Exhibit 10.3





Exhibit 10.3



Summary Plan Description





Pentegra

Defined Contribution Plan for Financial Institutions




as adopted by:

Federal Home Loan Bank of Des Moines




	 	 	 
	

	 	PENTEGRA RETIREMENT SERVICES







 


 









 





SUMMARY PLAN DESCRIPTION




for




Federal Home Loan Bank of Des Moines




Des Moines, IA






Pentegra Defined Contribution Plan

for Financial Institutions

108 Corporate Park Drive

White Plains, NY 10604





 


 









 







Important Notice




This Summary contains a summary in English of your plan rights and benefits under the Federal Home
Loan Bank of Des Moines Plan. If you have difficulty understanding any part of this booklet,
contact the plan administrator at his/her office: 515-281-1000.



Aviso Importante




Este Resumen contiene un resumen en inglés de los derechos y beneficios bajo el Plan de Federal
Home Loan Bank of Des Moines. Si tiene dificultad para entender cualquier parte de este folleto,
comuniquese con el administrador del plan en su oficina: 515-281-1000.


 


 









 





Dear Member:



We are pleased to present your Summary Plan Description. This Summary is designed to help you
understand and appreciate the savings plan provided by Federal Home Loan Bank of Des Moines through
the Pentegra Defined Contribution Plan for Financial Institutions (formerly known as the Financial
Institutions Thrift Plan) (the “Plan”).



The Plan is a tax-exempt, trusteed savings plan which was created in 1970. It is administered by a
professional staff under the direction of a Board of Directors (the “Board”) comprised of officers
of the Federal Home Loan Banks and participating financial institutions as well as the Plan’s
President.



The Plan provides an opportunity for you to save and invest on a regular, long-term basis. All
contributions to the Plan (a defined contribution type plan) are paid to the Trustee to be invested
for the benefit of all members. An individual account is maintained for each Member. Under certain
conditions, a Member may make withdrawals or take loans from their account based on its market
value.



The Plan offers federal income tax advantages. You do not pay taxes on employer contributions or
investment income until they are withdrawn. An employer subject to income tax may deduct its
contributions.




This Summary highlights the main features of the Plan. The Plan and Declaration of
Trust contain the governing provisions and should be consulted as official text in all cases. If
there is any conflict between this Summary and the Plan Document, the Plan Document will control.



Finally, please note that wherever the masculine pronoun is used in this Summary, it is intended to
include the feminine pronoun.



Board of Directors,

Pentegra Defined Contribution Plan for

Financial Institutions



 


 









 





SUMMARY OF YOUR BENEFITS




	 	 	 
	ELIGIBILITY

	 	You will be eligible for membership in the Plan on the first day of the month
coinciding with or next following your date of employment. Your employer will
notify you of your right to become a Member when you first become eligible
and will furnish you with an enrollment application.
	 
	 	 
	 

	 	You will be eligible to receive employer contributions on the first day of the
month coinciding with or next following the date you complete one year of
employment.
	 
	 	 
	PLAN SALARY

	 	Plan Salary is defined as your basic salary rate reflecting changes occurring
during the year.
	 
	 	 
	 

	 	In addition, any pre-tax contributions that you make are included in Plan
Salary. Please refer to the “Plan Salary” section of this Summary.
	 
	 	 
	PLAN CONTRIBUTIONS

	 	Employee — You may elect to make a pre-tax and/or after-tax contribution of
1% to 100% (in 1% increments) of Plan Salary. You may also elect all or a
portion of your employee contributions to be designated as Roth elective
deferrals. Unless stated otherwise, Roth elective deferrals will be treated as
elective deferrals for all purposes under the Plan. If you are at least age 50,
you may elect to make catch-up contributions ($5,500 for 2009, indexed).
	 
	 	 
	 

	 	Employer — Your employer will make a contribution based on the amount you
contribute, expressed as the greater of (A) or (B) as follows:
	 
	 	 
	 

	 	(A)
	 
	 	 
	 

	 	(i)    50% during the 2nd and 3rd years of employment

	 
	 	 
	 

	 	(ii)   75% during the 4th and 5th years of employment

	 
	 	 
	 

	 	(iii)  100% upon completion of five or more years of employment.

	 
	 	 
	 

	 	This percentage rate applies to the first 6% of your Plan Salary (see the “Plan
Salary” section of this Summary).
	 
	 	 
	 

	 	(B) The lesser of $75 per month or 2% of your Plan Salary.
	 
	 	 
	VESTING

	 	You will be 100% vested in any employer matching and/or employer
supplemental contributions immediately upon enrollment in the Plan. You are
always 100% vested in any contributions you make to the Plan, including Roth
elective deferrals. In other words, you will not give up any units based on your
own contributions when you terminate employment.
	 
	 	 
	LOANS

	 	You may take a loan from your account and pay your account back with
interest. Please refer to the “Borrowing From Your Account” section of this
Summary to determine how you may take a loan from your account.
	 
	 	 
	NORMAL RETIREMENT

	 	A Member’s 65th birthday.
	AGE
	 	 
	 
	 	 
	WITHDRAWALS

	 	While you are working, you may withdraw all or part of your vested account
balance subject to certain limitations. You may also make withdrawals from
your account after termination of employment.


	 
	 	 
	 

	 	

Please refer to the “Making Withdrawals From Your Account” section of this
Summary to determine if there are any restrictions on employer contributions
on account of a withdrawal.






