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: 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.”

“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 childrens life insurance coverage to a population of 12,495 members and spouses. Insurance in force totalled $2.1 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. 102 death claims were paid out in 2021 totalling to $6,249,200.”

“Reconciliation of net assets: other changes in net assets consist of: other comprehensive gain - pension 7,479,723 annual refunds due members (1,800) interest rate swap fair market value 1,071,001 adjustment for accrued grants 116,327 ------------- 8,665,251 the adjustment for accrued grants of $116,327 on the 2021 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.”