Financial Statements andReport of Independent Certified Public Accountants
THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF THE
GREEK ORTHODOX ARCHDIOCESE OF AMERICA
For the years ended December 31, 2013 and 2012

THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF THE
GREEK ORTHODOX ARCHDIOCESE OF AMERICATABLE OF CONTENTS

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Report of Independent Certified Public Accountants

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Financial Statements
Statements of Net Assets Available for Benefits as of December 31, 2013 and 20123

Statements of Changes in Net Assets Available for Benefits for the years ended
December 31, 2013 and 2012

4

Notes to Financial Statements

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Audit  Tax  Advisory
Grant Thornton LLP
666 Third Avenue, 13th Floor
New York, NY 10017-4011
T 212.599.0100
F 212.370.4520
www.GrantThornton.com

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To the Archdiocese Benefits Committee of the
Greek Orthodox Archdiocese of America:

We have audited the accompanying financial statements of The Pension Plan for Clergymen and Lay Employeesof the Greek Orthodox Archdiocese of America (the “Plan”), which comprise the statements of net assets
available for benefits as of December 31, 2013 and 2012 and the related statements of changes in net assets
available for benefits for the years then ended, and the related notes to the financial statements.
Management’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordancewith accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our
audits in accordance with auditing standards generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Plan’s preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Plan’s internal control. Accordingly, we express nosuch opinion. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.

Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, information
regarding The Pension Plan for Clergymen and Lay Employees of the Greek Orthodox Archdiocese of America’s
net assets available for benefits as of December 31, 2013 and changes therein for the year then ended, and its
financial status as of December 31, 2012 and changes therein for the year then ended in accordance withaccounting principles generally accepted in the United States of America.

New York, New York
July 1, 2014-2-

THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF THE
GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Net Assets Available for Benefits
As of December 31, 2013 and 2012

2013

2012

ASSETS
Cash$

Investments
Interest bearing cash - Atlantic Bank of New York
Investments held by New York Life Trust Company
Mutual funds

486,065$

482,374

61,722

14,10453,309,908

47,448,718

Total investments, at fair value

53,371,630

47,462,822

Net assets available for benefits$ 53,857,695$ 47,945,196

The accompanying notes are an integral part of these statements.
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THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF THE
GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Changes in Net Assets Available for Benefits
For the years ended December 31, 2013 and 20122013
ADDITIONS TO NET ASSETS
Investment income
Net realized and unrealized gains on investments
Interest and dividend income$

7,408,790
891,590

2012$

5,465,288
1,167,461

Total investment income

8,300,380

6,632,749

Contributions from retirement plan participantsContributions from Archdiocese and affiliates

1,679,170
2,119,076

1,672,766
2,214,760

Total additions to net assets

12,098,626

10,520,275

5,867,658
318,469

5,986,466
349,146

Total deductions from net assets

6,186,127

6,335,612

Change in net assets

5,912,499

4,184,663

Net assets available for benefits, beginning of year

47,945,196

43,760,533$ 53,857,695$ 47,945,196

DEDUCTIONS FROM NET ASSETS
Benefits paid to retired participants
Actuarial and administration fees

Net assets available for benefits, end of year

The accompanying notes are an integral part of these statements.
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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2013 and 2012

1.

DESCRIPTION OF THE PENSION PLAN
GeneralThe following description of The Pension Plan for Clergymen and Lay Employees of the Greek Orthodox
Archdiocese of America (the “Plan”) is provided for general information purposes only. Participants
should refer to the Archdiocese benefits office at the Greek Orthodox Archdiocese of America (the“Archdiocese”) for complete information. The Plan is a contributory defined benefit pension plan that was
adopted in 1973. The Plan covers the majority of clergymen and lay employees of the Archdiocese, as wellas employees of participating affiliated organizations.
The Plan is administered by the Archdiocese Benefits Committee (the “ABC”).
Eligibility
Lay employees become eligible for participation upon commencement of employment. Clergy become
eligible for participation following the date of ordination and assignment.
Pension Benefits and Vesting
The Plan provides for 100% vesting after five years of service. Amounts withheld from employees’
compensation and contributed by them are fully refunded along with accrued interest at rates specified by
the Plan if such employee terminates from service prior to 100% vesting. Benefits for participants retiring
at normal (age 65), early or delayed retirement age, or for disability and death benefits are calculated as set
forth in the Plan. The retirement income or survivor benefit shall be increased by 5% for each participant
actively employed who is making contributions to the Plan and each participant, joint annuitant, andbeneficiary who was receiving retirement income or survivor benefits. Minimum participant and survivor
benefits are not payable if a participant makes late personal contributions for six consecutive months.
Joint and survivor contingent annuity factors are as follows:A participant who elects for their survivor to receive 100% of the pension benefit that they arereceiving, will receive 83% of their pension benefit while alive;
A participant who elects for their survivor to receive 50% of the pension benefit that they arereceiving, will receive 91% of their pension benefit while alive.