 


 









 





SUMMARY OF YOUR BENEFITS

CONTINUED




	 	 	 
	DISABILITY

	 	If you are disabled, you will be entitled to the same withdrawal rights as if you
had terminated employment.
	 
	 	 
	DEATH

	 	If you die before the value of your account is paid to you, your beneficiary may
receive the full value of your account or may defer payment within certain
limits. If you are married, your spouse will be your beneficiary unless your
spouse consents in writing to the designation of a different beneficiary.






 


 









 





TABLE OF CONTENTS




	 	 	 	 	 
	Determining Your Eligibility
	 	 	1	 
	• Employee Eligibility
	 	 	1	 
	• Reenrollment
	 	 	1	 
	Making Contributions to the Plan
	 	 	2	 
	• Plan Contributions
	 	 	2	 
	• Allocation of Contributions
	 	 	3	 
	• IRS Nondiscrimination Rules
	 	 	3	 
	• Rollovers
	 	 	4	 
	• Plan Salary
	 	 	4	 
	Investing Your Account
	 	 	5	 
	• Investment of Contributions
	 	 	5	 
	• Valuation of Accounts
	 	 	5	 
	• Reporting to Members
	 	 	5	 
	Vesting
	 	 	6	 
	Making Withdrawals from Your Account
	 	 	7	 
	• While Employed
	 	 	7	 
	• Upon Termination of Employment
	 	 	9	 
	• Upon Disability
	 	 	9	 
	• Upon Death
	 	 	9	 
	Borrowing from Your Account
	 	 	10	 
	• Loans
	 	 	10	 
	Plan Limitations
	 	 	11	 
	Leave of Absence
	 	 	12	 
	Other Information
	 	 	13	 
	• Top Heavy Information
	 	 	13	 
	• Disputed Claims Procedure
	 	 	13	 
	• Qualified Domestic Relations Orders (QDRO’s)
	 	 	13	 
	Members Rights
	 	 	14	 
	• Statement of ERISA Rights
	 	 	14	 
	Plan Information
	 	 	15	 





 


 









 





DETERMINING YOUR ELIGIBILITY




	 	 	 
	Employee Eligibility

	 	You will be eligible for membership in the Plan on the first day of the month
coinciding with or next following your date of employment. Your employer will
notify you of your right to become a Member when you first become eligible and
will furnish you with an enrollment application.
	 
	 	 
	 

	 	You will be eligible to receive employer contributions on the first day of the
month coinciding with or next following the date you complete one year of
employment.
	 
	 	 
	 

	 	In order for you to complete one year of employment, you must complete at least
1,000 hours of employment in a 12 consecutive month period. The initial
eligibility period is measured from your date of employment.
	 
	 	 
	 

	 	In counting hours you will be credited with an hour of employment for every hour
you have a right to be paid. This includes vacation, sick leave, jury duty, etc.
and any hours for which back pay may be due.
	 
	 	 
	 

	 	After you meet the Plan’s eligibility requirements and your completed enrollment
form is received by the Plan Board, you will be enrolled in the Plan. Your
participation will continue until the earlier of (a) your termination of employment
and payment to you of your entire account or (b) your death.
	 
	 	 
	Reenrollment

	 	If you terminate employment and are subsequently reemployed by the same or
another participating employer, you will be eligible for immediate reenrollment.





 


-1-









 





MAKING CONTRIBUTIONS TO THE PLAN





	 	 	 
	Plan Contributions

	 	Employee — You may elect to make a pre-tax and/or after-tax contribution of 1%
to 100% (in 1% increments) of Plan Salary (see the “Plan Salary” section of this
Summary). You may also elect not to make any contributions, in which case
your employer will make the 2% minimum contribution described in (B) below.
	 
	 	 
	 

	 	In addition, you may also elect all or a portion of your employee contributions to
be designated as Roth elective deferrals. Unless stated otherwise, Roth elective
deferrals will be treated as elective deferrals for all purposes under the Plan.
	 
	 	 
	 

	 	You may change the rate at which you are contributing one time in any reporting
period, including Roth deferrals, as of the first day of any contribution reporting
period. You may suspend your contributions, including Roth deferrals, at any
time, but suspended contributions may not subsequently be made up.
	 
	 	 
	 

	 	Employer — Your employer will make a contribution based on the amount you
contribute expressed as the greater of (A) or (B) as follows:
	 
	 	 
	 

	 	(A)
	 
	 	 
	 

	 	(i)    50% during the 2nd and 3rd years of employment

	 
	 	 
	 

	 	(ii)   75% during the 4th and 5th years of employment

	 
	 	 
	 

	 	(iii)  100% upon completion of five or more years of employment.

	 
	 	 
	 

	 	This percentage rate applies to the first 6% of your Plan Salary (see the “Plan
Salary” section of this Summary).
	 
	 	 
	 

	 	(B) the lesser of $75 per month or 2% of your Plan Salary.






