASSFORD 40.00 X 146153 0 23200 ROBERT HOLT 40.00 X 145593 0 28381 DANIEL WALCZUK 40.00 X 155713 0 35915 2905889 0 454166 22 0 1 0 ACCENTURE 5 SPRING STREET MURRAY HILL NJ 07974 CONVERSION SUPPORT 9897983 THE LIFE & ANNUITY GROUP ONE CONSTITUTION AVE HARTFORD CT 06103 CONVERSION SUPPORT 1220766 SEGUE TECHNOLOGIES 2300 WILSON BLVD STE 420 ARLINGTON VA 22201 CONVERSION SUPPORT 1218113 WHITE & PARTNERS 13665 DULLES TECHNOLOGY DR STE 150 HERNDON VA 20171 MARKETING 1121296 MONSTER MEDIAWORKS 517 S LAKE DESTINY ROAD SUITE 100 ORLANDO FL 32810 SALES SERVICES 685715 20 NET EARNED PREMIUM 524113 52591150 52591150 SUPPLEMENTAL CONTRACTS 524298 19744684 19744684 ANNUITY CONSIDERATIONS 524298 2533545 2533545 74869379 166084874 166084874 110083082 108770208 1312874 1312874 1312874 AMORTIZATION OF IMR 524298 1026912 1026912 1026912 243294039 74869379 0 168424660 118961287 2482199 5040185 1196905 825343 442013 272542 205246 330240 1808629 2849741 1178247 4433159 167162 133921 2379308 CHANGE IN LIFE RESERVE 74649973 MEDICAL EXPENSES 837467 CHANGE IN WAR RESERVE 540388 CHANGE IN EMPLOYEE BENE 391595 389 219125939 95156959 85461729 157869678 161456725 7948261 3981535 3918303 3966726 1999003842 1975858338 396511740 441871001 28864684 28259695 2681325206 2696874214 29891331 35090961 1209370 1232622 14356 15297 2450873003 2465359783 2481988060 2501698663 X 199337146 195175551 199337146 195175551 2681325206 2696874214 X 24168100 6455725 -34785420 X 0 1 X 1 0 0 1 X 6186218 2465213 3721005 1762043 1516322 245721 3966726 MORTGAGE LOANS 52576987 C REAL ESTATE LIMITED PARTNERSHIP 8370334 F PRIVATE PLACEMENT BONDS 371016544 F REAL ESTATE CONSOLIDATED CORP. & PARTNERSHIP 8294814 F SECURITIES RECEIVABLE 1612322 C 441871001 RESERVE FOR LIFE CONTRACTS 2259741139 LIABILITY FOR DEPOSIT-TYPE CONTRACTS 164551403 ASSET VALUATION RESERVE 25288305 INTEREST MAINTENANCE RESERVE 6170104 EMPLOYEE BENEFITS 9608832 2465359783 240544314 0 240544314 330240 2419485 2749725 243294039 216376214 0 216376214 330240 2419485 2749725 219125939 PART IV, LINE 2B: NMAA HOLDS AMOUNTS IN ESCROW FOR MEDICAL AND DEPENDENT CARE. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSE ALLOCATION 2,419,485. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSE ALLOCATION 2,419,485. CENTRAL AMERICA & CARIBBEAN 0 0 INVESTMENT 4488852 EAST ASIA & PACIFIC 0 0 INVESTMENT 34433881 EUROPE 0 0 INVESTMENT 127227105 MIDDLE EAST & NORTH AFRICA 0 0 INVESTMENT 30312782 NORTH AMERICA 0 0 INVESTMENT 68211267 0 0 0 0 0 0 264673887 0 264673887 0 0 0 0 0 0 X 1 1 X X X X X 0 0 0 BRUCE ENGELHARDT 261617 0 175000 0 39500 0 47900 0 25281 0 549298 0 0 0 DAVID FRIDELL 180553 0 15000 0 17000 0 0 0 24971 0 237524 0 0 0 THOMAS BENTON 140857 0 30000 0 22500 0 0 0 11967 0 205324 0 0 0 LAUREN BLOOM 164732 0 45000 0 16500 0 31500 0 17531 0 275263 0 0 0 MICHELLE BRICKWEDDE 189777 0 50000 0 0 0 20500 0 10786 0 271063 0 0 0 SANGEETA JACOBS 135970 0 35000 0 22525 0 14800 0 17517 0 225812 0 0 0 ALLEN MCCRAY 139973 0 45000 0 22500 0 31800 0 9640 0 248913 0 0 0 JOHN MCVEIGH 149596 0 60000 0 39500 0 26700 0 3300 0 279096 0 0 0 MICHELLE SMITH 125735 0 25000 0 8384 0 14300 0 16488 0 189907 0 0 0 DAVID BRAGG 125920 0 0 0 21800 0 0 0 14801 0 162521 0 0 0 MARK SUMMERS 102089 0 28000 0 23402 0 16200 0 10688 0 180379 0 0 0 ANTHONY GLASSFORD 89808 0 28000 0 28345 0 19900 0 3300 0 169353 0 0 0 ROBERT HOLT 111480 0 20000 0 14113 0 7200 0 21181 0 173974 0 0 0 DANIEL WALCZUK 130214 0 11686 0 13813 0 20400 0 15515 0 191628 0 0 0 PART I, LINE 1A SOCIAL CLUB DUES WERE PROVIDED TO THE PRESIDENT OF NAVY MUTUAL AID ASSOCIATION. THE ENTIRE COST WAS TREATED AS TAXABLE INCOME TO THE RECIPIENT. FORM 990, PART VI, SECTION A, LINE 6 NMAA HAS A MEMBERSHIP OF APPROXIMATELY 100,000. 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 OUT 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 NOVEMBER 2012. 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: CHANGE IN ASSET VALUATION RESERVE -3,904,675. CHANGE IN NON-ADMITTED ASSETS -6,924,643. CHANGE IN ADDITIONAL MINIMUM LIABILITY FOR POSTRETIREMENT BENEFITS -2,079,550. CHANGE IN ACCOUNTING PRINCIPLE - RESERVE VALUATION BASIS -21,876,552.