Document:

Exhibit 10.07

Exhibit 10.07

PENTEGRA DEFINED BENEFIT PLAN

FOR FINANCIAL INSTITUTIONS

REGULATIONS

governing

THE COMPREHENSIVE RETIREMENT PROGRAM

26th Revision, Effective June 1, 2007

(Subject to IRS Approval)

108 Corporate Park Drive • White Plains, NY 10604

 

 

PENTEGRA DEFINED BENEFIT PLAN FOR FINANCIAL INSTITUTIONS

Established December 1, 1943

A non-profit, IRS qualified, tax-exempt, pension plan and trust through which Federal Home Loan
Banks, Savings and Loan Associations and similar institutions, or any other federally insured
financial institutions (including those organizations serving them) may cooperate in providing for
the retirement of their employees. These Regulations, including the Appendices attached hereto,
contain the governing provisions of the Pentegra DB Plan’s Comprehensive Retirement Program, a plan
which provides retirement and death benefits. All contributions to the Pentegra DB Plan are
commingled, and all assets of the Pentegra DB Plan are invested on a pooled basis, without
allocation to individual employers or employees. All amounts payable by the Pentegra DB Plan are a
general charge upon all its assets.

Effective June 1, 2007 except as otherwise provided, the Pentegra Defined Benefit Plan for
Financial Institutions’ Comprehensive Retirement Program is hereby amended and restated in its
entirety to provide as follows:

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II PARTICIPATION AND MEMBERSHIP
	 	 	13	 
	Section 1. Employer Participation
	 	 	13	 
	Section 2. Employee Membership
	 	 	14	 
	 
	 	 	 	 
	ARTICLE III SERVICE
	 	 	17	 
	Section 1. Benefit Service
	 	 	17	 
	Section 2. Vesting Service
	 	 	18	 
	 
	 	 	 	 
	ARTICLE IV BASIC BENEFITS
	 	 	19	 
	Section 1. Normal Retirement
	 	 	19	 
	Section 2. Early Retirement
	 	 	19	 
	Section 3. Death Benefits
	 	 	24	 
	Section 4. Post-Age 65 Accruals
	 	 	28	 
	Section 5. Effect of Social Security Act
	 	 	29	 
	Section 6. Benefit Accrual Freeze
	 	 	29	 
	 
	 	 	 	 
	ARTICLE V BENEFIT FORMULAS AND ADDITIONAL BENEFITS
	 	 	30	 
	Section 1. Normal Retirement Benefit Formulas
	 	 	30	 
	Section 2. Early Retirement Factors
	 	 	51	 
	Section 3. Disability Retirement Benefit
	 	 	52	 
	Section 4. Additional Death Benefits
	 	 	54	 
	Section 5. Retirement Adjustment Payment
	 	 	55	 
	Section 6. Post-Retirement Supplements
	 	 	56	 
	Section 7. Supplemental Early Retirement Window Benefit
	 	 	58	 
	Section 8. Reduction in Accrual Rate for Certain Employees
	 	 	61	 
	 
	 	 	 	 
	ARTICLE VI OPTIONAL FORMS OF PAYMENT
	 	 	62	 
	Section 1. Options
	 	 	62	 
	Section 2. Conditions of Election
	 	 	63	 
	 
	 	 	 	 
	ARTICLE VII METHOD OF PAYMENT
	 	 	64	 

 

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	ARTICLE VIII RESTORATION OF A RETIREE TO SERVICE
	 	 	76	 
	 
	 	 	 	 
	ARTICLE IX CONTRIBUTIONS
	 	 	77	 
	Section 1. Engagement of Actuary
	 	 	77	 
	Section 2. Single Plan
	 	 	77	 
	Section 3. Contributions by Employers
	 	 	77	 
	Section 4. Administrative Expenses
	 	 	78	 
	Section 5. Contributions by Members
	 	 	78	 
	Section 6. Contribution Requirements for Benefit Improvements
	 	 	80	 
	Section 7. Return of Contributions to Employer
	 	 	80	 
	 
	 	 	 	 
	ARTICLE X EFFECTS OF VARIOUS EVENTS ON MEMBERSHIP AND SERVICE 
	 	 	82	 
	Section 1. Termination of Membership
	 	 	82	 
	Section 2. Reinstatement of Membership and Service
	 	 	82	 
	Section 3. Inactive Membership
	 	 	83	 
	Section 4. Leaves of Absence
	 	 	84	 
	Section 5. Service With a Controlled Corporation
	 	 	86	 
	Section 6. Uniform Applicability of Rules
	 	 	86	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS PROVISIONS
	 	 	87	 
	Section 1. Limitations on Benefits Required by the IRC
	 	 	87	 
	Section 2. Small Benefits
	 	 	93	 
	Section 3. Amounts Payable to Incompetents, Minors or Estates
	 	 	94	 
	Section 4. Non-alienation of Amounts Payable
	 	 	94	 
	Section 5. Unclaimed Benefits
	 	 	94	 
	Section 6. Top Heavy Provisions
	 	 	95	 
	Section 7. Transfer of Assets and Liabilities from Prior Plan
	 	 	98	 
	Section 8. Supplemental Retirement Allowance
	 	 	99	 
	 
	 	 	 	 
	ARTICLE XII WITHDRAWAL OF PARTICIPATING EMPLOYER
	 	 	100	 
	Section 1. General
	 	 	100	 
	Section 2. Notice and Effect
	 	 	100	 
	Section 3. Determination of Notional Plan Assets
	 	 	101	 
	Section 4. Determination of Plan Withdrawal Liabilities
	 	 	104	 

 

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	Section 5. Determination of Final Contribution Due by Withdrawing Employer
	 	 	105	 
	Section 6 Transfer of Assets and Liabilities Out of the Pentegra DB Plan
	 	 	105	 
	Section 7. Transfer of Excess Assets to a Qualified Successor Plan
	 	 	105	 
	Section 8. Restrictions on Qualified Successor Plan
	 	 	106	 
	Section 9. Partial Termination
	 	 	107	 
	Section 10. Special Procedures Upon Conservatorship or Receivership
	 	 	107	 
	Section 11. Miscellaneous Provisions
	 	 	109	 
	 
	 	 	 	 
	ARTICLE XIII TERMINATION OF THE TRUST
	 	 	111	 
	 
	 	 	 	 
	ARTICLE XIV ADMINISTRATION AND MANAGEMENT OF FUND
	 	 	115	 
	Section 1. Administration
	 	 	115	 
	Section 2. Dispute Resolution
	 	 	117	 
	Section 3. Management
	 	 	118	 
	Section 4. Information and Communications
	 	 	121	 
	 
	 	 	 	 
	ARTICLE XV AMENDMENTS
	 	 	124	 
	 
	 	 	 	 
	ARTICLE XVI INTERPRETATION
	 	 	125	 

 

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REGULATIONS

As amended to June 1, 2007

ARTICLE I DEFINITIONS

The following words and phrases as used in these Regulations shall have the following
meanings:

	(1)	 	Abbreviations used in the following text shall mean:

	 	 	 
	IRS

	 	U.S. Internal Revenue Service
	IRS Regulations

	 	Regulations under the U.S. Internal Revenue Code
	IRC

	 	U.S. Internal Revenue Code of 1986, as amended
	ERISA

	 	Employee Retirement Income Security Act of 1974, as amended
	PBGC

	 	Pension Benefit Guaranty Corporation
	DOL

	 	U.S. Department of Labor

	(2)	 	“Accumulated Contributions” — The amount of benefit standing to the credit of a Member
representing the contributions made by the Member together with Regular Interest thereon as
determined in accordance with ERISA.
	 
	(3)	 	“Actuarial Increase Adjustment Factor” — The monthly increase to the Member’s Retirement
Allowance beginning as of the Member’s Normal Retirement Date. Such monthly increase shall be
determined as follows:

	 	 	 
	Age	 	Adjustment
	65-70

	 	.8% per month
	70-75

	 	1.0% per month
	75-80

	 	1.2% per month
	80-85

	 	1.5% per month
	85-90

	 	1.9% per month
	90-95

	 	2.5% per month
	95 and older

	 	3.4% per month

 

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	(4)	 	“Beneficiary” — In accordance with Article IV, Section 3 and applicable law, the person
or persons, other than a Contingent Annuitant, designated to receive any amount payable upon
the death of a Member or Retiree. Such designation may be made or
changed only by the Member or Retiree on a form provided by, and filed with, the Pentegra DB
Plan prior to the Member’s death. If no Beneficiary is designated, or if the designated
Beneficiary predeceases the Member or Retiree, then (except as provided in Article IV,
Section 3(C) or Article VI, Section 1, Option 2) any such amount payable shall be paid to
the estate of such Member or Retiree upon the Member’s or Retiree’s death.

	(5)	 	“Benefit Service” — The period of Service counted in determining a Member’s benefits as
described in Article III.

	(6)	 	“Board” — The Board of Directors provided for in Article XIV to direct the operations of the
Pentegra DB Plan.
	 
	(7)	 	“Break in Service” — A Period of Severance of at least 12 consecutive months.

	(8)	 	“CCL” — For purposes of Subsections (E), (F), (G), (H), (I), (J), (K), (L), (M), (N), (O),
(P), (Q) and (S) of Article V, Section 1 (except as otherwise provided in the following
paragraph), the average of the taxable wage bases in effect under Section 230 of the Social
Security Act as of the beginning of each Plan Year included in the 35-year period ending with
the last day of the calendar year preceding the calendar year in which the Member attains (or
will attain) his social security retirement age, as defined in Section 415(b)(8) of the IRC.
However, commencing with the Plan Year beginning on July 1, 1995, CCL shall mean the average
of the taxable wage bases in effect under Section 230 of the Social Security Act as of the
beginning of each Plan Year included in the 35-year period ending with the last day of the
calendar year in which the Member attains (or will attain) his social security retirement age,
as defined in Section 415(b)(8) of the IRC.

	 	 	The taxable wage base for the current Plan Year and any subsequent Plan Year shall be
assumed to be the same as the taxable wage base in effect as of the beginning of the Plan
Year for which the determination is being made. In addition, a Member’s CCL for a Plan Year
beginning before the 35-year period referred to in this paragraph shall be the taxable wage
base in effect as of the beginning of such Plan Year.

	 	 	For purposes of Subsections (G), (H), (I), (J), (K), (L), (M), (N), (O), (P), (Q) and (S) of
Article V, Section 1, in lieu of the foregoing definition of CCL, an Employer may elect, on
a uniform basis for its Members, to define CCL as the greater of $10,000 or one-half of the
“covered compensation” (as defined in Section 1.401(l)-1(c)(7) of the IRS
Regulations) of an individual who attains his social security retirement age in the
calendar year in which the Plan Year begins.

 

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	(9)	 	“Career Average Salary” — The average annual Salary during the period of Benefit Service.
	 
	(10)	 	“Cash Balance Account” — The Cash Balance Account as defined in Article V, Section 1(R).

	(11)	 	“Change of Control” — A Buyout, Merger, or Substantial Change of Ownership. For this purpose,
these terms shall have the following meaning:

	 	 	 	“Buyout” — A transaction or series of related transactions by which the Employer is
sold, either through the sale of a Controlling Interest in the Employer’s voting stock
or through the sale of all or substantially all of the Employer’s assets, to a party not
having a Controlling Interest in the Employer’s voting stock.
	 
	 	 	 	“Merger” — A transaction or series of transactions wherein the Employer is combined with
another business entity, and after which the persons or entities who had owned, either
directly or indirectly, a Controlling Interest in the Employer’s voting stock own less
than a Controlling Interest in the voting stock of the combined entity.
	 
	 	 	 	“Controlling Interest” — The ownership, either directly or indirectly, of more than 20%
of the Employer’s voting stock.
	 
	 	 	 	“Substantial Change of Ownership” — A transaction or series of transactions in which a
Controlling Interest in the Employer is acquired by or for a person or persons or
business entity, which person(s) or entity did not own, either directly or indirectly, a
Controlling Interest in the Employer.

	(12)	 	“Commencement Date” — The date on which an Employer begins to participate in the Pentegra DB
Plan’s Comprehensive Retirement Program.

	(13)	 	“Commuted Value” — The present value of a series of future installment payments
discounted at the rate of 7% per annum.
	 

 

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	(14)	 	“Contingent Annuitant” — A person designated to receive a continuing allowance under
one of the options of, and in accordance with, Article VI upon the death of a Retiree.

	(15)	 	“Disability Retirement Date” — The first day of the month coincident with or next following
the date on which the Member separates from active employment by reason of disability.

	(16)	 	“Early Retirement Date” — The first day of the month coincident with or next following the
Member’s termination of employment and the Member’s attainment of (i) age 45, (ii) age 55, or
(iii) age 55 plus the completion of ten (10) years of Vesting Service, as designated by the
Employer.

	(17)	 	“Effective Date” — Except as otherwise noted herein, the effective date of the
Regulations, as amended and restated, is June 1, 2007.

	(18)	 	“Employee” — Unless an Employer elects otherwise or as necessary to satisfy the requirements
of IRC Sections 410(b) and 401(a)(26) and the IRS Regulations thereunder, any person in the
Service of an Employer who receives a Salary, and any Leased Employees. If an individual
receives no income from an Employer other than commissions and such Employer does not elect to
include commissions as Salary under Section (43) of this Article, then such individual shall
not be treated as an Employee for purposes of the Regulations.

	 	 	Employees classified by the Employer as independent contractors who are subsequently
determined by the Internal Revenue Service to be Employees shall not be Members of the
Pentegra DB Plan.

	(19)	 	“Employer” — Any institution which has adopted the Regulations and participates in the
Pentegra DB Plan, having applied, qualified and been approved in accordance with Article II,
Section 1.
	 
	(20)	 	“Enrollment Date” — The date on which an Employee becomes a Member.

	(21)	 	“Equivalent Value” — A benefit of equivalent value when computed on the basis of tables,
developed taking into account actuarial assumptions and interest rates, which tables were last
adopted for this purpose by the Board and specified in Appendix A attached hereto or based
upon an interest rate and mortality table designated by the
Employer; provided, however, that the interest rate used to determine the Equivalent Value
of a benefit for purposes of Article VII, Section 2(B) and Article XI, Section 2, shall not
be greater than the rate prescribed under Article VII, Section 2(B).

 

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	(22)	 	“High-5 Salary” — The average annual Salary over the 5 consecutive years of highest Salary
during Benefit Service (or during all the years of Benefit Service if less than 5).

	(23)	 	“High-3 Salary” — The average annual Salary over the 3 consecutive years of highest Salary
during Benefit Service (or during all the years of Benefit Service if less than 3).

	(24)	 	“Highly Compensated Employee” — For Plan Years beginning after December 31, 1996, an Employee
or a Member (i) who is a five percent owner at any time during the look-back year or
determination year, or (ii) (a) who is employed during the determination year and who during
the look-back year received 415 Compensation (as defined in Article XI, Section 1(B)) from the
Employer in excess of $80,000 (as adjusted pursuant to the IRC and IRS Regulations thereunder
for changes in the cost of living), and (b) if elected by the Employer (by formal adoption)
was in the top-paid group of Employees for such look-back year.

	 	 	For this purpose, the determination year shall be the Plan Year. The look-back year shall be
the calendar year ending within the determination year.
	 
	 	 	The top-paid group shall consist of the top twenty percent of the Employees when
ranked on the basis of compensation paid by the Employer.
	 
	 	 	The determination of who is a Highly Compensated Employee will be made in accordance
with Section 414(q) of the IRC and the IRS Regulations thereunder.

	 	 	For Plan Years beginning after December 31, 1996, the family member aggregation rules of
Section 414(q)(6) of the IRC (as in effect prior to the Small Business Job Protection Act of
1996) are eliminated.

	(25)	 	“Hour of Service” —

	 	(A)	 	Each hour for which an Employee is paid, or entitled to payment, for the
performance of duties for an Employer. These hours will be credited to the Employee
for the computation period in which the duties are performed; and

 

5

 

	 	(B)	 	Each hour for which an Employee is paid, or entitled to payment, by an Employer
on account of a period of time during which no duties are performed (irrespective of
whether the employment relationship has terminated) due to vacation, holiday,
illness, incapacity (including disability), layoff, jury duty, military duty or
leave of absence. No more than 501 Hours of Service will be credited under this
Subsection (B) for any single continuous period (whether or not such period occurs
in a single computation period). Hours under this Subsection (B) will be calculated
and credited pursuant to Section 2530.200b-2 of the DOL Regulations which is
incorporated herein by this reference; and

	 	(C)	 	Each hour for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by an Employer. The same Hours of Service will not be credited
both under Subsection (A) or (B), as the case may be, and under this Subsection (C).
These hours will be credited to the Employee for the computation period or periods to
which the award or agreement pertains rather than the computation period in which the
award, agreement or payment is made.

	 	 	 	Hours of Service will be credited for employment with other members of an affiliated
service group (under IRC Section 414(m)), a controlled group of corporations (under
IRC Section 414(b)), or a group of trades or businesses under common control (under
IRC Section 414(c)), of which the Employer is a member, and any other entity
required to be aggregated with such Employer pursuant to IRC Section 414(o).

	 	 	 	Hours of Service will also be credited for any individual considered an Employee for
purposes of the Regulations under IRC Section 414(n) or Section 414(o).

	(26)	 	“Leased Employee” — Effective July 1, 1997, any person (other than an employee of the
recipient) who pursuant to an agreement between the recipient and any other person (“leasing
organization”) has performed services for the recipient (or for the recipient and related
persons determined in accordance with Section 414(n)(6) of the IRC) on a substantially
full-time basis for a period of at least one year, and such services are performed under the
primary direction or control by the recipient. Benefits provided a Leased Employee by the
leasing organization which are attributable to services performed for the recipient employer
shall be treated as provided by the recipient employer.

 

6

 

	(27)	 	“Limitation Year” — For purposes of applying the limitations of Section 415 of the
IRC, the “Limitation Year” shall be the twelve consecutive month period beginning January
1 and ending December 31.
	 
	(28)	 	“Member” — An Employee enrolled in the membership of the Pentegra DB Plan’s
Comprehensive Retirement Program as provided in Article II, Section 2.
	 
	(29)	 	“Non-highly Compensated Employee” — An Employee who is not a Highly Compensated
Employee.
	 
	(30)	 	“Normal Retirement Date” — The first day of the month coincident with or next following the
Member’s 65th birthday or, if later, the date of his termination of employment;
except that if the Member shall have attained age 65 before his Employer’s Commencement Date,
than his Normal Retirement Date shall be such Member’s termination of employment.
	 
	(31)	 	“PBGC Interest Rate” — The interest rate used by the PBGC, as of the date of distribution,
for purposes of determining the present value of a lump sum distribution on plan termination.
	 
	(32)	 	“Pension Equity Benefit” — The Pension Equity Benefit as defined in Article V, Section 1(S).
	 
	(33)	 	“Pentegra DB Plan” — The Pentegra Defined Benefit Plan for Financial Institutions
(formerly known as the Financial Institutions Retirement Fund) consisting of and governed
by the Regulations and Trust which together constitute a tax-qualified employee
retirement benefit plan.
	 
	(34)	 	“Period of Severance” — A continuous period of time during which the Employee is not employed
by an Employer and commences on an Employee’s severance from service date. An Employee’s
severance from service date is the date the Employee retires, quits or is discharged or, if
earlier, the 12 month anniversary of the date on which the Employee was otherwise first absent
from service.
	 
	(35)	 	“Plan Year” — A 12-month period ending June 30.

 

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	(36)	 	“Qualified Domestic Relations Order” — Any judgment, decree or order (including
approval of a property settlement agreement) which has been determined by the Board to
constitute a qualified domestic relations order within the meaning of Section 414(p)(1) of
the IRC.

	(37)	 	“Regular Interest” — Interest at the rate or rates adopted from time to time by the Board for
the purpose of computing interest on the contributions made by a Member; provided, however,
for Plan Years beginning on or after July 1, 1988 interest compounded annually at the rate of
120 percent of the applicable Federal mid-term rate as in effect under IRC Section 1274 for
the first month of the Plan Year.
	 
	(38)	 	“Regulations” — The Regulations of the Pentegra DB Plan, as the same may be amended from
time to time.

	(39)	 	“Required Beginning Date” — Effective for distributions made on or after January 1, 1997, the
Required Beginning Date shall be the later of the April 1 of the calendar year following (i)
the calendar year in which the Member attains age 701/2 or (ii) the calendar year in which the
Member retires, except that the Required Beginning Date for a 5-percent owner shall be the
April 1 of the calendar year following the calendar year in which such Member attains age 701/2.

	 	 	Any Member, other than a 5-percent owner, attaining age 701/2 in years after 1995 who
continues in service may elect by April 1 of the calendar year following the calendar year
in which the Member attained age 701/2 (or by December 31, 1997 in the case of a Member
attaining age 701/2 in 1996) to defer distributions until the April 1 of the calendar year
following the calendar year in which the Member retires. If no such election is made, the
Member will begin receiving distributions by the April 1 of the calendar year following the
calendar year in which the Member attained age 701/2 (or by December 31, 1997 in the case of a
Member attaining age 701/2 in 1996).

	 	 	Any Member attaining age 701/2 in years prior to 1997 may elect to stop distributions and
recommence distributions by the April 1 of the calendar year following the calendar year in
which the Member retires. If such election is made, there is a new annuity starting date
upon recommencement.

 

8

 

	 	 	A Member is treated as a 5-percent owner for purposes of this section if such Member is a
5-percent owner as defined in Section 416 of the IRC at any time during the Plan Year ending
with or within the calendar year in which such 5-percent owner attains age 701/2.

	 	 	Once distributions have begun to a 5-percent owner under this section, the distributions
must continue, even if the Member ceases to be a 5-percent owner in a subsequent year.

	(40)	 	“Retiree” — A former Member who has been retired under Article IV or XII (including one who
terminated with a vested benefit and deferred commencement of his Retirement Allowance).

	(41)	 	“Retirement Allowance” — The annual lifetime allowance payable to a Retiree under Articles IV
and V.

	(42)	 	“Retirement Date” — The date as of which a Member becomes a Retiree under Article IV or XII.

	(43)	 	“Salary” — An Employer shall adopt, on a uniform basis for its Members and in accordance with
the applicable provisions of the IRC and IRS Regulations, one of the following definitions of
Salary:

	 	(A)	 	(1) Regular, basic salary or wage rate as of January 1 of the calendar year
or the Member’s date of employment, if later.

	 	(2)	 	Regular, basic salary or wage rate as of January 1 of the calendar year
or the Member’s date of employment, if later, plus overtime payments earned in the
immediately preceding calendar year.

	 	(3)	 	Regular, basic salary or wage rate as of January 1 of the calendar
year, or the Member’s date of employment, if later, plus overtime payments and
bonuses earned in the immediately preceding calendar year.
	 
	 	(4)	 	Salary, as defined in Paragraph (1), (2) or (3) of this Subsection (A),
plus commissions earned in the immediately preceding calendar year, but not to
exceed such amount of commissions as the Employer shall designate.

 

9

 

	 	(5)	 	Salary, as defined in Paragraph (3) of this Subsection (A), but excluding one or
more types of bonus earned in the immediately preceding calendar as is designated by the
Employer.

	 	(B)	 	(1)   Regular, basic salary or wage rate as in effect for each month of the calendar
year.

	 	(2)	 	Regular, basic salary or wage rate as in effect for each month of the calendar year,
plus overtime payments earned in each such month.

	 	(3)	 	Regular, basic salary or wage rate as in effect for each month of the calendar year,
plus overtime payments and bonuses earned in each such month.
	 
	 	(4)	 	Salary, as defined in Paragraph (1), (2) or (3) of this Subsection (B), plus
commissions earned in the current calendar year, but not to exceed such amount of
commissions as the Employer shall designate.

	 	(5)	 	Salary, as defined in Paragraph (3) of this Subsection (B), but excluding one or more
types of bonus earned in each month of the calendar year as is designated by the Employer.

	 	(C)	 	Total taxable compensation as reported on a Member’s IRS Form W-2 (exclusive of any
compensation deferred from a prior year) for the calendar year.

	 	 	For purposes of the definition of “Salary” under Subsection (B) or Subsection (C) of this Article I
(43), Salary shall be deemed to be earned uniformly over each month of Benefit Service during the
calendar year.
	 
	 	 	For purposes of the definition of “Salary,” Special Payments and contributions by the Employer
under this or any other plan (other than before-tax contributions made on behalf of a Member to a
cafeteria plan under Section 125 of the IRC or, effective for Plan Years beginning on or after
January 1, 1998, qualified transportation fringe benefits under Section 132(f) of the IRC unless
the Employer specifically elects to exclude such contributions or benefits) shall be excluded.
Amounts voluntarily deferred by a Member under Section 401(k) of the IRC shall be included as
Salary. If an Employer elects to include commissions in the definition of Salary adopted under this
Article I (43), the amount of commissions to be included shall, at the Employer’s option which shall be
uniformly applied, be reduced, but not below zero, to an amount by which a fixed dollar
amount specified by the Employer exceeds the Member’s Salary excluding commissions.
Accordingly, if a Member’s Salary, excluding commissions, equals or exceeds the applicable
fixed dollar amount, then no commissions will be included as Salary.

 

10

 

	 	 	For all purposes of this Article I (43), only a Member’s first $200,000 (adjusted for cost
of living in accordance with Section 401(a)(17) of the IRC) of Salary shall be taken into
account. Effective July 1, 1994, “Salary,” as otherwise defined above, shall be limited to a
Member’s first $150,000 (as adjusted for cost-of-living and otherwise limited or modified in
accordance with Section 401(a)(17) of the IRC and applicable IRS rulings and IRS
Regulations); provided, however that a Member’s accrued benefit determined in accordance
with the Regulations shall not be less than the accrued benefit of such Member determined as
of June 30, 1994.

	 	 	Subject to the IRC, any definition of “Salary” adopted by an Employer under Section (43) of
this Article I shall be applied to all years of a Member’s Benefit Service; provided,
however, if an Employer so elects, the definition of Salary adopted under this Section (43)
shall be applied only to a Member’s years of Benefit Service completed subsequent to the
effective date of the Employer’s adoption of such definition of Salary.

	(44)	 	“Service” — Employment with an Employer. A period of employment shall commence or recommence
as of the first day the Employee is credited with an Hour of Service. In accordance with DOL
Regulations Section 2530.200b-2(b) and (c), Service includes (i) periods of vacation, (ii)
periods of layoff, (iii) periods of absence authorized by an employer for sickness, temporary
disability or personal reasons, and (iv) if and to the extent required by federal law, service
in the Armed Forces of the United States.

	 	 	In addition to the foregoing in this Section (44), Service shall include employment with
other entities required to be aggregated with an Employer under IRC Section 414(b), (c), (m)
or (o) and shall include an individual’s employment with an Employer during the period for
which such individual is not eligible for membership in the Pentegra DB Plan’s Comprehensive
Retirement Program pursuant to Article II, Section 2(B).

	(45)	 	“Special Payments” — Deferred compensation in the year deferred and in the year paid,
vacation pay, severance pay, moving expenses, and fringe benefits.

 

11

 

	(46)	 	“Spouse” — Except as otherwise provided by a Qualified Domestic Relations Order, the
individual to whom a Member or Retiree was married on the earlier of (i) the date of his
death or (ii) the first date of the period for which his Retirement Allowance commences.

	(47)	 	“Straight Life Annuity” — The normal Retirement Allowance elected by the Employer where all
payments shall cease and no further amounts shall be due and payable upon the Retiree’s death.

	(48)	 	“Trust” — The Trust established in respect of the Regulations under the Declaration of Trust
made as of July 15, 1943, as amended, in which the Regulations are incorporated by reference.

	(49)	 	“Trustee” — The Trustee of the Trust.

	(50)	 	“Vesting Service” — The period of Service counted in determining a Member’s eligibility for
early retirement as described in Article III.

	(51)	 	The masculine pronoun wherever used shall include the feminine pronoun.

 

12

 

ARTICLE II PARTICIPATION AND MEMBERSHIP

SECTION 1. EMPLOYER PARTICIPATION

Any federally insured financial institution or other organization serving it may apply to the Board
for participation in the Pentegra DB Plan’s Comprehensive Retirement Program if (A) as of its
Commencement Date and in accordance with Section 410(b) of the IRC and the IRS Regulations (i) the
percentage of Non-highly Compensated Employees who will benefit under the Regulations is at least
70% of the percentage of Highly Compensated Employees who will benefit under the Regulations
(excluding such employees as are permitted to be excluded under IRS Regulations), or (ii) the
average benefit percentage test (as defined in Section 410(b)(2) of the IRC and the IRS
Regulations) will be satisfied with respect to the Employer, and (B) as of its Commencement Date
and in accordance with Section 401(a)(26) of the IRC and the IRS Regulations, at least 50 (or, if a
lesser number results, 40%) of the Employer’s Employees will benefit under the Pentegra DB Plan. An
Employer may, at its option, subject to the provisions of the Regulations and applicable law, adopt
different features and provisions (a different basis of participation) for different definable
groups of employees, including for employees acquired pursuant to a merger or acquisition. The
Employer will be required to demonstrate that this Section 1 and all other applicable IRC and IRS
Regulations continue to be satisfied following the adoption of a different basis of participation
for separate and definable groups of employees. The applicant shall submit the formal application
and all required information, and the Board, in its discretion, shall decide upon admittance and
determine the Commencement Date. The Board may, in its discretion and at such times as it may
determine, require an affirmative showing by an Employer of its continued compliance with the
requirements of Sections 410(b), 401(a)(4), and Section 401(a)(26) of the IRC and IRS Regulations.
Should an Employer determine that its basis of participation does not comply with the requirements
of Section 410(b), 401(a)(4) or 401(a)(26) of the IRC and IRS Regulations, the Employer shall be
permitted to expand membership in the Pentegra DB Plan to satisfy such requirements as long as such
amendment complies with applicable law. Initial and continued participation shall be subject to
continued compliance with the IRC and IRS Regulations in order that the Pentegra DB Plan be
maintained as a trust qualified under Section 401(a) of the IRC. Notwithstanding anything in this
Section 1 to the contrary, any Member of the Pentegra DB Plan’s Comprehensive Retirement Program
who is transferred to a governmental or quasi-governmental agency serving the financial industry
shall continue as a Member of the Pentegra DB Plan’s Comprehensive Retirement Program provided that
such Member’s employing agency has adopted the Regulations.

 

13

 

SECTION 2. EMPLOYEE MEMBERSHIP

	(A)	 	Every Employee, except as provided in Subsection (B) of this Section 2, shall be enrolled as
a Member of the Pentegra DB Plan’s Comprehensive Retirement Program on the latest of:

	 	(1)	 	His Employer’s Commencement Date; or

	 	(2)	 	The first day of the month coincident with or next following the date he is hired by
his Employer; or
	 
	 	(3)	 	The first day of the month coincident with or next following the expiration of
any waiting period established with the Pentegra DB Plan by his Employer and made
uniformly applicable to its Employees, which period may not extend beyond the later of
his completion of one year of Service or attainment of age 21. Such waiting period
shall be inapplicable, however, in the cases of restoration and reinstatement of
Service described in Article VIII and Article X, Section 2, respectively, except for
those Employees who have received a complete distribution of their benefits on account
of the withdrawal of their Employer from participation in the Pentegra DB Plan under
Article XII or who have elected to transfer their accrued benefits to a qualified
successor plan on account of such withdrawal from participation in the Pentegra DB Plan
under Article XII; or

	 	(4)	 	The first day of the month coincident with or next following the date he is no
longer ineligible under Subsection (B) of this Section; or
	 
	 	(5)	 	In the case of an Employer with respect to whom Employees were excluded from
eligibility for membership pursuant to Paragraph (1) of Subsection (B) of this Section
2, as in effect on June 30, 1988 (Employees hired on or after attainment of age 60 were
ineligible), at such Employer’s option, with respect to any Employee who had attained
age 60 prior to being hired and who has an Hour of Service on or after July 1, 1988 the
applicable enrollment date otherwise provided under this Subsection (A) and determined
without regard to Paragraph (1) of Subsection (B) of this Section 2 as in effect on
June 30, 1988.

 

14

 

	(B)	 	An Employee shall not be eligible for membership if he is in one of the following classes for
which his Employer has requested, and the Pentegra DB Plan has granted, subject to continuing
compliance with applicable provisions of the IRC and ERISA, exclusion:

	 	(1)	 	Those who are covered by another designated pension plan of their Employer.
	 
	 	(2)	 	Those who are compensated on an hourly basis — whereby compensation for each
pay period (without regard to paid absences) is determined by multiplying the hourly
wage rate by the actual number of Hours of Service completed.
	 
	 	(3)	 	Those who are hired under a written agreement which (i) precludes membership
in the Pentegra DB Plan and (ii) provides for a specific period of employment not in
excess of one year.
	 
	 	(4)	 	Those Employees of an entity, designated by the Employer, who were employed by
the designated entity immediately prior to the Employer’s acquisition of such entity.
	 
	 	(5)	 	Those who are hired on or after a date specified by the Employer.
	 
	 	(6)	 	Those who are Leased Employees.
	 
	 	(7)	 	Those who are employed at a bona-fide geographical location.
	 
	 	(8)	 	Those who are flex staff employees, which are defined for these purposes as
Employees who are not regular full-time or part-time Employees.

	(C)	 	Every Employee, except as provided in Subsection (D) of this Section 2, shall, as a condition
of his employment, agree to become a Member when eligible and shall be enrolled as a Member by
his Employer as of the date he becomes eligible. However, no person shall under any
circumstances become a Member unless and until his enrollment application is filed with, and
accepted by, the Pentegra DB Plan.

	(D)	 	An Employee who is in Service on his Employer’s Commencement Date may elect not to become a
Member by filing with the Pentegra DB Plan, within 60 days after he becomes eligible, written
notice of such election wherein he waives all present and prospective benefits which he would
otherwise have as a Member. An Employee who files such notice shall be excluded from
membership upon receipt by the Pentegra DB Plan of such notice. Thereafter, he may become a
Member only if he files an enrollment application within five years of the later of such
Commencement Date or the date he becomes eligible for membership, and furnishes evidence of
good health satisfactory to
the Pentegra DB Plan.

 

15

 

	(E)	 	If, on the date a Member is enrolled, his Employer does not expect him to complete at
least 1,000 Hours of Service in the next 12 consecutive month period, the Member shall be
placed forthwith on inactive membership under Article X, Section 3.

	(F)	 	Membership shall not confer any legal rights upon any Employee or other person against any
Employer, nor shall it interfere with the right of any Employer to discharge any Employee.

 

16

 

ARTICLE III SERVICE

SECTION 1. BENEFIT SERVICE

	(A)	 	Benefit Service is the period of Service counted in determining a Member’s benefits (subject
to Articles IV and V). It is the sum of Membership Service and Prior Service.

	(B)	 	Membership Service is the years and months of Service rendered by a Member from his
Enrollment Date to the date of termination of his membership, which date shall be the date
immediately preceding his applicable Retirement Date. Subject to Article X, a Member shall be
credited with one month of Membership Service for each calendar month of enrolled membership
during which an Hour of Service is credited.

	(C)	 	Prior Service is the years and months of Service rendered by a Member through the day
preceding his Employer’s Commencement Date, for which his Employer will allow credit on a
uniform basis. At the Employer’s option (by formal adoption) and in a uniform and
nondiscriminatory manner, an Employer shall have the right to count, as Prior Service under
this Subsection (C), any period of Service not otherwise taken into account pursuant to this
Article III.

	 	 	Notwithstanding the foregoing, an Employer may, with the consent of the Pentegra DB Plan,
determine as Prior Service of any Employee a period of his continuous employment with (i) an
organization which has been merged or consolidated with, or substantially all the assets of
which have been acquired by, the Employer and (ii) the Federal Home Loan Bank Board which
preceded employment with such Employer, provided that such determination be uniformly
applicable to all continuing Employees who have been employed by such organization and
enrolled in the membership of the Pentegra DB Plan.

	 	 	An Employer may, upon such terms and conditions as the Pentegra DB Plan and the IRS shall
approve, provide benefits in respect of any person covered by a prior retirement plan of the
Employer which was qualified under Section 401(a) of the IRC and in connection therewith
transfer funds from such plan to the Pentegra DB Plan so long as such transferred funds are
applied so that each Member affected thereby would receive a benefit immediately after the
transfer, if the Pentegra DB Plan then terminated, at least equal to the benefit he would
have received upon the termination of the prior plan immediately before such transfer.

 

17

 

SECTION 2. VESTING SERVICE

For purposes of determining an Employee’s eligibility for early retirement under Article IV,
Section 2, and subject to any adjustment required by Article X, an Employee will receive credit for
the aggregate of all time period(s) commencing with the Employee’s first day of employment or
reemployment with an Employer and ending on the date a Break in Service begins, except as otherwise
provided in this Section 2. The first day of employment or reemployment is the first day the
Employee performs an Hour of Service. An Employee will also receive credit for any Period of
Severance of less than 12 consecutive months. Fractional periods of a year will be expressed in
terms of days.

If an Employer is a member of an affiliated service group (under IRC Section 414(m)), a controlled
group of corporations (under IRC Section 414(b)), or a group of trades or businesses under common
control (under IRC Section 414(c)), or any other entity required to be aggregated with the employer
pursuant to IRS Section 414(o), Vesting Service will be credited for any employment for any period
of time for any other member of such group. Vesting Service will also be credited for any
individual required under IRC Section 414(n) or Section 414(o) to be considered an Employee of an
employer aggregated under IRC Section 414(b), (c), or (m).

Should an Employer that has never maintained a defined benefit pension plan commence participation
in the Pentegra DB Plan, such Employer may elect (by formal adoption) not to grant to its Employees
Vesting Service credit for any service preceding the Employer’s Commencement Date, except as
required under Article X, Section 2. An Employer’s election not to provide prior Vesting Service
credit shall not affect the Employer’s option to provide prior Benefit Service credit under Section
1 of this Article III for such Employees.

 

18

 

ARTICLE IV BASIC BENEFITS

All the benefits described in Articles IV and V are provided on a uniform basis for the Members of
an Employer, except as otherwise provided under Article II, Section 1 or under Article V, Section
8.

SECTION 1. NORMAL RETIREMENT

	(A)	 	Any Member who attains age 65 while in Service shall be fully vested and retired on his
Normal Retirement Date.

	(B)	 	The annual normal Retirement Allowance payable as of a Member’s Normal Retirement Date shall
be determined under the benefit formula elected by the Employer under Article V, Section 1. In
the case of a Member who retires after attaining age 65, such Member’s Retirement Allowance
shall be the greater of (i) the Member’s Retirement Allowance based on his years of Benefit
Service as of his Retirement Date, or (ii) the Member’s Retirement Allowance as of the first
day of the month coincident with or next following the later of (x) the Member’s attainment of
age 65 or (y) the Member’s Employer’s Commencement Date, increased by the Actuarial Increase
Adjustment Factor for benefit formulas defined in Article V, Sections 1(A) through 1(Q).

	(C)	 	In lieu of having his normal Retirement Allowance commence as of his Normal Retirement Date,
a Member may elect to have such allowance commence in an increased amount as of the first day
of any month subsequent to his Normal Retirement Date but not later than his Required
Beginning Date. For benefit formulas defined in Article V, Sections 1(A) through 1(Q), the
regular Retirement Allowance of such a Member shall be increased by the Actuarial Increase
Adjustment Factor.

SECTION 2. EARLY RETIREMENT

	(A)	 	Any Member whose Service is terminated before attainment of age 65 and who has a
nonforfeitable right to all or a portion of the Retirement Allowance provided by his
Employer’s contributions may, upon written application filed with the Pentegra DB Plan, be
retired as of his Early Retirement Date.

	(B)	 	(i) With respect to the benefit formulas described in Article V, Sections 1(A), 1(B),
1(C), 1(F), 1(J), 1(K), 1(L), 1(M), and 1(N), the annual early Retirement Allowance
payable before age 65 shall be equal to a percentage of the annual
Retirement Allowance otherwise payable as of the Member’s Normal Retirement Date,
calculated on the basis of his Salary (Career Average, High-5 or High-3, whichever is
applicable) and the Benefit Service as of his Early Retirement Date.

 

19

 

	 	(ii)	 	With respect to the benefit formulas described in Article V, Sections 1(D), 1(E), 1(G),
1(H), 1(I), 1(O), 1(P), and 1(Q) the annual early Retirement Allowance payable before age 65
shall be equal to, as adjusted pursuant to the following sentence, a percentage of the annual
Retirement Allowance otherwise payable as of the Member’s Normal Retirement Date calculated on
the basis of his Salary (Career Average, High-5 or High-3, whichever is applicable) as of his
Early Retirement Date and the Benefit Service he would have completed as of his Normal
Retirement Date. The amount determined under the preceding sentence shall be multiplied by a
fraction, the numerator of which is the actual years and months of Benefit Service the Member
has completed as of his Early Retirement Date and the denominator of which is the number of
years and months of Benefit Service which the Member would have completed as of his Normal
Retirement Date.

	 	(iii)	 	With respect to the Cash Balance Account formulas described in Article V, Section 1(R),
the annual early Retirement Allowance payable before age 65 shall be equal to a percentage of
the normal Retirement Allowance amount determined at the Member’s Retirement Date under
Article V, Section 2(A).

	 	(iv)	 	With respect to the Pension Equity Benefit formulas described in Article V, Section
1(S), the annual early Retirement Allowance payable before age 65 shall be equal to a
percentage of the normal Retirement Allowance amount determined at the Member’s Retirement
Date under Article V, Section 2(A).

	 	(v)	 	The percentage applied in Subsection (B)(i) through (B)(iv) of this Section 2
shall be further adjusted by the Member’s vesting percentage at early retirement from the
following tables, as adopted by his Employer:

 

20

 

TABLE I

	 	 	 	 
	Completed Years of	 	Vesting
	Vesting Service	 	Percentage
	 
	Less than 5
	 	0	%
	5 or more
	 	100	%

TABLE II

	 	 	 	 
	Completed Years of	 	Vesting
	Vesting Service	 	Percentage
	 
	Less than 2
	 	0	%
	2
	 	20	%
	3
	 	40	%
	4
	 	60	%
	5
	 	80	%
	6 or more
	 	100	%

TABLE III

	 	 	 	 
	Completed Years of	 	Vesting
	Vesting Service	 	Percentage
	 
	Less than 2
	 	0	%
	2
	 	20	%
	3
	 	40	%
	4
	 	60	%
	5 or more
	 	100	%

TABLE IV

	 	 	 	 
	Completed Years of	 	Vesting
	Vesting Service	 	Percentage
	 
	Less than 3
	 	0	%
	3 or more
	 	100	%

 

21

 

TABLE V

	 	 	 	 
	Completed Years of	 	Vesting
	Vesting Service	 	Percentage
	 
	Less than 3
	 	0	%
	3
	 	20	%
	4
	 	40	%
	5
	 	60	%
	6
	 	80	%
	7 or more
	 	100	%

	(C)	 	In lieu of having his early Retirement Allowance commence at age 65 under Subsection (B) of
this Section 2, a Member may elect to have such allowance commence in an increased amount as
of the first day of any month subsequent to his attainment of age 65 but not later than his
Required Beginning Date. The regular Retirement Allowance of such a Member shall be increased
by the Actuarial Increase Adjustment Factor.

	(D)	 	In lieu of the Retirement Allowance payable at age 65 under Section 1, a Member may elect to
have his early Retirement Allowance commence in a reduced amount as of the first day of any
month coincident with or subsequent to his Early Retirement Date. Notwithstanding the above,
if a Member elects to terminate employment pursuant to Article V, Section 7, such Member may
elect to have his early Retirement Allowance commence in a reduced amount as of the first day
of any month subsequent to his termination of employment. If a Member so elects, his annual
early Retirement Allowance shall be equal to a percentage of his annual early Retirement
Allowance otherwise payable under Subsection (B) of this Section 2. Such percentage shall be
determined by the Member’s age at commencement of his Retirement Allowance using the factors
adopted by his Employer pursuant to Article V, Section 2.

	 	 	Notwithstanding anything in this Section 2 to the contrary, an Employer may elect to provide
that any early Retirement Allowance which commences after a Member’s attainment of age 60 or
62, as designated by the Employer in its election, shall not be reduced because of the
commencement of such allowance before the Member’s Normal Retirement Date; provided,
however, an Employer may not elect to provide such an unreduced early Retirement Allowance
if the Employer has elected to provide any of the normal retirement benefit formulas
described in Article V, Section 1(E), (F), (G), (H), (I), (J), (K), (L), (M), (N),(O), (P),
(Q), (R), or (S). In the case of an Employer’s
election pursuant to this Subsection (D) to provide an unreduced early Retirement
Allowance upon a Member’s attainment of age 60 or 62, as designated by the Employer,
the early retirement factors adopted by the Employer shall apply to the commencement
of the Member’s Retirement Allowance prior to the Member’s attainment of age 60 or 62,
as applicable.

 

22

 

	(E)	 	Notwithstanding anything in this Article IV to the contrary, in the case of a Member who has
terminated Service with the Employer with a nonforfeitable interest in his Retirement
Allowance (as determined in accordance with Article IV, Section 2(B)(iii)) and who is eligible
for disability benefits under the Federal Social Security Act, such Member may elect to
commence to receive his disability retirement benefits under this Section 2 regardless of the
Member’s age at such time. In the event of the payment of such disability retirement benefits
as provided in this Subsection (E), such benefits shall be the Equivalent Value of the
disabled Member’s early Retirement Allowance as determined by the Pentegra DB Plan in
accordance with the IRC, ERISA and applicable governmental regulations to reflect the early
commencement of the payment thereof.

	(F)	 	Notwithstanding anything in this Article IV to the contrary, an Employer may, at its option,
elect to fully vest the Retirement Allowances of Employees whose employment is terminated
pursuant to a corporate transaction as long as such election does not discriminate in favor of
Highly Compensated Employees.

	(G)	 	No amendment to an Employer’s vesting schedule shall directly or indirectly deprive a Member
of his nonforfeitable rights to benefits accrued to the date of such amendment. In the event
that the Employer amends the vesting schedule adopted under this Article IV, or if the
Employer’s basis of participation in the Pentegra DB Plan is amended in any way that directly
or indirectly affects the computation of a Member’s nonforfeitable benefit (including a change
to or from a Top-Heavy vesting schedule), any Member who has completed at least 3 Years of
Employment may elect to have his nonforfeitable benefit computed without regard to such
amendment under the Pentegra DB Plan (a “Vesting Election”). Any Vesting Election shall be
made by notifying the Board in writing within a reasonable period after the adoption of the
amendment or change. The election period shall begin on the date such amendment is adopted or
deemed to be made, as the case may be, and shall end no earlier than the latest of the
following dates: (i) the date which is 60 days after the day such amendment is adopted; (ii)
the date which is 60 days after the day such amendment or change becomes effective; or (iii)
the date which is 60 days after the day the Member is given written notice of such
amendment or change by the Pentegra DB Plan Office. Any such election, once made, shall be
irrevocable.

 

23

 

	 	 	To the extent permitted under the IRC and IRS Regulations, the Employer may, at its option,
elect to treat all Members who are eligible to make a Vesting Election as having made such
Vesting Election if the vesting schedule resulting from such an election is more favorable
than the Vesting Schedule that would apply pursuant to the Plan amendment. Furthermore,
subject to the requirements of the applicable Regulations, the Employer may elect to treat
all Members, who were employed by the Employer on or before the effective date of the change
or amendment, as subject to the prior vesting schedule, provided such prior schedule is more
favorable.

SECTION 3. DEATH BENEFITS

	(A)	 	Subject to the provisions of Subsections (B), (G) and (H) of this Section 3, upon the death
of a Member who was survived by a Spouse and whose Employer has not elected a Straight Life
Annuity as the payment form for the Member’s normal Retirement Allowance, the Equivalent Value
of 120 monthly installments of his Retirement Allowance, determined as if he had retired as of
the first day of the month during which he died, but not less than his Accumulated
Contributions, if any, shall be paid in the form of a life annuity to such Spouse, as
Beneficiary, unless such Spouse elects a lump sum or an installment form of payment under
Subsection (D) of this Section 3; provided, however, that if such Member’s Spouse had
consented in writing to the Member’s designation of a different Beneficiary, such death
benefit will be paid to such designated Beneficiary. Any such non-spousal designation may be
revoked by the Member without spousal consent at any time prior to the Member’s death. If a
Member is not survived by a Spouse, such death benefit will be paid to his designated
Beneficiary or, if there is no designated Beneficiary, to the Member’s estate. If the Member
was not vested in all or a portion of his Retirement Allowance, no death benefit other than
the refund of his Accumulated Contributions, if any, shall be payable.

	(B)	 	Upon the death of a Member who has a nonforfeitable right to all or a portion of his
Retirement Allowance and who was survived by a Spouse entitled to receive the death benefit
determined under Subsection (A) of this Section 3 or under Article V, Section 4, whichever is
applicable, such death benefit shall not be less than the Equivalent Value of one-half of the
Option 3 allowance under Article VI, Section 1, as if such Spouse had been designated
Contingent Annuitant.

 

24

 

	 	 	Upon the death of a Member who has a nonforfeitable right to all or a portion of his
Retirement Allowance and who was survived by a Spouse not entitled to a death benefit under
Subsection (A) of this Section 3 or under Article V, Section 4, due to the Employer’s
adoption of a Straight Life Annuity as the payment form for the Member’s normal Retirement
Allowance, such spousal death benefit shall be equal to the Equivalent Value of one-half of
the Option 3 allowance under Article VI, Section 1, as if such Spouse had been designated
Contingent Annuitant.

	(C)	 	Upon the death of a Retiree who died before 120 monthly installments of his Retirement
Allowance had been paid and was survived by a Spouse and at the time of his death no optional
form of payment under Article VI was in effect, the Commuted Value of such unpaid installments
shall be paid in a lump sum to his Spouse as Beneficiary; provided, however, that if such
Retiree’s Spouse had consented in writing to the designation of a different Beneficiary, the
death benefit will be paid to such designated Beneficiary. Any such non-spousal designation
may be revoked by the Retiree without spousal consent at any time prior to the Retiree’s
death. If a Retiree is not survived by a Spouse at the time of his death, the death benefit
will be paid to his designated Beneficiary or, if there is no designated Beneficiary, to the
Retiree’s estate.

	 	 	Notwithstanding the preceding paragraph, if an Employer elects a Straight Life Annuity as
the payment form for the Member’s normal Retirement Allowance, upon the death of a Retiree
who was not survived by a Spouse, no death benefit other than a refund of Accumulated
Contributions, if any, shall be payable, unless the Employer elects to provide a death
benefit prior to commencement of benefit payments equal to the present value of the Member’s
Accrued Benefit, or unless an optional form of payment under Article VI was in effect at the
time of the Retiree’s death.

	(D)   (1) 	 	Upon written request filed with the Pentegra DB Plan by the Member or Retiree,
or if no such request had been made prior to the time of death, then upon written
application filed by the Beneficiary prior to payment of any amount on account of
the death of the Member or Retiree, the lump sum payment provided for in Subsection
(A), (B) or (C) of this Section 3 may be converted into installments over a period
of up to 10 years for a spousal Beneficiary, or over a period of up to 5 years for a
non-spousal Beneficiary, computed with interest as specified by the Pentegra DB
Plan, and should the Beneficiary die before having received all such installments,
the Equivalent Value of the unpaid installments using such interest rate shall be
paid in a lump sum to the Beneficiary’s estate.

 

25

 

	 	(2)	 	If a Member or Retiree dies before distribution of his Retirement Allowance
commences, distribution of the Member’s or Retiree’s entire interest shall be completed by
December 31 of the calendar year containing the fifth anniversary of the Member’s death
except to the extent that an election is made to receive distributions in accordance with
(a) or (b) below:

	 	(a)	 	if any portion of the Member’s interest is payable to a designated
Beneficiary, distributions may be made over the life or over a period certain not
greater than the life expectancy of the designated Beneficiary commencing on or before
December 31 of the calendar year immediately following the calendar year in which the
Member died;
	 
	 	(b)	 	if the designated beneficiary is the Member’s surviving Spouse, the date
distributions are required to begin in accordance with (a) above shall not be earlier
than the later of (1) December 31 of the calendar year immediately following the
calendar year in which the Member died and (2) December 31 of the calendar year in
which the Member would have attained age 701/2.

	 	 	 	If the Member has not made an election pursuant to this Subsection (D) by the time of his
or her death, the Member’s designated Beneficiary must elect the method of distribution no
later than the earlier of (1) December 31 of the calendar year in which distributions would
be required to begin under this section, or (2) December 31 of the calendar year which
contains the fifth anniversary of the date of death of the Member. If the Member has no
designated Beneficiary, or if the designated Beneficiary does not elect a method of
distribution, distribution of the Member’s entire interest must be completed by December 31
of the calendar year containing the fifth anniversary of the Member’s death. For purposes
of this paragraph (2), if the Member’s or Retiree’s surviving Spouse dies after the Member
or Retiree, but before payments to such Spouse begin, the provisions of this paragraph (2),
with the exception of subparagraph (b) thereof, shall be applied as if the surviving Spouse
was the Member or Retiree. Notwithstanding the foregoing, to the extent any Retirement
Allowance provides for payments after a Retiree’s death, such payments shall be made in
accordance with Section 401(a)(9) of the IRC, including the minimum distribution incidental
benefit requirements of Section 1.401(a)(9)-2 of the proposed IRS Regulations.

 

26

 

	(E)	 	Special provisions:

	 	(i)	 	If a Member who has a nonforfeitable right to all or a portion of his
Retirement Allowance dies after termination of Service and prior to his Retirement
Date, his death benefit shall be determined under Subsection (A) of this Section 3, or
Article V, Section 4(A), whichever is applicable. If such a Member dies on or after his
Retirement Date, the death benefit shall be determined under Subsection (B) of this
Section 3 or Article V, Section 4(B), whichever is applicable.

	 	(ii)	 	If a disability Retiree dies within 90 days after his separation from active
employment, his death benefit, if any, shall be determined under Subsection (A) of
this Section 3, or Article V, Section 4(A), whichever is applicable, and shall be
reduced (but not below zero) by the sum of any retirement payments made.

	(F)	 	Upon the death of a Retiree whose Retirement Allowance has commenced, any death benefit (if
paid in installments) shall be distributed to his Beneficiary at least as rapidly as under
the method being used as of the date of the Retiree’s death.
	 

	(G)	 	In lieu of any death benefit otherwise payable under this Section 3, the Beneficiary of a
Member who has a vested Cash Balance Account shall be entitled to a death benefit under this
paragraph if the Member dies prior to the Member’s Retirement Date. If the Member’s
Beneficiary is not his surviving Spouse, payment of the death benefit shall be made in a
single lump sum payment equal to the vested Cash Balance Account as soon as practicable after
the death of the Member. If the Member’s Beneficiary is his surviving Spouse, payment shall be
made as an annuity for the life of the surviving Spouse unless the surviving Spouse elects to
receive the vested Cash Balance Account as a lump sum payment. If the death benefit is paid as
an annuity, it shall be the actuarial equivalent of the Cash Balance Account using the
actuarial equivalent basis, as provided under Article V, Section 1(R)(1). Any other provision
of the Pentegra DB Plan’s Regulations notwithstanding, if the value of the Member’s vested
Cash Balance Account is not more than $1,000 ($3,500 prior to March 28, 2005) at his date of
death, payment of the death benefit, attributable to such vested Cash Balance Account, shall
be made to the Beneficiary in a single lump sum payment as soon as practicable.

 

27

 

	(H)	 	In lieu of any death benefit otherwise payable under this Section 3, the
Beneficiary of a Member who has a vested Pension Equity Benefit shall be entitled to a death
benefit under this paragraph if the Member dies prior to the Member’s Retirement Date. If
the Member’s Beneficiary is not his surviving Spouse, payment of the death benefit shall be
made in a single lump sum payment equal to the vested Pension Equity Benefit as soon as
practicable after the death of the Member. If the Member’s Beneficiary is his surviving
Spouse, payment shall be made as an annuity for the life of the surviving Spouse unless the
surviving Spouse elects to receive the vested Pension Equity Benefit as a lump sum payment.
If the death benefit is paid as an annuity, it shall be the actuarial equivalent of the
Pension Equity Benefit using the actuarial equivalent basis, as provided under Article V,
Section 1(R)(1). Any other provision of the Pentegra DB Plan’s Regulations notwithstanding,
if the value of the Member’s vested Pension Equity Benefit is not more than $1,000 ($3,500
prior to March 28, 2005) at his date of death, payment of the death benefit, attributable to
such vested Pension Equity Benefit, shall be made to the Beneficiary in a single lump sum
payment as soon as practicable.
	 
	(I)	 	An Employer may at its option elect to provide a death benefit under this Section 3
(subject to the provisions of Subsection (B) of this Section 3) that is equal to either (i)
or (ii), whichever is of greater value at time of the Member’s death, (i) the death benefit
payable under either Article IV, Section 3(A) or Article V, Section 4(B), if either death
benefit is applicable, or (ii) the lump sum value of the Member’s vested Retirement
Allowance calculated in accordance with Article VII, Section 2(B). In the case of an
Employer that has not requested, or the Pentegra DB Plan has not approved, that a lump sum
settlement option be made available, the determination of the lump sum value of the Member’s
vested Retirement Allowance (as provided in clause (ii) of the preceding sentence) shall be
made as if a lump sum settlement option was made available with respect to such benefit
under Article VII, Section 2(B).

SECTION 4. POST-AGE 65 ACCRUALS

Effective July 1, 1988, an Employee who had attained age 65 prior to July 1, 1988 will continue to
accrue benefits in accordance with the Regulations. No benefits shall accrue with respect to such
Employee’s Service which occurred after the Employee’s attainment of age 65 but prior to July 1,
1988; provided, however, an Employer may elect to provide benefit accruals with respect to such
pre-July 1, 1988 Service.

 

28

 

SECTION 5. EFFECT OF SOCIAL SECURITY ACT

Benefits being paid to a Retiree or a Beneficiary may not be decreased by reason of any
post-separation Social Security benefit increase or by the increase of the Social Security Wage
Base under Title II of the Federal Social Security Act. Benefits in which a former Member has a
vested interest may not be decreased by reason of an increase in a benefit level or wage base under
Title II of the Federal Social Security Act.

SECTION 6. BENEFIT ACCRUAL FREEZE

Notwithstanding anything in the Pentegra DB Plan’s Regulations to the contrary, if an Employer so
elects, no benefits shall accrue on behalf of any Member with respect to such Employer on and after
the effective date of such election. No employees of the Employer shall first become eligible to
participate in the Pentegra DB Plan on or after the effective date of the election to freeze
benefit accruals. In order to implement a freeze of benefit accruals under the Pentegra DB Plan, an
Employer must comply with all of the rules and procedures prescribed by the Board and with
applicable law.

 

29

 

ARTICLE V BENEFIT FORMULAS AND ADDITIONAL BENEFITS

SECTION 1. NORMAL RETIREMENT BENEFIT FORMULAS

An Employer may provide, on a uniform basis for its Members, one of the following normal retirement
benefit formulas:

	(A)	 	Nonintegrated Benefit Formulas
	 
	 	 	The
product of:

	 	(1)	 	An annual accrual rate equal to any rate not less than .25% and not greater
than 3% (determined in .25% (.05% effective on and after June 5, 2004) increments), as
designated by the Employer, multiplied by
	 
	 	(2)	 	The Member’s (a) Career Average Salary, (b) High-5 Salary or (c) High-3
Salary, as designated by the Employer, multiplied by
	 
	 	(3)	 	The number of years and months of Benefit Service.

	(B)	 	Nonintegrated Benefit Formulas with a Benefit Service Cap
	 
	 	 	The
product of:

	 	(1)	 	An annual accrual rate equal to any rate not less than .25% and not greater
than 3% (determined in .25% (.05% effective on and after June 5, 2004) increments), as
designated by the Employer, multiplied by
	 
	 	(2)	 	The Member’s (a) High-5 Salary or (b) High-3 Salary, as designated by the
Employer, multiplied by
	 
	 	(3)	 	The number of years and months of Benefit Service up to a maximum of 20, 25,
30, 35, 40, 45 or 50 years, as designated by the Employer.

 

30

 

	(C)	 	Partial High-5 or High-3 Salary Benefit Formulas
	 
	 	 	The
greater of (1) or (2):

	 	(1)	 	The product of:

	 	(i)	 	An annual accrual rate equal to any rate not less than .25% and not
greater than 3% (determined in .25% (.05% effective on and after June 5,
2004) increments), as designated by the Employer, multiplied by
	 
	 	(ii)	 	The Member’s (a) High-5 Salary or (b) High-3 Salary, as
designated by the Employer, multiplied by
	 
	 	(iii)	 	The number of years and months of Benefit Service, multiplied by
	 
	 	(iv)	 	Any percentage less than 100% but equal to or greater than
50%, as designated by the Employer.

	 	(2)	 	The product of:

	 	(i)	 	An annual accrual rate equal to any rate not less than .25% and not
greater than 3% (determined in .25% (.05% effective on and after June 5,
2004) increments), as designated by the Employer under Subsection
(C)(1)(i) of this Section 1, multiplied by
	 
	 	(ii)	 	The Member’s Career Average Salary, multiplied by
	 
	 	(iii)	 	The number of years and months of Benefit Service.

	(D)	 	Nonintegrated Fixed Percentage Formulas
	 
	 
	 	 	The product of:
	 

	 	(1)	 	Any percentage not less than 10% and not greater than 80%, as designated by the
Employer, multiplied by
	 
	 	(2)	 	The Member’s (a) High-5 Salary or (b) High-3 Salary, as designated by the
Employer, for each Member who completes a minimum number of years of Benefit
Service equal to 25 or 30 years of Benefit Service as of his Normal Retirement
Date, as designated by the Employer.

	 	 	If a Member does not complete the required minimum number of years of Benefit Service as of
his Normal Retirement Date, his Retirement Allowance under this Subsection (D) shall be
multiplied by a fraction, the numerator of which is the number
of years and months of Benefit Service completed as of his Normal Retirement Date and the
denominator of which is the required minimum number of years of Benefit Service.

 

31

 

	(E)	 	1.5% Integrated Benefit Formula With Career Average Minimum
	 
	 	 	The product
of:

	 	(1)	 	1.0% of the Member’s High-5 (or High-3, as designated by the Employer) Salary
up to the CCL, plus 1.5% of the Member’s High-5 (or High-3) Salary above the CCL,
multiplied by

	 	(2)	 	The number of years and months of Benefit Service.

	 	(a)	 	In the event a Member has completed more than 35 years of
Benefit Service as of his Normal Retirement Date, the Member’s Retirement
Allowance, with respect to such years of Benefit Service in excess of 35, will
be equal to 1.5% of the Member’s High-5 (or High-3) Salary, both above and
below the CCL. At the Employer’s election, with respect to Benefit Service
completed prior to the Employer’s adoption of the integrated benefit formula in
this Section 1(E), the Retirement Allowance computed with respect to such
Benefit Service shall be determined by applying an annual accrual rate of 1.5%
of the Member’s High-5 (or High-3) Salary, both above and below the CCL. In no
event will the Member’s normal Retirement Allowance computed under this Section
1(E) be less than the product of:
	 
	 	(b)	 	1.5%, multiplied by
	 
	 	(c)	 	The Member’s Career Average Salary, multiplied by
	 
	 	(d)	 	The number of years and months of Benefit Service.

	(F)	 	2% Integrated Benefit Formula With Career Average Minimum

	 	 	The product of:

	 	(1)	 	1.5% of the Member’s High-5 (or High-3, as designated by the Employer)
Salary up to the CCL, plus 2.0% of the Member’s High-5 (or High-3) Salary above the
CCL, multiplied by

 

32

 

	 	(2)	 	The number of years and months of Benefit Service.

	 	 	 	In the event a Member has completed more than 35 years of Benefit Service as of the
date of his termination of employment, the Member’s Retirement Allowance, with
respect to such years of Benefit Service in excess of 35, will be equal to 2.0% of
the Member’s High-5 (or High-3) Salary, both above and below the CCL. At the
Employer’s election, with respect to Benefit Service completed prior to the
Employer’s adoption of the integrated benefit formula in this Section 1(F), the
Retirement Allowance computed with respect to such Benefit Service shall be
determined by applying an annual accrual rate of 2.0% of the Member’s High-5 (or
High-3) Salary, both above and below the CCL.
	 
	 	 	 	In no event will the Member’s normal Retirement Allowance computed under this
Section 1(F) be less than the product of:
	 
	 	(a)	 	2.0%, multiplied by

	 
	 	(b)	 	The Member’s Career Average Salary, multiplied by
	 
	 	(c)	 	The number of years and months of Benefit Service.

	(G)	 	1.5% Integrated Benefit Formula Without Career Average Minimum
	 
	 	 	The
product of:

	 	(1)	 	1.0% of the Member’s High-5 (or High-3, or, effective on and after March 27,
2006, Career Average, as designated by the Employer) Salary up to the CCL, plus 1.5% of
the Member’s High-5 (or High-3 or Career Average, as applicable) Salary above the CCL,
multiplied by
	 
	 	(2)	 	The number of years and months of Benefit Service, up to a maximum, if any,
specified by the Employer, of 20, 25, 30 or 35 years; provided that no maximum number
of years and months of Benefit Service will apply if the Benefit Formula is based on
Career Average Salary. In the event a Member has completed more than 35 years of
Benefit Service as of his Normal Retirement Date and the Employer has not specified a
maximum number of years of Benefit Service, or a maximum number of years of Benefit
Service does not apply, the Member’s Retirement Allowance, with respect to Benefit
Service in excess of 35 years, will be 

 

33

 

	 	 	 	equal to 1.5% of the Member’s High-5 (or High-3
or, if Career Average Salary is used in the formula above, Career Average) Salary, both above and below the CCL.
At the Employer’s election, with respect to Benefit Service completed prior to the
Employer’s adoption of the integrated benefit formula in this Section 1(G), the
Retirement Allowance computed with respect to such Benefit Service shall be
determined by applying an annual accrual rate of 1.5% of the Member’s High-5 Salary
(or High-3) Salary or, if Career Average Salary is used in the formula above, Career
Average Salary)), both above and below the CCL.

	(H)	 	1.75% Integrated Benefit Formula Without Career Average Minimum
	 
	 	 	The
product of:

	 	(1)	 	1.25% of the Member’s High-5 (or High-3, or, effective on and after March 27,
2006, Career Average, as designated by the Employer) Salary up to the CCL, plus 1.75%
of the Member’s High-5 (or High-3 or Career Average, as applicable) Salary above the
CCL, multiplied by
	 
	 	(2)	 	The number of years and months of Benefit Service, up to a maximum, if any,
specified by the Employer, of 20, 25, 30 or 35 years; provided that no maximum number
of years and months of Benefit Service will apply if the Benefit Formula is based on
Career Average Salary. In the event a Member has completed more than 35 years of
Benefit Service as of his Normal Retirement Date and the Employer has not specified a
maximum number of years of Benefit Service, or a maximum number of years of Benefit
Service does not apply, the Member’s Retirement Allowance, with respect to Benefit
Service in excess of 35 years, will be equal to 1.75% of the Member’s High-5 (or High-3
or, if Career Average Salary is used in the formula above, Career Average) Salary, both
above and below the CCL. At the Employer’s election, with respect to Benefit Service
completed prior to the Employer’s adoption of the integrated benefit formula provided
in this Section 1(H), the Retirement Allowance computed with respect to such Benefit
Service shall be determined by applying an annual accrual rate of 1.75% of the Member’s
High-5 Salary (or High-3 Salary or, if Career Average Salary is used in the formula
above, Career Average Salary), both above and below the CCL.

 

34

 

	(I)	 	1.85% Integrated Benefit Formula Without Career Average Minimum
	 
	 	 	The product of:

	 	(1)	 	1.25% of the Member’s High-5 (or High-3, or, effective on and after March 27,
2006, Career Average, as designated by the Employer) Salary up to the CCL, plus
1.85% of the Member’s High-5 (or High-3 or Career Average, as applicable) Salary
above the CCL, multiplied by

	 	(2)	 	The number of years and months of Benefit Service, up to a maximum, if any,
specified by the Employer, of 20, 25, 30 or 35 years; provided that no maximum number
of years and months of Benefit Service will apply if the Benefit Formula is based on
Career Average Salary. In the event a Member has completed more than 35 years of
Benefit Service as of his Normal Retirement Date and the Employer has not specified a
maximum number of years of Benefit Service, or a maximum number of years of Benefit
Service does not apply, the Member’s Retirement Allowance, with respect to Benefit
Service in excess of 35 years, will be equal to 1.85% of the Member’s High-5 (or High-3
or, if Career Average Salary is used in the formula above, Career Average) Salary, both
above and below the CCL. At the Employer’s election, with respect to Benefit Service
completed prior to the Employer’s adoption of the integrated benefit formula provided
in this Section 1(I), the Retirement Allowance computed with respect to such Benefit
Service shall be determined by applying an annual accrual rate of 1.85% of the Member’s
High-5 Salary (or High-3 Salary or, if Career Average Salary is used in the formula
above, Career Average Salary), both above and below the CCL.

	(J)	 	2% Integrated Benefit Formula Without Career Average Minimum

	 	 	The product of:

	 	(1)	 	1.5% of the Member’s High-5 (or High-3, or, effective on and after March 27,
2006, Career Average, as designated by the Employer) Salary up to the CCL, plus 2.0% of
the Member’s High-5 (or High-3 or Career Average, as applicable) Salary above the CCL,
multiplied by

 

35

 

	 	(2)	 	The number of years and months of Benefit Service, up to a maximum, if any,
specified by the Employer, of 20, 25, 30 or 35 years; provided that no maximum number
of years and months of Benefit Service will apply if the Benefit Formula is based on
Career Average Salary. In the event a Member has completed more than 35 years of
Benefit Service as of the date of his termination of employment and the Employer has
not specified a maximum number of years of Benefit Service, or a maximum number of years of Benefit Service does not apply, the
Member’s Retirement Allowance, with respect to Benefit Service in excess of 35
years, will be equal to 2.0% of the Member’s High-5 (or High-3 or, if Career Average
Salary is used in the formula above, Career Average) Salary, both above and below
the CCL. At the Employer’s election, with respect to Benefit Service completed prior
to the Employer’s adoption of the integrated benefit formula in this Section 1(J),
the Retirement Allowance computed with respect to such Benefit Service shall be
determined by applying an annual accrual rate of 2.0% of the Member’s High-5 Salary
(or High-3 Salary or, if Career Average Salary is used in the formula above, Career
Average Salary), both above and below the CCL.

	(K)	 	2.25% Integrated Benefit Formula Without Career Average Minimum

	 	 	The product of:

	 	(1)	 	1.75% of the Member’s High-5 (or High-3, or, effective on and after March 27,
2006, Career Average, as designated by the Employer) Salary up to the CCL, plus 2.25%
of the Member’s High-5 (or High-3 or Career Average, as applicable) Salary above the
CCL, multiplied by

	 	(2)	 	The number of years and months of Benefit Service, up to a maximum, if any,
specified by the Employer, of 20, 25, 30 or 35 years; provided that no maximum number
of years and months of Benefit Service will apply if the Benefit Formula is based on
Career Average Salary. In the event a Member has completed more than 35 years of
Benefit Service as of his Normal Retirement Date and the Employer has not specified a
maximum number of years of Benefit Service, or a maximum number of years of Benefit
Service does not apply, the Member’s Retirement Allowance, with respect to Benefit
Service in excess of 35 years, will be equal to 2.25% of the Member’s High-5
(or High-3 or, if Career Average Salary is used in the formula above, Career Average)
Salary, both above and below the CCL. At the Employer’s election, with respect to
Benefit Service completed prior to the Employer’s adoption of the integrated benefit
formula provided in this Section 1(K), the Retirement Allowance computed with respect
to such Benefit Service shall be determined by applying an annual accrual rate of 2.25%
of the Member’s High-5 Salary (or High-3 Salary or, if Career Average Salary is used in
the formula above, Career Average Salary), both above and below the CCL.

 

36

 

	(L)	 	2.5% Integrated Benefit Formula Without Career Average
Minimum
	 
	 	 	The product of:

	 	(1)	 	2.0% of the Member’s High-5 (or High-3, or, effective on and after March 27,
2006, Career Average, as designated by the Employer) Salary up to the CCL, plus 2.5% of
the Member’s High-5 (or High-3 or Career Average, as applicable) Salary above the CCL,
multiplied by

	 	(2)	 	The number of years and months of Benefit Service, up to a maximum, if any,
specified by the Employer, of 20, 25, 30 or 35 years; provided that no maximum number
of years and months of Benefit Service will apply if the Benefit Formula is based on
Career Average Salary. In the event a Member has completed more than 35 years of
Benefit Service as of his Normal Retirement Date and the Employer has not specified a
maximum number of years of Benefit Service, or a maximum number of years of Benefit
Service does not apply, the Member’s Retirement Allowance, with respect to Benefit
Service in excess of 35 years, will be equal to 2.5% of the Member’s High-5 (or High-3
or, if Career Average Salary is used in the formula above, Career Average) Salary, both
above and below the CCL. At the Employer’s election, with respect to Benefit Service
completed prior to the Employer’s adoption of the integrated benefit formula provided
in this Section 1(L), the Retirement Allowance computed with respect to such Benefit
Service shall be determined by applying an annual accrual rate of 2.5% of the Member’s
High-5 Salary (or High-3 Salary or, if Career Average Salary is used in the formula
above, Career Average Salary), both above and below the CCL.

	(M)	 	2.75% Integrated Benefit Formula Without Career Average Minimum
	 
	 
	 	 	The
product of:
	 

	 	(1)	 	2.25% of the Member’s High-5 (or High-3, or, effective on and after March 27,
2006, Career Average, as designated by the Employer) Salary up to the CCL, plus 2.75%
of the Member’s High-5 (or High-3 or Career Average, as applicable) Salary above the
CCL, multiplied by

 

37

 

	 	(2)	 	The number of years and months of Benefit Service, up to a maximum, if any,
specified by the Employer, of 20, 25, 30 or 35 years; provided that no maximum number
of years and months of Benefit Service will apply if the Benefit Formula is
based on Career Average Salary. In the event a Member has completed more than 35 years of Benefit Service as of his Normal Retirement Date and the Employer
has not specified a maximum number of years of Benefit Service, or a maximum number
of years of Benefit Service does not  apply, the Member’s Retirement Allowance, with
respect to Benefit Service in excess of 35 years, will be equal to 2.75% of the
Member’s High-5 (or High-3 or, if Career Average Salary is used in the formula
above, Career Average) Salary, both above and below the CCL. At the Employer’s
election, with respect to Benefit Service completed prior to the Employer’s adoption
of the integrated benefit formula provided in this Section 1(M), the Retirement
Allowance computed with respect to such Benefit Service shall be determined by
applying an annual accrual rate of 2.75% of the Member’s High-5 Salary (or High-3
Salary or, if Career Average Salary is used in the formula above, Career Average
Salary), both above and below the CCL.