	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Illustration	 
	 	 	 	 	 	 	Employer’s Matching Contribution	 
	Your	 	 	 	 	50% During	 	 	75% During	 	 	100% Starting	 
	Contribution	 	 	 	 	2nd & 3rd Yrs.	 	 	4th & 5th Yrs.	 	 	with 6th Yr. of	 
	Rate	 	 	 	 	of Employment	 	 	of Employment	 	 	Employment	 
	 	1%		 	 
	 	 	0.50	%	 	 	0.75	%	 	 	1.00	%
	 	2%	 	 	 
	 	 	1.00	%	 	 	1.50	%	 	 	2.00	%
	 	3%	 	 	 
	 	 	1.50	%	 	 	2.25	%	 	 	3.00	%
	 	4%	 	 	 
	 	 	2.00	%	 	 	3.00	%	 	 	4.00	%
	 	5%	 	 	 
	 	 	2.50	%	 	 	3.75	%	 	 	5.00	%
	 	6-100%	 	 	 
	 	 	3.00	%	 	 	4.50	%	 	 	6.00	%






	 	 	 
	 

	 	Please refer to the “Making Withdrawals From Your Account” section of this Summary
to determine if there are any restrictions on employer contributions on account of a
withdrawal.
	 
	 	 
	 

	 	In addition, your employer may, in its sole discretion, make an employer
supplemental contribution to the Plan. You will be eligible to receive an employer
supplemental contribution if you are employed on the last day of the calendar
quarter for which such contribution is made and complete at least 1,000 hours of
employment in such a year.
	 
	 	 
	 

	 	Catch-up Contributions — All employees who are eligible to make contributions to
this Plan and who will reach age 50 before the end of a calendar year will be
eligible to make catch-up contributions in accordance with, and subject to the
limitations of, Section 414(v) of the Internal Revenue Code.
	 
	 	 
	 

	 	The maximum catch-up contribution for 2009 is $5,500 (as indexed in the future). The
amount, if any, of your elective deferrals which will be characterized as catch-up
contributions will be determined at the end of the Plan Year based upon the statutory
limits and plan limits in effect for the Plan Year.





 


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MAKING CONTRIBUTIONS TO THE PLAN

CONTINUED




	 	 	 
	 

	 	There are several ways in which a contribution could be characterized as a
catch-up contribution, as illustrated in the following examples. Assume that the
Member is over age 50 in each example:
	 
	 	 
	 

	 	Example 1: Suppose your annual salary is $125,000 and you contribute 15% of
your Plan Salary to the Plan (as permitted under the terms of the Plan) for each
contribution reporting period in 2009. At the end of the Plan Year, you will have
contributed $18,750 to the Plan. Because this amount exceeds the statutory
limit on elective deferrals ($16,500 in 2009), the excess ($2,250) will be treated
as a catch-up contribution.
	 
	 	 
	 

	 	Example 2: Same facts as provided in Example 1, except that your annual Plan
Salary is $75,000. In this example, you will have contributed $11,250 to the
Plan in 2009 ( $75,000 x 15%). Because your contributions do not exceed either
the Plan’s maximum contribution percentage or the elective deferral limitation
($16,500 in 2009) and no other limitations are impacted, no portion of your
contributions is treated as a catch-up contribution.
	 
	 	 
	 

	 	Example 3: Suppose that your annual Plan 2008 Salary is $120,000 in 2009,
you earned total compensation of $110,000 in 2008 (making you a Highly-
Compensated Employee for 2009), and you contributed $16,500 to the Plan in
2009. Because your $16,500 contribution does not exceed either the Plan’s
maximum contribution percentage or the elective deferral limit ( $16,500 in
2009), there is no catch-up contribution based upon the application of those two
limits. However, further assume that the Plan determines that you are required
to receive a $6,000 Actual Deferral Percentage (“ADP”) refund for 2009. In this
scenario, $5,500 of your ADP refund would automatically be recharacterized as
a catch-up contribution.
	 
	 	 
	Allocation of
Contributions

	 	Your employer has established a Regular Account, 401(k) Account and Roth
Elective Deferral Account for each Member. All of your contributions and all
employer contributions will be allocated to these accounts. The total value of
these accounts, including the value of your Rollover Account (see below),
represents your interest in the Plan.
	 
	 	 
	 

	 	Employee — All of your contributions will be allocated to your 401(k) Account
except contributions that you designate as Roth Elective Deferrals. If you make
Roth Elective Deferrals, a separate account will be established to account for
such contributions.
	 
	 	 
	 

	 	Employer — If you allocate a contribution of at least 2% to your 401(k) Account,
all employer contributions will be allocated to your Regular Account. If you do
not allocate any of your contributions to your 401(k) Account, employer
contributions of the lesser of $75 per month or 2% of your Plan Salary (see
“Plan Salary” section of this Summary) will be allocated to your 401(k) Account.
The balance of employer contributions will be allocated to your Regular Account.
	 
	 	 
	IRS Nondiscrimination 

Rules

	 	If you are a Highly Compensated Employee, a portion of your contributions
and/or employer contributions made on your behalf, if any, may have to be
returned to you in order to comply with special Internal Revenue Service (“IRS”)
nondiscrimination rules (see the “Plan Limitations” section of this Summary for
other limitations). In general, a Highly Compensated Employee is an employee
who:
	 
	 	 
	 

	 	(a)   was a 5% owner at any time during 2009 or 2008, or
	 
	 	 
	 

	 	(b)   received annual compensation in excess of $105,000 for 2008.





 


-3-









 





MAKING CONTRIBUTIONS TO THE PLAN

CONTINUED




	 	 	 
	Rollovers

	 	You may make a rollover contribution of an eligible rollover distribution from any
other IRS qualified retirement plan or an individual retirement account (“IRA”).
These funds will be maintained in a separate Rollover Account in which you will
have a nonforfeitable vested interest. Please note that you may establish a
Rollover Account within the Plan prior to satisfying the Plan’s eligibility
requirements. However, the establishment of a Rollover Account prior to
satisfying such eligibility requirements will not constitute active membership in
the Plan.
	 
