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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 11-K
Annual Report
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
(Mark One):
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996]
For the fiscal year ended December 31, 2001
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _____________ to ______________
Commission file number: 1-14603
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Retirement Plan for Field Underwriters
of MONY Life Insurance Company
B. Name of the issuer of the securities held pursuant to the plan and the
address of its principal executive office:
THE MONY GROUP INC.
1740 Broadway
New York, New York 10019
Retirement Plan for Field Underwriters
of MONY Life Insurance Company
INDEX
Page(s)
------
Independent Auditors' Report 1
Financial Statements:
Statements of Net Assets Available for Benefits
as of December 31, 2001 and 2000 2
Statement of Changes in Net Assets Available for
Benefits for the year ended December 31, 2001 3
Notes to Financial Statements 4-13
Supplemental Schedules*:
Schedule of Assets (Held at End of Year)
as of December 31, 2001 14
Schedule of Series of Reportable Transactions for the
year ended December 31, 2001 15
Signature 16
Exhibits
Exhibit 23 - Consent of Independent Public Accountants 17
* All other schedules required by the Department of
Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Security
Act of 1974 have been omitted because there is no
information to report.
INDEPENDENT AUDITORS' REPORT
----------
To the Benefits Committee of the Board of Directors of
MONY Life Insurance Company:
We have audited the accompanying statements of net assets available for benefits
of the RETIREMENT PLAN for FIELD UNDERWRITERS of MONY LIFE INSURANCE COMPANY
(the "Plan") as of December 31, 2001 and 2000, and the related statement of
changes in net assets available for benefits for the year ended December 31,
2001. 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 of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, 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 net assets available for benefits of the Plan as of
December 31, 2001 and 2000, and the changes in net assets available for benefits
for the year ended December 31, 2001 in conformity with accounting principles
generally accepted in the United States of America.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
(held at end of year) as of December 31, 2001 and series of reportable
transactions for the year ended December 31, 2001 are presented for the purpose
of additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. These supplemental schedules are the
responsibility of the Plan's management. The supplemental schedules have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ Mitchell & Titus, LLP
New York, New York
June 7, 2002
-1-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Statements of Net Assets Available for Benefits
As of December 31,
-------
2001 2000
------------------ -------------------
ASSETS
Investments, at fair values:
MONY's Pooled Accounts $ 120,597,124 $ 148,454,931
MONY's Guaranteed Interest Contracts 48,644,713 48,011,848
Mutual Funds 27,598,761 33,285,348
Common Stock Fund 1,768,976 1,413,425
---------------- -----------------
Net Assets Available for Benefits $ 198,609,574 $ 231,165,552
================ =================
The accompanying notes are an integral part of these financial statements.
-2-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Statement of Changes in Net Assets Available for Benefits
For the year ended December 31, 2001
-------
Net Assets Available for Benefits, beginning of year $ 231,165,552
------------------
Additions:
MONY's Contributions 3,161,359
Interest Income 3,392,017
------------------
Total Additions 6,553,376
------------------
Deductions:
Net change in fair value of investments in
MONY's Pooled Accounts, Mutual Funds
and Common Stock Fund 23,095,081
Participants' Benefits 15,692,044
Administrative Fees 322,229
------------------
Total Deductions 39,109,354
------------------
Net Decrease (32,555,978)
------------------
Net Assets Available for Benefits, end of year $ 198,609,574
==================
The accompanying notes are an integral part of these financial statements.
-3-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2001 and 2000
--------
NOTE 1. DESCRIPTION OF THE PLAN:
The following description is provided for general information purposes
only. Participants should refer to the plan document for complete
information.
A. General
The Retirement Plan for Field Underwriters of MONY Life Insurance
Company (the "Plan"), a defined contribution money purchase pension
plan, was adopted to provide retirement benefits for Field
Underwriters in recognition of their career service with MONY Life
Insurance Company ("MONY" or the "Company"). Field Underwriters who
are hired under a Career Contract with MONY are eligible to
participate in the Plan.
B. Contributions
MONY contributes an amount equal to 5% of the participant's annual
Benefit Bearing Career Contract earnings plus an additional 2% of such
earnings in excess of the Social Security Old Age Survivor Disability
Insurance wage base.