	(N)	 	3% Integrated Benefit Formula Without Career Average Minimum

	 	 	The product of:

	 	(1)	 	2.5% of the Member’s High-5 (or High-3, or, effective on and after March 27,
2006, Career Average, as designated by the Employer) Salary up to the CCL, plus 3.0% of
the Member’s High-5 (or High-3 or Career Average, as applicable) Salary above the CCL,
multiplied by

	 	(2)	 	The number of years and months of Benefit Service, up to a maximum, if any,
specified by the Employer, of 20, 25, 30 or 35 years; provided that no maximum number
of years and months of Benefit Service will apply if the Benefit Formula is based on
Career Average Salary. In the event a Member has completed more than 35 years of
Benefit Service as of his Normal Retirement Date and the Employer has not specified a
maximum number of years of Benefit Service, or a maximum number of years of Benefit
Service does not apply, the Member’s Retirement Allowance, with respect to Benefit
Service in excess of 35 years, will be equal to 3% of the Member’s High-5 (or High-3
or, if Career Average Salary is used in the formula above, Career Average) Salary, both
above and below the CCL. At the Employer’s election, with respect to Benefit Service
completed prior to the Employer’s adoption of the integrated benefit formula provided
in this Section 1(N), the Retirement Allowance computed with respect to such Benefit
Service shall be determined by applying an annual accrual rate of 3.0% of the
Member’s High-5 Salary (or High-3 Salary or, if Career Average Salary is used in the
formula above, Career Average Salary), both above and below the CCL.

 

38

 

	(O)	 	Integrated Fixed Percentage Formulas with 25 Years of Benefit Service Requirement

	 	 	The product of:

	 	(1)	 	Any percentage commencing with 25% and not exceeding 62.5% (in increments of
6.25%), as designated by the Employer, of the Member’s High-5 (or High-3, as designated
by the Employer) Salary up to the CCL, plus

	 	(2)	 	The sum of (i) the percentage designated in paragraph (1) of this Subsection
(O) and (ii) 12.5% multiplied by the Member’s High-5 (or High-3) Salary above the CCL,
for each Member who completes 25 years of Benefit Service as of his Normal Retirement
Date.

	 	 	If a Member does not complete 25 years of Benefit Service as of his Normal Retirement Date,
his Retirement Allowance under this Section 1(O) shall be multiplied by a fraction, the
numerator of which is the number of years and months of Benefit Service completed as of his
Normal Retirement Date and the denominator of which is 25.

	(P)	 	Integrated Fixed Percentage Formulas with 30 Years of Benefit Service Requirement

	 	 	The product of:

	 	(1)	 	Any percentage commencing with 30% and not exceeding 75% (in increments of
7.5%), as designated by the Employer, of the Member’s High-5 (or High-3, as designated
by the Employer) Salary up to the CCL, plus

	 	(2)	 	The sum of (i) the percentage designated in paragraph (1) of this Subsection
(P) and (ii) 15% multiplied by the Member’s High-5 (or High-3) Salary above the CCL,
for each Member who completes 30 years of Benefit Service as of his Normal Retirement
Date.

	 	 	If a Member does not complete 30 years of Benefit Service as of his Normal Retirement Date
his Retirement Allowance under this Section 1(P) shall be multiplied by a fraction, the
numerator of which is the number of years and months of Benefit
Service completed as of his Normal Retirement Date and the denominator of which is 30.

 

39

 

	(Q)	 	Integrated Fixed Percentage Formulas with 35 Years of Benefit Service Requirement
	 
	 	 	The
product of:

	 	(1)	 	Any percentage commencing with 35% and not exceeding 82.5% as designated by the
Employer of the Member’s High-5 (or High-3, as designated by the Employer) Salary up to
the CCL,

	 	(2)	 	The sum of (i) the percentage designated in paragraph (1) of this Subsection
(Q) and (ii) 17.5% multiplied by the Member’s High-5 (or High-3) Salary above the CCL
for each Member who completes 35 years of Benefit Service as of his Normal Retirement
Date.

	 	 	 	If a Member does not complete 35 years of Benefit Service as of his Normal
Retirement Date, his Retirement Allowance under this Section 1(Q) shall be
multiplied by a fraction, the numerator of which is the number of years and months
of Benefit Service completed as of his Normal Retirement Date and the denominator of
which is 35.

	(R)	 	Cash Balance Accounts

	 	(1)	 	In lieu of the benefits provided under any other Section of this
Subsection 1, an Employer may elect to provide, for its eligible Members, benefits
under this Section 1(R). A Member’s accrued benefit under this Section 1(R) shall be
his Cash Balance Account calculated hereunder with hypothetical interest allocations to
normal retirement age and then converted to the normal Retirement Allowance, but
subject to the additional and minimum benefit provisions of (3) below. The Cash Balance
Account is not an actual account to which Pentegra DB Plan assets and investment income
are allocated. A Member’s Cash Balance Account balance shall be credited with interest
at the rate specified in Subsection (2)(iv) to the Member’s Retirement Date. The normal
Retirement Allowance at the Member’s normal retirement age shall be computed using the
following actuarial basis:

	 	(i)	 	For Employers that offer a lump sum payment option under the Pentegra DB
Plan, the “applicable mortality table” under Section 417(e)(3)(A)(ii)(I) of the IRC
and the interest rate which shall be the yield on 30-year Treasury Constant
Maturities (or such other analogous rate prescribed by the IRS); or

 

40

 

	 
	 	(ii)	 	for Employers that do not offer a lump sum payment option under the
Pentegra DB Plan, the George B. Buck 1989 unisex mortality table and eight (8%)
percent interest.

	 	 	 	No employee contributions shall be required or allowed to a Cash Balance Account.

	 	(2)	 	A Member’s Cash Balance Account consists of the sum of the following
hypothetical credits: a “Basic Employer Allocation,” a “Supplemental Employer Allocation”
(if any), an “Initial Employer Allocation” (if any) and an “Interest Allocation” credited
on the Cash Balance Account balance. These hypothetical allocations are determined as
follows:

	 	(i)	 	Basic Employer Allocation. For each calendar year in which the
Member has Salary, his Cash Balance Account shall receive, as of the last day of
the calendar year, an allocation equal to the product of Salary and a percentage
determined under one of the schedules enumerated below, as designated by the
Employer,

	 	(a)	 	Uniform Allocation Percentage. Any percentage
between 4% and 15% (determined in 0.5% increments), as designated by the
Employer.
	 
	 	(b)	 	Graded Allocation Percentage Depending on Attained Age
with Increases of 1%. An initial percentage of 3% or more (in increments
of 1%), as designated by the Employer, for ages 0 to 29, increasing by 1% for
each “n” year age group thereafter but with no further increase after age 60.
“n” may be 5 or 10 years as designated by the Employer. The attained age for
this purpose will be determined as the Member’s age on his birthday in the
year.

 

41

 

	 	(c)	 	Graded Allocation Percentage Depending on Attained Age with Increases of 2%.
An initial percentage of 6% or more (in increments of 1%), as designated by the Employer,
for ages 0 to 29, increasing by 2% for each 10 year age group thereafter but with no
further increase after age 60. The attained age for this purpose will be determined as
the Member’s age on his birthday in the year.
	 
	 	(d)	 	Graded Allocation Percentage Depending on Attained Age with Increases of 1%/2%. An
initial percentage of 4% or more (in increments of 1%), as designated by the Employer, for
ages 0 to 29, increasing by 1% for each of the next four 5-year age groups and by 2% for each
10-year age group thereafter but with no further increase after age 60. The attained age for
this purpose will be determined as the Member’s age on his birthday in the year.
	 
	 	(e)	 	Graded Allocation Percentage Depending on Years of Benefit Service, with Increases of
1%. An initial percentage of 3% or more (in increments of 1%), as designated by the
Employer, for the first “n” years of Benefit Service, increasing by 1% for each “n” years
thereafter but with no further allocation after the “m“th year of Benefit Service. “n” may be
5 or 10 years, and “m” may be 20, 25, 30, 35, 40 or unlimited years of Benefit Service, both
“n” and “m” as designated by the Employer.
	 
	 	(f)	 	Graded Allocation Percentage Depending on Years of Benefit Service, with Increases of
2%. An initial percentage of 6% or more (in increments of 1%), as designated by the
Employer, for the first 10 Years of Benefit Service, increasing by 2% for each “n” years
thereafter but with no further allocation after the “m“th year of Benefit Service. “n” may be
5 or 10 years and “m” may be 20, 25, 30, 35, 40 or unlimited years of Benefit Service, as
designated by the Employer.

 

42

 

	 	(g)	 	Graded Allocation Percentage Depending on Years of Benefit Service with Increases of
1%/2%. An initial percentage of 4% or more (in increments of 1%), as designated by the
Employer, for
the first 5 Years of Benefit Service, increasing by 1% for each 5 years thereafter up to
20 years of Benefit Service, and increasing by 2% for each 10 years thereafter, but with
no further allocation after the “m“th year of Benefit Service. “m” may be 20, 25, 30, 35,
or 40 or unlimited years of Benefit Service, as designated by the Employer.
	 
	 	(h)	 	Graded Allocation Percentage Depending on Age-Service Points, with Increases of
1%. An initial percentage of 3% or more (in increments of 1%), as designated by the
Employer, for any year in which the Member’s points total 29 or less, plus 1% for each
additional 10 points, up to a maximum of “m” points. A Member’s points in a Plan Year shall be
the sum of his age on his birthday in the year plus his whole years of Benefit Service as of
the end of the year. “m” may be 60, 70, 80, 90 or 100, as designated by the Employer.
	 
	 	(i)	 	Graded Allocation Percentage Depending on Age-Service Points, with Increases of
2%. An initial percentage of 6% or more (in increments of 1%), as designated by the
Employer, for any year in which the Member’s points total 29 or less, plus 2% for each
additional 10 points up to a maximum of “m” points. A Member’s points in a Plan Year shall be
the sum of his age on his birthday in the year plus his whole years of Benefit Service as of
the end of the year. “m” may be 60, 70, 80, 90 or 100, as designated by the Employer.
	 
	 	(j)	 	Graded Allocation Percentage Depending on Age-Service
Points, with Increases of 1%/2%. An initial percentage of 4% or more (in
increments of 1%), as designated by the Employer, for any year in which the Member’s
points total 29 or less, plus 1% for each additional 10 points up to a total of 69
points, plus 2% for each additional 10 points up to a maximum of “m” points. A Member’s
points in a Plan Year shall be the sum of his age on his birthday in the year plus his
whole years of Benefit Service as of the end of the year. “m” may be 60, 70, 80, 90 or
100, as designated by the Employer.

 

43

 

	 	(ii)	 	Supplemental Employer Allocation. For each Plan Year in which the
Member has Salary in excess of the taxable wage base (as defined for purposes of the Old
Age Survivor Disability Insurance portion of the Federal Insurance Contribution Act tax)
for such year, his Cash Balance Account shall receive, as of the last day of the Plan
Year, an additional 0% to 3% (in increments of 0.5%), as designated by the Employer, of
the Member’s Salary in excess of the taxable wage base in the year, (provided the
percentage chosen does not cause the Pentegra DB Plan to violate the backloading rules in
Section 411(b) of the IRC for any actual or potential Member).

	 	(iii)	 	Initial Employer Allocation. If the Employer so elects, each Member who accrued
a retirement benefit under the Pentegra DB Plan at the date on which the Cash Balance Account
becomes effective shall have his Cash Balance Account credited with an initial employer
allocation equal to the actuarial equivalent lump sum present value of his accrued benefit
under the Pentegra DB Plan, reduced by the value of any Employee contributions, with such
accrued benefit measured by the Member’s normal Retirement Allowance commencing at his Normal
Retirement Date under the Pentegra DB Plan. The initial employer allocation shall be credited
to the Member’s Cash Balance Account on the first day of the first month in which his Employer
elects to participate in this Cash Balance Account. For the purpose of this subparagraph,
actuarial equivalent shall be based upon the actuarial equivalent basis as designated by the
Employer.

	 	(iv)	 	Interest Allocation. Each plan month beginning after the Employer
elects to participate in the Cash Balance Account and prior to the date the Member
commences distribution under the Pentegra DB Plan, a Member’s Cash Balance Account shall
receive an Interest Allocation calculated as set forth below.

	 	(a)	 	The annual interest rate used for a calendar year shall be
determined as of the end of the prior calendar year and shall be one of the
following, as designated by the Employer, or 4% if greater.

 

44

 

	 	(1)	 	The discount rate on 3-month Treasury Bills with a margin of
an additional amount of 0 to 175 basis points (in 25 basis point
increments), as designated by the Employer.
	 
	 	(2)	 	The discount rate on 6-month or 12-month
Treasury Bills with a margin of an additional amount of 0 to 150
basis points (in 25 basis point increments), both as designated by
the Employer.
	 
	 	(3)	 	The yield on 1-year Treasury Constant
Maturities with a margin of an additional amount of 0 to 100 basis
points (in 25 basis point increments), as designated by the Employer.
	 
	 	(4)	 	The yield on 2-year or 3-year Treasury
Constant Maturities with a margin of an additional amount of 0 to 50
basis points (in 25 basis point increments), both as designated by
the Employer.
	 
	 	(5)	 	The yield on 5-year or 7-year Treasury
Constant Maturities with a margin of an additional amount of 0 or 25
basis points, both as designated by the Employer.
	 
	 	(6)	 	The yield on 10-year or longer
Treasury Constant Maturities as designated by the Employer.
	 
	 	(7)	 	The change in the annual rate of the
Consumer Price Index from the preceding year with a margin of an
additional amount of 0 to 3% (in 0.5% increments), as designated by
the Employer.

	 	(b)	 	Interest will be credited monthly as of the last
business day of each month. Each Member’s Cash Balance Account will be
increased by the monthly interest equivalent of the annual interest rate
selected above.

 

45

 

	 	(3)	 	Additional and Minimum Benefits. A Member whose Employer does not elect to make
an Initial Employer Allocation under (2)(iii) above shall have his accrued
benefit increased by his accrued benefit immediately prior to the date on which the
Cash Balance Account becomes effective, such additional accrued benefit being
payable pursuant to the terms of his Employer’s agreement under the Pentegra DB Plan
in effect on said date. A Member whose Employer makes an Initial Employer Allocation
under (2)(iii) shall be entitled to an accrued benefit at least equal to his accrued
benefit immediately prior to the date on which the Cash Balance Account becomes
effective, such benefit being paid pursuant to the terms of his Employer’s agreement
under the Pentegra DB Plan in effect on said date.
	 
	 	(4)	 	Special Transition Benefit. Provided that the Special Transition
Benefit does not cause the plan to discriminate in favor of Highly Compensated
Employees, the Employer may designate some or all of its Employees on the date the Cash
Balance Account becomes effective to (i) continue to accrue benefits under the prior
plan arrangement of the Employer for a designated period of time, (ii) provide an
enhanced basis for determining the Initial Employer Allocation, or (iii) provide
additional pay credits based upon a percentage of pay or based upon a percentage of pay
for each year of Benefit Service.

	(S)	 	Pension Equity Benefit

	 	(1)	 	In lieu of the benefits provided under any other Section of this Section 1, an
Employer may elect to provide, on a uniform basis for its Members, benefits under this
Section 1(S). A Member’s accrued benefit under this Section 1(S) shall be his Pension
Equity Benefit calculated hereunder, and then converted to the Member’s normal
Retirement Allowance, but subject to the additional and minimum benefit provisions of
(3) below. The normal Retirement Allowance at normal retirement age shall be computed
on the basis in Article V, Section 1(R)(1). No employee contributions shall be required
or allowed in determining the amount of a Pension Equity Benefit.
	 
	 	(2)	 	A Member’s Pension Equity Benefit consists of the sum of a “Basic Employer
Benefit,” a “Supplemental Employer Benefit” (if any) and an “Initial Employer Benefit”
(if any). These benefits are determined as follows:

	 	(i)	 	Basic Employer Benefit. The Member’s High-5
Salary or High-3 Salary, as designated by the Employer, multiplied by the
aggregate of the Member’s core percentages determined, for each year of Benefit
Service of the Member, under one of the schedules below, as designated by the
Employer.

 

46

 

	 	(a)	 	Uniform Core Percentage. Any percentage between 5% and 20% (determined in 0.25%
increments), as designated by the Employer.
	 
	 	(b)	 	Graded Core Percentage Depending on Attained Age with Increases of 1%. An initial
percentage of 3% or more (in increments of 1%), as designated by the Employer, for ages 0 to
29, increasing by 1% for each “n” year age group thereafter but with no further increase after
age 60. “n” may be 5 or 10 years as designated by the Employer. The attained age for this
purpose will be determined as the Member’s age on his birthday in the year.
	 
	 	(c)	 	Graded Core Percentage Depending on Attained Age with Increases of 2%. An initial
percentage of 6% or more (in increments of 1%), as designated by the Employer, for ages 0 to
29, increasing by 2% for each 10 year age group thereafter but with no further increase after
age 60. The attained age for this purpose will be determined as the Member’s age on his
birthday in the year.
	 
	 	(d)	 	Graded Core Percentage Depending on Attained Age with Increases of 1%/2%. An initial
percentage of 4% or more (in increments of 1%), as designated by the Employer, for ages 0 to
29, increasing by 1% for each of the next four 5-year age groups and by 2% for each 10-year
age group thereafter but with no further increase after age 60. The attained age for this
purpose will be determined as the Member’s age on his birthday in the year.
	 
	 	(e)	 	Graded Core Percentage Depending on Years of Service with Increases of 1%. An initial
percentage of 3% or more (in increments of 1%), as designated by the Employer, for the first
“n” years of Benefit Service, increasing by 1% for each “n” years thereafter but with no
further allocation after the “m”th year of
Benefit Service. “n” may be 5 or 10 years, and “m” shall be 20, 25, 30, 35, 40 or
unlimited years of Benefit Service, both “n” and “m” as designated by the Employer.

 

47

 

	 	(f)	 	Graded Core Percentage Depending on Years of Service, with Increases of 2%. An
initial percentage of 6% or more (in increments of 1%), as designated by the Employer, for the
first 10 years of Benefit Service, increasing by 2% for each 10 years thereafter but with no
further allocation after the “m“th year of Benefit Service. “m” shall be 20, 25, 30, 35, 40 or
unlimited years of Benefit Service, as designated by the Employer.
	 
	 	(g)	 	Graded Core Percentage Depending on Years of Service, with Increases of 1%/2%. An
initial percentage of 4% or more (in increments of 1%), as designated by the Employer, for the
first 5 years of Benefit Service, increasing by 1% for each 5 years thereafter up to 20 years
of Benefit Service, and increasing by 2% for each 10 years thereafter, but with no further
allocation after the “m“th year of Benefit Service. “m” shall be 20, 25, 30, 35, 40 or
unlimited years of Benefit Service, as designated by the Employer.
	 
	 	(h)	 	Graded Core Percentage Depending on Age-Service Points, with Increases of 1%.
An initial percentage of 3% or more (in increments of 1%), as designated by the Employer, for
any year in which the Member’s points total 29 or less, plus 1% for each additional 10 points,
up to a maximum of “m” points. A Member’s points in a Plan Year shall be the sum of his age on
his birthday in the year plus his whole years of Benefit Service as of the end of the year.
“m” shall be 60, 70, 80, 90 or 100, as designated by the Employer.
	 
	 	(i)	 	Graded Core Percentage Depending on Age-Service Points, with Increases of 2%.
An initial percentage of 6% or more (in increments of 1%), as designated by the Employer, for
any year in which the Member’s points total 29 or less, plus 2% for each additional 10 points.
A Member’s points in a Plan Year shall be the sum of his age on his birthday in the year plus
his whole
years of Benefit Service as of the end of the year. “m” shall be 60, 70,
80, 90 or 100, as designated by the Employer.

 

48

 

	 	(j)	 	Graded Core Percentage Depending on Age-Service
Points, with Increases of 1%/2%. An initial percentage of 4% or more (in
increments of 1.0%), as designated by the Employer, for any year in which the
Member’s points total 29 or less, plus 1% for each additional 10 points up to
a total of 69 points, plus 2% for each additional 10 points. A Member’s points
in a Plan Year shall be the sum of his age on his birthday in the year plus
his whole years of Benefit Service as of the end of the year. “m” shall be 60,
70, 80, 90 or 100, as designated by the Employer.

	 	(ii)	 	Supplemental Employer Benefit. The excess of the Member’s High-5
Salary or High-3 Salary, as designated by the Employer under (2)(i) above, over the
Member’s CCL multiplied by the Member’s Excess Percentage. The Member’s Excess
Percentage shall be calculated as 0% to 3% (in increments of 0.5%), as designated
by the Employer (provided the percentage chosen does not cause the Pentegra DB Plan
to violate the backloading rules of IRC Section 411(b) for any actual or potential
Member), for each year of Benefit Service of the Member.
	 
	 	(iii)	 	Initial Employer Benefit. If the Employer so elects, each
Member who accrued a retirement benefit under the Pentegra DB Plan at the date on
which the Pension Equity Benefit becomes effective shall have the aggregate of his
Core Percentages and the aggregate of his Supplemental Percentages increased to
reflect what the percentages would have been had the Pension Equity Benefit been in
effect during all the Member’s years of Benefit Service.

	 	(3)	 	Additional and Minimum Benefits. A Member whose Employer does not elect to make
an initial employer benefit allocation under (2)(iii) above shall have his accrued benefit
increased by his accrued benefit immediately prior to the date on which the Pension Equity
Benefit becomes effective, such additional accrued benefit being payable pursuant to the terms
of his Employer’s agreement under the plan on said date. A Member whose Employer makes an
initial employer benefit allocation under (2)(iii) shall be entitled to an accrued
benefit at least equal to his accrued benefit immediately prior to the date on which
the Pension Equity Benefit becomes effective, such benefit being paid pursuant to
the terms of his Employer’s agreement under the Pentegra DB Plan in effect on said
date.

 

49

 

	 	(4)	 	Special Transition Benefit. Provided that the Special Transition
Benefit does not cause the Pentegra DB Plan to discriminate in favor of Highly
Compensated Employees, the Employer may designate some or all of its Employees on the
date the Pension Equity Benefit becomes effective to continue to accrue benefits under
the prior plan arrangement of the Employer under the Pentegra DB Plan for a designated
period of time.

For an Employer which had elected an integrated benefit formula prior to July 1, 1989, and which
elects any of the integrated benefit formulas described in Subsection (E), (F), (G), (H), (I), (J),
(K), (L), (M), (N), (O), (P), or (Q) of this Section 1, if a Member’s Retirement Allowance
determined under the prior integration formula as of June 30, 1989 exceeds the Member’s Retirement
Allowance determined under the applicable integration formula described in Subsection (E), (F),
(G), (H), (I), (J), (K), (L), (M), (N), (O), (P), or (Q), then the higher Retirement Allowance will
be payable.

Notwithstanding anything in this Section 1 to the contrary, in no event may an Employer’s election
to provide any of the benefit formulas described in this Section 1 reduce a Member’s accrued
benefit below the amount of such accrued benefit determined as of the day immediately preceding the
effective date for the Employer’s election of such a benefit formula under this Section 1. In
addition, a Member’s Retirement Allowance determined under the applicable integration formula
described in Subsection (E), (F), (G), (H), (I), (J), (K), (L), (M), (N), (O), (P), (Q), and (S)
shall conform to the cumulative permitted disparity limit and the annual overall permitted
disparity limit as provided under the IRS Regulations.

Should an Employer elect a benefit formula under this Section 1 which provides that its Member’s
Retirement Allowance will be calculated based upon Career Average Salary, the Employer may, at its
option, elect to recalculate the Member’s Salary under the Pentegra DB Plan based upon the Member’s
High-5 Salary or High-3 Salary, as designated by the Employer, for Benefit Service accrued to the
effective date of such amendment, provided that in no event shall the Member’s recalculated benefit
be less than the benefit calculated based upon the Member’s Career Average Salary for the benefit
accrued to the date of such amendment.

 

50

 

SECTION 2. EARLY RETIREMENT FACTORS

	(A)	 	An Employer shall designate early retirement factors to determine a Member’s early
retirement benefits or the Employer shall adopt one of the early retirement factor tables
(with interpolation made to the nearest month) provided in Appendix E and attached hereto,
except that if the Employer has adopted either the Cash Balance Account or the Pension
Equity Benefit, the early retirement benefits shall be determined in accordance with the
following paragraph.
	 
	 	 	A Retiree’s Cash Balance Account or Pension Equity Benefit shall be paid in accordance with
the normal Retirement Allowance designated by the Employer based upon the actuarial
equivalent basis provided in Article V, Section 1(R)(1).
	 
	 	 	If a Retiree is married at the time his Retirement Allowance commences under this Section,
the Equivalent Value of his Retirement Allowance shall be paid as a qualified joint and
survivor annuity with his spouse as Contingent Annuitant under Option 2 or 3 of Section 1 of
Article VI as designated by the Retiree, unless such Spouse consents in writing to permit
the Retiree to elect a different form of allowance. If a Retiree is not married at the time
his Retirement Allowance commences, his Retirement Allowance shall be paid under the plan’s
normal form of payment unless an optional form of allowance as described in Section 1 of
Article VI is elected by the Retiree. Where an Employer has adopted a lump sum payment
option and a Member elects to receive his Retirement Allowance attributable to his Cash
Balance Account in the form of a lump sum payment, such payment shall be equal to the
Retiree’s Cash Balance Account balance. Notwithstanding, in the event that the annual
interest rate elected by the Employer under Article V, Section (1)(R)(2)(iv) falls below 4%
in the year of the distribution, a Member shall be entitled to the greater of (1) his Cash
Balance Account balance and, (2) the lump sum calculated by projecting his Cash Balance
Account balance with a 4% interest to the Member’s Normal Retirement Date and discounted
back to the date of distribution with such annual interest rate without regard to the 4%
minimum.
	 
	 	 	Where an Employer has adopted a lump sum payment option and a Member elects to receive his
Retirement Allowance attributable to his Pension Equity Benefit in the form of a lump sum
payment, such payment shall be equal to the Retiree’s Pension Equity Benefit.

 

51

 

	(B)	 	If an Employer provides an integrated benefit formula, as described in Subsection (E),
(F), (G), (H), (I), (J), (K), (L), (M), (N), (O), (P), or (Q) of Section 1 of this Article
V, and adopts the early retirement factor table described in Table I(B) or (C), II(B) or (C)
or III(B) or (C) of Appendix E, then the early retirement factor with respect to a Member’s
Retirement Allowance attributable to Salary up to the CCL and computed in accordance with
the accrual rate described in Subsection (E)(1), (F)(1), (G)(1), (H)(1), (I)(1), (J)(1),
(K)(1), (L)(1), (M)(1), (N)(1), (O)(1), (P)(1), or Q(1) of Section 1 of this Article V
(whichever shall apply), but only with respect to such Salary, shall be the applicable early
retirement factor described in Appendix A.
	 
	(C)	 	Any Employer may, at its option, elect to provide enhanced early retirement factors effective
upon a Change of Control of the Employer.

SECTION 3. DISABILITY RETIREMENT BENEFIT

	(A)	 	If an Employer has provided this benefit since its Commencement Date, then each of its
Members —

	 	(i)	 	who is not an inactive Member or is not on a leave of absence, and for
whom contributions have not been discontinued,
	 
	 	(ii)	 	who is separated from active employment by reason of disability after the
earlier of one year of Membership Service or five years of Benefit Service but
before attainment of age 65, and
	 
	 	(iii)	 	who is certified by physicians designated by the Pentegra DB Plan to have
a physical or mental impairment which (a) prevents him from doing any substantial
gainful activity for which he is fitted by education, training or experience, and (b)
is expected to last at least 12 months from the date of such separation or to result in
death, shall, upon notice to the Pentegra DB Plan within 13 months of such separation
date, be retired as of his Disability Retirement Date. (Receipt of proof satisfactory
to the Pentegra DB Plan within 13 months after the date of such separation that the
Member is eligible for, or is receiving, disability insurance benefits under Title II
of the Federal Social Security Act will be deemed presumptive evidence of entitlement
to a disability Retirement Allowance under this Subsection (A).)

 

52

 

	 	 	If an Employer adopts this benefit subsequent to its Commencement Date, then it shall be
effective for each of its Members, subject to the above conditions, no earlier than one year
after notification to the Pentegra DB Plan of its adoption. Effective as of December 5,
2003, notwithstanding anything to the contrary in this Article V, Section 3(A), a Member who
would otherwise be eligible for a disability Retirement Allowance pursuant to this Section 3
if the Member had not been on a leave of absence immediately before his separation from
active employment will be eligible for a disability Retirement Allowance pursuant to this
Section 3, if immediately before the Member’s separation from active employment by reason of
disability, the Member was on a medical leave of absence related to the physical or mental
impairment that would otherwise cause the Member to be eligible for such disability
Retirement Allowance.
	 
	(B)	 	The annual disability Retirement Allowance shall be the normal Retirement Allowance
(determined under Article V, Section 1) on the basis of the Member’s Salary and Benefit
Service to his Disability Retirement Date, but shall not be less than 30% of his High-5
Salary.
	 
	 	 	In no event shall the disability Retirement Allowance exceed the Retirement Allowance that
the disabled Member would have received if he had continued in Service to his Normal
Retirement Date and his Salary at disability had continued to such date.
	 
	(C)	 	The Board may require any disability Retiree who has not attained age 65 to demonstrate
continuing eligibility for disability retirement benefits as often as once a year. If such a
Retiree refuses or cannot demonstrate to the satisfaction of the Board that he continues to be
disabled within the definition of Subsection (A) of this Section 3, then his disability
allowance shall be discontinued. The disability Retiree’s disability Retirement Allowance will
also cease if and when he returns to substantial gainful activity for which he is fitted by
education, training or experience. In either case, it may be resumed if it is subsequently
determined by the Board that the conditions of Subsection (A) of this Section 3 are again
satisfied.
	 
	(D)	 	If the Employer has adopted either the Cash Balance Account or the Pension Equity Benefit,
then a Member who would otherwise qualify as disabled under (A) above shall not have his
disability benefit calculated under subsection (B), but shall instead be treated as eligible
for an early retirement benefit under Article V, Section 2. In lieu of the benefit described
in the preceding sentence, an eligible Member may elect to receive the disability benefit to
which he would have been entitled had he become disabled on the date his Employer adopted either the Cash Balance Account or the Pension
Equity Benefit but without regard to the 30% of Salary minimum described in subsection (B)
above. If the alternative benefit described in the preceding sentence is elected, the Cash
Balance Account or the Pension Equity Benefit will continue to grow as if the Member had
terminated with a vested benefit which he chose to defer.

 

53

 

SECTION 4. ADDITIONAL DEATH BENEFITS

	(A)	 	In lieu of the basic death benefit, if any, provided under Article IV, Section 3(A), an
Employer may adopt an active service death benefit which is payable upon the death of a Member
in Service, for whom contributions have not been discontinued, to his Beneficiary in a lump
sum equal to (i) plus (ii):

	 	(i)	 	100% of the Member’s last 12 months’ Salary, plus an additional 10% of
such Salary for each year of Benefit Service until a maximum of 300% is attained for 20
or more years of Benefit Service. If death occurs prior to the completion of one year
of Benefit Service, this part of the benefit shall be 100% of the Member’s annual
Salary as of his Enrollment Date if his Salary is determined under Section (43)(A) of
Article I, or his annualized Salary based on all completed months of Benefit Service
prior to death if Salary is determined under Section (43)(B) or Section (43)(C) of
Article I.

	 	(ii)	 	The Member’s Accumulated Contributions, if any.

	 	 	In no event shall such lump sum be less than the lump sum which would have been payable
under either Article IV, Section 3(A) or Article V, Section 4(B), whichever is
applicable.
	 
	(B)	 	In lieu of the basic death benefit, if any, provided under Article IV, Section 3(A), an
Employer (or a successor to such Employer) which was participating in the Pentegra DB Plan as
of June 30, 1983 may adopt the “12 Times” retirement benefit which is payable upon the death
of a Retiree, who had not elected an optional form of payment under Article VI, in a lump sum
equal to the excess, if any, of (i) over (ii):

	 	(i)	 	An amount equal to 12 times the Retiree’s annual allowance immediately
prior to the commencement of his Retirement Allowance, or as of the first day of the
month in which his death occurred if he died before having received any payment of such
allowance.

 

54

 

	 	(ii)	 	The sum of the Retirement Allowance payments he had received, if any.

	 	 	This benefit shall also be payable upon the death of a Member who was eligible for early
retirement at the time of death in lieu of the benefit which would have been payable under
Article IV, Section 3(A).
	 
	(C)	 	In lieu of the basic death benefit, if any, provided under Article IV, Section 3(A), an
Employer may adopt an active service death benefit which is payable upon the death of a
Member in Service, for whom contributions have not been discontinued, to his Beneficiary in
a lump sum equal to (i) a multiple of the Member’s projected monthly Retirement Allowance
which shall be not less than 50 times and not greater than 100 times the projected monthly
Retirement Allowance plus (ii) the Member’s Accumulated Contributions, if any.
	 
	 	 	In no event shall such lump sum be less than the lump sum which would have been payable
under either Article IV, Section 3(A) or Article V, Section 4(B), whichever is
applicable.
	 
	 	 	Should an Employer elect to provide the active service death benefit under this subsection
(C) of Section 4, such provision shall not be effective until one (1) year following the
adoption by the Employer unless the Employer provided such death benefit prior to the
Employer’s Commencement Date.

SECTION 5. RETIREMENT ADJUSTMENT PAYMENT

	(A)	 	An Employer which was participating as of June 30, 1983 may provide this benefit to those of
its Members who (i) were enrolled prior to July 1, 1983 and (ii) retire after attainment of
age 55.
	 
	(B)	 	The Retirement Adjustment Payment shall be a single lump sum equal to three monthly
installments of his Retirement Allowance (before any optional modification) determined and
payable as of the date his Retirement Allowance payments commence. If a Retiree, who would
otherwise be eligible to receive such a payment, dies prior to such date, his Retirement
Adjustment Payment shall be determined as though his Retirement Allowance payments had
commenced as of the first day of the month in which his death occurred, and shall be payable
to his Beneficiary.

 

55

 

SECTION 6. POST-RETIREMENT SUPPLEMENTS

	(A)	 	(1) Annual 1%, 2% or 3% Increment:
	 
	 	 	Subject to Section 11.1, an Employer may provide an annual increment which shall be
paid to each of its Retirees who has attained age 66 and is receiving his annual
Retirement Allowance. Each annual increment shall be an amount equal to 1%, 2% or
3%, as the Employer may elect, of the Retiree’s annual Retirement Allowance
multiplied by the number of years from the calendar year in which he attained age 65
to the current year at the end of which such increment is payable. Upon the
Retiree’s death, no further amount shall be payable in respect of this benefit,
except that if he had elected a Contingent Annuitant under Article VI who is alive
on the later of (a) the date of the Retiree’s death or (b) the date the Retiree
would have attained age 66, such Contingent Annuitant shall thereafter be entitled
to an annual increment equal to 1%, 2% or 3%, as the case may be, of the Contingent
Annuitant’s annual allowance multiplied by the number of years from the calendar
year in which the Retiree had attained age 65 (or would have attained age 65 if he
died prior thereto) to the current year at the end of which such increment is
payable. Upon the Contingent Annuitant’s death, no further amount shall be payable
in respect of this benefit.
	 
	(2)	 	Subject to Section 11.1, an Employer may alternatively provide an annual
increment which shall be paid to each of its Retirees who has retired on an Early
Retirement Date (or retired and subsequently attained the age in the Early Retirement
Date) as specified by the Employer and is receiving his annual Retirement Allowance.
Each annual increment shall be an amount equal to 1%, 2% or 3%, as the Employer may
elect, of the Retiree’s annual Retirement Allowance multiplied by the number of years
from the calendar year in which he commences benefits to the current year at the end of
which such increment is payable. Alternatively, the annual increment shall be an amount
equal to 1%, 2% or 3%, as the Employer may elect, of the Employee’s annual Retirement
Allowance each year prior to the attainment of age 66 and thereafter multiplied by the
number of years from the calendar year in which he attained age 65 to the current year
at the end of which the increment is payable. Further, if an Employer has elected that
this subsection apply, notwithstanding the foregoing, the Employer shall 

 

56

 

	 	 	 	provide an
annual increment that shall be paid to each of its Retirees who commence benefits after the attainment of age 65 and is receiving his
annual Retirement Allowance. That annual increment shall be an amount equal to 1%,
2% or 3%, as the Employer elects, of the Retiree’s annual Retirement Allowance
multiplied by the number of years from the calendar year in which the Retiree
attained age 65 to the current year at the end of which such increment is payable.
Upon the Retiree’s death, no further amount shall be payable in respect of this
benefit, except that if he had elected a Contingent Annuitant under Article VI who
is alive on the later of (a) the date of the Retiree’s death or (b) the date the
Retiree’s annual increment would have been payable had the retiree who had retired
eligible for such increment lived, such Contingent Annuitant shall thereafter be
entitled to an annual increment equal to 1%, 2% or 3%, as the case may be, of the
Contingent Annuitant’s annual allowance multiplied by the number of years from the
calendar year in which the Retiree commenced benefits (or had attained age 65 if the
Retiree commences benefits after age 65, or would have attained age 65 if he died
without having commenced benefits prior thereto) to the current year at the end of
which such increment is payable (or, alternatively, equal to 1%, 2% or 3%, as the
case may be, of the Contingent Annuitant’s annual allowance each year perior to when
the Retiree would have attained age 66 and thereafter multiplied by the number of
years from the calendar year in which the Retiree attained age 65 or would have
attained age 65 to the current year at the end of which the increment is payable).
Upon the Contingent Annuitant’s death, no further amount shall be payable in respect
of this benefit.

	(B)	 	Single Fixed Percentage Adjustment:
	 
	 	 	Subject to Section 11.1, an Employer may provide, as of any January 1, a fixed percentage
supplement for each of its then eligible Retirees, determined under one of the following
formulas:

	 	(a)	 	1% or more of the annual Retirement Allowance for each completed year of
retirement after attainment of the minimum under one of the following formulas.
	 
	 	(b)	 	A single percentage uniformly applicable to all those eligible.

 

57

 

	 	 	For purposes of this Subsection (B), an eligible Retiree is one who (i) has retired prior to
the effective date of the supplemental benefit described in this Subsection (B) and (ii) has
attained the minimum age specified by his Employer. Such minimum age may
be any age not less than 45 and not greater than 66, and shall apply uniformly to all
Retirees of the Employer. The supplement shall be paid each January beginning with the
effective date (providing the Retiree has begun receiving his annual allowance) and ending
in the year in which the Retiree dies, except that if he had elected a Contingent Annuitant
under Article VI who is alive on the date of the Retiree’s death, such Contingent Annuitant
shall thereafter be entitled to an annual supplement determined by multiplying the fixed
percentage by the Contingent Annuitant’s annual allowance and ending in the year in which
the Contingent Annuitant dies. If the fixed percentage supplement provided for a Retiree is
not paid due to the Retiree’s deferral of commencement of allowance payments, it shall be
paid beginning with the January 1 coincident with or following the date his Retirement
Allowance payments commence and shall be determined by multiplying the fixed percentage
provided by the Employer by the annual Retirement Allowance determined at the time payments
commence.

SECTION 7. SUPPLEMENTAL EARLY RETIREMENT WINDOW BENEFIT

	(A)	 	Subject to the provisions of this Section 7 and Section 11.1, an Employer may provide for
each Member who has satisfied the eligibility requirements specified in Subsection (D) of this
Section 7, a supplemental early retirement window benefit determined pursuant to the formula
elected in Subsection (E) of this Section 7 and payable in accordance with Articles IV and V.
Any such supplemental early retirement window benefit shall not be deemed to be in lieu of any
of the other additional benefits described in this Article V. A Member who does not meet the
eligibility requirements of Subsection (D) of this Section 7 or who does not terminate
employment within the time period described in Subsection (B) of this Section 7 will not be
entitled to any additional benefits pursuant to this Section 7.
	 
	(B)	 	The Employer shall select a time period of not less than 45 days nor more than 90 days from
the effective date of its adoption of the supplemental early retirement window benefit during
which an eligible Member may elect such benefit. A Member must agree to retire during the
period described in the preceding sentence in order to be eligible for the benefit, except
that an Employer may, at its option, permit Employees who elect an early retirement window
benefit to terminate employment at any time (or at any time during a period of time designated
by the Employer) no later than six (6) months after the close of the window period described
in the preceding sentence or, alternatively, to irrevocably designate a uniform termination
date no later than six (6) months after the close of such window period.

 

58

 

	(C)	 	In order for an Employer to provide a supplemental early retirement window benefit
pursuant to this Section 7, the following conditions must be satisfied:

	 	(1)	 	At least five (5) Members must be eligible for the supplemental early
retirement window benefit during the election period described in Subsection (B) of
this Section 7;
	 
	 	(2)	 	The Employer must comply with all procedural rules established by the
Pentegra DB Plan with regard to the implementation and operation of such
supplemental early retirement window benefit;
	 
	 	(3)	 	The Employer must indemnify the Pentegra DB Plan in a manner satisfactory to
the Pentegra DB Plan against any and all losses and expenses incurred by the Pentegra
DB Plan (including reasonable legal fees) arising out of the Employer’s adoption of the
early retirement window benefit; and
	 
	 	(4)	 	Any other conditions which the Pentegra DB Plan, the IRS or any other
governmental authority might require.

	(D)	 	An Employer must establish an eligibility requirement, uniformly applicable to all of its
Employees, which must be satisfied by a Member as of the effective date of the adoption of the
supplemental early retirement window benefit in order for the Member to be eligible for such
benefit. The eligibility requirement referred to in the preceding sentence can be:

	 	(1)	 	A minimum age of not less than 45;
	 
	 	(2)	 	A minimum total of age and Vesting Service of not less than 70; or
	 
	 	(3)	 	A minimum age of not less than 45 and a minimum number of years of Vesting
Service where the specified years of Vesting Service of not less than five (5).

	 	 	Notwithstanding anything in this Subsection (D) of this Section 7 to the contrary, an
Employer may elect to restrict the eligibility for the supplemental early retirement window
benefit under this Section 7 to (i) those Members who are Non-highly Compensated Employees,
(ii) those Members who are not inactive Members, as described in Article X, Section 3, (iii)
those Members employed at a bona-fide geographical location or in a certain job function or
job classification designated by the Employer, (iv) those Highly Compensated Employees who
are excluded by their title at
the election of the Employer, or (v) those Members who provide the Employer with a valid
waiver of certain legal rights of the Member, provided that in such case the Employer shall
have the sole responsibility to determine whether any such waiver is valid and enforceable
under applicable law.

 

59

 

	(E)	 	Upon the termination of employment of an eligible Member who meets the eligibility
requirements of Subsection (D) of this Section 7 within the period of time specified in
Subsection (B) of this Section 7, the annual Retirement Allowance otherwise determined under
Article IV and this Article V for such Member will be increased by the difference, if any,
that results from determining such benefit based on one or more of the following:

	 	(1)	 	the Benefit Service and Vesting Service credited to the Member as of his
termination date, plus 1 to 10 years, as may be designated by the Employer in its
election of this feature;
	 
	 	(2)	 	the early retirement reduction percentage (if any) based upon the Member’s
actual age at commencement of his Retirement Allowance plus 1 to 10 years, as may be
designated by the Employer in its election of this feature;
	 
	 	(3)	 	no early retirement reduction, or a 1.5% or 3% early retirement reduction
percentage for each year the Retirement Allowance commences before the Member’s Normal
Retirement Date, as may be designated by the Employer in its election of this feature;
and/or
	 
	 	(4)	 	the addition of a fixed dollar amount, as may be designated by the Employer, to
the Member’s normal Retirement Allowance payable at the Member’s age 65.

	 	 	The adoption by an Employer of any of the features described in this Subsection (E) of this
Section 7 shall apply uniformly to all Members employed by such Employer who meet the
eligibility requirements of Subsection (D) of this Section 7. In no event shall an increase
in a Member’s Retirement Allowance under the provisions of this Section 7 be deemed to
increase such Member’s Vesting Service or Benefit Service for any other purposes under the
Comprehensive Retirement Program. Notwithstanding the foregoing in this Subsection (E) of
this Section 7, if an Employer has elected to provide normal retirement benefits on the
basis of one of the integrated benefit formulas
described in Subsection (E), (F), (G), (H), (I), (J), (K), (L), (M), (N), (O), (P), or (Q)
of Section 1 of this Article V, the special early retirement reduction provided in Paragraph
(2) of this Subsection (E) and the elimination of an early retirement reduction factor
provided in Paragraph (3) of this Subsection (E) shall not apply; provided, however, such
Employer may elect to provide any of such early retirement reductions but only with regard
to a Member’s benefit which accrues with respect to the Member’s Salary up to the CCL.

 

60

 

	(F)	 	The Pentegra DB Plan reserves the right to deny an Employer the right to adopt the
supplemental early retirement window benefit described in this Section 7 if it determines, in
its sole discretion, that the adoption by such Employer would result in the provision of
benefits that would not satisfy the requirements of IRC Section 401(a)(4) (or any applicable
IRS Regulations thereunder) or which would in any other way adversely affect the tax-qualified
status of the Regulations and the tax-exempt status of the Trust under IRC Sections 401(a) and
501(a), respectively.

SECTION 8. REDUCTION IN ACCRUAL RATE FOR CERTAIN EMPLOYEES

An Employer may elect, on a prospective basis only, to reduce the benefit accrual rate which shall
apply to the calculation of the normal retirement benefit with respect to certain Members,
designated by the Employer, who constitute Highly Compensated Employees, provided that (i) the
Employer certifies to the Pentegra DB Plan in writing that such a reduction in the benefit accrual
rate is required by the Office of Thrift Supervision or such other regulatory authority and (ii)
the IRS approves such a reduction in the benefit accrual rate. If an Employer elects, in accordance
with this Section 8, to reduce the accrual rate of certain Members, the Employer shall, to the
extent a cessation of future benefit accruals is not required, select one of the benefit formulas
provided in Article V, Section 1 to apply with respect to the future accrual of benefits for such
Members.

 

61

 

ARTICLE VI OPTIONAL FORMS OF PAYMENT

SECTION 1. OPTIONS

Any Member or Retiree may elect, subject to Section 2 of this Article VI, to convert
his Retirement Allowance and the death benefit, if applicable, described in Article IV,
Section 3(A), Article IV, Section 3(B) or in Article V, Section 4(B), whichever is
applicable, to a retirement benefit of Equivalent Value under one of the following
options:

	 	 	 
	Option 1.

	 	A larger Retirement Allowance during the Retiree’s life, but at
his death all payments shall cease and no further amounts shall
be due or payable. This option shall not apply to Members whose
Employer adopted the Straight Life Annuity as the payment form
for the Member’s normal Retirement Allowance.
	 
	 	 
	Option 2.

	 	A modified Retirement Allowance to be paid to the Retiree for
his life and, after his death, an allowance at the same rate to
be paid to his Contingent Annuitant (should the latter survive
the Retiree) for life commencing on the first day of the month
in which the Retiree’s death occurs. If both the Retiree and his
Contingent Annuitant die before 120 monthly installments have
been paid, the Commuted Value of such unpaid installments shall
be paid in a lump sum to a Beneficiary designated by the
Retiree, or, if there is no designated Beneficiary, to the
estate of the survivor of the Retiree and his Contingent
Annuitant (presuming the Retiree to be the survivor if they die
within 24 hours of each other). Upon the death of the survivor
of the Retiree and his Contingent Annuitant after 120 monthly
installments have been paid, all payments shall cease and no
further amounts shall be due or payable.
	 
	 	 
	Option 3.

	 	A modified Retirement Allowance to be paid to the Retiree for
his life and, after his death, an allowance at one-half the rate
to be paid to his Contingent Annuitant (should the latter
survive the Retiree) for life commencing on the first day of the
month in which the Retiree’s death occurs. Upon the death of the
survivor of the Retiree and his Contingent Annuitant, all
payments shall cease and no further amounts shall be due or
payable.
	 
	 	 
	Option 4.

	 	A revised Retirement Allowance during the Retiree’s life with
some other benefit payable upon his death, provided that such
benefit be approved by the
Pentegra DB Plan and be in compliance with the applicable provisions of the IRC,
including Section 401(a)(9) thereof.

 

62

 

SECTION 2. CONDITIONS OF ELECTION

	(A)	 	The procedure for making an election or revocation with respect to any of the options
described in Section 1 of this Article VI shall be in compliance with ERISA, the IRC and, as
applicable, Section 14.4 and shall be communicated by the Pentegra DB Plan to the retiring
Member. Thereafter the retiring Member shall have 90 days (or such longer period as may be
required by ERISA) within which to make his election or revocation so long as it is filed with
the Pentegra DB Plan prior to the date on which his Retirement Allowance commences.
	 
	(B)	 	If a retiring Member or his Contingent Annuitant dies before the date his Retirement
Allowance commences or before the date he receives a lump sum settlement pursuant to Article
VII, the benefit payable shall be the death benefit under Article IV or Article V, whichever
is applicable, provided that such benefit shall not be less than the death benefit
attributable to the form of payment, including a lump sum, elected or the regular form of
payment, whichever is greater. If a disability Retiree whose allowance has already commenced
dies during the 90 day period following the date of his separation from active employment, the
election of any option shall be inoperative.
	 
	(C)	 	No election under Option 2, 3 or 4 of Section 1 of this Article VI may be made which would
result in an allowance to the Retiree of less than 50% of the Retirement Allowance he would
have received under Article VI, Section 1, Option 1.

 

63

 

ARTICLE VII METHOD OF PAYMENT

SECTION 1.

If a Retiree is married at the time his Retirement Allowance commences, his Retirement Allowance
shall be paid as a qualified joint and survivor annuity with his Spouse as Contingent Annuitant, as
described in Article VI, Section 1, Option 2 or 3, as designated by the Retiree, unless such Spouse
consents in writing to permit the Retiree to elect a different form of allowance. If a Retiree is
not married at the time his Retirement Allowance commences, his Retirement Allowance shall be paid
as a life annuity unless an optional form of allowance as described in Article VI is elected by the
Retiree. If an optional form of allowance as described in Article VI is not in effect with respect
to a Retiree, his Retirement Allowance shall be paid to him during his life. Upon his death, a
death benefit shall be payable if a death benefit is provided in accordance with Article IV,
Section 3(C) or, if adopted by such Retiree’s Employer, Article V, Section 4(B). For purposes of
this Article VII, a Retiree is not married at the time that his Retirement Allowance commences if
the Member or the Member’s Spouse has obtained a court order of legal separation which has been
entered by a court of competent jurisdiction prior to commencing payment of his Retirement
Allowance.

SECTION 2.

	(A)	 	Unless a proper election is received by the Pentegra DB Plan, all Retirement
Allowances shall be payable in substantially equivalent monthly installments
commencing as of his Required Beginning Date, except that:
	 

	 	(1)	 	A normal or early Retirement Allowance may be payable to a Retiree, by written
election filed with the Pentegra DB Plan, as of the first day of any month next
following his Retirement Date, and
	 
	 	(2)	 	An early Retirement Allowance may not be commenced until the Retiree’s Early
Retirement Date, except as may otherwise be provided under Section 2(D) or 2 (E) of
Article IV.

	 	 	Such installments shall continue during the life of the Retiree (except as provided
otherwise under Article V, Section 3(C)), and the last installment shall be due the first
day of the month in which his death occurs; except that if optional modification under
Article VI has become effective the provisions thereof shall apply, and the last
installment payable to a surviving Contingent Annuitant designated under such Article shall
be due the first day of the month in which such Contingent Annuitant’s death occurs.

 

64

 

	(B)	 	Notwithstanding the preceding Subsection (A) of this Section 2, a Retirement
Allowance may be converted to a single lump sum payment of the Equivalent Value of such
allowance, if an eligible Retiree as described below so elects prior to receiving his first
monthly retirement payment, in the following cases:

	 	(a)	 	Where that portion of the regular Retirement Allowance which is attributable to
the Employer’s contributions amounts to less than $600 per year on the date such
Allowance would otherwise commence; or
	 
	 	(b)	 	Where the Employer has requested, and the Pentegra DB Plan has approved, that a
lump sum settlement be available and uniformly applicable upon attainment of any age
between (and including) 45 and 65 as specified by the Employer (but not earlier than
the minimum age specified in Article IV, Section 2(D) for the commencement of an early
Retirement Allowance) to those of its Retirees who meet the following condition:

	 	(i)	 	Receipt by the Pentegra DB Plan of a consent (in the
form prescribed by the Pentegra DB Plan) of the Member’s Spouse, if any, that
such lump sum settlement be paid to the Retiree. (In any case where an Employer
adopts this option and subsequently ceases to exist as an independent entity,
the Retirement Committee of the Board may, in its discretion, substitute itself
for such Employer for the purposes of this Article VII.)

	 	(c)	 	Where the Employer has requested, and the Pentegra DB Plan has approved, that a
lump sum settlement be available as described in the preceding paragraph, the Member
may elect to have a portion of his Retirement Allowance commence in the form of an
annuity with the remaining portion of his Retirement Allowance paid in the form of a
partial lump sum with the lump sum portion determined at the election of the Member to
be the Equivalent Value of 25%, 50%, or 75% of the Member’s total Retirement Allowance.

 

65

 

Effective October 1, 1995, the interest rate and mortality table used to calculate lump sum
settlements shall be the applicable interest rate and mortality table as determined under Section
417(e) of the IRC and in accordance with the stability period and look-back month provisions
described below, except that an Employer may elect to continue to apply the interest rate described
in Subparagraphs (1) and (2) of the subsequent paragraph and the mortality assumptions which were
in effect under the Regulations prior to October 1,1995, in which case such pre-October interest
rate and mortality assumptions shall apply until June 30, 2000.

For those Employers who elected not to apply the interest and mortality table prescribed
under Section 417(e) of the IRC until July 1, 2000, in no event shall the interest rate used
to calculate lump sum settlements prior to July 1, 2000 exceed:

	 	(1)	 	The PBGC Interest Rate if the present value of the lump sum settlement using the PBGC
Interest Rate is less than $25,000, or
	 
	 	(2)	 	120% of the PBGC Interest Rate if the present value of the lump sum settlement using the PBGC
Interest Rate is $25,000 or greater; except that in no event shall such lump sum settlement
computed pursuant to this Subparagraph (2) be reduced below $25,000.

Effective July 1, 2000, the interest rate for all lump sum settlements shall be the applicable
interest rate described in Section 417(e) of the IRC. The applicable interest rate is the rate of
interest on 30-year Treasury Securities (or such other rate as may be prescribed by the
Commissioner) for the third calendar month preceding the first day of the stability period. The
stability period shall be the calendar month period that contains the annuity starting date for the
distribution and for which the applicable interest rate remains constant. The applicable mortality
table shall be the mortality table as set forth in IRS Revenue Ruling 95-6, 1995-1 C.B.80;
provided, however, for distributions with annuity starting dates on or after December 31, 2002, the
applicable mortality table shall be the mortality table as set forth in IRS Revenue Ruling 2001-62.

 

66

 

Following the effective date of the amendment of the Regulations to replace the interest rate
assumption that is based on the PBGC Interest Rate, and with respect to the calculation of lump sum
settlements for which the annuity starting date occurs in the one-year period commencing at the
time the plan amendment is effective, such
lump sum value shall be determined using, whichever results in the larger distribution, the
applicable interest rate (within the meaning of Section 417(e) of the IRC) determined for
the second month preceding the month that contains the annuity starting date or the
applicable interest rate for the third calendar month preceding the calendar month that
contains the annuity starting date.

	(C)	 	In no event shall the lump sum settlement payable to a Member under Subsection (B) be
less than the lump sum settlement value of the Member’s accrued benefit as of September 30,
1995, if any, calculated using an interest rate, determined by the Pentegra DB Plan by
reference to the last month of a calendar quarter, which shall be the average of the 10 and
20-year U.S. Treasury Bond annual yields for such month, as reported in the Federal Reserve
Statistical Release (H.15), rounded to the nearest .5%; provided, however, if the annual yield
of 20-year U.S. Treasury Bonds is not published, such rate shall be the annual yield of
10-year U.S. Treasury Bonds. In the absence of the Federal Reserve Statistical Release, the
Pentegra DB Plan may obtain such annual yields from any other source it deems appropriate. The
rate so determined shall be applicable to settlements to be paid in the calendar quarter
beginning three months later.
	 
	(D)	 	A lump sum settlement under Subsection (B) or (C) will be the present value, calculated on
the basis of the specified interest rate, of the regular form of allowance which would
otherwise be payable to the Retiree under the Regulations. It will be calculated and payable
as of the date on which payment of the corresponding Retirement Allowance would otherwise
commence, except that no settlement under Paragraph (b) of Subsection (B) is payable prior to
the age specified therein.
	 
	(E)	 	No Retirement Allowance or lump sum settlement shall be increased on account of any delay in
payment beyond the date specified in this Article VII due to the Retiree’s failure to properly
file the application form furnished by the Pentegra DB Plan or to otherwise accept such
payment.

SECTION 3.

Notwithstanding anything herein to the contrary, if the Equivalent Value of a Member’s vested
benefit is zero, the Member shall be deemed to have received a distribution of such benefit upon
termination of employment with his Employer and shall immediately forfeit the nonvested portion of
his benefit.

 

67

 

SECTION 4.

This Section 4 applies to distributions made on or after January 1, 1993. Solely to the extent
required under applicable law and IRS Regulations, and notwithstanding any provision of the
Regulations to the contrary that would otherwise limit a Distributee’s election under this Section
4, a Distributee may elect, at the time and in the manner prescribed by the Board, to have any
portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified
by the Distributee in a Direct Rollover.

For purpose of this Section 4, the following terms shall have the following meanings:

	(A)	 	Eligible Rollover Distribution: Solely to the extent required under applicable law and IRS
Regulations, an Eligible Rollover Distribution is any distribution of all or any portion of
the balance to the credit of the Distributee, except that an Eligible Rollover Distribution
does not include: any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life expectancy) of the
Distributee or the joint lives (or joint life expectancies) of the Distributee and the
Distributee’s designated Beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under Section 401(a)(9) of the IRC;
and the portion of any distribution that is not includible in gross income (determined without
regard to the exclusion for net unrealized appreciation with respect to employer securities).

	(B)	 	Eligible Retirement Plan: An Eligible Retirement Plan is an individual retirement account
described in Section 408(a) of the IRC, an individual retirement annuity described in Section
408(b) of the IRC, an annuity plan described in Section 403(a) of the IRC, or a qualified
trust described in Section 401(a) of the IRC that accepts the Distributee’s Eligible Rollover
Distribution. However, in the case of an Eligible Rollover Distribution to a surviving Spouse,
an Eligible Retirement Plan is an individual retirement account or individual retirement
annuity. Notwithstanding anything herein to the contrary, with respect to a Distributee that
is a non-spouse beneficiary of the Member, an Eligible Retirement Plan shall mean solely an
individual retirement account (described in Section 408(a) of the IRC) or an individual
retirement annuity (described in Section 408(b) of the IRC) and any rollover by such a
Distributee shall only be in the form of a direct trustee to trustee transfer.

 

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	 	 	Notwithstanding anything herein to the contrary, with respect to a Distributee that is a
non-spouse beneficiary of the Member, an Eligible Retirement Plan shall mean solely an
individual retirement account (described in Section 408(a) of the IRC) or an individual
retirement annuity (described in Section 408(b) of the IRC) and any rollover by such a
Distributee shall only be in the form of a direct trustee to trustee transfer.
	 
	(C)	 	Distributee: A Distributee includes an Employee or former Employee. In addition, the
Employee’s or former Employee’s surviving Spouse and the Employee’s or former Employee’s
Spouse or former Spouse who is an alternate payee under a Qualified Domestic Relations Order
are Distributees with regard to the interest of the Employee or former Employee. Effective
April 1, 2007, a Distributee shall include any non- spouse beneficiary designated by a Member
under the Pentegra DB Plan.
	 
	 	 	Effective April 1, 2007, a Distributee shall also include any non-spouse beneficiary
designated by a Member under the Pentegra DB Plan.
	 
	(D)	 	Direct Rollover: A Direct Rollover is a payment by the Pentegra DB Plan to the Eligible
Retirement Plan specified by the Distributee.

SECTION 5.

Unless the Member elects otherwise, distribution of his Retirement Allowance will begin no later
than the 60th day after the latest of the close of the Plan Year in which:

	 	(i)	 	the Member attains age 65;
	 
	 	(ii)	 	occurs the 10th anniversary of the year in which the Member
commenced participation in the Pentegra DB Plan; or,
	 
	 	(iii)	 	the Member terminates Service with his Employer.

Notwithstanding the foregoing, the failure of a Member and Spouse to consent to a distribution
before the Member attains age 65 shall be deemed to be an election to defer commencement of payment
of any benefit sufficient to satisfy this Section 5.

 

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SECTION 6.

Notwithstanding anything in this Article VII to the contrary, the provisions of this Section 6 will
apply for purposes of determining required minimum distributions for calendar years beginning with
the 2006 calendar year. All distributions required under this Section 6 will be determined and made
in accordance with the Treasury regulations under Section 401(a)(9) of the IRC. Notwithstanding the
other provisions of this Section 6, other than the preceding sentence, distributions may be made
under a designation made before January 1, 1984, in accordance with section 242(b)(2) of the Tax
Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Pentegra DB Plan that relate
to section 242(b)(2) of TEFRA.

	(A)	 	Time and Manner of Distribution.

	 	(1)	 	Required Beginning Date. The Member’s entire interest will be distributed, or
begin to be distributed, to the Member no later than the Member’s Required Beginning
Date.
	 
	 	(2)	 	Death of Member Before Distributions Begin. If the Member dies before
distributions begin, the Member’s entire interest will be distributed, or begin to be
distributed, not later than as follows:

	 	(a)	 	If the Member’s surviving spouse (whose marriage to the Member
was recognized for purposes of Federal law) is the Member’s sole Designated
Beneficiary, then distributions to the surviving spouse will begin by December
31 of the calendar year immediately following the calendar year in which the
Member died, or by December 31 of the calendar year in which the Member would
have attained age 701/2, if later.
	 
	 	(b)	 	If the Member’s surviving spouse (whose marriage to the Member
was recognized for purposes of Federal law) is not the Member’s sole designated
beneficiary, then distributions to the designated beneficiary will begin by
December 31 of the calendar year immediately following the calendar year in
which the Member died.
	 
	 	(c)	 	If there is no designated beneficiary as of September 30 of the
year following the year of the Member’s death, the Member’s entire interest
will be distributed by December 31 of the calendar year containing the fifth
anniversary of the Member’s death.

 

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	 	(d)	 	If the Member’s surviving spouse (whose marriage to the Member was
recognized for purposes of Federal law) is the Member’s sole designated
beneficiary and the surviving spouse dies after the Member but before
distributions to the surviving spouse begin, this Subsection (A)(2), other
than Subsection (2)(a), will apply as if the surviving spouse were the
Member.

	 	 	 	For purposes of this Subsection (A)(2) and Subsection (D), distributions are
considered to begin on the Member’s Required Beginning Date (or, if Subsection
(A)(2)(d) applies, the date distributions are required to begin to the surviving
spouse (whose marriage to the Member was recognized for purposes of Federal law)
under Subsection (A)(2)(a)). If annuity payments irrevocably commence to the Member
before the Member’s Required Beginning Date (or to the Member’s surviving spouse
(whose marriage to the Member was recognized for purposes of Federal law) before the
date distributions are required to begin to the surviving spouse under Subsection
(A)(2)(a)), the date distributions are considered to begin is the date distributions
actually commence.
	 
	 	(3)	 	Form of Distribution. Unless the Member’s interest is distributed in the
form of an annuity purchased from an insurance company or in a single sum on or before
the Required Beginning Date, as of the first Distribution Calendar Year distributions
will be made in accordance with Subsections (B), (C) and (D) of this Section 6. If the
Member’s interest is distributed in the form of an annuity purchased from an insurance
company, distributions thereunder will be made in accordance with the requirements of
Section 401(a)(9) of the IRC and the Treasury regulations. Any part of the Member’s
interest which is in the form of an individual account described in Section 414(k) of
the IRC will be distributed in a manner satisfying the requirements of Section
401(a)(9) of the IRC and the Treasury regulations that apply to individual accounts.

	(B)	 	Determination of Amount to be Distributed Each Year.

	 	(1)	 	General Annuity Requirements. If the Member’s interest is paid in the
form of annuity distributions under the Regulations, payments under the annuity will
satisfy the following requirements:

	 	(a)	 	The annuity distributions will be paid in periodic
payments made at intervals not longer than one year;

 

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	 	(b)	 	The distribution period will be over a life (or lives) or over a period certain
not longer than the period described in Subsections (C) or (D);
	 
	 	(c)	 	Once payments have begun over a period certain, the period certain will not
be changed even if the period certain is shorter than the maximum permitted;
	 
	 	(d)	 	Payments will either be nonincreasing or increase only as follows:

	 	(i)	 	By an annual percentage increase that does not exceed the
	 
	 	 	 	annual percentage increase in a cost-of-living index that is based on
prices of all items and issued by the Bureau of Labor Statistics;
	 
	 	(ii)	 	To the extent of the reduction in the amount of the Member’s
payments to provide for a survivor benefit upon death, but only if the
beneficiary whose life was being used to determine the distribution period
described in Subsection (C) dies or is no longer the Member’s beneficiary
pursuant to a qualified domestic relations order within the meaning of IRC
Section 414(p);
	 
	 	(iii)	 	To provide cash refunds of employee contributions
upon the Member’s death; or
	 
	 	(iv)	 	To pay increased benefits that result from an amendment
to the Regulations.

	 	(2)	 	Amount Required to be Distributed by Required Beginning Date. The amount that must be
distributed on or before the Member’s Required Beginning Date (or, if the Member dies before
distributions begin, the date distributions are required to begin under Subsection (A)(2)(a)
or (b)) is the payment that is required for one payment interval. The second payment need not
be made until the end of the next payment interval even if that payment interval ends in the
next calendar year. Payment intervals are the periods for which payments are received, e.g.,
bi-monthly, monthly, semi-annually, or annually. All of the Member’s benefit accruals as of
the last date of the first Distribution Calendar Year will be included in the calculation of
the amount of the annuity payments for payment intervals ending on or after the Member’s
Required Beginning Date.

 

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	 	(3)	 	Additional Accruals After First Distribution Calendar Year. Any additional benefits accruing
to the Member in a calendar year after the first Distribution
Calendar Year will be distributed beginning with the first payment interval ending
in the calendar year immediately following the calendar year in which such amount
accrues.

	(C)	 	Requirements For Annuity Distributions That Commence During Member’s Lifetime.

	 	(1)	 	Joint Life Annuities Where the Beneficiary Is Not the Member’s Spouse. If the
Member’s interest is being distributed in the form of a joint and survivor annuity for
the joint lives of the Member and a nonspouse beneficiary (or for the joint lives of
the Member and a spouse whose marriage to the Member is not recognized for purposes of
Federal law), annuity payments to be made on or after the Member’s Required Beginning
Date to the designated beneficiary after the Member’s death must not at any time exceed
the applicable percentage of the annuity payment for such period that would have been
payable to the Member using the table set forth in Q&A-2 of Section 1.401(a)(9)-6T of
the Treasury regulations. If the form of distribution combines a joint and survivor
annuity for the joint lives of the Member and a nonspouse beneficiary (or for the joint
lives of the Member and a spouse whose marriage to the Member is not recognized for
purposes of Federal law), and a period certain annuity, the requirement in the
preceding sentence will apply to annuity payments to be made to the designated
beneficiary after the expiration of the period certain.
	 
	 	(2)	 	Period Certain Annuities. Unless the Member’s spouse (whose marriage to the
Member is recognized for purposes of Federal law) is the sole designated beneficiary
and the form of distribution is a period certain and no life annuity, the period
certain for an annuity distribution commencing during the Member’s lifetime may not
exceed the applicable distribution period for the Member under the Uniform Lifetime
Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations for the calendar
year that contains the annuity starting date. If the annuity starting date precedes the
year in which the Member reaches age 70, the applicable distribution period for the
Member is the distribution period for age 70 under the Uniform Lifetime Table set forth
in Section 1.401(a)(9)-9 of the Treasury regulations plus the excess of 70 over the age
of the Member as of the Member’s birthday in the year that contains the annuity
starting date. If the Member’s spouse (whose marriage to the Member is recognized for
purposes of Federal law) is the Member’s sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the period certain may not exceed
the longer of the Member’s applicable distribution period, as determined
under this Subsection (C)(2), or the joint life and last survivor expectancy of the
Member and the Member’s spouse as determined under the Joint and Last Survivor Table
set forth in Section 1.401(a)(9)-9 of the Treasury regulations, using the Member’s
and spouse’s attained ages as of the Member’s and spouse’s birthdays in the calendar
year that contains the annuity starting date.

 

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	 	(D)	 	Requirements For Minimum Distributions Where Member Dies Before Date Distributions
Begin.

	 	(1)	 	Member Survived by Designated Beneficiary. If the Member dies before the date
distribution of his or her interest begins and there is a Designated Beneficiary, the
Member’s entire interest will be distributed, beginning no later than the time
described in Subsection (A)(2)(a) or (b), over the life of the Designated Beneficiary
or over a period certain not exceeding:

	 	(a)	 	Unless the annuity starting date is before the first
Distribution Calendar Year, the Life Expectancy of the Designated Beneficiary
determined using the beneficiary’s age as of the beneficiary’s birthday in the
calendar year immediately following the calendar year of the Member’s death; or
	 
	 	(b)	 	If the annuity starting date is before the first Distribution
Calendar Year, the Life Expectancy of the Designated Beneficiary determined
using the beneficiary’s age as of the beneficiary’s birthday in the calendar
year that contains the annuity starting date.

	 	(2)	 	No Designated Beneficiary. If the Member dies before the date distributions
begin and there is no Designated Beneficiary as of September 30 of the year following
the year of the Member’s death, distribution of the Member’s entire interest will be
completed by December 31 of the calendar year containing the fifth anniversary of the
Member’s death.
	 
	 	(3)	 	Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. If
the Member dies before the date distribution of his or her interest begins, the
Member’s surviving spouse (whose marriage to the Member is recognized for purposes of
Federal law) is the Member’s sole designated beneficiary, and the surviving spouse dies
before the distributions to the surviving spouse begin, this Subsection (D) will apply
as if the surviving spouse were the Member, except that the time by which distributions
must begin will be determined without regard to
Subsection (A)(2)(a).

 

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	 	(E)	 	Definitions.

	 	(1)	 	Designated Beneficiary. The individual who is designated as the “Beneficiary”
under Subsection (4) of Article I of the Regulations and is the designated beneficiary
under Section 401(a)(9) of the IRC and Section 1.401(a)(9)-1, Q&A-4, of the Treasury
regulations.
	 
	 	(2)	 	Distribution Calendar Year. A calendar year for which a minimum distribution is
required. For distributions beginning before the Member’s death, the first Distribution
Calendar Year is the calendar year immediately preceding the calendar year which
contains the Member’s Required Beginning Date. For distributions beginning after the
Member’s death, the first Distribution Calendar Year is the calendar year in which
distributions are required to begin pursuant to Subsection (A)(2).
	 
	 	(3)	 	Life Expectancy. Life expectancy as computed by use of the Single Life Table in
Section 1.401(a)(9)-9 of the Treasury regulations.
	 
	 	(4)	 	Required Beginning Date. The date specified in Subsection (39) of Article I of
the Regulations.

 

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ARTICLE VIII RESTORATION OF A RETIREE TO SERVICE

If a Retiree (or a terminated Member who is eligible for early retirement) is restored to Service
at the rate of 1,000 or more Hours of Service a year, he shall be re-enrolled as an active Member
as of his new employment date. If a Retiree returns to active membership he may, within six months
following (i) his date of reemployment, or (ii) if such Retiree is first enrolled as an inactive
Member pursuant to Article X, Section 3, his change in status to an active Member, make an
irrevocable election to continue to receive the payment of his Retirement Allowance or to suspend
the payment of his Retirement Allowance until his subsequent termination of Service or retirement
in accordance with Section 2530.203-3 of the DOL Regulations; provided, however, if no such
election is made, payment of such Member’s Retirement Allowance shall continue in the form of
payment previously chosen. Upon subsequent retirement, (i) his benefit shall be based on his
Benefit Service before and after his previous retirement and his Salary during such service, but
shall be reduced by the Equivalent Value of the benefits provided by the Pentegra DB Plan, and (ii)
any Retirement Adjustment Payment for which he is then eligible shall be reduced by the amount of
any such payment made in respect of his previous retirement.

If a Retiree (or terminated Member who is eligible for early retirement) is restored to Service at
the rate of less than 1,000 Hours of Service a year, he shall be re-enrolled as an inactive Member
as of his new employment date. If it is determined that a Retiree, who was restored to Service at a
rate of less than 1,000 Hours of Service per year, has completed at least 1,000 Hours of Service in
any 12 consecutive month period, measured from the first day of such restoration to Service and
then from each January 1 thereafter, Benefit Service shall be credited retroactively to the
beginning of such period.

 

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ARTICLE IX CONTRIBUTIONS

SECTION 1. ENGAGEMENT OF ACTUARY

The Board shall engage an enrolled actuary to (i) recommend the actuarial funding method and the
actuarial assumptions, tables, interest rates and other factors to be used in determining the cost
of participating in the Pentegra DB Plan, (ii) perform an annual actuarial valuation of the
liabilities to determine the minimum contributions required to be made in accordance with such
valuation to avoid an accumulated funding deficiency and the maximum contributions permitted to be
made without exceeding the full funding limitation under the IRC, and (iii) determine each
Employer’s allocable share of the aggregate annual contribution to the Pentegra DB Plan which is
approved by the Board. The Board may adopt and modify from time to time any actuarially sound
funding method which conforms with IRC and IRS Regulations as the funding method for the Pentegra
DB Plan.

