form11kbarg2008.htm
 


 
 
 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
 
 
 
FORM 11-K
 
 
 
 
 
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the fiscal year ended December 31, 2008
 
 
OR
 
 
[  ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
Commission File Number 1-8841
 
 
 
FPL Group Bargaining Unit Employee Retirement Savings Plan
(Full title of the plan)
 
 
FPL GROUP, INC.
(Name of issuer of the securities held pursuant to the plan)
 
 
 
700 Universe Boulevard
Juno Beach, Florida 33408
(Address of principal executive office)
 
 

 
 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 
Participants and the Employee Benefit Plans
   Administrative Committee
FPL Group Bargaining Unit Employee Retirement Savings Plan
Juno Beach, Florida
 
We have audited the accompanying statements of net assets available for benefits of FPL Group Bargaining Unit Employee Retirement Savings Plan (the Plan) as of December 31, 2008 and 2007, and the related statement of changes in net assets available for benefits for the year ended December 31, 2008.  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 the standards of the Public Company Accounting Oversight Board (United States).  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, 2008 and 2007, and the changes in net assets available for benefits for the year ended December 31, 2008 in conformity with U.S. generally accepted accounting principles.
 
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental schedule of assets (held at end of year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is 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.  The supplemental schedule is the responsibility of the Plan's management.  The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic 2008 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2008 financial statements taken as a whole.
 
 
                                                                                           Crowe Horwath LLP
Columbus, Ohio
June 19, 2009

 
 

 

FPL GROUP BARGAINING UNIT EMPLOYEE RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
 
 
 
   
December 31, 2008
 
         
Nonparticipant-Directed
       
   
Participant-
Directed
   
Allocated
   
Unallocated
   
Total
 
ASSETS
                       
Participant-directed investments
  $ 466,323,276     $ -     $ -     $ 466,323,276  
Nonparticipant-directed investments (Leveraged ESOP)
    -       103,342,185       97,779,419       201,121,604  
Total investments, at fair value
    466,323,276       103,342,185       97,779,419       667,444,880  
Accrued interest receivable
    -       -       214       214  
Total assets, reflecting interest in assets of Master Trust
    466,323,276       103,342,185       97,779,633       667,445,094  
                                 
LIABILITIES
                               
Leveraged ESOP Note:
                               
Current
    -       -       5,190,741       5,190,741  
Non-current
    -       -       45,034,344       45,034,344  
Interest payable - Leveraged ESOP
    -       -       162,227       162,227  
Total liabilities, reflecting interest in liabilities of Master Trust
    -       -       50,387,312       50,387,312  
Interest in net assets of Master Trust, reflecting all investments at fair value
    466,323,276       103,342,185       47,392,321       617,057,782  
                                 
Adjustments from fair value to contract value for fully benefit-responsive investment contracts
    (2,061,186 )     -       -       (2,061,186 )
NET ASSETS AVAILABLE FOR BENEFITS
  $ 464,262,090     $ 103,342,185     $ 47,392,321     $ 614,996,596  
 
 
 
   
December 31, 2007
 
         
Nonparticipant-Directed
       
   
Participant-
Directed
   
Allocated
   
Unallocated
   
Total
 
ASSETS
                       
Participant-directed investments
  $ 620,628,612     $ -     $ -     $ 620,628,612  
Nonparticipant-directed investments (Leveraged ESOP)
    -       139,880,051       150,092,790       289,972,841  
Total investments, at fair value
    620,628,612       139,880,051       150,092,790       910,601,453  
Accrued interest receivable
    -       -       494       494  
Total assets, reflecting interest in assets of Master Trust
    620,628,612       139,880,051       150,093,284       910,601,947  
                                 
LIABILITIES
                               
Leveraged ESOP Note:
                               
Current
    -       -       215,757       215,757  
Non-current
    -       -       53,395,576       53,395,576  
Interest payable - Leveraged ESOP
    -       -       173,165       173,165  
Total liabilities, reflecting interest in liabilities of Master Trust
    -       -       53,784,498       53,784,498  
Interest in net assets of Master Trust, reflecting all investments at fair value
    620,628,612       139,880,051       96,308,786       856,817,449  
                                 
Adjustments from fair value to contract value for fully benefit-responsive investment contracts
    (436,580 )     -       -       (436,580 )
NET ASSETS AVAILABLE FOR BENEFITS
  $ 620,192,032     $ 139,880,051     $ 96,308,786     $ 856,380,869  
 
 
The accompanying Notes to the Financial Statements are an integral part of these statements.
 
 
 

 
 

 
FPL GROUP BARGAINING UNIT EMPLOYEE RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2008
 
 
 
         
Nonparticipant-Directed
       
   
Participant-
Directed
   
Allocated
   
Unallocated
   
Total
 
ADDITIONS
                       
Participant contributions
  $ 32,980,520     $ -     $ -     $ 32,980,520  
Allocation of Leveraged ESOP shares (see Note 3)
    -       11,076,215       -       11,076,215  
Transfer from nonparticipant directed investments
    7,135,364       -       -       7,135,364  
Increase in Leveraged ESOP unallocated account (see Note 3)
    -       -       4,393,092       4,393,092  
                                 
Net investment loss:
                               
Net investment loss in participation in
                               
Master Trust, at fair value
    (140,259,191 )     (31,781,414 )     -       (172,040,605 )
Total additions
    (100,143,307 )     (20,705,199 )     4,393,092       (116,455,414 )
                                 
DEDUCTIONS
                               
Benefit payments to participants and beneficiaries
    53,245,981       8,197,364       -       61,443,345  
Transfer to participant directed investments
    -       7,135,364       -       7,135,364  
                                 
Decrease in Leveraged ESOP unallocated account (see Note 3)
    -       -       53,309,557       53,309,557  
Administrative expenses
    42,831       12,634       -       55,465  
Total deductions
    53,288,812       15,345,362       53,309,557       121,943,731  
                                 
Transfers from the Plan, net
    (2,497,823 )     (487,305 )     -       (2,985,128 )
                                 
NET DECREASE
    (155,929,942 )     (36,537,866 )     (48,916,465 )     (241,384,273 )
                                 
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 2007
    620,192,032       139,880,051       96,308,786       856,380,869  
                                 
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 2008
  $ 464,262,090     $ 103,342,185     $ 47,392,321     $ 614,996,596  
 
 
The accompanying Notes to the Financial Statements are an integral part of these statements.
 