	 	 
	Plan Salary

	 	Plan Salary is defined as your basic salary rate reflecting changes occurring
during the year.
	 
	 	 
	 

	 	In addition, any pre-tax contributions that you make as well as pre-tax
contributions to a Section 125 cafeteria plan and, unless the employer elects
otherwise, Qualified Transportation Fringe benefits as defined under Section
132(f) of the Internal Revenue Code, are included in Plan Salary.
	 
	 	 
	 

	 	Your Plan Salary for any year may not exceed a specified dollar amount as
determined by the IRS each year. This limit is $245,000 for 2009, and is subject
to adjustment in accordance with IRS Regulations.





 


-4-









 





INVESTING YOUR ACCOUNT




	 	 	 
	Investment of
Contributions

	 	All contributions are invested at your direction in one or more of the investment funds provided under
your Plan in whole percentages. These funds are described in greater detail in your enrollment kit.
	 
	 	 
	 

	 	Please note that different investment instructions can be provided to the
Plan for amounts already accumulated in your account and for future
contributions. Certain restrictions may apply. Changes in investment
instructions may be made by submitting a properly completed form, by
accessing Pentegra Online at www.pentegra.com or by using Pentegra
by Phone, the Pentegra Voice Response System. You may access Pentegra by
Phone by calling 1-866-633-4015 and pressing 1.
	 
	 	 
	 

	 	Any changes which are received by Stock Market Closing (usually 4 p.m.
Eastern Time) will be processed at the business day’s closing price.
Transaction changes received after Stock Market Closing will be processed on
the next business day. Your Plan allows for a change of investment
allocation on a daily basis.
	 
	 	 
	 

	 	No amounts invested in the Stable Value Fund may be transferred directly to
the Money Market Fund. Stable Value Fund amounts transferred to and invested
in any of the other funds provided under the Plan for a period of three
months may subsequently be transferred to the Money Market Fund.
	 
	 	 
	 

	 	If no investment direction is given, all contributions credited to your
account will be invested in one of the Target Retirement Funds (either the
2015, 2025, 2035 or 2045 series). The fund selected as your default
investment vehicle will be the series with the year that coincides with or
next follows the year in which you reach age 65.
	 
	 	 
	Valuation of
Accounts

	 	The Plan uses a unit system for valuing each investment fund. Under this
system each participant’s share in any investment fund is represented by units. The unit value
is determined as of the close of business each regular business day (daily valuation). The
total dollar value of a participant’s share in any investment fund as of any valuation date is
determined by multiplying the number of units to the participant’s credit by the unit value of
the fund on that date. The sum of the values of the funds you select represents the total
value of your Plan account.
	 
	 	 
	 

	 	NOTE: If for some reason (such as shut down of financial markets) the
underlying portfolio of any investment fund cannot be valued, the valuation
date for such investment fund will be the next day on which the underlying
portfolios can be valued.
	 
	 	 
	Reporting to
Members

	 	As soon as practicable after the end of each calendar quarter, the Plan will
send you a quarterly statement. This statement provides information about your account
including its market value in each investment fund. Activity for the quarter is reported by
investment fund and contribution type.





 


-5-









 





VESTING




	 	 	 
	Vesting

	 	Vesting is the process under which you earn a non-forfeitable right to the units in
your account. You are always 100% vested in any contributions you make to the
Plan, including Roth elective deferrals. In other words, you will not give up any
units based on your own contributions when you terminate employment.
	 
	 	 
	 

	 	Your employer has also provided that you are immediately 100% vested in any
employer matching and/or employer supplemental contributions credited to your
account.






 


-6-









 





MAKING WITHDRAWALS FROM YOUR ACCOUNT




	 	 	 
	While Employed

	 	You may make a total or partial withdrawal of the vested portion of your account by
filing the appropriate form with the Plan. A withdrawal is based on the unit values on
the valuation date on which a properly completed withdrawal form is received and
processed by the Plan. (See the “Valuation of Accounts” section of this Summary).

	 
	 	 
	 	 	
Under current law, an excise tax of 10% is generally imposed on the taxable portion
of withdrawals occurring prior to your reaching age 591/2. There are certain
exceptions to the 10% excise tax. For example, the 10% excise tax will not apply to
withdrawals made on account of separation from service on or after the date you
have reached age 55, death or disability.
	 
	 	 
	 

	 	A.   From the Regular Account:
	 
	 	 
	 

	 	Not more than one voluntary withdrawal may be made from your Regular
Account in a calendar year unless it is limited to your own contributions, if
any, made prior to January 1, 1987 (“pre 1987 contributions”) without
earnings. When you make a withdrawal, you may continue making
contributions to the Plan.

	 
	 	 
	 

	 	When you make a withdrawal, you may continue making contributions to the
Plan. However, employer contributions on your behalf will be suspended in
accordance with the following:







	 	 	 	 	 
	Type of Withdrawal	 	Suspension Period
	 
	a.

	 	if your withdrawal does not exceed
the amount of your pre-1987 contributions
(without earnings)
	 	None
	b.

	 	if your withdrawal exceeds your pre-1987
contributions without earnings but does not
exceed the amount of your contributions
(pre-1987 plus post-1986) and earnings on them
	 	3 months
	c.

	 	if withdrawal includes any employer contributions
and/or earnings on them
	 	6 months






	 	 	 
	 

	 	No partial withdrawal of less than $1,000 will be permitted unless it is for
either the full amount of (a) your own “pre-1987 contributions” without
earnings, (b) your own contributions (pre-1987 plus post-1986) and earnings
on them or (c) the total vested balance of your Regular Account.