SECTION 2. SINGLE PLAN

The Pentegra DB Plan is a single plan which provides benefits to Members of all Employers
participating in the Pentegra DB Plan and their Beneficiaries. It is intended to satisfy the
requirements of IRC Section 413(c) and IRS Regulation Section 1.414(1)-1(b)(1). Accordingly, all
Pentegra DB Plan assets are available to pay benefits to all Members of the Pentegra DB Plan and
their Beneficiaries.

SECTION 3. CONTRIBUTIONS BY EMPLOYERS

	(A)	 	Each Employer shall contribute to the Pentegra DB Plan the amount determined in accordance
with the annual actuarial valuation of the Pentegra DB Plan for such year, reflecting the
benefits provided to its Employees under the Regulations. The contribution so determined may
be proportionally increased as directed by the Board so that the total of all contributions
remitted during the Plan Year from all participating Employers will not result in a funding
deficiency under IRC Section 412.
	 
	(B)	 	In determining each Employer’s required contribution to the Pentegra DB Plan, the actuary
shall take into account each Employer’s normal cost for the benefits provided to such
Employer’s Members under the Regulations, an annual amortization of any unfunded accrued
actuarial liabilities and an annual amortization of actuarial experience gains and losses. In
addition, the actuary may take into account such other
factors which it deems relevant to determine the cost of an Employer’s participation in the
Pentegra DB Plan and which are otherwise in accordance with IRC Sections 412 and 413(c).

 

77

 

	(C)	 	Effective for Plan Years commencing before July 1, 1989, during any period when the Pentegra
DB Plan is in full funding, the Board shall advise each Employer which is precluded from
making contributions that would otherwise be required but for full funding, based on the
advice of the actuary, of the amount of the contributions which would otherwise have been
required. The future contribution requirements of each such Employer shall take into account
an amortization of such unpaid contributions over such period of time and at such rate of
interest as is determined by the Board.
	 
	(D)	 	Notwithstanding any provision of the Regulations to the contrary, an Employer that is
exempt from taxation under the IRC may elect to make contributions to the Pentegra DB Plan
in excess of the deduction limits under Section 404 of the IRC.

SECTION 4. ADMINISTRATIVE EXPENSES

Each Employer’s share of all proper charges and expenses of administering the Regulations, as
determined by the Board in accordance with Section 1(I) of Article XIV shall be (i) charged against
the assets of the Trust or (ii) remitted to the Pentegra DB Plan based upon a schedule determined
by the Board, but not less frequently than annually.

SECTION 5. CONTRIBUTIONS BY MEMBERS

	(A)	 	No Member shall contribute to the Pentegra DB Plan unless his Employer elects to
participate on a contributory basis thereby reducing its contributions under Section 3(A) of
this Article IX. Each Member whose Employer does participate on such contributory basis
shall contribute a level percentage of his Salary, as determined by the Board, provided that
effective July 1, 2006, no Member contributions shall be required with respect to any Member
who has attained his 65th birthday. With respect to Members who have attained
their 65th birthdays, benefit accruals under the Pentegra DB Plan after such
65th birthday shall not be reduced because of the cessation of Member
contributions, but shall be funded through otherwise accumulated Pentegra DB Plan assets
attributable to the Employer and Employer contributions.

 

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	(B)	 	The Pentegra DB Plan shall certify to the Employer the contribution rate applicable to
each of its enrolling Members, and the Employer shall deduct from the Member’s Salary his
contribution based on such rate. All contributions of Members thus deducted shall be
transmitted monthly by the Employer to the Pentegra DB Plan and, upon receipt by the
Pentegra DB Plan, shall be credited to the individual accounts of the Members. Every Member
shall be deemed to agree to the deductions provided for herein.
	 
	(C)	 	A Member’s Accumulated Contributions shall be fully vested but payable only in the form
provided in the Regulations and in accordance with the spousal consent requirements of Article
VII, Section 2 and IRC Sections 401(a)(11) and 417 and the IRS Regulations thereunder. For
purposes of this provision, Accumulated Contributions as of any date may be commuted to a life
annuity commencing on the Member’s Normal Retirement Date by multiplying such Accumulated
Contributions by an appropriate conversion factor as determined by the Pentegra DB Plan in
accordance with ERISA and Section 411 (c)(2) of the IRC.
	 
	(D)	 	A person whose membership is terminated for any reason other than by death or disability
retirement shall, upon filing with the Pentegra DB Plan the designated form for giving notice
thereof, be entitled to a refund of his Accumulated Contributions, if any, provided the
spousal consent requirements are met as provided below:

	 	(1)	 	In the case of a person whose membership is terminated by a Break in
Service (prior to vesting under Article IV), such refund shall be in lieu of all other
benefits otherwise payable on his account. If the Member’s Accumulated Contributions
amount to $1,000 ($3,500 prior to March 28, 2005) or less, such amounts will be paid in
a lump sum upon such termination of Service. However, if the Member’s Accumulated
Contributions amount to more than $1,000 ($3,500 prior to March 28, 2005), then if the
Member does not elect to receive a refund of his Accumulated Contributions, such
contributions shall be paid upon his attainment of age 65 in a lump sum, provided the
Pentegra DB Plan receives the appropriate spousal consent therefor or, otherwise, in
the form of a qualified joint and survivor annuity. If such a terminated Member dies
before withdrawing his Accumulated Contributions, or receiving the first payment of
such annuity, the amount of such Accumulated Contributions shall be paid to his
Beneficiary.

 

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	 	(2)	 	In the case of a person whose membership is terminated upon early or
normal retirement, such refund shall be payable only prior to the commencement of
his Retirement Allowance and shall be in lieu of the actuarial equivalent of that
portion of his retirement benefit which is attributable to such Accumulated
Contributions. The remaining portion of such retirement benefit, if any, shall be
calculated in accordance with ERISA and paid to him as provided in Article VII.

SECTION 6. CONTRIBUTION REQUIREMENTS FOR BENEFIT IMPROVEMENTS

Notwithstanding anything in the Regulations to the contrary, in the event an Employer elects a
benefit improvement under the Regulations for which contributions may not be made by an Employer
(subject to Section 404 of the IRC) on a tax-deductible basis, such election shall be effective
only to the extent the Pentegra DB Plan determines that such benefit improvement may be adequately
funded by such Employer, and to the extent the Pentegra DB Plan actuary determines it necessary
(such determination being performed in a uniform and nondiscriminatory manner), the Employer
satisfies a creditworthiness test (as prescribed by the Pentegra DB Plan) and executes a cash
collateral agreement granting the Pentegra DB Plan a security interest in such assets as the
Pentegra DB Plan may reasonably require.

SECTION 7. RETURN OF CONTRIBUTIONS TO EMPLOYER

	(A)	 	The Pentegra DB Plan is created for the exclusive benefit of Members, their Beneficiaries and
Contingent Annuitants. Except as provided in Subsections (B) and (C) of this Section 7, at no
time prior to the satisfaction of all liabilities under the Pentegra DB Plan with respect to
all Members and Retirees, their Beneficiaries and Contingent Annuitants shall any
contributions to the Pentegra DB Plan by an Employer be returned by the Pentegra DB Plan to
the Employer, subject to Article XIII(D)(2).
	 
	(B)	 	In the case of a contribution that is made by an Employer by reason of a mistake of fact as
determined by the Board, such Employer may request the return to it of such contribution,
provided such refund is made within one year after the payment of the contribution. In
accordance with applicable law, earnings attributable to such contribution may not be returned
to the Employer, but losses attributable thereto must reduce the amount to be returned to the
Employer.

 

80

 

	(C)	 	In the case of a contribution made by an Employer (other than an Employer that is exempt from
taxation under the IRC), such contribution shall be conditioned upon the
deductibility of the contribution by the Employer under Section 404 of the IRC. To the extent the
deduction for such contribution is disallowed, in accordance with IRS Regulations, the Employer may
request the return to it of such contribution, provided such refund is made within one year after
the disallowance of the deduction. In accordance with applicable law, earnings attributable to such
contribution may not be returned to the Employer, but losses attributable thereto must reduce the
amount to be returned to the Employer.

 

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ARTICLE X EFFECTS OF VARIOUS EVENTS ON MEMBERSHIP AND SERVICE

SECTION 1. TERMINATION OF MEMBERSHIP

Membership shall cease upon date of retirement, death, Break in Service, or withdrawal of the
Employer’s participation. For purposes of this Article X, a Break in Service commences when a
non-vested Member’s Service is terminated.

SECTION 2. REINSTATEMENT OF MEMBERSHIP AND SERVICE

If a Member had a vested interest in his Retirement Allowance at the time of his termination, his
Vesting Service shall be reinstated upon his reemployment. If a person whose membership is
terminated by a Break in Service is again employed by an Employer, he shall be re-enrolled as a
Member as of his new employment date, subject to the provisions of this Section 2.

Further, (i) if a non-vested Member’s Service is terminated and his Break in Service did not exceed
60 consecutive months, then his previous Vesting Service (and pervious Service for determining
eligibility to participate) shall be reinstated upon his reemployment, and if such Break in Service
did not exceed 12 consecutive months, he shall also be credited with Vesting Service (and pervious
Service for determining eligibility to participate) for the period of such break upon his
reemployment; (ii) if a non-vested Member’s Service is terminated and his Break in Service did
exceed 60 consecutive months but did not exceed his previous Vesting Service, then his previous
Vesting Service (and pervious Service for determining eligibility to participate) shall be
reinstated upon his reemployment; and (iii) if a non-vested Member’s Service is terminated and such
Member’s Break in Service did equal or exceed the greater of (x) 60 consecutive months or (y) his
previous Vesting Service, then upon his reemployment he shall be treated as a new Employee for all
purposes under the Regulations.

If an Employee receives a distribution or is deemed to receive a distribution pursuant to Article
VII, Section 3 and the Employee is rehired by an Employer, he shall have the right to reinstate his
Benefit Service and restore his retirement benefits (including all optional forms of benefits and
subsidies relating to such benefits) to the extent forfeited upon the repayment to the Pentegra DB
Plan of the full amount of the distribution plus interest, compounded annually from the date of
distribution at the rate determined under Section 411(c)(2)(C) of the IRC. Such repayment must be
made before the earlier of five (5) years after the first date on which the Member is reemployed by
an Employer, or the date the Member incurs a Break in Service of at least 60 consecutive months.

 

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Solely for purposes of determining whether a Break in Service has occurred, an individual who has a
maternity or paternity absence, as determined by the Pentegra DB Plan in accordance with the IRC
and ERISA, that continues beyond the first anniversary of the first day of absence by reason of a
maternity or paternity absence shall incur a Break in Service on the date of the second anniversary
of the first day of such maternity or paternity absence; provided, that the individual timely
provides the Pentegra DB Plan with such information as it shall require. For purposes of the
Regulations, maternity or paternity absence shall mean an absence from work by reason of the
individual’s pregnancy, the birth of the individual’s child or the placement of a child with the
individual in connection with adoption of the child by such individual, or for purposes of caring
for a child for the period immediately following such birth or placement.

In the event a Member is no longer part of an eligible class of Employees and becomes ineligible to
participate but has not incurred a Break in Service, such Employee will participate immediately
upon returning to an eligible class of Employees. If such Member incurs a Break in Service,
eligibility will be determined under the Break in Service rules of the Regulations.

In the event an Employee who is not part of an eligible class of Employee becomes a part of an
eligible class, such Employee will participate immediately if such Employee has satisfied the
minimum age and service requirements provided in Section 2.2 and would have otherwise previously
become a Member.

In the event a Member terminates employment when his Employer participates under the Pentegra DB
Plan with a different basis of participation for employees hired on or after a specified date, such
Member, upon reemployment, will participate under the Employer’s latest adopted basis of
participation unless the Member’s Break in Service did not exceed 12 consecutive months. If the
Member’s Break in Service did not exceed 12 consecutive months, such Member ‘s basis of
participation shall be the basis under which he was covered prior to his termination of employment.

SECTION 3. INACTIVE MEMBERSHIP

If an Employer certifies to the Pentegra DB Plan that it expects a Member to complete less than
1,000 Hours of Service in the 12 consecutive month period commencing on his Enrollment Date (or any
January 1 thereafter), he shall be deemed an “inactive Member.” This does not constitute a Break in
Service. During a period of inactive membership (a) Vesting Service shall accrue, (b) Benefit
Service shall not accrue, and (c) no contributions may be made by such inactive Member. If it is
later determined that such Member has completed, or
is expected to complete, at least 1,000 Hours of Service in any such period, then his regular
membership shall be restored, and his Benefit Service shall be credited retroactively for such
period. Inactive membership shall also be deemed to occur whenever a Member (a) is transferred from
regular membership to a class of employees for which the Employer has requested, and the Pentegra
DB Plan has granted, exclusion pursuant to Article II, or to a non-participating corporation which
is a member of a controlled group of corporations of the Employer (within the meaning of Section
1563(a) of the IRC) or (b) receives no income from an Employer other than commissions and such
Employer, which previously included commissions as Salary, elects not to include commissions as
Salary under Article I, Section 42 of the Regulations.

 

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No benefit other than the refund of the Member’s Accumulated Contributions, if any, is payable on
account of disability or death incurred during inactive membership, except that if the Member is
eligible for early retirement and dies during such period, his Beneficiary shall be entitled to the
death benefit which would have been payable under Article IV, Section 3(B) or Article V, Section
4(B), whichever is applicable. Notwithstanding anything to the contrary under the Regulations, if a
Member becomes an “inactive Member,” he shall be permitted to elect to commence the payment of his
Retirement Allowance at any time after his attainment of age 65 while an inactive Member. If an
inactive Member has elected to commence the payment of his Retirement Allowance and, subsequent to
the commencement of such allowance, the Member returns to active membership status and thus is no
longer an inactive Member, such Member may elect to continue to receive his Retirement Allowance or
to suspend the payment of his Retirement Allowance. Any benefits which accrue subsequent to the
Member’s return to active Member status shall be deemed to be provided to the extent of the
Equivalent Value of any benefits paid (taking into account only those payments made in accordance
with the applicable normal form of Retirement Allowance payable under the Regulations) to the
Member; provided, however, in no event shall the Member’s accrued benefit be reduced below such
Member’s accrued benefit as of the close of the Plan Year immediately preceding the Plan Year in
which such additional benefits accrue.

SECTION 4. LEAVES OF ABSENCE

	(A)	 	Service crediting and membership shall continue during any approved leave of
absence, provided that the Employer notifies the Pentegra DB Plan of its intention to grant
to a specific Employee or Member, pursuant to the Employer’s policy which is uniformly
applicable to all its Employees under similar circumstances, one of the leaves
of absence described in Subsection (B) of this Section 4, and agrees to notify the
Pentegra DB Plan at the conclusion thereof.

 

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	(B)	 	For purposes of the Regulations, the following are the only types of approved leaves of
absence:
	 
	 	 	TYPE 1
	 
	 	 	Non-military leave granted to a Member for a period not in excess of one year during which
contributions continue. Under this leave, Benefit Service continues to accrue and any
benefit, except disability retirement, for which the Member is otherwise eligible may become
payable during the period of the leave. Further, an Employer may elect that this leave be
extended beyond the one-year period to cover a Member who is receiving payments under (i) a
disability program of the Employer, or (ii) Title II of the Federal Social Security Act, but
not beyond his Normal Retirement Date.
	 
	 	 	TYPE 1A
	 
	 	 	Special military leave granted to a Member who is required to report for military service
pursuant to an involuntary call-up in the reserves. Under this leave, Benefit Service
continues to accrue for the period of such military service and any benefit, except
disability retirement, for which the Member is otherwise eligible may become payable during
the period of the leave. This special military leave shall terminate upon the earlier to
occur of (i) the Member’s reemployment or (ii) 90 days after the Member completes such
military service.
	 
	 	 	TYPE 2
	 
	 	 	Non-military leave or layoff granted to a Member for a period not in excess of one year
during which no contributions are made. Under this leave, Vesting Service continues to
accrue, but Benefit Service ceases to accrue. Benefit Service shall recommence upon
termination of the leave and resumption of contributions.
	 
	 	 	TYPE 3
	 
	 	 	Military or other governmental service leave granted to a Member from which he
returns directly to the Service of an Employer. Under this leave, Vesting Service
continues to accrue, but Benefit Service ceases to accrue. Benefit Service shall
recommence upon termination of the leave. However, such Benefit Service as did not accrue by
reason of the absence may be credited retroactively to the Member at the election of the
Employer on a uniform basis or as otherwise required by applicable law.

 

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	 	 	No benefit, other than a refund of the Member’s Accumulated Contributions, if any, is
payable on account of disability or death incurred during a Type 2 or Type 3 leave under
this Subsection (B), except that if the Member is eligible for early retirement and dies
during any leave, his Beneficiary shall be entitled to the death benefit which would have
been payable under Article IV, Section 3(B) or Article V, Section 4(B), whichever is
applicable. At the termination of any leave, a Break in Service shall occur unless the
Member is then vested or hired by an Employer.
	 
	(C)	 	Notwithstanding any provision of the Regulations to the contrary, effective
December 12, 1994, contributions, benefits and service credits with respect to qualified
military service will be provided in accordance with Section 414 (u) of the IRC.

SECTION 5. SERVICE WITH A CONTROLLED CORPORATION

In determining an Employee’s Service for purposes of eligibility for membership under Article II
and for vesting under Article IV, all Service with a corporation which is a member of a controlled
group of corporations of the Employer (within the meaning of Section 1563(a) of the IRC) shall be
taken into account.

SECTION 6. UNIFORM APPLICABILITY OF RULES

Notwithstanding anything in the Regulations to the contrary, Service credited to each Employee and
Member with respect to membership, vesting and benefits shall be determined by the Pentegra DB Plan
on a basis uniformly applicable to each Employee or Member similarly situated, in accordance with
ERISA.

 

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ARTICLE XI MISCELLANEOUS PROVISIONS

SECTION 1. LIMITATIONS ON BENEFITS REQUIRED BY THE IRC

	(A)	 	In order that the Pentegra DB Plan be maintained as a qualified trust under the IRC, the
benefits payable under the Regulations to or in respect of a Member shall be subject to the
limitations set forth in this Section 1, notwithstanding any other provision of the Regulations. A
Member’s benefits to which this Section 1 is applicable are those attributable to his Employer’s
contributions (and contributions by Affiliates as defined in Article XI, Section 6(A)), but
excluding to the maximum extent permissible under the IRC (i) any allowance payable under Article
VI to his Spouse as Contingent Annuitant, and (ii) any benefit which is not directly related to his
Retirement Allowance. All defined benefit plans (whether or not terminated) of an Employer and its
Affiliates (as defined in Article XI, Section 6(A)) are to be treated as one defined benefit plan
for purposes of applying the limitations on benefits described in this Section 1.
	 
	(B)	 	The benefits to which this Section 1 is applicable may not for any Limitation Year exceed the
actuarial equivalent (calculated as of the date of commencement of the Member’s Retirement
Allowance or his death, if earlier) of an annual single life annuity payable to the Member in an
amount equal to the lesser of:

	 	(i)	 	$90,000 (the “Dollar Limitation”), or
	 
	 	(ii)	 	100 percent of the Member’s High-3 Year Average Compensation (the
“Compensation Limitation”), subject, however, to the following provisions of this
Article XI. For purposes of this Article XI, “High-3 Year Average Compensation”
means a Member’s average annual salary for the three consecutive years of Benefit
Service during which his salary was highest (or for all the years of Benefit
Service if less than 3). For purposes of determining a Member’s “High-3 Year
Average Compensation” under this Subsection (B), a Member’s salary shall be his/her
415 Compensation.

 

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	 	 	 	For all purposes under the Regulations, “415 Compensation” shall mean the
compensation as required to be reported under Sections 6041, 6051, and 6052 of the
IRC (Wages, tips and other compensation as reported on Form W-2). Compensation is
defined as wages within the meaning of Section 3401(a) and all other payments of
compensation to an employee by the employer (in the
course of the employer’s trade or business) for which the employer is required to
furnish the employee a written statement under Sections 6041(d), 6051(a)(3), and
6052. Compensation must be determined without regard to any rules under Section
3401(a) that limit the remuneration included in wages based on the nature or
location of the employment or the services performed (such as the exception for
agricultural labor in Section 3401(a)(2)). Effective January 1, 1998, for purposes
of determining 415 Compensation, such compensation shall include any elective
deferral (as defined in Section 402(g) (3) of the IRC), and any amount which is
contributed or deferred by the Member’s Employer at the election of the Employee
and which is not includible in the gross income of the Employees by reason of
Sections 125, 457, and effective January 1, 1999, Section 132(f) (4) of the IRC.

	(C)	 	The limitations on the maximum amount of benefits contained in Subsection (B) of this Section 1
shall be adjusted as follows:

	 	(1)	 	The Dollar Limitation shall be adjusted annually, for limitation years beginning after
December 31, 1987, for increases in the cost-of-living on or after October 1, 1986 in accordance
with the IRS Regulations.
	 
	 	(2)	 	In the case of a benefit beginning prior to a Member’s social security retirement age, as
defined in Section 415(b)(8) of the IRC, the Dollar Limitation applicable to such benefit shall be
reduced in accordance with the IRS Regulations to an amount which is equal to a single life annuity
commencing at the same time which is the actuarial Equivalent Value of a straight life annuity
equal to the Dollar Limitation commencing at the Member’s social security retirement age.
The adjustment referred to in the preceding sentence shall be determined as
follows:

	 	(i)	 	If the annual benefit commences before the Member’s social security retirement age, but on
or after age 62, and the Member’s social security retirement age is 65, the dollar limitation for
benefits commencing on or after age 62 is determined by reducing the defined benefit dollar
limitation by 5/9 of one percent for each month by which benefits commence before the month in
which the Member attains age 65.

 

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	 	(ii)	 	If the annual benefit commences before the Member’s social security retirement
age, but on or after age 62, and the Member’s social security retirement age is
greater than 65, the dollar limitation for benefits commencing on or after age 62
is determined by reducing the defined benefit dollar limitation by 5/9 of one
percent for each of the first 36 months and 5/12 of one percent for each of the
additional months (up to 24 months) by which benefits commence before the month of
the Member’s social security retirement age.
	 
	 	(iii)	 	If the annual benefit of a Member commences prior to age 62, the defined
benefit dollar limitation shall be the actuarial equivalent, determined in
accordance with IRC Section 415 and IRS Regulations, of an annual benefit beginning
at age 62, as determined in (i) or (ii) above, reduced for each month by which
benefits commence before the month in which the Member attains age 62. For
Limitation Years beginning on or after January 1, 1995, such benefit may not exceed
the lesser of the equivalent amount computed using the interest rate and mortality
table (or tabular factor) used in the plan for actuarial equivalence for early
retirement benefits, and the amount computed using 5 percent interest and the
applicable mortality table (to the extent that the mortality decrement is used
prior to age 62), regardless of whether the benefit is or is not subject to Section
417(e)(3) of the IRC.

	 	(3)	 	In the case of a benefit beginning after the Member’s social security retirement age, the
Dollar Limitation shall be increased in accordance with the IRS
Regulations to an amount which is equal to a single life annuity commencing at the
same time which is the Equivalent Value of a single life annuity equal to the
Dollar Limitation commencing at the social security retirement age. The maximum
dollar limitation on benefits is the lesser of the equivalent amount computed using
the interest rate and mortality table (or tabular factor) used in the Pentegra DB
Plan’s Regulations for actuarial equivalence for late retirement benefits, and the
amount computed using 5 percent interest and the applicable mortality table,
regardless of whether the benefit is or is not subject to Section 417(e)(3) of the
IRC.

 

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	 	(4)	 	Notwithstanding the provisions of Subsection (B) and Paragraphs (1), (2) and (3) of this
Subsection (C), the benefits payable to a Member from the Pentegra
DB Plan shall not be deemed to exceed the limitations of such provisions if (i) the
retirement benefits payable with respect to such Member under the Pentegra DB Plan
and all other defined benefit plans of his Employer do not exceed $10,000 for the
Plan Year, or for any prior Plan Year, and (ii) the Employer has not at any time
maintained a defined contribution plan in which the Member participated. If the
Member has fewer than 10 years of Service, the $10,000 benefit shall be multiplied
by a fraction, the numerator of which is the Member’s years of Service (computed to
fractional parts of a year) and the denominator of which is 10.
	 
	 	(5)	 	In accordance with the IRC and the Regulations, if the Member has fewer than 10 years of
membership in the Pentegra DB Plan, the Dollar Limitation shall be multiplied by a fraction, the
numerator of which is the number of years (computed to fractional parts of a year) of membership in the Pentegra DB
Plan, and the denominator of which is 10. In the event a Member terminated
employment with an Employer prior to August 3, 1992, the Dollar Limitation
applicable to any amendment of the Regulations or election by the Employer under
the Regulations, made on or after May 17, 1989 but before August 3, 1992, which
improves benefits thereunder shall be subject to a separate 10 years of Pentegra DB
Plan membership requirement based only on years of Pentegra DB Plan membership
credited on or after the date of such amendment to, or election under, the
Regulations; provided, however, an Employer may elect, no later than June 30, 1993,
not to have a separate 10 years of Pentegra DB Plan membership requirement apply to
such benefit improvement; and provided, further, such election may not apply to any
such benefit improvement provided pursuant to an early retirement window benefit
under Article V, Section 7 unless (i) the amount of the benefit improvement would
be provided under a nonqualified plan providing benefits which otherwise would be
payable under the Pentegra DB Plan but for certain legal restrictions, (ii) all
such Members eligible for an early retirement window benefit under Article V,
Section 7 are given notice that the portion of any such benefit which was
restricted under the Pentegra DB Plan would be provided through a nonqualified
plan, and (iii) the Employer indemnifies the Board, the Pentegra DB Plan, the
employees of the Pentegra DB Plan and such other person or persons as may be
designated by the Board in such manner as shall be acceptable to the Board in its
sole discretion. In accordance with the IRC and
the IRS Regulations, if the Member has fewer than 10 years of Service, the
Compensation Limitation shall be multiplied by a fraction, the numerator of which
is the Member’s years of Service (computed to fractional parts of a year) and the
denominator of which is 10.

 

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	 	(6)	 	In no event shall Paragraph (5) of this Subsection (C) reduce the Dollar
Limitation and the Compensation Limitation to an amount less than one-tenth of the
applicable limitation (determined without regard to such Paragraph (5)).
	 
	 	(7)	 	For Limitation Years beginning on or after January 1, 1995, the actuarial equivalent
straight life annuity for purposes of applying the limitations under Section 415(b) of the IRC to
benefits that are not subject to Section 417(e)(3) of the IRC is equal to the greater of the
equivalent annual benefit computed using the interest rate and mortality table (or tabular factor)
specified in the Pentegra DB Plan’s Regulations for actuarial equivalence for the particular form
of benefit payable, and the equivalent annual benefit computed using a 5 percent interest rate
assumption and the applicable mortality table. For benefits subject to Section 417(e)(3), the
equivalent annual benefit shall be computed using the interest and mortality table (or tabular
factor) specified in the Pentegra DB
Plan’s Regulations for actuarial equivalence for the particular form of benefit
payable, or the equivalent annual benefit shall be computed using the applicable
interest rate and the applicable mortality table, with such applicable interest
rate and applicable mortality table equal to the interest rate and mortality table
specified in Article VII, Section 2(B); provided that for Limitation Years
beginning on or after July 1, 2004 and prior to July 1, 2006, when applying the
rule otherwise set forth in this sentence, “5.5 percent” shall be used in lieu of
the applicable interest rate. Notwithstanding the foregoing, with respect to
distributions commencing July 1, 2004 and before December 31, 2004, the amount
payable in a form subject to Section 417(e)(3) of the IRC shall not be less than
the amount permitted under this Section 1(BC)(7) using, when applying the rules of
this paragraph to the adjustment of that benefit to a straight life annuity, the
“applicable interest rate” under Section 417(e)(3) of the IRC in effect on June 30,
2004.

 

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	 	 	 	Notwithstanding the foregoing, effective on and after July 1, 2006, if the benefit is subject
to Section 417(e)(3) of the IRC, for purposes of applying the
limitations of Section 415(b) of the IRC, the annual benefit shall be adjusted to
an equivalent annual benefit in the form of a straight life annuity, which
equivalent annual benefit shall be the greatest of (i) the equivalent annual
benefit computed using the interest rate and mortality table (or tabular factor)
specified in the Pentegra DB Plan’s Regulations for actuarial equivalence for the
particular form of benefit payable; (ii) 105 percent of the equivalent annual
benefit using the applicable interest rate and applicable mortality table; and
(iii) the equivalent annual benefit using 5.5 percent interest rate and
applicable mortality table, with such applicable interest rate and applicable
mortality table equal to the interest rate and mortality table specified in
Article VII, Section 2(B).

	(D)	 	Notwithstanding the foregoing provisions of this Article XI, if a Member also participates in
any defined contribution plan (as defined in Sections 414(i) and 415(k) of the IRC) maintained by
the Employer (or any organization which is required to be aggregated with such Employer under
Section 414(b), (c), (m) or (o) of the IRC), the sum of the Member’s “Defined Benefit Fraction”
(as defined in IRC Section 415(e)(2)) and the Member’s “Defined Contribution Fraction” (as
defined in IRC Section 415(e)(3)) shall not exceed 1.0. If a Member makes contributions to the
Pentegra DB Plan, the amount of such contributions shall be treated as an annual addition to a
qualified defined contribution plan for purposes of Section 415 of the IRC.
	 
	 	 	Notwithstanding the above, effective for Limitation Years beginning on or after January
1, 2000, Section 415(e) of the IRC shall not apply.
	 
	(E)	 	Notwithstanding the foregoing provisions of this Article XI, if the maximum limitation on
Retirement Allowances with respect to any individual who was a Member prior to July 1, 1987 and
whose Retirement Allowance (determined without regard to any changes in the Regulations after May
5, 1986 and without regard to cost of living adjustments occurring after May 5, 1986) exceeds the
limitations set forth in Subsection (B) of this Section 1, then, for purposes of such Subsection
(B) and Sections 415(b) and (e) of the IRC, the Dollar Limitation with respect to such Member shall
be equal to such Member’s Retirement Allowance as of June 30, 1987; provided that, such Member’s
Retirement Allowance did not exceed the maximum limitation as in effect for all Plan Years
commencing prior to July 1, 1987.

 

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	(F)	 	The Pentegra DB Plan may from time to time adjust or modify the maximum limitations applicable
to a Member’s benefits under this Section 1 as may be required or permitted by the IRC or ERISA
prior to the date that payment of any of such benefits commences.

SECTION 2. SMALL BENEFITS

Following a Retiree’s termination of employment, the Pentegra DB Plan shall pay a Retiree, who has
not begun to receive his Retirement Allowance, a lump sum equal to the Equivalent Value of his
regular Retirement Allowance if such lump sum does not exceed $1,000 ($3,500 prior to March 28,
2005). Such lump sum shall be in lieu of the Retirement Allowance which otherwise would be payable.
If the Equivalent Value of a Member’s vested accrued benefit derived from Employer and Employee
contributions exceeds (or at the time of any prior distribution exceeded) $1,000 ($3,500 prior to
March 28, 2005), and the accrued benefit is immediately distributable, the Member and the Member’s
Spouse (or where either the Member or the Spouse has died, the survivor) must consent to any
distribution of such accrued benefit. The consent of the Member and the Member’s Spouse shall be
obtained in writing within the 90-day period ending on the annuity starting date. The annuity
starting date is the first day of the first period for which an amount is paid as an annuity or any
other form. The Pentegra DB Plan shall notify the Member and the Member’s Spouse of the right to
defer any distribution until the Member’s accrued benefit is no longer immediately distributable.
Such notification shall include a general description of the material features, and an explanation
of the relative values of, the optional forms of benefit available under the Pentegra DB Plan in a
manner that would satisfy the notice requirements of IRC Section 417 (a) (3), and shall be provided
no less than 30 days and no more than 90 days prior to the annuity starting date. However,
distribution may commence less than 30 days after the notice described in the preceding sentence is
given, provided the distribution is one to which Sections 401 (a) (11) and 417 of the IRC do not
apply, the Pentegra DB Plan clearly informs the Member that the Member has a right to a period of
at least 30 days after receiving the notice to consider the decision of whether or not to elect a
distribution (and, if applicable, a particular distribution option), and the Member, after
receiving the notice, affirmatively elects a distribution.

Notwithstanding the foregoing, only the Member need consent to the commencement of a distribution
in the form of a qualified joint and survivor annuity while the accrued benefit is immediately
distributable. Neither the consent of the Member nor the Member’s Spouse shall be required to the
extent that a distribution is required to satisfy Section 401(a)(9) or Section 415 of the IRC.

 

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SECTION 3. AMOUNTS PAYABLE TO INCOMPETENTS, MINORS OR ESTATES

If the Pentegra DB Plan shall find that any person to whom any amount is payable under the
Regulations is unable to care for his affairs because of illness or accident, or is a minor, or has
died, then any payment due him or his estate (unless a prior claim therefor has been made by a duly
appointed legal representative) may be paid to his Spouse, relative or any other person deemed by
the Board to be a proper recipient on behalf of such person otherwise entitled to payment. Any such
payment shall be a complete discharge of the liability of the Pentegra DB Plan therefor.

SECTION 4. NON-ALIENATION OF AMOUNTS PAYABLE

Except insofar as applicable law may otherwise require, or pursuant to the terms of a Qualified
Domestic Relations Order, no amount payable under the Regulations shall be subject in any manner to
alienation by anticipation, sale, transfer, assignment, bankruptcy, pledge, attachment, charge or
encumbrance of any kind, and any attempt to so alienate shall be void; nor shall the Pentegra DB
Plan in any manner be liable for or subject to the debts or liabilities of any persons entitled to
any such amount payable; and further if for any reason any amount payable under the Regulations
would not devolve upon such person entitled thereto, then the Board, in its discretion, may
terminate his interest and hold or apply such amount for the benefit of such person or his
dependents as it may deem proper.

SECTION 5. UNCLAIMED BENEFITS

If the Pentegra DB Plan cannot ascertain the whereabouts of any person to whom an amount is payable
under the Regulations, and, if after 5 years from the date such payment is due, a notice of such
payment is mailed to the address of such person, as last shown on the records of the Pentegra DB
Plan, and within 3 months after such mailing such person has not filed with the Pentegra DB Plan
written claim therefor, the Board may direct that such payment and all remaining payments and other
benefits, if any, otherwise payable on his account be cancelled and, to the extent permitted by
ERISA, be applied to reduce contributions. Upon cancellation, the Pentegra DB Plan shall have no
further liability therefor, provided that any such amount payable shall be reinstated if such
person subsequently makes a valid claim therefor.

 

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SECTION 6. TOP HEAVY PROVISIONS

The provisions of this Section 6 shall apply and supersede all other provisions in the
Regulations inconsistent therewith during each Plan Year with respect to which an Employer’s plan
constitutes a top heavy plan for purposes of the IRC.

	(A)	 	For purposes of this Section 6, the following terms shall have the meanings set forth below:

	 	(1)	 	“Affiliate” — Any entity affiliated with any Employer within the meaning of Section
414(b), 414(c) or 414(m) of the IRC, except that for purposes of applying the provisions hereof
with respect to the limitation on contributions, Section 415(h) of the IRC shall apply.
	 
	 	(2)	 	“Aggregation Group” — The group composed of each qualified retirement plan of the Employer
or an affiliate in which a key employee is a participant and each other qualified retirement plan
of the Employer or an affiliate which enables a plan of the Employer or an affiliate in which a key
employee is a participant to satisfy Section 401(a)(4) or 410 of the IRC. In addition, the Board
may choose to treat any other qualified retirement plan as a member of the aggregation group if
such aggregation group will continue to satisfy Sections 401(a)(4) and 410 of the IRC with such
plan being taken into account.
	 
	 	(3)	 	“Determination Date” — the last day of the preceding Plan Year or, in the case of the
first Plan Year, the last day of such Plan Year.
	 
	 	(4)	 	“Key Employee” — A “key employee” as defined in Sections 416(i)(1) and (5) of the IRC and
IRS Regulations. For purposes of Section 416 of the IRC and for determining who is a Key Employee,
an Employer which is not a corporation shall be deemed to have “officers” only for Plan Years
beginning after June 30, 1985. For purposes of determining who is a key employee, compensation
shall mean 415 Compensation (as defined in Section 1(B) of this Article XI).

 

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	 	(5)	 	“Top Heavy Ratio” — is a fraction, the numerator of which is the sum of the present value
of accrued benefits of all Key Employees as of the applicable Determination Date (including any
part of any accrued benefit distributed in the five year period ending on the Determination Date),
and the denominator of which is the sum of the present value of accrued benefits (including any
part of
any accrued benefits distributed in the five year period ending on the
Determination Date). The accrued benefits of a Member who (i) is not a Key Employee
but who was a Key Employee in the prior year, or (ii) has not been credited with at
least one hour of Service with his Employer at any time during the five year period
ending on the determination date will be disregarded. The calculation of the Top
Heavy Ratio, and the extent to which distributions, rollovers, and transfers are
taken into account will be made in accordance with Section 416 of the IRC and the
IRS Regulations.

	(B)	 	The Employer’s plan under the Pentegra DB Plan will be considered a top heavy plan for any Plan
Year if the Employer’s plan is determined to be a top heavy plan as of the last day of the
immediately preceding Plan Year. For purposes of determining whether an Employer is maintaining a
plan under the Pentegra DB Plan which constitutes a top heavy plan, the present value of a Member’s
Retirement Allowance shall be determined using 8% interest and the 1989 George B. Buck mortality
table with a 50%/50% blend of the male and female mortality rates.
	 
	 	 	The accrued benefit of a Member other than a Key Employee shall be determined under (i) the
method, if any, that uniformly applies for accrual purposes under all defined benefit plans
maintained by the Employer, or (ii) if there is no such method, as if such benefit accrued
not more rapidly than the slowest accrual rate permitted under the fractional rule of
Section 411(b)(1)(C) of the IRC.

	 
	 	 	For purposes of Subsection (E)(1) of this Section 6, the present value of a Member’s
Retirement Allowance shall be determined as of the last day of the immediately preceding
Plan Year and shall include amounts distributed to or on behalf of the Member within the
four immediately preceding Plan Years.
	 
	(C)	 	For any Plan Year that an Employer’s plan is determined to be a top heavy plan, only the first
$200,000 (adjusted annually for years beginning on or after January 1, 1998, in accordance with IRS
Regulations) (or, for Plan Years beginning on or after July 1, 1994, $150,000 (as adjusted for
cost-of-living and otherwise limited or modified in accordance with Section 401(a)(17) of the IRC
and applicable IRS rulings and IRS
Regulations)) of compensation (as defined in Section 1.415-2(d) of the IRS
Regulations) shall be credited to a Member for purposes of the Regulations.

 

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	(D)	 	If an Employer’s plan is a top heavy plan with respect to any Plan Year, the nonforfeitable
percentage of the Retirement Allowance which is derived from Employer contributions on behalf of
each Member who is credited with at least one Hour of Service on or after the date an Employer’s
plan becomes top heavy shall not be less than the amount determined in accordance with Table II set
forth in Article IV, Section 2(B)(v).

	(E) 	(1)	 	 Subject to the provisions of Subsection (F) of this Section 6, if an Employer’s plan
constitutes a top heavy plan, the Retirement Allowance derived from Employer contributions for each
Member of the Employer who has completed a year of Membership Service and who is not a Key Employee
shall not, at such point, be less than the product of (a) such Member’s average 415 Compensation
(as defined in Section 1(B) of this Article XI), multiplied by the (b) lesser of (i) 2% multiplied
by the number of years (computed to fractional parts of a year) of Membership Service with the
Employer or (ii) 20%. For purposes of the preceding sentence, years of Membership Service shall not
include any year of Membership Service credited with respect to Plan Years which began prior to
January 1, 1984, or any other year of Membership Service credited with respect to a Plan Year
during which the an Employer’s plan did not constitute a top heavy plan.
	 
	 	(2)	 	For purposes of this Subsection (E), average 415 Compensation shall mean the average of a
Member’s 415 Compensation for the period of five consecutive years of Service (or, if the Member
does not have five consecutive years of Service, his actual number of consecutive years of Service)
during which the Member had the greatest aggregate 415 Compensation.
	 
	(F) 	(1)	 	 For each Plan Year that an Employer’s plan is a top heavy plan, 1.0 shall be substituted
for 1.25 as the multiplicand of the Dollar Limitation in determining the denominator of the Defined
Benefit Fraction and of the Defined Contribution Fraction for purposes of Section 415(e) of the
IRC, except that this paragraph shall not apply effective for Limitation Years beginning on or
after January 1, 2000 due to the repeal of Section 415(e) of the IRC.

 

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	 	(2)	 	If, after substituting 90% for 60% wherever the latter appears in Section 416(g) of the
IRC, an Employer’s plan is not determined to be a top heavy plan, the
provisions of Paragraph (1) of this Subsection (F) shall not be applicable if the
Retirement Allowance for each Member who is not a Key Employee is determined in
accordance with Subsection (E)(1) of this Section 6, substituting 3% for 2% and 30%
for 20% in this Subsection.

	(G)	 	The Board shall, to the maximum extent permitted by the IRC and in accordance with the
governmental regulations, apply the provisions of this Section 6 by taking into account the
benefits payable and the contributions made under the Pentegra Defined Contribution Plan for
Financial Institutions (formerly known as the Financial Institutions Thrift Plan) or any other
qualified plan maintained by an Employer, to prevent inappropriate omissions or required
duplication of minimum contributions.

SECTION 7. TRANSFER OF ASSETS AND LIABILITIES FROM PRIOR PLAN

Provided that all benefits (including all optional forms of benefit) are protected in accordance
with Section 411(d)(6) of the IRC (or any successor thereto) and the IRS Regulations thereunder, an
Employer which adopts the Pentegra DB Plan may, with the approval of the Board and in accordance
with such administrative procedures as the Board may adopt, transfer the assets and liabilities
under a tax-qualified retirement plan maintained by such Employer (the “prior plan”) to the
Pentegra DB Plan with respect to retirees currently receiving benefits and participants with
deferred vested benefits under the prior plan. As a condition to the Pentegra DB Plan’s acceptance
of such assets and liabilities under the prior plan, the Employer shall provide, in a form and
manner acceptable to the Board, (i) an indemnification agreement by the Employer providing for the
indemnification of the Board, the Pentegra DB Plan, employees of the Pentegra DB Plan and such
other person or persons as may be designated by the Board, (ii) a representation by the Employer’s
counsel that, among other things, the prior plan satisfies the requirements for qualification under
the IRC, including, but not limited to Section 401(a) thereunder, and (iii) evidence, satisfactory
to the Board, that the Employer satisfies the appropriate capital requirements under the Financial
Institutions Reform, Recovery and Enforcement Act of 1989 or such other similar statutory or
regulatory requirement.

In addition to protecting those prior retirement plan benefits as required in the preceding
paragraph, an Employer may preserve any other retirement plan options which are not required to be
protected under Section 411(d)(6) of the IRC which the Board, in its discretion, determines to be
legal and administratively feasible.

 

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SECTION 8. SUPPLEMENTAL RETIREMENT ALLOWANCE

Each Member may elect to supplement his Retirement Allowance (the “Supplemental
Retirement Allowance”) by electing to transfer assets held on the Member’s behalf in a defined
contribution plan maintained by the Member’s Employer (or an Individual Retirement Account funded
exclusively from a distribution from a qualified plan maintained (or previously maintained) by his
Employer) to the Pentegra DB Plan if such election is made within one (1) year of the Member’s
commencement of benefit payments under the Pentegra DB Plan and the Member did not elect to receive
any portion of his Retirement Allowance in the form of a lump sum payment.

Upon receipt of the Member’s asset transfer, the Pentegra DB Plan shall convert the amount
transferred to the applicable normal retirement form, subject to the right to elect an optional
form of payment with spousal consent, if applicable. The factor used to convert the amount
transferred to the applicable annuity payment form shall be determined by (i) the interest factor
mandated by the Retirement Protection Act of 1994 which shall be the monthly average 30 Year
Treasury rate (or such other analogous rate prescribed by the IRS) with a three month look back
from the asset transfer date plus .75%, and (ii) the GAM 83 mortality table (or such other
mortality table as required by the IRS).

Should a Member die after transferring assets to the Pentegra DB Plan pursuant to this Section 8
but prior to commencing payment of his Supplemental Retirement Allowance, the death benefit
attributable to such transfer amount shall be paid in one lump sum to the Member’s Spouse as
Beneficiary; provided, however, that if such Retiree is not married or the Retiree’s Spouse had
consented in writing to the designation of a different Beneficiary, the transferred benefit will be
paid to such designated Beneficiary.

 

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ARTICLE XII WITHDRAWAL OF PARTICIPATING EMPLOYER

SECTION 1. GENERAL

	(A)	 	Any Employer may withdraw from the Pentegra DB Plan pursuant to the requirements of this
Article XII and such other administrative procedures as may be adopted from time to time by the
Pentegra DB Plan.
	 
	(B)	 	The provisions of this Article XII shall be effective with respect to any Employer
withdrawal from the Pentegra DB Plan that occurs on or after July 1,2005.

SECTION 2. NOTICE AND EFFECT

	(A)	 	Any Employer may withdraw from the Pentegra DB Plan by giving the Pentegra DB Plan written
notice specifying a withdrawal date which shall be the last day of any calendar quarter that occurs
at least 60 days following the receipt of such notice by the Pentegra DB Plan. Such date shall be
referred to as the Date of Withdrawal (DOW).
	 
	(B)	 	An Employer’s withdrawal notice shall be deemed to be invalid unless the benefit accruals for
its Employees are frozen on or before the specified DOW in accordance with the applicable
provisions of the IRC, ERISA, or the rulings and regulations promulgated thereunder. The retirement
benefits of each Employee who is a Member on the DOW based upon Salary and Benefit Service to such
date shall be nonforfeitable as of the DOW.
	 
	(C)	 	The Pentegra DB Plan may require any Employer to withdraw if the Pentegra DB Plan determines
that the Employer has failed to pay its contributions, charges or other assessments made by the
Board, or to comply with any other provision of the Regulations or any other applicable provision
of the IRC, ERISA, or the rulings and regulations promulgated thereunder. The withdrawal date
specified by the Pentegra DB
Plan shall be the last day of any calendar quarter that occurs at least 60 days after it
has given the Employer written notice. Such date shall be referred to as the Date of
Withdrawal (DOW). A withdrawal that is initiated pursuant to this Section 2(C) shall in all
other respects be administered as if it had been initiated directly by the Employer
pursuant to Article XII Section 2(A).
	 
	(D)	 	An Employer who has properly submitted a withdrawal notice may give the Pentegra DB Plan a
written rescission of such withdrawal notice at any time prior to the transfer of its benefit
obligations pursuant to Article XII, Section 6. Such rescission shall have no
effect with respect to the actions the Employer has taken to cease benefit accruals
pursuant to Article XII Section 1(B).

 

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	(E)	 	An Employer shall be deemed to have rescinded its withdrawal notice in the event that it fails,
within a reasonable period of time, to comply with any administrative, funding or other workstep
necessary to complete the withdrawal, as determined by the Pentegra DB Plan in its sole discretion.
Such failures may include, but are not limited to, a failure to timely provide required
information, a failure to timely execute documents, or a failure to timely remit any required
contribution. The Pentegra DB Plan shall promptly notify an
Employer of such deemed rescission. An Employer that has incurred a deemed rescission shall
not be precluded from withdrawing from the Pentegra DB Plan as of a later DOW pursuant to
the general notice requirements of this Section 2.

SECTION 3. DETERMINATION OF NOTIONAL PLAN ASSETS

	(A)	 	In connection with a request to withdraw, an Employer shall be credited for bookkeeping
purposes with a notional amount of assets in the Pentegra DB Plan. Such amount shall be referred to
as the Employer’s Notional Assets. An Employer’s Notional Assets shall be equal to the following:

	 	(1)	 	The Employer’s Prior Market Value of Assets, plus or minus
	 
	 	(2)	 	Assumed Investment Earnings through the DOW, plus or minus
	 
	 	(3)	 	Asset Adjustments; plus or minus
	 
	 	(4)	 	Credited Investment Income from the DOW to the Date of Asset Transfer; plus or minus

	 
	 	(5)	 	Adjustments for Benefit Payments and Contributions

	(B)	 	An Employer’s Prior Market Value of Assets shall be equal to the fair market value of assets
that the Employer was notionally allocated as of the actuarial valuation date used for purposes of
compliance with the minimum funding standards of ERISA and the IRC coincident with or immediately
preceding the DOW. To the extent such fair market value includes any contributions receivable from
the Employer or is net of any benefits payable, such receivables and payables shall be disregarded.

 

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	(C)	 	An Employer’s Assumed Investment Earnings through the DOW shall be equal to the investment
earnings (or losses) that are assumed to have been earned on the Employer’s Prior Market Value of
Assets between the relevant actuarial valuation date
coincident with or immediately preceding the DOW and such DOW. The assumed investment
earnings shall be calculated based on the actual rates of return for the assets of the
Pentegra DB Plan to the extent such rates of return are readily determinable, or reasonable
estimates of such rates of return, as determined by the Pentegra DB Plan in its sole
discretion, in the event that actual rates of return are not readily determinable.
	 
	(D)	 	An Employer’s Asset Adjustments shall be equal to the sum of the Employer’s Orphan Adjustment,
Plan Entry Adjustment, Withdrawal Charges and External Expense Adjustment and Pooled Gain or Loss
Adjustment, determined as follows:

	 	(1)	 	An Employer’s Orphan Adjustment shall equal the Employer’s proportionate share of the
estimated total cost to purchase insured annuities for all Orphans (as defined below)as of the DOW
in excess of the fair value of assets that have previously been allocated to such Orphans. For
purposes of determining the Orphan Adjustment, the following shall apply:

	 	(i)	 	Notwithstanding the foregoing, an Employer that joined the Pentegra DB Plan on or after
July 1, 2006 shall not have any Orphan Adjustment. The proportionate share for any other Employer
shall be determined as the ratio of the Employer’s percentage points as provided in Schedule X
(attached hereto) to the total of all percentage points for all Employers
listed in Schedule X that have not previously withdrawn from the Pentegra
DB Plan.
	 
	 	(ii)	 	For purposes of determining any Orphan Adjustment, the estimated total cost to purchase
annuities shall be based on the present value of accrued benefits for all Orphans measured as of
the actuarial valuation date coincident with or immediately preceding the DOW. Such present value
shall be based on the assumptions stipulated by the PBGC under Section 4044 of ERISA for measuring
the present value of benefits in a standard termination for a single employer plan. Such present
value shall be increased with interest until the DOW using the immediate interest rate employed in
the present value calculation.
	 
	 	(iii)	 	The fair value of assets that have previously been allocated to Orphans shall equal the
fair value of assets allocated to the Orphans for purposes of developing minimum funding
requirements for the Pentegra DB Plan under the IRC and ERISA as of the actuarial valuation date
coincident with or immediately preceding the DOW. Such fair value of assets will be
increased with interest until the DOW using the immediate interest rate
employed in developing the present values pursuant to Article XII, Section
3(D)(1)(ii).

 

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	 	 	For purposes of this Article XII, an “Orphan” is a Member or former Member with an accrued
benefit under the Pentegra DB Plan whose Employer has previously withdrawn from the Pentegra DB
Plan without establishing a qualified successor plan to which the liability for the Member’s or
former Member’s benefits under the Pentegra DB Plan has been transferred.

	 	(2)	 	An Employer’s Plan Entry Adjustment, which will always be a negative adjustment in the
determination of the amount of Notional Assets, is calculated by multiplying the fair value of
assets that the Employer had transferred to the Pentegra DB Plan by the percentage specified in
Table XX (attached hereto) based on the Employer’s date of entry into the Pentegra DB Plan.
	 
	 	(3)	 	An Employer’s Withdrawal Charges and External Expense Adjustment shall equal the sum of
the following:

	 	(i)	 	An Employer’s Withdrawal Charge shall be equal to the regular annual administrative fee
charged by the Pentegra DB Plan or, if greater, one-half percent (0.5%) of the Employer’s Plan
Withdrawal Liabilities as defined in Section 4(B) determined assuming that the Pentegra DB Plan was
fully funded on a plan termination basis as contemplated under IRC
Section 414(l). An Employer who files a withdrawal notice but does not
withdraw for any reason as of the designated DOW shall nevertheless be
assessed a withdrawal charge, which shall be determined by the Pentegra DB
Plan on a reasonable basis.
	 
	 	(ii)	 	An Employer’s External Expense Adjustment shall equal the actual external costs incurred
by the Pentegra DB Plan in connection with the Employer’s request to withdraw. Such costs may
include, but are not limited to, legal fees, actuarial fees, audit fees and investment fees. Such
costs shall be charged to the Employer, irrespective of the date such costs arise. An Employer who
files a withdrawal notice but does not withdraw for any reason as of the designated DOW shall
nevertheless be assessed the full amount of all incurred external costs.

 

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	 	(4)	 	An Employer’s Pooled Gain or Loss Adjustment shall equal the pooled gain or loss that
otherwise would have been allocated to the notional assets of the Pentegra DB Plan credited to the
Employer as of the actuarial valuation date immediately following the DOW. Such adjustment shall
only apply to an Employer that has selected a June 30th DOW.

	(E)	 	An Employer’s Credited Investment Income from the DOW to the Date of Asset Transfer shall be
equal to the investment earnings that are assumed to have been earned on the sum of the values
determined in Article XII, Sections 2(B), 2(C) and 2(D) between the DOW and the date(s) that assets
are distributed pursuant to the operation of Article XII, Section 6. The assumed earnings shall be
based on a fixed rate of interest equal to the Three Year Constant Maturity rate in effect for the
week ending coincident with or immediately preceding the DOW, as published in the Federal
Statistical Release. In the absence of the Release, the Pentegra DB Plan may obtain such rate from
any other source it deems appropriate.
	 
	(F)	 	An Employer shall receive a positive asset adjustment with respect to any contribution that is
made by the Employer that is not included in the Employer’s Prior Market Value of Assets. An
Employer shall receive a negative asset adjustment with respect to any benefit payment made by the
Pentegra DB Plan on behalf of the Employer’s Members that occurred after the date as of which the
Employer’s Prior Market Value of Assets had been determined. In all cases, the Pentegra DB Plan
shall allocate a pro-rata share of investment income or losses using reasonable methods to reflect
the timing of such contributions and benefit payments, and in a manner that is consistent with
Article XII, Sections 2(C) and 2(E).

SECTION 4. DETERMINATION OF PLAN WITHDRAWAL LIABILITIES

	(A)	 	A withdrawing Employer shall elect the method under which its liabilities with respect to its
Members shall be satisfied effective as of the DOW. The allowable methods are:

	 	(1)	 	The purchase of single premium insured annuities from one or more qualified insurance
companies; or
	 
	 	(2)	 	The transfer of all Plan Withdrawal Liabilities with respect to such withdrawing
Employer from the Pentegra DB Plan to a qualified successor plan.

 

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	(B)	 	An Employer’s Plan Withdrawal Liabilities shall be equal to the following:

	 	(1)	 	In the case of an Employer that has elected annuity purchases, the total cost of all such
purchases
	 
	 	(2)	 	In the case of an Employer that has elected to have assets and liabilities transferred to
a qualified successor plan, the amount of assets that will be transferred to such qualified
successor plan in accordance with IRC Section 414(l), ERISA Section 4044 and the provisions of this
Article XII, pursuant to determinations made by the Pentegra DB Plan using reasonable procedures.

			
	SECTION 5.	 	DETERMINATION OF FINAL CONTRIBUTION DUE BY WITHDRAWING EMPLOYER

A withdrawing Employer shall be required to remit a final contribution to the Pentegra DB Plan as
of the date insured annuity contracts are purchased (in the case of an Employer withdrawal without
a qualified successor plan) or as of the date of transfer of Plan Withdrawal Liabilities (in the
case of an Employer withdrawal with a qualified successor plan). The final contribution for a
withdrawing Employer shall equal the excess, if any, of the Employer’s Plan Withdrawal Liabilities
as defined in Article XII, Section 4(B) over the Employer’s Notional Assets as defined in Article
XII, Section 3(A), as determined as of the date referred to in the preceding sentence of this
Article XII, Section 5.

SECTION 6. TRANSFER OF ASSETS AND LIABILITIES OUT OF THE PENTEGRA DB PLAN

The Pentegra DB Plan shall purchase insured annuities or transfer assets and liabilities to a
qualified successor plan as soon as administratively feasible following the receipt of any
contributions due from the Employer pursuant to Article XII, Section 5 and such other documents,
elections, certifications or other items as may be deemed necessary by the Pentegra DB Plan. Upon
the Pentegra DB Plan’s purchase of insured annuity contracts or the transfer of assets and
liabilities to a qualified successor plan, as the case may be, the Pentegra DB Plan shall have no
liability for the benefit liabilities that are payable under such annuity contracts or that were
transferred to the qualified successor plan.

 

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SECTION 7. TRANSFER OF EXCESS ASSETS TO A QUALIFIED SUCCESSOR PLAN

	(A)	 	In the event that a withdrawing Employer has elected to have the liabilities for its Members
transferred to a qualified successor plan, any excess of the Employer’s Notional Assets over the
Employer’s Plan Withdrawal Liabilities shall be transferred to
such qualified successor plan pursuant to Article XII, Section 7(B), but only to the extent
that the Pentegra DB Plan determines that such transfer is permissible in accordance with
IRC Section 414(l) and ERISA Section 4044 as of the DOW. To the extent that a transfer is
permissible but in an amount less than the full value of the Employer’s excess assets, such
lesser amount shall be transferred in lieu of the full amount of excess assets. To the
extent that the Pentegra DB Plan determines that a transfer of any amount is impermissible,
no transfer shall occur, and the withdrawing Employer and the qualified successor plan of
such withdrawing Employer shall forfeit all rights with respect to such excess assets and
such assets shall remain in the Pentegra DB Plan.
	 
	(B)	 	Any transfer of the full or limited amount of excess assets shall be made over a three-year
period to the qualified successor plan of the withdrawn Employer. One-third of such amount shall be
transferred to the qualified successor plan as of the first anniversary of the DOW. One-half of the
remaining undistributed amount shall be transferred to the qualified successor plan as of the
second anniversary of the DOW. The entirety of the remaining undistributed amount shall be
transferred to the qualified successor plan as of the third anniversary of the DOW. Any portion of
the excess assets that is held by the Pentegra DB Plan shall be credited with a fixed rate of
investment earnings pursuant to Article XII, Section 3(E). Notwithstanding the preceding, in the
event that the Employer terminates or otherwise fails to maintain the qualified successor plan
prior to the completion of the transfer of excess assets, no further asset transfers shall occur,
and any rights of the Withdrawing Employer or its qualified successor plan to the remaining excess
assets shall be forfeited, and such assets shall remain in the Pentegra DB Plan.

SECTION 8. RESTRICTIONS ON QUALIFIED SUCCESSOR PLAN

A transfer of assets and liabilities of the Pentegra DB Plan to a qualified successor plan (whether
by merger or consolidation with such qualified successor plan or otherwise) shall not be made
unless each Member would, if either the Employer’s or Employers’ participation in the Pentegra DB
Plan or such qualified successor plan then terminated, receive a benefit immediately after such
transfer which (after taking account of any distributions or payments to them as part of the same
transaction) is equal to or greater than the benefit the Member would have been entitled to receive
immediately before such transfer if the Employer’s or Employers’ participation in the Pentegra DB
Plan had then been terminated. The Pentegra DB Plan may also require appropriate indemnification
from the Employer or Employers maintaining such qualified successor plan before making such a
transfer.

 

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SECTION 9. PARTIAL TERMINATION

If any governmental authority or the Pentegra DB Plan determines that a partial termination (within
the meaning of the IRC or ERISA) of the Pentegra DB Plan has occurred, then (i) the rights of all
its affected Members to their retirement benefits accrued to the partial termination date shall be
nonforfeitable, and (ii) such accrued retirement benefits shall be administered and distributed in
accordance with the applicable provisions of the Pentegra DB Plan.

SECTION 10. SPECIAL PROCEDURES UPON CONSERVATORSHIP OR RECEIVERSHIP

	(A)	 	Notwithstanding anything in the Regulations to the contrary and in accordance with such
administrative procedures, requirements and conditions as the Board shall adopt, if an Employer
participating in the Pentegra DB Plan is placed into conservatorship or receivership by the
Resolution Trust Corporation (the “RTC”) (or such other appropriate governmental authority), the
provisions of this Section 10 shall apply.

	(B)	(i)	 	If an Employer is placed into conservatorship by the RTC, such Employer’s participation in
the Pentegra DB Plan will continue uninterrupted without any formal action by the RTC or the
Employer and retirement benefits will continue to accrue for its Members.
	 
	 	(ii)	 	If the Employer is placed into receivership by the RTC, the RTC will have sixty (60) days
(unless within such 60-day period the RTC requests an extension for up to thirty (30) days and the
Pentegra DB Plan in its sole discretion approves such request) from the date the Employer was
placed into receivership to reaffirm the Employer’s participation in the Pentegra DB Plan in which
event benefits shall continue to accrue from the date the Employer was placed into receivership.
Alternatively, the RTC may elect to improve benefits as of the date of receivership in such manner
as shall be prescribed by the Pentegra DB Plan, provided in such case the Employer has a sufficient
accounting credit under the Pentegra DB Plan to offset the cost of such benefit improvements. The
credit described in the preceding sentence, which for purposes of this Section 10 shall be referred
to as “FECO,” represents with respect to an Employer an accounting credit entry on the books and
records of the Pentegra DB Plan which may be applied solely to offset an Employer’s contribution
obligations to the Pentegra DB Plan. FECO may not be transferred by the Pentegra DB Plan for an Employer’s general
corporate use or otherwise in contravention of applicable law.

 

107

 

	(C)	 	If the RTC, on behalf of an Employer which is placed in receivership, elects to improve
benefits, such Employer will be deemed to have withdrawn from the Pentegra DB Plan (following the
election to improve benefits) without a qualified successor plan as of the date the Employer was
placed into receivership. Alternatively, if the RTC neither reaffirms (within the time prescribed
in Subsection (B) of this Section 10) the participation in the Pentegra DB Plan of an Employer
which was placed into receivership nor elects to improve benefits, the Employer will be deemed to
have withdrawn from the Pentegra DB Plan without a qualified successor plan as of the date the
Employer was placed into receivership.

	 
	(D)	 	If an Employer which has a FECO is placed into conservatorship or receivership by the RTC and
such Employer has not withdrawn (or has not been deemed to withdraw) from the Pentegra DB Plan
without a qualified successor plan, the RTC may, in accordance with this Subsection (D) and such
procedures as may be adopted by the Board, have the FECO made available under the Pentegra DB Plan
to another entity (referred to as an “Acquirer”) if such Acquirer, in accordance with the
Regulations, adopts the Pentegra DB
Plan. The maximum amount of the FECO which the RTC may make available to an Acquirer is a
fraction of the “available FECO,” the numerator of which is the PBGC value (as determined
under IRC Section 414(l) and the IRS Regulations thereunder) of the accrued benefits of the
Employees who are transferred to the Acquirer and the denominator of which is the PBGC
value of the accrued benefits of all of the Employees of the Employer as of the date of the
acquisition of such Employer by such Acquirer, inclusive of those Employees being
transferred to the Acquirer. The “available FECO” is the total FECO attributable to the
Employer as of the date of the acquisition, reduced by the amount of any FECO which could
have been, but was not, made available to any previous Acquirer. The maximum amount of FECO
that may be made available to an Acquirer shall not be reduced as a result of Employees
being terminated by the RTC on or after the date of conservatorship or receivership. If an
Acquirer does not elect to participate in the Pentegra DB Plan, there shall be deemed to
occur a withdrawal by the Employer without a qualified successor plan with respect to the
Employees who are transferred to the Acquirer and such Employees shall become 100% vested
in their accrued benefit regardless of their number of years of Vesting Service. The RTC
may apply any portion of the FECO remaining after an acquisition to fund the normal cost or
to improve benefits with respect to those Employees who have not been transferred to the
Acquirer and who continue to be employed by the Employer. The amount of any FECO which
could have been, but was not, transferred to any previous Acquirer will be the first amount
to be applied to fund the normal cost or to improve benefits with respect
to those Employees who continue to be employed by the Employer. Any FECO remaining after
the FECO attributable to an Employer’s participation in the Pentegra DB Plan is applied, as
provided in this Subsection (D), shall remain in the Pentegra DB Plan.

 

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SECTION 11. MISCELLANEOUS PROVISIONS

	(A)	 	Upon any Employer withdrawal, the Employer shall continue to make all contributions required to
satisfy the minimum funding standards of the IRC and ERISA as determined by the Pentegra DB Plan.
Any unpaid Employer contributions, charges or other assessments shall become immediately due and
payable. All unpaid contributions of the
Employer shall constitute a first lien on the Employer’s assets and may be recorded by the
Pentegra DB Plan in any jurisdiction.
	 
	(B)	 	Upon any Employer withdrawal, the Pentegra DB Plan shall notify the IRS and any other
appropriate governmental authority in such manner as applicable law may require.
Subject to any conditions which the IRS or other appropriate governmental authority may
impose, disposition shall be made in accordance with this Article XII.
	 
	(C)	 	In the event of an Employer withdrawal, no amount shall become payable by the Pentegra DB Plan
on or after such Employer’s DOW to or in respect of any of its Members (including those on leave of
absence and inactive as described in Article X) except as provided under the applicable provisions
of the Pentegra DB Plan’s Regulations and no amount shall be payable to the Employer.
	 
	(D)	 	For purposes of this Article XII, a qualified successor plan is a defined benefit pension plan
established by the withdrawing Employer which (i) has been determined by the IRS to be a qualified
and tax-exempt plan and trust within the meaning of the IRC, (ii) has provided the Pentegra DB Plan
with written certification by its appropriate fiduciaries that in the event of a transfer of assets
and liabilities to such successor plan as described in this Article XII, the qualified successor
plan shall be fully liable for the payment of all such transferred liabilities and that the
Pentegra DB Plan shall not be liable for the payment of any part of such liabilities, (iii) is
intended to be maintained indefinitely and (iv) meets such other requirements of the IRS, other
appropriate governmental authority or of the Board which may apply.

 

109

 

	(E)	 	Notwithstanding anything to the contrary contained herein, upon receipt by the Pentegra DB Plan
of a request from a federal governmental entity, as statutory receiver for a withdrawn Employer,
provided the federal governmental entity became statutory receiver
for the withdrawn Employer following such Employer’s withdrawal from the Pentegra DB Plan and
establishment of a qualified successor plan, the Pentegra DB Plan may, in its sole discretion and
subject to any conditions provided herein or otherwise, accelerate the transfer of the remaining
amount of any excess assets pursuant to Article XII, Section 7, if any, to the qualified successor
plan maintained by the Employer for which such governmental entity acts as receiver. Any request by
a federal governmental entity, as statutory receiver for a withdrawn Employer, to accelerate the
transfer of the remaining amount of such excess assets shall be accompanied by a certification to
the effect that such governmental entity was duly appointed as receiver, citing the statutory
authority therefore, and that such appointment continues in effect as of the date of the
accelerated payment request. Prior to any such accelerated payment of the excess assets, such
governmental entity shall indemnify the Pentegra DB Plan, in such form and manner as is acceptable
to the Pentegra DB Plan, for the full amount of all reasonable legal fees, costs and expenses
(including damages) which arise from any claims made against the Pentegra DB Plan by participants
under the qualified successor plan of the Employer in receivership because of the acceleration of
payments by the Pentegra DB Plan.

 

110

 

ARTICLE XIII TERMINATION OF THE TRUST

	(A)	 	The Trust is the sole source of all benefits under the Regulations and shall continue, unless
terminated as herein provided, until all assets of the Trust are distributed in accordance with the
Regulations. The Trust and the benefit programs embodied in the
Regulations may be terminated only upon a two-thirds vote of the Board and of the then
participating Employers, in which event termination shall be effective on a date specified
after at least 6 months’ notice to the Trustee and all members of the Board and Employers.
In the event of such termination, (i) the rights of all Members to their Retirement
Allowances accrued to the date of termination shall thereupon be nonforfeitable to the
extent that such allowances have then been funded by such amount of assets determined by
the Pentegra DB Plan to be properly allocable to such Members’ allowances, and (ii) the
Board shall direct the Trustee to liquidate the assets of the Trust as promptly as it deems
prudent. The Board shall notify the IRS, the PBGC and any other appropriate governmental
authority of such termination at least 30 days prior to the termination date or at such
other date as applicable law may require, and no distribution of the Trust’s assets shall
be made until all applicable governmental approvals have been obtained by the Pentegra DB
Plan.
	 
	(B)	 	The Board shall determine the Trust’s net funds remaining after providing for necessary
expenses and shall then allocate such funds to the extent necessary and sufficient in the following
order of priority:

	 	(1)	 	Each Member, former Member, Retiree, and Beneficiary or Contingent
Annuitant shall be entitled to a share equal to his Accumulated Contributions (or
the Accumulated Contributions of the Member on whose behalf the individual is
entitled to benefits), if any, less the sum of any allowances received.
	 
	 	(2)	 	Next, each Retiree, Beneficiary or Contingent Annuitant entitled to an immediate or
deferred benefit on the termination date shall be entitled to a share equal to the actuarial
liability attributable to his benefits reduced by his share under Paragraph (1) of this Subsection
(B).

 

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	(C)	 	The Board shall then:

	 	(1)	 	Determine as of the termination date, in the same manner as described in Article XII,
Section 4, Subsection B, the actuarial liability established by the
Pentegra DB Plan for each Employer group of Members as described in Article XII
reduced by the amount of any allocations to such Members pursuant to Paragraph (1)
of Subsection (B);
	 
	 	(2)	 	Determine the net funds remaining after providing for all allocations under Subsection (B)
of this Article XIII;
	 
	 	(3)	 	Allocate such funds to all such groups of Members as of the termination date on the basis
of the ratio of the actuarial liability computed for each group of Members to the total liability
for such groups; and
	 
	 	(4)	 	Allocate such amounts to the individual Members in each group in accordance with the
procedure set forth in Article XII, Section 7.

	(D) 	(1)	 	The amounts determined in accordance with Subsections (B) and (C) of this Article XIII
shall, subject to the approval of the IRS, the PBGC and any other appropriate governmental
authority, be distributed to the individuals described in such Subsections. Any surplus remaining
in the Trust after such distribution shall then be distributed to the Employers in such manner as
the Board shall deem equitable and appropriate.
	 
	 	(2)	 	Notwithstanding anything in the Pentegra DB Plan’s Regulations to the contrary, before any
distribution to Employers, if any surplus remains in the Trust after satisfaction of all
liabilities, such remaining assets shall be equitably distributed to Members (or Beneficiaries) who
made contributions to the Pentegra DB Plan under Article IX, Section (5) in accordance with the
following formula:

	 	 	 	The portion of the remaining assets which are attributable to Member
contributions shall be equal to the product derived by multiplying (i) the
market value of the total remaining assets, by (ii) a fraction where the
numerator is the present value of all portions of the accrued benefits with
respect to Members that are derived from Member contributions and the
denominator is the present value of all benefits under the Pentegra DB Plan.

 

112

 

	 	 	 	Each person who is, as of the termination date, a Member under the Pentegra DB
Plan, or an individual who has received, during the 3-year period ending
with the termination date, a distribution from the Pentegra DB Plan of such
individual’s entire nonforfeitable benefit in the form of a single sum distribution
or in the form of irrevocable commitments purchased by the Pentegra DB Plan from an
insurer, shall be treated as a Member with respect to the termination, if all or
part of the nonforfeitable benefit with respect to such person is or was
attributable to Member mandatory contributions.
	 
	 	(3)	 	Upon completion of the foregoing distributions, the Trustee shall be relieved of all
further obligations under the Trust, but its powers shall continue so long as any assets
remain in the Trust.

	(E)	 	No asset or liability of the Trust shall in any event be merged, consolidated with or
transferred by the Trust to any other plan unless such person affected thereby would, if such plan
then terminated immediately after such event, receive thereunder a benefit which is equal to or
greater than the benefit to which he would have been entitled if the Pentegra DB Plan had
terminated immediately before such event.
	 
	(F)	 	Notwithstanding the provisions of this Article XIII, all allocations and distributions made
pursuant to this Article XIII shall be made in accordance with Title IV of ERISA.
	 
	(G)	 	In the event of the termination of the Pentegra DB Plan, the benefits of any Highly Compensated
Employee (and any highly compensated former employee, as defined in Section 414(q) of the IRC and
IRS Regulations thereunder), shall be limited to a benefit that is nondiscriminatory under Section
401(a)(4) of the IRC.
	 
	 	 	The annual payments to a Restricted Employee (as defined below) may not exceed an amount
equal to the payments that would be made on behalf of such Restricted Employee under a
single life annuity that is the actuarial equivalent of the sum of the Restricted
Employee’s accrued benefit and his other benefits under the Pentegra DB Plan. However, the
restriction described in the foregoing sentence shall not apply if:

	 	(1)	 	after payment to a Restricted Employee of all Benefits (as defined below), the value of
the assets of the Pentegra DB Plan equals or exceed 110% of the value of current liabilities (as
defined in Section 412(1)(7) of the IRC) under the Pentegra DB Plan; or

 

113

 

	 	(2)	 	the value of the Benefits for a Restricted Employee is less that 1% of the value of current
liabilities (as defined in Section 412(1)(7) of the IRC) under the Pentegra DB Plan; or
	 
	 	(3)	 	the value of the Benefits for a Restricted Employee does not exceed $1,000.

	 	 	For purposes of this Subsection (G), a “Restricted Employee” means a Member who is a Highly
Compensated Employee (or highly compensated former employee of the Employer as defined in Section
414(q) of the IRC and the IRS Regulations thereunder). In any year, the total number of
individuals who are subject to the restrictions described in Subsection (G) shall be limited to a
group of not less than 25 Highly Compensated Employees and highly compensated former employees
and the Employees included in the group shall be determined on the basis of such Employees with
the greatest compensation.
	 
	 	 	For purposes of this Subsection (G), the term “Benefits” includes loans in excess of amounts
set forth in Section 72(p)(2)(A) of the IRC, any periodic income, any withdrawal values
payable to a living Employee, and any death benefits not provided for by insurance on the
Restricted Employee’s life.