 

 
 
FPL GROUP BARGAINING UNIT EMPLOYEE RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the year ended December 31, 2008
 
1.  Description of the Plan
 
The following description of the FPL Group Bargaining Unit Employee Retirement Savings Plan (the Plan) provides only general information.  Participating employees (Participants) should refer to the Summary Plan Description available in their employee handbook (as updated periodically through Summaries of Material Modifications) or the Plan Prospectus for a more complete description of the Plan.
 
General
 
The Plan is a defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).  Participation in the Plan is voluntary.  Bargaining unit employees of FPL Group, Inc. (the Company or FPL Group) and its subsidiaries, with the exception of employees in the International Brotherhood of Electrical Workers local 2150 (IBEW 2150) at NextEra Energy Point Beach, LLC formerly known as FPL Energy Point Beach, LLC (NextEra Energy Point Beach), are eligible to participate in the Plan on the first day of the month coincident with the completion of one full month of service with the Company or certain of its subsidiaries or on the first day of any payroll period thereafter.  Employees in the IBEW 2150 at NextEra Energy Point Beach, are eligible to participate in the Plan on the first day of employment.  In September 2007, the Company acquired Point Beach nuclear facility and as a result participants in the Nuclear Management Company, LLC 401(k) Savings Plan and WEC Employee Retirement Savings Plan were eligible to make a voluntary rollover into the Plan.  The Plan includes a cash or deferred compensation arrangement (Pretax Option) permitted by Section 401(k) of the Internal Revenue Code of 1986, as amended (the Code).  The Pretax Option permits Participants to elect to defer federal income taxes on all or a portion of their contributions (Pretax Contributions) until such contributions are distributed from the Plan.  Under current tax law, the annual limitation on Pretax Contributions for the 2008 Plan year was $15,500.  The Pretax Contribution limit increased in 2009 to $16,500.  In addition, individuals age 50 or older who contributed the maximum allowable under the Pretax Option in the Plan have the option of contributing up to an additional $5,000 annually in Pretax Contributions in 2008, increased to $5,500 in 2009.
 
The Plan also includes leveraged employee stock ownership plan (Leveraged ESOP) provisions.  The Leveraged ESOP is a stock bonus plan within the meaning of U.S. Treasury Regulation Section 1.401-1(b)(1)(iii) that is qualified under Section 401(a) of the Code and is designed to invest primarily in the common stock, par value $.01 per share, of FPL Group (Company Stock).  Pursuant to the Leveraged ESOP, the Master Trust for Retirement Savings Plans of FPL Group, Inc. and Affiliates (Master Trust) purchased Company Stock from the Company using the proceeds of a loan (Acquisition Indebtedness) from FPL Group Capital Inc (FPL Group Capital), a subsidiary of FPL Group.  The Company Stock acquired by the Master Trust is initially held in a separate account (Leveraged ESOP Account).  As the Acquisition Indebtedness (including interest) is repaid, Company Stock is released from the Leveraged ESOP Account and allocated to Plan Participants.
 
The Plan has a Dividend Payout Program which enables Participants to choose how their dividends on certain shares of Company Stock held in the Plan are to be paid.  The options available to Participants include reinvestment of dividends in Company Stock, distribution of dividends in cash, or a partial cash distribution with the balance reinvested in Company Stock.  Dividends on Company Stock held in the Leveraged ESOP do not qualify under this program.
 
Trustee
 
Fidelity Management Trust Company (Trustee) administers the Master Trust established to hold the assets and liabilities of the Plan and the FPL Group Employee Retirement Savings Plan (Non-Bargaining Plan) (collectively, The Master Trust Plans).
 
Administration of the Plan
 
The Plan is intended to qualify as a participant-directed account plan under Section 404(c) of ERISA.  The Employee Benefit Plans Administrative Committee (as appointed by the Employee Benefits Advisory Committee of the Company) is the named fiduciary responsible for the general operation and administration of the Plan (but not management or control of Plan assets), and the Employee Benefit Plans Investment Committee (as appointed by the Employee Benefits Advisory Committee of the Company) is the named investment fiduciary, but is not directly responsible for the management and control of the Plan assets.  The Employee Benefits Advisory Committee acts on behalf of the Company as the Plan sponsor, as defined by ERISA.  Fidelity Investments Institutional Operations Company (Fidelity) provides recordkeeping services with respect to the Plan.
 
Employee Contributions
 
The Plan allows for combined pre-tax and after-tax contributions by eligible employees in whole percentages of up to 50% of their eligible earnings, as defined by the Plan.  Pre-tax contributions are subject to limitations under the Code.  Any participant who has attained age 50 by the end of the Plan year may make catch-up contributions in accordance with Code Section 414(v).  Effective May 15, 2008, NextEra Energy Maine, LLC, formerly FPL Energy Maine, Inc. (NextEra Energy Maine) bargaining unit employees can elect to contribute up to a combined pretax and after tax maximum of 50% of their eligible earnings.  Prior to May 15, 2008, NextEra Energy Maine bargaining unit employees could elect to contribute up to a combined pretax and after tax maximum of 20% of their eligible earnings.  Effective January 1, 2008, NextEra Energy Point Beach bargaining unit eligible employees (Eligible Employee) hired or rehired after January 1, 2008 shall be deemed to have elected to make a pretax contribution of 3% in the Plan unless such Eligible Employee otherwise affirmatively revokes or modifies his or her pretax election within 60 days of his or her date of hire.  An Eligible Employee hired prior to January 1, 2008 but who does not have a pretax contribution election in effect on January 1, 2008 shall be deemed to have elected to make a pretax contribution of 3% in the Plan unless such Eligible Employee otherwise affirmatively revokes or modifies his or her pretax contribution within 60 days of January 1, 2008.  As of December 31, 2008, Participants could elect to invest in any combination of the 23 different investment options offered under the Plan.  Participants may change their investment elections daily, subject to Fidelity’s excessive trading policy and the Plan's limitations on investments in Company Stock.
 