	 
	 	 
	 

	 	B.   From the 401(k) Account:
	 
	 	 
	 

	 	Not more than one withdrawal may be made from your 401(k) Account in a
calendar year.

	 
	 	 
	 

	 	As required by IRS Regulations, a withdrawal from your 401(k) Account prior
to age 591/2 or termination of employment can only be made on account of
hardship. The existence of an immediate and heavy financial need, and the
lack of any other available financial resources to meet this need, must be
demonstrated for a hardship withdrawal. The following situations will be
considered to constitute an immediate and heavy financial need:

	 
	 	 
	 

	 	1)   Medical Expenses — Medical expenses (other than amounts paid by
insurance) incurred by the member as well as the member’s spouse or
dependents (other than amounts paid by insurance).






 


-7-









 





MAKING WITHDRAWALS FROM YOUR ACCOUNT

CONTINUED




	 	 	 
	 

	 	2)   Home Purchase — Purchase of a principal residence of the member
(mortgage payments are excluded).

	 
	 	 
	 

	 	3)   Educational Expenses — Tuition, including room and board, for the
next 12 months of post-secondary education of the member as well as
the member’s spouse, children, or dependents.

	 
	 	 
	 

	 	4)   Prevention of Eviction — Prevention of eviction from a member’s
principal residence or foreclosure on the mortgage of a member’s
principal residence.

	 
	 	 
	 

	 	5)   Funeral Expenses — Burial or funeral expenses for the member’s
deceased parent, spouse, children, or dependents.

	 
	 	 
	 

	 	6)   Home Damage — Expenses for the repair of damages to the member’s
principal residence that would qualify as a tax deductible casualty loss.


	 

	 	No partial withdrawal of less than $1,000 will be permitted unless it is for the
amount necessary to satisfy your hardship.

Only one in-service withdrawal may be made in any Plan Year.

	 
	 	 
	 

	 	You will be required to receive a distribution of the remaining available
vested balance, if any, of your Regular Account and your Rollover Account, if
any, prior to making a hardship withdrawal from your 401(k) Account. In no
event may the maximum amount of a hardship withdrawal from your 401(k)
Account exceed the value of your 401(k) Account as of December 31, 1988
plus the amount of any 401(k) contributions which you make to the Plan on
or after January 1, 1989 reduced by the amount of any hardship withdrawals
which you make from your 401(k) Account on or after January 1, 1989. No
partial withdrawal of less than $1,000 will be permitted unless it is for either
(a) the amount necessary to satisfy your hardship or (b) the total vested
balance of your 401(k) Account.


	 

	 	If you have designated all or a portion of your elective deferrals to be Roth
elective deferrals, then such deferrals may be withdrawn from your Roth
Elective Deferral Account. The same rules and restrictions that apply to
withdrawals from your 401(k) Account or described above will apply to
withdrawals from your Roth Elective Deferral Account. Earnings associated
with designated Roth contributions will become taxable upon distribution, if
such distribution is made within the 5-tax-year period beginning with the first
tax year for which the participant made a designated Roth contribution to the
Plan.

	 
	 	 
	 

	 	C.   From the Rollover Account:
	 
	 	 
	 

	 	Not more than one withdrawal may be made from your Rollover Account in a
calendar year. No partial withdrawal of less than $1,000 will be permitted
unless it is for the total balance of your Rollover Account.

	 
	 	 
	 

	 	NOTE: In general, employer contributions credited on your behalf will not be available for
in-service withdrawal until such employer contributions have been invested in the Plan for at least
24 months (2 years) or you have been a participant in the Plan for at least 60 months (5 years) or
have reached age 591/2.





 


-8-









 





MAKING WITHDRAWALS FROM YOUR ACCOUNT

CONTINUED




	 	 	 
	Upon Termination of
Employment

	 	You may leave your account with the Plan and defer commencement of receipt of
your vested balance until April 1 of the calendar year following the later of (i) the
calendar year in which you reach age 701/2, or (ii) the calendar year in which you
retire (unless you are a 5% owner during the year in which you reach age 701/2)
except to the extent that your vested account balance as of the date of your
termination is less than $500, in which case your interest in the Plan will be cashed
out and payment sent to you.
	 
	 	 
	 

	 	Please note that if you leave your account with the Plan and your vested balance is
less than $20,000, your account will be assessed an annual administrative fee in the
amount of $24.00. If your vested account balance is equal to or exceeds $20,000, no
annual administrative fee will be assessed to your account. You may make
withdrawals from your account(s) at any time after you terminate employment. You
may continue to change the investment instructions with respect to your remaining
account balance and make withdrawals as provided above. (See the “Investment of
Contributions” section of this Summary).
	 
	 	 
	 

	 	If your total vested account equals or exceeds $500, you may elect, in lieu of a lump
sum payment, to be paid in annual installments with the right to take in a lump sum
the vested balance of your account at any time during such payment period. If the
actuarial determination of your life expectancy is less than the period you elect, the
maximum period over which you can receive annual installments will be the next
lower payment period.
	 
	 	 
	Upon Disability

	 	If you are disabled in accordance with the definition of disability under the Plan, you
will be entitled to the same withdrawal rights as if you had terminated your
employment.
	 