Participant Contributions
A participant may elect to make contributions in an amount equal to 3½% to 5% of earnings in accordancewith the rules established by the ABC.
2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of Presentation
The accompanying financial statements have been prepared in conformity with accounting principles
generally accepted in the United States of America (“US GAAP”) using the accrual basis of accounting.

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2013 and 2012

Cash and Cash Equivalents
The Plan considers all highly liquid investments with an original maturity of three months or less, at thetime of purchase, to be cash equivalents.
Investment Valuation and Income Recognition
The Plan’s investments are reported at fair value. Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. See Note 9 for discussion of fair value measurements.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded, as earned,
on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation/(depreciation)
includes the Plan’s gains and losses on investments sold as well as unrealized gains/losses on investments
held during the year.
Administrative Expenses
Administrative expenses are the responsibility of the Plan.
Benefits Paid to Retired Participants
Benefits paid to retired participants are recorded when paid.
Use of Estimates
The preparation of financial statements in conformity with US GAAP requires management to makeestimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses andother disclosures during the reporting period. Actual results could differ from those estimates.
Actuarial Assumptions
Significant assumptions underlying the 2013 and 2012 actuarial computations are as follows:
Actuarial cost method

Aggregate cost method

Rate of investment return

7% compounded annually for 2013 and 2012

Mortality

2013 IRS Static Mortality Tables in 2013 and 2012 IRS Static
Tables in 2012Retirement Age - Active

Attained age
62-64
65
66-69
60

Percentage retiring inPlan year
10%
30%
20%
100%

Retirement age - Vested TerminatedAge 65 or attained age, if later

Interest on Employee Contributions

Interest on employee contributions is to be credited at 120%of the Applicable Federal Mid-Term Rate as of January ofthat plan year

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2013 and 2012

3.

FUNDING POLICY
The Archdiocese maintains a Church Plan, as such, the Plan is not subject to the Employee Retirement
Income Security Act (“ERISA”). The Archdiocese intends to fund the Plan in accordance with the initial
minimum standards of ERISA as originally enacted. Consequently, amendments to ERISA after 1974 havenot been taken into account.

4.

RISKS AND UNCERTAINTIESInvestment securities, in general, are exposed to various risks, such as interest rate, credit and overallmarket volatility risks. Due to the level of risk associated with such investment securities, it is reasonably
possible that changes in the valuation of investment securities will occur in the near term and such changes
could materially affect the amounts reported in the statements of net assets available for benefits.
Plan contributions are made and the actuarial present value of accumulated plan benefits are reported basedon certain assumptions pertaining to interest rates, inflation rates and employee demographics, all of which
are subject to change. Due to uncertainties inherent in the estimations and assumptions process, it is at least
reasonably possible that changes in these estimates and assumptions in the near term would be material to
the financial statements.

5.

PARTY-IN-INTEREST
Certain Plan investments are managed by New York Life Trust Company (“NYLIM”). NYLIM is theTrustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions.

6.

PLAN TERMINATION
Although no intentions to terminate the Plan have been expressed, the Plan may be terminated at any timeby the ABC, at which time the assets of the Plan would be liquidated, allocated and distributed inaccordance with the provisions of the Plan.

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THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF THE
GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2013 and 2012

7.

ACCUMULATED PLAN BENEFITS
The actuarial present value of accumulated plan benefits and net assets available for benefits as ofJanuary 1, 2013 and 2012, are presented below:

Actuarial present value of accumulated plan benefits
Vested benefits
Participants currently receiving payments
Other participants
Total vested benefits
Non vested benefits
Total actuarial present value of accumulated
plan benefits
Net assets available for benefits

2013

2012

$ 46,957,469
41,596,253$ 44,831,013
40,345,711

88,553,722

85,176,724

578,859

731,770$ 89,132,581$ 85,908,494$ 53,857,695$ 47,945,196

The net increase in the Plan’s actuarial present value of accumulated plan benefits was $3,224,087 and$14,227,763 for the years ended December 31, 2013 and 2012, respectively. For the years ended
December 31, 2013 and 2012, increases were attributable to:

2013

2012

$ 85,908,494$ 71,680,731

Amendment of plan
Changes in actuarial assumptions
Benefits accumulated and (gains) losses
Benefits paid
Interest

319,951
181,676
2,904,858(5,986,466)
5,804,068

10,946,159
3,401,966(5,629,635)
5,509,273

Net increase

3,224,087

14,227,763$ 89,132,581$ 85,908,494

Actuarial present value of accumulated plan benefits,
beginning of year

Actuarial present value of accumulated plan benefits,
end of year-8-THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF THE
GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2013 and 20128.