Employer Contributions
 
The table below presents the employer contribution formula for the various Participant groups covered by the Plan.
 
Participant Group
Benefit
 
FPL Group and subsidiaries Bargaining Unit Employees, not listed below
 
100% on the first 3% of employee contribution
50% on the next 3% of employee contribution
25% on the next 1% of employee contribution
NextEra Energy Seabrook, LLC (NextEra Energy Seabrook) (formerly known as FPL Energy Seabrook, LLC) Bargaining Unit Employees
100% on the first 3% of employee contribution
NextEra Energy Duane Arnold, LLC (formerly known as FPL Energy Duane Arnold, LLC) Bargaining Unit Employees and NextEra Energy Point Beach Bargaining Unit Employees
100% on the first 3% of employee contribution
50% on the next 2% of employee contribution
NextEra Energy Point Beach Bargaining Unit Employees represented by IBEW 2150
100% on the first 1% of employee contribution
50% on the next 6% of employee contribution
 
Company matching contributions are made in the form of Company Stock through allocation of shares held in suspense in the Leveraged ESOP Account.  The Company makes cash contributions for the difference between the dividends on the shares acquired by the Leveraged ESOP Account and the required principal and interest payments on Acquisition Indebtedness.  During 2008, the Plan was allocated a Company cash contribution of $672,238 (see Note 3).  Contributions are subject to certain limitations.
 
Forfeitures
 
Forfeitures of non-vested Company matching contributions due to termination of employment may be used to restore amounts previously forfeited, to reduce the amount of future Company matching contributions to the Plan or may be applied to administrative expenses.  At December 31, 2008 and 2007, the balance of the forfeiture account was $304,284 and $325,927, respectively.  Forfeitures applied to administrative fees in 2008 totaled $106,530.
 
Vesting
 
Participants are immediately 100% vested in employee contributions.  For bargaining unit employees of NextEra Energy Maine hired prior to May 15, 2008, employer contributions are fully vested upon attaining six months of service.  For bargaining unit employees of NextEra Energy Seabrook and NextEra Energy Point Beach other than employees formerly in IBEW 2150, employer contributions are fully vested immediately after attaining one month of service.  For bargaining unit employees of NextEra Energy Point Beach formerly in IBEW 2150, employer contributions are fully vested after attaining one year of service.  For bargaining unit employees of NextEra Energy Duane Arnold, LLC existing on the date of acquisition of the Duane Arnold Energy Center (January 27, 2006), employer contributions are fully vested.  For all bargaining unit employees of NextEra Energy Point Beach existing on the date of acquisition of the Point Beach Nuclear Plant (September 28, 2007), employer contributions are fully vested.  All other bargaining unit employees vest at a rate of 20% each year of service and are fully vested upon a Participant attaining five years of service.  Under certain circumstances, a bargaining unit employee may also receive vesting credit for prior years of service with the Company or any of its subsidiaries.
 
Participant Loans
 
Each Participant may borrow from his or her account a minimum of $1,000 up to a maximum of $50,000 or 50% of the vested value of the account (reduced by prior loans), whichever is less.  The vested portion of a Participant’s account will be pledged as security for the loan.  The annual rate of interest on Participant loans is fixed and takes into account the prime rate at the time of origination of the loan.  The interest rate for Participant loans is fixed and ranged from 4.00% to 9.75% for loans outstanding at December 31, 2008.  The maturity dates for loans outstanding at December 31, 2008 ranged from 2009 through 2015.
 
Benefit Payments and Withdrawals
 
Withdrawals by Participants from their accounts during their employment are permitted with certain penalties and restrictions.  The penalties may limit a Participant's contributions to the Plan for varying periods following a withdrawal.  Upon termination from employment, Participants are eligible to receive a distribution of the full value of their vested account balance.  Terminated Participants can elect to receive a full payment, partial payments or installments over a period of up to ten years.
 
Transfers to (from) the Plan generally represent net transfers between the Plan and the Non-Bargaining Plan as well as transfers into the Plan resulting from plan mergers.  The majority of transfers arise as a result of Participants transferring between bargaining unit and non-bargaining unit positions while employed by FPL Group and its affiliated companies.
 
Administrative Expenses
 
The Company pays a portion of the administrative expenses of the Plan.  All other expenses are paid directly by the Plan or through forfeitures or through revenue sharing that the Plan receives either directly or indirectly from certain of the Plan's investment options.  Any fees paid directly by the Company are not included in the financial statements.
 
Plan Termination
 
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA.  In the event of Plan termination, Participants will become 100% vested in their accounts.
 
Subsequent Events
 
Effective January 1, 2009, bargaining unit employees of NextEra Energy Seabrook hired on or after January 1, 2004 will receive the company matching contribution as follows:
 
Participant Group
Benefit
NextEra Energy Seabrook
100% on the first 3% of employee contribution
50% on the next 3% of employee contribution
25% on the next 1% of employee contribution
 
Bargaining unit employees of NextEra Energy Seabrook hired on or after January 1, 2009 will vest at a rate of 20% each year of service and are fully vested upon a Participant attaining five years of service.
 
2.  Summary of Significant Accounting Policies
 
Basis of Accounting
 
The financial statements of the Plan are prepared under the accrual basis of accounting in conformity with U.S. generally accepted accounting principles.  Investment income and interest income on loans to Participants are recognized when earned.  Dividends are recorded on the ex-dividend date.  Distributions to Participants are recorded when paid.
 
New Accounting Pronouncements
 
The Fair Value Option for Financial Assets and Financial Liabilities - In February 2007, the Financial Accounting Standards Board (FASB) issued Financial Accounting Standards No. (FAS) 159,"The Fair Value Option for Financial Assets and Financial Liabilities".  The standard provides reporting entities with an option to report selected financial assets and liabilities at fair value and establishes presentation and disclosure requirements designed to facilitate comparisons between reporting entities that choose different measurement attributes for similar types of assets and liabilities.  The Plan did not elect the fair value option for any financial assets or financial liabilities as of January 1, 2008.
 