	 	 
	 

	 	You are disabled under the Plan if you are eligible to receive (i) disability insurance
benefits under Title II of the Federal Social Security Act or (ii) disability benefits under
any other IRS qualified employee benefits plan or long-term disability plan of your
employer.
	 
	 	 
	Upon Death

	 	If you are entitled to a benefit under the Plan at the time of your death, your entire
account will be payable to your beneficiary. If you are married at the time of your
death, your spouse will be the beneficiary of your death benefit (unless your spouse
consents in writing to the designation of a different beneficiary).

	 
	 	 
	 

	 	
Your beneficiary can elect from among the benefit payment forms available under the
Plan, which include a lump sum distribution, installment payments (over a period not
to exceed five years) and life expectancy distributions. Payments to your beneficiary
must satisfy the minimum distribution requirements of the Internal Revenue Code in
terms of the commencement date and amounts.
	 
	 	 
	 

	 	Notwithstanding the above, if your account balance is less than $500, the payment
will be made to your beneficiary in the form of a lump sum distribution.





 


-9-









 





BORROWING FROM YOUR ACCOUNT




	 	 	 
	Loans

	 	You may borrow from your Regular Account, 401(k) Account, Roth Elective
Deferral Account as well as Rollover Account. You may borrow any amount
between $1,000 and $50,000 (reduced by your highest outstanding loan
balance(s) from the Plan during the preceding 12 months). In no event may you
borrow more than 50% of the vested balance of your account.
	 
	 	 
	 

	 	You may borrow only once in each calendar year from your Regular Account,
401(k) Account or Roth Elective Deferral Account and once each calendar year
from your Rollover Account. Each loan must be for at least $1,000. Your 401(k)
Account will first be used for the loan unless you specifically request otherwise.
In any event, whichever account you borrow from first, such account must be
exhausted before you may borrow any amount from the other account. A loan
from your Rollover Account, if you have one, will be considered a separate loan.
The amount of your loan will first be deducted from the taxable portion of your
account and then from the after-tax portion, if any.

	 
	 	 
	 

	 	
The amount of your loan will be deducted on the valuation date (see the
“Valuation of Accounts” section of this Summary) on which the Plan office
receives and processes your properly executed Loan Application, Promissory
Note and Disclosure Statement and Truth-in-Lending Statement. On request,
the Plan Administrator will provide you with the application form. The loan will
not affect your right to continue making contributions or to receive employer
contributions.
	 
	 	 
	 

	 	Your loan will be deducted proportionately from the funds in which the account
(from which you are taking the loan) is invested. Your loan repayments will be
credited in accordance with your investment instructions in effect at the time of
each repayment.
	 
	 	 
	 

	 	The rate of interest for the term of the loan will be established as of the loan date,
and shall be a reasonable rate of interest generally comparable to the rates of
interest then in effect at a major banking institution (e.g., the Barron’s Prime Rate
[base rate] plus 1%).
	 
	 	 
	 

	 	Repayments are made through payroll deductions and will be transmitted along
with the employer’s contribution reports. The repayment period is between one
and 15 years for loans used exclusively for the purchase of a primary residence
or between one and five years for all other loans, at your option. After three
monthly payments have been made, you may repay the outstanding balance of
the loan (subject to the terms of your loan document).
	 
	 	 
	 

	 	As you repay the loan, the principal portion, together with the interest, will be
credited to your account. In this way, you will be paying interest to yourself. A
$50.00 origination fee and a $40.00 annual administrative fee will be subtracted
from your account. The origination fee, plus the first year’s administrative fee,
will be deducted proportionately from your account at the time of origination.
Subsequent annual administrative fees will be deducted from your account.
	 
	 	 
	 

	 	In the event that you leave employment or die before repaying the loan, the
outstanding balance will be due and, if not paid by the end of the calendar
quarter following the calendar quarter in which you terminate employment or die,
will be deemed a distribution and subject to the applicable tax treatment.
However, you may elect upon termination of employment to continue to repay
the loan on a monthly basis directly to the Plan office.






 


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PLAN LIMITATIONS




	 	 	 
	Plan Limitations

	 	Internal Revenue Service requirements impose certain limitations on the amount
of contributions that may be made to this and other qualified plans. In general,
the annual “contributions” made to a defined contribution plan such as this Plan,
in respect of any Member, may not exceed the lesser of (a) 100% of the
Member’s total compensation or (b) a specific dollar amount, as determined by
the IRS each year. The dollar limit is $49,000 for 2009 and is subject to
adjustment in accordance with IRS Regulations.
	 
	 	 
	 

	 	For this purpose, “contributions” include employer contributions and Member
contributions. The combined annual Member contributions allocated to a
Member’s 401(k) Account and, if applicable, Roth Elective Deferral Account may
not exceed a specific dollar amount, as determined by the IRS each year. This
limit is $16,500 in 2009, and is subject to adjustment in accordance with IRS
Regulations. If your employer has another tax-qualified plan in effect, these limits
are subject to additional restrictions.
	 
	 	 
	 

	 	Each Member and beneficiary assumes the risk in connection with any decrease
in the market value of his account. The benefit to which you may be entitled
when you take a distribution of your account cannot be determined in advance.
	 
	 	 
	 

	 	As a defined contribution plan, the Plan is not covered by the plan termination
insurance provisions of Title IV of the Employee Retirement Income Security Act
of 1974 (“ERISA”). Therefore, your benefits are not insured by the Pension
Benefit Guaranty Corporation in the event of a plan termination.
	 
