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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------
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, 2002
OR
[ ] 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, 2002 and 2001 2
Statement of Changes in Net Assets Available for
Benefits for the year ended December 31, 2002 3
Notes to Financial Statements 4-12
Supplemental Schedules*:
Schedule of Assets (Held at End of Year)
as of December 31, 2002 13
Schedule of Series of Reportable Transactions for the
year ended December 31, 2002 14
Signature 15
Exhibit Index
Exhibit 23.1 16
Exhibit 99.1 17
Exhibit 99.2 18
* All other schedules required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee
Retirement Income 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, 2002 and 2001, and the related statement of
changes in net assets available for benefits for the year ended December 31,
2002. 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 audits 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, 2002 and 2001, and the changes in net assets available for benefits
for the year ended December 31, 2002 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, 2002, and series of reportable
transactions for the year ended December 31, 2002 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 audit 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
May 23, 2003
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Statements of Net Assets Available for Benefits
As of December 31,
2002 2001
------------ ------------
ASSETS
Investments, at fair values:
MONY's Pooled Accounts $ 90,521,560 $120,597,124
MONY's Guaranteed Interest Contracts 52,010,982 48,644,713
Mutual Funds 21,262,883 27,598,761
Common Stock Fund 1,257,449 1,768,976
------------ ------------
Net Assets Available for Benefits $165,052,874 $198,609,574
============ ============
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,
2002
-------------
Net Assets Available for Benefits, beginning of year $ 198,609,574
-------------
Additions:
MONY's Contributions 2,792,870
Interest Income 2,996,169
-------------
Total Additions 5,789,039
-------------
Deductions:
Net change in fair value of investments in
MONY's Pooled Accounts, Mutual Funds
and Common Stock Fund 25,392,590
Participants' Benefits 13,675,266
Administrative Fees 277,883
-------------
Total Deductions 39,345,739
-------------
Net Decrease 33,556,700
-------------
Net Assets Available for Benefits, end of year $ 165,052,874
=============
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, 2002 and 2001
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-'99), 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), the
Managed/Balanced Fund (invested in the Dodge & Cox Balanced Fund*),
and the 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).
------------------------
* Prior to May 20, 2002, the assets invested in the Dodge & Cox
Balanced Fund were invested in the Enterprise Managed 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, 2002 and 2001
NOTE 1. DESCRIPTION OF THE PLAN: (Continued)
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 MONY Group Inc. common stock and a small
percentage of cash and short-term instruments, while members hold
units of the Common Stock Fund.
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 and the Mutual Funds are
permitted per calendar year. Money transferred from the GIC Fund
cannot be transferred back into this Fund for 90 days. The GFF
maintains balances from prior transfers and deposits; however,
contributions and transfers are no longer permitted into this Fund.
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, 2002 and 2001, forfeited non-vested accounts totaled
$490,673, and $510,183, respectively. These accounts will be used to
reduce future MONY contributions, except as defined in the Plan. These
accounts are reflected in the accompanying financial statements.
-5-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2002 and 2001
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 management has no intention of terminating the Plan. 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, 2002 and 2001
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.
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 fair value. Money market
instruments are valued at cost, which approximates fair value; all
other short-term securities are valued at fair value.
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.
The Plan's investments in MONY's Pooled Accounts Nos. 2, 4, 10B, 38
and 40, Mutual Funds, and Common Stock Fund, are valued at quoted
market 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.
-7-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2002 and 2001
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)
The Plan's investments in MONY's GIC Fund and the GFF (Pooled Account
No. 16-'99) are stated at contract value including accrued interest,
which approximates fair value.
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.
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.
-8-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2002 and 2001
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)
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, 2002 and 2001, are as
follows:
December 31, 2002 December 31, 2001
--------------------------------------------------------------
Number of Unit Value Number of Unit Value
Shares Per Share Shares Per Share
------ --------- ------ ---------
Pooled Accounts:
No. 2 160,830 $ 252.08 185,095 $ 325.30
No. 4 474,355 25.04 527,445 24.66
No. 10B 285,171 64.88 313,261 85.87
No. 16 -'99 99,751 12.13 114,107 11.54
No. 38 183,840 38.40 133,273 34.63
No. 40 222,379 50.95 241,681 60.19
Guaranteed Interest Contracts:
GIC 23 - - 24,238 13.12
GIC 24 - - 46,472 13.16
GIC 25 18,986 13.07 20,973 12.39
GIC 26 29,757 12.62 37,572 11.98
GIC 27 15,049 11.96 17,084 11.43
GIC 28 4,203,212 12.18 4,051,334 11.55
Mutual Funds:
Managed/Balanced 1,656,252 7.93 1,818,299 8.88
International 257,436 11.96 283,207 14.87
Growth 311,849 16.17 344,631 21.02
Company Stock:
Common Stock Fund 168,378 7.47 164,350 10.76
-9-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2002 and 2001
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-'99, 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.