Fair Value Measurements - In April 2009, the FASB issued FASB Staff Position (FSP) FAS 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (FSP FAS 157-4).  FSP FAS 157-4 provides additional guidance for estimating fair value in accordance with FAS 157, “Fair Value Measurements” (FAS 157), when the volume and level of activity for the asset or liability have significantly decreased.  It also includes guidance on identifying circumstances that indicate a transaction is not orderly.  The FSP also requires increased disclosures.  This FSP is effective for annual reporting periods after June 15, 2009, and shall be applied prospectively.  The adoption of FSP FAS 157-4 is not expected to have a material effect on the Plan’s financial statements.
 
Use of Estimates
 
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein, and disclosure of contingent assets and liabilities.  Actual results could differ from those estimates.
 
Investment Valuation and Income Recognition
 
Effective January 1, 2008 the Plan adopted FAS 157 which clarifies how to measure fair value and requires expanded fair value measurement disclosures.  The standard emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and sets out a fair value hierarchy intended to disclose information about the relative reliability of fair value measurements, with the highest priority being quoted prices in active markets for identical assets and liabilities.  FAS 157 was effective January 1, 2008 for financial assets and liabilities and any other fair value measurements made on a recurring basis and on January 1, 2009 for non-financial assets and liabilities that are not remeasured on a recurring basis.  The adoption of the recognition provisions of FAS 157 did not have a material effect on the Plan’s financial statements.
 
In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of fair value hierarchy.  The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.
 
The fair value of the Plan’s interest in the Master Trust is based on the beginning of year value of the Plan’s interest in the Master Trust plus actual contributions and allocated investment income less actual distributions and expenses. The underlying investments of the Master Trust are valued at fair value.
 
The following reflect the valuation methodologies and inputs used to determine the fair value of the investments held by the Master Trust.  Investments in shares of registered investment companies (mutual funds) are valued at quoted market prices, which represent the net asset value of shares held by the Plan at year end.  Investments in shares of money market mutual funds are stated at the net asset value of shares held by the Plan at year-end.  Company Stock and other common stock are valued at their quoted market price. Participation units of common collective trust funds are stated at their quoted redemption value on the last business day of the Plan year as reported by the investment managers.
 
The FPL Managed Income Fund holds synthetic guaranteed investment contracts (see Note 6 – FPL Managed Income Fund) with banks and insurance companies in order to provide Participants with stable, fixed-rate return of investment and protection of
principal from changes in market interest rates. Wrapper contracts provide the FPL Managed Income Fund with the ability to use contract value accounting to maintain a constant $1 unit price. Wrapper contracts also provide for the payment of Participant- directed withdrawals and exchanges at contract value (principal and interest accrued to date) during the term of the wrapper contracts. However, withdrawals prompted by certain events (e.g., layoffs, early retirement windows, spin-offs, sale of a division, facility closings, plan terminations, partial plan terminations, changes in law or regulation, etc.) may be paid at market value which may be less than contract value. The FPL Managed Income Fund is valued at estimated fair value based on the fair value of the underlying investments of the contracts, primarily debt securities, and the fair value of the wrapper contracts. Debt, asset-backed and mortgage-backed securities are valued at their most recent bid prices (sales prices if their principal market is an exchange) in the principal market in which such securities are traded, as determined by recognized dealers in such securities, or are valued on the basis of information provided by a pricing service.  Investments in wrapper contracts are valued at fair value using a discounted cash flow model which considers recent fee bids as determined by recognized dealers, discount rate, and the duration of the underlying portfolio of securities. For 2008 and 2007, the fair value of the wrapper contracts was not material. The contracts are unallocated in nature and are fully benefit-responsive.  Therefore, net assets available for benefits reflects the Plan’s interest in the contract value of the FPL Managed Income Fund because the Plan’s allocable share of the difference between fair value and contract value for this investment is presented as a separate adjustment in the statement of net assets available for benefits. Contract value represents cost plus contributions made under the contracts plus interest at the contract rates less withdrawals and administrative expenses. If the funds in the guaranteed investment contracts are needed for benefit payments prior to contract maturity, they may be withdrawn without penalty.
 
Participant loans are valued at their outstanding balances at year-end, which approximates fair value.
 
Investment securities, in general, are exposed to various risks, such as interest rate, credit, liquidity and overall market volatility, which could result in changes in the value of such securities. Due to the level of risk associated with certain types of investment securities, it is at least reasonably possible that changes in the values of the investment securities will occur in the near term and that such changes could 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.
 
Purchases and sales of investment securities are recorded on the trade date. Gains or losses on sales of investment securities are determined using the average cost method of the securities. The carrying amounts of securities held in Participant accounts are adjusted daily; securities held in the Leveraged ESOP Account are adjusted daily.  Unrealized appreciation or depreciation is recorded to recognize changes in market value.
 
3.  Leveraged Employee Stock Ownership Plan (Nonparticipant-Directed Unallocated)
 
The Plan’s Leveraged ESOP provisions correspond to the Plan’s interest in the Leveraged ESOP Account of the Master Trust.  The Leveraged ESOP Account of the Master Trust holds unallocated Company Stock that was purchased by the Master Trust on behalf of the Plan and the Non-Bargaining Plan and the associated Acquisition Indebtedness.  The Leveraged ESOP Account is allocated to each of the Master Trust Plans for financial reporting purposes proportionately based on each Master Trust Plan's relative end-of-year net assets excluding the net assets of the Leveraged ESOP Account.  The Plan's allocation of Company Stock held in the Leveraged ESOP Account, accrued interest receivable, Acquisition Indebtedness and interest payable have been reflected in the statements of net assets available for benefits, but the entire balance of the Leveraged ESOP Account reflects amounts which are not yet allocated to Participant accounts.  Company Stock will be released from the Leveraged ESOP Account and allocated to accounts of Participants at the fair value of the shares on the date of the allocation in satisfaction of part or all of the Company's matching contribution requirement under the Plan as the Acquisition Indebtedness is repaid.  The Acquisition Indebtedness will be repaid from dividends on the shares held by the Leveraged ESOP Account, as well as from cash contributions from FPL Group.  The net effect of a change in the allocation percentage from year to year is reported as a reallocation of the Leveraged ESOP Account.  The value of the shares allocated to accounts of Participants under the Plan is not affected by these allocations.
 