	 	 
	 

	 	The Trustee is empowered to charge against and pay out of the Trust Fund, to
the extent not paid by the employers, all proper costs of operation and
administration of the Plan, including the expenses and compensation of the
Trustee, expenses of the Board and compensation for its agents.
	 
	 	 
	 

	 	Except as may otherwise be required by applicable law or pursuant to the terms
of a Qualified Domestic Relations Order, amounts payable by the Plan generally
may not be assigned, and if any person entitled to a payment attempts to assign
it, his interest in the amount payable may be terminated and held for the benefit
of that person or his dependents.
	 
	 	 
	 

	 	Membership in the Plan does not give you the right to continued employment
with your employer or affect your employer’s right to terminate your employment.

	 
	 	 
	 

	 	
Your employer’s continued participation is subject to IRS approval and any
requirements the IRS may impose.
	 
	 	 
	 

	 	An employer may terminate its participation in the Plan at any time. In addition,
the Board retains the right to terminate the Plan or an employer’s participation in
the Plan in certain circumstances. If the Plan is terminated or if your employer’s
participation in the Plan is terminated, there will be no further contributions to the
Plan for your account.





 


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LEAVE OF ABSENCE




	 	 	 	 	 
	Leave of Absence	 	There are four types of approved leaves of absence which may be granted on a
uniform basis by your employer while you are a Plan Member.
	 
	 	 	 	 
	 

	 	Type 1
	 	Non-military leave granted to a Plan Member for up to one year.
During this leave, any supplemental contributions or allocations of
forfeitures will continue to be made and Vesting Service will
continue to accrue.
	 
	 	 	 	 
	 

	 	Type 2
	 	Non-military leave granted to a Plan Member for up to one year
during which all contributions are discontinued. However, during
this leave, Vesting Service continues to accrue.
	 
	 	 	 	 
	 

	 	Type 3
	 	Military leave to a Plan Member during which all contributions are
discontinued. However, during this leave, Vesting Service
continues to accrue. In addition, the Member must return to the
service of his employer.
	 
	 	 	 	 
	 

	 	Type 4
	 	Military leave granted to a Plan Member who is subject to
qualified military service pursuant to an involuntary military call-up
in the Reserves of the U.S. Armed Services. During this leave,
contributions or allocations of forfeitures will continue to be made.
In addition, Vesting Service will continue to accrue and any loan
repayments may be suspended. To qualify for benefits under
Type 3, a Member must return to the service of his employer
within 90 days of his discharge from military service.






The following Table will assist you in understanding the Plan’s Leave of Absence provisions as
described above.



	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Vesting
	Type of Leave	 	Duration	 	Contributions	 	Loans	 	Service
	 
	 	 	 	 	 	 	 	 
	Non-Military 

Leave: 1

	 	Up to one year
	 	Will continue to be
made
(supplemental
only)
	 	No effect
	 	Will continue to
accrue
	 
	 	 	 	 	 	 	 	 
	Non-Military 

Leave: 2

	 	Up to one year
	 	Will be

discontinued
	 	No effect
	 	Will continue to
accrue
	 
	 	 	 	 	 	 	 	 
	Military Leave: 3

	 	Can vary; must
return to
Employer
	 	Will be

discontinued
	 	No effect
	 	Will continue to
accrue
	 
	 	 	 	 	 	 	 	 
	Military Leave: 4

	 	Can vary; must
return to
Employer within
90 days of
discharge
	 	Will continue to be
made
	 	Repayments

may be

suspended
	 	Will continue to
accrue





 


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OTHER INFORMATION




	 	 	 
	Top Heavy Information

	 	A “top heavy” plan is a plan under which more than 60% of the accrued benefits
(account values) are for key employees. Key employees generally include
officers and shareholders earning more than $160,000 per year (indexed for
cost-of-living adjustments), 5% owners of the Employer, and 1% owners of the
Employer earning more than $160,000 per year. If your employer’s plan is top
heavy for a particular Plan Year, you may be entitled to a minimum employer
contribution equal to the lesser of 3% of your Plan Salary or the greatest
percentage contributed by the employer for any key employee. This minimum
contribution would be offset by the regular contribution made by your employer
(See the “Plan Contributions” section of this Summary).
	 
	 	 
	 

	 	In order to receive the minimum contribution for any Plan Year, you must be
employed on the last day of the Plan Year (December 31). If your employer also
provides a defined benefit or another defined contribution plan, your minimum
benefit may be provided under such plan.
	 
	 	 
	Disputed Claims 

Procedure

	 	If you disagree with respect to any benefit to which you feel you are entitled, you
should make a written claim to the President of the Plan. If your claim is denied,
you will receive written notice explaining the reason for the denial within 90 days
after the claim is filed.
	 
	 	 
	 

	 	The President’s decision will be final unless you appeal such decision in writing
to the Board of Directors of the Plan, within 60 days after receiving the notice of
denial. The written appeal should contain all information you wish to be
considered. The Board will review the claim within 60 days after the appeal is
made. Its decision will be in writing and will include the reason for such decision.
The Board’s decision will be final.
	 
	 	 
	Qualified Domestic
Relations Orders
(QDRO’s)

	 	A QDRO is a judgment, decree or order which has been determined by the Plan,
in accordance with the procedures established under the provisions of the Plan,
to constitute a QDRO under the Internal Revenue Code.
	 
