2012-11-13T19:05:16-06:00 2011-12-31 PricewaterhouseCoopers LLP 1301 K STREET NW SUITE 800W WASHINGTON DC 200053333 990 2011-01-01 530209087 ARMED FORCES BENEFIT ASSOCIATION % DEBORAH FRENCH ARME 7035494455 909 N WASHINGTON STREET ALEXANDRIA VA 223141556 DEBORAH FRENCH 2012-11-12 true 2024141000 2011 2016-02-24 21:20:13Z RALPH EBERHART CEO 909 N WASHINGTON ST ALEXANDRIA VA 22314 99394016 false X WWW.AFBA.COM X 1947 VA PROMOTE THE WELFARE OF MEMBERS OF THE U.S. UNIFORMED SERVICES, FEDERAL GOVERNMENT EMPLOYEES, FIRST RESPONDER EMERGENCY PERSONNEL AND THEIR FAMILIES AND SERVE THEIR BEST INTERESTS IN PEACE AND WAR. 13 12 117 0 0 0 0 97383453 97146936 2997717 2045340 1676804 201740 102057974 99394016 45782 202938 74879437 77214464 13459162 13811483 0 0 0 16496839 16609864 104881220 107838749 -2823246 -8444733 239662859 247668330 49817650 66442644 189845209 181225686 X PROMOTE THE WELFARE OF MEMBERS OF THE U.S. UNIFORMED SERVICES, FEDERAL GOVERNMENT EMPLOYEES, FIRST RESPONDER EMERGENCY PERSONNEL AND THEIR FAMILIES AND SERVE THEIR BEST INTERESTS IN PEACE AND WAR. false false 53815570 0 46106485 PROVIDED BETTER ALTERNATIVE TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 157,199 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $23.1 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 323 DEATH CLAIMS TOTALING $35,804,000 IN 2011. 22920472 0 22479101 PROVIDED GROUP DECREASING TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 110,797 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $2.1 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 2,392 DEATH CLAIMS TOTALING $15,714,900 IN 2011. 22551605 0 21632128 PROVIDED LEVEL TERM LIFE INSURANCE COVERAGE TO A POPULATION OF 86,880 MEMBERS AND SPOUSES. INSURANCE IN FORCE OF $7.2 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 209 DEATH CLAIMS TOTALING $14,487,000 IN 2011. 8551102 0 6929222 107838749 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 51 0 true 117 true false false false false false false X 13 12 false false false false true true false true true false false true false true false true false false X DEBORAH FRENCH 8007762322 909 N WASHINGTON ST ALEXANDRIA VA 22314 GEN RALPH EBERHART USAF RET 40.0 X X 970064 0 108487 GEN JOHN N ABRAMS USA RET 2.0 X 54750 0 0 ADM THOMAS COLLINS USCG RET 2.0 X 48500 0 0 CHARLES K COLLUM JR 2.0 X 49500 0 0 GEN LARRY R ELLIS USA RET 2.0 X 39250 0 0 GEN HAL M HORNBURG USAF RET 2.0 X 32000 0 0 GEN JAMES L JONES USMC RET 2.0 X 9750 0 0 GEN J MICHAEL LOH USAF RET 2.0 X 40750 0 0 ADM T JOSEPH LOPEZ USN RET 2.0 X 48500 0 0 CMSAF GERALD R MURRAY USAF RET 2.0 X 39250 0 0 GEN PETER PACE USMC RET 2.0 X 39250 0 0 LT GEN ROGER SCHULTZ USA RET 2.0 X 22750 0 0 VADM PATRICIA TRACEY USN RET 2.0 X 44000 0 0 R BELL 40.0 X 303619 0 49210 M CENTANNI 40.0 X 266488 0 45969 M COLE 40.0 X 312945 0 49838 D FRENCH 40.0 X 280709 0 46339 C GABRIEL 40.0 X 244405 0 42671 A GORDON MONROE 40.0 X 174032 0 34935 J SANDEFUR 40.0 X 226986 0 39310 K TAYLOR 40.0 X 207343 0 38363 M SMITH 40.0 X 96466 0 22313 M DELLAHAN 40.0 X 180614 0 34004 R COTTLE 40.0 X 173775 0 33864 B ALT 40.0 X 160391 0 31373 K SMITH 40.0 X 162963 0 28754 E SMITH 40.0 X 160672 0 32326 4389722 0 637756 30 false true false EXAMINATION MANAGEMENT SERVICES IN MED INFO SERVICES 890370 INTERNETWORK CONSULTING SERVICES IT