Condensed financial information for the Leveraged ESOP Account is presented below, indicating the approximate allocations made to each Master Trust Plan.  The net assets information below has been allocated to the Plan but not to the Plan Participants.  The effect of 2008 Leveraged ESOP activity on net assets has been allocated to the Plan but not to the Plan Participants and is included in the financial statements of each Master Trust Plan.
 
   
December 31, 2008
 
   
Total
Leveraged ESOP
Account
   
Non-Bargaining Plan
   
Plan
 
                   
Allocation percentage
    100 %     71.94 %     28.06 %
                         
Accrued interest receivable
  $ 761     $ 547     $ 214  
Company Stock
    348,443,146       250,663,727       97,779,419  
Total assets
    348,443,907       250,664,274       97,779,633  
                         
Interest payable
    578,106       415,879       162,227  
Acquisition Indebtedness
    178,980,270       128,755,185       50,225,085  
Total liabilities
    179,558,376       129,171,064       50,387,312  
                         
Net assets at December 31, 2008
  $ 168,885,531     $ 121,493,210     $ 47,392,321  
 
 
   
December 31, 2007
 
   
Total
Leveraged ESOP
Account
   
Non-
Bargaining
Plan
   
Plan
 
                   
Allocation percentage
    100 %     71.86 %     28.14 %
                         
Accrued interest receivable
  $ 1,757     $ 1,263     $ 494  
Company Stock
    533,331,403       383,238,613       150,092,790  
Total assets
    533,333,160       383,239,876       150,093,284  
                         
Interest payable
    615,314       442,149       173,165  
Acquisition Indebtedness
    190,499,540       136,888,207       53,611,333  
Total liabilities
    191,114,854       137,330,356       53,784,498  
                         
Net assets at December 31, 2007
  $ 342,218,306     $ 245,909,520     $ 96,308,786  
 


 
   
Year Ended December 31, 2008
 
   
Total
Leveraged ESOP
Account
   
 
Non-Bargaining Plan
   
Plan
 
                   
Contributions received from employer
  $ 2,395,561     $ 1,723,323     $ 672,238  
Interest income
    4,352       3,131       1,221  
Dividends
    13,255,147       9,535,514       3,719,633  
Net depreciation in fair value of Company Stock
    (130,812,974 )     (94,104,499 )     (36,708,475 )
Total
    (115,157,914 )     (82,842,531 )     (32,315,383 )
                         
Interest expense
    (17,935,560 )     (12,902,519 )     (5,033,041 )
                         
Net loss
    (133,093,474 )     (95,745,050 )     (37,348,424 )
Allocation of shares to Master Trust Plans
    (40,239,301 )     (29,163,086 )     (11,076,215 )
Reallocation of Leveraged ESOP
    -       491,826       (491,826 )
Effect of current year Leveraged ESOP activity on net assets
    (173,332,775 )     (124,416,310 )     (48,916,465 )
Net assets at December 31, 2007
    342,218,306       245,909,520       96,308,786  
Net assets at December 31, 2008
  $ 168,885,531     $ 121,493,210     $ 47,392,321  
 
Acquisition Indebtedness
 
In December 1990, the Master Trust, which holds assets for the Master Trust Plans, borrowed $360 million from FPL Group Capital to purchase approximately 24.8 million shares of Company Stock.  The Acquisition Indebtedness is currently scheduled to mature in 2017, bears interest at a fixed rate of 9.69% per annum and is to be repaid using dividends received on both Company Stock held by the Leveraged ESOP Account and ESOP shares allocated to accounts of participants under the Master Trust Plans, together with cash contributions from FPL Group.  For dividends on shares allocated to participant accounts used to repay the loan, additional shares equal in value to those dividends are allocated to accounts of participants under the Master Trust Plans.  In 2008, dividends received from both shares held by the Leveraged ESOP Account and shares allocated to accounts of participants under the Master Trust Plans totaled $13,255,147 and $13,835,318, respectively.  Cash contributed in 2008 by FPL Group for the debt service shortfall totaled $2,395,561.
 
The unallocated shares of Company Stock acquired with the proceeds of the Acquisition Indebtedness are collateral for the Acquisition Indebtedness.  As debt payments are made, a percentage of Company Stock is released from collateral and becomes available to satisfy Company matching contributions, as well as to replace dividends on ESOP shares allocated to participant accounts under the Master Trust Plans used to repay the Acquisition Indebtedness.  The Company typically makes optional prepayments of the Acquisition Indebtedness when the number of shares required to provide Company matching contributions and to restore dividends on allocated Leveraged ESOP shares used to repay the Acquisition Indebtedness exceeds the shares released from collateral resulting from scheduled debt payments.  In 2008, the lender and the Company executed an agreement which permitted the release of Leveraged ESOP shares prior to the receipt of certain optional debt prepayments, provided that the aggregate amount due was paid in February 2009.  Such aggregate amount totaled $5,857,847 and was paid in February 2009.  During 2008, 945,396 shares of Company Stock were released from collateral for the Acquisition Indebtedness.  The LESOP liability is valued at cost which approximates fair value.
 
Scheduled principal repayment by the Master Trust of Acquisition Indebtedness is as follows:
 
Year
 
Repayment Amount
2009
   
$
18,497,535
 
2010
   
$
14,451,000
 
2011
   
$
16,333,000
 
2012
   
$
18,719,000
 
2013
   
$
21,314,200
 
2014-2017
   
$
89,665,535
 
 
4.  Parties-In-Interest Transactions
 
Parties-in-interest are defined under Department of Labor regulations as any fiduciary of the plan, any party rendering service to the plan, the employer, and certain others.
 
Dividend income earned by the Plan includes dividends on Company Stock.  Dividends on shares held in the Leveraged ESOP Account and the FPL Group Stock LESOP Fund (see Note 6 – FPL Group Stock LESOP Fund) were used to repay the Acquisition Indebtedness.  Certain dividends on shares held in Participants' accounts are reinvested in Company Stock for the benefit of the Plan’s Participants pursuant to FPL Group's Dividend Reinvestment and Common Share Purchase Plan in which the Trustee participates.
 