 

114

 

ARTICLE XIV ADMINISTRATION AND MANAGEMENT OF FUND

SECTION 1. ADMINISTRATION

	(A)	 	The general administration of the Pentegra DB Plan and the general responsibility for carrying
out the provisions of the Regulations shall be placed in a Board of Directors who must be Members
of the Pentegra DB Plan. The President of the Pentegra DB
Plan shall be the chief administrative officer of the Pentegra DB Plan, a member ex officio
of the Board and, for purposes of ERISA, the “plan administrator.” The Board shall
constitute the “named fiduciary” for purposes of ERISA.
	 
	(B)	 	The Board may adopt, and amend from time to time, by-laws not inconsistent with the Trust and
the Regulations and shall have such duties and exercise such powers as are provided in the
Regulations, Trust and by-laws. The number of Directors, their method of election and their terms
of office shall be governed by such by-laws. The Board shall hold an annual meeting each year and
may hold additional meetings from time to time.

	 
	(C)	 	The Board shall select the Trustee of the assets of the Pentegra DB Plan and shall define the
investment and other powers and duties of the Trustee and determine the terms and provisions of the
Trust, and may, subject to the provisions of the Trust, appoint from time to time a successor
trustee or trustees as the Board in its discretion shall determine. The Trust shall constitute a
trust fund for the payment of benefits and expenses of the Pentegra DB Plan. All contributions,
other income and property received by the Trust shall be held by the Trustee and invested,
reinvested and disbursed in accordance with and subject to the provisions of the Trust and the
Regulations. All benefits payable under the Regulations shall be payable from the
Trust and from no other source. No person shall have interest in, or right to, any part of
the corpus or income thereof, except to the extent expressly provided in the Regulations or
the Trust.

 

115

 

	(D)	 	The Board shall elect a chairman and a vice-chairman of the Board and such officers of the
Pentegra DB Plan as the Board deems desirable and shall define their duties. The
Board shall elect annually from its membership an Executive Committee, a Retirement
Committee, an Investment Committee, an Audit Committee, and a Nominating Committee and
shall define their duties. It may appoint such other committees and arrange for and hire
such actuarial, legal, accounting, auditing, investment manager or
advisory, administrative, medical and other services as it deems appropriate to carry out
the Regulations and may act in reliance upon the advice and actions of the persons or firms
providing such services. The Board may establish, staff, equip and maintain a Pentegra DB
Plan Office to assist it in the administration of the Regulations. The Board may authorize
the Trustee or any committee, officer, employee or agent of the Pentegra DB Plan to perform
any act pertaining to the Pentegra DB Plan or the administration thereof. The Board shall
cause to be maintained proper accounts and accounting procedures, and shall submit an
Annual Report on the operations of the Pentegra DB Plan to each Employer for the
information of its Members.
	 
	(E)	 	The members of the Board shall use ordinary care and reasonable diligence in the performance of
their duties and shall serve without compensation, but shall be reimbursed for any reasonable
expenses incurred in their capacities as Board members. No bond or other security need be required
of the Trustee or any Board member in any jurisdiction.

	 
	(F)	 	Each Employer, other than the Pentegra DB Plan Office, by its participation in the
Comprehensive Retirement Program, agrees that each Board member, officer and employee of the
Pentegra DB Plan shall be indemnified by the Employer for any liability, in excess of that which is
covered by insurance, arising out of any act or omission to act in connection with the Regulations
or the Trust except for fraud or willful misconduct. The obligation to pay any such expense shall
be deemed an administrative expense of the Regulations and shall be allocated among the Employers,
other than the Pentegra DB Plan Office, by the Board as nearly as practicable in the same
proportions as the then current administrative expenses of the Pentegra DB Plan are borne by the
Employers. No Board member or officer of the
Pentegra DB Plan shall be personally liable by virtue of any contract or other instrument
executed by him or on his behalf in such capacity nor for any mistake of judgment made in
good faith.
	 
	(G)	 	No Employer shall under any circumstances or for any purpose be deemed an agent of the Board,
the Trustee or the Pentegra DB Plan. Neither the Board nor the Trustee shall be required to enforce
payment of any contributions payable under the Regulations.

 

116

 

	(H)	 	The Board shall adopt, and may change from time to time, actuarial or other tables and the
interest rate or rates which shall be used in calculations under the Regulations, and
shall establish the contribution rates as provided in Article IX. The actuary designated by
the Board shall make an annual actuarial valuation of the Pentegra DB Plan’s benefit
programs, and on the basis thereof shall recommend to the Board such tables and interest
and contribution rates for its adoption.
	 
	(I)	 	The expenses of administering the Regulations including (i) the fees and expenses of the
Trustee for performance of its duties under the Trust, (ii) the expenses incurred by the Board and
the Pentegra DB Plan Office in the performance of their duties under the Regulations and the Trust,
and (iii) all other proper charges and disbursements of the Trustee and the Pentegra DB Plan
Office, shall be borne by the Employers in such proportions as shall be determined by the Board,
but until paid by the Employers, all of such expenses shall be a charge against the assets of the
Trust.

SECTION 2. DISPUTE RESOLUTION

	(A)	 	The Board shall have the exclusive right and full discretionary authority to interpret the
Regulations and any questions arising under or in connection with the administration of the
Pentegra DB Plan, including without limitation, the authority to determine eligibility for employer
participation, eligibility for membership and benefits, and the amount and mode of all
contributions, benefits and other payments under the Regulations. The decisions or actions of the
Board in respect thereof shall be final, conclusive and binding upon all persons having an interest
in the Trust or under the Regulations or under any agreement with an insurance company or a
financial institution constituting a part of the Regulations and the Trust.
	 
	(B)	 	The Board shall have full discretionary authority to delegate to the Retirement Committee, or
any other committee of the Board or to the President, all or any part of the interpretative and
decisional authority of the Board, described in Subsection (A) of this Section 2, with respect to
the Regulations or the administration of the Pentegra DB Plan.

 

117

 

	(C)	 	All disputed claims with respect to contributions, benefit eligibility and payments arising
under the Regulations shall be submitted in writing to the President of the Pentegra DB
Plan at the office of the Pentegra DB Plan. Within 90 days after receipt of such claim, the
decision of the President with respect thereto shall be mailed to the claimant and shall be
final, binding and conclusive; provided, however, if special circumstances require an
extension of time for processing the claim, an additional 90 days from the end of the initial period shall be allowed for processing the claim, in which event the
claimant shall be furnished with a written notice of the extension prior to the termination
of the initial 90-day period indicating the special circumstances requiring an extension.
The claimant may appeal such decision in writing to the Retirement Committee of the Board,
at the office of the Pentegra DB Plan, within 60 days after the mailing to the claimant of
such written decision of the President. Such written appeal shall contain all information
which the claimant desires the Retirement Committee to consider and the Committee’s
decision with respect thereto shall be mailed to the claimant within 60 days after its
receipt of such appeal unless special circumstances require an extension of time for
processing, in which event an additional 60 days shall be allowed for review and claimant
shall be so notified in writing. The decision of the President, or in the case of an
appeal, the decision of the Retirement Committee, in respect of such claim shall be final,
binding and conclusive.

SECTION 3. MANAGEMENT

	(A)	 	The Board shall also have the power, acting directly or through the Trustee:

	 	(1)	 	To purchase, lease for any term, invest or otherwise acquire an interest in any property,
real, personal or mixed, and wherever situated, including, but not by way of limitation, real
property, whether improved or unimproved, common and preferred stocks, bonds, notes, debentures,
mortgages, mutual fund shares, futures, forwards, swaps and options contracts, and certificates of
deposit issued by any financial institution including an Employer, without being limited to the
class of securities in which trustees are authorized by law or any rules of court to invest trust
funds and without regard to the proportion any such property may bear to the entire amount of the
Pentegra DB Plan Trust;
	 
	 	(2)	 	To sell, exchange, manage, lend, lease for any term, improve, or otherwise dispose of, and
grant options and security interests with respect to any such property of the Pentegra DB Plan, and
any sale or other disposition may be public or private and upon such terms and conditions as the
Board may deem best;

 

118

 

	 	(3)	 	To participate in any plan of reorganization, consolidation, merger, combination or other
similar plan relating to such property, and to consent to or oppose any
such plan and any action thereunder, or any contract, lease, mortgage, purchase,
sale or other action by any legal entity;
	 
	 	(4)	 	To deposit any such property with any protective, reorganization or similar committee, to
delegate discretionary power thereto and to pay part of its expenses and compensation and any
assessments levied with respect to any such property so deposited;
	 
	 	(5)	 	To engage suitable employees, agents and professional consultants, and to pay their
reasonable compensation and expenses;
	 
	 	(6)	 	To extend the time of payment of any obligations;
	 
	 	(7)	 	To enter into stand-by agreements for future investment of the Pentegra DB Plan Trust,
either with or without a stand-by fee;
	 
	 	(8)	 	To exercise all conversion and subscription rights and all voting rights with respect to
such property and to grant proxies, discretionary or otherwise;
	 
	 	(9)	 	To cause any investments to be registered and held in the name of one or more nominees of
the Board or any custodian of such property, with or without the addition of words indicating that
such investments are held in a fiduciary capacity, and to cause any such investments to be held in
bearer form;
	 
	 	(10)	 	To collect and receive any and all money and other property due to the Pentegra DB
Plan and to give full discharge and acquittance therefor;
	 
	 	(11)	 	To settle, compromise or submit to arbitration any claims, debts or damages due or owing
to or from the Pentegra DB Plan; to commence or defend suits or legal proceedings whenever, in its
judgment, any interest of the Pentegra DB
Plan requires it; to represent the Pentegra DB Plan in all suits or legal
proceedings in any court of law or equity or before any other body or tribunal; to
abstain from the enforcement of any right or claim in its absolute discretion and
to abandon, if it shall deem it advisable, any property held by the Pentegra DB
Plan;

 

119

 

	 	(12)	 	To hold uninvested, without liability for interest thereon, any money received by the
Pentegra DB Plan until the same shall be invested or disbursed;
	 
	 	(13)	 	For purposes of the Pentegra DB Plan, to borrow money from others, to issue promissory
notes of the Pentegra DB Plan for the same and to secure the repayment thereof by pledging any
property of the Pentegra DB Plan and to enter into cash collateral agreements referred to in
Article IX, Section 6;
	 
	 	(14)	 	To make any agency, trust, custodial, advisory, depository, management, administrative
or other arrangement (i) with any bank or other financial institution for the deposit and
safekeeping of the assets of the Pentegra DB
Plan, and (ii) with any investment advisor or manager for the investment and
reinvestment of the assets of the Pentegra DB Plan;
	 
	 	(15)	 	To transfer for investment purposes any part of the assets of the Pentegra DB Plan (i) to
any group trust which meets the requirements of Sections 401(a) and 501(a) of the IRC, with the
equitable share of the Pentegra DB Plan in the commingled assets of such trust being part of the
Pentegra DB Plan under the Regulations, and (ii) to any group deposit administration annuity
contract or other type of contract issued to the Pentegra DB Plan by one or more insurance
companies, utilizing under any such contract, general, commingled, or separate investment
accounts as the Investment Committee in its discretion shall determine, all such contracts being
part of the Pentegra DB Plan under the Regulations;
	 
	 	(16)	 	To charge against and pay out of the Pentegra DB Plan (in accordance with ERISA and the
IRC) (i) taxes of any and all kinds whatsoever which are levied or assessed upon or become
payable in respect of the Pentegra DB Plan, the income from any property forming a part
thereof, or any security transaction pertaining thereto, and (ii) the expenses incurred by the
Board in the performance of its duties in respect of the Pentegra DB Plan and all other proper
charges and disbursements of the Pentegra DB Plan;
	 
	 	(17)	 	To delegate powers, including, without limitation, discretionary powers with respect to any
of the foregoing to any Committee of the Board or any officer or employee of the Pentegra DB
Plan or investment advisor or manager, custodian or other agent;

 

120

 

	 	(18)	 	To appoint any bank or trust company, wherever domiciled, as successor trustee under the
Declaration of Trust, upon such terms and conditions as the Board deems advisable; and
	 
	 	(19)	 	Generally to do all acts, whether or not expressly authorized, which the Board may deem
necessary or desirable for the administration, management and protection of the Pentegra DB Plan.

	(B)	 	Persons dealing with the Board or the Trustee shall be under no obligation to see to the proper
application of any money paid or property delivered to the Pentegra DB Plan.

SECTION 4. INFORMATION AND COMMUNICATIONS

	(A)	 	Each Employer, Member, Retirement and Beneficiary shall file with the Pentegra DB Plan such
pertinent information as the Pentegra DB Plan may require, and no Employer, Member, Retiree,
Beneficiary or Contingent Annuitant shall have any rights or be entitled to any benefits from the
Pentegra DB Plan unless such information is filed in the manner and form specified by the Pentegra
DB Plan. The Pentegra DB
Plan shall be fully protected in acting upon any such information and shall be under no
duty to inquire into the accuracy or truth thereof, and the payment of any amount by the
Pentegra DB Plan pursuant to such information shall constitute a complete discharge of the
liability therefor. All notices, instructions and other communications shall be in writing
and in such form as is prescribed from time to time by the Pentegra DB Plan, shall be
mailed by first class mail or delivered personally, and shall be deemed to have been duly
given and delivered only upon actual receipt thereof by the Pentegra DB Plan.

	(B)	(1)	 	In the case of a qualified joint and survivor annuity as described in Article VII, Section
1, the Pentegra DB Plan shall provide each Member no less than 30 days and no more than 90 days
prior to the annuity starting date a written explanation of: (i) the terms and conditions of a
qualified joint and survivor annuity; (ii) the Member’s right to make and the effect of an election
to waive the qualified joint and survivor annuity form of benefit; (iii) the rights of a Member’s
Spouse; (iv) the right to make, and the effect of, a revocation of a previous election to waive the
qualified joint and survivor annuity; and (v) the
relative values of the various optional forms of benefit under the Pentegra DB
Plan.

 

121

 

	 	(2)	 	In the case of a preretirement survivor annuity as described in Article IV, Section
3(B), the Pentegra DB Plan shall provide each Member within the applicable period for
such Member, a written explanation of the preretirement survivor annuity in such terms
and in such a manner as would be comparable to the explanation provided for meeting the
requirements of Paragraph (1) of this Subsection (B) applicable to a qualified joint and
survivor annuity.
	 
	 	(3)	 	The applicable period for a Member is whichever of the following periods ends last:
(i) the period beginning with the first day of the Plan Year in which the Member attains
age 32 and ending with the close of the Plan Year preceding the Plan Year in which the
Member attains age 35; (ii) a reasonable period ending after the individual becomes a
Member; or (iii) a reasonable period ending after the preretirement survivor annuity first
applies to the Member. Notwithstanding the foregoing, notice must be provided within a
reasonable period ending after separation of service in the case of a Member who separates
from service before attaining age 35.
	 
	 	(4)	 	For purposes of the preceding paragraph, a reasonable period ending after the
enumerated events described in (ii), (iii) and (iv) is the end of the two year period
beginning one year prior to the date the applicable event occurs and ending one year
after that date. In the case of a
Member who separates from service before the plan year in which age 35 is
attained, notice shall be provided within the two year period beginning one year
prior to separation and ending one year after separation. If such a Member
thereafter returns to employment with the employer, the applicable period for
such Member shall be redetermined.

 

122

 

	(C)	 	A Member may, in accordance with this Subsection (C) elect to receive his
Retirement Allowance in one of the optional forms described in Article VI. Any waiver of
a qualified joint and survivor annuity or a preretirement survivor annuity shall not be
effective unless: (a) the Member’s Spouse consents in writing to the election; (b) the
election designates a specific alternate Beneficiary, including any class of
    beneficiaries or any contingent beneficiaries. which may not be changed without spousal consent
(or the Spouse expressly permits designations by the Member without any further spousal
consent); (c) the Member’s Spouse’s consent acknowledges the effect of the election; and (d)
the Spouse’s consent is witnessed by a notary public. Additionally, a Member’s waiver of the
qualified joint and survivor annuity will not be effective unless the election designates a
form of benefit payment which may not be changed without spousal consent (or the Spouse
expressly permits designations by the Member without any further spousal consent.) If it is
established to the satisfaction of the Pentegra DB Plan that such written consent may not be
obtained because there is no Spouse or the Spouse cannot be located, a waiver will be deemed a
qualified election.
	 
	 	 	Any consent by a Spouse obtained under this provision (or establishment that the consent of a
Spouse may not be obtained) shall be effective only with respect to such Spouse. A consent that
permits designations by the Member without any requirement of further consent by such Spouse
must acknowledge that the Spouse has the right to limit consent to a specific Beneficiary, and
a specific form of benefit where applicable, and that the Spouse voluntarily elects to
relinquish either or both of such rights. A revocation of a prior waiver may be made by a
Member without the consent of the Spouse at any time prior to the commencement of benefits. The
number of revocations shall not be limited. No consent obtained under this provision shall be
valid unless the Member has received notice as provided in Subsection (B) of this Article XIV,
Section 4.
	 
	 	 	Notwithstanding anything in the Regulations to the contrary, effective for distributions made
on or after December 31, 1996, the 90-day period in which a Member may, with the written
consent of his Spouse, elect in writing to receive his benefit in a single lump sum shall not
end before the 30th day after the date on which explanations of the qualified joint
and survivor annuity and preretirement survivor annuity are provided. A Member may elect (with
any applicable spousal consent) to waive any requirement that the written explanation be
provided at least 30 days before the annuity starting date (or to waive the 30-day requirement
under the preceding sentence) if the distribution commences more than seven days after such
explanation is provided.

 

123

 

ARTICLE XV AMENDMENTS

The Board reserves and shall have the right to amend the Regulations or the Trust at any time in
whole or in part, for any reason, and without the consent of any Employer, or any Member or other
person having an interest in the Trust, or under the Regulations, and each Employer by its adoption
of the Regulations shall be deemed to have delegated this authority to the Board; but no amendment
shall be adopted which would:

	(i)	 	Raise the contribution rate of any Member since last becoming a Member unless he shall consent
thereto; or
	 
	(ii)	 	Reduce the then accrued benefits of Members or Retirees, except to the extent necessary to
maintain the Trust as a trust qualified under Section 401(a) of the IRC; or
	 
	(iii)	 	Permit any of the assets of the Trust (other than that required to pay taxes, if any, and the
expenses described in Article XIV, Section 1(I) to the extent, if any, not paid by the Employers)
to be used for or diverted to any purpose other than for the exclusive benefit of Members,
Retirees, and their Beneficiaries and Contingent Annuitants under the Regulations, prior to the
satisfaction of all liabilities with respect thereto.

 

124

 

ARTICLE XVI INTERPRETATION

The Regulations shall be construed in accordance with ERISA and the laws of the State of New York
(without regard to the principles of the conflicts of laws thereof).

 

125

 

Table X

ALLOCATION OF ORPHAN ADJUSTMENT

	 	 	 	 	 	 	 	 	 
	Employer	 	Commencement	 	 	Percentage	 
	Number	 	Date	 	 	Points	 
	 
	 	 	 	 	 	 	 	 
	1000
	 	 	12/1/1943	 	 	 	1.23	%
	1001
	 	 	4/1/1944	 	 	 	1.78	%
	1004
	 	 	1/1/1945	 	 	 	0.25	%
	1006
	 	 	1/1/1945	 	 	 	0.17	%
	1007
	 	 	1/1/1945	 	 	 	0.49	%
	1020
	 	 	12/1/1951	 	 	 	0.11	%
	1023
	 	 	7/1/1956	 	 	 	0.27	%
	1024
	 	 	7/1/1964	 	 	 	0.10	%
	1025
	 	 	7/1/1964	 	 	 	0.10	%
	1026
	 	 	6/1/1966	 	 	 	0.10	%
	1027
	 	 	5/1/1966	 	 	 	0.19	%
	1030
	 	 	7/1/1967	 	 	 	0.05	%
	1032
	 	 	10/1/1967	 	 	 	0.31	%
	1034
	 	 	3/1/1969	 	 	 	0.19	%
	1037
	 	 	6/1/1970	 	 	 	0.10	%
	1046
	 	 	7/1/1974	 	 	 	0.09	%
	1055
	 	 	10/1/1980	 	 	 	0.68	%
	1059
	 	 	6/1/1984	 	 	 	0.36	%
	1063
	 	 	7/1/1987	 	 	 	0.24	%
	1064
	 	 	6/1/1988	 	 	 	0.35	%
	1067
	 	 	9/1/1989	 	 	 	0.24	%
	1069
	 	 	7/1/1990	 	 	 	0.15	%
	1070
	 	 	11/1/1991	 	 	 	0.10	%
	1072
	 	 	1/1/1992	 	 	 	0.06	%
	1073
	 	 	5/1/1992	 	 	 	0.24	%
	1074
	 	 	1/1/1994	 	 	 	1.17	%
	1077
	 	 	7/1/1994	 	 	 	0.13	%
	1079
	 	 	1/1/1996	 	 	 	0.61	%
	1080
	 	 	1/1/1997	 	 	 	1.88	%
	1082
	 	 	1/1/1998	 	 	 	0.31	%
	1083
	 	 	1/1/1999	 	 	 	0.20	%
	1084
	 	 	9/1/2000	 	 	 	0.01	%
	1085
	 	 	1/1/2001	 	 	 	0.20	%
	1086
	 	 	7/1/2003	 	 	 	0.05	%
	2000
	 	 	12/1/1943	 	 	 	4.02	%
	2003
	 	 	1/1/1946	 	 	 	0.75	%
	2006
	 	 	3/1/1952	 	 	 	1.06	%

 

 

 

ALLOCATION OF ORPHAN ADJUSTMENT

	 	 	 	 	 	 	 	 	 
	Employer	 	Commencement	 	 	Percentage	 
	Number	 	Date	 	 	Points	 
	 
	 	 	 	 	 	 	 	 
	2009
	 	 	1/1/1959	 	 	 	0.17	%
	2012
	 	 	1/1/1949	 	 	 	0.60	%
	2018
	 	 	5/1/1992	 	 	 	0.33	%
	2019
	 	 	1/1/1992	 	 	 	0.46	%
	2021
	 	 	10/1/1995	 	 	 	0.22	%
	2022
	 	 	7/1/1995	 	 	 	0.33	%
	2023
	 	 	1/1/1996	 	 	 	0.05	%
	2025
	 	 	4/1/1997	 	 	 	0.19	%
	2026
	 	 	7/1/1997	 	 	 	0.14	%
	2027
	 	 	7/1/1997	 	 	 	0.06	%
	2029
	 	 	10/1/1997	 	 	 	0.14	%
	2030
	 	 	1/1/1999	 	 	 	1.61	%
	2032
	 	 	7/1/2000	 	 	 	0.15	%
	2033
	 	 	1/1/2002	 	 	 	0.01	%
	2037
	 	 	1/1/2004	 	 	 	0.05	%
	3000
	 	 	12/1/1943	 	 	 	1.46	%
	3011
	 	 	1/1/1948	 	 	 	0.09	%
	3012
	 	 	1/1/1948	 	 	 	0.88	%
	3014
	 	 	1/1/1950	 	 	 	0.04	%
	3019
	 	 	7/1/1953	 	 	 	0.68	%
	3023
	 	 	7/1/1957	 	 	 	0.32	%
	3024
	 	 	1/1/1958	 	 	 	0.35	%
	3031
	 	 	1/1/1967	 	 	 	0.07	%
	3032
	 	 	2/1/1967	 	 	 	0.32	%
	3036
	 	 	3/1/1969	 	 	 	0.09	%
	3052
	 	 	5/1/1976	 	 	 	0.04	%
	3054
	 	 	10/1/1976	 	 	 	0.63	%
	3063
	 	 	12/1/1990	 	 	 	0.05	%
	3067
	 	 	3/1/1996	 	 	 	0.14	%
	3068
	 	 	1/1/1998	 	 	 	0.12	%
	3069
	 	 	10/1/1997	 	 	 	0.09	%
	3072
	 	 	1/1/1999	 	 	 	0.35	%
	3073
	 	 	7/1/1999	 	 	 	0.03	%
	3074
	 	 	1/1/2000	 	 	 	0.10	%
	4000
	 	 	8/1/1946	 	 	 	3.91	%
	4007
	 	 	2/1/1952	 	 	 	0.07	%
	4018
	 	 	5/1/1961	 	 	 	1.35	%

 

 

 

ALLOCATION OF ORPHAN ADJUSTMENT

	 	 	 	 	 	 	 	 	 
	Employer	 	Commencement	 	 	Percentage	 
	Number	 	Date	 	 	Points	 
	 
	 	 	 	 	 	 	 	 
	4026
	 	 	12/1/1966	 	 	 	0.10	%
	4033
	 	 	5/1/1970	 	 	 	0.10	%
	4036
	 	 	1/1/1971	 	 	 	0.25	%
	4053
	 	 	7/1/1974	 	 	 	0.02	%
	4066
	 	 	9/1/1980	 	 	 	0.04	%
	4079
	 	 	9/1/1995	 	 	 	0.05	%
	4082
	 	 	1/1/1996	 	 	 	0.40	%
	4084
	 	 	7/1/1998	 	 	 	0.01	%
	4085
	 	 	2/1/2000	 	 	 	0.02	%
	4087
	 	 	1/1/2000	 	 	 	0.12	%
	4088
	 	 	1/1/2004	 	 	 	0.02	%
	4089
	 	 	1/1/2005	 	 	 	0.02	%
	5000
	 	 	12/1/1943	 	 	 	2.08	%
	5001
	 	 	1/1/1945	 	 	 	0.66	%
	5002
	 	 	2/1/1945	 	 	 	0.04	%
	5010
	 	 	1/1/1947	 	 	 	0.08	%
	5021
	 	 	6/1/1952	 	 	 	0.09	%
	5026
	 	 	9/1/1953	 	 	 	0.40	%
	5031
	 	 	2/1/1957	 	 	 	0.14	%
	5034
	 	 	1/1/1958	 	 	 	0.16	%
	5042
	 	 	5/1/1967	 	 	 	0.06	%
	5044
	 	 	7/1/1967	 	 	 	0.07	%
	5045
	 	 	9/1/1967	 	 	 	0.06	%
	5047
	 	 	8/1/1968	 	 	 	0.28	%
	5049
	 	 	1/1/1969	 	 	 	0.37	%
	5050
	 	 	2/1/1969	 	 	 	0.15	%
	5051
	 	 	2/1/1969	 	 	 	0.21	%
	5065
	 	 	1/1/1973	 	 	 	0.11	%
	5072
	 	 	7/1/1974	 	 	 	0.29	%
	5079
	 	 	5/1/1975	 	 	 	0.02	%
	5080
	 	 	7/1/1975	 	 	 	0.11	%
	5083
	 	 	11/1/1975	 	 	 	0.41	%
	5089
	 	 	1/1/1976	 	 	 	0.05	%
	5091
	 	 	1/1/1977	 	 	 	0.18	%
	5092
	 	 	1/1/1977	 	 	 	0.07	%
	5093
	 	 	12/1/1976	 	 	 	0.07	%
	5111
	 	 	1/1/1985	 	 	 	0.05	%

 

 

 

ALLOCATION OF ORPHAN ADJUSTMENT

	 	 	 	 	 	 	 	 	 
	Employer	 	Commencement	 	 	Percentage	 
	Number	 	Date	 	 	Points	 
	 
	 	 	 	 	 	 	 	 
	5118
	 	 	1/1/1993	 	 	 	0.11	%
	5121
	 	 	7/1/1994	 	 	 	0.12	%
	5123
	 	 	1/1/1995	 	 	 	0.16	%
	5125
	 	 	1/1/2003	 	 	 	0.06	%
	5126
	 	 	1/1/2003	 	 	 	0.28	%
	5127
	 	 	1/1/2004	 	 	 	0.03	%
	6000
	 	 	12/1/1943	 	 	 	1.92	%
	6016
	 	 	1/1/1951	 	 	 	0.16	%
	6026
	 	 	5/1/1956	 	 	 	0.90	%
	6028
	 	 	9/1/1957	 	 	 	0.16	%
	6033
	 	 	10/1/1961	 	 	 	0.08	%
	6037
	 	 	5/1/1963	 	 	 	0.47	%
	6040
	 	 	1/1/1965	 	 	 	0.14	%
	6041
	 	 	1/1/1965	 	 	 	0.28	%
	6042
	 	 	5/1/1965	 	 	 	0.09	%
	6043
	 	 	3/1/1966	 	 	 	0.79	%
	6044
	 	 	1/1/1967	 	 	 	0.04	%
	6049
	 	 	8/1/1968	 	 	 	0.19	%
	6050
	 	 	7/1/1969	 	 	 	0.37	%
	6062
	 	 	10/1/1970	 	 	 	0.09	%
	6070
	 	 	12/1/1971	 	 	 	0.08	%
	6071
	 	 	12/1/1961	 	 	 	0.09	%
	6075
	 	 	11/1/1972	 	 	 	0.26	%
	6077
	 	 	1/1/1973	 	 	 	0.53	%
	6079
	 	 	1/1/1973	 	 	 	0.08	%
	6086
	 	 	9/1/1974	 	 	 	0.03	%
	6087
	 	 	7/1/1974	 	 	 	0.79	%
	6092
	 	 	8/1/1974	 	 	 	0.09	%
	6093
	 	 	5/1/1975	 	 	 	0.10	%
	6099
	 	 	1/1/1978	 	 	 	0.13	%
	6107
	 	 	1/1/1981	 	 	 	0.13	%
	6110
	 	 	7/1/1983	 	 	 	1.32	%
	6113
	 	 	12/1/1984	 	 	 	0.05	%
	6115
	 	 	12/1/1984	 	 	 	0.05	%
	6116
	 	 	1/1/1985	 	 	 	0.09	%
	6120
	 	 	1/1/1987	 	 	 	0.10	%
	6121
	 	 	1/1/1987	 	 	 	0.07	%

 

 

 

ALLOCATION OF ORPHAN ADJUSTMENT

	 	 	 	 	 	 	 	 	 
	Employer	 	Commencement	 	 	Percentage	 
	Number	 	Date	 	 	Points	 
	 
	 	 	 	 	 	 	 	 
	6123
	 	 	1/1/1987	 	 	 	0.08	%
	6124
	 	 	11/1/1987	 	 	 	0.18	%
	6125
	 	 	7/1/1988	 	 	 	0.42	%
	6126
	 	 	3/1/1988	 	 	 	0.16	%
	6128
	 	 	7/1/1990	 	 	 	0.83	%
	6129
	 	 	7/1/1991	 	 	 	0.10	%
	6130
	 	 	1/1/1992	 	 	 	0.16	%
	6132
	 	 	1/1/1994	 	 	 	0.04	%
	6135
	 	 	1/1/1996	 	 	 	0.11	%
	6136
	 	 	7/1/1998	 	 	 	0.15	%
	6138
	 	 	1/1/2002	 	 	 	0.08	%
	6139
	 	 	1/1/2003	 	 	 	0.07	%
	6140
	 	 	1/1/2003	 	 	 	0.04	%
	6141
	 	 	7/1/2003	 	 	 	0.06	%
	6142
	 	 	1/1/2004	 	 	 	0.02	%
	6143
	 	 	7/1/2004	 	 	 	0.02	%
	7000
	 	 	12/1/1943	 	 	 	1.81	%
	7011
	 	 	9/1/1948	 	 	 	1.05	%
	7015
	 	 	12/1/1949	 	 	 	0.16	%
	7018
	 	 	1/1/1950	 	 	 	0.59	%
	7027
	 	 	4/1/1952	 	 	 	0.42	%
	7031
	 	 	3/1/1953	 	 	 	0.57	%
	7036
	 	 	1/1/1954	 	 	 	0.32	%
	7048
	 	 	1/1/1960	 	 	 	0.24	%
	7053
	 	 	9/1/1962	 	 	 	0.47	%
	7056
	 	 	5/1/1963	 	 	 	0.19	%
	7060
	 	 	6/1/1966	 	 	 	0.06	%
	7064
	 	 	1/1/1968	 	 	 	0.30	%
	7065
	 	 	2/1/1968	 	 	 	0.07	%
	7069
	 	 	6/1/1969	 	 	 	0.14	%
	7086
	 	 	12/1/1973	 	 	 	0.24	%
	7088
	 	 	12/1/1973	 	 	 	0.06	%
	7089
	 	 	2/1/1974	 	 	 	0.02	%
	7099
	 	 	1/1/1978	 	 	 	0.10	%
	7100
	 	 	1/1/1978	 	 	 	0.10	%
	7101
	 	 	7/1/1978	 	 	 	0.12	%
	7109
	 	 	2/1/1980	 	 	 	0.07	%

 

 

 

ALLOCATION OF ORPHAN ADJUSTMENT

	 	 	 	 	 	 	 	 	 
	Employer	 	Commencement	 	 	Percentage	 
	Number	 	Date	 	 	Points	 
	 
	 	 	 	 	 	 	 	 
	7113
	 	 	10/1/1986	 	 	 	0.08	%
	7114
	 	 	12/1/1988	 	 	 	0.07	%
	7115
	 	 	7/1/1990	 	 	 	0.08	%
	7117
	 	 	12/1/1992	 	 	 	0.22	%
	7118
	 	 	7/1/1999	 	 	 	0.24	%
	7119
	 	 	7/1/2004	 	 	 	0.00	%
	7120
	 	 	4/1/2005	 	 	 	0.01	%
	8000
	 	 	1/1/1948	 	 	 	1.71	%
	8001
	 	 	10/1/1948	 	 	 	1.00	%
	8006
	 	 	4/1/1950	 	 	 	0.30	%
	8026
	 	 	2/1/1961	 	 	 	0.36	%
	8029
	 	 	1/1/1962	 	 	 	0.08	%
	8031
	 	 	4/1/1962	 	 	 	0.82	%
	8051
	 	 	1/1/1969	 	 	 	0.62	%
	8054
	 	 	3/1/1969	 	 	 	0.18	%
	8066
	 	 	1/1/1972	 	 	 	0.10	%
	8085
	 	 	7/1/1974	 	 	 	0.06	%
	8087
	 	 	9/1/1975	 	 	 	0.09	%
	8103
	 	 	5/1/1993	 	 	 	0.07	%
	8104
	 	 	7/1/2000	 	 	 	0.02	%
	8105
	 	 	1/1/2003	 	 	 	0.19	%
	8106
	 	 	1/1/2004	 	 	 	0.01	%
	9000
	 	 	12/1/1943	 	 	 	2.31	%
	9006
	 	 	6/1/1959	 	 	 	0.42	%
	9007
	 	 	7/1/1959	 	 	 	0.10	%
	9017
	 	 	1/1/1968	 	 	 	0.11	%
	9026
	 	 	4/1/1971	 	 	 	0.49	%
	9037
	 	 	3/1/1973	 	 	 	0.08	%
	9045
	 	 	9/1/1975	 	 	 	0.05	%
	9057
	 	 	1/1/1978	 	 	 	0.23	%
	9062
	 	 	1/1/1978	 	 	 	0.07	%
	9071
	 	 	1/1/1986	 	 	 	0.12	%
	9072
	 	 	7/1/1989	 	 	 	0.02	%
	9073
	 	 	4/1/1993	 	 	 	0.31	%
	9074
	 	 	6/1/1994	 	 	 	0.20	%
	9076
	 	 	6/1/2001	 	 	 	0.07	%
	9077
	 	 	6/1/2001	 	 	 	0.02	%

 

 

 

ALLOCATION OF ORPHAN ADJUSTMENT

	 	 	 	 	 	 	 	 	 
	Employer	 	Commencement	 	 	Percentage	 
	Number	 	Date	 	 	Points	 
	 
	 	 	 	 	 	 	 	 
	9078
	 	 	1/1/2003	 	 	 	0.17	%
	10000
	 	 	12/1/1943	 	 	 	1.60	%
	10008
	 	 	1/1/1955	 	 	 	0.36	%
	10019
	 	 	7/1/1969	 	 	 	0.06	%
	10022
	 	 	3/1/1970	 	 	 	0.11	%
	10026
	 	 	1/1/1971	 	 	 	0.15	%
	10031
	 	 	1/1/1974	 	 	 	0.24	%
	10035
	 	 	1/1/1976	 	 	 	0.22	%
	10038
	 	 	1/1/1978	 	 	 	0.12	%
	10046
	 	 	1/1/1995	 	 	 	0.02	%
	10047
	 	 	7/1/1999	 	 	 	0.10	%
	10048
	 	 	12/1/2000	 	 	 	0.01	%
	10049
	 	 	1/1/2003	 	 	 	0.03	%
	12000
	 	 	4/1/1964	 	 	 	1.72	%
	12004
	 	 	4/1/1945	 	 	 	0.58	%
	12023
	 	 	1/1/1967	 	 	 	0.08	%
	12026
	 	 	1/1/1969	 	 	 	1.38	%
	12028
	 	 	1/1/1969	 	 	 	0.31	%
	12033
	 	 	2/1/1973	 	 	 	0.07	%
	12042
	 	 	6/1/1999	 	 	 	0.04	%
	13000
	 	 	1/1/1991	 	 	 	18.59	%
	13001
	 	 	12/1/1943	 	 	 	0.80	%
	13002
	 	 	12/1/1943	 	 	 	0.88	%
	 
	 	 	 	 	 	 	 	 
	Totals
	 	 	 	 	 	 	100.00	%

 

 

 

Table XX

HISTORY OF THE

RATIO OF MARKET TO ACTUARIAL VALUE OF ASSETS

(EXCLUDING THE CASH FLOW MATCH PORTFOLIO)

	 	 	 	 	 	 	 	 	 
	FOR THE PERIOD:	 	RATIO	 	 	ADJUSTMENT	 
	 
	 	 	 	 	 	 	 	 
	Prior to 7/1/1989
	 	 	100	%	 	 	0	%
	7/1/1989 - 6/30/1990
	 	 	109	%	 	 	9	%
	7/1/1990 - 6/30/1991
	 	 	107	%	 	 	7	%
	7/1/1991 - 6/30/1992
	 	 	107	%	 	 	7	%
	7/1/1992 - 6/30/1993
	 	 	111	%	 	 	11	%
	7/1/1993 - 6/30/1994
	 	 	114	%	 	 	14	%
	7/1/1994 - 6/30/1995
	 	 	107	%	 	 	7	%
	7/1/1995 - 6/30/1996
	 	 	112	%	 	 	12	%
	7/1/1996 - 6/30/1997
	 	 	114	%	 	 	14	%
	7/1/1997 - 6/30/1998
	 	 	121	%	 	 	21	%
	7/1/1998 - 6/30/1999
	 	 	132	%	 	 	32	%
	7/1/1999 - 6/30/2000
	 	 	120	%	 	 	20	%
	7/1/2000 - 6/30/2001
	 	 	120	%	 	 	20	%
	On or after 7/1/2001
	 	 	100	%	 	 	0	%

 

 

 

Table I

APPENDIX A

Adjusted
ERF’s For Integrated Calculations

1.5% Integrated Formula

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	— — — 3% ERF’s — — —	 	 	 — — — 1.5% ERF’s — — — 	 	 	 	 
	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	 	 
	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	 	 
	AGE	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	AGE	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	65	 
	64
	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	64	 
	63
	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	63	 
	62
	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.965	 	 	 	62	 
	61
	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.953	 	 	 	0.962	 	 	 	61	 
	60
	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.925	 	 	 	0.925	 	 	 	0.926	 	 	 	0.935	 	 	 	0.952	 	 	 	0.959	 	 	 	60	 
	59
	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.824	 	 	 	0.910	 	 	 	0.911	 	 	 	0.928	 	 	 	0.935	 	 	 	0.953	 	 	 	0.959	 	 	 	59	 
	58
	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.796	 	 	 	0.802	 	 	 	0.905	 	 	 	0.910	 	 	 	0.929	 	 	 	0.934	 	 	 	0.953	 	 	 	0.958	 	 	 	58	 
	57
	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.775	 	 	 	0.778	 	 	 	0.905	 	 	 	0.911	 	 	 	0.930	 	 	 	0.935	 	 	 	0.954	 	 	 	0.959	 	 	 	57	 
	56
	 	 	0.730	 	 	 	0.730	 	 	 	0.730	 	 	 	0.732	 	 	 	0.756	 	 	 	0.760	 	 	 	0.906	 	 	 	0.910	 	 	 	0.931	 	 	 	0.935	 	 	 	0.959	 	 	 	0.963	 	 	 	56	 
	55
	 	 	0.700	 	 	 	0.700	 	 	 	0.709	 	 	 	0.714	 	 	 	0.734	 	 	 	0.739	 	 	 	0.907	 	 	 	0.911	 	 	 	0.934	 	 	 	0.938	 	 	 	0.960	 	 	 	0.964	 	 	 	55	 
	54
	 	 	0.670	 	 	 	0.670	 	 	 	0.689	 	 	 	0.691	 	 	 	0.713	 	 	 	0.716	 	 	 	0.911	 	 	 	0.914	 	 	 	0.936	 	 	 	0.939	 	 	 	0.961	 	 	 	0.963	 	 	 	54	 
	53
	 	 	 	 	 	 	 	 	 	 	0.668	 	 	 	0.668	 	 	 	0.688	 	 	 	0.691	 	 	 	 	 	 	 	 	 	 	 	0.935	 	 	 	0.939	 	 	 	0.958	 	 	 	0.961	 	 	 	53	 
	52
	 	 	 	 	 	 	 	 	 	 	0.641	 	 	 	0.643	 	 	 	0.662	 	 	 	0.665	 	 	 	 	 	 	 	 	 	 	 	0.933	 	 	 	0.936	 	 	 	0.955	 	 	 	0.957	 	 	 	52	 
	51
	 	 	 	 	 	 	 	 	 	 	0.615	 	 	 	0.617	 	 	 	0.633	 	 	 	0.636	 	 	 	 	 	 	 	 	 	 	 	0.930	 	 	 	0.933	 	 	 	0.949	 	 	 	0.951	 	 	 	51	 
	50
	 	 	 	 	 	 	 	 	 	 	0.587	 	 	 	0.589	 	 	 	0.604	 	 	 	0.607	 	 	 	 	 	 	 	 	 	 	 	0.924	 	 	 	0.926	 	 	 	0.942	 	 	 	0.944	 	 	 	50	 
	49
	 	 	 	 	 	 	 	 	 	 	0.558	 	 	 	0.559	 	 	 	0.574	 	 	 	0.576	 	 	 	 	 	 	 	 	 	 	 	0.917	 	 	 	0.919	 	 	 	0.934	 	 	 	0.936	 	 	 	49	 
	48
	 	 	 	 	 	 	 	 	 	 	0.527	 	 	 	0.528	 	 	 	0.543	 	 	 	0.544	 	 	 	 	 	 	 	 	 	 	 	0.910	 	 	 	0.910	 	 	 	0.925	 	 	 	0.926	 	 	 	48	 
	47
	 	 	 	 	 	 	 	 	 	 	0.496	 	 	 	0.496	 	 	 	0.511	 	 	 	0.511	 	 	 	 	 	 	 	 	 	 	 	0.901	 	 	 	0.902	 	 	 	0.916	 	 	 	0.916	 	 	 	47	 
	46
	 	 	 	 	 	 	 	 	 	 	0.463	 	 	 	0.464	 	 	 	0.477	 	 	 	0.477	 	 	 	 	 	 	 	 	 	 	 	0.890	 	 	 	0.891	 	 	 	0.903	 	 	 	0.905	 	 	 	46	 
	45
	 	 	 	 	 	 	 	 	 	 	0.429	 	 	 	0.430	 	 	 	0.442	 	 	 	0.443	 	 	 	 	 	 	 	 	 	 	 	0.879	 	 	 	0.880	 	 	 	0.892	 	 	 	0.893	 	 	 	45	 
	44
	 	 	 	 	 	 	 	 	 	 	0.410	 	 	 	0.411	 	 	 	0.422	 	 	 	0.423	 	 	 	 	 	 	 	 	 	 	 	0.868	 	 	 	0.868	 	 	 	0.880	 	 	 	0.880	 	 	 	44	 
	43
	 	 	 	 	 	 	 	 	 	 	0.390	 	 	 	0.391	 	 	 	0.401	 	 	 	0.402	 	 	 	 	 	 	 	 	 	 	 	0.390	 	 	 	0.391	 	 	 	0.401	 	 	 	0.402	 	 	 	43	 
	42
	 	 	 	 	 	 	 	 	 	 	0.369	 	 	 	0.369	 	 	 	0.380	 	 	 	0.380	 	 	 	 	 	 	 	 	 	 	 	0.369	 	 	 	0.369	 	 	 	0.360	 	 	 	0.360	 	 	 	42	 
	41
	 	 	 	 	 	 	 	 	 	 	0.347	 	 	 	0.347	 	 	 	0.357	 	 	 	0.357	 	 	 	 	 	 	 	 	 	 	 	0.347	 	 	 	0.347	 	 	 	0.357	 	 	 	0.357	 	 	 	41	 
	40
	 	 	 	 	 	 	 	 	 	 	0.325	 	 	 	0.325	 	 	 	0.335	 	 	 	0.335	 	 	 	 	 	 	 	 	 	 	 	0.325	 	 	 	0.325	 	 	 	0.335	 	 	 	0.335	 	 	 	40	 
	39
	 	 	 	 	 	 	 	 	 	 	0.318	 	 	 	0.318	 	 	 	0.327	 	 	 	0.327	 	 	 	 	 	 	 	 	 	 	 	0.318	 	 	 	0.318	 	 	 	0.327	 	 	 	0.327	 	 	 	39	 
	38
	 	 	 	 	 	 	 	 	 	 	0.309	 	 	 	0.310	 	 	 	0.317	 	 	 	0.318	 	 	 	 	 	 	 	 	 	 	 	0.309	 	 	 	0.310	 	 	 	0.317	 	 	 	0.318	 	 	 	38	 
	37
	 	 	 	 	 	 	 	 	 	 	0.300	 	 	 	0.301	 	 	 	0.308	 	 	 	0.309	 	 	 	 	 	 	 	 	 	 	 	0.300	 	 	 	0.301	 	 	 	0.308	 	 	 	0.309	 	 	 	37	 
	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.299	 	 	 	0.300	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.299	 	 	 	0.300	 	 	 	36	 
	35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.289	 	 	 	0.290	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.289	 	 	 	0.290	 	 	 	35	 
	34
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.279	 	 	 	0.280	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.279	 	 	 	0.280	 	 	 	34	 
	33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.268	 	 	 	0.268	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.268	 	 	 	0.268	 	 	 	33	 
	32
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.257	 	 	 	0.257	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.257	 	 	 	0.257	 	 	 	32	 
	31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.246	 	 	 	0.246	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.246	 	 	 	0.246	 	 	 	31	 
	30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.235	 	 	 	0.235	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.235	 	 	 	0.235	 	 	 	30	 
	29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.224	 	 	 	0.224	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.224	 	 	 	0.224	 	 	 	29	 
	28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.212	 	 	 	0.212	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.212	 	 	 	0.212	 	 	 	28	 
	27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.200	 	 	 	0.200	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.200	 	 	 	0.200	 	 	 	27	 
	26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.188	 	 	 	0.188	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.188	 	 	 	0.188	 	 	 	26	 
	25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.176	 	 	 	0.176	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.178	 	 	 	0.176	 	 	 	25	 
	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.163	 	 	 	0.163	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.163	 	 	 	0.163	 	 	 	24	 
	23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.151	 	 	 	0.151	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.151	 	 	 	0.151	 	 	 	23	 
	22
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.138	 	 	 	0.138	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.138	 	 	 	0.138	 	 	 	22	 
	21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.125	 	 	 	0.125	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.125	 	 	 	0.125	 	 	 	21	 
	20
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.113	 	 	 	0.113	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.113	 	 	 	0.113	 	 	 	20	 
	19
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.099	 	 	 	0.099	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.099	 	 	 	0.099	 	 	 	19	 
	18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.086	 	 	 	0.086	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.086	 	 	 	0.088	 	 	 	18	 

 

 

 

Table II

APPENDIX A

Adjusted ERF’s For Integrated Calculations

1.75% Integrated Formula

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 — — — 3% ERF’s — — — 	 	 	 — — — 1.5% ERF’s — — — 	 	 	 	 
	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	 	 
	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	 	 
	AGE	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	AGE	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	65	 
	64
	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	64	 
	63
	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	63	 
	62
	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.963	 	 	 	62	 
	61
	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.951	 	 	 	0.957	 	 	 	61	 
	60
	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.925	 	 	 	0.925	 	 	 	0.927	 	 	 	0.933	 	 	 	0.947	 	 	 	0.952	 	 	 	60	 
	59
	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.823	 	 	 	0.910	 	 	 	0.911	 	 	 	0.925	 	 	 	0.930	 	 	 	0.944	 	 	 	0.949	 	 	 	59	 
	58
	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.795	 	 	 	0.799	 	 	 	0.903	 	 	 	0.907	 	 	 	0.922	 	 	 	0.926	 	 	 	0.942	 	 	 	0.946	 	 	 	58	 
	57
	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.772	 	 	 	0.775	 	 	 	0.900	 	 	 	0.905	 	 	 	0.920	 	 	 	0.924	 	 	 	0.939	 	 	 	0.943	 	 	 	57	 
	56
	 	 	0.730	 	 	 	0.730	 	 	 	0.730	 	 	 	0.732	 	 	 	0.751	 	 	 	0.754	 	 	 	0.898	 	 	 	0.901	 	 	 	0.917	 	 	 	0.921	 	 	 	0.940	 	 	 	0.943	 	 	 	56	 
	55
	 	 	0.700	 	 	 	0.700	 	 	 	0.707	 	 	 	0.711	 	 	 	0.728	 	 	 	0.731	 	 	 	0.896	 	 	 	0.899	 	 	 	0.918	 	 	 	0.921	 	 	 	0.938	 	 	 	0.941	 	 	 	55	 
	54
	 	 	0.670	 	 	 	0.670	 	 	 	0.685	 	 	 	0.687	 	 	 	0.705	 	 	 	0.707	 	 	 	0.896	 	 	 	0.898	 	 	 	0.916	 	 	 	0.918	 	 	 	0.936	 	 	 	0.938	 	 	 	54	 
	53
	 	 	 	 	 	 	 	 	 	 	0.660	 	 	 	0.663	 	 	 	0.679	 	 	 	0.681	 	 	 	 	 	 	 	 	 	 	 	0.912	 	 	 	0.915	 	 	 	0.930	 	 	 	0.933	 	 	 	53	 
	52
	 	 	 	 	 	 	 	 	 	 	0.634	 	 	 	0.637	 	 	 	0.652	 	 	 	0.654	 	 	 	 	 	 	 	 	 	 	 	0.908	 	 	 	0.910	 	 	 	0.925	 	 	 	0.927	 	 	 	52	 
	51
	 	 	 	 	 	 	 	 	 	 	0.608	 	 	 	0.610	 	 	 	0.623	 	 	 	0.625	 	 	 	 	 	 	 	 	 	 	 	0.902	 	 	 	0.904	 	 	 	0.917	 	 	 	0.919	 	 	 	51	 
	50
	 	 	 	 	 	 	 	 	 	 	0.579	 	 	 	0.581	 	 	 	0.594	 	 	 	0.595	 	 	 	 	 	 	 	 	 	 	 	0.894	 	 	 	0.896	 	 	 	0.909	 	 	 	0.910	 	 	 	50	 
	49
	 	 	 	 	 	 	 	 	 	 	0.550	 	 	 	0.551	 	 	 	0.564	 	 	 	0.565	 	 	 	 	 	 	 	 	 	 	 	0.886	 	 	 	0.887	 	 	 	0.899	 	 	 	0.901	 	 	 	49	 
	48
	 	 	 	 	 	 	 	 	 	 	0.519	 	 	 	0.521	 	 	 	0.532	 	 	 	0.533	 	 	 	 	 	 	 	 	 	 	 	0.877	 	 	 	0.877	 	 	 	0.889	 	 	 	0.890	 	 	 	48	 
	47
	 	 	 	 	 	 	 	 	 	 	0.489	 	 	 	0.489	 	 	 	0.500	 	 	 	0.501	 	 	 	 	 	 	 	 	 	 	 	0.867	 	 	 	0.867	 	 	 	0.878	 	 	 	0.879	 	 	 	47	 
	46
	 	 	 	 	 	 	 	 	 	 	0.456	 	 	 	0.457	 	 	 	0.467	 	 	 	0.468	 	 	 	 	 	 	 	 	 	 	 	0.855	 	 	 	0.856	 	 	 	0.868	 	 	 	0.867	 	 	 	46	 
	45
	 	 	 	 	 	 	 	 	 	 	0.423	 	 	 	0.424	 	 	 	0.433	 	 	 	0.434	 	 	 	 	 	 	 	 	 	 	 	0.843	 	 	 	0.844	 	 	 	0.853	 	 	 	0.854	 	 	 	45	 
	44
	 	 	 	 	 	 	 	 	 	 	0.404	 	 	 	0.405	 	 	 	0.413	 	 	 	0.414	 	 	 	 	 	 	 	 	 	 	 	0.831	 	 	 	0.832	 	 	 	0.841	 	 	 	0.841	 	 	 	44	 
	43
	 	 	 	 	 	 	 	 	 	 	0.384	 	 	 	0.385	 	 	 	0.393	 	 	 	0.393	 	 	 	 	 	 	 	 	 	 	 	0.384	 	 	 	0.385	 	 	 	0.393	 	 	 	0.393	 	 	 	43	 
	42
	 	 	 	 	 	 	 	 	 	 	0.363	 	 	 	0.363	 	 	 	0.372	 	 	 	0.372	 	 	 	 	 	 	 	 	 	 	 	0.363	 	 	 	0.363	 	 	 	0.372	 	 	 	0.372	 	 	 	42	 
	41
	 	 	 	 	 	 	 	 	 	 	0.341	 	 	 	0.341	 	 	 	0.349	 	 	 	0.349	 	 	 	 	 	 	 	 	 	 	 	0.341	 	 	 	0.341	 	 	 	0.349	 	 	 	0.349	 	 	 	41	 
	40
	 	 	 	 	 	 	 	 	 	 	0.320	 	 	 	0.320	 	 	 	0.328	 	 	 	0.328	 	 	 	 	 	 	 	 	 	 	 	0.320	 	 	 	0.320	 	 	 	0.328	 	 	 	0.328	 	 	 	40	 
	39
	 	 	 	 	 	 	 	 	 	 	0.312	 	 	 	0.312	 	 	 	0.319	 	 	 	0.319	 	 	 	 	 	 	 	 	 	 	 	0.312	 	 	 	0.312	 	 	 	0.319	 	 	 	0.319	 	 	 	39	 
	38
	 	 	 	 	 	 	 	 	 	 	0.303	 	 	 	0.304	 	 	 	0.310	 	 	 	0.310	 	 	 	 	 	 	 	 	 	 	 	0.303	 	 	 	0.304	 	 	 	0.310	 	 	 	0.310	 	 	 	38	 
	37
	 	 	 	 	 	 	 	 	 	 	0.294	 	 	 	0.295	 	 	 	0.300	 	 	 	0.301	 	 	 	 	 	 	 	 	 	 	 	0.294	 	 	 	0.295	 	 	 	0.300	 	 	 	0.301	 	 	 	37	 
	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.291	 	 	 	0.292	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.291	 	 	 	0.292	 	 	 	36	 
	35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.281	 	 	 	0.282	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.281	 	 	 	0.282	 	 	 	35	 
	34
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.271	 	 	 	0.272	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.271	 	 	 	0.272	 	 	 	34	 
	33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.260	 	 	 	0.260	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.260	 	 	 	0.260	 	 	 	33	 
	32
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.250	 	 	 	0.249	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.250	 	 	 	0.249	 	 	 	32	 
	31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.239	 	 	 	0.239	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.239	 	 	 	0.239	 	 	 	31	 
	30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.228	 	 	 	0.228	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.228	 	 	 	0.228	 	 	 	30	 
	29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.217	 	 	 	0.217	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.217	 	 	 	0.217	 	 	 	29	 
	28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.206	 	 	 	0.206	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.206	 	 	 	0.206	 	 	 	28	 
	27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.194	 	 	 	0.194	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.194	 	 	 	0.194	 	 	 	27	 
	26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.182	 	 	 	0.182	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.182	 	 	 	0.182	 	 	 	26	 
	25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.171	 	 	 	0.171	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.171	 	 	 	0.171	 	 	 	25	 
	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.158	 	 	 	0.158	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.158	 	 	 	0.158	 	 	 	24	 
	23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.147	 	 	 	0.147	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.147	 	 	 	0.147	 	 	 	23	 
	22
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.134	 	 	 	0.134	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.134	 	 	 	0.134	 	 	 	22	 
	21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.122	 	 	 	0.122	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.122	 	 	 	0.122	 	 	 	21	 
	20
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.110	 	 	 	0.110	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.110	 	 	 	0.110	 	 	 	20	 
	19
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.097	 	 	 	0.097	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.097	 	 	 	0.097	 	 	 	19	 
	18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.085	 	 	 	0.085	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.085	 	 	 	0.085	 	 	 	18	 

 

 

 

Table III

APPENDIX A

Adjusted
ERF’s For Integrated Calculations

2.0% Integrated Formula

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	—
—
— 3% ERF’s — — —	 	 	—
— — 1.5%
ERF’s — — —	 	 	 	 
	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	 	 
	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	 	 
	AGE	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	AGE	 
	 
	 	 	 	 
	65
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	65	 
	64
	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	64	 
	63
	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	63	 
	62
	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.962	 	 	 	62	 
	61
	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.949	 	 	 	0.954	 	 	 	61	 
	60
	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.925	 	 	 	0.925	 	 	 	0.927	 	 	 	0.932	 	 	 	0.943	 	 	 	0.948	 	 	 	60	 
	59
	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.823	 	 	 	0.910	 	 	 	0.911	 	 	 	0.922	 	 	 	0.927	 	 	 	0.938	 	 	 	0.943	 	 	 	59	 
	58
	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.794	 	 	 	0.798	 	 	 	0.901	 	 	 	0.905	 	 	 	0.918	 	 	 	0.921	 	 	 	0.934	 	 	 	0.937	 	 	 	58	 
	57
	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.770	 	 	 	0.772	 	 	 	0.897	 	 	 	0.901	 	 	 	0.913	 	 	 	0.917	 	 	 	0.929	 	 	 	0.933	 	 	 	57	 
	56
	 	 	0.730	 	 	 	0.730	 	 	 	0.730	 	 	 	0.731	 	 	 	0.748	 	 	 	0.750	 	 	 	0.892	 	 	 	0.895	 	 	 	0.909	 	 	 	0.911	 	 	 	0.928	 	 	 	0.930	 	 	 	56	 
	55
	 	 	0.700	 	 	 	0.700	 	 	 	0.706	 	 	 	0.709	 	 	 	0.723	 	 	 	0.726	 	 	 	0.888	 	 	 	0.891	 	 	 	0.906	 	 	 	0.909	 	 	 	0.923	 	 	 	0.926	 	 	 	55	 
	54
	 	 	0.670	 	 	 	0.670	 	 	 	0.682	 	 	 	0.684	 	 	 	0.699	 	 	 	0.700	 	 	 	0.885	 	 	 	0.888	 	 	 	0.803	 	 	 	0.904	 	 	 	0.919	 	 	 	0.921	 	 	 	54	 
	53
	 	 	 	 	 	 	 	 	 	 	0.657	 	 	 	0.659	 	 	 	0.672	 	 	 	0.674	 	 	 	 	 	 	 	 	 	 	 	0.897	 	 	 	0.899	 	 	 	0.912	 	 	 	0.914	 	 	 	53	 
	52
	 	 	 	 	 	 	 	 	 	 	0.630	 	 	 	0.632	 	 	 	0.645	 	 	 	0.646	 	 	 	 	 	 	 	 	 	 	 	0.890	 	 	 	0.892	 	 	 	0.905	 	 	 	0.907	 	 	 	52	 
	51
	 	 	 	 	 	 	 	 	 	 	0.603	 	 	 	0.605	 	 	 	0.616	 	 	 	0.617	 	 	 	 	 	 	 	 	 	 	 	0.884	 	 	 	0.885	 	 	 	0.896	 	 	 	0.895	 	 	 	51	 
	50
	 	 	 	 	 	 	 	 	 	 	0.574	 	 	 	0.578	 	 	 	0.588	 	 	 	0.588	 	 	 	 	 	 	 	 	 	 	 	0.875	 	 	 	0.876	 	 	 	0.888	 	 	 	0.887	 	 	 	50	 
	49
	 	 	 	 	 	 	 	 	 	 	0.545	 	 	 	0.548	 	 	 	0.558	 	 	 	0.557	 	 	 	 	 	 	 	 	 	 	 	0.865	 	 	 	0.866	 	 	 	0.876	 	 	 	0.877	 	 	 	49	 
	48
	 	 	 	 	 	 	 	 	 	 	0.514	 	 	 	0.516	 	 	 	0.525	 	 	 	0.526	 	 	 	 	 	 	 	 	 	 	 	0.855	 	 	 	0.855	 	 	 	0.865	 	 	 	0.866	 	 	 	48	 
	47
	 	 	 	 	 	 	 	 	 	 	0.484	 	 	 	0.484	 	 	 	0.494	 	 	 	0.494	 	 	 	 	 	 	 	 	 	 	 	0.844	 	 	 	0.844	 	 	 	0.854	 	 	 	0.854	 	 	 	47	 
	46
	 	 	 	 	 	 	 	 	 	 	0.452	 	 	 	0.452	 	 	 	0.461	 	 	 	0.462	 	 	 	 	 	 	 	 	 	 	 	0.831	 	 	 	0.832	 	 	 	0.841	 	 	 	0.841	 	 	 	46	 
	45
	 	 	 	 	 	 	 	 	 	 	0.419	 	 	 	0.420	 	 	 	0.428	 	 	 	0.428	 	 	 	 	 	 	 	 	 	 	 	0.819	 	 	 	0.820	 	 	 	0.828	 	 	 	0.829	 	 	 	45	 
	44
	 	 	 	 	 	 	 	 	 	 	0.400	 	 	 	0.400	 	 	 	0.408	 	 	 	0.408	 	 	 	 	 	 	 	 	 	 	 	0.807	 	 	 	0.807	 	 	 	0.815	 	 	 	0.815	 	 	 	44	 
	43
	 	 	 	 	 	 	 	 	 	 	0.380	 	 	 	0.380	 	 	 	0.387	 	 	 	0.388	 	 	 	 	 	 	 	 	 	 	 	0.380	 	 	 	0.360	 	 	 	0.387	 	 	 	0.388	 	 	 	43	 
	42
	 	 	 	 	 	 	 	 	 	 	0.359	 	 	 	0.367	 	 	 	0.367	 	 	 	0.366	 	 	 	 	 	 	 	 	 	 	 	0.359	 	 	 	0.359	 	 	 	0.367	 	 	 	0.366	 	 	 	42	 
	41
	 	 	 	 	 	 	 	 	 	 	0.338	 	 	 	0.338	 	 	 	0.345	 	 	 	0.344	 	 	 	 	 	 	 	 	 	 	 	0.338	 	 	 	0.338	 	 	 	0.345	 	 	 	0.344	 	 	 	41	 
	40
	 	 	 	 	 	 	 	 	 	 	0.317	 	 	 	0.317	 	 	 	0.323	 	 	 	0.323	 	 	 	 	 	 	 	 	 	 	 	0.317	 	 	 	0.317	 	 	 	0.323	 	 	 	0.323	 	 	 	40	 
	39
	 	 	 	 	 	 	 	 	 	 	0.309	 	 	 	0.309	 	 	 	0.315	 	 	 	0.314	 	 	 	 	 	 	 	 	 	 	 	0.309	 	 	 	0.309	 	 	 	0.315	 	 	 	0.314	 	 	 	39	 
	38
	 	 	 	 	 	 	 	 	 	 	0.299	 	 	 	0.300	 	 	 	0.305	 	 	 	0.305	 	 	 	 	 	 	 	 	 	 	 	0.299	 	 	 	0.300	 	 	 	0.305	 	 	 	0.305	 	 	 	38	 
	37
	 	 	 	 	 	 	 	 	 	 	0.290	 	 	 	0.291	 	 	 	0.295	 	 	 	0.296	 	 	 	 	 	 	 	 	 	 	 	0.290	 	 	 	0.291	 	 	 	0.295	 	 	 	0.296	 	 	 	37	 
	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.286	 	 	 	0.287	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.286	 	 	 	0.287	 	 	 	36	 
	35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.276	 	 	 	0.277	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.276	 	 	 	0.277	 	 	 	35	 
	34
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.268	 	 	 	0.267	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.266	 	 	 	0.267	 	 	 	34	 
	33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.255	 	 	 	0.255	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.255	 	 	 	0.255	 	 	 	33	 
	32
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.245	 	 	 	0.245	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.245	 	 	 	0.245	 	 	 	32	 
	31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.234	 	 	 	0.234	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.234	 	 	 	0.234	 	 	 	31	 
	30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.223	 	 	 	0.223	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.223	 	 	 	0.223	 	 	 	30	 
	29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.213	 	 	 	0.213	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.213	 	 	 	0.213	 	 	 	29	 
	28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.201	 	 	 	0.201	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.201	 	 	 	0.201	 	 	 	28	 
	27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.190	 	 	 	0.190	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.190	 	 	 	0.190	 	 	 	27	 
	26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.179	 	 	 	0.179	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.179	 	 	 	0.179	 	 	 	26	 
	25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.167	 	 	 	0.167	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.167	 	 	 	0.167	 	 	 	25	 
	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.155	 	 	 	0.155	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.155	 	 	 	0.155	 	 	 	24	 
	23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.144	 	 	 	0.144	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.144	 	 	 	0.144	 	 	 	23	 
	22
	 	 	 	 	 	 	 	 	 	 	,	 	 	 	 	 	 	 	0.132	 	 	 	0.132	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.132	 	 	 	0.132	 	 	 	22	 
	21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.120	 	 	 	0.120	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.120	 	 	 	0.120	 	 	 	21	 
	20
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.109	 	 	 	0.109	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.109	 	 	 	0.109	 	 	 	20	 
	19
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.096	 	 	 	0.096	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.096	 	 	 	0.096	 	 	 	19	 
	18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.084	 	 	 	0.084	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.084	 	 	 	0.084	 	 	 	18	 

 

 

Table IV

APPENDIX A

Adjusted
ERF’s For Integrated Calculations

2.25% Integrated Formula

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 — — — 3% ERF’s — — — 	 	 	 — — — 1.5% ERF’s — — — 	 	 	 	 
	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	 	 
	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	 	 
	AGE	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	AGE	 
	 
	 	 	 	 
	65
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	65	 
	64
	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	64	 
	63
	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	63	 
	62
	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.961	 	 	 	62	 
	61
	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.948	 	 	 	0.952	 	 	 	61	 
	60
	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.925	 	 	 	0.925	 	 	 	0.927	 	 	 	0.931	 	 	 	0.940	 	 	 	0.945	 	 	 	60	 
	59
	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.822	 	 	 	0.910	 	 	 	0.911	 	 	 	0.921	 	 	 	0.924	 	 	 	0.934	 	 	 	0.938	 	 	 	59	 
	58
	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.793	 	 	 	0.797	 	 	 	0.901	 	 	 	0.904	 	 	 	0.914	 	 	 	0.917	 	 	 	0.928	 	 	 	0.931	 	 	 	58	 
	57
	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.768	 	 	 	0.770	 	 	 	0.894	 	 	 	0.898	 	 	 	0.908	 	 	 	0.911	 	 	 	0.922	 	 	 	0.925	 	 	 	57	 
	56
	 	 	0.730	 	 	 	0.730	 	 	 	0.730	 	 	 	0.731	 	 	 	0.745	 	 	 	0.747	 	 	 	0.889	 	 	 	0.891	 	 	 	0.902	 	 	 	0.905	 	 	 	0.919	 	 	 	0.921	 	 	 	56	 
	55
	 	 	0.700	 	 	 	0.700	 	 	 	0.705	 	 	 	0.708	 	 	 	0.720	 	 	 	0.722	 	 	 	0.883	 	 	 	0.885	 	 	 	0.898	 	 	 	0.900	 	 	 	0.913	 	 	 	0.915	 	 	 	55	 
	54
	 	 	0.670	 	 	 	0.670	 	 	 	0.681	 	 	 	0.682	 	 	 	0.695	 	 	 	0.696	 	 	 	0.878	 	 	 	0.880	 	 	 	0.893	 	 	 	0.894	 	 	 	0.907	 	 	 	0.908	 	 	 	54	 
	53
	 	 	 	 	 	 	 	 	 	 	0.655	 	 	 	0.656	 	 	 	0.668	 	 	 	0.669	 	 	 	 	 	 	 	 	 	 	 	0.886	 	 	 	0.888	 	 	 	0.899	 	 	 	0.901	 	 	 	53	 
	52
	 	 	 	 	 	 	 	 	 	 	0.627	 	 	 	0.629	 	 	 	0.640	 	 	 	0.641	 	 	 	 	 	 	 	 	 	 	 	0.878	 	 	 	0.880	 	 	 	0.891	 	 	 	0.892	 	 	 	52	 
	51
	 	 	 	 	 	 	 	 	 	 	0.600	 	 	 	0.601	 	 	 	0.610	 	 	 	0.612	 	 	 	 	 	 	 	 	 	 	 	0.870	 	 	 	0.872	 	 	 	0.881	 	 	 	0.882	 	 	 	51	 
	50
	 	 	 	 	 	 	 	 	 	 	0.571	 	 	 	0.572	 	 	 	0.581	 	 	 	0.582	 	 	 	 	 	 	 	 	 	 	 	0.860	 	 	 	0.861	 	 	 	0.871	 	 	 	0.871	 	 	 	50	 
	49
	 	 	 	 	 	 	 	 	 	 	0.541	 	 	 	0.542	 	 	 	0.551	 	 	 	0.552	 	 	 	 	 	 	 	 	 	 	 	0.850	 	 	 	0.851	 	 	 	0.860	 	 	 	0.860	 	 	 	49	 
	48
	 	 	 	 	 	 	 	 	 	 	0.511	 	 	 	0.512	 	 	 	0.520	 	 	 	0.521	 	 	 	 	 	 	 	 	 	 	 	0.839	 	 	 	0.839	 	 	 	0.848	 	 	 	0.848	 	 	 	48	 
	47
	 	 	 	 	 	 	 	 	 	 	0.480	 	 	 	0.481	 	 	 	0.489	 	 	 	0.489	 	 	 	 	 	 	 	 	 	 	 	0.828	 	 	 	0.828	 	 	 	0.836	 	 	 	0.837	 	 	 	47	 
	46
	 	 	 	 	 	 	 	 	 	 	0.449	 	 	 	0.449	 	 	 	0.457	 	 	 	0.457	 	 	 	 	 	 	 	 	 	 	 	0.815	 	 	 	0.816	 	 	 	0.823	 	 	 	0.823	 	 	 	46	 
	45
	 	 	 	 	 	 	 	 	 	 	0.416	 	 	 	0.417	 	 	 	0.424	 	 	 	0.424	 	 	 	 	 	 	 	 	 	 	 	0.802	 	 	 	0.803	 	 	 	0.810	 	 	 	0.810	 	 	 	45	 
	44
	 	 	 	 	 	 	 	 	 	 	0.397	 	 	 	0.398	 	 	 	0.404	 	 	 	0.404	 	 	 	 	 	 	 	 	 	 	 	0.790	 	 	 	0.790	 	 	 	0.796	 	 	 	0.797	 	 	 	44	 
	43
	 	 	 	 	 	 	 	 	 	 	0.377	 	 	 	0.378	 	 	 	0.383	 	 	 	0.384	 	 	 	 	 	 	 	 	 	 	 	0.377	 	 	 	0.378	 	 	 	0.383	 	 	 	0.384	 	 	 	43	 
	42
	 	 	 	 	 	 	 	 	 	 	0.356	 	 	 	0.358	 	 	 	0.363	 	 	 	0.363	 	 	 	 	 	 	 	 	 	 	 	0.356	 	 	 	0.356	 	 	 	0.363	 	 	 	0.363	 	 	 	42	 
	41
	 	 	 	 	 	 	 	 	 	 	0.335	 	 	 	0.335	 	 	 	0.341	 	 	 	0.341	 	 	 	 	 	 	 	 	 	 	 	0.335	 	 	 	0.335	 	 	 	0.341	 	 	 	0.341	 	 	 	41	 
	40
	 	 	 	 	 	 	 	 	 	 	0.314	 	 	 	0.314	 	 	 	0.320	 	 	 	0.320	 	 	 	 	 	 	 	 	 	 	 	0.314	 	 	 	0.314	 	 	 	0.320	 	 	 	0.320	 	 	 	40	 
	39
	 	 	 	 	 	 	 	 	 	 	0.306	 	 	 	0.306	 	 	 	0.311	 	 	 	0.311	 	 	 	 	 	 	 	 	 	 	 	0.306	 	 	 	0.306	 	 	 	0.311	 	 	 	0.311	 	 	 	39	 
	38
	 	 	 	 	 	 	 	 	 	 	0.297	 	 	 	0.297	 	 	 	0.301	 	 	 	0.302	 	 	 	 	 	 	 	 	 	 	 	0.297	 	 	 	0.297	 	 	 	0.301	 	 	 	0.302	 	 	 	38	 
	37
	 	 	 	 	 	 	 	 	 	 	0.287	 	 	 	0.288	 	 	 	0.292	 	 	 	0.292	 	 	 	 	 	 	 	 	 	 	 	0.287	 	 	 	0.288	 	 	 	0.292	 	 	 	0.292	 	 	 	37	 
	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.282	 	 	 	0.283	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.282	 	 	 	0.283	 	 	 	36	 
	35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.272	 	 	 	0.273	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.272	 	 	 	0.273	 	 	 	35	 
	34
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.262	 	 	 	0.263	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.262	 	 	 	0.263	 	 	 	34	 
	33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.252	 	 	 	0.252	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.252	 	 	 	0.252	 	 	 	33	 
	32
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.241	 	 	 	0.241	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.241	 	 	 	0.241	 	 	 	32	 
	31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.231	 	 	 	0.231	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.231	 	 	 	0.231	 	 	 	31	 
	30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.220	 	 	 	0.220	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.220	 	 	 	0.220	 	 	 	30	 
	29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.209	 	 	 	0.209	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.209	 	 	 	0.209	 	 	 	29	 
	28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.198	 	 	 	0.198	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.198	 	 	 	0.198	 	 	 	28	 
	27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.187	 	 	 	0.187	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.187	 	 	 	0.187	 	 	 	27	 
	26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.176	 	 	 	0.176	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.176	 	 	 	0.176	 	 	 	26	 
	25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.165	 	 	 	0.165	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.165	 	 	 	0.165	 	 	 	25	 
	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.153	 	 	 	0.153	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.153	 	 	 	0.153	 	 	 	24	 
	23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.142	 	 	 	0.142	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.142	 	 	 	0.142	 	 	 	23	 
	22
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.130	 	 	 	0.130	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.130	 	 	 	0.130	 	 	 	22	 
	21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.119	 	 	 	0.119	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.119	 	 	 	0.119	 	 	 	21	 
	20
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.107	 	 	 	0.107	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.107	 	 	 	0.107	 	 	 	20	 
	19
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.095	 	 	 	0.095	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.095	 	 	 	0.095	 	 	 	19	 
	18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.083	 	 	 	0.083	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.083	 	 	 	0.083	 	 	 	18	 