DEV SERVICES 447230 PRICEWATERHOUSECOOPERS LLP AUDIT, TAX SERVICES 434941 CLINICAL RESEARCH LAB INC MED LAB SERVICES 210078 TWINSTARS CORPORATION IT DEV SERVICES 208647 7 0 BETTER ALTERNATIVE INSURANCE PROGRAM 524298 46106485 46106485 GROUP TERM INSURANCE PROGRAM 524298 22479101 22479101 LEVEL TERM INSURANCE PROGRAM 524298 21632128 21632128 GROUP SELECT TERM INSURANCE PROGRAM 524298 6681485 6681485 7-20 YEAR TERM INSURANCE PROGRAM 524298 151795 151795 95942 95942 97146936 2045340 2045340 0 0 41045 41045 41045 41045 0 0 0 0 REFERRAL FEES 900099 160695 160695 160695 99394016 97348676 2045340 0 202938 0 77214464 3551307 0 6895742 1875146 832740 656548 0 112147 1559125 0 0 0 1500096 1012090 1844648 2168082 0 1775554 218414 0 248337 19204 0 880317 92333 FIELD SERVICE REP FEES 4805353 STATE AND LOCAL TAXES 21865 BANK SERVICE CHARGES 295311 OTHER EXPENSES 56988 107838749 3200 3200 1087041 3803896 0 0 14906014 16536263 0 0 0 0 0 0 0 0 17500584 19182233 25480550 11010476 9264124 14470074 0 0 0 0 196901896 193672664 0 0 0 0 239662859 247668330 7261843 7466202 0 0 7386412 10475201 0 0 0 0 0 0 0 2000000 0 0 35169395 46501241 49817650 66442644 X 0 0 0 0 189845209 181225686 189845209 181225686 239662859 247668330 X -8444733 -174790 X false true true X false 8843211 8843211 2899196 2899196 2009791 1473284 536507 11728352 9537192 2191160 14470074 INVEST. IN RELATED ENTERPRISES 106398709 C FBR BALANCED FUND 36037178 F FBR LARGE CAP FUND 19282117 F FBR CORE BOND FUND 19191804 F FBR SMALL CAP FUND 4053458 F FBR MID CAP FUND 8571528 F FBR MUTUAL FUNDS 137870 F 193672664 0 PREMIUMS DUE UNDERWRITERS 26933264 PENSION & DEFERRED BOARD COMP 16069452 ANNUAL REFUNDS DUE MEMBERS 78729 CONTINGENT LIABILITY HEALTH & FSA 19796 BORROWINGS FROM BANK 3400000 46501241 99394016 107838749 -8444733 6595791 -72000 6523791 -1920942 105989807 6595791 6595791 99394016 99394016 107910749 72000 72000 107838749 107838749 PART XI, LINE 8 AND PART XIII, LINE 2D - OTHER CHANGES IN NET ASSETS: INSURANCE CONTRIBUTIONS REFUNDED TO MEMBERS = $72,000 true COLLEGE SCHOLARSHIP FOR FAMILY OF DECEASED MEMBERS 2 6018 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 X true true X X X X X true true false GEN RALPH EBERHART USAF RET 594940 0 335250 0 39874 0 50293 50000 8194 0 1028551 50000 0 0 R BELL 250478 0 48000 0 5141 0 41078 0 8132 0 352829 0 0 0 M CENTANNI 228785 0 35000 0 2703 0 38029 0 7940 0 312457 0 0 0 M COLE 255310 0 35000 0 22635 0 41689 0 8149 0 362783 0 0 0 D FRENCH 230000 0 48000 0 2709 0 38311 0 8028 0 327048 0 0 0 C GABRIEL 207927 0 33000 0 3478 0 34729 0 7942 0 287076 0 0 0 A GORDON MONROE 164182 0 7500 0 2350 0 27162 0 7773 0 208967 0 0 0 J SANDEFUR 187403 0 33000 0 6583 0 31442 0 7868 0 266296 0 0 0 K TAYLOR 173887 0 31000 0 2456 0 30576 0 7787 0 245706 0 0 0 M DELLAHAN 160871 0 16000 0 3743 0 26234 0 7770 0 214618 0 0 0 R COTTLE 158784 0 12000 0 2991 0 26104 0 7760 0 207639 0 0 0 B ALT 145879 0 12500 0 2012 0 23664 0 7709 0 191764 0 0 0 K SMITH 80597 0 29831 0 52535 0 21111 0 7643 0 191717 0 0 0 E SMITH 95644 0 7500 0 57528 0 24589 0 7737 0 192998 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 $13,956 IN 2011. THE ASSOCIATION ALSO PAYS THE MONTHLY DUES FOR THE PRESIDENT AT A SOCIAL CLUB FOR MILITARY PERSONNEL. THESE DUES ARE REPORTABLE COMPENSATION TO THE PRESIDENT AND TOTALED $5,919 