At December 31, 2008 and 2007, the number of shares of Company Stock held in Participant accounts totaled 4,194,667 and 4,365,585, respectively, with a market value of $211,117,603 and $295,899,321, respectively.  During 2008, dividends on shares of Company Stock held in Participants’ accounts totaled $7,377,819  During 2008, the Plan’s proportionate share of dividends on shares of Company Stock held in the Leveraged ESOP Account totaled $3,719,633.
 
Certain Plan investments are managed by an affiliate of the Trustee and, therefore, these transactions qualify as party-in-interest transactions.
 
5.  Investments/Interest in Master Trust
 
All of the Plan’s assets and liabilities are commingled with the assets of the Non-Bargaining Plan in the Master Trust.
 
The Plan’s relative share of ownership of the total net assets of the Master Trust was approximately 28.1% and approximately 26.0% at December 31, 2008 and 2007, respectively.  The Plan’s relative share of ownership varies in each of the underlying investments of the Master Trust, excluding the Leveraged ESOP Account (see Note 3), based on Participants’ investment elections.  Income from the Master Trust is allocated to the individual Master Trust Plans based on each Master Trust Plan’s interest in the underlying investments of the Master Trust.
 
The following table presents net assets held in the Master Trust as of December 31, 2008 and 2007, including fair value of investments held in the Master Trust, and the contract value adjustment, as applicable, pertaining to the synthetic guaranteed investment contracts held in the Master Trust.
 
   
December 31,
 
   
2008
   
2007
 
Investments at fair value
           
Registered investment companies
  $ 763,958,141     $ 1,079,394,426  
Common collective trusts
    138,582,747       215,178,109  
Common stocks
    1,127,230,204       1,607,139,729  
U.S. Treasury notes
    179,046,325       69,947,904  
Government agency notes
    24,249,971       52,362,871  
Asset-backed securities
    46,587,772       35,908,762  
Mortgage-backed securities
    28,591,062       96,194,808  
Corporate bonds
    20,322,031       35,110,916  
Participant loans
    49,464,042       46,748,825  
Total investments at fair value
    2,378,032,295       3,237,986,350  
Accrued interest receivable
    410,686       1,666,962  
Total assets
    2,378,442,981       3,239,653,312  
                 
Liabilities
               
Leveraged ESOP note payable
    178,980,270       190,499,540  
Interest payable – Leveraged ESOP
    578,106       615,314  
Other payables
    811,942       3,766,676  
Total liabilities
    180,370,318       194,881,530  
Net assets reflecting all investments at fair value
    2,198,072,663       3,044,771,782  
Adjustment from fair value to contract value for fully benefit-responsive contracts
    (6,490,267 )     (1,757,568 )
Net assets
  $ 2,191,582,396     $ 3,043,014,214  
 
Investment income for the Master Trust is as follows:
 
   
Year Ended
December 31, 2008
 
Investment income/(loss)
     
Net depreciation in fair value of investments:
     
Registered investment companies
  $ (351,042,989 )
Common collective trusts
    (66,517,792 )
Common stocks
    (419,476,919 )
Total net depreciation
    (837,037,700 )
Interest and dividends
    82,787,816  
Total investment loss
  $ (754,249,884 )
 
The following table sets forth by level, within the fair value hierarchy, the Master Trust’s assets that are measured at fair value on a recurring basis as of December 31, 2008:
 
   
Fair Value Measurements
At December 31, 2008 using
 
   
Quoted Prices in Active Markets for Identical Assets (Level 1)
   
Significant Other Observable Inputs
(Level 2)
   
Significant Unobservable Inputs
(Level 3)
 
                   
Participant-directed investments
  $ 956,901,037     $ 619,687,030     $ 50,913,018i  
                         
Nonparticipant-directed investments (Leveraged ESOP)
  $ 747,316,851     $ 3,214,359     $ -  
 
i.  The majority of the balance represents participant loans.
 
The table below presents a reconciliation of all investments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2008, including the reporting classifications for the applicable gains and losses included in the statement of changes in net assets available for benefits:
 
   
Fair Value Measurements Using Significant Unobservable Inputs
(Level 3)
 
Beginning balance, January 1, 2008
  $ 46,844,511  
Net realized and unrealized depreciation
    (200,301 )
Sales
    (172,036 )
Net loan withdrawals
    2,715,217  
Transfers in Level 3
    1,725,627  
Ending balance, December 31, 2008
  $ 50,913,018  
 


The Plan’s portion of interest in the total participant-directed assets of the Master Trust is as follows:
 
Assets:
 
December 31,
   
Mutual Funds:
 
2008
   
2007
Brandywine Funds, Inc.
  $ 18,751,142     $ 46,391,376    
Fidelity Diversified International Fund
    24,967,782       64,489,529    
Fidelity Low-priced Stock Fund
    7,073,875       12,983,605    
Fidelity Real Estate Investment Portfolio
    6,858,230       11,933,566    
Fidelity Retirement Government Money Market Portfolio
    25,100,389       21,432,446    
Legg Mason Value Trust FI Class
    7,751,984       20,713,253    
PIMCO Total Return Fund Administrative Class
    15,451,828       10,992,622    
Royce Premier Fund Investor Class
    18,413,831       27,336,163    
T. Rowe Price Equity Income Fund
    10,075,225       21,979,626    
Vanguard Target Retirement 2005 Fund
    2,213,826       4,269,573    
Vanguard Target Retirement 2015 Fund
    9,601,281       10,912,979    
Vanguard Target Retirement 2025 Fund
    4,345,239       5,667,463    
Vanguard Target Retirement 2035 Fund
    15,546,532       28,502,532    
Vanguard Target Retirement 2045 Fund
    2,526,108       3,890,838    
Vanguard Target Retirement Income Fund
    3,384,387       4,459,890    
Total mutual funds
    172,061,659       295,955,461    
                   
Common Collective Trusts:
                 
BGI Equity Index Fund V
    15,683,126       28,675,477    
BGI MSCI ACWI ex-US Index Fund V
    3,959,638       9,078,556    
BGI Russell 2000 Value Index Fund V
    3,449,739       6,210,138    
BGI US Debt Index Fund V
    5,119,333       5,318,652    
BGI US Equity Market Fund V
    1,340,181       2,315,085    
   Total common collective trusts
    29,552,017       51,597,908    
                   