-10-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2002 and 2001
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)
Managed/Balanced Fund assets are allocated among stocks, bonds and
cash equivalents based upon the portfolio manager's evaluation of
economic and market trends and the manager's perception of the
relative values available from such types of securities. There is
neither a minimum nor a maximum percentage of portfolio assets that
must be invested in a specific investment category.
International Fund is a diversified international asset management
mutual fund that seeks capital appreciation primarily through a
portfolio of non-U.S. equities.
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 MONY Group Inc. common stock,
and a small percentage of cash and short-term instruments.
NOTE 3. INVESTMENTS:
The following represents investment with fair values of 5% or more of
the Plan's net assets as of December 31, 2002 and 2001:
Issuer/Description 2002 2001
------------------ ------ ------
MONY's Pooled Accounts:
No. 2 $ 40,542,366 $ 60,211,955
No. 4 11,878,702 13,008,164
No. 10B 18,500,806 26,899,612
No. 40 11,329,965 14,545,685
MONY's Guaranteed Interest Contracts:
GIC 28 (no maturity at 5.35%) 51,207,439 46,809,802
Managed/Balanced Fund 13,142,002 16,141,949
-11-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Notes to Financial Statements
As of and for the years ended December 31, 2002 and 2001
NOTE 4. TAX STATUS:
The Internal Revenue Service ("IRS") 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. A revised plan document was submitted to the
IRS for approval on June 28, 2002, and the approval on the revision is
pending.
NOTE 5. ADMINISTRATIVE FEES:
All usual and reasonable expenses of the Plan and the Plan
administrator are paid by the Company but an amount approximating to
.15% of the net asset values is reimbursed to the Company. The Plan's
reimbursement to the Company for the year ended December 31, 2002 was
$277,883.
NOTE 6. TRANSACTIONS WITH PARTIES IN INTEREST:
Fees paid during the year for trustee, recordkeeping, accounting and
other professional services rendered by parties-in-interest were based
on customary and reasonable rates for such services.
-12-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Schedule of Assets (Held at End of Year)
As of December 31, 2002
Historical Costs Fair Value
---------------- ----------
MONY's Pooled Accounts:
No. 2 $ 58,506,304 $ 40,542,366
No. 4 11,818,278 11,878,702
No. 38 6,718,648 7,059,963
No. 10B 23,919,900 18,500,806
No. 16 -'99 at 5.55% 996,351 1,209,758
No. 40 13,470,338 11,329,965
------------ ------------
115,429,819 90,521,560
------------ ------------
MONY'S Guaranteed Interest Contracts:
GIC 25 matures January 1, 2003 at 5.65% 248,179 248,179
GIC 26 matures July 1, 2003 at 5.45% 375,428 375,428
GIC 27 matures July 1, 2003 at 4.75% 179,936 179,936
GIC 28 no maturity at 6.25% 51,207,439 51,207,439
------------ ------------
52,010,982 52,010,982
------------ ------------
Mutual Funds:
Managed/Balanced 10,084,160 13,142,002
International Growth 3,343,532 3,078,843
Growth 5,838,798 5,042,038
------------ ------------
19,266,490 21,262,883
------------ ------------
Common Stock Fund:
MONY Stock 1,762,688 1,257,449
------------ ------------
Total $188,469,979 $165,052,874
============ ============
-13-
Retirement Plan for Field Underwriters of
MONY Life Insurance Company
Schedule of Series of Reportable Transactions
For the year ended December 31, 2002
Number of Total Value of Number of Total Value Cost of Net Realized
Description of Investment Purchases Purchases Sales of Sales Assets Sold Gain (Loss)
--------- --------- ----- -------- ----------- -----------
Money Market Fund 222 $21,054,075 546 $22,383,940 $22,156,959 $ 226,981
Equity Income Fund 159 2,995,281 387 4,089,753 4,581,174 (491,421)
Special Equity Fund 213 7,704,965 436 9,540,865 12,692,747 (3,151,882)
Managed/Balanced Fund 147 18,031,199 735 19,308,357 22,934,358 (3,362,764)
Equity Growth Fund 168 5,483,816 459 12,365,268 12,060,143 (305,125)
-14-
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 27, 2003 /s/ Robert M. Beecroft
-------------------------------
Robert M. Beecroft
Secretary -
Benefit Plan
Administration Committee,
as Plan Administrator