 

 

 

Table V

APPENDIX A

Adjusted
ERF’s For Integrated Calculations

2.5% Integrated Formula

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 — — — 3% ERF’s — — — 	 	 	 — — — 1.5% ERF’s — — — 	 	 	 	 
	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	 	 
	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	 	 
	AGE	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	AGE	 
	 
	 	 	 	 
	65
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	65	 
	64
	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	64	 
	63
	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	63	 
	62
	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.960	 	 	 	62	 
	61
	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.947	 	 	 	0.951	 	 	 	61	 
	60
	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.925	 	 	 	0.925	 	 	 	0.926	 	 	 	0.930	 	 	 	0.939	 	 	 	0.942	 	 	 	60	 
	59
	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.822	 	 	 	0.910	 	 	 	0.910	 	 	 	0.919	 	 	 	0.922	 	 	 	0.931	 	 	 	0.934	 	 	 	59	 
	58
	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.793	 	 	 	0.796	 	 	 	0.900	 	 	 	0.903	 	 	 	0.912	 	 	 	0.915	 	 	 	0.924	 	 	 	0.927	 	 	 	58	 
	57
	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.767	 	 	 	0.769	 	 	 	0.893	 	 	 	0.895	 	 	 	0.905	 	 	 	0.907	 	 	 	0.917	 	 	 	0.919	 	 	 	57	 
	56
	 	 	0.730	 	 	 	0.730	 	 	 	0.730	 	 	 	0.731	 	 	 	0.743	 	 	 	0.745	 	 	 	0.886	 	 	 	0.888	 	 	 	0.898	 	 	 	0.900	 	 	 	0.912	 	 	 	0.914	 	 	 	56	 
	55
	 	 	0.700	 	 	 	0.700	 	 	 	0.704	 	 	 	0.707	 	 	 	0.717	 	 	 	0.719	 	 	 	0.878	 	 	 	0.881	 	 	 	0.892	 	 	 	0.894	 	 	 	0.905	 	 	 	0.907	 	 	 	55	 
	54
	 	 	0.670	 	 	 	0.670	 	 	 	0.679	 	 	 	0.681	 	 	 	0.692	 	 	 	0.693	 	 	 	0.873	 	 	 	0.874	 	 	 	0.888	 	 	 	0.887	 	 	 	0.896	 	 	 	0.899	 	 	 	54	 
	53
	 	 	 	 	 	 	 	 	 	 	0.653	 	 	 	0.654	 	 	 	0.664	 	 	 	0.665	 	 	 	 	 	 	 	 	 	 	 	0.876	 	 	 	0.879	 	 	 	0.889	 	 	 	0.891	 	 	 	53	 
	52
	 	 	 	 	 	 	 	 	 	 	0.625	 	 	 	0.627	 	 	 	0.636	 	 	 	0.637	 	 	 	 	 	 	 	 	 	 	 	0.869	 	 	 	0.870	 	 	 	0.880	 	 	 	0.881	 	 	 	52	 
	51
	 	 	 	 	 	 	 	 	 	 	0.597	 	 	 	0.599	 	 	 	0.607	 	 	 	0.608	 	 	 	 	 	 	 	 	 	 	 	0.860	 	 	 	0.861	 	 	 	0.870	 	 	 	0.871	 	 	 	51	 
	50
	 	 	 	 	 	 	 	 	 	 	0.568	 	 	 	0.570	 	 	 	0.577	 	 	 	0.578	 	 	 	 	 	 	 	 	 	 	 	0.850	 	 	 	0.850	 	 	 	0.859	 	 	 	0.859	 	 	 	50	 
	49
	 	 	 	 	 	 	 	 	 	 	0.539	 	 	 	0.540	 	 	 	0.547	 	 	 	0.548	 	 	 	 	 	 	 	 	 	 	 	0.839	 	 	 	0.840	 	 	 	0.847	 	 	 	0.848	 	 	 	49	 
	48
	 	 	 	 	 	 	 	 	 	 	0.508	 	 	 	0.509	 	 	 	0.516	 	 	 	0.517	 	 	 	 	 	 	 	 	 	 	 	0.827	 	 	 	0.828	 	 	 	0.835	 	 	 	0.836	 	 	 	48	 
	47
	 	 	 	 	 	 	 	 	 	 	0.478	 	 	 	0.478	 	 	 	0.485	 	 	 	0.486	 	 	 	 	 	 	 	 	 	 	 	0.815	 	 	 	0.818	 	 	 	0.823	 	 	 	0.823	 	 	 	47	 
	46
	 	 	 	 	 	 	 	 	 	 	0.446	 	 	 	0.447	 	 	 	0.453	 	 	 	0.454	 	 	 	 	 	 	 	 	 	 	 	0.802	 	 	 	0.803	 	 	 	0.809	 	 	 	0.810	 	 	 	46	 
	45
	 	 	 	 	 	 	 	 	 	 	0.414	 	 	 	0.415	 	 	 	0.421	 	 	 	0.421	 	 	 	 	 	 	 	 	 	 	 	0.789	 	 	 	0.790	 	 	 	0.796	 	 	 	0.797	 	 	 	45	 
	44
	 	 	 	 	 	 	 	 	 	 	0.395	 	 	 	0.395	 	 	 	0.401	 	 	 	0.401	 	 	 	 	 	 	 	 	 	 	 	0.776	 	 	 	0.777	 	 	 	0.782	 	 	 	0.783	 	 	 	44	 
	43
	 	 	 	 	 	 	 	 	 	 	0.375	 	 	 	0.375	 	 	 	0.380	 	 	 	0.381	 	 	 	 	 	 	 	 	 	 	 	0.375	 	 	 	0.375	 	 	 	0.380	 	 	 	0.381	 	 	 	43	 
	42
	 	 	 	 	 	 	 	 	 	 	0.354	 	 	 	0.354	 	 	 	0.360	 	 	 	0.360	 	 	 	 	 	 	 	 	 	 	 	0.354	 	 	 	0.354	 	 	 	0.360	 	 	 	0.360	 	 	 	42	 
	41
	 	 	 	 	 	 	 	 	 	 	0.333	 	 	 	0.333	 	 	 	0.338	 	 	 	0.338	 	 	 	 	 	 	 	 	 	 	 	0.333	 	 	 	0.333	 	 	 	0.338	 	 	 	0.338	 	 	 	41	 
	40
	 	 	 	 	 	 	 	 	 	 	0.312	 	 	 	0.312	 	 	 	0.317	 	 	 	0.317	 	 	 	 	 	 	 	 	 	 	 	0.312	 	 	 	0.312	 	 	 	0.317	 	 	 	0.317	 	 	 	40	 
	39
	 	 	 	 	 	 	 	 	 	 	0.304	 	 	 	0.304	 	 	 	0.308	 	 	 	0.308	 	 	 	 	 	 	 	 	 	 	 	0.304	 	 	 	0.304	 	 	 	0.308	 	 	 	0.308	 	 	 	39	 
	38
	 	 	 	 	 	 	 	 	 	 	0.294	 	 	 	0.295	 	 	 	0.298	 	 	 	0.299	 	 	 	 	 	 	 	 	 	 	 	0.294	 	 	 	0.295	 	 	 	0.298	 	 	 	0.299	 	 	 	38	 
	37
	 	 	 	 	 	 	 	 	 	 	0.285	 	 	 	0.285	 	 	 	0.289	 	 	 	0.289	 	 	 	 	 	 	 	 	 	 	 	0.285	 	 	 	0.285	 	 	 	0.289	 	 	 	0.289	 	 	 	37	 
	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.279	 	 	 	0.280	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.279	 	 	 	0.280	 	 	 	36	 
	35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.269	 	 	 	0.270	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.269	 	 	 	0.270	 	 	 	35	 
	34
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.259	 	 	 	0.260	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.259	 	 	 	0.260	 	 	 	34	 
	33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.249	 	 	 	0.249	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.249	 	 	 	0.249	 	 	 	33	 
	32
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.238	 	 	 	0.238	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.238	 	 	 	0.238	 	 	 	32	 
	31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.228	 	 	 	0.228	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.228	 	 	 	0.228	 	 	 	31	 
	30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.217	 	 	 	0.217	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.217	 	 	 	0.217	 	 	 	30	 
	29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.207	 	 	 	0.207	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.207	 	 	 	0.207	 	 	 	29	 
	28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.196	 	 	 	0.196	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.196	 	 	 	0.196	 	 	 	28	 
	27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.185	 	 	 	0.185	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.185	 	 	 	0.185	 	 	 	27	 
	26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.174	 	 	 	0.174	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.174	 	 	 	0.174	 	 	 	26	 
	25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.163	 	 	 	0.163	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.163	 	 	 	0.163	 	 	 	25	 
	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.151	 	 	 	0.151	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.151	 	 	 	0.151	 	 	 	24	 
	23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.140	 	 	 	0.140	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.140	 	 	 	0.140	 	 	 	23	 
	22
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.129	 	 	 	0.129	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.129	 	 	 	0.129	 	 	 	22	 
	21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.117	 	 	 	0.117	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.117	 	 	 	0.117	 	 	 	21	 
	20
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.106	 	 	 	0.106	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.106	 	 	 	0.106	 	 	 	20	 
	19
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.094	 	 	 	0.094	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.094	 	 	 	0.094	 	 	 	19	 
	18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.083	 	 	 	0.083	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.083	 	 	 	0.083	 	 	 	18	 

 

 

 

Table VI

APPENDIX A

Adjusted ERF’s For Integrated Calculations

2.75% Integrated Formula

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 — — — 3% ERF’s — — — 	 	 	 — — — 1.5% ERF’s — — — 	 	 	 	 
	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	 	 
	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	 	 
	AGE	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	AGE	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	65	 
	64
	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	64	 
	63
	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	63	 
	62
	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.960	 	 	 	62	 
	61
	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.946	 	 	 	0.950	 	 	 	61	 
	60
	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.925	 	 	 	0.925	 	 	 	0.926	 	 	 	0.930	 	 	 	0.937	 	 	 	0.940	 	 	 	60	 
	59
	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.822	 	 	 	0.910	 	 	 	0.910	 	 	 	0.918	 	 	 	0.921	 	 	 	0.929	 	 	 	0.932	 	 	 	59	 
	58
	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.793	 	 	 	0.795	 	 	 	0.899	 	 	 	0.902	 	 	 	0.910	 	 	 	0.912	 	 	 	0.921	 	 	 	0.923	 	 	 	58	 
	57
	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.766	 	 	 	0.768	 	 	 	0.891	 	 	 	0.894	 	 	 	0.902	 	 	 	0.904	 	 	 	0.913	 	 	 	0.915	 	 	 	57	 
	56
	 	 	0.730	 	 	 	0.730	 	 	 	0.730	 	 	 	0.731	 	 	 	0.742	 	 	 	0.743	 	 	 	0.883	 	 	 	0.885	 	 	 	0.894	 	 	 	0.896	 	 	 	0.907	 	 	 	0.908	 	 	 	56	 
	55
	 	 	0.700	 	 	 	0.700	 	 	 	0.704	 	 	 	0.706	 	 	 	0.715	 	 	 	0.717	 	 	 	0.875	 	 	 	0.877	 	 	 	0.888	 	 	 	0.889	 	 	 	0.899	 	 	 	0.900	 	 	 	55	 
	54
	 	 	0.670	 	 	 	0.670	 	 	 	0.678	 	 	 	0.680	 	 	 	0.689	 	 	 	0.690	 	 	 	0.869	 	 	 	0.870	 	 	 	0.880	 	 	 	0.881	 	 	 	0.891	 	 	 	0.892	 	 	 	54	 
	53
	 	 	 	 	 	 	 	 	 	 	0.651	 	 	 	0.653	 	 	 	0.661	 	 	 	0.663	 	 	 	 	 	 	 	 	 	 	 	0.871	 	 	 	0.873	 	 	 	0.881	 	 	 	0.883	 	 	 	53	 
	52
	 	 	 	 	 	 	 	 	 	 	0.624	 	 	 	0.625	 	 	 	0.633	 	 	 	0.634	 	 	 	 	 	 	 	 	 	 	 	0.862	 	 	 	0.863	 	 	 	0.872	 	 	 	0.873	 	 	 	52	 
	51
	 	 	 	 	 	 	 	 	 	 	0.595	 	 	 	0.597	 	 	 	0.604	 	 	 	0.605	 	 	 	 	 	 	 	 	 	 	 	0.852	 	 	 	0.853	 	 	 	0.861	 	 	 	0.862	 	 	 	51	 
	50
	 	 	 	 	 	 	 	 	 	 	0.566	 	 	 	0.567	 	 	 	0.574	 	 	 	0.575	 	 	 	 	 	 	 	 	 	 	 	0.841	 	 	 	0.842	 	 	 	0.849	 	 	 	0.850	 	 	 	50	 
	49
	 	 	 	 	 	 	 	 	 	 	0.537	 	 	 	0.537	 	 	 	0.544	 	 	 	0.545	 	 	 	 	 	 	 	 	 	 	 	0.830	 	 	 	0.831	 	 	 	0.837	 	 	 	0.838	 	 	 	49	 
	48
	 	 	 	 	 	 	 	 	 	 	0.506	 	 	 	0.507	 	 	 	0.513	 	 	 	0.514	 	 	 	 	 	 	 	 	 	 	 	0.818	 	 	 	0.818	 	 	 	0.825	 	 	 	0.825	 	 	 	48	 
	47
	 	 	 	 	 	 	 	 	 	 	0.476	 	 	 	0.476	 	 	 	0.482	 	 	 	0.483	 	 	 	 	 	 	 	 	 	 	 	0.806	 	 	 	0.806	 	 	 	0.812	 	 	 	0.813	 	 	 	47	 
	46
	 	 	 	 	 	 	 	 	 	 	0.445	 	 	 	0.445	 	 	 	0.451	 	 	 	0.451	 	 	 	 	 	 	 	 	 	 	 	0.793	 	 	 	0.793	 	 	 	0.799	 	 	 	0.799	 	 	 	46	 
	45
	 	 	 	 	 	 	 	 	 	 	0.413	 	 	 	0.413	 	 	 	0.419	 	 	 	0.419	 	 	 	 	 	 	 	 	 	 	 	0.779	 	 	 	0.780	 	 	 	0.785	 	 	 	0.786	 	 	 	45	 
	44
	 	 	 	 	 	 	 	 	 	 	0.393	 	 	 	0.394	 	 	 	0.399	 	 	 	0.399	 	 	 	 	 	 	 	 	 	 	 	0.768	 	 	 	0.768	 	 	 	0.772	 	 	 	0.772	 	 	 	44	 
	43
	 	 	 	 	 	 	 	 	 	 	0.373	 	 	 	0.374	 	 	 	0.378	 	 	 	0.379	 	 	 	 	 	 	 	 	 	 	 	0.373	 	 	 	0.374	 	 	 	0.378	 	 	 	0.379	 	 	 	43	 
	42
	 	 	 	 	 	 	 	 	 	 	0.353	 	 	 	0.353	 	 	 	0.358	 	 	 	0.358	 	 	 	 	 	 	 	 	 	 	 	0.353	 	 	 	0.353	 	 	 	0.358	 	 	 	0.358	 	 	 	42	 
	41
	 	 	 	 	 	 	 	 	 	 	0.332	 	 	 	0.332	 	 	 	0.336	 	 	 	0.336	 	 	 	 	 	 	 	 	 	 	 	0.332	 	 	 	0.332	 	 	 	0.336	 	 	 	0.336	 	 	 	41	 
	40
	 	 	 	 	 	 	 	 	 	 	0.311	 	 	 	0.311	 	 	 	0.315	 	 	 	0.315	 	 	 	 	 	 	 	 	 	 	 	0.311	 	 	 	0.311	 	 	 	0.315	 	 	 	0.315	 	 	 	40	 
	39
	 	 	 	 	 	 	 	 	 	 	0.302	 	 	 	0.302	 	 	 	0.306	 	 	 	0.306	 	 	 	 	 	 	 	 	 	 	 	0.302	 	 	 	0.302	 	 	 	0.306	 	 	 	0.306	 	 	 	39	 
	38
	 	 	 	 	 	 	 	 	 	 	0.293	 	 	 	0.293	 	 	 	0.296	 	 	 	0.297	 	 	 	 	 	 	 	 	 	 	 	0.293	 	 	 	0.293	 	 	 	0.296	 	 	 	0.297	 	 	 	38	 
	37
	 	 	 	 	 	 	 	 	 	 	0.283	 	 	 	0.284	 	 	 	0.287	 	 	 	0.287	 	 	 	 	 	 	 	 	 	 	 	0.283	 	 	 	0.284	 	 	 	0.287	 	 	 	0.287	 	 	 	37	 
	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.277	 	 	 	0.278	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.277	 	 	 	0.278	 	 	 	36	 
	35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.267	 	 	 	0.268	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.267	 	 	 	0.268	 	 	 	35	 
	34
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.257	 	 	 	0.258	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.257	 	 	 	0.258	 	 	 	34	 
	33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.247	 	 	 	0.247	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.247	 	 	 	0.247	 	 	 	33	 
	32
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.236	 	 	 	0.236	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.236	 	 	 	0.236	 	 	 	32	 
	31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.226	 	 	 	0.226	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.226	 	 	 	0.226	 	 	 	31	 
	30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.216	 	 	 	0.216	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.216	 	 	 	0.216	 	 	 	30	 
	29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.205	 	 	 	0.205	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.205	 	 	 	0.205	 	 	 	29	 
	28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.194	 	 	 	0.194	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.194	 	 	 	0.194	 	 	 	28	 
	27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.183	 	 	 	0.183	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.183	 	 	 	0.183	 	 	 	27	 
	26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.172	 	 	 	0.172	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.172	 	 	 	0.172	 	 	 	26	 
	25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.162	 	 	 	0.162	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.162	 	 	 	0.162	 	 	 	25	 
	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.150	 	 	 	0.150	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.150	 	 	 	0.150	 	 	 	24	 
	23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.139	 	 	 	0.139	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.139	 	 	 	0.139	 	 	 	23	 
	22
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.128	 	 	 	0.128	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.128	 	 	 	0.128	 	 	 	22	 
	21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.117	 	 	 	0.117	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.117	 	 	 	0.117	 	 	 	21	 
	20
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.106	 	 	 	0.106	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.106	 	 	 	0.106	 	 	 	20	 
	19
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.094	 	 	 	0.094	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.094	 	 	 	0.094	 	 	 	19	 
	18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.083	 	 	 	0.083	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.083	 	 	 	0.083	 	 	 	18	 

 

 

 

Table VII

APPENDIX A

Adjusted ERF’s For Integrated Calculations

3.00% Integrated Formula

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 — — — 3% ERF’s — — — 	 	 	 — — — 1.5% ERF’s — — — 	 	 	 	 
	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	SSNRA 65	 	 	SSNRA 66	 	 	SSNRA 67	 	 	 	 
	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	YOB 1937 or Earlier	 	 	YOB 1938 to 1954	 	 	YOB 1955 or Later	 	 	 	 
	AGE	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	10 C&C	 	 	12X	 	 	AGE	 
	 
	 	 	 	 
	65
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	65	 
	64
	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	0.985	 	 	 	64	 
	63
	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	0.970	 	 	 	63	 
	62
	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.910	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.955	 	 	 	0.959	 	 	 	62	 
	61
	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.880	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.940	 	 	 	0.945	 	 	 	0.949	 	 	 	61	 
	60
	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.850	 	 	 	0.925	 	 	 	0.925	 	 	 	0.926	 	 	 	0.929	 	 	 	0.938	 	 	 	0.939	 	 	 	60	 
	59
	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.820	 	 	 	0.822	 	 	 	0.910	 	 	 	0.910	 	 	 	0.917	 	 	 	0.920	 	 	 	0.927	 	 	 	0.930	 	 	 	59	 
	58
	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.790	 	 	 	0.792	 	 	 	0.795	 	 	 	0.899	 	 	 	0.901	 	 	 	0.909	 	 	 	0.911	 	 	 	0.918	 	 	 	0.920	 	 	 	58	 
	57
	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.760	 	 	 	0.765	 	 	 	0.767	 	 	 	0.890	 	 	 	0.892	 	 	 	0.900	 	 	 	0.902	 	 	 	0.910	 	 	 	0.912	 	 	 	57	 
	56
	 	 	0.730	 	 	 	0.730	 	 	 	0.730	 	 	 	0.731	 	 	 	0.741	 	 	 	0.742	 	 	 	0.881	 	 	 	0.883	 	 	 	0.891	 	 	 	0.893	 	 	 	0.903	 	 	 	0.904	 	 	 	56	 
	55
	 	 	0.700	 	 	 	0.700	 	 	 	0.704	 	 	 	0.705	 	 	 	0.714	 	 	 	0.716	 	 	 	0.873	 	 	 	0.874	 	 	 	0.884	 	 	 	0.885	 	 	 	0.894	 	 	 	0.895	 	 	 	55	 
	54
	 	 	0.670	 	 	 	0.670	 	 	 	0.677	 	 	 	0.679	 	 	 	0.687	 	 	 	0.688	 	 	 	0.885	 	 	 	0.887	 	 	 	0.876	 	 	 	0.877	 	 	 	0.885	 	 	 	0.886	 	 	 	54	 
	53
	 	 	 	 	 	 	 	 	 	 	0.650	 	 	 	0.651	 	 	 	0.659	 	 	 	0.660	 	 	 	 	 	 	 	 	 	 	 	0.866	 	 	 	0.868	 	 	 	0.875	 	 	 	0.877	 	 	 	53	 
	52
	 	 	 	 	 	 	 	 	 	 	0.622	 	 	 	0.623	 	 	 	0.631	 	 	 	0.632	 	 	 	 	 	 	 	 	 	 	 	0.856	 	 	 	0.857	 	 	 	0.865	 	 	 	0.868	 	 	 	52	 
	51
	 	 	 	 	 	 	 	 	 	 	0.594	 	 	 	0.595	 	 	 	0.601	 	 	 	0.602	 	 	 	 	 	 	 	 	 	 	 	0.846	 	 	 	0.847	 	 	 	0.854	 	 	 	0.855	 	 	 	51	 
	50
	 	 	 	 	 	 	 	 	 	 	0.565	 	 	 	0.568	 	 	 	0.572	 	 	 	0.573	 	 	 	 	 	 	 	 	 	 	 	0.835	 	 	 	0.835	 	 	 	0.842	 	 	 	0.842	 	 	 	50	 
	49
	 	 	 	 	 	 	 	 	 	 	0.535	 	 	 	0.536	 	 	 	0.542	 	 	 	0.542	 	 	 	 	 	 	 	 	 	 	 	0.823	 	 	 	0.824	 	 	 	0.830	 	 	 	0.830	 	 	 	49	 
	48
	 	 	 	 	 	 	 	 	 	 	0.505	 	 	 	0.505	 	 	 	0.511	 	 	 	0.512	 	 	 	 	 	 	 	 	 	 	 	0.811	 	 	 	0.811	 	 	 	0.817	 	 	 	0.817	 	 	 	48	 
	47
	 	 	 	 	 	 	 	 	 	 	0.474	 	 	 	0.475	 	 	 	0.480	 	 	 	0.481	 	 	 	 	 	 	 	 	 	 	 	0.798	 	 	 	0.789	 	 	 	0.804	 	 	 	0.805	 	 	 	47	 
	46
	 	 	 	 	 	 	 	 	 	 	0.443	 	 	 	0.443	 	 	 	0.449	 	 	 	0.449	 	 	 	 	 	 	 	 	 	 	 	0.785	 	 	 	0.785	 	 	 	0.790	 	 	 	0.791	 	 	 	46	 
	45
	 	 	 	 	 	 	 	 	 	 	0.412	 	 	 	0.412	 	 	 	0.417	 	 	 	0.417	 	 	 	 	 	 	 	 	 	 	 	0.771	 	 	 	0.772	 	 	 	0.777	 	 	 	0.777	 	 	 	45	 
	44
	 	 	 	 	 	 	 	 	 	 	0.392	 	 	 	0.392	 	 	 	0.397	 	 	 	0.397	 	 	 	 	 	 	 	 	 	 	 	0.758	 	 	 	0.758	 	 	 	0.763	 	 	 	0.763	 	 	 	44	 
	43
	 	 	 	 	 	 	 	 	 	 	0.372	 	 	 	0.372	 	 	 	0.376	 	 	 	0.377	 	 	 	 	 	 	 	 	 	 	 	0.372	 	 	 	0.372	 	 	 	0.376	 	 	 	0.377	 	 	 	43	 
	42
	 	 	 	 	 	 	 	 	 	 	0.352	 	 	 	0.352	 	 	 	0.356	 	 	 	0.356	 	 	 	 	 	 	 	 	 	 	 	0.352	 	 	 	0.352	 	 	 	0.358	 	 	 	0.356	 	 	 	42	 
	41
	 	 	 	 	 	 	 	 	 	 	0.331	 	 	 	0.331	 	 	 	0.335	 	 	 	0.335	 	 	 	 	 	 	 	 	 	 	 	0.331	 	 	 	0.331	 	 	 	0.335	 	 	 	0.335	 	 	 	41	 
	40
	 	 	 	 	 	 	 	 	 	 	0.310	 	 	 	0.310	 	 	 	0.314	 	 	 	0.314	 	 	 	 	 	 	 	 	 	 	 	0.310	 	 	 	0.310	 	 	 	0.314	 	 	 	0.314	 	 	 	40	 
	39
	 	 	 	 	 	 	 	 	 	 	0.301	 	 	 	0.301	 	 	 	0.305	 	 	 	0.305	 	 	 	 	 	 	 	 	 	 	 	0.301	 	 	 	0.301	 	 	 	0.305	 	 	 	0.305	 	 	 	39	 
	38
	 	 	 	 	 	 	 	 	 	 	0.292	 	 	 	0.292	 	 	 	0.295	 	 	 	0.295	 	 	 	 	 	 	 	 	 	 	 	0.292	 	 	 	0.292	 	 	 	0.295	 	 	 	0.295	 	 	 	38	 
	37
	 	 	 	 	 	 	 	 	 	 	0.282	 	 	 	0.282	 	 	 	0.285	 	 	 	0.286	 	 	 	 	 	 	 	 	 	 	 	0.282	 	 	 	0.282	 	 	 	0.285	 	 	 	0.286	 	 	 	37	 
	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.278	 	 	 	0.278	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.276	 	 	 	0.276	 	 	 	36	 
	35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.268	 	 	 	0.268	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.286	 	 	 	0.266	 	 	 	35	 
	34
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.258	 	 	 	0.258	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.256	 	 	 	0.256	 	 	 	34	 
	33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.245	 	 	 	0.245	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.245	 	 	 	0.245	 	 	 	33	 
	32
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.235	 	 	 	0.235	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.235	 	 	 	0.235	 	 	 	32	 
	31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.224	 	 	 	0.224	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.224	 	 	 	0.224	 	 	 	31	 
	30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.214	 	 	 	0.214	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.214	 	 	 	0.214	 	 	 	30	 
	29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.204	 	 	 	0.204	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.204	 	 	 	0.204	 	 	 	29	 
	28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.193	 	 	 	0.193	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.193	 	 	 	0.193	 	 	 	28	 
	27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.182	 	 	 	0.182	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.182	 	 	 	0.182	 	 	 	27	 
	26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.171	 	 	 	0.171	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.171	 	 	 	0.171	 	 	 	26	 
	25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.160	 	 	 	0.160	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.160	 	 	 	0.160	 	 	 	25	 
	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.149	 	 	 	0.149	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.149	 	 	 	0.149	 	 	 	24	 
	23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.138	 	 	 	0.138	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.138	 	 	 	0.138	 	 	 	23	 
	22
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.127	 	 	 	0.127	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.127	 	 	 	0.127	 	 	 	22	 
	21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.116	 	 	 	0.116	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.116	 	 	 	0.116	 	 	 	21	 
	20
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.105	 	 	 	0.105	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.105	 	 	 	0.105	 	 	 	20	 
	19
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.094	 	 	 	0.094	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.094	 	 	 	0.094	 	 	 	19	 
	18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.082	 	 	 	0.082	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.082	 	 	 	0.082	 	 	 	18	 

 

 

 

Appendix B

CONVERSION FACTORS WHERE NORMAL FORM = 10 C&C

1998 GBB89 ASSUMPTIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	OPTION 1	 	 	OPTION 2	 	 	OPTION 3	 
	19
	 	 	1.001	%	 	 	0.990	%	 	 	0.990	%
	20
	 	 	1.001	 	 	 	0.990	 	 	 	0.990	 
	21
	 	 	1.001	 	 	 	0.989	 	 	 	0.990	 
	22
	 	 	1.001	 	 	 	0.988	 	 	 	0.990	 
	23
	 	 	1.001	 	 	 	0.987	 	 	 	0.990	 
	24
	 	 	1.001	 	 	 	0.986	 	 	 	0.990	 
	25
	 	 	1.001	 	 	 	0.985	 	 	 	0.990	 
	26
	 	 	1.001	 	 	 	0.984	 	 	 	0.990	 
	27
	 	 	1.001	 	 	 	0.983	 	 	 	0.990	 
	28
	 	 	1.001	 	 	 	0.982	 	 	 	0.990	 
	29
	 	 	1.001	 	 	 	0.981	 	 	 	0.990	 
	30
	 	 	1.002	 	 	 	0.980	 	 	 	0.990	 
	31
	 	 	1.002	 	 	 	0.979	 	 	 	0.989	 
	32
	 	 	1.002	 	 	 	0.978	 	 	 	0.989	 
	33
	 	 	1.002	 	 	 	0.977	 	 	 	0.988	 
	34
	 	 	1.002	 	 	 	0.976	 	 	 	0.987	 
	35
	 	 	1.002	 	 	 	0.975	 	 	 	0.987	 
	36
	 	 	1.002	 	 	 	0.973	 	 	 	0.986	 
	37
	 	 	1.002	 	 	 	0.971	 	 	 	0.985	 
	38
	 	 	1.002	 	 	 	0.969	 	 	 	0.984	 
	39
	 	 	1.002	 	 	 	0.967	 	 	 	0.983	 
	40
	 	 	1.003	 	 	 	0.965	 	 	 	0.982	 
	41
	 	 	1.003	 	 	 	0.963	 	 	 	0.981	 
	42
	 	 	1.003	 	 	 	0.961	 	 	 	0.980	 
	43
	 	 	1.003	 	 	 	0.959	 	 	 	0.979	 
	44
	 	 	1.003	 	 	 	0.957	 	 	 	0.977	 
	45
	 	 	1.004	 	 	 	0.955	 	 	 	0.975	 
	46
	 	 	1.004	 	 	 	0.952	 	 	 	0.974	 
	47
	 	 	1.005	 	 	 	0.949	 	 	 	0.973	 
	48
	 	 	1.005	 	 	 	0.946	 	 	 	0.972	 
	49
	 	 	1.006	 	 	 	0.943	 	 	 	0.971	 
	50
	 	 	1.007	 	 	 	0.940	 	 	 	0.970	 
	51
	 	 	1.008	 	 	 	0.936	 	 	 	0.968	 
	52
	 	 	1.009	 	 	 	0.932	 	 	 	0.966	 
	53
	 	 	1.010	 	 	 	0.928	 	 	 	0.964	 
	54
	 	 	1.011	 	 	 	0.924	 	 	 	0.962	 
	55
	 	 	1.012	 	 	 	0.920	 	 	 	0.960	 
	56
	 	 	1.015	 	 	 	0.914	 	 	 	0.957	 
	57
	 	 	1.018	 	 	 	0.908	 	 	 	0.954	 
	58
	 	 	1.021	 	 	 	0.902	 	 	 	0.951	 
	59
	 	 	1.024	 	 	 	0.896	 	 	 	0.948	 
	60
	 	 	1.027	 	 	 	0.890	 	 	 	0.945	 
	61
	 	 	1.032	 	 	 	0.884	 	 	 	0.942	 
	62
	 	 	1.037	 	 	 	0.878	 	 	 	0.939	 
	63
	 	 	1.042	 	 	 	0.872	 	 	 	0.936	 
	64
	 	 	1.047	 	 	 	0.866	 	 	 	0.933	 
	65
	 	 	1.052	 	 	 	0.860	 	 	 	0.930	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	FACTOR B
	 	 	 	 	 	 	0.5	%	 	 	0.3	%
	MAXIMUM
	 	 	 	 	 	 	99	%	 	 	99	%

THE ABOVE FACTORS FOR OPTIONS 2 AND 3 ASSUME THE MEMBER AND THE CA ARE THE SAME AGE. WHEN THE AGES
DIFFER:

ADD FACTOR B FOR EACH YEAR THE CA IS OLDER THAN THE MEMBER 

SUBTRACT FACTOR B FOR EACH YEAR THE CA IS YOUNGER THAN THE MEMBER

OPTION 1 IS A LIFE ANNUITY, OPTION 2 IS A 100% J&S w/ 10 YEAR CERTAIN, OPTION 3 IS A 50% J&S

 

 

 

Appendix B

CONVERSION FACTORS WHERE NORMAL FORM = 10 C&C

1998 GBB89 ASSUMPTIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	OPTION 1	 	 	OPTION 2	 	 	OPTION 3	 
	66
	 	 	1.061	 	 	 	0.853	 	 	 	0.926	 
	67
	 	 	1.070	 	 	 	0.846	 	 	 	0.922	 
	68
	 	 	1.079	 	 	 	0.839	 	 	 	0.918	 
	69
	 	 	1.088	 	 	 	0.832	 	 	 	0.914	 
	70
	 	 	1.097	 	 	 	0.825	 	 	 	0.910	 
	71
	 	 	1.112	 	 	 	0.815	 	 	 	0.906	 
	72
	 	 	1.127	 	 	 	0.805	 	 	 	0.902	 
	73
	 	 	1.142	 	 	 	0.795	 	 	 	0.898	 
	74
	 	 	1.157	 	 	 	0.785	 	 	 	0.894	 
	75
	 	 	1.172	 	 	 	0.775	 	 	 	0.890	 
	76
	 	 	1.196	 	 	 	0.764	 	 	 	0.887	 
	77
	 	 	1.220	 	 	 	0.753	 	 	 	0.884	 
	78
	 	 	1.244	 	 	 	0.742	 	 	 	0.881	 
	79
	 	 	1.268	 	 	 	0.731	 	 	 	0.878	 
	80
	 	 	1.292	 	 	 	0.720	 	 	 	0.875	 
	81
	 	 	1.329	 	 	 	0.706	 	 	 	0.872	 
	82
	 	 	1.366	 	 	 	0.692	 	 	 	0.869	 
	83
	 	 	1.403	 	 	 	0.678	 	 	 	0.866	 
	84
	 	 	1.440	 	 	 	0.664	 	 	 	0.863	 
	85
	 	 	1.477	 	 	 	0.650	 	 	 	0.860	 
	86
	 	 	1.529	 	 	 	0.633	 	 	 	0.858	 
	87
	 	 	1.581	 	 	 	0.616	 	 	 	0.856	 
	88
	 	 	1.633	 	 	 	0.599	 	 	 	0.854	 
	89
	 	 	1.685	 	 	 	0.582	 	 	 	0.852	 
	90
	 	 	1.737	 	 	 	0.565	 	 	 	0.850	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	FACTOR B
	 	 	 	 	 	 	0.5	%	 	 	0.3	%
	MAXIMUM
	 	 	 	 	 	 	99	%	 	 	99	%

THE ABOVE FACTORS FOR OPTIONS 2 AND 3 ASSUME THE MEMBER AND THE CA ARE THE SAME AGE. WHEN THE AGES
DIFFER:

ADD FACTOR
 B FOR EACH YEAR THE CA IS OLDER THAN THE MEMBER

 SUBTRACT FACTOR B FOR
EACH YEAR THE CA IS YOUNGER THAN THE MEMBER

OPTION 1 IS A LIFE ANNUITY,
 OPTION 2 IS A 100% J&S w/ 10 YEAR CERTAIN, OPTION 3 IS A 50% J&S

 

 

 

Appendix C

CONVERSION FACTORS WHERE NORMAL FORM = 12X

1998 GBB89 ASSUMPTIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	OPTION 1	 	 	OPTION 2	 	 	OPTION 3	 
	19
	 	 	1.003	%	 	 	0.990	%	 	 	0.990	%
	20
	 	 	1.003	 	 	 	0.990	 	 	 	0.990	 
	21
	 	 	1.003	 	 	 	0.989	 	 	 	0.990	 
	22
	 	 	1.003	 	 	 	0.988	 	 	 	0.990	 
	23
	 	 	1.003	 	 	 	0.987	 	 	 	0.990	 
	24
	 	 	1.003	 	 	 	0.986	 	 	 	0.990	 
	25
	 	 	1.003	 	 	 	0.985	 	 	 	0.990	 
	26
	 	 	1.003	 	 	 	0.984	 	 	 	0.990	 
	27
	 	 	1.003	 	 	 	0.983	 	 	 	0.990	 
	28
	 	 	1.003	 	 	 	0.982	 	 	 	0.990	 
	29
	 	 	1.003	 	 	 	0.981	 	 	 	0.990	 
	30
	 	 	1.003	 	 	 	0.980	 	 	 	0.990	 
	31
	 	 	1.003	 	 	 	0.979	 	 	 	0.989	 
	32
	 	 	1.003	 	 	 	0.978	 	 	 	0.989	 
	33
	 	 	1.003	 	 	 	0.977	 	 	 	0.988	 
	34
	 	 	1.003	 	 	 	0.976	 	 	 	0.987	 
	35
	 	 	1.004	 	 	 	0.975	 	 	 	0.987	 
	36
	 	 	1.004	 	 	 	0.973	 	 	 	0.986	 
	37
	 	 	1.004	 	 	 	0.971	 	 	 	0.985	 
	38
	 	 	1.004	 	 	 	0.969	 	 	 	0.984	 
	39
	 	 	1.004	 	 	 	0.967	 	 	 	0.983	 
	40
	 	 	1.005	 	 	 	0.965	 	 	 	0.982	 
	41
	 	 	1.006	 	 	 	0.963	 	 	 	0.981	 
	42
	 	 	1.007	 	 	 	0.961	 	 	 	0.980	 
	43
	 	 	1.008	 	 	 	0.959	 	 	 	0.979	 
	44
	 	 	1.009	 	 	 	0.957	 	 	 	0.977	 
	45
	 	 	1.010	 	 	 	0.955	 	 	 	0.975	 
	46
	 	 	1.011	 	 	 	0.952	 	 	 	0.974	 
	47
	 	 	1.012	 	 	 	0.949	 	 	 	0.973	 
	48
	 	 	1.013	 	 	 	0.946	 	 	 	0.972	 
	49
	 	 	1.014	 	 	 	0.943	 	 	 	0.971	 
	50
	 	 	1.015	 	 	 	0.940	 	 	 	0.970	 
	51
	 	 	1.017	 	 	 	0.936	 	 	 	0.968	 
	52
	 	 	1.019	 	 	 	0.932	 	 	 	0.966	 
	53
	 	 	1.021	 	 	 	0.928	 	 	 	0.964	 
	54
	 	 	1.023	 	 	 	0.924	 	 	 	0.962	 
	55
	 	 	1.025	 	 	 	0.920	 	 	 	0.960	 
	56
	 	 	1.030	 	 	 	0.914	 	 	 	0.957	 
	57
	 	 	1.035	 	 	 	0.908	 	 	 	0.954	 
	58
	 	 	1.040	 	 	 	0.902	 	 	 	0.951	 
	59
	 	 	1.045	 	 	 	0.896	 	 	 	0.948	 
	60
	 	 	1.050	 	 	 	0.890	 	 	 	0.945	 
	61
	 	 	1.060	 	 	 	0.884	 	 	 	0.942	 
	62
	 	 	1.070	 	 	 	0.878	 	 	 	0.939	 
	63
	 	 	1.080	 	 	 	0.872	 	 	 	0.936	 
	64
	 	 	1.090	 	 	 	0.866	 	 	 	0.933	 
	65
	 	 	1.100	 	 	 	0.860	 	 	 	0.930	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	FACTOR B
	 	 	 	 	 	 	0.5	%	 	 	0.3	%
	MAXIMUM
	 	 	 	 	 	 	99	%	 	 	99	%

THE ABOVE FACTORS FOR OPTIONS 2 AND 3 ASSUME THE MEMBER AND THE CA ARE THE SAME AGE. WHEN THE AGES
DIFFER:

ADD FACTOR B FOR EACH YEAR THE CA IS OLDER THAN THE MEMBER 

SUBTRACT FACTOR B FOR
EACH YEAR THE CA IS YOUNGER THAN THE MEMBER

OPTION 1
IS A LIFE ANNUITY, OPTION 2 IS A 100% J&S w/ 10 YEAR CERTAIN, OPTION 3 IS A 50% J&S

 

 

 

Appendix C

CONVERSION FACTORS WHERE NORMAL FORM = 12X

1998 GBB89 ASSUMPTIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	OPTION 1	 	 	OPTION 2	 	 	OPTION 3	 
	66
	 	 	1.120	 	 	 	0.853	 	 	 	0.926	 
	67
	 	 	1.140	 	 	 	0.846	 	 	 	0.922	 
	68
	 	 	1.160	 	 	 	0.839	 	 	 	0.918	 
	69
	 	 	1.180	 	 	 	0.832	 	 	 	0.914	 
	70
	 	 	1.200	 	 	 	0.825	 	 	 	0.910	 
	71
	 	 	1.224	 	 	 	0.815	 	 	 	0.906	 
	72
	 	 	1.248	 	 	 	0.805	 	 	 	0.902	 
	73
	 	 	1.272	 	 	 	0.795	 	 	 	0.898	 
	74
	 	 	1.296	 	 	 	0.785	 	 	 	0.894	 
	75
	 	 	1.320	 	 	 	0.775	 	 	 	0.890	 
	76
	 	 	1.368	 	 	 	0.764	 	 	 	0.887	 
	77
	 	 	1.416	 	 	 	0.753	 	 	 	0.884	 
	78
	 	 	1.464	 	 	 	0.742	 	 	 	0.881	 
	79
	 	 	1.512	 	 	 	0.731	 	 	 	0.878	 
	80
	 	 	1.560	 	 	 	0.720	 	 	 	0.875	 
	81
	 	 	1.628	 	 	 	0.706	 	 	 	0.872	 
	82
	 	 	1.696	 	 	 	0.692	 	 	 	0.869	 
	83
	 	 	1.764	 	 	 	0.678	 	 	 	0.866	 
	84
	 	 	1.832	 	 	 	0.664	 	 	 	0.863	 
	85
	 	 	1.900	 	 	 	0.650	 	 	 	0.860	 
	86
	 	 	2.000	 	 	 	0.633	 	 	 	0.858	 
	87
	 	 	2.100	 	 	 	0.616	 	 	 	0.856	 
	88
	 	 	2.200	 	 	 	0.599	 	 	 	0.854	 
	89
	 	 	2.300	 	 	 	0.582	 	 	 	0.852	 
	90
	 	 	2.400	 	 	 	0.565	 	 	 	0.850	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	FACTOR B
	 	 	 	 	 	 	0.5	%	 	 	0.3	%
	MAXIMUM
	 	 	 	 	 	 	99	%	 	 	99	%

THE ABOVE FACTORS FOR OPTIONS 2 AND 3 ASSUME THE MEMBER AND THE CA ARE THE SAME AGE. WHEN THE AGES
DIFFER:

ADD FACTOR B FOR EACH YEAR THE CA IS OLDER THAN THE MEMBER 

SUBTRACT FACTOR B FOR
EACH YEAR THE CA IS YOUNGER THAN THE MEMBER

OPTION 1 IS A LIFE ANNUITY,
OPTION 2 IS A 100% J&S w/ 10 YEAR CERTAIN, OPTION 3 IS A 50% J&S

 

 

 

Appendix D

CONVERSION FACTORS WHERE NORMAL FORM = ST LIFE

1998 GBB89 ASSUMPTIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	OPTION 1	 	 	OPTION 2	 	 	OPTION 3	 
	19
	 	 	0.999	%	 	 	0.990	%	 	 	0.990	%
	20
	 	 	0.999	 	 	 	0.990	 	 	 	0.990	 
	21
	 	 	0.999	 	 	 	0.989	 	 	 	0.990	 
	22
	 	 	0.999	 	 	 	0.988	 	 	 	0.990	 
	23
	 	 	0.999	 	 	 	0.987	 	 	 	0.990	 
	24
	 	 	0.999	 	 	 	0.986	 	 	 	0.990	 
	25
	 	 	0.999	 	 	 	0.985	 	 	 	0.990	 
	26
	 	 	0.999	 	 	 	0.984	 	 	 	0.990	 
	27
	 	 	0.999	 	 	 	0.983	 	 	 	0.990	 
	28
	 	 	0.999	 	 	 	0.982	 	 	 	0.990	 
	29
	 	 	0.999	 	 	 	0.981	 	 	 	0.990	 
	30
	 	 	0.998	 	 	 	0.980	 	 	 	0.990	 
	31
	 	 	0.998	 	 	 	0.979	 	 	 	0.989	 
	32
	 	 	0.998	 	 	 	0.978	 	 	 	0.989	 
	33
	 	 	0.998	 	 	 	0.977	 	 	 	0.988	 
	34
	 	 	0.998	 	 	 	0.976	 	 	 	0.987	 
	35
	 	 	0.998	 	 	 	0.975	 	 	 	0.987	 
	36
	 	 	0.998	 	 	 	0.973	 	 	 	0.986	 
	37
	 	 	0.998	 	 	 	0.971	 	 	 	0.985	 
	38
	 	 	0.998	 	 	 	0.969	 	 	 	0.984	 
	39
	 	 	0.998	 	 	 	0.967	 	 	 	0.983	 
	40
	 	 	0.997	 	 	 	0.965	 	 	 	0.982	 
	41
	 	 	0.997	 	 	 	0.963	 	 	 	0.981	 
	42
	 	 	0.997	 	 	 	0.961	 	 	 	0.980	 
	43
	 	 	0.997	 	 	 	0.959	 	 	 	0.979	 
	44
	 	 	0.997	 	 	 	0.957	 	 	 	0.977	 
	45
	 	 	0.996	 	 	 	0.955	 	 	 	0.975	 
	46
	 	 	0.996	 	 	 	0.952	 	 	 	0.974	 
	47
	 	 	0.995	 	 	 	0.949	 	 	 	0.973	 
	48
	 	 	0.995	 	 	 	0.946	 	 	 	0.972	 
	49
	 	 	0.994	 	 	 	0.943	 	 	 	0.971	 
	50
	 	 	0.993	 	 	 	0.940	 	 	 	0.970	 
	51
	 	 	0.992	 	 	 	0.936	 	 	 	0.968	 
	52
	 	 	0.991	 	 	 	0.932	 	 	 	0.966	 
	53
	 	 	0.990	 	 	 	0.928	 	 	 	0.964	 
	54
	 	 	0.989	 	 	 	0.924	 	 	 	0.962	 
	55
	 	 	0.988	 	 	 	0.920	 	 	 	0.960	 
	56
	 	 	0.985	 	 	 	0.914	 	 	 	0.957	 
	57
	 	 	0.982	 	 	 	0.908	 	 	 	0.954	 
	58
	 	 	0.979	 	 	 	0.902	 	 	 	0.951	 
	59
	 	 	0.977	 	 	 	0.896	 	 	 	0.948	 
	60
	 	 	0.974	 	 	 	0.890	 	 	 	0.945	 
	61
	 	 	0.969	 	 	 	0.884	 	 	 	0.942	 
	62
	 	 	0.964	 	 	 	0.878	 	 	 	0.939	 
	63
	 	 	0.960	 	 	 	0.872	 	 	 	0.936	 
	64
	 	 	0.955	 	 	 	0.866	 	 	 	0.933	 
	65
	 	 	0.951	 	 	 	0.860	 	 	 	0.930	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	FACTOR B
	 	 	 	 	 	 	0.5	%	 	 	0.3	%
	MAXIMUM
	 	 	 	 	 	 	99	%	 	 	99	%

THE ABOVE FACTORS FOR OPTIONS 2 AND 3 ASSUME THE MEMBER AND THE CA ARE THE SAME AGE. WHEN THE AGES
DIFFER:

ADD FACTOR B FOR EACH YEAR THE CA IS OLDER THAN THE MEMBER 

SUBTRACT FACTOR B FOR
EACH YEAR THE CA IS YOUNGER THAN THE MEMBER

OPTION 1
IS A 10 YEAR CERTAIN ANNUITY, OPTION 2 IS A 100% J&S w/ 10 YEAR CERTAIN, OPTION 3 IS A 50% J&S

 

 

 

Appendix D

CONVERSION FACTORS WHERE NORMAL FORM = ST LIFE

1998  GBB89 ASSUMPTIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	OPTION 1	 	 	OPTION 2	 	 	OPTION 3	 
	66
	 	 	0.943	 	 	 	0.853	 	 	 	0.926	 
	67
	 	 	0.935	 	 	 	0.846	 	 	 	0.922	 
	68
	 	 	0.927	 	 	 	0.839	 	 	 	0.918	 
	69
	 	 	0.919	 	 	 	0.832	 	 	 	0.914	 
	70
	 	 	0.912	 	 	 	0.825	 	 	 	0.910	 
	71
	 	 	0.899	 	 	 	0.815	 	 	 	0.906	 
	72
	 	 	0.887	 	 	 	0.805	 	 	 	0.902	 
	73
	 	 	0.876	 	 	 	0.795	 	 	 	0.898	 
	74
	 	 	0.864	 	 	 	0.785	 	 	 	0.894	 
	75
	 	 	0.853	 	 	 	0.775	 	 	 	0.890	 
	76
	 	 	0.836	 	 	 	0.764	 	 	 	0.887	 
	77
	 	 	0.820	 	 	 	0.753	 	 	 	0.884	 
	78
	 	 	0.804	 	 	 	0.742	 	 	 	0.881	 
	79
	 	 	0.789	 	 	 	0.731	 	 	 	0.878	 
	80
	 	 	0.774	 	 	 	0.720	 	 	 	0.875	 
	81
	 	 	0.752	 	 	 	0.706	 	 	 	0.872	 
	82
	 	 	0.732	 	 	 	0.692	 	 	 	0.869	 
	83
	 	 	0.713	 	 	 	0.678	 	 	 	0.866	 
	84
	 	 	0.694	 	 	 	0.664	 	 	 	0.863	 
	85
	 	 	0.677	 	 	 	0.650	 	 	 	0.860	 
	86
	 	 	0.654	 	 	 	0.633	 	 	 	0.858	 
	87
	 	 	0.633	 	 	 	0.616	 	 	 	0.856	 
	88
	 	 	0.612	 	 	 	0.599	 	 	 	0.854	 
	89
	 	 	0.593	 	 	 	0.582	 	 	 	0.852	 
	90
	 	 	0.576	 	 	 	0.565	 	 	 	0.850	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	FACTOR B
	 	 	 	 	 	 	0.5	%	 	 	0.3	%
	MAXIMUM
	 	 	 	 	 	 	99	%	 	 	99	%

THE
 ABOVE FACTORS FOR OPTIONS 2 AND 3 ASSUME THE MEMBER AND THE CA ARE THE SAME AGE. WHEN
THE AGES DIFFER:

ADD FACTOR B FOR EACH YEAR THE CA IS OLDER THAN THE MEMBER 

SUBTRACT FACTOR B FOR EACH YEAR THE CA IS YOUNGER THAN THE MEMBER

OPTION 1
IS A 10 YEAR CERTAIN ANNUITY, OPTION 2 IS A 100% J&S w/ 10 YEAR CERTAIN, OPTION 3 IS A 50%
J&S

 

 

 

Table I (A)

APPENDIX E

ACTUARIAL EQUIVALENT EARLY RETIREMENT FACTORS @ AGE 65

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	0	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	10	 	 	11	 
	20
	 	 	0.004	 	 	 	0.004	 	 	 	0.004	 	 	 	0.004	 	 	 	0.004	 	 	 	0.004	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 
	21
	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 
	22
	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 
	23
	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 
	24
	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25
	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.010	 	 	 	0.010	 	 	 	0.010	 	 	 	0.010	 	 	 	0.010	 	 	 	0.010	 
	26
	 	 	0.010	 	 	 	0.011	 	 	 	0.012	 	 	 	0.013	 	 	 	0.013	 	 	 	0.014	 	 	 	0.015	 	 	 	0.016	 	 	 	0.017	 	 	 	0.018	 	 	 	0.018	 	 	 	0.019	 
	27
	 	 	0.020	 	 	 	0.021	 	 	 	0.022	 	 	 	0.023	 	 	 	0.023	 	 	 	0.024	 	 	 	0.025	 	 	 	0.026	 	 	 	0.027	 	 	 	0.028	 	 	 	0.028	 	 	 	0.029	 
	28
	 	 	0.030	 	 	 	0.031	 	 	 	0.032	 	 	 	0.033	 	 	 	0.033	 	 	 	0.034	 	 	 	0.035	 	 	 	0.036	 	 	 	0.037	 	 	 	0.038	 	 	 	0.038	 	 	 	0.039	 
	29
	 	 	0.040	 	 	 	0.041	 	 	 	0.042	 	 	 	0.043	 	 	 	0.043	 	 	 	0.044	 	 	 	0.045	 	 	 	0.046	 	 	 	0.047	 	 	 	0.048	 	 	 	0.048	 	 	 	0.049	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30
	 	 	0.050	 	 	 	0.051	 	 	 	0.052	 	 	 	0.053	 	 	 	0.053	 	 	 	0.054	 	 	 	0.055	 	 	 	0.056	 	 	 	0.057	 	 	 	0.058	 	 	 	0.058	 	 	 	0.059	 
	31
	 	 	0.060	 	 	 	0.061	 	 	 	0.062	 	 	 	0.063	 	 	 	0.063	 	 	 	0.064	 	 	 	0.065	 	 	 	0.066	 	 	 	0.067	 	 	 	0.068	 	 	 	0.068	 	 	 	0.069	 
	32
	 	 	0.070	 	 	 	0.071	 	 	 	0.072	 	 	 	0.073	 	 	 	0.073	 	 	 	0.074	 	 	 	0.075	 	 	 	0.076	 	 	 	0.077	 	 	 	0.078	 	 	 	0.078	 	 	 	0.079	 
	33
	 	 	0.080	 	 	 	0.081	 	 	 	0.082	 	 	 	0.083	 	 	 	0.083	 	 	 	0.084	 	 	 	0.085	 	 	 	0.086	 	 	 	0.087	 	 	 	0.088	 	 	 	0.088	 	 	 	0.089	 
	34
	 	 	0.090	 	 	 	0.091	 	 	 	0.092	 	 	 	0.093	 	 	 	0.093	 	 	 	0.094	 	 	 	0.095	 	 	 	0.096	 	 	 	0.097	 	 	 	0.098	 	 	 	0.098	 	 	 	0.099	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	35
	 	 	0.100	 	 	 	0.101	 	 	 	0.102	 	 	 	0.103	 	 	 	0.103	 	 	 	0.104	 	 	 	0.105	 	 	 	0.106	 	 	 	0.107	 	 	 	0.108	 	 	 	0.108	 	 	 	0.109	 
	36
	 	 	0.110	 	 	 	0.111	 	 	 	0.112	 	 	 	0.113	 	 	 	0.113	 	 	 	0.114	 	 	 	0.115	 	 	 	0.116	 	 	 	0.117	 	 	 	0.118	 	 	 	0.118	 	 	 	0.119	 
	37
	 	 	0.120	 	 	 	0.121	 	 	 	0.122	 	 	 	0.123	 	 	 	0.123	 	 	 	0.124	 	 	 	0.125	 	 	 	0.126	 	 	 	0.127	 	 	 	0.128	 	 	 	0.128	 	 	 	0.129	 
	38
	 	 	0.130	 	 	 	0.131	 	 	 	0.132	 	 	 	0.133	 	 	 	0.133	 	 	 	0.134	 	 	 	0.135	 	 	 	0.136	 	 	 	0.137	 	 	 	0.138	 	 	 	0.138	 	 	 	0.139	 
	39
	 	 	0.140	 	 	 	0.141	 	 	 	0.142	 	 	 	0.143	 	 	 	0.143	 	 	 	0.144	 	 	 	0.145	 	 	 	0.146	 	 	 	0.147	 	 	 	0.148	 	 	 	0.148	 	 	 	0.149	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	40
	 	 	0.150	 	 	 	0.151	 	 	 	0.152	 	 	 	0.153	 	 	 	0.153	 	 	 	0.154	 	 	 	0.155	 	 	 	0.156	 	 	 	0.157	 	 	 	0.158	 	 	 	0.158	 	 	 	0.159	 
	41
	 	 	0.160	 	 	 	0.161	 	 	 	0.162	 	 	 	0.163	 	 	 	0.163	 	 	 	0.164	 	 	 	0.165	 	 	 	0.166	 	 	 	0.167	 	 	 	0.168	 	 	 	0.168	 	 	 	0.169	 
	42
	 	 	0.170	 	 	 	0.171	 	 	 	0.172	 	 	 	0.173	 	 	 	0.173	 	 	 	0.174	 	 	 	0.175	 	 	 	0.176	 	 	 	0.177	 	 	 	0.178	 	 	 	0.178	 	 	 	0.179	 
	43
	 	 	0.180	 	 	 	0.181	 	 	 	0.182	 	 	 	0.183	 	 	 	0.183	 	 	 	0.184	 	 	 	0.185	 	 	 	0.186	 	 	 	0.187	 	 	 	0.188	 	 	 	0.188	 	 	 	0.189	 
	44
	 	 	0.190	 	 	 	0.191	 	 	 	0.192	 	 	 	0.193	 	 	 	0.193	 	 	 	0.194	 	 	 	0.195	 	 	 	0.196	 	 	 	0.197	 	 	 	0.198	 	 	 	0.198	 	 	 	0.199	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45
	 	 	0.200	 	 	 	0.203	 	 	 	0.205	 	 	 	0.208	 	 	 	0.210	 	 	 	0.213	 	 	 	0.215	 	 	 	0.218	 	 	 	0.220	 	 	 	0.223	 	 	 	0.225	 	 	 	0.228	 
	46
	 	 	0.230	 	 	 	0.233	 	 	 	0.235	 	 	 	0.238	 	 	 	0.240	 	 	 	0.243	 	 	 	0.245	 	 	 	0.248	 	 	 	0.250	 	 	 	0.253	 	 	 	0.255	 	 	 	0.258	 
	47
	 	 	0.260	 	 	 	0.263	 	 	 	0.265	 	 	 	0.268	 	 	 	0.270	 	 	 	0.273	 	 	 	0.275	 	 	 	0.278	 	 	 	0.280	 	 	 	0.283	 	 	 	0.285	 	 	 	0.288	 
	48
	 	 	0.290	 	 	 	0.293	 	 	 	0.295	 	 	 	0.298	 	 	 	0.300	 	 	 	0.303	 	 	 	0.305	 	 	 	0.308	 	 	 	0.310	 	 	 	0.313	 	 	 	0.315	 	 	 	0.318	 
	49
	 	 	0.320	 	 	 	0.323	 	 	 	0.325	 	 	 	0.328	 	 	 	0.330	 	 	 	0.333	 	 	 	0.335	 	 	 	0.338	 	 	 	0.340	 	 	 	0.343	 	 	 	0.345	 	 	 	0.348	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50
	 	 	0.350	 	 	 	0.353	 	 	 	0.355	 	 	 	0.358	 	 	 	0.360	 	 	 	0.363	 	 	 	0.365	 	 	 	0.368	 	 	 	0.370	 	 	 	0.373	 	 	 	0.375	 	 	 	0.378	 
	51
	 	 	0.380	 	 	 	0.383	 	 	 	0.385	 	 	 	0.388	 	 	 	0.390	 	 	 	0.393	 	 	 	0.395	 	 	 	0.398	 	 	 	0.400	 	 	 	0.403	 	 	 	0.405	 	 	 	0.408	 
	52
	 	 	0.410	 	 	 	0.413	 	 	 	0.415	 	 	 	0.418	 	 	 	0.420	 	 	 	0.423	 	 	 	0.425	 	 	 	0.428	 	 	 	0.430	 	 	 	0.433	 	 	 	0.435	 	 	 	0.438	 
	53
	 	 	0.440	 	 	 	0.443	 	 	 	0.445	 	 	 	0.448	 	 	 	0.450	 	 	 	0.453	 	 	 	0.455	 	 	 	0.458	 	 	 	0.460	 	 	 	0.463	 	 	 	0.465	 	 	 	0.468	 
	54
	 	 	0.470	 	 	 	0.473	 	 	 	0.475	 	 	 	0.478	 	 	 	0.480	 	 	 	0.483	 	 	 	0.485	 	 	 	0.488	 	 	 	0.490	 	 	 	0.493	 	 	 	0.495	 	 	 	0.498	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55
	 	 	0.500	 	 	 	0.503	 	 	 	0.507	 	 	 	0.510	 	 	 	0.513	 	 	 	0.517	 	 	 	0.520	 	 	 	0.523	 	 	 	0.527	 	 	 	0.530	 	 	 	0.533	 	 	 	0.537	 
	56
	 	 	0.540	 	 	 	0.543	 	 	 	0.547	 	 	 	0.550	 	 	 	0.553	 	 	 	0.557	 	 	 	0.560	 	 	 	0.563	 	 	 	0.567	 	 	 	0.570	 	 	 	0.573	 	 	 	0.577	 
	57
	 	 	0.580	 	 	 	0.583	 	 	 	0.587	 	 	 	0.590	 	 	 	0.593	 	 	 	0.597	 	 	 	0.600	 	 	 	0.603	 	 	 	0.607	 	 	 	0.610	 	 	 	0.613	 	 	 	0.617	 
	58
	 	 	0.620	 	 	 	0.623	 	 	 	0.627	 	 	 	0.630	 	 	 	0.633	 	 	 	0.637	 	 	 	0.640	 	 	 	0.643	 	 	 	0.647	 	 	 	0.650	 	 	 	0.653	 	 	 	0.657	 
	59
	 	 	0.660	 	 	 	0.663	 	 	 	0.667	 	 	 	0.670	 	 	 	0.673	 	 	 	0.677	 	 	 	0.680	 	 	 	0.683	 	 	 	0.687	 	 	 	0.690	 	 	 	0.693	 	 	 	0.697	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	60
	 	 	0.700	 	 	 	0.705	 	 	 	0.710	 	 	 	0.715	 	 	 	0.720	 	 	 	0.725	 	 	 	0.730	 	 	 	0.735	 	 	 	0.740	 	 	 	0.745	 	 	 	0.750	 	 	 	0.755	 
	61
	 	 	0.760	 	 	 	0.765	 	 	 	0.770	 	 	 	0.775	 	 	 	0.780	 	 	 	0.785	 	 	 	0.790	 	 	 	0.795	 	 	 	0.800	 	 	 	0.805	 	 	 	0.810	 	 	 	0.815	 
	62
	 	 	0.820	 	 	 	0.825	 	 	 	0.830	 	 	 	0.835	 	 	 	0.840	 	 	 	0.845	 	 	 	0.850	 	 	 	0.855	 	 	 	0.860	 	 	 	0.865	 	 	 	0.870	 	 	 	0.875	 
	63
	 	 	0.880	 	 	 	0.885	 	 	 	0.890	 	 	 	0.895	 	 	 	0.900	 	 	 	0.905	 	 	 	0.910	 	 	 	0.915	 	 	 	0.920	 	 	 	0.925	 	 	 	0.930	 	 	 	0.935	 
	64
	 	 	0.940	 	 	 	0.945	 	 	 	0.950	 	 	 	0.955	 	 	 	0.960	 	 	 	0.965	 	 	 	0.970	 	 	 	0.975	 	 	 	0.980	 	 	 	0.985	 	 	 	0.990	 	 	 	0.995	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

Table I (B)

APPENDIX E

3% EARLY RETIREMENT FACTORS @ AGE 65

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	0	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	10	 	 	11	 
	20
	 	 	0.100	 	 	 	0.101	 	 	 	0.102	 	 	 	0.103	 	 	 	0.103	 	 	 	0.104	 	 	 	0.105	 	 	 	0.106	 	 	 	0.107	 	 	 	0.108	 	 	 	0.108	 	 	 	0.109	 
	21
	 	 	0.110	 	 	 	0.111	 	 	 	0.112	 	 	 	0.113	 	 	 	0.113	 	 	 	0.114	 	 	 	0.115	 	 	 	0.116	 	 	 	0.117	 	 	 	0.118	 	 	 	0.118	 	 	 	0.119	 
	22
	 	 	0.120	 	 	 	0.121	 	 	 	0.122	 	 	 	0.123	 	 	 	0.123	 	 	 	0.124	 	 	 	0.125	 	 	 	0.126	 	 	 	0.127	 	 	 	0.128	 	 	 	0.128	 	 	 	0.129	 
	23
	 	 	0.130	 	 	 	0.131	 	 	 	0.132	 	 	 	0.133	 	 	 	0.133	 	 	 	0.134	 	 	 	0.135	 	 	 	0.136	 	 	 	0.137	 	 	 	0.138	 	 	 	0.138	 	 	 	0.139	 
	24
	 	 	0.140	 	 	 	0.141	 	 	 	0.142	 	 	 	0.143	 	 	 	0.143	 	 	 	0.144	 	 	 	0.145	 	 	 	0.146	 	 	 	0.147	 	 	 	0.148	 	 	 	0.148	 	 	 	0.149	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25
	 	 	0.150	 	 	 	0.151	 	 	 	0.152	 	 	 	0.153	 	 	 	0.153	 	 	 	0.154	 	 	 	0.155	 	 	 	0.156	 	 	 	0.157	 	 	 	0.158	 	 	 	0.158	 	 	 	0.159	 
	26
	 	 	0.160	 	 	 	0.161	 	 	 	0.162	 	 	 	0.163	 	 	 	0.163	 	 	 	0.164	 	 	 	0.165	 	 	 	0.166	 	 	 	0.167	 	 	 	0.168	 	 	 	0.168	 	 	 	0.169	 
	27
	 	 	0.170	 	 	 	0.171	 	 	 	0.172	 	 	 	0.173	 	 	 	0.173	 	 	 	0.174	 	 	 	0.175	 	 	 	0.176	 	 	 	0.177	 	 	 	0.178	 	 	 	0.178	 	 	 	0.179	 
	28
	 	 	0.180	 	 	 	0.181	 	 	 	0.182	 	 	 	0.183	 	 	 	0.183	 	 	 	0.184	 	 	 	0.185	 	 	 	0.186	 	 	 	0.187	 	 	 	0.188	 	 	 	0.188	 	 	 	0.189	 
	29
	 	 	0.190	 	 	 	0.191	 	 	 	0.192	 	 	 	0.193	 	 	 	0.193	 	 	 	0.194	 	 	 	0.195	 	 	 	0.196	 	 	 	0.197	 	 	 	0.198	 	 	 	0.198	 	 	 	0.199	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30
	 	 	0.200	 	 	 	0.201	 	 	 	0.202	 	 	 	0.203	 	 	 	0.203	 	 	 	0.204	 	 	 	0.205	 	 	 	0.206	 	 	 	0.207	 	 	 	0.208	 	 	 	0.208	 	 	 	0.209	 
	31
	 	 	0.210	 	 	 	0.211	 	 	 	0.212	 	 	 	0.213	 	 	 	0.213	 	 	 	0.214	 	 	 	0.215	 	 	 	0.216	 	 	 	0.217	 	 	 	0.218	 	 	 	0.218	 	 	 	0.219	 
	32
	 	 	0.220	 	 	 	0.221	 	 	 	0.222	 	 	 	0.223	 	 	 	0.223	 	 	 	0.224	 	 	 	0.225	 	 	 	0.226	 	 	 	0.227	 	 	 	0.228	 	 	 	0.228	 	 	 	0.229	 
	33
	 	 	0.230	 	 	 	0.231	 	 	 	0.232	 	 	 	0.233	 	 	 	0.233	 	 	 	0.234	 	 	 	0.235	 	 	 	0.236	 	 	 	0.237	 	 	 	0.238	 	 	 	0.238	 	 	 	0.239	 
	34
	 	 	0.240	 	 	 	0.241	 	 	 	0.242	 	 	 	0.243	 	 	 	0.243	 	 	 	0.244	 	 	 	0.245	 	 	 	0.246	 	 	 	0.247	 	 	 	0.248	 	 	 	0.248	 	 	 	0.249	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	35
	 	 	0.250	 	 	 	0.251	 	 	 	0.252	 	 	 	0.253	 	 	 	0.253	 	 	 	0.254	 	 	 	0.255	 	 	 	0.256	 	 	 	0.257	 	 	 	0.258	 	 	 	0.258	 	 	 	0.259	 
	36
	 	 	0.260	 	 	 	0.261	 	 	 	0.262	 	 	 	0.263	 	 	 	0.263	 	 	 	0.264	 	 	 	0.265	 	 	 	0.266	 	 	 	0.267	 	 	 	0.268	 	 	 	0.268	 	 	 	0.269	 
	37
	 	 	0.270	 	 	 	0.271	 	 	 	0.272	 	 	 	0.273	 	 	 	0.273	 	 	 	0.274	 	 	 	0.275	 	 	 	0.276	 	 	 	0.277	 	 	 	0.278	 	 	 	0.278	 	 	 	0.279	 
	38
	 	 	0.280	 	 	 	0.281	 	 	 	0.282	 	 	 	0.283	 	 	 	0.283	 	 	 	0.284	 	 	 	0.285	 	 	 	0.286	 	 	 	0.287	 	 	 	0.288	 	 	 	0.288	 	 	 	0.289	 
	39
	 	 	0.290	 	 	 	0.291	 	 	 	0.292	 	 	 	0.293	 	 	 	0.293	 	 	 	0.294	 	 	 	0.295	 	 	 	0.296	 	 	 	0.297	 	 	 	0.298	 	 	 	0.298	 	 	 	0.299	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	40
	 	 	0.300	 	 	 	0.302	 	 	 	0.303	 	 	 	0.305	 	 	 	0.307	 	 	 	0.308	 	 	 	0.310	 	 	 	0.312	 	 	 	0.313	 	 	 	0.315	 	 	 	0.317	 	 	 	0.318	 
	41
	 	 	0.320	 	 	 	0.322	 	 	 	0.323	 	 	 	0.325	 	 	 	0.327	 	 	 	0.328	 	 	 	0.330	 	 	 	0.332	 	 	 	0.333	 	 	 	0.335	 	 	 	0.337	 	 	 	0.338	 
	42
	 	 	0.340	 	 	 	0.342	 	 	 	0.343	 	 	 	0.345	 	 	 	0.347	 	 	 	0.348	 	 	 	0.350	 	 	 	0.352	 	 	 	0.353	 	 	 	0.355	 	 	 	0.357	 	 	 	0.358	 
	43
	 	 	0.360	 	 	 	0.362	 	 	 	0.363	 	 	 	0.365	 	 	 	0.367	 	 	 	0.368	 	 	 	0.370	 	 	 	0.372	 	 	 	0.373	 	 	 	0.375	 	 	 	0.377	 	 	 	0.378	 
	44
	 	 	0.380	 	 	 	0.382	 	 	 	0.383	 	 	 	0.385	 	 	 	0.387	 	 	 	0.388	 	 	 	0.390	 	 	 	0.392	 	 	 	0.393	 	 	 	0.395	 	 	 	0.397	 	 	 	0.398	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45
	 	 	0.400	 	 	 	0.402	 	 	 	0.405	 	 	 	0.408	 	 	 	0.410	 	 	 	0.413	 	 	 	0.415	 	 	 	0.417	 	 	 	0.420	 	 	 	0.423	 	 	 	0.425	 	 	 	0.428	 
	46
	 	 	0.430	 	 	 	0.432	 	 	 	0.435	 	 	 	0.438	 	 	 	0.440	 	 	 	0.443	 	 	 	0.445	 	 	 	0.447	 	 	 	0.450	 	 	 	0.453	 	 	 	0.455	 	 	 	0.458	 
	47
	 	 	0.460	 	 	 	0.462	 	 	 	0.465	 	 	 	0.468	 	 	 	0.470	 	 	 	0.473	 	 	 	0.475	 	 	 	0.477	 	 	 	0.480	 	 	 	0.483	 	 	 	0.485	 	 	 	0.488	 
	48
	 	 	0.490	 	 	 	0.492	 	 	 	0.495	 	 	 	0.498	 	 	 	0.500	 	 	 	0.503	 	 	 	0.505	 	 	 	0.507	 	 	 	0.510	 	 	 	0.513	 	 	 	0.515	 	 	 	0.518	 
	49
	 	 	0.520	 	 	 	0.522	 	 	 	0.525	 	 	 	0.528	 	 	 	0.530	 	 	 	0.533	 	 	 	0.535	 	 	 	0.537	 	 	 	0.540	 	 	 	0.543	 	 	 	0.545	 	 	 	0.548	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50
	 	 	0.550	 	 	 	0.552	 	 	 	0.555	 	 	 	0.558	 	 	 	0.560	 	 	 	0.563	 	 	 	0.565	 	 	 	0.567	 	 	 	0.570	 	 	 	0.573	 	 	 	0.575	 	 	 	0.578	 
	51
	 	 	0.580	 	 	 	0.582	 	 	 	0.585	 	 	 	0.588	 	 	 	0.590	 	 	 	0.593	 	 	 	0.595	 	 	 	0.597	 	 	 	0.600	 	 	 	0.603	 	 	 	0.605	 	 	 	0.608	 
	52
	 	 	0.610	 	 	 	0.612	 	 	 	0.615	 	 	 	0.618	 	 	 	0.620	 	 	 	0.623	 	 	 	0.625	 	 	 	0.627	 	 	 	0.630	 	 	 	0.633	 	 	 	0.635	 	 	 	0.638	 
	53
	 	 	0.640	 	 	 	0.642	 	 	 	0.645	 	 	 	0.648	 	 	 	0.650	 	 	 	0.653	 	 	 	0.655	 	 	 	0.657	 	 	 	0.660	 	 	 	0.663	 	 	 	0.665	 	 	 	0.668	 
	54
	 	 	0.670	 	 	 	0.672	 	 	 	0.675	 	 	 	0.678	 	 	 	0.680	 	 	 	0.683	 	 	 	0.685	 	 	 	0.687	 	 	 	0.690	 	 	 	0.693	 	 	 	0.695	 	 	 	0.698	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55
	 	 	0.700	 	 	 	0.702	 	 	 	0.705	 	 	 	0.708	 	 	 	0.710	 	 	 	0.713	 	 	 	0.715	 	 	 	0.717	 	 	 	0.720	 	 	 	0.723	 	 	 	0.725	 	 	 	0.728	 
	56
	 	 	0.730	 	 	 	0.732	 	 	 	0.735	 	 	 	0.738	 	 	 	0.740	 	 	 	0.743	 	 	 	0.745	 	 	 	0.747	 	 	 	0.750	 	 	 	0.753	 	 	 	0.755	 	 	 	0.758	 
	57
	 	 	0.760	 	 	 	0.762	 	 	 	0.765	 	 	 	0.768	 	 	 	0.770	 	 	 	0.773	 	 	 	0.775	 	 	 	0.777	 	 	 	0.780	 	 	 	0.783	 	 	 	0.785	 	 	 	0.788	 
	58
	 	 	0.790	 	 	 	0.792	 	 	 	0.795	 	 	 	0.798	 	 	 	0.800	 	 	 	0.803	 	 	 	0.805	 	 	 	0.807	 	 	 	0.810	 	 	 	0.813	 	 	 	0.815	 	 	 	0.818	 
	59
	 	 	0.820	 	 	 	0.822	 	 	 	0.825	 	 	 	0.828	 	 	 	0.830	 	 	 	0.833	 	 	 	0.835	 	 	 	0.837	 	 	 	0.840	 	 	 	0.843	 	 	 	0.845	 	 	 	0.848	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	60
	 	 	0.850	 	 	 	0.852	 	 	 	0.855	 	 	 	0.858	 	 	 	0.860	 	 	 	0.863	 	 	 	0.865	 	 	 	0.867	 	 	 	0.870	 	 	 	0.873	 	 	 	0.875	 	 	 	0.878	 
	61
	 	 	0.880	 	 	 	0.882	 	 	 	0.885	 	 	 	0.888	 	 	 	0.890	 	 	 	0.893	 	 	 	0.895	 	 	 	0.897	 	 	 	0.900	 	 	 	0.903	 	 	 	0.905	 	 	 	0.908	 
	62
	 	 	0.910	 	 	 	0.912	 	 	 	0.915	 	 	 	0.918	 	 	 	0.920	 	 	 	0.923	 	 	 	0.925	 	 	 	0.927	 	 	 	0.930	 	 	 	0.933	 	 	 	0.935	 	 	 	0.938	 
	63
	 	 	0.940	 	 	 	0.942	 	 	 	0.945	 	 	 	0.948	 	 	 	0.950	 	 	 	0.953	 	 	 	0.955	 	 	 	0.957	 	 	 	0.960	 	 	 	0.963	 	 	 	0.965	 	 	 	0.968	 
	64
	 	 	0.970	 	 	 	0.972	 	 	 	0.975	 	 	 	0.978	 	 	 	0.980	 	 	 	0.983	 	 	 	0.985	 	 	 	0.987	 	 	 	0.990	 	 	 	0.993	 	 	 	0.995	 	 	 	0.998	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