FPL Group Stock Fund
    109,959,939       159,716,590    
FPL Managed Income Fund
    123,319,374       75,002,300    
Large Growth Fund
    12,145,292       20,579,973    
Participant loans
    19,284,995       17,776,380    
                   
Total assets, at fair value
  $ 466,323,276     $ 620,628,612    
 
6.  Pooled Funds of the Master Trust
 
Within the Master Trust are certain pooled funds in which the Plan and the Non-Bargaining Plan participate. These pooled funds include the Leveraged ESOP described in Note 3, as well as the FPL Managed Income Fund, the FPL Group Stock Fund, the FPL US Large Cap Growth Fund, and the FPL Group Stock LESOP Fund described below.  The Master Trust Plans hold undivided interests in the assets and liabilities of these pooled funds.  The income and expenses of each pooled fund, other than the Leveraged ESOP, are allocated between the Master Trust Plans in proportion to their participation percentages in each of the funds.
 
FPL Managed Income Fund
 
The value of the Plan’s interest in the FPL Managed Income Fund included in the statements of net assets available for benefits represents approximately 31.8% of the net assets of that fund at December 31, 2008 and approximately 25.1% at December 31, 2007.  The wrapper contracts held in the FPL Managed Income Fund are allocated to the Plan and the Non-Bargaining Plan based on each Master Trust Plan’s proportionate share of participation in the FPL Managed Income Fund.  The FPL Managed Income Fund’s net assets available for benefits consisted of the following:
 
   
December 31,
 
   
2008
   
2007
 
             
U.S. Treasury notes
  $ 179,046,325     $ 69,947,904  
Government agency notes
    24,249,971       52,362,871  
Asset-backed securities
    46,587,772       35,908,762  
Mortgage-backed securities
    28,591,062       96,194,808  
Corporate bonds
    20,322,031       35,110,916  
Wrapper contracts
    -       -  
Other receivables
    94,195       359,221  
Registered investment companies
    89,658,290       12,829,122  
Total assets
    388,549,646       302,713,604  
Other payables
    241,357       3,185,666  
                 
Net assets at fair value
    388,308,289       299,527,938  
                 
Adjustment from fair value to contract value to fully benefit-responsive investment contracts
    (6,490,267 )     (1,757,568 )
Net assets at contract value
  $ 381,818,022     $ 297,770,370  
 
The net investment gain in the FPL Managed Income Fund for the year ended December 31, 2008, was comprised of interest income in the amount of $13,811,658.
 
The FPL Managed Income Fund has entered into wrapper contracts with various insurance companies and financial institutions.  The contracts are fully benefit-responsive and are included in the financial statements at fair value.  There are no reserves against contract values (which represents contributions made under the contract, plus earnings, less withdrawals and administrative expenses) for credit risk of the contract issuer or otherwise.  Withdrawals prompted by an employer-initiated event, such as withdrawals resulting from the sale of a division of the Company, a corporate layoff or the addition of Plan investment options, for example, may be paid at the contract's market value, which may be less than book value. Currently, management believes that the occurrence of an event that would cause the Plan to transact at less than contract value is not probable.  A wrap issuer may terminate a wrapper contract at any time; however, if the market value is less than the contract value, the wrap issuer can either hold the contract until the market value and contract value are equal or make up the difference between the two.  At December 31, 2008, the Plan’s portion of the contract value and fair value of investment contracts were $92,784,410 and $94,845,596 respectively.  At December 31, 2007, the Plan’s portion of the contract value and fair value of investment contracts were $71,351,108 and $71,787,688, respectively.  The average yield for the portfolio of investment contracts based on annualized earnings was 3.30% and 4.80% for 2008 and 2007, respectively.  The average yield based on interest rate credited to participants at December 31, 2008 and 2007 was 3.14% and 4.34%, respectively.  The crediting interest rate is based on an agreed-upon formula with the issuers, but cannot be less than zero.
 
FPL Group Stock Fund
 
The value of the Plan’s interest in the FPL Group Stock Fund included in the statements of net assets available for benefits represents approximately 33.2% of the net assets of that fund at December 31, 2008 and approximately 34.0% at December 31, 2007.  The FPL Group Stock Fund’s net assets consisted of the following:
 
   
December 31,
 
   
2008
   
2007
 
Assets
           
Investments, at fair value:
           
Company Stock
  $ 327,413,925     $ 462,617,398  
Registered investment companies
    1,750,706       4,092,927  
Cash
    2,664,086       2,605,870  
Total investments
    331,828,717       469,316,195  
                 
Receivables:
               
Income
    -       14,345  
Other
    5,062       106,060  
Total receivables
    5,062       120,405  
Total assets
    331,833,779       469,436,600  
                 
Other liabilities
    214,159       38,051  
Net assets
  $ 331,619,620     $ 469,398,549  
 
The net investment loss in the FPL Group Stock Fund for the year ended December 31, 2008, was comprised of interest and dividend income in the amount of $10,862,969 and net realized and unrealized depreciation in the fair value of Company Stock in the amount of $117,052,770.
 
FPL US Large Cap Growth Fund
 
The value of the Plan’s interest in the FPL US Large Cap Growth Fund included in the statement of net assets available for benefits represents approximately 22.9% of the net assets of that fund at December 31, 2008 and 23.8% at December 31, 2007.  The FPL US Large Cap Growth Fund’s net assets consisted of the following:
 
   
December 31,
 
   
2008
   
2007
 
Assets
           
Investments, at fair value:
           
Common Stocks
  $ 52,499,428     $ 83,572,294  
Registered investment companies
    510,196       3,043,195  
Total investments
    53,009,624       86,615,489  
                 
Receivables:
               
Income
    -       68,166  
Other
    304,770       195,602  
Total receivables
    304,770       263,768  
Total assets
    53,314,394       86,879,257  
                 
Other liabilities
    208,772       430,946  
Net assets
  $ 53,105,622     $ 86,448,311  
 
The net investment loss in the FPL US Large Cap Growth Fund for the year ended December 31, 2008, was comprised of net realized and unrealized depreciation in the fair value of common stocks in the amount of $35,764,315.
 