All Plan contributions are placed in the MONY Investment Plan and
Retirement Plan Trust (the "Trust"). The assets of the Plan are
invested in the following funds administered through the Trust: the
Equity Growth Fund (invested in MONY's Pooled Account No. 2), the
Money Market Fund (invested in MONY's Pooled Account No. 4), the
Special Equity Fund (invested in the Special Equity Fund sub-account
of MONY's Pooled Account No. 10B), the Government Fixed Fund ("GFF",
invested in MONY's Pooled Account No. 16), the Public Bond Fund
(invested in MONY's Pooled Account No. 38), the Equity Income Fund
(invested in MONY's Pooled Account No. 40), Guaranteed Interest
Contract Fund ("GIC Fund", invested in GICs issued by MONY), and the
Managed, International Growth, and Growth funds (invested in the
Enterprise Group of Funds Inc., a family of Mutual Funds sponsored by
Enterprise Capital Management, Inc., which is a wholly-owned
subsidiary of MONY).
On April 17, 2000, MONY began offering a Company Stock Fund (The
"Common Stock Fund") as an investment option. The Common Stock Fund
uses "unit" accounting. As a unitized stock fund, the Common
Stock Fund holds primarily The MONY Group Inc. Common Stock and a
small percentage of cash and short-term instruments, while members
hold units of the Common Stock Fund.
-4-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2001 and 2000
--------
NOTE 1. DESCRIPTION OF THE PLAN: (Continued)
Participants' share values are reduced by the cost of managing the
Plan.
MONY contributions to the Trust are used to purchase shares in the
Funds described above, as elected by the participant. A Plan
participant is entitled to the vested value of accumulated shares
credited to the participant's account, including any earnings
therefrom.
Unlimited transfers among the Pooled Accounts, Mutual Funds and the
GIC Funds are permitted per calendar year. Money transferred from
Money Market, Public Bond, GIC's or GFF funds, cannot be transferred
back into these funds for 90 days.
C. Withdrawals
During active service, the Plan permits participants to withdraw
voluntary deposits or company contributions plus interest credited
thereon, subject to certain conditions. No partial withdrawal of the
accumulated value of the voluntary deposits or company contributions
can be made in an amount less than $500.
D. Vesting
MONY's contributions fully vest after completion of five years of
service, upon early or normal retirement under a career contract, or
upon death while under an active career contract with MONY.
E. Forfeited Accounts
At December 31, 2001 and 2000, forfeited non-vested accounts totaled
$510,183 and $406,934, respectively. These accounts will be used to
reduce future MONY contributions, except as defined in the Plan.
-5-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2001 and 2000
--------
NOTE 1. DESCRIPTION OF THE PLAN: (Continued)
F. Payment of Benefits
Participants terminating after at least five years of service with
MONY, for causes other than death or retirement, may receive a
deferred monthly income. The monthly income will be based on the
amount in the participant's account. Upon a married participant's
death prior to retirement or before his annuity starting date, the
surviving spouse may elect an immediate straight-life annuity
actuarially based on the present value of the participant's vested
accrued benefit, or they may elect an optional form of distribution
provided by the plan. Upon an unmarried participant's death prior to
retirement, the beneficiary will be entitled to receive a plan
distribution generally in the form of an immediate single-sum payment
of the value of the vested portion of MONY's accumulated contributions
and the value of the participant's accumulated deposits. Upon
retirement, participants are entitled to receive the value of funds
credited to their accounts in the form of immediate fixed or variable
annuity benefits providing monthly income payments starting on their
retirement date, or they may elect an optional form of distribution
provided by the Plan. If a participant is married, such distribution
must be in the form of a qualified joint and survivor annuity benefit,
unless spousal consent is received authorizing another form of
distribution.
If an immediate annuity is elected, a transfer of the participant's
balance to MONY in exchange for the guarantee of all future annuity
benefits will occur.
G. Plan termination
MONY may amend or modify the Plan. Moreover, MONY may terminate the
Plan, although it has no present intention of doing so. In the event
that the Plan is terminated, participants' accounts will become fully
vested.