Table I (c)

APPENDIX E

R/70
& R/80 EARLY RETIREMENT FACTORS @ AGE 65

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	0	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	10	 	11	 
	45
	 	 	0.700	 	 	 	0.701	 	 	 	0.703	 	 	 	0.704	 	 	 	0.705	 	 	 	0.706	 	 	 	0.708	 	 	 	0.709	 	 	 	0.710	 	 	 	0.711	 	 	 	0.713	 	 	 	0.714	 
	46
	 	 	0.715	 	 	 	0.716	 	 	 	0.718	 	 	 	0.719	 	 	 	0.720	 	 	 	0.721	 	 	 	0.723	 	 	 	0.724	 	 	 	0.725	 	 	 	0.726	 	 	 	0.728	 	 	 	0.729	 
	47
	 	 	0.730	 	 	 	0.731	 	 	 	0.733	 	 	 	0.734	 	 	 	0.735	 	 	 	0.736	 	 	 	0.738	 	 	 	0.739	 	 	 	0.740	 	 	 	0.741	 	 	 	0.743	 	 	 	0.744	 
	48
	 	 	0.745	 	 	 	0.746	 	 	 	0.748	 	 	 	0.749	 	 	 	0.750	 	 	 	0.751	 	 	 	0.753	 	 	 	0.754	 	 	 	0.755	 	 	 	0.756	 	 	 	0.758	 	 	 	0.759	 
	49
	 	 	0.760	 	 	 	0.761	 	 	 	0.763	 	 	 	0.764	 	 	 	0.765	 	 	 	0.766	 	 	 	0:768	 	 	 	0.769	 	 	 	0.770	 	 	 	0.771	 	 	 	0.773	 	 	 	0.774	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50
	 	 	0.775	 	 	 	0.776	 	 	 	0.778	 	 	 	0.779	 	 	 	0.780	 	 	 	0.781	 	 	 	0.783	 	 	 	0.784	 	 	 	0.785	 	 	 	0.786	 	 	 	0.788	 	 	 	0.789	 
	51
	 	 	0.790	 	 	 	0.791	 	 	 	0.793	 	 	 	0.794	 	 	 	0.795	 	 	 	0.796	 	 	 	0.798	 	 	 	0.799	 	 	 	0.800	 	 	 	0.801	 	 	 	0.803	 	 	 	0.804	 
	52
	 	 	0.805	 	 	 	0.806	 	 	 	0.808	 	 	 	0.809	 	 	 	0.810	 	 	 	0.811	 	 	 	0.813	 	 	 	0.814	 	 	 	0.815	 	 	 	0.816	 	 	 	0.818	 	 	 	0.819	 
	53
	 	 	0.820	 	 	 	0.821	 	 	 	0.823	 	 	 	0.824	 	 	 	0.825	 	 	 	0.826	 	 	 	0.828	 	 	 	0.829	 	 	 	0.830	 	 	 	0.831	 	 	 	0.833	 	 	 	0.834	 
	54
	 	 	0.835	 	 	 	0.836	 	 	 	0.838	 	 	 	0.839	 	 	 	0.840	 	 	 	0.841	 	 	 	0.843	 	 	 	0.844	 	 	 	0.845	 	 	 	0.846	 	 	 	0.848	 	 	 	0.849	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55
	 	 	0.850	 	 	 	0.851	 	 	 	0.853	 	 	 	0.854	 	 	 	0.855	 	 	 	0.856	 	 	 	0.858	 	 	 	0.859	 	 	 	0.860	 	 	 	0.861	 	 	 	0.863	 	 	 	0.864	 
	56
	 	 	0.865	 	 	 	0.866	 	 	 	0.868	 	 	 	0.869	 	 	 	0.870	 	 	 	0.871	 	 	 	0.873	 	 	 	0.874	 	 	 	0.875	 	 	 	0.876	 	 	 	0.878	 	 	 	0.879	 
	57
	 	 	0.880	 	 	 	0.881	 	 	 	0.883	 	 	 	0.884	 	 	 	0.885	 	 	 	0.886	 	 	 	0.888	 	 	 	0.889	 	 	 	0.890	 	 	 	0.891	 	 	 	0.893	 	 	 	0.894	 
	58
	 	 	0.895	 	 	 	0.896	 	 	 	0.898	 	 	 	0.899	 	 	 	0.900	 	 	 	0.901	 	 	 	0.903	 	 	 	0.904	 	 	 	0.905	 	 	 	0.906	 	 	 	0.908	 	 	 	0.909	 
	59
	 	 	0.910	 	 	 	0.911	 	 	 	0.913	 	 	 	0.914	 	 	 	0.915	 	 	 	0.916	 	 	 	0.918	 	 	 	0.919	 	 	 	0.920	 	 	 	0.921	 	 	 	0.923	 	 	 	0.924	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	60
	 	 	0.925	 	 	 	0.926	 	 	 	0.928	 	 	 	0.929	 	 	 	0.930	 	 	 	0.931	 	 	 	0.933	 	 	 	0.934	 	 	 	0.935	 	 	 	0.936	 	 	 	0.938	 	 	 	0.939	 
	61
	 	 	0.940	 	 	 	0.941	 	 	 	0.943	 	 	 	0.944	 	 	 	0.945	 	 	 	0.946	 	 	 	0.948	 	 	 	0.949	 	 	 	0.950	 	 	 	0.951	 	 	 	0.953	 	 	 	0.954	 
	62
	 	 	0.955	 	 	 	0.956	 	 	 	0.958	 	 	 	0.959	 	 	 	0.960	 	 	 	0.961	 	 	 	0.963	 	 	 	0.964	 	 	 	0.965	 	 	 	0.966	 	 	 	0.968	 	 	 	0.969	 
	63
	 	 	0.970	 	 	 	0.971	 	 	 	0.973	 	 	 	0.974	 	 	 	0.975	 	 	 	0.976	 	 	 	0.978	 	 	 	0.979	 	 	 	0.980	 	 	 	0.981	 	 	 	0.983	 	 	 	0.984	 
	64
	 	 	0.985	 	 	 	0.986	 	 	 	0.988	 	 	 	0.989	 	 	 	0.990	 	 	 	0.991	 	 	 	0.993	 	 	 	0.994	 	 	 	0.995	 	 	 	0.996	 	 	 	0.998	 	 	 	0.999	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

 Table II (A)

APPENDIX E

ACTUARIAL EQUIVALENT EARLY RETIREMENT FACTORS UNREDUCED AGE 62

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	0	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	10	 	 	11	 
	20
	 	 	0.080	 	 	 	0.081	 	 	 	0.082	 	 	 	0.083	 	 	 	0.083	 	 	 	0.084	 	 	 	0.085	 	 	 	0.086	 	 	 	0.087	 	 	 	0.088	 	 	 	0.088	 	 	 	0.089	 
	21
	 	 	0.090	 	 	 	0.091	 	 	 	0.092	 	 	 	0.093	 	 	 	0.093	 	 	 	0.094	 	 	 	0.095	 	 	 	0.096	 	 	 	0.097	 	 	 	0.098	 	 	 	0.098	 	 	 	0.099	 
	22
	 	 	0.100	 	 	 	0.101	 	 	 	0.102	 	 	 	0.103	 	 	 	0.103	 	 	 	0.104	 	 	 	0.105	 	 	 	0.106	 	 	 	0.107	 	 	 	0.108	 	 	 	0.108	 	 	 	0.109	 
	23
	 	 	0.110	 	 	 	0.111	 	 	 	0.112	 	 	 	0.113	 	 	 	0.113	 	 	 	0.114	 	 	 	0.115	 	 	 	0.116	 	 	 	0.117	 	 	 	0.118	 	 	 	0.118	 	 	 	0.119	 
	24
	 	 	0.120	 	 	 	0.121	 	 	 	0.122	 	 	 	0.123	 	 	 	0.123	 	 	 	0.124	 	 	 	0.125	 	 	 	0.126	 	 	 	0.127	 	 	 	0.128	 	 	 	0.128	 	 	 	0.129	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25
	 	 	0.130	 	 	 	0.131	 	 	 	0.132	 	 	 	0.133	 	 	 	0.133	 	 	 	0.134	 	 	 	0.135	 	 	 	0.136	 	 	 	0.137	 	 	 	0.138	 	 	 	0.138	 	 	 	0.139	 
	26
	 	 	0.140	 	 	 	0.141	 	 	 	0.142	 	 	 	0.143	 	 	 	0.143	 	 	 	0.144	 	 	 	0.145	 	 	 	0.146	 	 	 	0.147	 	 	 	0.148	 	 	 	0.148	 	 	 	0.149	 
	27
	 	 	0.150	 	 	 	0.151	 	 	 	0.152	 	 	 	0.153	 	 	 	0.153	 	 	 	0.154	 	 	 	0.155	 	 	 	0.156	 	 	 	0.157	 	 	 	0.158	 	 	 	0.158	 	 	 	0.159	 
	28
	 	 	0.160	 	 	 	0.161	 	 	 	0.162	 	 	 	0.163	 	 	 	0.163	 	 	 	0.164	 	 	 	0.165	 	 	 	0.166	 	 	 	0.167	 	 	 	0.168	 	 	 	0.168	 	 	 	0.169	 
	29
	 	 	0.170	 	 	 	0.171	 	 	 	0.172	 	 	 	0.173	 	 	 	0.173	 	 	 	0.174	 	 	 	0.175	 	 	 	0.176	 	 	 	0.177	 	 	 	0.178	 	 	 	0.178	 	 	 	0.179	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30
	 	 	0.180	 	 	 	0.181	 	 	 	0.182	 	 	 	0.183	 	 	 	0.183	 	 	 	0.184	 	 	 	0.185	 	 	 	0.186	 	 	 	0.187	 	 	 	0.188	 	 	 	0.188	 	 	 	0.189	 
	31
	 	 	0.190	 	 	 	0.191	 	 	 	0.192	 	 	 	0.193	 	 	 	0.193	 	 	 	0.194	 	 	 	0.195	 	 	 	0.196	 	 	 	0.197	 	 	 	0.198	 	 	 	0.198	 	 	 	0.199	 
	32
	 	 	0.200	 	 	 	0.201	 	 	 	0.202	 	 	 	0.203	 	 	 	0.203	 	 	 	0.204	 	 	 	0.205	 	 	 	0.206	 	 	 	0.207	 	 	 	0.208	 	 	 	0.208	 	 	 	0.209	 
	33
	 	 	0.210	 	 	 	0.211	 	 	 	0.212	 	 	 	0.213	 	 	 	0.213	 	 	 	0.214	 	 	 	0.215	 	 	 	0.216	 	 	 	0.217	 	 	 	0.218	 	 	 	0.218	 	 	 	0.219	 
	34
	 	 	0.220	 	 	 	0.221	 	 	 	0.222	 	 	 	0.223	 	 	 	0.223	 	 	 	0.224	 	 	 	0.225	 	 	 	0.226	 	 	 	0.227	 	 	 	0.228	 	 	 	0.228	 	 	 	0.229	 
	 
	 	 	 	 
	35
	 	 	0.230	 	 	 	0.231	 	 	 	0.232	 	 	 	0.233	 	 	 	0.233	 	 	 	0.234	 	 	 	0.235	 	 	 	0.236	 	 	 	0.237	 	 	 	0.238	 	 	 	0.238	 	 	 	0.239	 
	36
	 	 	0.240	 	 	 	0.241	 	 	 	0.242	 	 	 	0.243	 	 	 	0.243	 	 	 	0.244	 	 	 	0.245	 	 	 	0.246	 	 	 	0.247	 	 	 	0.248	 	 	 	0.248	 	 	 	0.249	 
	37
	 	 	0.250	 	 	 	0.251	 	 	 	0.252	 	 	 	0.253	 	 	 	0.253	 	 	 	0.254	 	 	 	0.255	 	 	 	0.256	 	 	 	0.257	 	 	 	0.258	 	 	 	0.258	 	 	 	0.259	 
	38
	 	 	0.260	 	 	 	0.261	 	 	 	0.262	 	 	 	0.263	 	 	 	0.263	 	 	 	0.264	 	 	 	0.265	 	 	 	0.266	 	 	 	0.267	 	 	 	0.268	 	 	 	0.268	 	 	 	0.269	 
	39
	 	 	0.270	 	 	 	0.271	 	 	 	0.272	 	 	 	0.273	 	 	 	0.273	 	 	 	0.274	 	 	 	0.275	 	 	 	0.276	 	 	 	0.277	 	 	 	0.278	 	 	 	0.278	 	 	 	0.279	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	40
	 	 	0.280	 	 	 	0.282	 	 	 	0.283	 	 	 	0.285	 	 	 	0.287	 	 	 	0.288	 	 	 	0.290	 	 	 	0.292	 	 	 	0.293	 	 	 	0.295	 	 	 	0.297	 	 	 	0.298	 
	41
	 	 	0.300	 	 	 	0.302	 	 	 	0.303	 	 	 	0.305	 	 	 	0.307	 	 	 	0.308	 	 	 	0.310	 	 	 	0.312	 	 	 	0.313	 	 	 	0.315	 	 	 	0.317	 	 	 	0.318	 
	42
	 	 	0.320	 	 	 	0.322	 	 	 	0.323	 	 	 	0.325	 	 	 	0.327	 	 	 	0.328	 	 	 	0.330	 	 	 	0.332	 	 	 	0.333	 	 	 	0.335	 	 	 	0.337	 	 	 	0.338	 
	43
	 	 	0.340	 	 	 	0.342	 	 	 	0.343	 	 	 	0.345	 	 	 	0.347	 	 	 	0.348	 	 	 	0.350	 	 	 	0.352	 	 	 	0.353	 	 	 	0.355	 	 	 	0.357	 	 	 	0.358	 
	44
	 	 	0.360	 	 	 	0.362	 	 	 	0.363	 	 	 	0.365	 	 	 	0.367	 	 	 	0.368	 	 	 	0.370	 	 	 	0.372	 	 	 	0.373	 	 	 	0.375	 	 	 	0.377	 	 	 	0.378	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45
	 	 	0.380	 	 	 	0.383	 	 	 	0.385	 	 	 	0.388	 	 	 	0.390	 	 	 	0.393	 	 	 	0.395	 	 	 	0.398	 	 	 	0.400	 	 	 	0.403	 	 	 	0.405	 	 	 	0.408	 
	46
	 	 	0.410	 	 	 	0.413	 	 	 	0.415	 	 	 	0.418	 	 	 	0.420	 	 	 	0.423	 	 	 	0.425	 	 	 	0.428	 	 	 	0.430	 	 	 	0.433	 	 	 	0.435	 	 	 	0.438	 
	47
	 	 	0.440	 	 	 	0.443	 	 	 	0.445	 	 	 	0.448	 	 	 	0.450	 	 	 	0.453	 	 	 	0.455	 	 	 	0.458	 	 	 	0.460	 	 	 	0.463	 	 	 	0.465	 	 	 	0.468	 
	48
	 	 	0.470	 	 	 	0.473	 	 	 	0.475	 	 	 	0.478	 	 	 	0.480	 	 	 	0.483	 	 	 	0.485	 	 	 	0.488	 	 	 	0.490	 	 	 	0.493	 	 	 	0.495	 	 	 	0.498	 
	49
	 	 	0.500	 	 	 	0.503	 	 	 	0.505	 	 	 	0.508	 	 	 	0.510	 	 	 	0.513	 	 	 	0.515	 	 	 	0.518	 	 	 	0.520	 	 	 	0.523	 	 	 	0.525	 	 	 	0.528	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50
	 	 	0.530	 	 	 	0.533	 	 	 	0.535	 	 	 	0.538	 	 	 	0.540	 	 	 	0.543	 	 	 	0.545	 	 	 	0.548	 	 	 	0.550	 	 	 	0.553	 	 	 	0.555	 	 	 	0.558	 
	51
	 	 	0.560	 	 	 	0.563	 	 	 	0.565	 	 	 	0.568	 	 	 	0.570	 	 	 	0.573	 	 	 	0.575	 	 	 	0.578	 	 	 	0.580	 	 	 	0.583	 	 	 	0.585	 	 	 	0.588	 
	52
	 	 	0.590	 	 	 	0.593	 	 	 	0.595	 	 	 	0.598	 	 	 	0.600	 	 	 	0.603	 	 	 	0.605	 	 	 	0.608	 	 	 	0.610	 	 	 	0.613	 	 	 	0.615	 	 	 	0.618	 
	53
	 	 	0.620	 	 	 	0.623	 	 	 	0.625	 	 	 	0.628	 	 	 	0.630	 	 	 	0.633	 	 	 	0.635	 	 	 	0.638	 	 	 	0.640	 	 	 	0.643	 	 	 	0.645	 	 	 	0.648	 
	54
	 	 	0.650	 	 	 	0.653	 	 	 	0.655	 	 	 	0.658	 	 	 	0.660	 	 	 	0.663	 	 	 	0.665	 	 	 	0.668	 	 	 	0.670	 	 	 	0.673	 	 	 	0.675	 	 	 	0.678	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55
	 	 	0.680	 	 	 	0.683	 	 	 	0.687	 	 	 	0.690	 	 	 	0.693	 	 	 	0.697	 	 	 	0.700	 	 	 	0.703	 	 	 	0.707	 	 	 	0.710	 	 	 	0.713	 	 	 	0.717	 
	56
	 	 	0.720	 	 	 	0.723	 	 	 	0.727	 	 	 	0.730	 	 	 	0.733	 	 	 	0.737	 	 	 	0.740	 	 	 	0.743	 	 	 	0.747	 	 	 	0.750	 	 	 	0.753	 	 	 	0.757	 
	57
	 	 	0.760	 	 	 	0.763	 	 	 	0.767	 	 	 	0.770	 	 	 	0.773	 	 	 	0.777	 	 	 	0.780	 	 	 	0.783	 	 	 	0.787	 	 	 	0.790	 	 	 	0.793	 	 	 	0.797	 
	58
	 	 	0.800	 	 	 	0.803	 	 	 	0.807	 	 	 	0.810	 	 	 	0.813	 	 	 	0.817	 	 	 	0.820	 	 	 	0.823	 	 	 	0.827	 	 	 	0.830	 	 	 	0.833	 	 	 	0.837	 
	59
	 	 	0.840	 	 	 	0.843	 	 	 	0.847	 	 	 	0.850	 	 	 	0.853	 	 	 	0.857	 	 	 	0.860	 	 	 	0.863	 	 	 	0.867	 	 	 	0.870	 	 	 	0.873	 	 	 	0.877	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	60
	 	 	0.880	 	 	 	0.885	 	 	 	0.890	 	 	 	0.895	 	 	 	0.900	 	 	 	0.905	 	 	 	0.910	 	 	 	0.915	 	 	 	0.920	 	 	 	0.925	 	 	 	0.930	 	 	 	0.935	 
	61
	 	 	0.940	 	 	 	0.945	 	 	 	0.950	 	 	 	0.955	 	 	 	0.960	 	 	 	0.965	 	 	 	0.970	 	 	 	0.975	 	 	 	0.980	 	 	 	0.985	 	 	 	0.990	 	 	 	0.995	 
	62
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	63
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	64
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Table II (B)

APPENDIX E

3%
EARLY RETIREMENT FACTORS UNREDUCED AGE 62

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	0	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	10	 	 	11	 
	20
	 	 	0.190	 	 	 	0.191	 	 	 	0.192	 	 	 	0.193	 	 	 	0.193	 	 	 	0.194	 	 	 	0.195	 	 	 	0.196	 	 	 	0.197	 	 	 	0.198	 	 	 	0.198	 	 	 	0.199	 
	21
	 	 	0.200	 	 	 	0.201	 	 	 	0.202	 	 	 	0.203	 	 	 	0.203	 	 	 	0.204	 	 	 	0.205	 	 	 	0.206	 	 	 	0.207	 	 	 	0.208	 	 	 	0.208	 	 	 	0.209	 
	22
	 	 	0.210	 	 	 	0.211	 	 	 	0.212	 	 	 	0.213	 	 	 	0.213	 	 	 	0.214	 	 	 	0.215	 	 	 	0.216	 	 	 	0.217	 	 	 	0.218	 	 	 	0.218	 	 	 	0.219	 
	23
	 	 	0.220	 	 	 	0.221	 	 	 	0.222	 	 	 	0.223	 	 	 	0.223	 	 	 	0.224	 	 	 	0.225	 	 	 	0.226	 	 	 	0.227	 	 	 	0.228	 	 	 	0.228	 	 	 	0.229	 
	24
	 	 	0.230	 	 	 	0.231	 	 	 	0.232	 	 	 	0.233	 	 	 	0.233	 	 	 	0.234	 	 	 	0.235	 	 	 	0.236	 	 	 	0.237	 	 	 	0.238	 	 	 	0.238	 	 	 	0.239	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25
	 	 	0.240	 	 	 	0.241	 	 	 	0.242	 	 	 	0.243	 	 	 	0.243	 	 	 	0.244	 	 	 	0.245	 	 	 	0.246	 	 	 	0.247	 	 	 	0.248	 	 	 	0.248	 	 	 	0.249	 
	26
	 	 	0.250	 	 	 	0.251	 	 	 	0.252	 	 	 	0.253	 	 	 	0.253	 	 	 	0.254	 	 	 	0.255	 	 	 	0.256	 	 	 	0.257	 	 	 	0.258	 	 	 	0.258	 	 	 	0.259	 
	27
	 	 	0.260	 	 	 	0.261	 	 	 	0.262	 	 	 	0.263	 	 	 	0.263	 	 	 	0.264	 	 	 	0.265	 	 	 	0.266	 	 	 	0.267	 	 	 	0.268	 	 	 	0.268	 	 	 	0.269	 
	28
	 	 	0.270	 	 	 	0.271	 	 	 	0.272	 	 	 	0.273	 	 	 	0.273	 	 	 	0.274	 	 	 	0.275	 	 	 	0.276	 	 	 	0.277	 	 	 	0.278	 	 	 	0.278	 	 	 	0.279	 
	29
	 	 	0.280	 	 	 	0.281	 	 	 	0.282	 	 	 	0.283	 	 	 	0.283	 	 	 	0.284	 	 	 	0.285	 	 	 	0.286	 	 	 	0.287	 	 	 	0.288	 	 	 	0.288	 	 	 	0.289	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30
	 	 	0.290	 	 	 	0.291	 	 	 	0.292	 	 	 	0.293	 	 	 	0.293	 	 	 	0.294	 	 	 	0.295	 	 	 	0.296	 	 	 	0.297	 	 	 	0.298	 	 	 	0.298	 	 	 	0.299	 
	31
	 	 	0.300	 	 	 	0.301	 	 	 	0.302	 	 	 	0.303	 	 	 	0.303	 	 	 	0.304	 	 	 	0.305	 	 	 	0.306	 	 	 	0.307	 	 	 	0.308	 	 	 	0.308	 	 	 	0.309	 
	32
	 	 	0.310	 	 	 	0.311	 	 	 	0.312	 	 	 	0.313	 	 	 	0.313	 	 	 	0.314	 	 	 	0.315	 	 	 	0.316	 	 	 	0.317	 	 	 	0.318	 	 	 	0.318	 	 	 	0.319	 
	33
	 	 	0.320	 	 	 	0.321	 	 	 	0.322	 	 	 	0.323	 	 	 	0.323	 	 	 	0.324	 	 	 	0.325	 	 	 	0.326	 	 	 	0.327	 	 	 	0.328	 	 	 	0.328	 	 	 	0.329	 
	34
	 	 	0.330	 	 	 	0.331	 	 	 	0.332	 	 	 	0.333	 	 	 	0.333	 	 	 	0.334	 	 	 	0.335	 	 	 	0.336	 	 	 	0.337	 	 	 	0.338	 	 	 	0.338	 	 	 	0.339	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	35
	 	 	0.340	 	 	 	0.341	 	 	 	0.342	 	 	 	0.343	 	 	 	0.343	 	 	 	0.344	 	 	 	0.345	 	 	 	0.346	 	 	 	0.347	 	 	 	0.348	 	 	 	0.348	 	 	 	0.349	 
	36
	 	 	0.350	 	 	 	0.351	 	 	 	0.352	 	 	 	0.353	 	 	 	0.353	 	 	 	0.354	 	 	 	0.355	 	 	 	0.356	 	 	 	0.357	 	 	 	0.358	 	 	 	0.358	 	 	 	0.359	 
	37
	 	 	0.360	 	 	 	0.361	 	 	 	0.362	 	 	 	0.363	 	 	 	0.363	 	 	 	0.364	 	 	 	0.365	 	 	 	0.366	 	 	 	0.367	 	 	 	0.368	 	 	 	0.368	 	 	 	0.369	 
	38
	 	 	0.370	 	 	 	0.371	 	 	 	0.372	 	 	 	0.373	 	 	 	0.373	 	 	 	0.374	 	 	 	0.375	 	 	 	0.376	 	 	 	0.377	 	 	 	0.378	 	 	 	0.378	 	 	 	0.379	 
	39
	 	 	0.380	 	 	 	0.381	 	 	 	0.382	 	 	 	0.383	 	 	 	0.383	 	 	 	0.384	 	 	 	0.385	 	 	 	0.386	 	 	 	0.387	 	 	 	0.388	 	 	 	0.388	 	 	 	0.389	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	40
	 	 	0.390	 	 	 	0.392	 	 	 	0.393	 	 	 	0.395	 	 	 	0.397	 	 	 	0.398	 	 	 	0.400	 	 	 	0.402	 	 	 	0.403	 	 	 	0.405	 	 	 	0.407	 	 	 	0.408	 
	41
	 	 	0.410	 	 	 	0.412	 	 	 	0.413	 	 	 	0.415	 	 	 	0.417	 	 	 	0.418	 	 	 	0.420	 	 	 	0.422	 	 	 	0.423	 	 	 	0.425	 	 	 	0.427	 	 	 	0.428	 
	42
	 	 	0.430	 	 	 	0.432	 	 	 	0.433	 	 	 	0.435	 	 	 	0.437	 	 	 	0.438	 	 	 	0.440	 	 	 	0.442	 	 	 	0.443	 	 	 	0.445	 	 	 	0.447	 	 	 	0.448	 
	43
	 	 	0.450	 	 	 	0.452	 	 	 	0.453	 	 	 	0.455	 	 	 	0.457	 	 	 	0.458	 	 	 	0.460	 	 	 	0.462	 	 	 	0.463	 	 	 	0.465	 	 	 	0.467	 	 	 	0.468	 
	44
	 	 	0.470	 	 	 	0.472	 	 	 	0.473	 	 	 	0.475	 	 	 	0.477	 	 	 	0.478	 	 	 	0.480	 	 	 	0.482	 	 	 	0.483	 	 	 	0.485	 	 	 	0.487	 	 	 	0.488	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45
	 	 	0.490	 	 	 	0.492	 	 	 	0.495	 	 	 	0.498	 	 	 	0.500	 	 	 	0.503	 	 	 	0.505	 	 	 	0.507	 	 	 	0.510	 	 	 	0.513	 	 	 	0.515	 	 	 	0.518	 
	46
	 	 	0.520	 	 	 	0.522	 	 	 	0.525	 	 	 	0.528	 	 	 	0.530	 	 	 	0.533	 	 	 	0.535	 	 	 	0.537	 	 	 	0.540	 	 	 	0.543	 	 	 	0.545	 	 	 	0.548	 
	47
	 	 	0.550	 	 	 	0.552	 	 	 	0.555	 	 	 	0.558	 	 	 	0.560	 	 	 	0.563	 	 	 	0.565	 	 	 	0.567	 	 	 	0.570	 	 	 	0.573	 	 	 	0.575	 	 	 	0.578	 
	48
	 	 	0.580	 	 	 	0.582	 	 	 	0.585	 	 	 	0.588	 	 	 	0.590	 	 	 	0.593	 	 	 	0.595	 	 	 	0.597	 	 	 	0.600	 	 	 	0.603	 	 	 	0.605	 	 	 	0.608	 
	49
	 	 	0.610	 	 	 	0.612	 	 	 	0.615	 	 	 	0.618	 	 	 	0.620	 	 	 	0.623	 	 	 	0.625	 	 	 	0.627	 	 	 	0.630	 	 	 	0.633	 	 	 	0.635	 	 	 	0.638	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50
	 	 	0.640	 	 	 	0.642	 	 	 	0.645	 	 	 	0.648	 	 	 	0.650	 	 	 	0.653	 	 	 	0.655	 	 	 	0.657	 	 	 	0.660	 	 	 	0.663	 	 	 	0.665	 	 	 	0.668	 
	51
	 	 	0.670	 	 	 	0.672	 	 	 	0.675	 	 	 	0.678	 	 	 	0.680	 	 	 	0.683	 	 	 	0.685	 	 	 	0.687	 	 	 	0.690	 	 	 	0.693	 	 	 	0.695	 	 	 	0.698	 
	52
	 	 	0.700	 	 	 	0.702	 	 	 	0.705	 	 	 	0.708	 	 	 	0.710	 	 	 	0.713	 	 	 	0.715	 	 	 	0.717	 	 	 	0.720	 	 	 	0.723	 	 	 	0.725	 	 	 	0.728	 
	53
	 	 	0.730	 	 	 	0.732	 	 	 	0.735	 	 	 	0.738	 	 	 	0.740	 	 	 	0.743	 	 	 	0.745	 	 	 	0.747	 	 	 	0.750	 	 	 	0.753	 	 	 	0.755	 	 	 	0.758	 
	54
	 	 	0.760	 	 	 	0.762	 	 	 	0.765	 	 	 	0.768	 	 	 	0.770	 	 	 	0.773	 	 	 	0.775	 	 	 	0.777	 	 	 	0.780	 	 	 	0.783	 	 	 	0.785	 	 	 	0.788	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55
	 	 	0.790	 	 	 	0.792	 	 	 	0.795	 	 	 	0.798	 	 	 	0.800	 	 	 	0.803	 	 	 	0.805	 	 	 	0.807	 	 	 	0.810	 	 	 	0.813	 	 	 	0.815	 	 	 	0.818	 
	56
	 	 	0.820	 	 	 	0.822	 	 	 	0.825	 	 	 	0.828	 	 	 	0.830	 	 	 	0.833	 	 	 	0.835	 	 	 	0.837	 	 	 	0.840	 	 	 	0.843	 	 	 	0.845	 	 	 	0.848	 
	57
	 	 	0.850	 	 	 	0.852	 	 	 	0.855	 	 	 	0.858	 	 	 	0.860	 	 	 	0.863	 	 	 	0.865	 	 	 	0.867	 	 	 	0.870	 	 	 	0.873	 	 	 	0.875	 	 	 	0.878	 
	58
	 	 	0.880	 	 	 	0.882	 	 	 	0.885	 	 	 	0.888	 	 	 	0.890	 	 	 	0.893	 	 	 	0.895	 	 	 	0.897	 	 	 	0.900	 	 	 	0.903	 	 	 	0.905	 	 	 	0.908	 
	59
	 	 	0.910	 	 	 	0.912	 	 	 	0.915	 	 	 	0.918	 	 	 	0.920	 	 	 	0.923	 	 	 	0.925	 	 	 	0.927	 	 	 	0.930	 	 	 	0.933	 	 	 	0.935	 	 	 	0.938	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	60
	 	 	0.940	 	 	 	0.942	 	 	 	0.945	 	 	 	0.948	 	 	 	0.950	 	 	 	0.953	 	 	 	0.955	 	 	 	0.957	 	 	 	0.960	 	 	 	0.963	 	 	 	0.965	 	 	 	0.968	 
	61
	 	 	0.970	 	 	 	0.972	 	 	 	0.975	 	 	 	0.978	 	 	 	0.980	 	 	 	0.983	 	 	 	0.985	 	 	 	0.987	 	 	 	0.990	 	 	 	0.993	 	 	 	0.995	 	 	 	0.998	 
	62
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	63
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	64
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Table II (C)

APPENDIX E

R/70 & R/80 EARLY RETIREMENT FACTORS UNREDUCED AGE 62

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	0	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	10	 	 	11	 
	45
	 	 	0.745	 	 	 	0.746	 	 	 	0.748	 	 	 	0.749	 	 	 	0.750	 	 	 	0.751	 	 	 	0.753	 	 	 	0.754	 	 	 	0.755	 	 	 	0.756	 	 	 	0.758	 	 	 	0.759	 
	46
	 	 	0.760	 	 	 	0.761	 	 	 	0.763	 	 	 	0.764	 	 	 	0.765	 	 	 	0.766	 	 	 	0.768	 	 	 	0.769	 	 	 	0.770	 	 	 	0.771	 	 	 	0.773	 	 	 	0.774	 
	47
	 	 	0.775	 	 	 	0.776	 	 	 	0.778	 	 	 	0.779	 	 	 	0.780	 	 	 	0.781	 	 	 	0.783	 	 	 	0.784	 	 	 	0.785	 	 	 	0.786	 	 	 	0.788	 	 	 	0.789	 
	48
	 	 	0.790	 	 	 	0.791	 	 	 	0.793	 	 	 	0.794	 	 	 	0.795	 	 	 	0.796	 	 	 	0.798	 	 	 	0.799	 	 	 	0.800	 	 	 	0.801	 	 	 	0.803	 	 	 	0.804	 
	49
	 	 	0.805	 	 	 	0.806	 	 	 	0.808	 	 	 	0.809	 	 	 	0.810	 	 	 	0.811	 	 	 	0.813	 	 	 	0.814	 	 	 	0.815	 	 	 	0.816	 	 	 	0.818	 	 	 	0.819	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50
	 	 	0.820	 	 	 	0.821	 	 	 	0.823	 	 	 	0.824	 	 	 	0.825	 	 	 	0.826	 	 	 	0.828	 	 	 	0.829	 	 	 	0.830	 	 	 	0.831	 	 	 	0.833	 	 	 	0.834	 
	51
	 	 	0.835	 	 	 	0.836	 	 	 	0.838	 	 	 	0.839	 	 	 	0.840	 	 	 	0.841	 	 	 	0.843	 	 	 	0.844	 	 	 	0.845	 	 	 	0.846	 	 	 	0.848	 	 	 	0.849	 
	52
	 	 	0.850	 	 	 	0.851	 	 	 	0.853	 	 	 	0.854	 	 	 	0.855	 	 	 	0.856	 	 	 	0.858	 	 	 	0.859	 	 	 	0.860	 	 	 	0.861	 	 	 	0.863	 	 	 	0.864	 
	53
	 	 	0.865	 	 	 	0.866	 	 	 	0.868	 	 	 	0.869	 	 	 	0.870	 	 	 	0.871	 	 	 	0.873	 	 	 	0.874	 	 	 	0.875	 	 	 	0.876	 	 	 	0.878	 	 	 	0.879	 
	54
	 	 	0.880	 	 	 	0.881	 	 	 	0.883	 	 	 	0.884	 	 	 	0.885	 	 	 	0.886	 	 	 	0.888	 	 	 	0.889	 	 	 	0.890	 	 	 	0.891	 	 	 	0.893	 	 	 	0.894	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55
	 	 	0.895	 	 	 	0.896	 	 	 	0.898	 	 	 	0.899	 	 	 	0.900	 	 	 	0.901	 	 	 	0.903	 	 	 	0.904	 	 	 	0.905	 	 	 	0.906	 	 	 	0.908	 	 	 	0.909	 
	56
	 	 	0.910	 	 	 	0.911	 	 	 	0.913	 	 	 	0.914	 	 	 	0.915	 	 	 	0.916	 	 	 	0.918	 	 	 	0.919	 	 	 	0.920	 	 	 	0.921	 	 	 	0.923	 	 	 	0.924	 
	57
	 	 	0.925	 	 	 	0.926	 	 	 	0.928	 	 	 	0.929	 	 	 	0.930	 	 	 	0.931	 	 	 	0.933	 	 	 	0.934	 	 	 	0.935	 	 	 	0.936	 	 	 	0.938	 	 	 	0.939	 
	58
	 	 	0.940	 	 	 	0.941	 	 	 	0.943	 	 	 	0.944	 	 	 	0.945	 	 	 	0.946	 	 	 	0.948	 	 	 	0.949	 	 	 	0.950	 	 	 	0.951	 	 	 	0.953	 	 	 	0.954	 
	59
	 	 	0.955	 	 	 	0.956	 	 	 	0.958	 	 	 	0.959	 	 	 	0.960	 	 	 	0.961	 	 	 	0.963	 	 	 	0.964	 	 	 	0.965	 	 	 	0.966	 	 	 	0.968	 	 	 	0.969	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	60
	 	 	0.970	 	 	 	0.971	 	 	 	0.973	 	 	 	0.974	 	 	 	0.975	 	 	 	0.976	 	 	 	0.978	 	 	 	0.979	 	 	 	0.980	 	 	 	0.981	 	 	 	0.983	 	 	 	0.984	 
	61
	 	 	0.985	 	 	 	0.986	 	 	 	0.988	 	 	 	0.989	 	 	 	0.990	 	 	 	0.991	 	 	 	0.993	 	 	 	0.994	 	 	 	0.995	 	 	 	0.996	 	 	 	0.998	 	 	 	0.999	 
	62
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	63
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	64
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Table III (A)

APPENDIX E

ACTUARIAL EQUIVALENT EARLY RETIREMENT FACTORS UNREDUCED AGE 60

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	0	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	10	 	 	11	 
	20
	 	 	0.200	 	 	 	0.201	 	 	 	0.202	 	 	 	0.203	 	 	 	0.203	 	 	 	0.204	 	 	 	0.205	 	 	 	0.206	 	 	 	0.207	 	 	 	0.208	 	 	 	0.208	 	 	 	0.209	 
	21
	 	 	0.210	 	 	 	0.211	 	 	 	0.212	 	 	 	0.213	 	 	 	0.213	 	 	 	0.214	 	 	 	0.215	 	 	 	0.216	 	 	 	0.217	 	 	 	0.218	 	 	 	0.218	 	 	 	0.219	 
	22
	 	 	0.220	 	 	 	0.221	 	 	 	0.222	 	 	 	0.223	 	 	 	0.223	 	 	 	0.224	 	 	 	0.225	 	 	 	0.226	 	 	 	0.227	 	 	 	0.228	 	 	 	0.228	 	 	 	0.229	 
	23
	 	 	0.230	 	 	 	0.231	 	 	 	0.232	 	 	 	0.233	 	 	 	0.233	 	 	 	0.234	 	 	 	0.235	 	 	 	0.236	 	 	 	0.237	 	 	 	0.238	 	 	 	0.238	 	 	 	0.239	 
	24
	 	 	0.240	 	 	 	0.241	 	 	 	0.242	 	 	 	0.243	 	 	 	0.243	 	 	 	0.244	 	 	 	0.245	 	 	 	0.246	 	 	 	0.247	 	 	 	0.248	 	 	 	0.248	 	 	 	0.249	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25
	 	 	0.250	 	 	 	0.251	 	 	 	0.252	 	 	 	0.253	 	 	 	0.253	 	 	 	0.254	 	 	 	0.255	 	 	 	0.256	 	 	 	0.257	 	 	 	0.258	 	 	 	0.258	 	 	 	0.259	 
	26
	 	 	0.260	 	 	 	0.261	 	 	 	0.262	 	 	 	0.263	 	 	 	0.263	 	 	 	0.264	 	 	 	0.265	 	 	 	0.266	 	 	 	0.267	 	 	 	0.268	 	 	 	0.268	 	 	 	0.269	 
	27
	 	 	0.270	 	 	 	0.271	 	 	 	0.272	 	 	 	0.273	 	 	 	0.273	 	 	 	0.274	 	 	 	0.275	 	 	 	0.276	 	 	 	0.277	 	 	 	0.278	 	 	 	0.278	 	 	 	0.279	 
	28
	 	 	0.280	 	 	 	0.281	 	 	 	0.282	 	 	 	0.283	 	 	 	0.283	 	 	 	0.284	 	 	 	0.285	 	 	 	0.286	 	 	 	0.287	 	 	 	0.288	 	 	 	0.288	 	 	 	0.289	 
	29
	 	 	0.290	 	 	 	0.291	 	 	 	0.292	 	 	 	0.293	 	 	 	0.293	 	 	 	0.294	 	 	 	0.295	 	 	 	0.296	 	 	 	0.297	 	 	 	0.298	 	 	 	0.298	 	 	 	0.299	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30
	 	 	0.300	 	 	 	0.301	 	 	 	0.302	 	 	 	0.303	 	 	 	0.303	 	 	 	0.304	 	 	 	0.305	 	 	 	0.306	 	 	 	0.307	 	 	 	0.308	 	 	 	0.308	 	 	 	0.309	 
	31
	 	 	0.310	 	 	 	0.311	 	 	 	0.312	 	 	 	0.313	 	 	 	0.313	 	 	 	0.314	 	 	 	0.315	 	 	 	0.316	 	 	 	0.317	 	 	 	0.318	 	 	 	0.318	 	 	 	0.319	 
	32
	 	 	0.320	 	 	 	0.321	 	 	 	0.322	 	 	 	0.323	 	 	 	0.323	 	 	 	0.324	 	 	 	0.325	 	 	 	0.326	 	 	 	0.327	 	 	 	0.328	 	 	 	0.328	 	 	 	0.329	 
	33
	 	 	0.330	 	 	 	0.331	 	 	 	0.332	 	 	 	0.333	 	 	 	0.333	 	 	 	0.334	 	 	 	0.335	 	 	 	0.336	 	 	 	0.337	 	 	 	0.338	 	 	 	0.338	 	 	 	0.339	 
	34
	 	 	0.340	 	 	 	0.341	 	 	 	0.342	 	 	 	0.343	 	 	 	0.343	 	 	 	0.344	 	 	 	0.345	 	 	 	0.346	 	 	 	0.347	 	 	 	0.348	 	 	 	0.348	 	 	 	0.349	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	35
	 	 	0.350	 	 	 	0.351	 	 	 	0.352	 	 	 	0.353	 	 	 	0.353	 	 	 	0.354	 	 	 	0.355	 	 	 	0.356	 	 	 	0.357	 	 	 	0.358	 	 	 	0.358	 	 	 	0.359	 
	36
	 	 	0.360	 	 	 	0.361	 	 	 	0.362	 	 	 	0.363	 	 	 	0.363	 	 	 	0.364	 	 	 	0.365	 	 	 	0.366	 	 	 	0.367	 	 	 	0.368	 	 	 	0.368	 	 	 	0.369	 
	37
	 	 	0.370	 	 	 	0.371	 	 	 	0.372	 	 	 	0.373	 	 	 	0.373	 	 	 	0.374	 	 	 	0.375	 	 	 	0.376	 	 	 	0.377	 	 	 	0.378	 	 	 	0.378	 	 	 	0.379	 
	38
	 	 	0.380	 	 	 	0.381	 	 	 	0.382	 	 	 	0.383	 	 	 	0.383	 	 	 	0.384	 	 	 	0.385	 	 	 	0.386	 	 	 	0.387	 	 	 	0.388	 	 	 	0.388	 	 	 	0.389	 
	39
	 	 	0.390	 	 	 	0.391	 	 	 	0.392	 	 	 	0.393	 	 	 	0.393	 	 	 	0.394	 	 	 	0.395	 	 	 	0.396	 	 	 	0.397	 	 	 	0.398	 	 	 	0.398	 	 	 	0.399	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	40
	 	 	0.400	 	 	 	0.402	 	 	 	0.403	 	 	 	0.405	 	 	 	0.407	 	 	 	0.408	 	 	 	0.410	 	 	 	0.412	 	 	 	0.413	 	 	 	0.415	 	 	 	0.417	 	 	 	0.418	 
	41
	 	 	0.420	 	 	 	0.422	 	 	 	0.423	 	 	 	0.425	 	 	 	0.427	 	 	 	0.428	 	 	 	0.430	 	 	 	0.432	 	 	 	0.433	 	 	 	0.435	 	 	 	0.437	 	 	 	0.438	 
	42
	 	 	0.440	 	 	 	0.442	 	 	 	0.443	 	 	 	0.445	 	 	 	0.447	 	 	 	0.448	 	 	 	0.450	 	 	 	0.452	 	 	 	0.453	 	 	 	0.455	 	 	 	0.457	 	 	 	0.458	 
	43
	 	 	0.460	 	 	 	0.462	 	 	 	0.463	 	 	 	0.465	 	 	 	0.467	 	 	 	0.468	 	 	 	0.470	 	 	 	0.472	 	 	 	0.473	 	 	 	0.475	 	 	 	0.477	 	 	 	0.478	 
	44
	 	 	0.480	 	 	 	0.482	 	 	 	0.483	 	 	 	0.485	 	 	 	0.487	 	 	 	0.488	 	 	 	0.490	 	 	 	0.492	 	 	 	0.493	 	 	 	0.495	 	 	 	0.497	 	 	 	0.498	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45
	 	 	0.500	 	 	 	0.503	 	 	 	0.505	 	 	 	0.508	 	 	 	0.510	 	 	 	0.513	 	 	 	0.515	 	 	 	0.518	 	 	 	0.520	 	 	 	0.523	 	 	 	0.525	 	 	 	0.528	 
	46
	 	 	0.530	 	 	 	0.533	 	 	 	0.535	 	 	 	0.538	 	 	 	0.540	 	 	 	0.543	 	 	 	0.545	 	 	 	0.548	 	 	 	0.550	 	 	 	0.553	 	 	 	0.555	 	 	 	0.558	 
	47
	 	 	0.560	 	 	 	0.563	 	 	 	0.565	 	 	 	0.568	 	 	 	0.570	 	 	 	0.573	 	 	 	0.575	 	 	 	0.578	 	 	 	0.580	 	 	 	0.583	 	 	 	0.585	 	 	 	0.588	 
	48
	 	 	0.590	 	 	 	0.593	 	 	 	0.595	 	 	 	0.598	 	 	 	0.600	 	 	 	0.603	 	 	 	0.605	 	 	 	0.608	 	 	 	0.610	 	 	 	0.613	 	 	 	0.615	 	 	 	0.618	 
	49
	 	 	0.620	 	 	 	0.623	 	 	 	0.625	 	 	 	0.628	 	 	 	0.630	 	 	 	0.633	 	 	 	0.635	 	 	 	0.638	 	 	 	0.640	 	 	 	0.643	 	 	 	0.645	 	 	 	0.648	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50
	 	 	0.650	 	 	 	0.653	 	 	 	0.655	 	 	 	0.658	 	 	 	0.660	 	 	 	0.663	 	 	 	0.665	 	 	 	0.668	 	 	 	0.670	 	 	 	0.673	 	 	 	0.675	 	 	 	0.678	 
	51
	 	 	0.680	 	 	 	0.683	 	 	 	0.685	 	 	 	0.688	 	 	 	0.690	 	 	 	0.693	 	 	 	0.695	 	 	 	0.698	 	 	 	0.700	 	 	 	0.703	 	 	 	0.705	 	 	 	0.708	 
	52
	 	 	0.710	 	 	 	0.713	 	 	 	0.715	 	 	 	0.718	 	 	 	0.720	 	 	 	0.723	 	 	 	0.725	 	 	 	0.728	 	 	 	0.730	 	 	 	0.733	 	 	 	0.735	 	 	 	0.738	 
	53
	 	 	0.740	 	 	 	0.743	 	 	 	0.745	 	 	 	0.748	 	 	 	0.750	 	 	 	0.753	 	 	 	0.755	 	 	 	0.758	 	 	 	0.760	 	 	 	0.763	 	 	 	0.765	 	 	 	0.768	 
	54
	 	 	0.770	 	 	 	0.773	 	 	 	0.775	 	 	 	0.778	 	 	 	0.780	 	 	 	0.783	 	 	 	0.785	 	 	 	0.788	 	 	 	0.790	 	 	 	0.793	 	 	 	0.795	 	 	 	0.798	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55
	 	 	0.800	 	 	 	0.803	 	 	 	0.807	 	 	 	0.810	 	 	 	0.813	 	 	 	0.817	 	 	 	0.820	 	 	 	0.823	 	 	 	0.827	 	 	 	0.830	 	 	 	0.833	 	 	 	0.837	 
	56
	 	 	0.840	 	 	 	0.843	 	 	 	0.847	 	 	 	0.850	 	 	 	0.853	 	 	 	0.857	 	 	 	0.860	 	 	 	0.863	 	 	 	0.867	 	 	 	0.870	 	 	 	0.873	 	 	 	0.877	 
	57
	 	 	0.880	 	 	 	0.883	 	 	 	0.887	 	 	 	0.890	 	 	 	0.893	 	 	 	0.897	 	 	 	0.900	 	 	 	0.903	 	 	 	0.907	 	 	 	0.910	 	 	 	0.913	 	 	 	0.917	 
	58
	 	 	0.920	 	 	 	0.923	 	 	 	0.927	 	 	 	0.930	 	 	 	0.933	 	 	 	0.937	 	 	 	0.940	 	 	 	0.943	 	 	 	0.947	 	 	 	0.950	 	 	 	0.953	 	 	 	0.957	 
	59
	 	 	0.960	 	 	 	0.963	 	 	 	0.967	 	 	 	0.970	 	 	 	0.973	 	 	 	0.977	 	 	 	0.980	 	 	 	0.983	 	 	 	0.987	 	 	 	0.990	 	 	 	0.993	 	 	 	0.997	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	60
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	61
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	62
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	63
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	64
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Table III (B)

APPENDIX E

3% EARLY RETIREMENT FACTORS UNREDUCED AGE 60

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	0	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	10	 	 	11	 
	20
	 	 	0.250	 	 	 	0.251	 	 	 	0.252	 	 	 	0.253	 	 	 	0.253	 	 	 	0.254	 	 	 	0.255	 	 	 	0.256	 	 	 	0.257	 	 	 	0.258	 	 	 	0.258	 	 	 	0.259	 
	21
	 	 	0.260	 	 	 	0.261	 	 	 	0.262	 	 	 	0.263	 	 	 	0.263	 	 	 	0.264	 	 	 	0.265	 	 	 	0.266	 	 	 	0.267	 	 	 	0.268	 	 	 	0.268	 	 	 	0.269	 
	22
	 	 	0.270	 	 	 	0.271	 	 	 	0.272	 	 	 	0.273	 	 	 	0.273	 	 	 	0.274	 	 	 	0.275	 	 	 	0.276	 	 	 	0.277	 	 	 	0.278	 	 	 	0.278	 	 	 	0.279	 
	23
	 	 	0.280	 	 	 	0.281	 	 	 	0.282	 	 	 	0.283	 	 	 	0.283	 	 	 	0.284	 	 	 	0.285	 	 	 	0.286	 	 	 	0.287	 	 	 	0.288	 	 	 	0.288	 	 	 	0.289	 
	24
	 	 	0.290	 	 	 	0.291	 	 	 	0.292	 	 	 	0.293	 	 	 	0.293	 	 	 	0.294	 	 	 	0.295	 	 	 	0.296	 	 	 	0.297	 	 	 	0.298	 	 	 	0.298	 	 	 	0.299	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25
	 	 	0.300	 	 	 	0.301	 	 	 	0.302	 	 	 	0.303	 	 	 	0.303	 	 	 	0.304	 	 	 	0.305	 	 	 	0.306	 	 	 	0.307	 	 	 	0.308	 	 	 	0.308	 	 	 	0.309	 
	26
	 	 	0.310	 	 	 	0.311	 	 	 	0.312	 	 	 	0.313	 	 	 	0.313	 	 	 	0.314	 	 	 	0.315	 	 	 	0.316	 	 	 	0.317	 	 	 	0.318	 	 	 	0.318	 	 	 	0.319	 
	27
	 	 	0.320	 	 	 	0.321	 	 	 	0.322	 	 	 	0.323	 	 	 	0.323	 	 	 	0.324	 	 	 	0.325	 	 	 	0.326	 	 	 	0.327	 	 	 	0.328	 	 	 	0.328	 	 	 	0.329	 
	28
	 	 	0.330	 	 	 	0.331	 	 	 	0.332	 	 	 	0.333	 	 	 	0.333	 	 	 	0.334	 	 	 	0.335	 	 	 	0.336	 	 	 	0.337	 	 	 	0.338	 	 	 	0.338	 	 	 	0.339	 
	29
	 	 	0.340	 	 	 	0.341	 	 	 	0.342	 	 	 	0.343	 	 	 	0.343	 	 	 	0.344	 	 	 	0.345	 	 	 	0.346	 	 	 	0.347	 	 	 	0.348	 	 	 	0.348	 	 	 	0.349	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30
	 	 	0.350	 	 	 	0.351	 	 	 	0.352	 	 	 	0.353	 	 	 	0.353	 	 	 	0.354	 	 	 	0.355	 	 	 	0.356	 	 	 	0.357	 	 	 	0.358	 	 	 	0.358	 	 	 	0.359	 
	31
	 	 	0.360	 	 	 	0.361	 	 	 	0.362	 	 	 	0.363	 	 	 	0.363	 	 	 	0.364	 	 	 	0.365	 	 	 	0.366	 	 	 	0.367	 	 	 	0.368	 	 	 	0.368	 	 	 	0.369	 
	32
	 	 	0.370	 	 	 	0.371	 	 	 	0.372	 	 	 	0.373	 	 	 	0.373	 	 	 	0.374	 	 	 	0.375	 	 	 	0.376	 	 	 	0.377	 	 	 	0.378	 	 	 	0.378	 	 	 	0.379	 
	33
	 	 	0.380	 	 	 	0.381	 	 	 	0.382	 	 	 	0.383	 	 	 	0.383	 	 	 	0.384	 	 	 	0.385	 	 	 	0.386	 	 	 	0.387	 	 	 	0.388	 	 	 	0.388	 	 	 	0.389	 
	34
	 	 	0.390	 	 	 	0.391	 	 	 	0.392	 	 	 	0.393	 	 	 	0.393	 	 	 	0.394	 	 	 	0.395	 	 	 	0.396	 	 	 	0.397	 	 	 	0.398	 	 	 	0.398	 	 	 	0.399	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	35
	 	 	0.400	 	 	 	0.401	 	 	 	0.402	 	 	 	0.403	 	 	 	0.403	 	 	 	0.404	 	 	 	0.405	 	 	 	0.406	 	 	 	0.407	 	 	 	0.408	 	 	 	0.408	 	 	 	0.409	 
	36
	 	 	0.410	 	 	 	0.411	 	 	 	0.412	 	 	 	0.413	 	 	 	0.413	 	 	 	0.414	 	 	 	0.415	 	 	 	0.416	 	 	 	0.417	 	 	 	0.418	 	 	 	0.418	 	 	 	0.419	 
	37
	 	 	0.420	 	 	 	0.421	 	 	 	0.422	 	 	 	0.423	 	 	 	0.423	 	 	 	0.424	 	 	 	0.425	 	 	 	0.426	 	 	 	0.427	 	 	 	0.428	 	 	 	0.428	 	 	 	0.429	 
	38
	 	 	0.430	 	 	 	0.431	 	 	 	0.432	 	 	 	0.433	 	 	 	0.433	 	 	 	0.434	 	 	 	0.435	 	 	 	0.436	 	 	 	0.437	 	 	 	0.438	 	 	 	0.438	 	 	 	0.439	 
	39
	 	 	0.440	 	 	 	0.441	 	 	 	0.442	 	 	 	0.443	 	 	 	0.443	 	 	 	0.444	 	 	 	0.445	 	 	 	0.446	 	 	 	0.447	 	 	 	0.448	 	 	 	0.448	 	 	 	0.449	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	40
	 	 	0.450	 	 	 	0.452	 	 	 	0.453	 	 	 	0.455	 	 	 	0.457	 	 	 	0.458	 	 	 	0.460	 	 	 	0.462	 	 	 	0.463	 	 	 	0.465	 	 	 	0.467	 	 	 	0.468	 
	41
	 	 	0.470	 	 	 	0.472	 	 	 	0.473	 	 	 	0.475	 	 	 	0.477	 	 	 	0.478	 	 	 	0.480	 	 	 	0.482	 	 	 	0.483	 	 	 	0.485	 	 	 	0.487	 	 	 	0.488	 
	42
	 	 	0.490	 	 	 	0.492	 	 	 	0.493	 	 	 	0.495	 	 	 	0.497	 	 	 	0.498	 	 	 	0.500	 	 	 	0.502	 	 	 	0.503	 	 	 	0.505	 	 	 	0.507	 	 	 	0.508	 
	43
	 	 	0.510	 	 	 	0.512	 	 	 	0.513	 	 	 	0.515	 	 	 	0.517	 	 	 	0.518	 	 	 	0.520	 	 	 	0.522	 	 	 	0.523	 	 	 	0.525	 	 	 	0.527	 	 	 	0.528	 
	44
	 	 	0.530	 	 	 	0.532	 	 	 	0.533	 	 	 	0.535	 	 	 	0.537	 	 	 	0.538	 	 	 	0.540	 	 	 	0.542	 	 	 	0.543	 	 	 	0.545	 	 	 	0.547	 	 	 	0.548	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45
	 	 	0.550	 	 	 	0.552	 	 	 	0.555	 	 	 	0.558	 	 	 	0.560	 	 	 	0.563	 	 	 	0.565	 	 	 	0.567	 	 	 	0.570	 	 	 	0.573	 	 	 	0.575	 	 	 	0.578	 
	46
	 	 	0.580	 	 	 	0.582	 	 	 	0.585	 	 	 	0.588	 	 	 	0.590	 	 	 	0.593	 	 	 	0.595	 	 	 	0.597	 	 	 	0.600	 	 	 	0.603	 	 	 	0.605	 	 	 	0.608	 
	47
	 	 	0.610	 	 	 	0.612	 	 	 	0.615	 	 	 	0.618	 	 	 	0.620	 	 	 	0.623	 	 	 	0.625	 	 	 	0.627	 	 	 	0.630	 	 	 	0.633	 	 	 	0.635	 	 	 	0.638	 
	48
	 	 	0.640	 	 	 	0.642	 	 	 	0.645	 	 	 	0.648	 	 	 	0.650	 	 	 	0.653	 	 	 	0.655	 	 	 	0.657	 	 	 	0.660	 	 	 	0.663	 	 	 	0.665	 	 	 	0.668	 
	49
	 	 	0.670	 	 	 	0.672	 	 	 	0.675	 	 	 	0.678	 	 	 	0.680	 	 	 	0.683	 	 	 	0.685	 	 	 	0.687	 	 	 	0.690	 	 	 	0.693	 	 	 	0.695	 	 	 	0.698	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50
	 	 	0.700	 	 	 	0.702	 	 	 	0.705	 	 	 	0.708	 	 	 	0.710	 	 	 	0.713	 	 	 	0.715	 	 	 	0.717	 	 	 	0.720	 	 	 	0.723	 	 	 	0.725	 	 	 	0.728	 
	51
	 	 	0.730	 	 	 	0.732	 	 	 	0.735	 	 	 	0.738	 	 	 	0.740	 	 	 	0.743	 	 	 	0.745	 	 	 	0.747	 	 	 	0.750	 	 	 	0.753	 	 	 	0.755	 	 	 	0.758	 
	52
	 	 	0.760	 	 	 	0.762	 	 	 	0.765	 	 	 	0.768	 	 	 	0.770	 	 	 	0.773	 	 	 	0.775	 	 	 	0.777	 	 	 	0.780	 	 	 	0.783	 	 	 	0.785	 	 	 	0.788	 
	53
	 	 	0.790	 	 	 	0.792	 	 	 	0.795	 	 	 	0.798	 	 	 	0.800	 	 	 	0.803	 	 	 	0.805	 	 	 	0.807	 	 	 	0.810	 	 	 	0.813	 	 	 	0.815	 	 	 	0.818	 
	54
	 	 	0.820	 	 	 	0.822	 	 	 	0.825	 	 	 	0.828	 	 	 	0.830	 	 	 	0.833	 	 	 	0.835	 	 	 	0.837	 	 	 	0.840	 	 	 	0.843	 	 	 	0.845	 	 	 	0.848	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55
	 	 	0.850	 	 	 	0.852	 	 	 	0.855	 	 	 	0.858	 	 	 	0.860	 	 	 	0.863	 	 	 	0.865	 	 	 	0.867	 	 	 	0.870	 	 	 	0.873	 	 	 	0.875	 	 	 	0.878	 
	56
	 	 	0.880	 	 	 	0.882	 	 	 	0.885	 	 	 	0.888	 	 	 	0.890	 	 	 	0.893	 	 	 	0.895	 	 	 	0.897	 	 	 	0.900	 	 	 	0.903	 	 	 	0.905	 	 	 	0.908	 
	57
	 	 	0.910	 	 	 	0.912	 	 	 	0.915	 	 	 	0.918	 	 	 	0.920	 	 	 	0.923	 	 	 	0.925	 	 	 	0.927	 	 	 	0.930	 	 	 	0.933	 	 	 	0.935	 	 	 	0.938	 
	58
	 	 	0.940	 	 	 	0.942	 	 	 	0.945	 	 	 	0.948	 	 	 	0.950	 	 	 	0.953	 	 	 	0.955	 	 	 	0.957	 	 	 	0.960	 	 	 	0.963	 	 	 	0.965	 	 	 	0.968	 
	59
	 	 	0.970	 	 	 	0.972	 	 	 	0.975	 	 	 	0.978	 	 	 	0.980	 	 	 	0.983	 	 	 	0.985	 	 	 	0.987	 	 	 	0.990	 	 	 	0.993	 	 	 	0.995	 	 	 	0.998	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	60
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	61
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	62
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	63
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	64
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Table III (C)

APPENDIX E

R/70 & R/80 EARLY RETIREMENT FACTORS UNREDUCED AGE 60

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	0	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	10	 	 	11	 
	45
	 	 	0.775	 	 	 	0.776	 	 	 	0.778	 	 	 	0.779	 	 	 	0.780	 	 	 	0.781	 	 	 	0.783	 	 	 	0.784	 	 	 	0.785	 	 	 	0.786	 	 	 	0.788	 	 	 	0.789	 
	46
	 	 	0.790	 	 	 	0.791	 	 	 	0.793	 	 	 	0.794	 	 	 	0.795	 	 	 	0.796	 	 	 	0.798	 	 	 	0.799	 	 	 	0.800	 	 	 	0.801	 	 	 	0.803	 	 	 	0.804	 
	47
	 	 	0.805	 	 	 	0.806	 	 	 	0.808	 	 	 	0.809	 	 	 	0.810	 	 	 	0.811	 	 	 	0.813	 	 	 	0.814	 	 	 	0.815	 	 	 	0.816	 	 	 	0.818	 	 	 	0.819	 
	48
	 	 	0.820	 	 	 	0.821	 	 	 	0.823	 	 	 	0.824	 	 	 	0.825	 	 	 	0.826	 	 	 	0.828	 	 	 	0.829	 	 	 	0.830	 	 	 	0.831	 	 	 	0.833	 	 	 	0.834	 
	49
	 	 	0.835	 	 	 	0.836	 	 	 	0.838	 	 	 	0.839	 	 	 	0.840	 	 	 	0.841	 	 	 	0.843	 	 	 	0.844	 	 	 	0.845	 	 	 	0.846	 	 	 	0.848	 	 	 	0.849	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50
	 	 	0.850	 	 	 	0.851	 	 	 	0.853	 	 	 	0.854	 	 	 	0.855	 	 	 	0.856	 	 	 	0.858	 	 	 	0.859	 	 	 	0.860	 	 	 	0.861	 	 	 	0.863	 	 	 	0.864	 
	51
	 	 	0.865	 	 	 	0.866	 	 	 	0.868	 	 	 	0.869	 	 	 	0.870	 	 	 	0.871	 	 	 	0.873	 	 	 	0.874	 	 	 	0.875	 	 	 	0.876	 	 	 	0.878	 	 	 	0.879	 
	52
	 	 	0.880	 	 	 	0.881	 	 	 	0.883	 	 	 	0.884	 	 	 	0.885	 	 	 	0.886	 	 	 	0.888	 	 	 	0.889	 	 	 	0.890	 	 	 	0.891	 	 	 	0.893	 	 	 	0.894	 
	53
	 	 	0.895	 	 	 	0.896	 	 	 	0.898	 	 	 	0.899	 	 	 	0.900	 	 	 	0.901	 	 	 	0.903	 	 	 	0.904	 	 	 	0.905	 	 	 	0.906	 	 	 	0.908	 	 	 	0.909	 
	54
	 	 	0.910	 	 	 	0.911	 	 	 	0.913	 	 	 	0.914	 	 	 	0.915	 	 	 	0.916	 	 	 	0.918	 	 	 	0.919	 	 	 	0.920	 	 	 	0.921	 	 	 	0.923	 	 	 	0.924	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55
	 	 	0.925	 	 	 	0.926	 	 	 	0.928	 	 	 	0.929	 	 	 	0.930	 	 	 	0.931	 	 	 	0.933	 	 	 	0.934	 	 	 	0.935	 	 	 	0.936	 	 	 	0.938	 	 	 	0.939	 
	56
	 	 	0.940	 	 	 	0.941	 	 	 	0.943	 	 	 	0.944	 	 	 	0.945	 	 	 	0.946	 	 	 	0.948	 	 	 	0.949	 	 	 	0.950	 	 	 	0.951	 	 	 	0.953	 	 	 	0.954	 
	57
	 	 	0.955	 	 	 	0.956	 	 	 	0.958	 	 	 	0.959	 	 	 	0.960	 	 	 	0.961	 	 	 	0.963	 	 	 	0.964	 	 	 	0.965	 	 	 	0.966	 	 	 	0.968	 	 	 	0.969	 
	58
	 	 	0.970	 	 	 	0.971	 	 	 	0.973	 	 	 	0.974	 	 	 	0.975	 	 	 	0.976	 	 	 	0.978	 	 	 	0.979	 	 	 	0.980	 	 	 	0.981	 	 	 	0.983	 	 	 	0.984	 
	59
	 	 	0.985	 	 	 	0.986	 	 	 	0.988	 	 	 	0.989	 	 	 	0.990	 	 	 	0.991	 	 	 	0.993	 	 	 	0.994	 	 	 	0.995	 	 	 	0.996	 	 	 	0.998	 	 	 	0.999	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	60
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	61
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	62
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	63
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	64
	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 	 	 	1.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65
	 	 	1.000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