FPL Group Stock LESOP Fund (Nonparticipant-Directed)
 
The value of the Plan’s interest in the FPL Group Stock LESOP Fund included in the statements of net assets available for benefits represents approximately 25.7% of the net assets of that fund at December 31, 2008 and approximately 26.2% at December 31, 2007.  The FPL Group Stock LESOP Fund’s net assets consisted of the following:
 
   
December 31,
 
   
2008
   
2007
 
Assets
           
Investments, at fair value:
           
Company Stock at fair value based on quoted market price
  $ 398,873,705     $ 527,618,634  
Registered investment companies
    3,214,359       4,297,400  
Total investments
    402,088,064       531,916,034  
                 
Receivables:
               
Income
    -       19,024  
Other
    5,898       1,090,569  
Total receivables
    5,898       1,109,593  
Total assets
    402,093,962       533,025,627  
                 
Other liabilities
    147,654       111,391  
Net assets
  $ 401,946,308     $ 532,914,236  
 
The FPL Group Stock LESOP Fund's changes in net assets available for benefits consisted of the following at December 31, 2008:
 
Additions
     
Allocation of Leveraged ESOP shares
  $ 40,239,301  
         
Earnings on investments:
       
Interest
    126,018  
Dividends
    13,835,318  
Net depreciation in fair value of Company Stock
    (135,972,653 )
Total loss on investments
    (122,011,317 )
Total additions
    (81,772,016 )
         
Deductions:
       
Benefits paid to participants or beneficiaries
    26,926,278  
Account maintenance fees
    36,714  
Total deductions
    26,962,992  
         
Net decrease
    (108,735,008 )
         
Transfers:
       
Transfers into the fund
    15,428,690  
Transfers out of the fund
    (37,661,610 )
Net transfers
    (22,232,920 )
         
Net assets at December 31, 2007
    532,914,236  
         
Net assets at December 31, 2008
  $ 401,946,308  
 
7.  Income Taxes
 
In August 2001, the Company received from the Internal Revenue Service (IRS) a favorable determination that the Plan, as amended and restated effective December 1, 2000, met the requirements of Section 401 of the Code.  The Plan has been amended and restated since receiving the determination letter and a new determination letter request will be filed prior to the expiration of the Plan's Remedial Amendment Period on January 31, 2010 under the IRS’s new determination letter program.  The Company and the Plan administrator believe that the Plan is currently designed and operated in material compliance with the applicable requirements of the Code and that the Plan and related Master Trust continue to be tax-exempt.  The Master Trust established under the Plan will generally be exempt from federal income taxes under Section 501(a) of the Code; Company contributions paid to the Master Trust under the Plan will be allowable federal income tax deductions of the Company subject to the conditions and limitations of Section 404 of the Code; and the Plan meets the requirements of Section 401(k) of the Code allowing Pretax Contributions to be exempt from federal income tax at the time such contributions are made, provided that in operation the Plan and Master Trust meet the applicable provisions of the Code.  In addition, FPL Group will be able to claim an income tax deduction for dividends used to repay the Acquisition Indebtedness and for dividends on Company Stock distributed directly to Participants.  Participants are given the option to receive dividend distributions in cash in compliance with 2002 tax law changes; all dividends earned by Participants are deductible by FPL Group.
 
Company matching contributions to the Plan on a Participant's behalf, the Participant's Pretax Contributions, and the earnings thereon generally are not taxable to the Participant until such Company matching contributions, Pretax Contributions, and earnings thereon are distributed or withdrawn.  A loan from a Participant's account generally will not represent a taxable distribution if the loan is repaid in a timely manner and does not exceed certain limitations.
 
8.  Reconciliation of Financial Statements to Form 5500
 
The following is a reconciliation of net assets available for benefits included in the financial statements to Form 5500:
 
 
December 31,
 
 
2008
 
2007
 
Net assets available for benefits per the financial statements
  $ 614,996,596     $ 856,380,869  
Adjustment to fair value from contract value for fully benefit-responsive investment contracts
    2,061,186       436,580  
Net assets available for benefits per Form 5500
  $ 617,057,782     $ 856,817,449  
 
The following is a reconciliation of net change in net assets available for benefits per the financial statements to the Form 5500:
 
   
December 31,
2008
 
Net decrease prior to transfer per the financial statements
 
$
(241,384,273
)
Plus:  Current year change in adjustment to fair value for investments in a fully benefit-responsive contract
   
2,061,186
 
Less:  Prior year change in adjustment to fair value for investments in a fully benefit-responsive contract
   
(436,580
)
Net income per the Form 5500
 
$
(239,759,667
)
 
In accordance with FSP AAG INV-1 and Statement of Position 94-4-1, "Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution, Health and Welfare and Pension Plans", the Plan presented the investments for fully benefit-responsive investment contracts at fair value on the statement of net assets available for benefits with a reconciling item adjusting back to contract value, which is not required on Form 5500.
 

 

 
FPL GROUP BARGAINING UNIT EMPLOYEE RETIREMENT SAVINGS PLAN
EIN: 59-2449419, Plan #003
Schedule H, Line 4I - Schedule of Assets (Held at end of year)
December 31, 2008
 
 
Participant-Directed Investments:
 
 
 
 
 
(a)
 
 
 
(b)
Identity of issue, borrower, lessor or
similar party
 
(c)
Units/Shares
Description of investment
including maturity date,
rate of interest, collateral,
par or maturity value
 
 
 
 
 
(e)
Current Value
*
Participant loans
 
4.00%
-
9.75%
 
$
19,284,995
     
Maturing through 2015
     
*Party-in-interest
         
 

 
 
 
 

 
SIGNATURE
 
 
The Plan.  Pursuant to the requirements of the Securities Exchange Act of 1934, the Employee Benefit Plans Administrative Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 


Date:  June 19, 2009
FPL Group Bargaining Unit Employee Retirement Savings Plan
 
 
                             (Name of Plan)
 



 
 
By:
JAMES POPPELL
 
 
James Poppell
Chairman of the Employee Benefit Plans Administrative Committee
 
 
 
 
 
 
 
 
 
 
 
EXHIBIT INDEX
 
 
Exhibit
Number
 
 
Description
 
23(a)
 
Consent of Crowe Horwath LLP