-6-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2001 and 2000
--------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
The financial statements are prepared on an accrual basis of
accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make significant estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.
Investment Valuation and Income Recognition
Interest income is accrued as earned.
The Plan's investments in MONY's Pooled Accounts Nos. 2, 4, 10B, 38
and 40, the Mutual Funds, the Common Stock Fund, are recorded at fair
value. Purchases and sales of shares of ownership in these funds are
recorded on a trade date basis. Realized gains or losses on sales of
shares are calculated on a first-in/first-out basis.
The Plan's investments in MONY's GIC Fund and the Government Fixed
Fund are recorded at fair value, which includes accrued interest.
The Plan presents in the statement of changes in net assets available
for benefits the net change in the fair value of its investments in
MONY's Pooled Accounts, Mutual Funds and MONY's Common Stock Fund,
which consists of realized gains or losses and the unrealized
appreciation or depreciation in the fair value of those investments.
The Plan provides for various investment options in any combination of
stocks, bonds, mutual funds, guaranteed interest contracts, and other
investment securities, through pooled accounts. Investment securities
are exposed to various risks, such as interest rate, market and
credit.
-7-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2001 and 2000
--------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)
Due to the level of risk associated with certain investment securities
and the level of uncertainty related to changes in the value of
investment securities, it is at least reasonably possible that changes
in risk in the near term would materially affect participants' account
balances and the amounts reported in the statements of net assets
available for benefits and the statement of changes in net assets
available for benefits.
The shares and unit values of the Plan's investments in MONY's Pooled
Accounts, MONY's GICs, Mutual Funds, and Common Stock Fund, which
represent rounded amounts, as of December 31, 2001, June 30, 2001 and
December 31, 2000, are as follows:
December 31, 2001 June 30, 2001
-------------------------- --------------------------
Number of Unit Value Number of Unit Value
Shares Shares Shares Shares
-------- -------- -------- -------
Pooled Accounts:
No. 2 185,095 $325.30 199,582 $343.73
No. 4 527,445 24.66 483,706 24.33
No. 10B 313,261 85.87 322,167 92.33
No. 16 -'99* 114,107 11.54 117,881 11.24
No. 38 133,273 34.63 108,698 33.21
No. 40 241,681 60.19 244,057 62.79
Guaranteed Interest Contracts:
GIC 22 - - 1,261,106 13.63
GIC 23 24,238 13.12 25,308 12.77
GIC 24 46,472 13.16 47,383 12.75
GIC 25 20,973 12.39 21,541 12.06
GIC 26 37,572 11.98 38,166 11.67
GIC 27 17,084 11.43 17,573 11.18
GIC 28 4,051,334 11.55 2,541,878 11.23
Mutual Funds:
Managed 1,818,299 8.88 1,868,172 9.47
International
Growth 283,207 14.87 288,469 16.37
Growth 344,631 21.02 330,662 21.20
Common Stock Fund:
MONY Stock 164,350 10.76 87,275 12.49
* Pooled Account 16-91 through `98 rolled over into Pooled Account
16-'99 as of March 31, 2000.
-8-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2001 and 2000
--------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)
December 31, 2000
------------------------
Number of Unit Value
Shares Shares
--------- ----------
Pooled Accounts:
No. 2 214,694 $396.40
No. 4 495,266 23.74
No. 10B 332,781 88.76
No. 16 -'99* 122,673 10.95
No. 38 114,595 32.11
No. 40 251,844 67.63
Guaranteed Interest Contracts:
GIC 21 507,594 12.95
GIC 22 1,337,561 13.23
GIC 23 25,840 12.43
GIC 24 54,195 12.38
GIC 25 21,770 11.74
GIC 26 38,416 11.38
GIC 27 17,720 10.93
GIC 28 2,003,549 10.91
Mutual Funds:
Managed 1,967,142 10.03
International
Growth 300,614 21.26
Growth 296,296 24.18
Common Stock Fund:
MONY Stock 91,807 15.4
* Pooled Account 16-91 through `98 rolled over into Pooled Account 16-'99 as of
March 31, 2000.
