Financial Statements Together with
Report of Independent Certified Public Accountants
THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OFTHE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
For the years ended December 31, 2012 and 2011

THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF
THE GREEK ORTHODOX ARCHDIOCESE OF AMERICATABLE OF CONTENTSPage
Report of Independent Certified Public Accountants

1Financial Statements
Statements of Net Assets Available for Benefits as of December 31, 2012 and 2011

2Statements of Changes in Net Assets Available for Benefits for the years endedDecember 31, 2012 and 2011

3Notes to Financial Statements

4 - 10REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To the Archdiocese Benefits Committee of theGreek Orthodox Archdiocese of America:
We have audited the accompanying statements of net assets available for benefits of The Pension Plan forClergymen and Lay Employees of the Greek Orthodox Archdiocese of America (the “Plan”) as ofDecember 31, 2012 and 2011, and the related statements of changes in net assets available for benefits for theyears then ended. These financial statements are the responsibility of the Plan’s management. 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 ofAmerica established by the American Institute of Certified Public Accountants. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes consideration of internal control over financial reporting as a basis fordesigning audit procedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express nosuch opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements, assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
status of The Pension Plan for Clergymen and Lay Employees of the Greek Orthodox Archdiocese of America asof December 31, 2012 and 2011, and the changes in its financial status for the years then ended, in conformity
with accounting principles generally accepted in the United States of America.

New York, New York, 2013

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, 2012 and 2011

The accompanying notes are an integral part of these statements.
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Statements of Changes in Net Assets Available for Benefits
For the years ended December 31, 201 2 and 2011

The accompanying notes are an integral part of these statements.
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THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OFTHE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2012 and 2011

1.

DESCRIPTION OF THE PENSION PLANGeneral
The 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 wasadopted 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 Planprovides 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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THE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2012 and 2011

Cash and Cash Equivalents
The Plan considers all highly liquid investments purchased with an original maturity of three months or lessto 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 responsibilityof 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 2012 and 2011actuarial computations are as follows:

3.

FUNDING POLICY
The Archdiocese maintains a Church Plan, as such, the Plan is not subject to the Employee Retirement
Income Security Act (“ERISA”). However, the Archdiocese intends to fund the Plan in accordance with theinitial minimum standards of ERISA.
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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, 2012 and 2011

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 tothe 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.

7.

ACCUMULATED BENEFITS
The actuarial present value of accumulated plan benefits and net assets available for benefits as ofJanuary 1,2012 and 2011, are presented below:-6-

THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF
THE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2012 and 2011

The net increase in the Plan’s actuarial present value of accumulated plan benefits was $14,227,763and$2,358,768for the years ended December 31, 2012 and 2011, respectively. For the years ended
December 31, 2012 and 2011, increases were attributable to:8.

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, 2012 and 2011:-7-

THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF
THE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2012 and 2011

9.

FAIR VALUE MEASUREMENTS
The Plan follows guidance that establishes a framework for measuring fair value. Fair value is defined asthe 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 orliabilities 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.
• 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, regularlydistributed 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.
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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, 2012 and 2011

Following is a description of the valuation methodologies used for assets measured at fair value. There havebeen no changes in the methodologies used at December 31, 2012 and 2011.
•Mutual funds and Money market 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.
The following tables set forth by level, within the fair value hierarchy, the Plan’s assets at fair value as ofDecember 31, 2012 and 2011:-9-

THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF
THE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2012 and 201110.

TAX STATUS
The Internal Revenue Service (“IRS”) has determined and informed the Plan’s management by a letter
dated January 28, 2008, that the Plan and related trust are designed in accordance with applicable sectionsof the Internal Revenue Code (“IRC”). The Plan has been amended since receiving the determination letter.
However, the Plan’s management believes the Plan is designed and is currently being operated incompliance with the applicable requirements of the IRC.
US GAAP requiresPlan 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, 2012 and 2011, 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 2009.

11.

SUBSEQUENT EVENTSThe Plan evaluated its December 31, 2012 financial statements for subsequent events through August xx,
2013, 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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