Armed Forces Benefit Association

“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.”

“Election of board: pursuant to the district of columbia's not-for-profit corporation statutes, which is the law applicable to afba as a d.c. Non-profit corporation, afba's board of directors is elected by its existing directors upon receipt of nominations proffered by the board's planning and governance committee. Nominees are identified based on criteria set forth in afba's governing bylaws, including those with the experience, reputation, ability, availability, and commitment to the objectives of the association from the following categories: retired senior officers and non-commissioned officers, as well as other senior persons from the army, navy, air force, marine corps, coast guard, national guard, reserve and, other branches of the uniformed services of the united states; and retired senior officials from organizations that protect and serve the united states homeland including the department of homeland security, police, fire, emergency management, and other governmental entities, and acknowledged business leaders from private industry. The board takes into consideration candidates' backgrounds and diverse perspectives, including gender, ethnicity, and race, to ensure representation of the association's membership. To promote the inclusion of new perspectives into its deliberations, a director may not serve past the age of 75.”

“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.”

“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.”

“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.”

“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.”

“Other program services: the organization provided group select term, military spouse and continuing children life insurance coverage to a population of 11,299 members and spouses. Insurance in force totalled $1.9 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. 103 death claims were paid out in 2022 totalling to $5,161,000.”

“Reconciliation of net assets: other changes in net assets consist of: other comprehensive gain - pension 21,013,199 annual refunds due members (672) interest rate swap fair market value 1,941,231 adjustment for accrued grants 36,703 ------------- 22,990,461 the adjustment for accrued grants of $36,703 on the 2022 return is due to the expiration and corresponding write-off of benefits to certain families, which exceeded the accrual of new benefits for the year.”