IN 2011. SCH J PART I LINE 4A - SEVERANCE PAYMENTS: THE FOLLOWING INDIVIDUALS RECEIVED SEVERANCE PAYMENTS DURING 2011: E. SMITH - $55,294 K. SMITH - $50,373 SCH J PART I LINE 4B - SUPPLEMENTAL NONQUALIFIED PLAN NET PERIODIC PENSION COST: PRESIDENT - GEN. R. EBERHART, USAF (RET.) $231,926 CIO - R. BELL $20,380 GENERAL COUNSEL - M. COLE $20,589 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 19,583 MEMBERS AND SPOUSES. INSURANCE IN FORCE TOTALLED $3.1 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. 39 DEATH CLAIMS WERE PAID OUT IN 2011 TOTALLING TO $3,235,000. 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 EMPLOYEES (INCLUDING 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 (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 14 - DOCUMENT RETENTION AND DESTRUCTION POLICY: THE ASSOCIATION'S WRITTEN DOCUMENT DESTRUCTION POLICY WAS FORMALLY APPROVED BY THE BOARD IN 2012. 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 5 - RECONCILIATION OF NET ASSETS: OTHER CHANGES IN NET ASSETS CONSIST OF: UNREALIZED INVESTMENT GAINS $6,595,790 OTHER COMPREHESIVE LOSS - SECURITIES (75,556) OTHER COMPREHENSIVE LOSS - PENSION (6,623,024) ANNUAL REFUNDS DUE MEMBERS (72,000) ------------ TOTAL ($174,790) 5STAR BANK 101 S SAHWATCH STE 100 COLORADO SPRINGS CO 80903 930762778 BANKING SVCS CO 5STAR FNCL LLC C CORP 580000 187700000 1.00000 5STAR LIFE INSURANCE COMPANY 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541829709 LIFE INSURANC VA 5STAR FNCL LLC C CORP 2628000 276124000 1.00000 5STAR FINANCIAL LLC 909 N WASHINGTON STREET ALEXANDRIA VA 22314 521616382 FINANCIAL SER VA AFBA INV TRUST C CORP 76000 105910000 1.00000 AFBA INVESTMENT TRUST 909 N WASHINGTON STREET ALEXANDRIA VA 22314 516588783 GRANTOR TRUST VA AFBA TRUST 0 0 1.00000 5STAR GENERAL AGENCY 909 N WASHINGTON STREET ALEXANDRIA VA 22314 020564967 INS SALES VA 5STAR LIFE INS C CORP 0 0 1.00000 5STAR ADVERTISING COMPANY 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541536557 INACTIVE VA 5STAR FNCL LLC C CORP 0 0 1.00000 FINANCIAL SERVICES PUBL CO 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541707073 INACTIVE VA 5STAR FNCL LLC C CORP 0 0 1.00000 AFBA 5STAR INVESTMENT MNG CO 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541841308 MUTUAL FUNDS VA 5STAR FNCL LLC C CORP 8000 0 1.00000 5STAR ADMINISTRATORS INC 909 N WASHINGTON STREET ALEXANDRIA VA 22314 541802185 INACTIVE VA 5STAR FNCL LLC C CORP 0 0 1.00000 FBR FUNDS 1001 NINETEENTH STREET NORTH ARLINGTON VA 22209 111111111 INV FUNDS DE AFBA TRUST -558000 83600000 0.33800 true true false false true false true false false true true true true true true true true true 5STAR BANK A 25782 CASH, ACCRUAL 5STAR FINANCIAL LLC B 1000000 CASH 5STAR FINANCIAL LLC E 600000 CASH 5STAR BANK E 3400000 CASH 5STAR FINANCIAL LLC J 1551659 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY K, N 568569 CASH, ACCRUAL 5STAR BANK L 166122 CASH, ACCRUAL 5STAR FINANCIAL LLC L, N 99641 CASH 5STAR LIFE INSURANCE COMPANY L, N 4170414 CASH, ACCRUAL 5STAR LIFE INSURANCE COMPANY L, N, 83218753 CASH, ACCRUAL 5STAR BANK N, O 342612 CASH 5STAR LIFE INSURANCE COMPANY M 1216821 CASH, ACCRUAL 5STAR BANK P 734533 CASH 5STAR LIFE INSURANCE COMPANY P, N 1484081 CASH 5STAR LIFE INSURANCE COMPANY Q 6755523 CASH 5STAR LIFE INSURANCE COMPANY R 7640016 CASH