-9-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2001 and 2000
-----------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)
MONY's Pooled Accounts are separate accounts whose assets and
liabilities are segregated from the other assets and liabilities of
MONY. Management believes these pooled account assets and liabilities
will not be affected by liabilities that may arise out of any other
business that MONY may conduct.
Pooled Account No. 2, the Equity Growth Fund, is a separate account
primarily invested in common stocks with high earnings growth
potential. Its objective is to achieve a greater total return than the
stock market as a whole.
Pooled Account No. 4, the Money Market Fund, is a separate account
primarily invested in commercial paper. Its objectives are to obtain a
high level of current income consistent with the preservation of
capital and to maintain a quality portfolio of short-term money market
instruments.
Pooled Account No. 10B, the Special Equity Fund, is a separate account
invested in securities of small to medium-size market capitalization
companies.
Pooled Account No. 16, the Government Fixed Fund, is a separate
account that provides for guaranteed rates of return on principal and
interest. The fund is invested solely in obligations of the U.S.
Government and U.S. Government Agencies, which include Treasury Bonds,
Bills, Notes and Agency Obligations.
Pooled Account No. 38, the Public Bond Fund, is a separate account
primarily invested in a diversified portfolio of publicly traded
corporate bonds, concentrated in investment-grade issues in the four
highest major-ranking categories established by Moody's or Standard &
Poor's.
Pooled Account No. 40, the Equity Income Fund, is a separate account
primarily invested in common stock with relatively high current
yields. Its objective is to offer above-average current income and the
opportunity for capital appreciation.
Guaranteed Interest Contracts are contracts with MONY that provide for
guaranteed rates of return on principal invested over specified time
periods. The assets supporting these contracts are invested with the
general assets of MONY.
Managed Fund is a flexible portfolio mutual fund that invests in
common stocks, bonds and cash equivalents.
International Fund is a diversified international asset management
mutual fund that seeks capital appreciation primarily through a
portfolio of non-U.S. equities.
-10-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2001 and 2000
-----------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)
Growth Fund invests in the stocks of companies with long-term earnings
potential but which are currently selling at a discount to their
estimated long-term value. The Fund's equity selection process is
generally lower risk than a typical growth stock approach.
Common Stock Fund invests primarily in The MONY Group Inc. Common
Stock, and a small percentage of cash and short-term instruments.
NOTE 3. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS:
The following table represents the carrying amounts and estimated fair
values of the Company's financial instruments at December 31, 2001 and
December 31, 2000. The calculations of estimated fair values involve
considerable judgment. Accordingly, these estimates of fair value are
not necessarily indicative of the values that could be negotiated in
an actual sale.
December 31, 2001:
Carrying Estimated
Financial Assets: Amount Fair Value
---------------- -------- -----------
Pooled Accounts $120,597,123 $120,597,123
Guaranteed Interest Contracts 48,644,713 48,644,713
Mutual Funds 27,598,761 27,598,761
Common Stock Fund 1,768,976 1,768,976
------------ ------------
$198,609,573 $198,609,573
============ ============
December 31, 2000:
Carrying Estimated
Financial Assets: Amount Fair Value
---------------- -------- -----------
Pooled Accounts $148,454,931 $148,454,931
Guaranteed Interest Contracts 48,011,848 48,011,848
Mutual Funds 33,285,348 33,285,348
Common Stock Fund 1,413,425 1,413,425
------------ ------------
$231,165,552 $231,165,552
============ ============
-11-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2001 and 2000
-----------
NOTE 3. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS: (Continued)
The following represents investment with fair values of 5% or more of
the Plan's net assets of December 31, 2001 and 2000
Issuer/Description 2001 2000
------------------ ------ ------
MONY's Pooled Accounts:
No. 2 $ 60,211,955 $ 85,104,746
No. 4 13,008,164 11,758,985
No. 10B 26,899,612 29,537,083
No. 40 14,545,685 17,031,238
MONY's Guaranteed Interest Contracts:
GIC 28 (matures July 1, 2001 at 6.50%) - 17,694,331
GIC 28 (no maturity at 6.25%) 46,809,802 21,864,298
Managed Fund 16,141,949 19,730,113
The methods and assumptions utilized in estimating these fair values
of financial instruments are summarized as follows:
Pooled Accounts, Mutual Funds and Common Stock Fund
Short-term securities other than money market instruments, with 60
days or less to maturity at the time of purchase are valued at
amortized cost, which approximates market. Money market instruments
are valued at cost, which approximates market; all other short-term
securities are valued at market.