INVESTMENTS
The following table presents the fair value of investments that represent 5% or more of the Plan’s net assets
as of December 31, 2013 and 2012:

2013
Dodge & Cox Intl Stock Fund
American Beacon Lrg Cap Value*
Doubleline Total Rtn Bnd Fd I*
Eaton Vance Inc Fd of Boston A**
Harbor International Fund Inst
Mainstay Large Cap Growth I
Mainstay ICAP Select Equity I*
T Rowe Price New American Growth Adv
Invesco Mid Cap Core Eq R5**
Third Avenue Real Est Val Inst*
Lazard Emerging Markets Inst*
Wells Fargo Adv Growth Admin*
JP Morgan Equity Income A*$

3,756,547
2,989,529
3,194,789
6,545,849
4,835,690
3,167,083
3,649,493
3,111,037
3,017,099
3,045,483
3,058,068

2012$

2,973,980
2,425,811
5,602,463
3,531,273
2,439,660
2,657,215
2,375,592
2,672,203
3,041,307-* Represents 5% or more of the Plan’s net assets only in 2013** Represents 5% or more of the Plan’s net assets only in 2012

9.

FAIR VALUE MEASUREMENTS
The Plan follows guidance that establishes a framework for measuring fair value. Fair value is defined as
the price that would be received from selling an asset or paid to transfer a liability in the principal or mostadvantageous market for the asset or liability in an orderly transaction between market participants at themeasurement date. The framework also provides a fair value hierarchy that prioritizes the inputs tovaluation techniques used to measure fair value. The fair value hierarchy gives the highest priority tounadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and thelowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy
under the guidance are described below:
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or
liabilities in active markets that the Plan has the ability to access.
Level 2 - Inputs to the valuation methodology, including the following: Quoted prices for similar assets or liabilities in active markets.
 Quoted prices for identical or similar assets or liabilities in inactive markets.
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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2013 and 2012

 Inputs other than quoted prices that are observable for the asset or liability.
 Inputs that are derived principally from or corroborated by observable market data bycorrelation or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be observablefor substantially the full term of the asset or liability. Also included in Level 2 are investments
measured using a net asset value (“NAV”) per share, or its equivalent, that may be redeemedat that NAV at the period end date or in the near term, which is generally considered to be 90
days.
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest
level of any input that is significant to the fair value measurement. Valuation techniques used need tomaximize the use of observable inputs and minimize the use of unobservable inputs. However, thedetermination of what constitutes observable requires judgment by the Plan’s management. Plan
management considers observable data to be that market data which is readily available, regularly
distributed or updated, reliable and verifiable, not proprietary, and provided by multiple independentsources that are actively involved in the relevant market.
The categorization of an investment within the fair value hierarchy is based upon the pricing transparencyof the investment and does not necessarily correspond to Plan management’s perceived risk of thatinvestment.
Following is a description of the valuation methodologies used for assets measured at fair value. There
have been no changes in the methodologies used at December 31, 2013 and 2012.


Mutual funds: Valued at the closing price reported on the active market on which the individual
securities are traded.

The methods described above may produce a fair value calculation that may not be indicative of net
realizable value or reflective of future fair values. While plan management believes its valuation methods
are appropriate and consistent with other market participants, the use of different methodologies orassumptions to determine the fair value of certain financial instruments could result in a different fair value
measurement at the reporting date.

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THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF THE
GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2013 and 2012

The following tables set forth by level, within the fair value hierarchy, the Plan’s assets at fair value as ofDecember 31, 2013 and 2012:

December 31, 2013
Level 2
Level 3

Level 1
Mutual funds
Value
EquityBlendedFixed income
Growth$ 10,093,715
8,477,449
14,717,456
8,490,622
11,530,666

Total mutual funds
Interest bearing cash$

Total mutual funds
Interest bearing cash

$ 10,093,715
8,477,449
14,717,456
8,490,622
11,530,666-

53,309,908

61,722--

61,722-$ 53,371,630

9,617,580
8,496,434
9,778,053
12,020,624
7,536,027$-$

December 31, 2012
Level 2
Level 3
$

-

$

Total

-

$ 9,617,580
8,496,434
9,778,053
12,020,624
7,536,027

47,448,718--

47,448,718

14,104--

14,104-$ 47,462,822$ 47,462,822
10.

-

-

Level 1$$53,309,908$ 53,371,630

Mutual funds
Value
EquityBlendedFixed income
Growth

-

Total

$

-

$

TAX STATUS
The Internal Revenue Service (“IRS”) has determined and informed the Plan’s management by a letter
dated March 1, 2013, that the Plan and related trust are designed in accordance with applicable sections of
the Internal Revenue Code (“IRC”). The Plan’s management believes the Plan is designed and is currently
being operated in compliance with the applicable requirements of the IRC.

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THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF THE
GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2013 and 2012

US GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax
liability if the Plan has taken an uncertain position that more likely than not would not be sustained upon
examination by the IRS. The Plan administrator has analyzed the tax positions taken by the Plan, and has
concluded that as of December 31, 2013 and 2012, there are no uncertain positions taken or expected to betaken that would require recognition of a liability or disclosure in the financial statements. The Plan issubject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods inprogress. The Plan administrator believes that it is no longer subject to income tax examinations for years
prior to 2010.
11.

SUBSEQUENT EVENTSThe Plan evaluated its December 31, 2013 financial statements for subsequent events through July 1, 2014,
the date the financial statements were available to be issued. The Plan is not aware of any subsequent
events that would require recognition or disclosure in the financial statements.

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