EX-10.2






Business Partner Severance Policy

June 5, 2017




Policy Information




	 	 	 
	Document Title:

	 	Business Partner Severance Policy
	Content Owner:

	 	Director of Human Resources and

Inclusion (HRI)
	Certification of Compliance Contact:

	 	N/A
	Policy Category:

	 	Management Policy
	FHLBank-Level Approver:

	 	President and Chief Executive Officer

(CEO)
	Board-Level Approver:

	 	N/A
	Review Frequency:

	 	Every Two Years
	Initial Effective Date:

	 	6/19/2015
	Last CEO Approval Date:

	 	06/05/2017
	Next Review Date:

	 	06/2019











1






Introduction



This Management Policy establishes the process for providing severance benefits to eligible
employees (referred to as business partners).



Purpose



The purpose of this Policy is to define the severance process to ensure effective and consistent
support for business partners terminating employment with FHLBank.



Scope



This Policy provides the process and framework for providing severance benefits.



General Guidelines




	1.	 	Eligibility.





All business partners of FHLBank, except for Executive Incentive Compensation Plan Participants)
are eligible for Severance Pay if FHLBank terminates the business partner’s employment with or
without cause, other than as provided below. The availability or election of early retirement will
not be considered in determining whether a business partner is eligible to receive Severance Pay,
as defined below.



A business partner is not eligible for Severance Pay if:




	a.	 	The business partner voluntarily terminates employment (including termination as a result of
disability or other failure to return from leave or due to death); or






	b.	 	The business partner’s employment is terminated by FHLBank for actions or inactions of the
business partner which FHLBank reasonably concludes constitutes misconduct (misconduct being
defined as a business partner willfully (1) failing to perform the duties of his or her
position or (2) acting against the best interest of FHLBank (in the reasonable opinion of
FHLBank), including, but not limited to, violation of FHLBank policies, insubordination,
dishonesty, breach of trust, disclosure of confidential or proprietary information, violation
of law or commission of an act of moral turpitude, failure to perform the function of his or
her job or to demonstrate adequate efforts to successfully complete a performance plan, job
abandonment, or excessive tardiness or absenteeism).






	2.	 	Amount of Severance Pay.





Provided the other requirements of this Policy are met, and if the business partner timely provides
FHLBank an enforceable release waiving claims against FHLBank, on a form provided by FHLBank (a
Separation Agreement), the business partner shall be eligible to receive Severance Pay equal to the
following amount of the business partner’s final base salary as indicated for the business
partner’s title (titles not specifically listed shall be paid the amount as the next lower ranking
title specifically listed):



	 	 	 
	Senior Vice Presidents & First Vice Presidents

	 	6 Months
	 

	 	 
	All Other Officer Positions

	 	3 Months
	 

	 	 
	Non-Officer Positions with minimum of five years of service

	 	2 Months
	 

	 	 
	Non-Officer Positions with less than five years of service

	 	1 Month
	 

	 	 






Severance Pay includes the following:




	A.	 	Salary Continuation:






For a period of months defined above, the business partner will continue to receive his or her
regular salary, equal to the base salary received as of the separation date. These payments will
be made in accordance with FHLBank’s current payroll cycle and subject to all appropriate
withholding and taxation. These payments will be subject to the business partner’s continued
adherence to the terms and provisions of the Separation Agreement and may be subject to
reduction due to any payments the business partner may owe to FHLBank.




	B.	 	Incentive:






Any incentives to be paid to business partners shall be paid in accordance with the Non-NEO
Executive Incentive Compensation Plan or the Short Term Incentive Plan, as applicable.




	C.	 	Benefit Continuation:






For a period of months defined above, the business partner may elect to participate in FHLBank’s
eligible benefit plans and pay solely the premium as though an active business partner (note
that this premium is subject to possible increase in FHLBank’s sole discretion). These payments
will be deducted from the business partner’s severance benefit payments. FHLBank will pay the
remainder of the COBRA coverage costs. A business partner will not receive any additional
service credit pursuant to the defined benefit plan or the Benefit Equalization Plan as a result
of salary or benefit continuation.




	3.	 	Policy Administration.





The HRI department is responsible for administering this Policy and decisions regarding eligibility
and Severance Pay shall be in the sole discretion of the Director of HRI. This Policy does not give
any business partner, or any person whosoever, the right to be retained in the service of FHLBank,
and all business partners shall remain subject to discharge to the same extent as if this Policy
had never been adopted. This Policy may be changed or ended at any time, with or without prior
notice and for any reason at FHLBank’s sole and absolute discretion.



Exceptions/Violations



Exceptions to this Policy may be approved in writing by the President and CEO.



Policy Review



This Policy shall be reviewed every two years and revised as needed by the Director of HRI.
Following such review, the Policy shall be submitted for review by the Executive Team and approval
by the President and CEO.




2