Common stocks are valued at the closing market prices for securities
traded on national securities exchanges, or at the last "bid" prices
for "over-the-counter" securities.
Bonds actively traded on a national securities exchange are valued at
the last reported sales prices. Bonds traded "over-the-counter" are
valued at the last reported "bid" prices.
-12-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2001 and 2000
-----------
NOTE 3. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS: (Continued)
Guaranteed Interest Contracts
-----------------------------
The fair values of the Plan's Guaranteed Interest Contracts are
estimated by discounting expected cash flows using interest rates
currently offered for similar contracts with maturities consistent
with those remaining for the contracts being valued, where
appropriate.
NOTE 4. TAX STATUS:
The Internal Revenue Service has determined and informed the Company,
by a letter dated March 25, 1996, that the Plan and related trust are
designed in accordance with applicable sections of the Internal
Revenue Code (the "Code"). The Plan has been amended since receiving
the determination letter. However, the Plan administrator and the
Plan's tax counsel believe that the Plan is designed and is currently
being operated in compliance with the applicable requirements of the
Code.
-13-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Schedule of Assets (Held at End of Year)
As of December 31, 2001
Historical Costs Fair Value
---------------- ----------
MONY's Pooled Accounts:
No. 2 $ 65,082,632 $ 60,211,955
No. 4 12,921,162 13,008,164
No. 38 4,448,375 4,614,898
No. 10B 28,907,683 26,899,612
No. 16 -'99 at 5.55%* 1,171,203 1,316,810
No. 40 15,056,231 14,545,685
----------------- ------------------
127,587,286 120,597,123
MONY'S Guaranteed Interest Contracts:
GIC 23 matures January 1, 2002 at 5.70% 318,057 318,057
GIC 24 matures July 1, 2002 at 6.40% 611,474 611,474
GIC 25 matures January 1, 2003 at 5.65% 259,884 259,884
GIC 26 matures July 1, 2003 at 5.45% 450,204 450,204
GIC 27 matures July 1, 2003 at 4.75% 195,292 195,292
GIC 28 no maturity at 6.25% 46,809,802 46,809,802
----------------- -----------------
48,644,713 48,644,713
Mutual Funds:
Managed 12,056,540 16,141,949
International Growth 5,308,752 4,211,775
Growth 7,461,965 7,245,037
----------------- -----------------
24,827,257 27,598,761
Common Stock Fund:
MONY Stock 1,768,976 1,768,976
----------------- -----------------
Total $ 202,828,232 $ 198,609,574
================= ==================
*Pooled Account 16-'91 through '98 rolled over into Pooled Account 16-'99 as of
March 31, 2000.
-14-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Schedule of Series of Reportable Transactions
For the year ended December 31, 2001
Number of Total Value of Number of Total Value Cost of Net Realized Gain
Description of Investment Purchases Purchases Sales of Sales Assets Sold (Loss)
--------- --------- ------- ---------- ----------- ------
Money Market Fund 205 $21,631,585 548 $20,874,156 $20,187,657 $686,499
Equity Income Fund 159 3,804,022 342 4,432,399 4,026,858 405,541
Special Equity Fund 211 8,927,615 589 10,404,869 9,217,080 1,187,789
Managed Fund 130 3,557,291 391 4,954,009 5,314,222 (360,213)
Equity Growth Fund 190 7,625,072 564 17,634,742 13,067,675 4,567,067
-15-
Pursuant to the requirements of the Securities Exchange
Act of 1934, the trustees (or other persons who administer
the Plan) have duly caused this Annual Report to be signed
by the undersigned hereunto duly authorized.
RETIREMENT PLAN FOR FIELD
UNDERWRITERS OF MONY LIFE
INSURANCE COMPANY
Date: June 28, 2002 /s/ Robert M. Beecroft
-------------------------------
Robert M. Beecroft
Secretary -
Benefit Plan
Administration Committee