					
	1/15 1/30 EARLY RETIREMENT FACTORS
	 	Appendix E
	 	Table IV

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGE	 	0	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	10	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	20
	 	 	0.004	 	 	 	0.004	 	 	 	0.004	 	 	 	0.004	 	 	 	0.004	 	 	 	0.004	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 
	21
	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.005	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 
	22
	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.006	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 
	23
	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.007	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 
	24
	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.008	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 
	25
	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.009	 	 	 	0.010	 	 	 	0.010	 	 	 	0.010	 	 	 	0.010	 	 	 	0.010	 	 	 	0.010	 
	26
	 	 	0.010	 	 	 	0.011	 	 	 	0.012	 	 	 	0.013	 	 	 	0.013	 	 	 	0.014	 	 	 	0.015	 	 	 	0.016	 	 	 	0.017	 	 	 	0.018	 	 	 	0.018	 	 	 	0.019	 
	27
	 	 	0.020	 	 	 	0.021	 	 	 	0.022	 	 	 	0.023	 	 	 	0.023	 	 	 	0.024	 	 	 	0.025	 	 	 	0.026	 	 	 	0.027	 	 	 	0.028	 	 	 	0.028	 	 	 	0.029	 
	28
	 	 	0.030	 	 	 	0.031	 	 	 	0.032	 	 	 	0.033	 	 	 	0.033	 	 	 	0.034	 	 	 	0.035	 	 	 	0.036	 	 	 	0.037	 	 	 	0.038	 	 	 	0.038	 	 	 	0.039	 
	29
	 	 	0.040	 	 	 	0.041	 	 	 	0.042	 	 	 	0.043	 	 	 	0.043	 	 	 	0.044	 	 	 	0.045	 	 	 	0.046	 	 	 	0.047	 	 	 	0.048	 	 	 	0.048	 	 	 	0.049	 
	30
	 	 	0.050	 	 	 	0.051	 	 	 	0.052	 	 	 	0.053	 	 	 	0.053	 	 	 	0.054	 	 	 	0.055	 	 	 	0.056	 	 	 	0.057	 	 	 	0.058	 	 	 	0.058	 	 	 	0.059	 
	31
	 	 	0.060	 	 	 	0.061	 	 	 	0.062	 	 	 	0.063	 	 	 	0.063	 	 	 	0.064	 	 	 	0.065	 	 	 	0.066	 	 	 	0.067	 	 	 	0.068	 	 	 	0.068	 	 	 	0.069	 
	32
	 	 	0.070	 	 	 	0.071	 	 	 	0.072	 	 	 	0.073	 	 	 	0.073	 	 	 	0.074	 	 	 	0.075	 	 	 	0.076	 	 	 	0.077	 	 	 	0.078	 	 	 	0.078	 	 	 	0.079	 
	33
	 	 	0.080	 	 	 	0.081	 	 	 	0.082	 	 	 	0.083	 	 	 	0.083	 	 	 	0.084	 	 	 	0.085	 	 	 	0.086	 	 	 	0.087	 	 	 	0.088	 	 	 	0.088	 	 	 	0.089	 
	34
	 	 	0.090	 	 	 	0.091	 	 	 	0.092	 	 	 	0.093	 	 	 	0.093	 	 	 	0.094	 	 	 	0.095	 	 	 	0.096	 	 	 	0.097	 	 	 	0.098	 	 	 	0.098	 	 	 	0.099	 
	35
	 	 	0.100	 	 	 	0.101	 	 	 	0.102	 	 	 	0.103	 	 	 	0.103	 	 	 	0.104	 	 	 	0.105	 	 	 	0.106	 	 	 	0.107	 	 	 	0.108	 	 	 	0.108	 	 	 	0.109	 
	36
	 	 	0.110	 	 	 	0.111	 	 	 	0.112	 	 	 	0.113	 	 	 	0.113	 	 	 	0.114	 	 	 	0.115	 	 	 	0.116	 	 	 	0.117	 	 	 	0.118	 	 	 	0.118	 	 	 	0.119	 
	37
	 	 	0.120	 	 	 	0.121	 	 	 	0.122	 	 	 	0.123	 	 	 	0.123	 	 	 	0.124	 	 	 	0.125	 	 	 	0.126	 	 	 	0.127	 	 	 	0.128	 	 	 	0.128	 	 	 	0.129	 
	38
	 	 	0.130	 	 	 	0.131	 	 	 	0.132	 	 	 	0.133	 	 	 	0.133	 	 	 	0.134	 	 	 	0.135	 	 	 	0.136	 	 	 	0.137	 	 	 	0.138	 	 	 	0.138	 	 	 	0.139	 
	39
	 	 	0.140	 	 	 	0.141	 	 	 	0.142	 	 	 	0.143	 	 	 	0.143	 	 	 	0.144	 	 	 	0.145	 	 	 	0.146	 	 	 	0.147	 	 	 	0.148	 	 	 	0.148	 	 	 	0.149	 
	40
	 	 	0.150	 	 	 	0.151	 	 	 	0.152	 	 	 	0.153	 	 	 	0.153	 	 	 	0.154	 	 	 	0.155	 	 	 	0.156	 	 	 	0.157	 	 	 	0.158	 	 	 	0.158	 	 	 	0.159	 
	41
	 	 	0.160	 	 	 	0.161	 	 	 	0.162	 	 	 	0.163	 	 	 	0.163	 	 	 	0.164	 	 	 	0.165	 	 	 	0.166	 	 	 	0.167	 	 	 	0.168	 	 	 	0.168	 	 	 	0.169	 
	42
	 	 	0.170	 	 	 	0.171	 	 	 	0.172	 	 	 	0.173	 	 	 	0.173	 	 	 	0.174	 	 	 	0.175	 	 	 	0.176	 	 	 	0.177	 	 	 	0.178	 	 	 	0.178	 	 	 	0.179	 
	43
	 	 	0.180	 	 	 	0.181	 	 	 	0.182	 	 	 	0.183	 	 	 	0.183	 	 	 	0.184	 	 	 	0.185	 	 	 	0.186	 	 	 	0.187	 	 	 	0.188	 	 	 	0.188	 	 	 	0.189	 
	44
	 	 	0.190	 	 	 	0.191	 	 	 	0.192	 	 	 	0.193	 	 	 	0.193	 	 	 	0.194	 	 	 	0.195	 	 	 	0.196	 	 	 	0.197	 	 	 	0.198	 	 	 	0.198	 	 	 	0.199	 
	45
	 	 	0.200	 	 	 	0.203	 	 	 	0.205	 	 	 	0.208	 	 	 	0.210	 	 	 	0.213	 	 	 	0.215	 	 	 	0.218	 	 	 	0.220	 	 	 	0.223	 	 	 	0.225	 	 	 	0.228	 
	46
	 	 	0.230	 	 	 	0.233	 	 	 	0.235	 	 	 	0.238	 	 	 	0.240	 	 	 	0.243	 	 	 	0.245	 	 	 	0.248	 	 	 	0.250	 	 	 	0.253	 	 	 	0.255	 	 	 	0.258	 
	47
	 	 	0.260	 	 	 	0.263	 	 	 	0.265	 	 	 	0.268	 	 	 	0.270	 	 	 	0.273	 	 	 	0.275	 	 	 	0.278	 	 	 	0.280	 	 	 	0.283	 	 	 	0.285	 	 	 	0.288	 
	48
	 	 	0.290	 	 	 	0.293	 	 	 	0.295	 	 	 	0.298	 	 	 	0.300	 	 	 	0.303	 	 	 	0.305	 	 	 	0.308	 	 	 	0.310	 	 	 	0.313	 	 	 	0.315	 	 	 	0.318	 
	49
	 	 	0.320	 	 	 	0.323	 	 	 	0.325	 	 	 	0.328	 	 	 	0.330	 	 	 	0.333	 	 	 	0.335	 	 	 	0.338	 	 	 	0.340	 	 	 	0.343	 	 	 	0.345	 	 	 	0.348	 
	50
	 	 	0.350	 	 	 	0.353	 	 	 	0.355	 	 	 	0.358	 	 	 	0.360	 	 	 	0.363	 	 	 	0.365	 	 	 	0.368	 	 	 	0.370	 	 	 	0.373	 	 	 	0.375	 	 	 	0.378	 
	51
	 	 	0.380	 	 	 	0.383	 	 	 	0.385	 	 	 	0.388	 	 	 	0.390	 	 	 	0.393	 	 	 	0.395	 	 	 	0.398	 	 	 	0.400	 	 	 	0.403	 	 	 	0.405	 	 	 	0.408	 
	52
	 	 	0.410	 	 	 	0.413	 	 	 	0.415	 	 	 	0.418	 	 	 	0.420	 	 	 	0.423	 	 	 	0.425	 	 	 	0.428	 	 	 	0.430	 	 	 	0.433	 	 	 	0.435	 	 	 	0.438	 
	53
	 	 	0.440	 	 	 	0.443	 	 	 	0.445	 	 	 	0.448	 	 	 	0.450	 	 	 	0.453	 	 	 	0.455	 	 	 	0.458	 	 	 	0.460	 	 	 	0.463	 	 	 	0.465	 	 	 	0.468	 
	54
	 	 	0.470	 	 	 	0.473	 	 	 	0.475	 	 	 	0.478	 	 	 	0.480	 	 	 	0.483	 	 	 	0.485	 	 	 	0.488	 	 	 	0.490	 	 	 	0.493	 	 	 	0.495	 	 	 	0.498	 
	55
	 	 	0.500	 	 	 	0.503	 	 	 	0.506	 	 	 	0.508	 	 	 	0.511	 	 	 	0.514	 	 	 	0.517	 	 	 	0.519	 	 	 	0.522	 	 	 	0.525	 	 	 	0.528	 	 	 	0.530	 
	56
	 	 	0.533	 	 	 	0.536	 	 	 	0.539	 	 	 	0.542	 	 	 	0.544	 	 	 	0.547	 	 	 	0.550	 	 	 	0.553	 	 	 	0.556	 	 	 	0.559	 	 	 	0.561	 	 	 	0.564	 
	57
	 	 	0.567	 	 	 	0.570	 	 	 	0.573	 	 	 	0.575	 	 	 	0.578	 	 	 	0.581	 	 	 	0.584	 	 	 	0.586	 	 	 	0.589	 	 	 	0.592	 	 	 	0.595	 	 	 	0.597	 
	58
	 	 	0.600	 	 	 	0.603	 	 	 	0.606	 	 	 	0.608	 	 	 	0.611	 	 	 	0.614	 	 	 	0.617	 	 	 	0.619	 	 	 	0.622	 	 	 	0.625	 	 	 	0.628	 	 	 	0.630	 
	59
	 	 	0.633	 	 	 	0.636	 	 	 	0.639	 	 	 	0.642	 	 	 	0.644	 	 	 	0.647	 	 	 	0.650	 	 	 	0.653	 	 	 	0.656	 	 	 	0.659	 	 	 	0.661	 	 	 	0.664	 
	60
	 	 	0.667	 	 	 	0.673	 	 	 	0.678	 	 	 	0.684	 	 	 	0.689	 	 	 	0.695	 	 	 	0.700	 	 	 	0.706	 	 	 	0.711	 	 	 	0.717	 	 	 	0.722	 	 	 	0.728	 
	61
	 	 	0.733	 	 	 	0.739	 	 	 	0.744	 	 	 	0.750	 	 	 	0.755	 	 	 	0.761	 	 	 	0.767	 	 	 	0.772	 	 	 	0.778	 	 	 	0.783	 	 	 	0.789	 	 	 	0.794	 
	62
	 	 	0.800	 	 	 	0.805	 	 	 	0.811	 	 	 	0.817	 	 	 	0.822	 	 	 	0.828	 	 	 	0.834	 	 	 	0.839	 	 	 	0.845	 	 	 	0.850	 	 	 	0.856	 	 	 	0.851	 
	63
	 	 	0.867	 	 	 	0.873	 	 	 	0.878	 	 	 	0.884	 	 	 	0.889	 	 	 	0.895	 	 	 	0.900	 	 	 	0.906	 	 	 	0.911	 	 	 	0.917	 	 	 	0.922	 	 	 	0.928	 
	64
	 	 	0.933	 	 	 	0.939	 	 	 	0.944	 	 	 	0.950	 	 	 	0.955	 	 	 	0.961	 	 	 	0.967	 	 	 	0.972	 	 	 	0.978	 	 	 	0.983	 	 	 	0.989	 	 	 	0.994	 
	65
	 	 	1.000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Appendix F

100% J&S W/O 10 YEAR CERTAIN

1998 GBB89 ASSUMPTIONS

	 	 	 	 	 
	AGE	 	OPTION 4	 
	19
	 	 	0.990 	%
	20
	 	 	0.990	 
	21
	 	 	0.989	 
	22
	 	 	0.988	 
	23
	 	 	0.987	 
	24
	 	 	0.986	 
	25
	 	 	0.985	 
	26
	 	 	0.984	 
	27
	 	 	0.983	 
	28
	 	 	0.982	 
	29
	 	 	0.981	 
	30
	 	 	0.980	 
	31
	 	 	0.979	 
	32
	 	 	0.978	 
	33
	 	 	0.977	 
	34
	 	 	0.976	 
	35
	 	 	0.975	 
	36
	 	 	0.973	 
	37
	 	 	0.971	 
	38
	 	 	0.969	 
	39
	 	 	0.967	 
	40
	 	 	0.965	 
	41
	 	 	0.963	 
	42
	 	 	0.961	 
	43
	 	 	0.959	 
	44
	 	 	0.957	 
	45
	 	 	0.955	 
	46
	 	 	0.952	 
	47
	 	 	0.949	 
	48
	 	 	0.946	 
	49
	 	 	0.943	 
	50
	 	 	0.940	 
	51
	 	 	0.936	 
	52
	 	 	0.932	 
	53
	 	 	0.928	 
	54
	 	 	0.924	 
	55
	 	 	0.920	 
	56
	 	 	0.915	 
	57
	 	 	0.910	 
	58
	 	 	0.905	 
	59
	 	 	0.900	 
	60
	 	 	0.895	 
	61
	 	 	0.889	 
	62
	 	 	0.883	 
	63
	 	 	0.877	 
	64
	 	 	0.871	 
	65
	 	 	0.865	 
	 
	 	 	 	 
	FACTOR B
	 	 	0.5	%
	MAXIMUM
	 	 	0.99	%

WHEN THE MEMBER AND CA AGES DIFFER:

ADD FACTOR B FOR EACH YEAR THE CA IS OLDER
THAN THE MEMBER

SUBTRACT FACTOR B FOR EACH YEAR THE CA IS
YOUNGER THAN THE MEMBER

 

 

Appendix F

100% J&S W/O 10 YEAR CERTAIN

1998 GBB89 ASSUMPTIONS

	 	 	 	 	 
	AGE	 	OPTION 4	 
	66
	 	 	0.859	 
	67
	 	 	0.853	 
	68
	 	 	0.847	 
	69
	 	 	0.841	 
	70
	 	 	0.835	 
	71
	 	 	0.829	 
	72
	 	 	0.823	 
	73
	 	 	0.817	 
	74
	 	 	0.811	 
	75
	 	 	0.805	 
	76
	 	 	0.800	 
	77
	 	 	0.795	 
	78
	 	 	0.790	 
	79
	 	 	0.785	 
	80
	 	 	0.780	 
	81
	 	 	0.776	 
	82
	 	 	0.772	 
	83
	 	 	0.768	 
	84
	 	 	0.764	 
	85
	 	 	0.760	 
	86
	 	 	0.756	 
	87
	 	 	0.752	 
	88
	 	 	0.748	 
	89
	 	 	0.744	 
	90
	 	 	0.740	 
	 
	 	 	 	 
	FACTOR B
	 	 	0.5	%
	MAXIMUM
	 	 	0.99	%

WHEN THE MEMBER AND CA AGES DIFFER:

ADD
FACTOR B FOR EACH YEAR THE CA IS OLDER
THAN THE MEMBER

SUBTRACT FACTOR B FOR EACH
YEAR THE CA IS
YOUNGER THAN THE MEMBER

 

 

PENTEGRA RETIREMENT SERVICES

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

Summary Plan Description

	 	 	 
	 

	 	Pentegra Defined
	 

	 	Benefit Plan for
	 

	 	Financial Institutions
	 
	 	 
	 

	 	as adopted by:
	 
	 	 
	 

	 	FEDERAL HOME LOAN BANK OF NEW YORK

 

 

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

SUMMARY PLAN DESCRIPTION

for

FEDERAL HOME LOAN BANK OF NEW YORK

New York, New York

July 1, 2008

PENTEGRA DEFINED BENEFIT PLAN FOR

FINANCIAL INSTITUTIONS

108 Corporate Park Drive

White Plains, NY 10604

 

 

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

TO OUR MEMBERS:

We are pleased to present your Summary Plan Description. This Summary has been prepared to help you
understand the retirement plan which is provided by your employer through its participation in the
Pentegra Defined Benefit Plan for Financial Institutions (formerly known as the Financial
Institutions Retirement Fund) (the “Pentegra DB Plan”).

The Pentegra DB Plan is a large, non-profit, tax-exempt pension trust which was created in 1943. It
is administered by a professional staff under the direction of a Board of Directors comprised of
presidents of Federal Home Loan Banks and officers of various participating employers.

The Pentegra DB Plan enables financial institutions and other organizations serving them to provide
for the security of their employees. It invests the contributions made to it and, under its

Comprehensive Retirement Program (a defined benefit pension Plan), it pays out retirement,
disability and death benefits.

This Summary highlights the main benefit features of your retirement plan. The Pentegra DB Plan
Regulations contain the governing provisions and should be consulted as official text in all cases.
If there is any conflict between this Summary Plan Description and the Pentegra DB Plan’s
Regulations, the Pentegra DB Plan’s Regulations will control. Either your employer or the Pentegra
DB Plan will provide you with a copy of the Regulations at your request.

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 Benefit Plan for
	 

	 	Financial Institutions

 

 

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Employee Eligibility
	 	 	1	 
	Service and Salary
	 	 	2	 
	- Benefit Service
	 	 	2	 
	- Vesting Service
	 	 	2	 
	- Salary
	 	 	2	 
	Vesting
	 	 	3	 
	Retirement Benefits
	 	 	4	 
	- General
	 	 	4	 
	- Normal Retirement
	 	 	4	 
	- Late Retirement
	 	 	4	 
	- Early Retirement
	 	 	5	 
	- Disability Retirement
	 	 	7	 
	- Retirement Adjustment Payment
	 	 	8	 
	- Post-Retirement Increments
	 	 	8	 
	Death Benefit
	 	 	9	 
	- Death Benefit in Active Service
	 	 	9	 
	- Death Benefit in Retirement
	 	 	9	 
	Optional Forms of Retirement Benefit
	 	 	10	 
	- Direct Rollovers
	 	 	10	 
	Paying for Your Benefits
	 	 	11	 
	Your Personal Annual Statement
	 	 	11	 
	Reinstatement of Membership and Service
	 	 	12	 
	Leaves of Absence
	 	 	13	 
	Limitations on Benefits
	 	 	14	 
	Insurance of Benefits
	 	 	15	 
	Disputed Claims Procedure
	 	 	15	 
	Qualified Domestic Relations Orders (“QDROs”)
	 	 	16	 
	Statement of ERISA Rights
	 	 	17	 
	Other Plan Information
	 	 	19	 

 

 

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

EMPLOYEE ELIGIBILITY

Each employee must become a Member when eligible and will be enrolled by his employer at that time.
An employee will be eligible for membership in the Comprehensive Retirement Program on the first
day of the month following satisfaction of his employer’s waiting period, if any. Your employer’s
current waiting period for new employees is:

Four (4) months of service

If an employee is expected to complete 1,000 hours of service in the 12 consecutive months
following his enrollment date, he will be enrolled as an active Member and, as such, will be
entitled to all the benefits described in this Summary. If the employee is not expected to complete
1,000 hours of service in this 12 consecutive month period, he will be enrolled as an inactive
Member and, as such, will not accrue or be entitled to any retirement or death benefits (see
Article X, Section 3 of the Regulations). Subsequently, the Member will be active or inactive
depending on whether or not he completes 1,000 hours of service in each calendar year.

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

NOTE:
Regardless of the above, an employee will not be eligible for membership while he is in a
class of employees which his employer has obtained permission to exclude (see Article II, Section 2
of the Regulations). Any such classes which your employer now excludes are listed directly below.
(If none are listed, this Note may be disregarded.)

 

1

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

SERVICE AND SALARY

Your benefits are based on your benefit service and salary. The period of benefit service is the
number of years and months of employment upon which benefits are determined under the Plan.

Benefit Service includes:

Prior Service — any or all employment prior to the date your employer joined the Pentegra DB Plan
for which your employer has purchased credit.

plus

Membership Service (or future service) — period of employment as an active Member from enrollment
to retirement, death or other termination.

For example, suppose a person joined his employer at age 35. Then 10 years later, when he was 45,
his employer joined the Pentegra DB Plan and purchased credit for his 10 years of prior service.
After 20 years of membership service he will reach retirement age 65. Altogether he will then have
30 years of benefit service:

	 	 	 	 	 	 	 	 	 
	Prior Service

	 	+
	 	Membership Service
	 	=
	     Benefit Service	 
	10 Years
	 	+
	 	20 Years
	 	=
	30 Years	 

The easy way to approximate how much benefit service you would have upon retirement at age 65 is to
subtract from 65 whatever age you were when your benefit service began.

Vesting Service is the period used to determine whether or not an employee is vested and eligible
for early retirement. Vesting is measured from the first day of the month in which you were
employed. (Refer to Page 3 describing Vesting.)

Salary is your basic annual salary rate, plus overtime, bonuses, and commissions. Changes in your
basic annual salary rate which occur during the calendar year are recognized. Salary also includes
any pre-tax contributions to a Section 401(k) plan and, unless the employer elects otherwise,
pre-tax contributions to a Section 125 cafeteria plan as well as Qualified Transportation Fringe
benefits as defined under Section 132(f) of the Internal Revenue Code.

 

2

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

VESTING

“Vested” means that you have a nonforfeitable right to a retirement benefit which you will not lose
if you terminate your employment. A Member will become vested in accordance with the following
schedule:

	 	 	 	 	 
	Completed Years	 	Vested	 
	of Vesting Service	 	Percentage	 
	 
	 	 	 	 
	Less than 2
	 	 	0	 
	2
	 	 	20	%
	3
	 	 	40	%
	4
	 	 	60	%
	5
	 	 	100	%

Any Member who has reached age 65 is automatically 100% vested, regardless of the number of years
of vesting service he has completed.

Any Member who terminates service after becoming fully or partially vested is entitled to receive a
retirement benefit (see the “Retirement Benefits” section). If, for example, he is 100% vested upon
termination of employment, he would be entitled to a retirement allowance at age 65 equal to 100%
of the allowance accrued to his termination date. If he is 60% vested upon termination of
employment, he would be entitled to a retirement allowance at age 65 equal to 60% of such accrued
allowance. If he is not vested at termination, he will not be entitled to any retirement benefit.

NOTE: See Reinstatement of Membership and Service explained later.

 

3

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

RETIREMENT BENEFITS

General:

The regular form of all retirement benefits provides a retirement allowance (see normal, early and
disability retirement formulas) plus a retirement death benefit (explained later). Instead of
choosing the regular form, you may select one of the optional forms as described in the “Optional
Forms of Retirement Benefit” section of this Summary.

All retirement allowances are in addition to Social Security, and are payable in monthly
installments for life. In addition, all retirement allowances must begin as of the April 1st 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 (“Required Beginning Date”). However, if you are a 5% owner, your
Required Beginning Date is the April 1st of the calendar year following the calendar year in which
you reach age 701/2, even if you are still working.

Normal
Retirement:

Upon termination of employment at or after age 65, you will be entitled to a normal retirement
benefit. The formula for determining your normal retirement allowance is:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Years of	 	 	 	High-3	 	 	 	Regular
	 	 	 	 	Benefit Service	 	 	 	Average	 	 	 	Annual
	2.5%

	 	X
	 	(30 years maximum)
	 	X
	 	Salary
	 	=
	 	Allowance

Example: A Member had 30 years of Benefit Service at termination of employment and his average
annual Salary for the three (3) consecutive years of highest Salary during Benefit Service (“High-3
Average Salary”) was $32,000. His annual retirement allowance would be determined as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Years of	 	 	 	High-3	 	 	 	Regular
	 	 	 	 	Benefit Service	 	 	 	Average	 	 	 	Annual
	 	 	 	 	(30 years maximum)	 	 	 	Salary	 	 	 	Allowance
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2.5%

	 	X
	 	30 yrs. (=75%)
	 	X
	 	$ 32,000	 	=
	 	$ 24,000

If you do not continue in your employer’s service after age 65, you may begin your normal
retirement allowance as described above or you may defer commencement of your allowance
until any time up to your Required Beginning Date, in which case your normal retirement allowance
will be increased actuarially.

Late
Retirement:

If you continue in employment beyond the Plan’s normal retirement age (65), you will receive a
benefit determined under the employer’s benefit formula based on salary and benefit service earned
beyond age 65 until actual termination of employment (regardless of age) without any increase for
delayed payment. However, the benefit will not be less than the benefit you would have had at age
(65) actuarially increased.

 

4

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

Early Retirement:

If you leave your employer prior to age 65, after having become fully or partially vested (see Page
3), you will be entitled to an early retirement benefit. The retirement allowance payable at age 65
is equal to the vested amount of the normal retirement allowance accrued to your termination date.

Payment may begin as early as age 45, in which case the allowance otherwise payable at age 65 is
reduced by applying an early retirement factor based on your age when payments begin (see below).
Payment may also be deferred to any time up to your Required Beginning Date, in which case the
retirement allowance payable at age 65 will be increased actuarially.

Rule of 70 Applies: If the sum of the Member’s age and years of vesting service at termination of
employment is at least 70, his early retirement allowance will be the allowance payable at age 65,
reduced by 1.5% for each year he is under age 65.

Example: A Member terminates employment at age 51 after 26 years of vesting service and 25 years of
benefit service. His High-3 Average Salary over such a period is $28,000. His annual retirement
allowance commencing at age 65 would be determined as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Years of	 	 	 	High-3	 	 	 	Regular	 
	 	 	 	 	Benefit Service	 	 	 	Average	 	 	 	Annual	 
	 	 	 	 	(30 years maximum)	 	 	 	Salary	 	 	 	Allowance	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2.5%

	 	X
	 	25 yrs. (=62.5%)
	 	X
	 	$28,000	 	=
	 	$17,500	 

Because the sum of the Member’s age and vesting service at termination is at least 70 (51 + 26 =
77), if the Member elects to have his retirement allowance begin immediately, the allowance payable
at age 65 would be reduced as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Regular	 	 	 	 	 	 	 	 	 	Regular Retirement	 
	Retirement	 	 	 	Early Retirement	 	 	 	Allowance Payable	 
	Allowance	 	 	 	Factor (Age 51)	 	 	 	Immediately (Age 51)	 
	 
	$17,500

	 	X
	 	 	79%	 	 	=
	 	$13,825	 

NOTE:
The reduction in the retirement allowance takes into account the likelihood that the
allowance will be payable to a younger person for a longer period of time. The early retirement
factor at age 51 is 79%. The other early retirement factors are:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Age When	 	 	 	 	 	Age When	 	 	 	 	 	 	Age When	 	 	 	 
	Allowance	 	 	 	 	 	Allowance	 	 	 	 	 	 	Allowance	 	 	 	 
	Begins	 	Factor	 	 	Begins	 	 	Factor	 	 	Begins	 	 	Factor	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45
	 	 	70.0	%	 	 	52	 	 	 	80.5	%	 	 	59	 	 	 	91.0	%
	46
	 	 	71.5	%	 	 	53	 	 	 	82.0	%	 	 	60	 	 	 	92.5	%
	47
	 	 	73.0	%	 	 	54	 	 	 	83.5	%	 	 	61	 	 	 	94.0	%
	48
	 	 	74.5	%	 	 	55	 	 	 	85.0	%	 	 	62	 	 	 	95.5	%
	49
	 	 	76.0	%	 	 	56	 	 	 	86.5	%	 	 	63	 	 	 	97.0	%
	50
	 	 	77.5	%	 	 	57	 	 	 	88.0	%	 	 	64	 	 	 	98.5	%
	51
	 	 	79.0	%	 	 	58	 	 	 	89.5	%	 	 	65	 	 	 	100.0	%

(Interpolation is made to the nearest month.)

 

5

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

Rule of 70 Does Not Apply: If the sum of the Member’s age and years of vesting service at
termination of employment does not add up to at least 70, his early retirement allowance will be
the allowance payable at age 65, reduced by 3% for each year he is under age 65.

Example: A Member terminates employment at age 52 after 16 years of vesting service and 15 years of
benefit service. His High-3 Average Salary over such period is $28,000. His annual retirement
allowance commencing at age 65 would be determined as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Years of	 	 	 	High-3	 	 	 	Regular	 
	 	 	 	 	Benefit Service	 	 	 	Average	 	 	 	Annual	 
	 	 	 	 	(30 years maximum)	 	 	 	Salary	 	 	 	Allowance	 
	2.5%

	 	X
	 	15 yrs. (=37.5%)
	 	X
	 	$28,000	 	=
	 	$10,500	 

Because the sum of the Member’s age and vesting service at termination is less than 70 (52 + 16 =
68), if the Member elects to have his retirement allowance begin immediately, the allowance payable
at age 65 would be reduced as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Regular	 	 	 	Early	 	 	 	Regular Retirement	 
	Retirement	 	 	 	Retirement	 	 	 	Allowance Payable	 
	Allowance	 	 	 	Factor (Age 52)	 	 	 	Immediately (Age 52)	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	$10,500

	 	X
	 	61%	 	=
	 	$6,405	 

NOTE:
The reduction in allowance takes into account that the allowance to a younger person will
probably be payable for a longer period of time. The early retirement factor at age 52 is 61%. The
other early retirement factors are:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Age When	 	 	 	 	 	Age When	 	 	 	 	 	 	Age When	 	 	 	 
	Allowance	 	 	 	 	 	Allowance	 	 	 	 	 	 	Allowance	 	 	 	 
	Begins	 	Factor	 	 	Begins	 	 	Factor	 	 	Begins	 	 	Factor	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45
	 	 	40	%	 	 	52	 	 	 	61	%	 	 	59	 	 	 	82	%
	46
	 	 	43	%	 	 	53	 	 	 	64	%	 	 	60	 	 	 	85	%
	47
	 	 	46	%	 	 	54	 	 	 	67	%	 	 	61	 	 	 	88	%
	48
	 	 	49	%	 	 	55	 	 	 	70	%	 	 	62	 	 	 	91	%
	49
	 	 	52	%	 	 	56	 	 	 	73	%	 	 	63	 	 	 	94	%
	50
	 	 	55	%	 	 	57	 	 	 	76	%	 	 	64	 	 	 	97	%
	51
	 	 	58	%	 	 	58	 	 	 	79	%	 	 	65	 	 	 	100	%

(Interpolation is made to the nearest month.)

 

6

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

Disability Retirement:

If, after completing one year of membership service or having been credited with five (5) years of
benefit service (not counting service during a leave of absence) but before reaching age 65, you
have to stop working because of a disability, you may be entitled to a disability retirement
benefit. First, you must file an application with the Pentegra DB Plan within 13 months after the
date you had to stop working. Second, you must satisfy either Test A or B below:

Test
A — Certification by doctors designated by the Pentegra DB Plan that your disability (i)
prevents you from doing the kind of work for which you are fitted or trained, and (ii) is expected
to last at least 12 months from the date you had to stop working or to result in death.

or

Test
B — Proof that you are eligible for disability insurance benefits under Title II of the
Federal Social Security Act.

Generally, the annual disability retirement allowance payable immediately, and for as long as you
are disabled, is the higher of (i) an amount equal to the normal retirement allowance accrued to
your termination date, or (ii) 30% of average annual salary for the five (5) highest paid
consecutive years of benefit service (“High-5 Average Salary”). However, it cannot be more than
what your normal retirement allowance would have been if you had stayed in service to age 65.

You may be required to provide evidence as often as annually that you continue to be disabled.

NOTE:
Notwithstanding the foregoing, if you are on a medical leave of absence which directly
results in a subsequent disability, you may be entitled to a disability benefit.

 

7

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

Retirement Adjustment Payment:

If you retire after age 55 (whether normal, early or disability retirement), you will be entitled
to a one-time Retirement Adjustment Payment. Please note that under the provisions of the plan, you
are deemed to be retired upon your termination of employment with a deferred vested benefit. The
Retirement Adjustment Payment is a single lump sum equal to three months’ regular retirement allowance payable
when your allowance begins.

To illustrate, the annual allowance upon normal retirement would be calculated as shown on Page 4.
Assume the annual retirement allowance was $24,000, then in addition to such allowance, the Member
would receive a Retirement Adjustment Payment as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Regular	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Retirement	 
	Annual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Adjustment	 
	Allowance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Payment	 
	 
	$24,000

	 	+
	 	 	12	 	 	=
	 	$2000 (per month)
	 	X
	 	 	3	 	 	=
	 	$6,000	 

NOTE:
The Retirement Adjustment Payment only applies to Members enrolled in the Plan prior to
July 1, 1983.

Post-Retirement Increments:

As a retiree, other than a disability retiree, who is receiving allowance payments, you will be
entitled to a payment of 1% of your annual retirement allowance at the end of the calendar year in
which you reach age 66. This is a cumulative increment so that the following year, when you are age
67, the payment will be 2%, then 3%, then 4%, etc. Such increasing payments will continue to be
made as long as you live. For example:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Your	 	Increment	 	 	Annual	 	 	Incremental Payment	 
	Age	 	Rate	 	 	Allowance	 	 	at Year-End	 
	66
	 	 	1	%	 	$	24,000	 	 	$	240	 
	67
	 	 	2	%	 	$	24,000	 	 	$	480	 
	68
	 	 	3	%	 	$	24,000	 	 	$	720	 

Your age is always measured at the end of the calendar year to determine your applicable rate.

NOTE:
Each Post-Retirement Increment is based on the retirement allowance you actually receive.
Similarly, it would continue in the same manner to your surviving contingent annuitant if you had
elected such an optional form of retirement benefit (see Article VI of the Regulations) based on
the contingent annuitant’s allowance.

 

8

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

DEATH BENEFIT

In Active Service:

If a vested Member dies in active service, his beneficiary would be entitled to a lump sum death
benefit equal to 100% of the Member’s last 12 months’ salary, plus an additional 10% of such salary
for each year of benefit service until a maximum of 300% of such salary is reached for 20 or more
years, plus a refund of his own contributions, if any, with interest.

Example: A Member dies after 15 years of benefit service and his last 12 months’ salary is $32,000.
His beneficiary would get:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Last 12 Months	 	 	 	Lump Sum	 
	 	 	 	 	Salary	 	 	 	Death Benefit	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	250% [(15/10=1.5)+1=2.5]

	 	X
	 	$	32,000	 	 	=
	 	$80,000	 

Either the Member or beneficiary may elect to have his benefit or the retirement death benefit
described below paid in the form of installments over a period of up to 10 years or a lifetime
annuity. (See the Regulations for further explanation.)

If a Member dies after becoming eligible for early retirement, his beneficiary would receive the
higher of (i) the active service death benefit described above, or (ii) the retirement death
benefit described below (as if the Member had retired on the first day of the month in which he
died).

In Retirement:

The regular form of all retirement benefits (normal, early or disability) includes not only a
retirement allowance, but also a lump sum retirement death benefit which is 12 times the annual
retirement allowance less the sum of such allowance payments made before death. Please note that
this death benefit does not apply in the event you elect to receive your benefit under one of the
“Optional Forms of Retirement Benefit” (see Page 10) in lieu of the regular form.

Example: A Member dies two (2) years after retirement. His regular annual retirement allowance was
$10,000. The Member’s death benefit is illustrated below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Annual	 	 	 	 	 	 	 	 	 	Initial Death	 	 	 	Allowance	 	 	 	 
	Retirement	 	 	 	 	 	 	 	 	 	Benefit At	 	 	 	Payments	 	 	 	Lump Sum	 
	Allowance	 	 	 	 	 	 	 	 	 	Retirement	 	 	 	For 2 Years	 	 	 	Death Benefit	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$10,000

	 	X
	 	 	12   	 	 	=
	 	$	120,000	 	 	less
	 	$	20,000	 	 	=
	 	$100,000	 

All retirement allowances continue for life, even though under the regular form there would be no
death benefit payable after 12 years.

NOTE:
If a retiree should die before his allowance payments start (as in the case of an early or
normal retiree with a deferred allowance), the death benefit would be 12 times the regular annual
allowance which would have been payable had his allowance commenced as of the first day of the
month in which he died.

 

9

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

OPTIONAL FORMS OF RETIREMENT BENEFIT

At any time before your retirement allowance begins, you may elect to convert your regular
retirement allowance and death benefit (described previously) to an optional form of benefit. The
amount of each Option in which you are interested will be determined and communicated to you at
retirement.

These Options are:

	1 –	 	A higher allowance payable for life and no further benefit upon death.
	 
	2 –	 	A joint and survivor allowance which would continue at the rate of 100% to your contingent
annuitant if he or she survives you. If both you and your contingent annuitant die before 120
monthly installments have been paid, the commuted value of such unpaid installments would be paid
in a lump sum to your beneficiary.
	 
	3 –	 	A joint and survivor allowance which would continue at the rate of 50% to your contingent
annuitant if he or she survives you.
	 
	4 –	 	A single lump sum settlement in lieu of any monthly allowance and death benefit. This Option
may be elected if you retire after reaching age 59-1/2, or if you are an early retiree and defer
commencement of your benefit until such age. The election of this Option requires the written
consent of your spouse, if any.
	 
	5 –	 	A partial lump sum settlement equal to 25%, 50% or 75% of the total benefit and a monthly
allowance for the remainder of the benefit which must commence at the time of the partial lump sum
settlement. This Option may be elected if you retire after reaching age 59-1/2 or if you are an
early retiree and defer commencement of your benefit until such age. The election of this Option
requires written consent of your spouse, if any.

NOTE:
The death benefit of a deceased retiree or Member who was eligible for early retirement, who
(i) is survived by a spouse, and (ii) has not made any election with respect to his death benefit
or retirement benefit, will be paid to the surviving spouse in an amount equal to a lifetime
annuity of at least 50% of the retiree’s allowance as though he elected Option 3 above. This
benefit may be paid in the form of a lump sum or in installments of equivalent value.

DIRECT ROLLOVERS

If you select payment option numbers 4 or 5 above, you may request that a direct rollover of all or
a portion of the distribution be made to either an Individual Retirement Account (IRA) or another
qualified plan, which is will to accept the transfer of assets and is permissible under the
Pentegra DB Plan. A direct rollover will result in no tax being due until you withdraw the funds
from the IRA or other qualified plan. Under certain circumstances, all or a portion of the amount
to be distributed may not qualify for a direct rollover. For example, a distribution of less than
$200 will not be eligible for a direct rollover. If you elect to receive the distribution, rather
than request a direct rollover, then 20% of the distribution amount will be withheld for federal
income tax purposes.

 

10

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

PAYING FOR YOUR BENEFITS

All contributions made to the Plan on your behalf are actuarially determined. Your employer has
elected to pay the full cost of your benefits. You, as an employee, do not contribute while on the
“non-contributory basis.”

Special Note to any Member who has “Accumulated Contributions” with the Pentegra DB Plan:

If you made personal contributions to the Pentegra DB Plan while your present or previous employer
was on the contributory basis and if those contributions have not been refunded to you, you are
fully vested in the value of such contributions plus interest (“accumulated contributions”). This
means that if you terminate employment, you may request a refund of such accumulated contributions.
If you terminate before becoming fully or partially vested in a retirement benefit, the refund will
be in lieu of all other benefits. If you terminate after becoming fully or partially vested in an
early or normal retirement benefit (refer to Page 3 describing Vesting), the refund will be in lieu
of that portion of your retirement benefit which is attributable to your accumulated contributions.
The remaining portion, attributable to your employer’s contributions, will be payable as a reduced
retirement benefit.

Your accumulated contributions will be shown on your Personal Annual Statement (see below).

YOUR PERSONAL ANNUAL STATEMENT

(Keeping You Informed)

Every year the Pentegra DB Plan prepares a Personal Annual Statement for each Member. This
statement shows as of each January 1 your periods of accrued vesting and benefit service and the
status of your retirement and death benefits. These statements are sent to your employer for
distribution in or about the following March.

 

11

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

REINSTATEMENT OF MEMBERSHIP AND SERVICE

If you leave employment before becoming vested (see Page 3), but become reemployed by the same or
another employer participating in this Program, you will be reenrolled immediately.

If the period of your break in service (i.e., the period between your termination and reemployment)
was not longer than 60 months, your previous Vesting Service will be reinstated upon your
reemployment. If your break in service was not longer than 12 consecutive months, your previous
Vesting Service will be reinstated upon your reemployment. In addition, you will also receive
Vesting Service credit for the period of your break. If the period of your break in service
exceeded 60 months but was not longer than the period of your Vesting Service before becoming
vested, your previous Vesting Service will be reinstated upon your reemployment. If the period of
your break in service was equal to or exceeded the greater of 60 consecutive months or your
previous Vesting Service, upon reemployment you will be treated as a new employee upon
reemployment. In other words, no prior Vesting Service will be credited to you.

The following chart should assist you in understanding your options:

	 	 	 	 	 
	Length of Break in Service for a	 	Vesting Service Prior to the	 	 
	Non-Vested Member	 	Break in Service	 	Period of the Break in Service
	 
	 	 	 	 
	Less than 60 consecutive months

	 	Will be reinstated upon a
Member’s reemployment.
	 	Credit will not be given for the
period of break in service.
	 
	 	 	 	 
	Less than 12 consecutive months

	 	Will be reinstated upon a
Member’s reemployment.
	 	Credit will be given for the period
of the break in service.
	 
	 	 	 	 
	More than 60 consecutive
months, but not more than total
Vesting Service up to the break in
service

	 	Will be reinstated upon a
Member’s reemployment.
	 	Credit will not be given for the
period of the break in service.
	 
	 	 	 	 
	More than the greater of:

	 	Will NOT be reinstated upon a
Member’s reemployment.
	 	Credit will not be given for the
period of break in service.
	 
	 	 	 	 
	a)  60 consecutive months; or
	 	 	 	 
	 
	 	 	 	 
	b)  Total Vesting
Service prior to
the break in service

	 	 	 	Upon reemployment, the Member
will be considered a new
employee.

Upon reinstatement of your Vesting Service, your previous Benefit Service will also be
reinstated if you repay within five years of your reemployment or the date you incurred a break in
service of at least 60 months, any accumulated contributions which were refunded to you with
interest to the date of such repayment.

For example, if you terminated service and had completed one year (i.e., 12 months) of Vesting
Service, you would not be vested in a retirement benefit and would be entitled only to a refund of
your own contributions, if any, plus interest. However, if you returned to service with any
participating employer within 60 months, your previous Vesting Service would be reinstated and your
previous Benefit Service would also be reinstated if you repaid with interest any contributions
that had been refunded to you.

If you leave employment with a vested benefit, commence receiving benefits, and then are reemployed
as an active Member by a participating employer, you will be reenrolled immediately and given the
option, within six months following reemployment as an active Member, to make an irrevocable
election to continue to receive the payment of your Retirement Allowance or to suspend the payment
until subsequent termination of service. If no election is made, the payment of your Retirement
Allowance will continue in the form of payment previously chosen. Upon your subsequent retirement,
your retirement benefit will be based upon your Benefit Service before and after your prior
retirement and your Salary during that service, but will be actuarially reduced for any such
benefit already paid.

 

12

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

LEAVES 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. Both vesting and benefit
service continue to accrue during this leave.

	 	 	 

	Type 1-A.
	 	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 continue, if any, to be made. In addition, vesting and
benefit service continue to accrue. To qualify for benefits under Type 1-A, in general, a
Member must return to the service of his employer within 90 days of his discharge from
military service.

	 	 	 

	Type 2.
	 	Non-military granted to a Plan Member for up to one year during which all contributions
are discontinued. During this leave, vesting service continues to accrue, but benefit
service does not. The accrual of benefit service will resume when your leave terminates
and your contributions resume.

	 	 	 

	Type 3.
	 	Military leave to a Plan Member during which all contributions are discontinued. During
this leave, vesting service continues to accrue, but benefit service generally does not.
The accrual of benefit service will resume when your leave terminates and your
contributions resume.

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Vesting	 	Benefit
	Type of Leave	 	Duration	 	Contributions	 	Service	 	Service
	 
	 	 	 	 	 	 	 	 
	NON-MILITARY
LEAVE:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1

	 	Up to one year
	 	Will continue to
be made
	 	Will continue to accrue
	 	Will continue to accrue
	 
	 	 	 	 	 	 	 	 
	2

	 	Up to one year
	 	Will be
discontinued
	 	Will continue to
accrue
	 	Will not
continue to
accrue
	 
	 	 	 	 	 	 	 	 
	MILITARY LEAVE:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1-A

	 	Can vary
	 	Will continue to
be made
	 	Will continue to
accrue
	 	Will
continue to
accrue
	 
	 	 	 	 	 	 	 	 
	3

	 	Can vary
	 	Will be
discontinued
	 	Will continue to
accrue
	 	Will not
continue to
accrue

 

13

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

LIMITATIONS ON BENEFITS

	•	 	No benefit is payable by the Pentegra DB Plan unless the required contributions and application
forms have been received by the Plan.
	 
	•	 	Internal Revenue Service (IRS) requirements impose certain limitations on the amount of benefits
that may be paid under this and other qualified retirement plans. (See Article XI of the Pentegra
DB Plan
Regulations.) These limitations normally affect only the highest-paid employees and are subject to
adjustment in accordance with IRS regulations. The dollar limit on annual benefits payable from a
defined benefit plan is $195,000 in 2009 ($185,000 in 2008), actuarially reduced for benefits
commencing before age 62 and increased for benefits commencing after age 65. If an employee has
less than 10 years of vesting service or is under age 65 when he retires, or if his employer has
two (2) plans in effect, his benefits are subject to further restrictions.
	 
	•	 	The Pentegra DB Plan, by law, cannot recognize annual compensation in excess of a certain dollar
limit. The limit for the 2009 limitation year is $245,000 ($230,000 for the 2008 limitation year).
After
2009, the compensation dollar limit may be adjusted by the IRS.
	 
	•	 	If an employer should withdraw from the Pentegra DB Plan (see Article XII of the Regulations),
and establish a comparable defined benefit plan as a qualified successor plan, all liabilities of
such employer under the Pentegra DB Plan must be transferred to the qualified successor plan. If an
employer should withdraw from the Pentegra DB Plan without establishing a qualified successor Plan,
all liabilities of the employer under the Pentegra DB Plan must be annuitized through an insurance
company selected by the Pentegra DB Plan. Limits may be imposed upon the benefits of certain
higher-paid employees if an employer withdraws from the Pentegra DB Plan within 10 years after the
later of its commencement date or the effective date of any change which increases benefits. (See
Article XI, Section 1(c) of the Regulations).
	 
	•	 	Amounts payable by the Pentegra DB Plan 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.
	 
	•	 	Your employer’s continued participation is subject to IRS qualifications and other regulations
it may impose.
	 
	•	 	The limitations on benefits imposed by the IRS are subject to changes on an annual basis.

 

14

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

INSURANCE OF BENEFITS

Benefits under the Plan are insured by the Pension Benefit Guaranty Corporation (PBGC) if the
Pentegra DB Plan terminates. Generally, the PBGC guarantees most vested normal retirement age
benefits, early retirement benefits, and certain disability and survivor pensions. However, the
PBGC does not guarantee all types of benefits under covered plans, and the amount of benefit
protection is subject to certain limitations.

The PBGC guarantees vested benefits at the level in effect on the date of Plan termination.
However, if prior to the termination of a plan, the employer has been participating for less than
five (5) years, or if benefits have been increased within the past five years, the whole amount of
the vested benefits or the vested increase may not be guaranteed. In addition, there is a ceiling
on the amount of monthly benefit the PBGC guarantees, which is adjusted periodically. A withdrawal
of your employer from participation in the Pentegra DB Plan is not a plan termination under this
paragraph, and only those benefits provided under Article XII of the Pentegra DB Plan Regulations
are payable in the event of such a withdrawal.

For more information on the PBGC insurance protection and its limitations, ask the Plan
Administrator or the PBGC. Inquiries to the PBGC should be addressed
to the PBGC’s Technical
Assistance Division, 1200 K Street N.W., Suite 930, Washington, D.C. 20005 — 4026 or call
202-326-4000 (not a toll free number). TTY/TTD users may call the federal relay service toll free
at 1-800-877-8339 and ask to be connected to 202-326-4000. Additional information about the PBGC’s
pension insurance program is available through the PBGC’s website on the Internet at
http://www.pbgc.gov.

DISPUTED CLAIMS PROCEDURE

If you disagree with the Pentegra DB Plan with respect to any benefit to which you feel you are
entitled, you should make a written claim to the President of the Pentegra DB Plan, who holds
discretionary authority to approve or deny the claim. If your claim is denied, you will receive
written notice from him explaining the reason for the denial within 90 days after the claim is
filed, which sets forth, in an understandable manner, the following information:

	•	 	The specific reason(s) for the denial of the claim;
	 
	•	 	Reference to the specific plan provision on which the denial is based;
	 
	•	 	A description of any additional material or information necessary for the claimant to perfect
the claim and an explanation of why that material or information is necessary; and
	 
	•	 	A description of the Plan’s review procedures and the time limits applicable to those
procedures, including a statement of the claimant’s right to bring a civil action under ERISA
Section 502(a) following a denial on review.

The President’s decision will be final unless you appeal such decision in writing to the Retirement
Committee of the Board of Directors of the Pentegra DB Plan at 108 Corporate Park Drive, White
Plains, New York 10604, within 60 days after receiving the notice of denial. The written appeal
should contain all information you wish to be considered. The Retirement Committee 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 Committee’s decision will be final. In the case of a decision on
appeal upholding the President’s initial denial of the claim, the President’s notice of its
decision on appeal shall set forth, in an understandable manner, the following information:

	•	 	The specific reason(s) for the decision on appeal;
	 
	•	 	Reference to the specific Plan provision on which the decision on appeal is based;
	 
	•	 	A statement that the claimant is entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records and other information relevant to the
claim for benefits; and
	 
	•	 	A statement describing any voluntary appeal procedures (including voluntary arbitration or any
other form of dispute resolution) offered by the Plan and the claimant’s right to obtain
information sufficient to enable you or your beneficiary to make an informed judgment about whether
to submit a benefit dispute to the voluntary level of appeal, and a statement of the claimant’s
right to bring an action under ERISA Section 502(a).

 

15

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

QUALIFIED DOMESTIC RELATIONS ORDERS (“QDROS”)

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

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

 

16

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

STATEMENT OF ERISA RIGHTS

As a Member in the Comprehensive Retirement Program, you are entitled to certain rights and
protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that
all Members will be entitled to:

Receive Information About Your Plan and Benefits

	 	•	 	Examine, without charge, at the Plan Administrator’s office or at other specified
locations, all documents governing the Plan, and a copy of the latest annual report (Form 5500
Series) filed by the Plan Administrator with the U.S. Department of Labor and available at the
Public Disclosure Room of the Employee Benefits Security Administration.
	 
	 	•	 	Obtain, upon written request to the Plan Administrator, copies of documents governing
the operation of the Plan and copies of the latest annual report (Form 5500 Series) and updated
summary plan description. 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 this summary annual report.
	 
	 	•	 	Obtain, without charge, a statement telling you whether you have a vested right to
receive a pension at normal retirement (age 65) and if so, what your benefits would be at that time
if you stop working under the Plan now. If you do not have a vested right to a pension, the
statement will tell you how many more years you have to work to get such a right. This type of
statement is provided automatically to each Member once a year (see “Your Personal Annual
Statement” as described earlier).

Prudent Actions by Plan Fiduciaries

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”
of the Plan, have a duty to do so prudently and in the interest of you and other Plan Members and
beneficiaries. No one, including your employer or any other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a pension benefit or exercising
your rights under ERISA.

Enforce Your Rights

If your claim for a pension benefit is denied in whole or in part, you have a right to know why
this was done, to obtain copies of documents relating to the decision without charge, and to appeal
any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request
a copy of plan documents or the latest annual report 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 Plan 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, after you have complied with the remedies
prescribed in the Plan’s QDRO Procedures and Disputed Claims Procedure outlined in this 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 Plan’s “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 these costs and fees (for example, if
it finds your claim is frivolous).

 

17

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

Assistance with Your Questions

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, or if you need assistance in
obtaining documents from the Plan Administrator, 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.
You may also obtain certain publications about your rights and responsibilities under ERISA by
calling the publications hotline of the Employee Benefits Security Administration.

This Statement of ERISA Rights is required by Federal law and regulations.

 

18

 

For employees who have attained age 50 and completed

5 years of vesting service as of July 1, 2008

OTHER PLAN INFORMATION

Plan Name:

Pentegra Defined Benefit Plan for Financial Institutions as adopted by 
Federal Home Loan Bank
of New York

Employer:

Federal Home Loan Bank of New York 
101 Park Avenue 
New York, NY 10178-0599

Telephone Number  –  212-681-6000

Plan Sponsor:

The Comprehensive Retirement Program is sponsored by the –

Pentegra Defined Benefit Plan for Financial Institutions 
108 Corporate Park Drive 
White Plains, New
York 10604 
Telephone Number  –  914-694-1300

Employer Identification Number  –  13-5645888 
Plan Number  –  001

Plan Year End  –  June 30

Plan Administrator:

The Plan Administrator is the President of the Pentegra DB Plan, whose place of business is the
office of the Pentegra Defined Benefit 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 a Plan Trustee.

Board of Directors:

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

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.

 

19

 

	 	 	 	 	 
	 

	 	 	 	 	Pentegra Retirement Services
	

	 	 	Our difference is your advantage
	 	108 Corporate Park Drive
White Plains, NY 10604
(800) 872-3473
	 

	 	 	 	www.pentegra.com

 

 

 

PENTEGRA  RETIREMENT  SERVICES

For Employees vested on or after July 1, 2008

Summary Plan Description

	 	 	 
	 

	 	Pentegra Defined
	 

	 	Benefit Plan for
	 

	 	Financial Institutions
	 
	 	 
	 

	 	as adopted by:
	 
	 	 
	 

	 	FEDERAL HOME LOAN BANK OF NEW YORK

 

 

 

For Employees vested on or after July 1, 2008

SUMMARY PLAN DESCRIPTION

for

FEDERAL HOME LOAN BANK OF NEW YORK

New York, New York

July 1, 2008

PENTEGRA DEFINED BENEFIT PLAN FOR

FINANCIAL INSTITUTIONS

108 Corporate Park Drive

White Plains, NY 10604

 

 

 

For Employees vested on or after July 1, 2008

TO OUR MEMBERS:

We are pleased to present your Summary Plan Description. This Summary has been prepared to help you
understand the retirement plan which is provided by your employer through its participation in the
Pentegra Defined Benefit Plan for Financial Institutions (formerly known as the Financial
Institutions Retirement Fund) (the “Pentegra DB Plan”).

The Pentegra DB Plan is a large, non-profit, tax-exempt pension trust which was created in 1943. It
is administered by a professional staff under the direction of a Board of Directors comprised of
presidents of Federal Home Loan Banks and officers of various participating employers.

The Pentegra DB Plan enables financial institutions and other organizations serving them to provide
for the security of their employees. It invests the contributions made to it and, under its
Comprehensive Retirement Program (a defined benefit pension Plan), it pays out retirement,
disability and death benefits.

This Summary highlights the main benefit features of your retirement plan. The Pentegra DB Plan
Regulations contain the governing provisions and should be consulted as official text in all cases.
If there is any conflict between this Summary Plan Description and the Pentegra DB Plan’s
Regulations, the Pentegra DB Plan’s Regulations will control. Either your employer or the Pentegra
DB Plan will provide you with a copy of the Regulations at your request.

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 Benefit Plan for
	 

	 	Financial Institutions

 

 

 

For Employees vested on or after July 1, 2008

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Employee Eligibility
	 	 	1	 
	Service and Salary
	 	 	2	 
	- Benefit Service
	 	 	2	 
	- Vesting Service
	 	 	2	 
	- Salary
	 	 	2	 
	Vesting
	 	 	3	 
	Retirement Benefits
	 	 	4	 
	- General
	 	 	4	 
	- Normal Retirement
	 	 	4	 
	- Late Retirement
	 	 	4	 
	- Early Retirement
	 	 	5	 
	- Disability Retirement
	 	 	7	 
	Death Benefit
	 	 	8	 
	- Death Benefit in Active Service
	 	 	8	 
	Optional Forms of Retirement Benefit
	 	 	9	 
	- Direct Rollovers
	 	 	9	 
	Paying for Your Benefits
	 	 	10	 
	Your Personal Annual Statement
	 	 	10	 
	Reinstatement of Membership and Service
	 	 	11	 
	Leaves of Absence
	 	 	12	 
	Limitations on Benefits
	 	 	13	 
	Insurance of Benefits
	 	 	14	 
	Disputed Claims Procedure
	 	 	14	 
	Qualified Domestic Relations Orders (“QDROs”)
	 	 	15	 
	Statement of ERISA Rights
	 	 	16	 
	Other Plan Information
	 	 	18	 

 

 

 

For Employees vested on or after July 1, 2008

EMPLOYEE ELIGIBILITY

Each employee must become a Member when eligible and will be enrolled by his employer at that time.
An employee will be eligible for membership in the Comprehensive Retirement Program on the first
day of the month following satisfaction of his employer’s waiting period, if any. Your employer’s
current waiting period for new employees is:

Four (4) months of service

If an employee is expected to complete 1,000 hours of service in the 12 consecutive months
following his enrollment date, he will be enrolled as an active Member and, as such, will be
entitled to all the benefits described in this Summary. If the employee is not expected to complete
1,000 hours of service in this 12 consecutive month period, he will be enrolled as an inactive
Member and, as such, will not accrue or be entitled to any retirement or death benefits (see
Article X, Section 3 of the Regulations). Subsequently, the Member will be active or inactive
depending on whether or not he completes 1,000 hours of service in each calendar year.

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

NOTE: Regardless of the above, an employee will not be eligible for membership while he is in a
class of employees which his employer has obtained permission to exclude (see Article II, Section 2
of the Regulations). Any such classes which your employer now excludes are listed directly below.
(If none are listed, this Note may be disregarded.)

 

1

 

For Employees vested on or after July 1, 2008

SERVICE AND SALARY

Your benefits are based on your benefit service and salary. The period of benefit service is the
number of years and months of employment upon which benefits are determined under the Plan.

Benefit Service includes:

Prior Service — any or all employment prior to the date your employer joined the Pentegra DB Plan
for which your employer has purchased credit.

plus

Membership Service (or future service) — period of employment as an active member from enrollment
to retirement, death or other termination.

For example, suppose a person joined his employer at age 35. Then 10 years later, when he was 45,
his employer joined the Pentegra DB Plan and purchased credit for his 10 years of prior service.
After 20 years of membership service he will reach retirement age 65. Altogether he will then have
30 years of benefit service:

	 	 	 	 	 	 	 	 	 
	Prior Service

	 	+
	 	Membership Service
	 	=
	 	Benefit Service
	10 Years

	 	+
	 	20 Years
	 	=
	 	30 Years

The easy way to approximate how much benefit service you would have upon retirement at age 65 is to
subtract from 65 whatever age you were when your benefit service began.

Vesting Service is the period used to determine whether or not an employee is vested and eligible
for early retirement. Vesting is measured from the first day of the month in which you were
employed. (Refer to Page 3 describing Vesting.)

Salary is your basic annual salary rate, plus overtime and bonuses. Changes in your basic annual
salary rate which occur during the calendar year are recognized. Salary also includes any pre-tax
contributions to a Section 401(k) plan and, unless the employer elects otherwise, pre-tax
contributions to a Section 125 cafeteria plan as well as Qualified Transportation Fringe benefits
as defined under Section 132(f) of the Internal Revenue Code.

 

2

 

For Employees vested on or after July 1, 2008

VESTING

“Vested” means that you have a nonforfeitable right to a retirement benefit which you will not lose
if you terminate your employment. A Member will become vested in accordance with the following
schedule:

	 	 	 	 	 
	Completed Years	 	Vested	 
	of Vesting Service	 	Percentage	 
	 
	Less than 5
	 	 	0	 
	5 or more
	 	 	100	%

Any Member who has reached age 65 is automatically 100% vested, regardless of the number of years
of vesting service he has completed.

Any Member who terminates service after becoming fully vested is entitled to receive a retirement
benefit (see the “Retirement Benefits” section). If, for example, he is 100% vested upon
termination of employment, he would be entitled to a retirement allowance at age 65 equal to 100%
of the allowance accrued to his termination date. If he is not vested at termination, he will not
be entitled to any retirement benefit.

NOTE: See Reinstatement of Membership and Service explained later.

 

3

 

For Employees vested on or after July 1, 2008

RETIREMENT BENEFITS

General:

The regular form of all retirement benefits provides a retirement allowance (see normal, early and
disability retirement formulas) payable for life. Instead of choosing the regular form, you may
select one of the optional forms as described in the “Optional
Forms of Retirement Benefit” section
of this Summary.

All retirement allowances are in addition to Social Security, and are payable in monthly
installments for life. In addition, all retirement allowances must begin as of the April 1st 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 (“Required Beginning Date”). However, if you are a 5% owner, your
Required Beginning Date is the April 1st of the calendar year following the calendar year in which
you reach age 701/2, even if you are still working.

Normal Retirement:

Upon termination of employment at or after age 65, you will be entitled to a normal retirement
benefit. The formula for determining your normal retirement allowance is:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	High-5	 	 	 	 	 
	 	 

	 	 	 	Years of Benefit Service
	 	 	 	Average
	 	 	 	Retirement	 
	 	2.0%

	 	X
	 	(30 years maximum)
	 	X
	 	Salary
	 	=
	 	Allowance	 

NOTE: Your total years of benefit service cannot
exceed 30 years.

Example: A Member hired on July 1, 2008 had 15 years of benefit service at termination of
employment and his average annual salary for the five (5) consecutive years of highest salary
during benefit service (“High 5 Average Salary”) was $27,000. His annual retirement allowance would
be determined as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	High-5	 	 	 	 	 
	 	 	 	 	 	Years of Benefit Service	 	 	 	Average	 	 	 	Retirement	 
	 	 	 	 	 	(30 years maximum)	 	 	 	Salary	 	 	 	Allowance	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	2.0%

	 	X
	 	15 yrs. (=30%)
	 	X
	 	$27,000	 	=
	 	$8,100	 

If you do not continue in your employer’s service after age 65, you may begin your normal
retirement allowance as described above or you may defer commencement of your allowance
until any time up to your Required Beginning Date, in which case your normal retirement allowance
will be increased actuarially.

Late Retirement:

If you continue in employment beyond the Plan’s normal retirement age (65), you will receive a
benefit determined under the employer’s benefit formula based on salary and benefit service earned
beyond age 65 until actual termination of employment (regardless of age) without any increase for
delayed payment. However, the benefit will not be less than the benefit you would have had at age
(65) actuarially increased.

 

4

 

For Employees vested on or after July 1, 2008

Early Retirement:

If you leave your employer prior to age 65, after having become fully or partially vested (see Page
3), you will be entitled to an early retirement benefit. The retirement allowance payable at age 65
is equal to the vested amount of the normal retirement allowance accrued to your termination date.

Payment may begin as early as age 45, in which case the allowance otherwise payable at age 65 is
reduced by applying an early retirement factor based on your age when payments begin (see below).
Payment may also be deferred to any time up to your Required Beginning Date, in which case the
retirement allowance payable at age 65 will be increased actuarially.

Rule of 70 Applies: If the sum of the Member’s age and years of vesting service at termination of
employment is at least 70, his early retirement allowance will be the allowance payable at age 65,
reduced by 3.0% for each year he is under age 65.

Example: A Member terminates employment at age 61 after 26 years of vesting service and 25 years of
benefit service. His High-5 Average Salary over such a period is $40,000. His annual retirement
allowance commencing at age 65 would be determined as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Years of Benefit Service	 	 	 	High-5	 	 	 	Retirement	 
	 	 	 	 	(30 years maximum)	 	 	 	Average Salary	 	 	 	Allowance	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	2.0%

	 	X
	 	25 yrs. (=50%)
	 	X
	 	$40,000	 	=
	 	$20,000	 

Because the sum of the Member’s age and vesting service at termination is at least 70 (61 + 26 =
87), if the Member elects to have his retirement allowance begin immediately, the allowance payable
at age 65 would be reduced as follows:

	 	 	 	 	 	 	 	 	 	 	 
	 	Regular	 	 	 	 	 	 	 	Regular Retirement	 
	 	Retirement	 	 	 	Early Retirement	 	 	 	Allowance Payable	 
	 	Allowance	 	 	 	Factor (Age 61)	 	 	 	Immediately (Age 61)	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	$20,000

	 	X
	 	88%	 	=
	 	$17,600	 

NOTE: The reduction in the retirement allowance takes into account the likelihood that the
allowance will be payable to a younger person for a longer period of time. The early retirement
factor at age 61 is 88%. The other early retirement factors are:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Age When	 	 	 	 	 	Age When	 	 	 	 	 	 	Age When	 	 	 	 
	Allowance	 	 	 	 	 	Allowance	 	 	 	 	 	 	Allowance	 	 	 	 
	Begins	 	Factor	 	 	Begins	 	 	Factor	 	 	Begins	 	 	Factor	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45
	 	 	40	%	 	 	52	 	 	 	61	%	 	 	59	 	 	 	82	%
	46
	 	 	43	%	 	 	53	 	 	 	64	%	 	 	60	 	 	 	85	%
	47
	 	 	46	%	 	 	54	 	 	 	67	%	 	 	61	 	 	 	88	%
	48
	 	 	49	%	 	 	55	 	 	 	70	%	 	 	62	 	 	 	91	%
	49
	 	 	52	%	 	 	56	 	 	 	73	%	 	 	63	 	 	 	94	%
	50
	 	 	55	%	 	 	57	 	 	 	76	%	 	 	64	 	 	 	97	%
	51
	 	 	58	%	 	 	58	 	 	 	79	%	 	 	65	 	 	 	100	%

(Interpolation is made to the nearest month.)

 

5

 

For Employees vested on or after July 1, 2008

Rule of 70 Does Not Apply: If the sum of the Member’s age and years of vesting service at
termination of employment does not add up to at least 70, his early retirement allowance payable at
age 65, reduced by an actuarial Equivalent Reduction factor for each year he is under age 65.

Example: A Member terminates employment at age 52 after 16 years of vesting service and 15 years of
benefit service. His High-5 Average Salary over such a period is $40,000. His annual retirement
allowance commencing at age 65 would be determined as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	High-5	 	 	 	Retirement	 
	 	 	 	 	Years of Benefit Service	 	 	 	Average Salary	 	 	 	Allowance	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	2.0%

	 	X
	 	15 yrs. (=30%)
	 	X
	 	$40,000	 	=
	 	$12,000	 

Because the sum of the Member’s age and vesting service at termination is less than 70 (52 + 16 =
68), if the Member elects to have his retirement allowance begin immediately, the allowance payable
at age 65 would be reduced as follows:

	 	 	 	 	 	 	 	 	 	 	 
	 	Regular	 	 	 	Early	 	 	 	Regular Retirement	 
	 	Retirement	 	 	 	Retirement	 	 	 	Allowance Payable	 
	 	Allowance	 	 	 	Factor (Age 52)	 	 	 	Immediately (Age 52):	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	$12,000

	 	X
	 	41%	 	=
	 	$4,920	 

The factor is calculated by subtracting 6% for each year between ages 60 and 65; 4% for each year
between ages 55 and 59, and 3% for each year between ages 45 and 54, as noted in the following
table:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Age When	 	 	 	 	 	Age When	 	 	 	 	 	 	Age When	 	 	 	 	 	 	Age When	 	 	 	 
	Allowance	 	 	 	 	 	Allowance	 	 	 	 	 	 	Allowance	 	 	 	 	 	 	Allowance	 	 	 	 
	Begins	 	Factor	 	 	Begins	 	 	Factor	 	 	Begins	 	 	Factor	 	 	Begins	 	 	Factor	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45
	 	 	20	%	 	 	50	 	 	 	35	%	 	 	55	 	 	 	50	%	 	 	60	 	 	 	70	%
	46
	 	 	23	%	 	 	51	 	 	 	38	%	 	 	56	 	 	 	54	%	 	 	61	 	 	 	76	%
	47
	 	 	26	%	 	 	52	 	 	 	41	%	 	 	57	 	 	 	58	%	 	 	62	 	 	 	82	%
	48
	 	 	29	%	 	 	53	 	 	 	44	%	 	 	58	 	 	 	62	%	 	 	63	 	 	 	88	%
	49
	 	 	32	%	 	 	54	 	 	 	47	%	 	 	59	 	 	 	66	%	 	 	64	 	 	 	94	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	65	 	 	 	100	%

(Interpolation is made to the nearest month.)

 

6

 

For Employees vested on or after July 1, 2008

Disability Retirement:

If, after completing one year of membership service or having been credited with five (5) years of
benefit service (not counting service during a leave of absence) but before reaching age 65, you
have to stop working because of a disability, you may be entitled to a disability retirement
benefit. First, you must file an application with the Pentegra DB Plan within 13 months after the
date you had to stop working. Second, you must satisfy either Test A or B below:

Test
A — Certification by doctors designated by the Pentegra DB Plan that your disability (i)
prevents you from doing the kind of work for which you are fitted or trained, and (ii) is expected
to last at least 12 months from the date you had to stop working or to result in death.

or

Test
B — Proof that you are eligible for disability insurance benefits under Title II of the
Federal Social Security Act.

Generally, the annual disability retirement allowance payable immediately, and for as long as you
are disabled, is the higher of (i) an amount equal to the normal retirement allowance accrued to
your termination date, or (ii) 30% of average annual salary for the five (5) highest paid
consecutive years of benefit service (“High-5 Average Salary”). However, it cannot be more than
what your normal retirement allowance would have been if you had stayed in service to age 65.

You may be required to provide evidence as often as annually that you continue to be disabled.

NOTE: Notwithstanding the foregoing, if you are on a medical leave of absence which directly
results in a subsequent disability, you may be entitled to a disability benefit.

 

7

 

For Employees vested on or after July 1, 2008

DEATH BENEFIT

In Active Service:

If a vested Member dies in active service, his beneficiary would be entitled to a lump sum death
benefit equal to 100% of the Member’s last 12 months’ salary, plus an additional 10% of such salary
for each year of benefit service until a maximum of 300% of such salary is reached for 20 or more
years, plus a refund of his own contributions, if any, with interest.

Example: A Member dies after 15 years of benefit service and his last 12 months’ salary is $32,000.
His beneficiary would get:

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Last 12 Months	 	 	 	Lump Sum	 
	 	 	 	 	Salary	 	 	 	Death Benefit	 
	 
	 	 	 	 	 	 	 	 	 
	250% [(15/10=1.5)+1=2.5]

	 	X
	 	$32,000	 	=
	 	$80,000	 

Either the Member or beneficiary may elect to have his benefit or the retirement death benefit
described below paid in the form of installments over a period of up to 10 years or a lifetime
annuity. (See the Regulations for further explanation.)

 

8

 

For Employees vested on or after July 1, 2008

OPTIONAL FORMS OF RETIREMENT BENEFIT

At any time before your retirement allowance begins, you may elect to convert your regular
retirement allowance (an allowance payable for your lifetime) to an optional form of benefit. The
amount of each Option in which you are interested will be determined and communicated to you at
retirement.

These Options are:

	1 –	 	An allowance payable for life. If you die before 120 monthly installments have been paid, the
commuted value of such unpaid installments would be paid in a lump sum to your beneficiary.
	 
	2 –	 	A joint and survivor allowance which would continue at the rate of 100% to your contingent
annuitant if he or she survives you. If both you and your contingent annuitant die before 120
monthly installments have been paid, the commuted value of such unpaid installments would be paid
in a lump sum to your beneficiary.
	 
	3 –	 	A joint and survivor allowance which would continue at the rate of 50% to your contingent
annuitant if he or she survives you.
	 
	4 –	 	A single lump sum settlement in lieu of any monthly allowance and death benefit. This Option
may be elected if you retire after reaching age 59-1/2, or if you are an early retiree and defer
commencement of your benefit until such age. The election of this Option requires the written
consent of your spouse, if any.
	 
	5 –	 	A partial lump sum settlement equal to 25%, 50% or 75% of the total benefit and a monthly
allowance for the remainder of the benefit which must commence at the time of the partial lump sum
settlement. This Option may be elected if you retire after reaching age 59-1/2 or if you are an
early retiree and defer commencement of your benefit until such age. The election of this Option
requires written consent of your spouse, if any.

NOTE: The death benefit of a deceased retiree or Member who was eligible for early retirement, who
(i) is survived by a spouse, and (ii) has not made any election with respect to his death benefit
or retirement benefit, will be paid to the surviving spouse in an amount equal to a lifetime
annuity of at least 50% of the retiree’s allowance as though he elected Option 3 above. This
benefit may be paid in the form of a lump sum or in installments of equivalent value.

DIRECT ROLLOVERS

If you select payment option numbers 6 or 7 above, you may request that a direct rollover of all or
a portion of the distribution be made to either an Individual Retirement Account (IRA) or another
qualified plan, which is will to accept the transfer of assets and is permissible under the
Pentegra DB Plan. A direct rollover will result in no tax being due until you withdraw the funds
from the IRA or other qualified plan. Under certain circumstances, all or a portion of the amount
to be distributed may not qualify for a direct rollover. For example, a distribution of less than
$200 will not be eligible for a direct rollover. If you elect to receive the distribution, rather
than request a direct rollover, then 20% of the distribution amount will be withheld for federal
income tax purposes.

 

9

 

For Employees vested on or after July 1, 2008

PAYING FOR YOUR BENEFITS

All contributions made to the Plan on your behalf are actuarially determined. Your employer has
elected to pay the full cost of your benefits. You, as an employee, do not contribute while on the
“non-contributory basis.”

Special Note to any Member who has “Accumulated Contributions” with the Pentegra DB Plan:

If you made personal contributions to the Pentegra DB Plan while your present or previous employer
was on the contributory basis and if those contributions have not been refunded to you, you are
fully vested in the value of such contributions plus interest (“accumulated contributions”). This
means that if you terminate employment, you may request a refund of such accumulated contributions.
If you terminate before becoming fully or partially vested in a retirement benefit, the refund will
be in lieu of all other benefits. If you terminate after becoming fully or partially vested in an
early or normal retirement benefit (refer to Page 3 describing Vesting), the refund will be in lieu
of that portion of your retirement benefit which is attributable to your accumulated contributions.
The remaining portion, attributable to your employer’s contributions, will be payable as a reduced
retirement benefit.

Your accumulated contributions will be shown on your Personal Annual Statement (see below).

YOUR PERSONAL ANNUAL STATEMENT

(Keeping You Informed)

Every year the Pentegra DB Plan prepares a Personal Annual Statement for each Member. This
statement shows as of each January 1 your periods of accrued vesting and benefit service and the
status of your retirement and death benefits. These statements are sent to your employer for
distribution in or about the following March.

 

10

 

For Employees vested on or after July 1, 2008

REINSTATEMENT OF MEMBERSHIP AND SERVICE

If you leave employment before becoming vested (see Page 3), but become reemployed by the same or
another employer participating in this Program, you will be reenrolled immediately.

If the period of your break in service (i.e., the period between your termination and reemployment)
was not longer than 60 months, your previous Vesting Service will be reinstated upon your
reemployment. If your break in service was not longer than 12 consecutive months, your previous
Vesting Service will be reinstated upon your reemployment. In addition, you will also receive
Vesting Service credit for the period of your break. If the period of your break in service
exceeded 60 months but was not longer than the period of your Vesting Service before becoming
vested, your previous Vesting Service will be reinstated upon your reemployment. If the period of
your break in service was equal to or exceeded the greater of 60 consecutive months or your
previous Vesting Service, upon reemployment you will be treated as a new employee upon
reemployment. In other words, no prior Vesting Service will be credited to you.

The following chart should assist you in understanding your options:

	 	 	 	 	 
	Length of Break in Service for a	 	Vesting Service Prior to the	 	 
	Non-Vested Member	 	Break in Service	 	Period of the Break in Service
	 
	 	 	 	 
	Less than 60 consecutive months

	 	Will be reinstated upon a
Member’s reemployment.
	 	Credit will not be given for the
period of break in service.
	 
	 	 	 	 
	Less than 12 consecutive months

	 	Will be reinstated upon a
Member’s reemployment.
	 	Credit will be given for the period
of the break in service.
	 
	 	 	 	 
	More than 60 consecutive
months, but not more than total
Vesting Service up to the break in
service

	 	Will be reinstated upon a
Member’s reemployment.
	 	Credit will not be given for the
period of the break in service.
	 
	 	 	 	 
	More than the greater of:

	 	Will NOT be reinstated upon a
Member’s reemployment.
	 	Credit will not be given for the
period of break in service.
	 
	 	 	 	 
	a) 60 consecutive months; or
	 	 	 	 
	 
	 	 	 	 
	b) Total Vesting Service prior to
the break in service

	 	 	 	Upon reemployment, the Member
will be considered a new
employee.

Upon reinstatement of your Vesting Service, your previous Benefit Service will also be
reinstated if you repay within five years of your reemployment or the date you incurred a break in
service of at least 60 months, any accumulated contributions which were refunded to you with
interest to the date of such repayment.

For example, if you terminated service and had completed one year (i.e., 12 months) of Vesting
Service, you would not be vested in a retirement benefit and would be entitled only to a refund of
your own contributions, if any, plus interest. However, if you returned to service with any
participating employer within 60 months, your previous Vesting Service would be reinstated and your
previous Benefit Service would also be reinstated if you repaid with interest any contributions
that had been refunded to you.

If you leave employment with a vested benefit, commence receiving benefits, and then are reemployed
as an active Member by a participating employer, you will be reenrolled immediately and given the
option, within six months following reemployment as an active Member, to make an irrevocable
election to continue to receive the payment of your Retirement Allowance or to suspend the payment
until subsequent termination of service. If no election is made, the payment of your Retirement
Allowance will continue in the form of payment previously chosen. Upon your subsequent retirement,
your retirement benefit will be based upon your Benefit Service before and after your prior
retirement and your Salary during that service, but will be actuarially reduced for any such
benefit already paid.

 

11

 

For Employees vested on or after July 1, 2008

LEAVES 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. Both vesting and benefit
service continue to accrue during this leave.

	 	 	 

	Type 1-A.
	 	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 continue, if any, to be made. In addition, vesting and
benefit service continue to accrue. To qualify for benefits under Type 1-A, in general, a
Member must return to the service of his employer within 90 days of his discharge from
military service.

	 	 	 

	Type 2.
	 	Non-military granted to a Plan Member for up to one year during which all contributions
are discontinued. During this leave, vesting service continues to accrue, but benefit
service does not. The accrual of benefit service will resume when your leave terminates
and your contributions resume.

	 	 	 

	Type 3.
	 	Military leave to a Plan Member during which all contributions are discontinued. During
this leave, vesting service continues to accrue, but benefit service generally does not.
The accrual of benefit service will resume when your leave terminates and your
contributions resume.