	 	 
	 

	 	To obtain copies of the Plan’s Model QDRO and QDRO Procedures, free of
charge, please contact the Plan Administrator. (Please refer to the “Plan
Information” section of this Summary to obtain the Plan Administrator’s address
and telephone number).





 


-13-









 





MEMBERS RIGHTS




	 	 	 
	Statement of ERISA
Rights

	 	As a participant of the Plan, you are entitled to certain rights and protection under
ERISA which provides that all members shall be entitled to:
	 
	 	 
	 

	 	•    Examine, without charge, at the Plan Administrator’s office or at other
specified locations, all plan documents, and copies of all documents filed by
the Plan Administrator with the U. S. Department of Labor such as detailed
annual reports and plan descriptions.

	 
	 	 
	 

	 	•    Obtain copies of all plan documents and other plan information upon written
request to the Plan Administrator. The Administrator may make a reasonable
charge for the copies.

	 
	 	 
	 

	 	•    Receive a summary of the Plan’s annual financial report. The Plan
Administrator is required by law to furnish each Member with a copy of such
summary.

	 
	 	 
	 

	 	In addition to creating rights for Plan Members, ERISA imposes duties upon the
people who are responsible for the operation of the Plan. The people who operate
your Plan, called “fiduciaries”, have a duty to do so prudently and in the interest of
you and other plan participants and beneficiaries. No one may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a benefit or
exercising your rights under ERISA. If your claim for a benefit is denied in whole or
in part, you will receive a written explanation of the reason for the denial. As already
explained, you also have the right to have your claim reconsidered.
	 
	 	 
	 

	 	Under ERISA, there are steps you can take to enforce the above rights. For
instance, if you request materials from the Plan Administrator and do not receive
them within 30 days, you may file suit in a federal court. In such a case, the court
may require the Plan Administrator to provide the materials and pay you up to $110 a
day until you receive them, unless such materials were not sent for reasons beyond
the Administrator’s control. If you have a claim for benefits which is denied or
ignored, in whole or in part, you may file suit in a state or federal court.
	 
	 	 
	 

	 	In addition, if you disagree with the Plan Administrator’s decision (or lack thereof)
concerning the qualified status of a domestic relations order subsequent to the 18
month period described in Section 414(p) of the Code, after you complied with the
remedies prescribed by the Plan’s QDRO procedures and the Disputed Claims
Procedures outlined in the Summary Plan Description, you may file suit in federal
court.
	 
	 	 
	 

	 	If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are
discriminated against for asserting your rights, you may seek assistance from the
U.S. Department of Labor or, after you have complied with the Disputed Claims
Procedure outlined in this Summary Plan Description, you may file suit in a federal
court. The court will decide who should pay court costs and legal fees. If you are
successful, the court may order the person you have sued to pay these costs and
fees. If you lose, the court may order you to pay such costs and fees (for example, if
it finds your claim is frivolous).
	 
	 	 
	 

	 	If you have any questions about your Plan, you should contact the Plan
Administrator. If you have any questions about this statement or your rights under
ERISA, you should contact the nearest office of the Employee Benefits Security
Administration, U.S. Department of Labor, listed in your telephone directory or the
Division of Technical Assistance and Inquiries; Employee Benefits Security
Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W.,
Washington D.C. 20210.
	 
	 	 
	 

	 	This Statement of ERISA Rights is required by federal law and regulation.





 


-14-









 





PLAN INFORMATION




	 	 	 
	Employer

	 	Federal Home Loan Bank of Des Moines

801 Walnut Street, Ste. 200

Skywalk Level

Des Moines, IA 50309-3501
	 
	 	 
	 

	 	Telephone Number: — (515)-281-1000
	 
	 	 
	Plan Sponsor:

	 	The Plan is sponsored by the —
	 
	 	 
	 

	 	Pentegra Defined Contribution Plan for Financial Institutions

108 Corporate Park Drive

White Plains, NY 10604
	 
	 	 
	 

	 	Telephone Number — (914) 694-1300

Pentegra by Phone — (866) 633-4015

Pentegra Online — www.pentegra.com
	 
	 	 
	 

	 	Employer Identification Number — 13-6321489

Plan Number — 002
	 
	 	 
	 

	 	Plan Year End — December 31
	 
	 	 
	Plan Administrator:

	 	The Plan Administrator is the President of the Plan whose place of business is
the office of the Pentegra Defined Contribution Plan for Financial Institutions.
The President is also the person designated as agent for service of legal
process. Service of legal process may also be made upon the Plan Trustee.
	 
	 	 
	Board of Directors:

	 	The composition up of the Board changes from year to year, but you may refer to
the most recent Annual Report (which is sent to your employer) for a current
listing of the Board Members and their places of business.
	 
	 	 
	Trustee:

	 	The Bank of New York Mellon

One Wall Street

New York, NY 10286
	 
	 	 
	 

	 	Telephone Number — (212) 635-8115
	 
	 	 
	Participating Employers:

	 	Upon receipt of a written request for information regarding whether a particular
employer is a member of this multiple employer arrangement, we will provide you
with a statement as to whether such employer is a Member and, if so, the
employer’s address.






 


-15-









 





	 	 	 	 	 
	

	 	Our difference is your advantage
	 	Pentegra Retirement Services


108 Corporate Park Drive


White Plains, NY 10604


(800) 872-3473


www.pentegra.com