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Vesting	 	Benefit
	Type of Leave	 	Duration	 	Contributions	 	Service	 	Service
	 
	 	 	 	 	 	 	 	 
	NON-MILITARY
LEAVE:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1

	 	Up to one year
	 	Will continue to

be made
	 	Will continue to

accrue
	 	Will
continue to
accrue
	 
	 	 	 	 	 	 	 	 
	2

	 	Up to one year
	 	Will be

discontinued
	 	Will continue to

accrue
	 	Will not
continue to
accrue
	 
	 	 	 	 	 	 	 	 
	MILITARY LEAVE:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1-A

	 	Can vary
	 	Will continue to

be made
	 	Will continue to

accrue
	 	Will
continue to
accrue
	 
	 	 	 	 	 	 	 	 
	3

	 	Can vary
	 	Will be

discontinued
	 	Will continue to

accrue
	 	Will not
continue to
accrue

 

12

 

For Employees vested on or after July 1, 2008

LIMITATIONS ON BENEFITS

	•	 	No benefit is payable by the Pentegra DB Plan unless the required contributions and application
forms have been received by the Plan.
	 
	•	 	Internal Revenue Service (IRS) requirements impose certain limitations on the amount of benefits
that may be paid under this and other qualified retirement plans. (See Article XI of the Pentegra
DB Plan
Regulations.) These limitations normally affect only the highest-paid employees and are subject to
adjustment in accordance with IRS regulations. The dollar limit on annual benefits payable from a
defined benefit plan is $195,000 in 2009 ($185,000 in 2008), actuarially reduced for benefits
commencing before age 62 and increased for benefits commencing after age 65. If an employee has
less than 10 years of vesting service or is under age 65 when he retires, or if his employer has
two (2) plans in effect, his benefits are subject to further restrictions.
	 
	•	 	The Pentegra DB Plan, by law, cannot recognize annual compensation in excess of a certain dollar
limit. The limit for the 2009 limitation year is $245,000 ($230,000 for the 2008 limitation year).
After
2009, the compensation dollar limit may be adjusted by the IRS.
	 
	•	 	If an employer should withdraw from the Pentegra DB Plan (see Article XII of the Regulations),
and establish a comparable defined benefit plan as a qualified successor plan, all liabilities of
such employer under the Pentegra DB Plan must be transferred to the qualified successor plan. If an
employer should withdraw from the Pentegra DB Plan without establishing a qualified successor Plan,
all liabilities of the employer under the Pentegra DB Plan must be annuitized through an insurance
company selected by the Pentegra DB Plan. Limits may be imposed upon the benefits of certain
higher-paid employees if an employer withdraws from the Pentegra DB Plan within 10 years after the
later of its commencement date or the effective date of any change which increases benefits. (See
Article XI, Section 1(c) of the Regulations).
	 
	•	 	Amounts payable by the Pentegra DB Plan 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.
	 
	•	 	Your employer’s continued participation is subject to IRS qualifications and other regulations
it may impose.
	 
	•	 	The limitations on benefits imposed by the IRS are subject to changes on an annual basis.

 

13

 

For Employees vested on or after July 1, 2008

INSURANCE OF BENEFITS

Benefits under the Plan are insured by the Pension Benefit Guaranty Corporation (PBGC) if the
Pentegra DB Plan terminates. Generally, the PBGC guarantees most vested normal retirement age
benefits, early retirement benefits, and certain disability and survivor pensions. However, the
PBGC does not guarantee all types of benefits under covered plans, and the amount of benefit
protection is subject to certain limitations.

The PBGC guarantees vested benefits at the level in effect on the date of Plan termination.
However, if prior to the termination of a plan, the employer has been participating for less than
five (5) years, or if benefits have been increased within the past five years, the whole amount of
the vested benefits or the vested increase may not be guaranteed. In addition, there is a ceiling
on the amount of monthly benefit the PBGC guarantees, which is adjusted periodically. A withdrawal
of your employer from participation in the Pentegra DB Plan is not a plan termination under this
paragraph, and only those benefits provided under Article XII of the Pentegra DB Plan Regulations
are payable in the event of such a withdrawal.

For more information on the PBGC insurance protection and its limitations, ask the Plan
Administrator or the PBGC. Inquiries to the PBGC should be addressed
to the PBGC’s Technical
Assistance Division, 1200 K Street N.W., Suite 930, Washington, D.C. 20005 — 4026 or call
202-326-4000 (not a toll free number). TTY/TTD users may call the federal relay service toll free
at 1-800-877-8339 and ask to be connected to 202-326-4000. Additional information about the PBGC’s
pension insurance program is available through the PBGC’s website on the Internet at
http://www.pbgc.gov.

DISPUTED CLAIMS PROCEDURE

If you disagree with the Pentegra DB Plan with respect to any benefit to which you feel you are
entitled, you should make a written claim to the President of the Pentegra DB Plan, who holds
discretionary authority to approve or deny the claim. If your claim is denied, you will receive
written notice from him explaining the reason for the denial within 90 days after the claim is
filed, which sets forth, in an understandable manner, the following information:

	•	 	The specific reason(s) for the denial of the claim;
	 
	•	 	Reference to the specific plan provision on which the denial is based;
	 
	•	 	A description of any additional material or information necessary for the claimant to perfect
the claim and an explanation of why that material or information is necessary; and
	 
	•	 	A description of the Plan’s review procedures and the time limits applicable to those
procedures, including a statement of the claimant’s right to bring a civil action under ERISA
Section 502(a) following a denial on review.

The President’s decision will be final unless you appeal such decision in writing to the Retirement
Committee of the Board of Directors of the Pentegra DB Plan at 108 Corporate Park Drive, White
Plains, New York 10604, within 60 days after receiving the notice of denial. The written appeal
should contain all information you wish to be considered. The Retirement Committee 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 Committee’s decision will be final. In the case of a decision on
appeal upholding the President’s initial denial of the claim, the President’s notice of its
decision on appeal shall set forth, in an understandable manner, the following information:

	•	 	The specific reason(s) for the decision on appeal;

	 
	•	 	Reference to the specific Plan provision on which the decision on appeal is based;
	 
	•	 	A statement that the claimant is entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records and other information relevant to the
claim for benefits; and
	 
	•	 	A statement describing any voluntary appeal procedures (including voluntary arbitration or any
other form of dispute resolution) offered by the Plan and the claimant’s right to obtain
information sufficient to enable you or your beneficiary to make an informed judgment about whether
to submit a benefit dispute to the voluntary level of appeal, and a statement of the claimant’s
right to bring an action under ERISA Section 502(a).

 

14

 

For Employees vested on or after July 1, 2008

QUALIFIED DOMESTIC RELATIONS ORDERS (“QDROS”)

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

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

 

15

 

For Employees vested on or after July 1, 2008

STATEMENT OF ERISA RIGHTS

As a Member in the Comprehensive Retirement Program, you are entitled to certain rights and
protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that
all Members will be entitled to:

Receive Information About Your Plan and Benefits

	 	•	 	Examine, without charge, at the Plan Administrator’s office or at other specified
locations, all documents governing the Plan, and a copy of the latest annual report (Form 5500
Series) filed by the Plan Administrator with the U.S. Department of Labor and available at the
Public Disclosure Room of the Employee Benefits Security Administration.
	 
	 	•	 	Obtain, upon written request to the Plan Administrator, copies of documents governing
the operation of the Plan and copies of the latest annual report (Form 5500 Series) and updated
summary plan description. 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 this summary annual report.
	 
	 	•	 	Obtain, without charge, a statement telling you whether you have a vested right to
receive a pension at normal retirement (age 65) and if so, what your benefits would be at that time
if you stop working under the Plan now. If you do not have a vested right to a pension, the
statement will tell you how many more years you have to work to get such a right. This type of
statement is provided automatically to each Member once a year (see “Your Personal Annual
Statement” as described earlier).

Prudent Actions by Plan Fiduciaries

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”
of the Plan, have a duty to do so prudently and in the interest of you and other Plan Members and
beneficiaries. No one, including your employer or any other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a pension benefit or exercising
your rights under ERISA.

Enforce Your Rights

If your claim for a pension benefit is denied in whole or in part, you have a right to know why
this was done, to obtain copies of documents relating to the decision without charge, and to appeal
any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request
a copy of plan documents or the latest annual report 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 Plan 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, after you have complied with the remedies
prescribed in the Plan’s QDRO Procedures and Disputed Claims Procedure outlined in this 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 Plan’s “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 these costs and fees (for example, if
it finds your claim is frivolous).

 

16

 

For Employees vested on or after July 1, 2008

Assistance with Your Questions

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, or if you need assistance in
obtaining documents from the Plan Administrator, 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.
You may also obtain certain publications about your rights and responsibilities under ERISA by
calling the publications hotline of the Employee Benefits Security Administration.

This Statement of ERISA Rights is required by Federal law and regulations.

 

17

 

For Employees vested on or after July 1, 2008

OTHER PLAN INFORMATION

Plan Name:

Pentegra Defined Benefit Plan for Financial Institutions as adopted by 
Federal Home Loan Bank
of New York

Employer:

Federal Home Loan Bank of New York 
101 Park Avenue 
New York, NY 10178-0599

Telephone Number – 212-681-6000

Plan Sponsor:

The Comprehensive Retirement Program is sponsored by the –

Pentegra Defined Benefit Plan for Financial Institutions 
108 Corporate Park Drive 
White Plains, New
York 10604 
Telephone Number – 914-694-1300

Employer Identification Number – 13-5645888 
Plan Number – 001

Plan Year End – June 30

Plan Administrator:

The Plan Administrator is the President of the Pentegra DB Plan, whose place of business is the
office of the Pentegra Defined Benefit 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 a Plan Trustee.

Board of Directors:

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

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.

 

18

 

	 	 	 	 	 
	

	 	Our difference is your advantage
	 	Pentegra Retirement Services
108 Corporate Park Drive
White Plains, NY 10604
(800) 872-3473
	 	 	 	www.pentegra.com

 

 

 

PENTEGRA RETIREMENT SERVICES

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

Summary Plan Description

Pentegra Defined

Benefit Plan for

Financial Institutions

as adopted by:

FEDERAL
HOME LOAN BANK OF NEW YORK

 

 

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

SUMMARY PLAN DESCRIPTION

for

FEDERAL HOME LOAN BANK OF NEW YORK

New York, New York

July 1, 2008

PENTEGRA DEFINED BENEFIT PLAN FOR

FINANCIAL INSTITUTIONS

108 Corporate Park Drive

White Plains, NY 10604

 

 

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

TO OUR MEMBERS:

We are pleased to present your Summary Plan Description. This Summary has been prepared to help you
understand the retirement plan which is provided by your employer through its participation in the
Pentegra Defined Benefit Plan for Financial Institutions (formerly known as the Financial
Institutions Retirement Fund) (the “Pentegra DB Plan”).

The Pentegra DB Plan is a large, non-profit, tax-exempt pension trust which was created in 1943. It
is administered by a professional staff under the direction of a Board of Directors comprised of
presidents of Federal Home Loan Banks and officers of various participating employers.

The Pentegra DB Plan enables financial institutions and other organizations serving them to provide
for the security of their employees. It invests the contributions made to it and, under its

Comprehensive Retirement Program (a defined benefit pension Plan), it pays out retirement,
disability and death benefits.

This Summary highlights the main benefit features of your retirement plan. The Pentegra DB Plan
Regulations contain the governing provisions and should be consulted as official text in all cases.
If there is any conflict between this Summary Plan Description and the Pentegra DB Plan’s
Regulations, the Pentegra DB Plan’s Regulations will control. Either your employer or the Pentegra
DB Plan will provide you with a copy of the Regulations at your request.

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 Benefit Plan for 
	 

	 	 Financial Institutions

 

 

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Employee Eligibility
	 	 	1	 
	Service and Salary
	 	 	2	 
	- Benefit Service
	 	 	2	 
	- Vesting Service
	 	 	2	 
	- Salary
	 	 	2	 
	Vesting
	 	 	3	 
	Retirement Benefits
	 	 	4	 
	- General
	 	 	4	 
	- Normal Retirement
	 	 	4	 
	- Late Retirement
	 	 	5	 
	- Early Retirement
	 	 	6	 
	- Disability Retirement
	 	 	10	 
	- Retirement Adjustment Payment
	 	 	11	 
	- Post-Retirement Increments
	 	 	11	 
	Death Benefit
	 	 	12	 
	- Death Benefit in Active Service
	 	 	12	 
	- Death Benefit in Retirement
	 	 	12	 
	Optional Forms of Retirement Benefit
	 	 	14	 
	- Direct Rollovers
	 	 	14	 
	Paying for Your Benefits
	 	 	15	 
	Your Personal Annual Statement
	 	 	15	 
	Reinstatement of Membership and Service
	 	 	16	 
	Leaves of Absence
	 	 	17	 
	Limitations on Benefits
	 	 	18	 
	Insurance of Benefits
	 	 	19	 
	Disputed Claims Procedure
	 	 	19	 
	Qualified Domestic Relations Orders (“QDROs”)
	 	 	20	 
	Statement of ERISA Rights
	 	 	21	 
	Other Plan Information
	 	 	23	 

 

 

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

EMPLOYEE ELIGIBILITY

Each employee must become a Member when eligible and will be enrolled by his employer at that time.
An employee will be eligible for membership in the Comprehensive Retirement Program on the first
day of the month following satisfaction of his employer’s waiting period, if any. Your employer’s
current waiting period for new employees is:

Four (4) months of service

If an employee is expected by his employer to complete 1,000 hours of service in the 12 consecutive
months following his enrollment date, he will be enrolled as an active  Member and, as such, will be
entitled to the benefits described in this booklet. If the employee is not expected to complete
1,000 hours of service in this 12 consecutive month period, he will be enrolled as an inactive
Member and, as such, he will not accrue or be entitled to any retirement or death benefits (see
Article X, Section 3 of the Regulations). Subsequently, the Member will be active or inactive
depending on whether or not he completes 1,000 hours of service in each calendar year.

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

NOTE:
 Regardless of the above, an employee will not be eligible for membership while he is in a
class of employees which his employer has obtained permission to exclude (see Article II, Section 2
of the Regulations). Any such classes which your employer now excludes are listed directly below.
(If none are listed, this Note may be disregarded.)

 

1

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

SERVICE AND SALARY

Your benefits are based on your benefit service and salary. The period of benefit service is the
number of years and months of employment upon which benefits are determined under the Plan.

Benefit Service includes:

Prior Service — any or all employment prior to the date your employer joined the Pentegra DB
Plan for which your employer has purchased credit.

plus

Membership Service (or future service) — period of employment as an active Member from
enrollment to retirement, death or other termination.

For example, suppose a person joined his employer at age 35. Then 10 years later, when he was 45,
his employer joined the Pentegra DB Plan and purchased credit for his 10 years of prior service.
After 20 years of membership service he will reach the Plan’s normal retirement age (65) and will
then have 30 years of benefit service:

	 	 	 	 	 	 	 	 	 
	Prior Service

	 	+
	 	Membership Service
	 	=
	 	Benefit Service
	10 Years
	 	+
	 	20 Years
	 	=
	 	30 Years

The easy way to approximate how much benefit service you would have upon retirement at age 65 is to
subtract from 65 whatever age you were when your benefit service began.

Vesting Service is the period used to determine whether or not an employee is vested and eligible
for early retirement. Vesting is measured from the first day of the month in which you were
employed. (Refer to Page 3 describing Vesting.)

Salary is your basic annual salary rate, plus overtime, bonuses and commissions. Changes in your
basic annual salary rate which occur during the calendar year are recognized. Salary also includes
any pre-tax contributions to a Section 401(k) plan and, unless the employer elects otherwise,
pre-tax contributions to a Section 125 cafeteria plan as well as Qualified Transportation Fringe
benefits as defined under Section 132(f) of the Internal Revenue Code.

 

2

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

VESTING

“Vested” means that you have a nonforfeitable right to a retirement benefit which you will not lose
if you terminate your employment. A Member will become vested in accordance with the following
schedule:

	 	 	 	 	 
	Completed Years	 	Vested	 
	of Vesting Service	 	Percentage	 
	 
	Less than 2
	 	 	0	 
	2
	 	 	20	%
	3
	 	 	40	%
	4
	 	 	60	%
	5
	 	 	100	%

Any Member who has reached age 65 is automatically 100% vested, regardless of the number of years
of vesting service he has completed.

Any Member who terminates service after becoming fully or partially vested is entitled to receive a
retirement benefit (see the “Retirement Benefits” section). If, for example, he is 100% vested upon
termination of employment, he would be entitled to a retirement allowance at age 65 equal to 100%
of the allowance accrued to his termination date. If he is 60% vested upon termination of
employment, he would be entitled to a retirement allowance at age 65 equal to 60% of such accrued
allowance. If he is not vested at termination, he will not be entitled to any retirement benefit.

NOTE: See Reinstatement of Membership and Service explained later.

 

3

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

RETIREMENT BENEFITS

General:

The regular form of all retirement benefits provides a retirement allowance (see normal, early and
disability retirement formulas) payable for life. Instead of choosing the regular form, you may
select one of the optional forms as described in the “Optional Forms of Retirement Benefit” section
of this Summary.

All retirement allowances are in addition to Social Security, and are payable in monthly
installments for life. In addition, all retirement allowances must begin as of the April 1st of the
calendar year following the later of (i) the calendar year in which you reach age 70-1/2, or (ii)
the calendar year in which you retire (“Required Beginning Date”). However, if you are a 5% owner,
your Required Beginning Date is the April 1st of the calendar year following the calendar year in
which you reach age 70-1/2, even if you are still working.

Normal Retirement:

Upon termination of employment at or after age 65, you will be entitled to a normal retirement
benefit. The formula for determining your normal retirement allowance is:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

(a)

	 	 	

2.5	

%	 	

X
	 	
Years of Benefit Service
(up to June 30, 2008)
	 	

X
	 	High-3

Average Salary at

Termination
	 	

=
	 	Retirement

Allowance up to

June 30, 2008
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PLUS
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Years of Benefit Service
	 	 	 	High-5
	 	 	 	Retirement
	 

	 	 	 	 	 	 	 	(from July 1, 2008 to
	 	 	 	Average Salary at
	 	 	 	Allowance after
	(b)

	 	 	2.0	%	 	X
	 	termination of employment)
	 	X
	 	Termination
	 	=
	 	June 30, 2008
	 
	 	 	 	 	 	 	 	 	(a) plus (b)	 	=	 	Regular Annual Retirement Allowance

NOTE: Your total years of Benefit Service in Steps (a) and (b) cannot exceed 30 years. In addition,
please note that both the High-5 and High-3 Average Salary figures are calculated at the Member’s
termination date.

FURTHER NOTE: The normal form of payment for your Retirement Allowance up to June 30, 2008 (as
indicated in (a) above) will be a 12x payment . This portion of your benefit will also be eligible
for cost-of-living adjustments, as explained on page 11 of this summary.

The normal form of payment for your Retirement Allowance after June 30, 2008 (as indicated in (b)
above) will be a single life annuity and is not eligible for cost-of-living adjustments.

 

4

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

Example: A Member had 30 years of Benefit Service at termination of employment (25 years earned as
of June 30, 2008) and his average annual Salary for the three (3) consecutive years of highest
Salary during Benefit Service (“High-3 Average Salary”) was $32,000 and his average annual salary
for the five (5) consecutive years of highest Salary during Benefit Service (“High-5 Average
Salary”) was $27,000. His annual retirement allowance would be (a) plus (b), determined as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	High-3
	 	 	 	Retirement

	 

	 	 	 	 	 	 	 	Years of Benefit Service
	 	 	 	Average Salary
	 	 	 	Allowance up to

	 

	 	 	 	 	 	 	 	(up to June 30, 2008)
	 	 	 	at Termination
	 	 	 	June 30, 2008

	(a)

	 	 	2.5	%	 	X
	 	25 yrs. (=62.5%)
	 	X
	 	$	32,000	 	 	=
	 	$20,000
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PLUS
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Years of Benefit Service
	 	 	 	High-5
	 	 	 	Retirement

	 

	 	 	 	 	 	 	 	(from July 1, 2008 to
	 	 	 	Average Salary
	 	 	 	Allowance after

	 

	 	 	 	 	 	 	 	termination of employment)
	 	 	 	at Termination
	 	 	 	June 30, 2008

	(b)

	 	 	2.0	%	 	X
	 	5 yrs. (=10%)
	 	X
	 	$	27,000	 	 	=
	 	$  2,700
	 
	 	 	 	Regular Retirement Allowance:	 	 	 	(a) plus (b)
	 	=	 	$22,700

If you do not continue in your employer’s service after age 65, you may begin your normal
retirement allowance as described above or you may defer commencement of your allowance until any
time up to your Required Beginning Date, in which case your normal retirement allowance will be
increased actuarially.

Late Retirement:

If you continue in employment beyond the Plan’s normal retirement age (65), you will receive a
benefit determined under the employer’s benefit formula based on salary and benefit service earned
beyond age 65 until actual termination of employment (regardless of age) without any increase for
delayed payment. However, the benefit will not be less than the benefit you would have had at age
(65) actuarially increased.

 

5

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

Early Retirement:

If you leave your employer prior to age 65, after having become fully or partially vested (see Page
3), you will be entitled to an early retirement benefit. The retirement allowance payable at age 65
is equal to the vested amount of the normal retirement allowance accrued to your termination date.

Payment may begin as early as age 45, in which case the allowance otherwise payable at age 65 is
reduced by applying an early retirement factor based on your age when payments begin (see below).

July 1, 2008 Protected Frozen Benefit:

Some plan provisions, such as early retirement factors, were protected on the frozen allowance up
to June 30, 2008. This benefit is calculated as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	High-3
	 	 	 	Protected Frozen
	 

	 	 	 	Years of Benefit Service
	 	 	 	Average Salary at
	 	 	 	Allowance up to
	2.5%

	 	X
	 	(up to June 30, 2008)
	 	X
	 	June 30, 2008
	 	=
	 	6/30/2008

The Protected Retirement Benefit Allowance up to June 30, 2008 will not increase for future service
accruals or salary increases. There is a “Protected Rule of 70” early retirement reduction on the
frozen allowance up to June 30, 2008 and it is defined as follows:

Protected Rule of 70 on benefits accrued up to June 30, 2008:

	 	1.	 	If the sum of the Member’s age and years of vesting service at termination of employment is
at least 70, his early retirement allowance will be the allowance payable at age 65, reduced
by 1.5% per year for each year he is under age 65.
	 
	 	2.	 	If the sum of the Member’s age and years of vesting service at termination of employment is
less than 70, his early retirement allowance will be the allowance payable at age 65, reduced
by 3% per year for each year he is under age 65.

For any benefits accrued after July 1, 2008 through the date of termination, a “New Rule of
70” applies. The “New Rule of 70” early retirement reduction is defined as follows:

New Rule of 70 on benefits accrued after June 30, 2008:

	 	1.	 	If the sum of the Member’s age and years of vesting service at termination of employment is
at least 70, his early retirement allowance will be the allowance payable at age 65, reduced
by 3% per year for each year he is under age 65.
	 
	 	2.	 	If the sum of the Member’s age and years of vesting service at termination of employment is
less than 70, his early retirement allowance will be the allowance payable at age 65, reduced
by Actuarial Equivalent  factors for each year he is under age 65. (see table after Example 2
below)

Example 1: A Member terminates employment at age 61 after 26 years of vesting service and 25 years
of benefit service, where 10 years of service were earned up to June 30, 2008. His High-3 Average
Salary at July 1, 2008 is $60,000, his High-3 Average Salary at termination is $78,000 and his
High-5 Average Salary at termination is $74,000.

 

6

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

The Protected Frozen Allowance up to June 30, 2008 used to determine the Protected Rule of 70
early retirement reduction factors is determined as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	High-3	 	 	 	Protected
	 	 	 	 	 	 	 	 	Years of Benefit Service	 	 	 	Average Salary up	 	 	 	Allowance up to
	 	 	 	 	 	 	 	 	(up to June 30, 2008)	 	 	 	to June 30, 2008	 	 	 	June 30, 2008
	 	 	 	2.5	%

	 	X
	 	10 yrs. (=25%)
	 	X
	 	$60,000	 	=
	 	 	$15,000	 
	 
	 	 	 	 
	His annual retirement allowance commencing at age 65 would be (a) plus (b), determined as follows:
	 
	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	High-3	 	 	 	Retirement
	 	 	 	 	 	 	 	 	Years of Benefit Service	 	 	 	Average Salary at	 	 	 	Allowance up to
	 	 	 	 	 	 	 	 	(up to June 30, 2008)	 	 	 	Termination	 	 	 	June 30, 2008
	(a)

	 	 	2.5	%	 	X
	 	10 yrs. (=25%)
	 	X
	 	$78,000	 	=
	 	 	$19,500	 
	 
	 	 	 	 
	PLUS
	 
	 	 	 	 
	 	 	 	 	 	 	 	 	Years of Benefit Service	 	 	 	High-5	 	 	 	Retirement
	 	 	 	 	 	 	 	 	(from July 1, 2008 to	 	 	 	Average Salary at	 	 	 	Allowance after
	 	 	 	 	 	 	 	 	termination of employment)	 	 	 	Termination	 	 	 	June 30, 2008
	(b)

	 	 	2.0	%	 	X
	 	15 yrs. (=30%)
	 	X
	 	$	74,000	 	 	=
	 	 	$22,200	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	Regular Retirement Allowance:	 	(a) +  (b)	 	=	 	 	$41,700	 

NOTE: Total Benefit Service is limited to 30 years.

Because the sum of the Member’s age and vesting service at termination is at least 70 (61 + 26 =
87), if the Member elects to have his retirement allowance begin immediately, the allowance
payable at age 65 would be reduced as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Protected	 	 	 	 	 	 	 	 
	 	 	Frozen	 	 	 	 	 	 	 	Regular Retirement
	 	 	Allowance up to	 	 	 	Early Retirement	 	 	 	Allowance Payable
	 	 	June 30, 2008	 	 	 	Factor (Age 61)	 	 	 	Immediately (Age 61)
	 
	 	 	 	 	 	 	 	 
	(a)

	 	$	15,000	 	 	X
	 	94% (1.5% / yr reduction)
	 	=
	 		$14,100	 

PLUS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Regular	 	 	 	 	 	 	 	 
	 	 	Retirement	 	 	 	 	 	 	 	Regular Retirement
	 	 	Allowance up to	 	 	 	Early Retirement	 	 	 	Allowance Payable
	 	 	June 30, 2008	 	 	 	Factor (Age 61)	 	 	 	Immediately (Age 61)
	 
	 	 	 	 
	(b)

	 	$26,700*
	 	X
	 	88% (3% / yr reduction)
	 	=
	 	 	$23,496	 

	 	 	 
	*	 	Excludes protected frozen allowance up to June 30, 2008 shown above ($15,000). The protected
frozen allowance up to June 30, 2008 in (a) is entitled to the Protected Rule of 70 reduction
factor and the remainder of the benefit in (b) is entitled to the New Rule of 70 reduction
factor. ($41,700 = $15,000 + $26,700)

	 	 	 	 	 	 	 	 	 
	Immediate Retirement Allowance:

	 	(a) + (b)
	 	=
	 	 	$37,596	 

Example 2: A Member terminates employment at age 52 after 16 years of vesting service and 15 years
of benefit service, where 10 years of service was earned up to June 30, 2008. His High-3 Average up
to June 30, 2008 is $60,000, his High-3 Average Salary at termination is $78,000 and his High-5 Average Salary at termination is $74,000.

 

7

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

The Protected Allowance up to June 30, 2008 used to determine the Protected Rule of 70 early
retirement reduction factors is determined as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	High-3	 	 	 	Protected
	 	 	 	 	 	 	 	 	Years of Benefit Service	 	 	 	Average Salary up	 	 	 	Allowance up to
	 	 	 	 	 	 	 	 	(up to June 30, 2008)	 	 	 	to June 30, 2008	 	 	 	June 30, 2008
	 	 	 	2.5

	%

	 	X
	 	10 yrs. (=25%)
	 	X
	 	 	$60,000	 	 	=
	 	 	$15,000	 
	 
	 	 	 	 	 	 	 	 
	His annual retirement allowance commencing at age 65 would be (a) plus (b), determined as follows:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Retirement
	 	 	 	 	 	 	 	 	Years of Benefit Service	 	 	 	High-3	 	 	 	Allowance up to
	 	 	 	 	 	 	 	 	(up to June 30, 2008)	 	 	 	Average Salary	 	 	 	June 30, 2008
	 
	 	 	 	 	 	 	 	 
	(a)

	 	 	2.5	%	 	X
	 	10 yrs. (=25%)
	 	X
	 	 	$78,000	 	 	=
	 	 	$19,500	 
	 
	 	 	 	 	 	 	 	 
	PLUS
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Years of Benefit Service	 	 	 	 	 	 	 	 	 	Retirement
	 	 	 	 	 	 	 	 	(from July 1, 2008 to	 	 	 	High-5	 	 	 	Allowance after
	 	 	 	 	 	 	 	 	termination of employment)	 	 	 	Average Salary	 	 	 	June 30, 2008
	 
	 	 	 	 	 	 	 	 
	(b)

	 	 	2.0	%	 	X
	 	5 yrs. (=10%)
	 	X
	 	 	$74,000	 	 	=
	 	 	$  7,400	 
	 
	 	 	 	 
	 	 	 	 	 	 	Regular Retirement Allowance:	 	 	 	 	(a) + (b)	 	 	=	 	 	$26,900	 

NOTE: Total Benefit Service is limited to 30 years.

Because the sum of the Member’s age and vesting service at termination is less than 70 (52 + 16 =
68), if the Member elects to have his retirement allowance begin immediately, the allowance
payable at age 65 would be reduced as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Protected	 	 	 	 	 	 	 	Regular Retirement
	 	 	Allowance up to	 	 	 	Early Retirement	 	 	 	Allowance Payable
	 	 	June 30, 2008	 	 	 	Factor (Age 52)	 	 	 	Immediately (Age 52)
	 
	 	 	 	 	 	 	 	 
	(a)

	 	 	$15,000	 	 	X
	 	61% (3% / yr reduction)
	 	=
	 	 	$9,150	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Regular	 	 	 	 	 	 	 	Regular Retirement
	 	 	Retirement	 	 	 	Early Retirement	 	 	 	Allowance Payable
	 	 	Allowance	 	 	 	Factor (Age 52)	 	 	 	Immediately (Age 52)
	 
	 	 	 	 	 	 	 	 
	(b)

	 	$11,900*
	 	X
	 	41% (AE reduction)
	 	=
	 	 	$4,879	 

	 	 	 
	*	 	Excludes protected allowance up to June 30, 2008 shown above ($15,000). The protected allowance
up to June 30, 2008 in (a) is entitled to the Protected Rule of 70 reduction factor and the
remainder of the benefit in (b) is entitled to the New Rule of 70 reduction factor. ($26,900 =
$15,000 + $11,900)

	 	 	 	 	 	 	 	 	 
	Immediate Retirement Allowance:

	 	(a) + (b)
	 	=
	 	 	$14,029	 

 

8

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

The Actuarial Equivalent Reduction factor is determined as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Age When	 	 	 	 	 	Age When	 	 	 	 	 	 	Age When	 	 	 	 
	Allowance	 	 	 	 	 	Allowance	 	 	 	 	 	 	Allowance	 	 	 	 
	Begins	 	Factor	 	 	Begins	 	 	Factor	 	 	Begins	 	 	Factor	 
	 
	 	 	 	 
	45
	 	 	20	%	 	 	52	 	 	 	41	%	 	 	59	 	 	 	66	%
	46
	 	 	23	%	 	 	53	 	 	 	44	%	 	 	60	 	 	 	70	%
	47
	 	 	26	%	 	 	54	 	 	 	47	%	 	 	61	 	 	 	76	%
	48
	 	 	29	%	 	 	55	 	 	 	50	%	 	 	62	 	 	 	82	%
	49
	 	 	32	%	 	 	56	 	 	 	54	%	 	 	63	 	 	 	88	%
	50
	 	 	35	%	 	 	57	 	 	 	58	%	 	 	64	 	 	 	94	%
	51
	 	 	38	%	 	 	58	 	 	 	62	%	 	 	65	 	 	 	100	%

(Interpolation is made to the nearest month.)

 

9

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

Disability Retirement:

If, after completing one year of membership service or having been credited with five (5) years of
benefit service (not counting service during a leave of absence) but before reaching age 65, you
have to stop working because of a disability, you may be entitled to a disability retirement
benefit. First, you must file an application with the Pentegra DB Plan within 13 months after the
date you had to stop working. Second, you must satisfy either Test A or B below:

Test A — Certification by doctors designated by the Pentegra DB Plan that your disability (i)
prevents you from doing the kind of work for which you are fitted or trained, and (ii) is expected
to last at least 12 months from the date you had to stop working or to result in death.

or

Test B — Proof that you are eligible for disability insurance benefits under Title II of the
Federal Social Security Act.

Generally, the annual disability retirement allowance payable immediately, and for as long as you
are disabled, is the higher of (i) an amount equal to the normal retirement allowance accrued to
your termination date, or (ii) 30% of average annual salary for the five (5) highest paid
consecutive years of benefit service (“High-5 Average Salary”). However, it cannot be more than
what your normal retirement allowance would have been if you had stayed in service to age 65.

You may be required to provide evidence as often as annually that you continue to be disabled.

NOTE: Notwithstanding the foregoing, if you are on a medical leave of absence which directly
results in a subsequent disability, you may be entitled to a disability benefit.

 

10

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

Retirement Adjustment Payment:

(Applicable only to those enrolled prior to July 1, 1983)

If you retire after age 55 (whether normal, early or disability retirement), you will be entitled
to a onetime Retirement Adjustment Payment. Please note that under the provisions of the Plan, you
are deemed to be retired upon your termination of employment with a deferred vested benefit. The
Retirement Adjustment Payment is a single lump sum equal to three months’ regular retirement
allowance payable when your allowance commences.

To illustrate, the annual allowance upon normal retirement would be calculated as shown on Page 4.
Assume the annual retirement allowance was $22,700. In addition to such allowance, the member would
receive a Retirement Adjustment Payment as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Regular	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Retirement	 
	 	Annual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Adjustment	 
	 	Allowance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Payment	 
	 
	 	$22,700

	 	/
	 	 	12	 	 	=
	 	$1,892 (per month)
	 	X
	 	3    =
	 	$	5,676	 	 

NOTE: The Retirement Adjustment Payment only applies to your Frozen Protected Benefit that was
earned up to June 30, 2008.

Post-Retirement Increments:

As a retiree, other than a disability retiree, who is receiving allowance payments you will be
entitled to a payment of 1% of your annual retirement allowance at the end of the calendar year in
which you attain age 66. This is a cumulative increment so that the following year, when you are
age 67, the payment will be 2%, then 3%, then 4%, etc. Such increasing payments will continue to be
made as long as you live. For example:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Incremental	 
	Your	 	Increment	 	 	Annual	 	 	Payment at	 
	Age	 	Rate	 	 	Allowance	 	 	Year-End	 
	66
	 	 	1	%	 	$	22,700	 	 	$	227	 
	67
	 	 	2	%	 	$	22,700	 	 	$	454	 
	68
	 	 	3	%	 	$	22,700	 	 	$	681	 

Your age is always measured at the end of the calendar year to determine your applicable rate.

NOTE: Each Post-Retirement Increment is based on the retirement allowance you actually receive.
Similarly, it would continue in the same manner to your surviving contingent annuitant if you had
elected such an optional form of retirement benefit (see Article VI of the Regulations) based on
the contingent annuitant’s allowance.

FURTHER NOTE: Post-Retirement Increments only apply to the portion of your Protected Frozen
Benefit that was earned up to June 30, 2008.

 

11

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

DEATH BENEFIT

In Active Service:

If a vested Member dies in active service, his beneficiary would be entitled to a lump sum death
benefit equal to 100% of the Member’s last 12 months’ salary, plus an additional 10% of such salary
for each year of benefit service until a maximum of 300% of such salary is reached for 20 or more
years, plus a refund of his own contributions, if any, with interest.

Example: A Member dies after 15 years of benefit service and his last 12 months’ salary is $32,000.
His beneficiary would get:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Last 12 Months	 	 	 	Lump Sum	 
	 	 	 	 	Salary	 	 	 	Death Benefit	 
	 
	250% [(15/10=1.5)+1=2.5]

	 	X
	 	$32,000	 	=
	 	$80,000	 

Either the Member or beneficiary may elect to have his benefit or the retirement death benefit
described below paid in the form of installments over a period of up to 10 years or a lifetime
annuity. (See the Regulations for further explanation).

If a Member dies after becoming eligible for early retirement, his beneficiary would receive the
higher of (i) the active service death benefit described above, or (ii) the retirement death
benefit described below (as if the Member had retired on the first day of the month in which he
died).

In Retirement:

(Applicable only to your Protected Frozen Allowance accrued up to June 30, 2008)

The regular form of all retirement benefits (normal, early or disability) includes not only a
retirement allowance, but also a lump sum retirement death benefit which is 12 times the annual
retirement allowance less the sum of such allowance payments made before death. Please note that
this death benefit does not apply in the event you elect to receive your benefit under one of the
“Optional Forms of Retirement Benefit” (see Page 13) in lieu of the regular form.

Example: A Member dies two (2) years after retirement. His regular annual retirement allowance was
$10,000. The Member’s death benefit is illustrated below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Annual	 	 	 	 	 	 	 	 	 	Initial Death	 	 	 	Allowance	 	 	 	 
	Retirement	 	 	 	 	 	 	 	 	 	Benefit At	 	 	 	Payments	 	 	 	Lump Sum
	Allowance	 	 	 	 	 	 	 	 	 	Retirement	 	 	 	For 2 Years	 	 	 	Death Benefit
	 	 	 	 
	$10,000

	 	X
	 	 	12	 	 	=
	 	$	120,000	 	 	less
	 	$	20,000	 	 	=
	 	$100,000

All retirement allowances continue for life, even though under the regular form there would be no
death benefit payable after 12 years.

NOTE: If a retiree should die before his allowance payments start (as in the case of an early or
normal retiree with a deferred allowance), the death benefit would be 12 times the regular annual
allowance which would have been payable had his allowance commenced as of the first day of the
month in which he died.

FURTHER NOTE: The retirement death benefit described above only applies to the portion of your
Protected Frozen Benefit that was earned up to June 30,
2008.

 

12

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

In
Retirement:

(Applicable to your accrued benefits after June 30, 2008)

If you die before receiving benefits under the Plan and you are married at the time of your death,
then your spouse will be entitled to the “minimum spouse’s death benefit.” The “minimum spouse’s
death benefit” is equal to the amount that would have been paid to your spouse if you had begun
receiving distributions under a joint and 50% survivor annuity. For example, suppose that if you
were to retire, you would receive an annuity paying you $1,000 a month for your life and then upon
your death, $500 each month to your spouse (this is a joint and 50% survivor annuity). In this
example, the amount payable to your spouse is the “minimum spouse’s death benefit.”

If you wish to designate a beneficiary other than your spouse, then your spouse must irrevocably
consent to waive any right to the death benefit. Your spouse’s consent must be in writing, be
witnessed by a notary or a plan representative and acknowledge the specific non-spouse beneficiary.
In addition, you may elect a beneficiary other than your spouse without your spouse’s consent if
your spouse cannot be located.

If you are married and you change the designation of the beneficiary of the “minimum spouse’s death
benefit,” then your spouse must again consent to the change subject to the rules above.

If you are not married, then you may designate the beneficiary on a form to be supplied to you by
the Pentegra DB Plan.

In the event you are not survived by a Spouse, such a benefit will be paid in the following order
of priority to:

(a) Designated beneficiary;

(b) Your estate.

 

13

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

OPTIONAL FORMS OF RETIREMENT BENEFIT

At any time before your retirement allowance begins, you may elect to convert your regular
retirement allowance (an allowance payable for your lifetime) to an optional form of benefit. The
amount of each Option in which you are interested will be determined and communicated to you at
retirement.

These Options are:

	1	–   	A higher allowance payable for life and no further benefits upon death. This option is
available only on your Protected Frozen Allowance accrued up to June 30, 2008.

	2	–   	An allowance payable for life. If you die before 144 monthly installments have been paid,
the remaining value of such unpaid installments would be paid in a lump sum to your
beneficiary. This option is available only on the portion of your benefit accrued after June
30, 2008.

	3	–   	An allowance payable for life. If you die before 120 monthly installments have been paid,
the commuted value of such unpaid installments would be paid in a lump sum to your
beneficiary.

	4	–   	A joint and survivor allowance which would continue at the rate of 100% to your contingent
annuitant if he or she survives you. If both you and your contingent annuitant die before 120
monthly installments have been paid, the commuted value of such unpaid installments would be
paid in a lump sum to your beneficiary.

	5	–   	A joint and survivor allowance which would continue at the rate of 50% to your contingent
annuitant if he or she survives you.

	6	–   	A single lump sum settlement in lieu of any monthly allowance and death benefit. This
Option may be elected if you retire after reaching age 59-1/2, or if you are an early retiree
and defer commencement of your benefit until such age. The election of this Option requires
the written consent of your spouse, if any.

	7	–   	A partial lump sum settlement equal to 25%, 50% or 75% of the total benefit and a monthly
allowance for the remainder of the benefit which must commence at the time of the partial lump
sum settlement. This Option may be elected if you retire after reaching age 59-1/2 or if you
are an early retiree and defer commencement of your benefit until such age. The election of
this Option requires written consent of your spouse, if any.

NOTE: The death benefit of a deceased retiree or Member who was eligible for early retirement, who
(i) is survived by a spouse, and (ii) has not made any election with respect to his death benefit
or retirement benefit, will be paid to the surviving spouse in an amount equal to a lifetime
annuity of at least 50% of the retiree’s allowance as though he elected Option 5 above. This
benefit may be paid in the form of a lump sum or in installments of
equivalent value.

DIRECT ROLLOVERS

If you select payment option numbers 6 or 7 above, you may request that a direct rollover of all or
a portion of the distribution be made to either an Individual Retirement Account (IRA) or another
qualified plan, which is will to accept the transfer of assets and is permissible under the
Pentegra DB Plan. A direct rollover will result in no tax being due until you withdraw the funds
from the IRA or other qualified plan. Under certain circumstances, all or a portion of the amount
to be distributed may not qualify for a direct rollover. For example, a distribution of less than
$200 will not be eligible for a direct rollover. If you elect to receive the distribution, rather
than request a direct rollover, then 20% of the distribution amount will be withheld for federal
income tax purposes.

 

14

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

PAYING FOR YOUR BENEFITS

All contributions made to the Plan on your behalf are actuarially determined. Your employer has
elected to pay the full cost of your benefits. You, as an employee, do not contribute while on the
“non-contributory basis.”

Special Note to any Member who has “Accumulated Contributions” with the Pentegra DB Plan:

If you made personal contributions to the Pentegra DB Plan while your present or previous employer
was on the contributory basis and if those contributions have not been refunded to you, you are
fully vested in the value of such contributions plus interest (“accumulated contributions”). This
means that if you terminate employment, you may request a refund of such accumulated contributions.
If you terminate
before becoming fully or partially vested in a retirement benefit, the refund will be in lieu of
all other benefits. If you terminate after becoming fully or partially vested in an early or normal
retirement benefit (refer to Page 3 describing Vesting), the refund will be in lieu of that portion
of your retirement benefit which is attributable to your accumulated contributions. The remaining
portion, attributable to your employer’s contributions, will be payable as a reduced retirement
benefit.

Your accumulated contributions will be shown on your Personal Annual Statement (see below).

YOUR PERSONAL ANNUAL STATEMENT

(Keeping You Informed)

Every year the Pentegra DB Plan prepares a Personal Annual Statement for each Member. This
statement shows as of each January 1 your periods of accrued vesting and benefit service and the
status of your retirement and death benefits. These statements are sent to your employer for
distribution in or about the following March.

 

15

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

REINSTATEMENT OF MEMBERSHIP AND SERVICE

If you leave employment before becoming vested (see Page 3), but become reemployed by the same or
another employer participating in this Program, you will be reenrolled immediately.

If the period of your break in service (i.e., the period between your termination and reemployment)
was not longer than 60 months, your previous Vesting Service will be reinstated upon your
reemployment. If your break in service was not longer than 12 consecutive months, your previous
Vesting Service will be reinstated upon your reemployment. In addition, you will also receive
Vesting Service credit for the period of your break. If the period of your break in service
exceeded 60 months but was not longer than the period of your Vesting Service before becoming
vested, your previous Vesting Service will be reinstated upon your reemployment. If the period of
your break in service was equal to or exceeded the greater of 60 consecutive months or your
previous Vesting Service, upon reemployment you will be treated as a new employee upon
reemployment. In other words, no prior Vesting Service will be credited to you.

The following chart should assist you in understanding your options:

	 	 	 	 	 
	Length of Break in Service for a	 	Vesting Service Prior to the	 	 
	Non-Vested Member	 	Break in Service	 	Period of the Break in Service
	 
	 	 	 	 
	Less than 60 consecutive months

	 	Will be reinstated upon a
Member’s reemployment.
	 	Credit will not be given for the
period of break in service.
	 
	 	 	 	 
	Less than 12 consecutive months

	 	Will be reinstated upon a
Member’s reemployment.
	 	Credit will be given for the period
of the break in service.
	 
	 	 	 	 
	More than 60 consecutive
months, but not more than total
Vesting Service up to the break in
service

	 	Will be reinstated upon a
Member’s reemployment.
	 	Credit will not be given for the
period of the break in service.
	 
	 	 	 	 
	More than the greater of:

	 	Will NOT be reinstated upon a
Member’s reemployment.
	 	Credit will not be given for the
period of break in service.
	 
	 	 	 	 
	a) 60 consecutive months; or
	 	 	 	 
	 
	 	 	 	 
	b) Total Vesting Service prior to
the break in service

	 	 	 	Upon reemployment, the Member
will be considered a new
employee.

Upon reinstatement of your Vesting Service, your previous Benefit Service will also be reinstated
if you repay within five years of your reemployment or the date you incurred a break in service of
at least 60 months, any accumulated contributions which were refunded to you with interest to the
date of such repayment.

For example, if you terminated service and had completed one year (i.e., 12 months) of Vesting
Service, you would not be vested in a retirement benefit and would be entitled only to a refund of
your own contributions, if any, plus interest. However, if you returned to service with any
participating employer within 60 months, your previous Vesting Service would be reinstated and your
previous Benefit Service would also be reinstated if you repaid with interest any contributions
that had been refunded to you.

If you leave employment with a vested benefit, commence receiving benefits, and then are reemployed
as an active Member by a participating employer, you will be reenrolled immediately and given the
option, within six months following reemployment as an active Member, to make an irrevocable
election to continue to receive the payment of your Retirement Allowance or to suspend the payment
until subsequent termination of service. If no election is made, the payment of your Retirement
Allowance will continue in
the form of payment previously chosen. Upon your subsequent retirement, your retirement benefit
will be based upon your Benefit Service before and after your prior retirement and your Salary
during that service, but will be actuarially reduced for any such benefit already paid.

 

16

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not 

completed 5 years of vesting service as of July 1, 2008”

LEAVES 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. Both vesting and benefit service continue to accrue during this leave.
	 
	 	 
	Type 1-A.

	 	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 continue, if any, to be made. In addition, vesting and
benefit service continue to accrue. To qualify for benefits under Type 1-A, in general, a Member must return to the service of his
employer within 90 days of his discharge from military service.
	 
	 	 
	Type 2.

	 	Non-military granted to a Plan Member for up to one year during which all contributions are discontinued. During this leave, vesting
service continues to accrue, but benefit service does not. The accrual of benefit service will resume when your leave terminates and
your contributions resume.
	 
	 	 
	Type 3.

	 	Military leave to a Plan Member during which all contributions are discontinued. During this leave, vesting service continues to
accrue, but benefit service generally does not. The accrual of benefit service will resume when your leave terminates and your
contributions resume.

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Vesting	 	Benefit
	Type of Leave	 	Duration	 	Contributions	 	Service	 	Service
	 
	 	 	 	 	 	 	 	 
	NON-MILITARY LEAVE:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1
	 	Up to one year	 	Will continue to be made	 	Will continue to accrue	 	Will continue to accrue
	 
	 	 	 	 	 	 	 	 
	2
	 	Up to one year	 	Will be discontinued	 	Will continue to accrue	 	Will not continue to accrue
	 
	 	 	 	 	 	 	 	 
	MILITARY LEAVE:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1-A
	 	Can vary	 	Will continue to be made	 	Will continue to accrue	 	Will continue to accrue
	 
	 	 	 	 	 	 	 	 
	3
	 	Can vary	 	Will be discontinued	 	Will continue to accrue	 	Will not continue to accrue

 

17

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

LIMITATIONS ON BENEFITS

	•	 	No benefit is payable by the Pentegra DB Plan unless the required contributions and application
forms have been received by the Plan.
	 
	•	 	Internal Revenue Service (IRS) requirements impose certain limitations on the amount of benefits
that
may be paid under this and other qualified retirement plans. (See Article XI of the Pentegra DB
Plan
Regulations.) These limitations normally affect only the highest-paid employees and are subject
to adjustment in accordance with IRS regulations. The dollar limit on annual benefits payable
from a defined benefit plan is $195,000 in 2009 ($185,000 in 2008), actuarially reduced for
benefits commencing before age 62 and increased for benefits commencing after age 65. If an
employee has less than 10 years of vesting service or is under age 65 when he retires, or if his
employer has two (2) plans in effect, his benefits are subject to further restrictions.
	 
	•	 	The Pentegra DB Plan, by law, cannot recognize annual compensation in excess of a certain dollar
limit. The limit for the 2009 limitation year is $245,000 ($230,000 for the 2008 limitation year).
After 2009, the compensation dollar limit may be adjusted by the IRS.
	 
	•	 	If an employer should withdraw from the Pentegra DB Plan (see Article XII of the Regulations),
and establish a comparable defined benefit plan as a qualified successor plan, all liabilities of
such employer under the Pentegra DB Plan must be transferred to the qualified successor plan. If an
employer should withdraw from the Pentegra DB Plan without establishing a qualified successor Plan,
all liabilities of the employer under the Pentegra DB Plan must be annuitized through an insurance
company selected by the Pentegra DB Plan. Limits may be imposed upon the benefits of certain
higher-paid employees if an employer withdraws from the Pentegra DB Plan within 10 years after the
later of its commencement date or the effective date of any change which increases benefits. (See
Article XI, Section 1(c) of the Regulations).
	 
	•	 	Amounts payable by the Pentegra DB Plan 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.
	 
	•	 	Your employer’s continued participation is subject to IRS qualifications and other regulations
it may impose.
	 
	•	 	The limitations on benefits imposed by the IRS are subject to changes on an annual basis.

 

18

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

INSURANCE OF BENEFITS

Benefits under the Plan are insured by the Pension Benefit Guaranty Corporation (PBGC) if the
Pentegra DB Plan terminates. Generally, the PBGC guarantees most vested normal retirement age
benefits, early retirement benefits, and certain disability and survivor pensions. However, the
PBGC does not guarantee all types of benefits under covered plans, and the amount of benefit
protection is subject to certain limitations.

The PBGC guarantees vested benefits at the level in effect on the date of Plan termination.
However, if prior to the termination of a plan, the employer has been participating for less than
five (5) years, or if benefits have been increased within the past five years, the whole amount of
the vested benefits or the vested increase may not be guaranteed. In addition, there is a ceiling
on the amount of monthly benefit the PBGC guarantees, which is adjusted periodically. A withdrawal
of your employer from participation in the Pentegra DB Plan is not a plan termination under this
paragraph, and only those benefits provided under Article XII of the Pentegra DB Plan Regulations
are payable in the event of such a withdrawal.

For more information on the PBGC insurance protection and its limitations, ask the Plan
Administrator or the PBGC. Inquiries to the PBGC should be addressed to the PBGC=s Technical
Assistance Division, 1200 K Street N.W., Suite 930, Washington, D.C. 20005 — 4026 or call
202-326-4000 (not a toll free number). TTY/TTD users may call the federal relay service toll free
at 1-800-877-8339 and ask to be connected to
202-326-4000. Additional information about the PBGC’s pension insurance program is available
through the PBGC’s website on the Internet at http://www.pbgc.gov.

DISPUTED CLAIMS PROCEDURE

If you disagree with the Pentegra DB Plan with respect to any benefit to which you feel you are
entitled, you should make a written claim to the President of the Pentegra DB Plan, who holds
discretionary authority to approve or deny the claim.. If your claim is denied, you will receive
written notice from him explaining the reason for the denial within 90 days after the claim is
filed, which sets forth, in an understandable manner, the following information:

	•	 	The specific reason(s) for the denial of the claim;

	•	 	Reference to the specific plan provision on which the denial is based;

	•	 	A description of any additional material or information necessary for the claimant to
perfect the claim and an explanation of why that material or information is necessary; and

	•	 	A description of the Plan’s review procedures and the time limits applicable to those
procedures, including a statement of the claimant’s right to bring a civil action under
ERISA Section 502(a) following a denial on review.

The President’s decision will be final unless you appeal such decision in writing to the Retirement
Committee of the Board of Directors of the Pentegra DB Plan at 108 Corporate Park Drive, White
Plains, New York 10604, within 60 days after receiving the notice of denial. The written appeal
should contain all information you wish to be considered. The Retirement Committee 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 Committee’s decision will be final. In the case of a decision on
appeal upholding the President’s initial denial of the claim, the President’s notice of its
decision on appeal shall set forth, in an understandable manner, the following information:

	•	 	The specific reason(s) for the decision on appeal;

	•	 	Reference to the specific Plan provision on which the decision on appeal is based;

	•	 	A statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other information
relevant to the claim for benefits; and

	•	 	A statement describing any voluntary appeal procedures (including voluntary
arbitration or any other form of dispute resolution) offered by the Plan and the
claimant’s right to obtain information sufficient to enable you or your beneficiary to
make an informed judgment about whether to submit a benefit dispute to the voluntary level
of appeal, and a statement of the claimant’s right to bring an action under ERISA Section
502(a).

 

19

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

QUALIFIED DOMESTIC RELATIONS ORDERS (“QDROS”)

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

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

 

20

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

STATEMENT OF ERISA RIGHTS

As a Member in the Comprehensive Retirement Program, you are entitled to certain rights and
protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that
all Members will be entitled to:

Receive Information About Your Plan and Benefits

	 	•	 	Examine, without charge, at the Plan Administrator’s office or at other specified
locations, all documents governing the Plan, and a copy of the latest annual report (Form
5500 Series) filed by the Plan Administrator with the U.S. Department of Labor and
available at the Public Disclosure Room of the Employee Benefits Security Administration.
	 
	 	•	 	Obtain, upon written request to the Plan Administrator, copies of documents governing
the operation of the Plan and copies of the latest annual report (Form 5500 Series) and
updated summary plan description. 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 this summary annual report.
	 
	 	•	 	Obtain, without charge, a statement telling you whether you have a vested right to
receive a pension at normal retirement (age 65) and if so, what your benefits would be at
that time if you stop working under the Plan now. If you do not have a vested right to a
pension, the statement will tell you how many more years you have to work to get such a
right. This type of statement is provided automatically to each Member once a year (see
“Your Personal Annual Statement” as described earlier).

Prudent Actions by Plan Fiduciaries

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”
of the
Plan, have a duty to do so prudently and in the interest of you and other Plan Members and
beneficiaries.
No one, including your employer or any other person, may fire you or otherwise discriminate against
you in any way to prevent you from obtaining a pension benefit or exercising your rights under
ERISA.

Enforce Your Rights

If your claim for a pension benefit is denied in whole or in part, you have a right to know why
this was done, to obtain copies of documents relating to the decision without charge, and to appeal
any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request
a copy of plan documents or the latest annual report 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 Plan 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, after you have complied with the remedies
prescribed in the Plan’s
QDRO Procedures and Disputed Claims Procedure outlined in this 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 Plan’s “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 these costs and fees (for example, if
it finds your claim is frivolous).

 

21

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

Assistance with Your Questions

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, or if you need assistance in
obtaining documents from the Plan Administrator, 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. You may also obtain certain publications
about your rights and responsibilities under ERISA by calling the publications hotline of the
Employee Benefits Security Administration.

This Statement of ERISA Rights is required by Federal law and regulations.

 

22

 

“Employees hired prior to July 1, 2008 who have not attained age 50 or have not

completed 5 years of vesting service as of July 1, 2008”

OTHER PLAN INFORMATION

Plan Name:

Pentegra Defined Benefit Plan for Financial Institutions as adopted by

Federal Home Loan Bank of New York

Employer:

Federal Home Loan Bank of New York

101 Park Avenue
 New York, NY 10178-0599

Telephone Number – 212-681-6000

Plan Sponsor:

The Comprehensive Retirement Program is sponsored by the –

Pentegra Defined Benefit Plan for Financial
Institutions 
108 Corporate Park Drive 

White Plains, New York 10604 

Telephone Number 914-694-1300

Employer Identification Number – 13-5645888

Plan Number – 001

Plan Year End – June 30

Plan Administrator:

The Plan Administrator is the President of the Pentegra DB Plan, whose place of business is the
office of the Pentegra Defined Benefit 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 a Plan Trustee.

Board of Directors:

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

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.

 

23

 

	 	 	 	 	 
	

	 	
Our difference is your advantage
 
	 	Pentegra Retirement Services

108 Corporate Park Drive

White Plains, NY 10604

(800) 872-3473

www.pentegra.comExhibit 10.08

Exhibit 10.08

PENTEGRA RETIREMENT SERVICES

Summary Plan Description

Pentegra

Defined Contribution Plan

for Financial Institutions

as adopted by:

Federal Home Loan Bank of New York

 

 

 

SUMMARY PLAN DESCRIPTION

for

Federal Home Loan Bank of New

York New York, NY

September 1, 2008

Pentegra Defined Contribution Plan

for Financial Institutions

108 Corporate Park Drive

White Plains, NY 10604

 

 

 

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 New York 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 the date you complete three months 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.
However, certain groups of employees are not eligible for membership in the Plan. Please refer to the “Determining Your Eligibility” section of this Summary.
	 
	 	 
	PLAN SALARY

	 	Plan Salary is defined as your basic salary rate, reflecting changes that occur 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 19% (in 1% increments) of Plan Salary. If you are at least age 50, you may elect to make catch-up contributions ($5,000 for 2008, indexed).
	 
	 	 
	 

	 	Employer — Your employer will contribute an amount equal to the greater of (A) or (B)
	 
	 	 
	 

	 	(A)   (i) 100% of your contributions through your 3rd year of employment; 

	 

	 	        (ii) 150% of your contributions during your 4th and 5th years of
Employment; and 

	 

	 	     (iii) 200%of your contributions starting with your 6th year of
employment.

	 
	 	 
	 

	 	OR
	 
	 	 
	 

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

	 
	 	 
	 

	 	This percentage rate applies to the first 3% of your Plan Salary (see the “Plan Salary” section of this Summary).

In addition, your employer may, in its sole discretion, make a profit sharing contribution to the Plan. You will be eligible to receive a profit sharing contribution if you are employed on the last day of the plan year, retire, die or become totally and permanently disabled prior to December 31 of the year for
which the profit sharing contributions are being made to the Plan by your employer.
	 
	 	 
	VESTING

	 	You will be 100% vested in any employer matching and/or profit sharing contributions immediately upon enrollment in the Plan. You are always 100% vested in any contributions you make to the Plan. 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.
	 
	 	 
	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.
	 
	 	 
	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
	 	 	8	 
	• Upon Disability
	 	 	8	 
	• Upon Death
	 	 	9	 
	Borrowing from Your Account
	 	 	10	 
	• Loans
	 	 	10	 
	Plan Limitations
	 	 	11	 
	Other Information
	 	 	12	 
	• Top Heavy Information
	 	 	12	 
	• Disputed Claims Procedure
	 	 	12	 
	• Qualified Domestic Relations Orders (QDRO’s)
	 	 	12	 
	Members Rights
	 	 	13	 
	• Statement of ERISA Rights
	 	 	13	 
	Plan Information
	 	 	14	 

 

 

 

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 the date you complete three months 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.
	 
	 	 
	 

	 	In order for you to complete three months of employment, you must complete at least 250 hours of employment in a three consecutive month period. The initial three consecutive month period is measured from your date of employment. If you do not complete at least 250 hours of employment in such period,
subsequent three month periods are measured.
	 
	 	 
	 

	 	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.

Notwithstanding the above, the following groups of employees are not eligible for membership in the Plan:
	 
	 	 
	 

	 	•     Flex staff employees.

	 
	 	 
	 

	 	Flex staff employees are those that are not regular full time or part time employees. Flex staff employees are not eligible to participate, regardless of the number of hours actually worked during the Plan Year. However, Flex staff employees that were hired prior to August 1, 2001 will continue to be eligible
to participate in the Plan.
	 
	 	 
	 

	 	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 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 19% (in 1% increments) of Plan Salary (see the “Plan Salary” section of this Summary). You may elect not to make any contributions, in which case your employer will make
the 2% minimum contribution as described below.
	 
	 	 
	 

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

	 	Employer — Your employer will contribute an amount equal to the greater of (A) or (B)
	 
	 	 
	 

	 	(A)    (i) 100% of your contributions through your 3rd year of employment;

	 

	 	        (ii) 150% of your contributions during your 4th and 5th years of
employment; and

	 

	 	        (iii) 200%of your contributions starting with your 6th year of employment.

	 
	 	 
	 

	 	OR
	 
	 	 
	 

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

	 
	 	 
	 

	 	This percentage rate applies to the first 3% of your Plan Salary (see the “Plan
Salary” section of this Summary).

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Illustration	 
	Employer’s Matching Contribution	 
	Your	 	100% During	 	 	150% During	 	 	200% Starting	 
	Contribution	 	2nd & 3rd Yrs.	 	 	4th & 5th Yrs.	 	 	with 6th Yr. of	 
	Rate	 	of Employment	 	 	of Employment	 	 	Employment	 
	1%
	 	 	1.00%	 	 	 	1.50%	 	 	 	2.00%	 
	2%
	 	 	2.00%	 	 	 	3.00%	 	 	 	4.00%	 
	3-19%
	 	 	3.00%	 	 	 	4.50%	 	 	 	6.00%	 

	 	 	 
	 

	 	In addition, your employer may, in its sole discretion, make a profit sharing
contribution to the Plan. You will be eligible to receive a profit sharing
contribution if you are employed on the last day of the plan year, retire, die
or become totally and permanently disabled prior to December 31 of the year for
which the profit sharing contributions are being made to the Plan by your
employer.
	 
	 	 
	 

	 	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.
	 
	 	 
	 

	 	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 2008 is $5,000 (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.
	 
	 	 

 

-2-

 

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 2008. 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 ($15,500 in 2008), the excess ($3,250) 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 2008 ($75,000 x 15%). Because your contributions do not exceed either the Plan’s maximum contribution percentage or the elective deferral limitation ($15,500 in 2008)
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 Salary is $110,000 in 2008, you earned total compensation of $100,000 in 2007 (making you a Highly-Compensated Employee for 2008), and you contributed $15,500 to the Plan in 2008. Because your $15,500 contribution does not exceed either the Plan’s maximum contribution percentage or the
elective deferral limit ($15,500 in 2008), 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 2008. In this scenario, $5,000 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 Profit Sharing 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 — You may allocate all or part of your contributions to your 401(k) Account. Contributions not allocated to your 401(k) Account will be allocated to your Regular Account.
	 
	 	 
	 

	 	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 will be allocated to your
401(k) Account. The balance of employer contributions, if any, 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 2008 or 2007, or

	 
	 	 
	 

	 	(b)    received annual compensation in excess of $100,000 for 2007.

 

-3-

 

MAKING CONTRIBUTIONS TO THE PLAN

CONTINUED

	 	 	 
	Rollovers

	 	You may make a rollover contribution of an eligible rollover distribution from any other Internal Revenue Service qualified retirement plan or an individual retirement arrangement (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 Internal Revenue Service each year. This limit is $230,000 for 2008, 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 using Pentegra by Phone, the
Pentegra Voice Response System or by accessing Pentegra Online at www.pentegra.com. You may access Pentegra by Phone by calling 1-800-433- 4422.
	 
	 	 
	 

	 	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.
	 
	 	 
	 

	 	Investment changes made by submitting a form is effective on the valuation date (see the “Valuation of Accounts” section of this Summary) on which your written notice is processed.
	 
	 	 
	 

	 	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 upon the submission of
a separate Change of Investment form.
	 
	 	 
	 

	 	If no investment direction is given, all contributions credited to a participant’s account will be invested in the target date retirement fund, the year of which coincides with or next follows the year in which the member reaches 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. 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 profit sharing 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.
	 
	 	 	 	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 Internal Revenue Service 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).
	 
	 	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 either (a) the amount necessary to satisfy your hardship or (b) the total vested balance of your 401(k) Account. Only one in-service withdrawal may be made in any Plan Year.

 

-7-

 

MAKING WITHDRAWALS FROM YOUR ACCOUNT

CONTINUED

	 	 	 	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.
	 
	 	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.
	 
	 	D.	 	From the Profit Sharing Account:
	 
	 	 	 	Not more than one withdrawal may be made from your Profit Sharing 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 Profit Sharing 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.

	 	 	 
	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 Internal Revenue Service qualified employee benefits plan or long-term disability plan of your employer.

 

-8-

 

MAKING WITHDRAWALS FROM YOUR ACCOUNT

CONTINUED

	 	 	 
	Upon Death

	 	If you die while you are a member of the Plan, the value of your entire account will be payable to your beneficiary. This payment will be
made in the form of a lump sum, unless the payment would exceed $500, in which event payments must commence by December 31 of the calendar
year immediately following the calendar year in which you died or, if your spouse is your beneficiary, by December 31 of the calendar year in
which you would have reached age 701/2, if later.
	 
	 	 
	 

	 	The minimum amount that will be distributed for each calendar year after the year of your death is the quotient obtained by dividing your
account balance by your remaining life expectancy calculated using your age in the year of death, reduced by one for each subsequent year. If
there is no designated beneficiary your entire account balance must be distributed by December 31 of the calendar year following the fifth
anniversary of your death.
	 
	 	 
	 

	 	If you are married, your spouse will be your beneficiary unless your spouse consents in writing to the designation of a different beneficiary.

 

-9-

 

BORROWING FROM YOUR ACCOUNT

	 	 	 
	Loans

	 	You may borrow from your 401(k) Account and Rollover Account as well as the vested portion of your Regular Account and Profit Sharing 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 Profit Sharing Account, Regular Account or 401(k) 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.

 

-10-

 

PLAN LIMITATIONS

	 	 	 
	Plan Limitations

	 	Internal Revenue Service (“IRS”) 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 Internal Revenue Service each year. The dollar limit is $46,000 for 2008 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 may not exceed a specific dollar amount, as determined by the Internal Revenue Service each year. This limit is $15,500 in 2008, 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.

 

-11-

 

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 $150,000 per year (indexed for cost-of-living adjustments), 5% owners of the
Employer, and 1% owners of the Employer earning more than $150,000 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).

 

-12-

 

MEMBERS RIGHTS

	 	 	 
	Statement of ERISA
Rights

	 	As a participant of the Plan, you are entitled to certain rights and protection under the
Employee Retirement Income Security Act of 1974 (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.

 

-13-

 

PLAN INFORMATION

	 	 	 
	Employer

	 	Federal Home Loan Bank of New York
	 

	 	101 Park Avenue
	 

	 	New York, NY 10178-0599
	 
	 	 
	 

	 	Telephone Number: (212) 681-6000
	 
	 	 
	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 — (800) 433-4422
	 

	 	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
	 

	 	One Wall Street
	 

	 	New York, NY 10286
	 
	 	 
	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.

 

-14-

 

	 	 	 	 	 
	

	 	

Our difference is your advantage
	 	Pentegra Retirement Services 
108
Corporate Park Drive 
White
Plains, NY 10604 
(800) 872-3473

www.pentegra.com

 

 

PENTEGRA DEFINED CONTRIBUTION PLAN

FOR FINANCIAL INSTITUTIONS

16th Revision, Amended and Restated, Effective January 1, 2008

108 Corporate Park Drive

White Plains, N.Y. 10604

 

 

 

A tax-exempt, trusteed savings plan

established July 1, 1970

in order that eligible employees

of financial institutions and other organizations serving them

may save and invest on a regular, long term basis.

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	PURPOSE
	 	 	i	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II PARTICIPATION AND MEMBERSHIP
	 	 	8	 
	 
	 	 	 	 
	Section 1. Employer Participation
	 	 	8	 
	 
	 	 	 	 
	Section 2. Employee Membership
	 	 	8	 
	 
	 	 	 	 
	ARTICLE III CONTRIBUTIONS
	 	 	12	 
	 
	 	 	 	 
	Section 1. Contributions by Members
	 	 	12	 
	 
	 	 	 	 
	Section 2. Regular Contributions by Employer
	 	 	12	 
	 
	 	 	 	 
	Section 3. Supplemental Contributions by Employer
	 	 	14	 
	 
	 	 	 	 
	Section 4. 401(k) Features
	 	 	15	 
	 
	 	 	 	 
	Section 5. Remittance of Contributions
	 	 	22	 
	 
	 	 	 	 
	Section 6. Transfer of Funds and Rollover Contributions
	 	 	22	 
	 
	 	 	 	 
	Section 7. Limitations on Member Contributions and Matching Employer
Contributions
	 	 	27	 
	 
	 	 	 	 
	Section 8. Profit Sharing Feature
	 	 	30	 
	 
	 	 	 	 
	Section 9. Catch-up Contributions
	 	 	33	 
	 
	 	 	 	 
	Section 10. Automatic Enrollment
	 	 	33	 
	 
	 	 	 	 
	ARTICLE IV INVESTMENT OF CONTRIBUTIONS
	 	 	37	 
	 
	 	 	 	 
	Section 1. General
	 	 	37	 
	 
	 	 	 	 
	Section 2. Qualified Default Investment Alternative
	 	 	38	 
	 
	 	 	 	 
	ARTICLE V MEMBERS’ ACCOUNTS, UNITS AND VALUATION
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VI VESTING OF UNITS
	 	 	41	 
	 
	 	 	 	 
	Section 1. Vesting
	 	 	41	 
	 
	 	 	 	 
	Section 2. Forfeitures
	 	 	44	 
	 
	 	 	 	 
	ARTICLE VII WITHDRAWAL PAYMENTS
	 	 	46	 
	 
	 	 	 	 
	Section 1. General
	 	 	46	 
	 
	 	 	 	 
	Section 2. Account Withdrawal While Employed
	 	 	47	 
	 
	 	 	 	 
	Section 3. Account Withdrawal Upon Termination of Employment or
Employer Participation
	 	 	47	 
	 
	 	 	 	 
	Section 4. Account Withdrawal Upon Member’s Disability
	 	 	52	 
	 
	 	 	 	 
	Section 5. Member’s Death
	 	 	53	 
	 
	 	 	 	 
	Section 6. Minimum Distribution Requirements
	 	 	54	 
	 
	 	 	 	 

 

- i -

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 
	ARTICLE VIII LOAN PROGRAM
	 	 	60	 
	 
	 	 	 	 
	Section 1. General
	 	 	60	 
	 
	 	 	 	 
	Section 2. Loan Application
	 	 	60	 
	 
	 	 	 	 
	Section 3. Permitted Loan Amount
	 	 	61	 
	 
	 	 	 	 
	Section 4. Source of Funds for Loan
	 	 	61	 
	 
	 	 	 	 
	Section 5. Conditions of Loan
	 	 	61	 
	 
	 	 	 	 
	Section 6. Crediting of Repayment
	 	 	62	 
	 
	 	 	 	 
	Section 7. Cessation of Payments on Loan
	 	 	63	 
	 
	 	 	 	 
	Section 8. Loans to Former Members and Beneficiaries
	 	 	63	 
	 
	 	 	 	 
	ARTICLE IX ADMINISTRATION OF PLAN
	 	 	64	 
	 
	 	 	 	 
	Section 1. Board of Directors
	 	 	64	 
	 
	 	 	 	 
	Section 2. Trust Agreement
	 	 	66	 
	 
	 	 	 	 
	ARTICLE X MISCELLANEOUS PROVISIONS
	 	 	67	 
	 
	 	 	 	 
	Section 1. General Limitations
	 	 	67	 
	 
	 	 	 	 
	Section 2. Top Heavy Provisions
	 	 	68	 
	 
	 	 	 	 
	Section 3. Information and Communications
	 	 	72	 
	 
	 	 	 	 
	Section 4. Small Account Balances
	 	 	72	 
	 
	 	 	 	 
	Section 5. Amounts Payable to Incompetents, Minors or Estates
	 	 	72	 
	 
	 	 	 	 
	Section 6. Non-alienation of Amounts Payable
	 	 	72	 
	 
	 	 	 	 
	Section 7. Unclaimed Amounts Payable
	 	 	73	 
	 
	 	 	 	 
	Section 8. Leaves of Absence
	 	 	73	 
	 
	 	 	 	 
	Section 9. Return of Contributions to Employer
	 	 	74	 
	 
	 	 	 	 
	Section 10. Controlling Law
	 	 	74	 
	 
	 	 	 	 
	ARTICLE XI TERMINATION OF EMPLOYER PARTICIPATION
	 	 	75	 
	 
	 	 	 	 
	Section 1. Termination by Employer
	 	 	75	 
	 
	 	 	 	 
	Section 2. Termination by Board
	 	 	75	 
	 
	 	 	 	 
	Section 3. Termination Distribution
	 	 	75	 
	 
	 	 	 	 
	ARTICLE XII AMENDMENT OR TERMINATION OF THE PLAN AND TRUST
	 	 	76	 
	 
	 	 	 	 
	TRUSTS ESTABLISHED UNDER THE PLAN
	 	 	77	 

 

- ii -

 

PURPOSE

The purpose of the Pentegra Defined Contribution Plan for Financial Institutions (the “Plan”
or “Pentegra DC Plan”) is to provide Members of participating Employers with a convenient way to
save on a regular and long term basis and, in addition to, or in lieu of such benefit, a benefit
under a Profit Sharing Feature, all as elected by the Employer, and as set forth herein and in the
Trust Agreement adopted as a part of this Plan. This Plan, as hereby amended and restated, and the
Trust established hereunder, are intended to qualify as a plan and trust which meet the
requirements of Sections 401(a), 401(k), and 501(a), respectively, of the Internal Revenue Code of
1986, as now in effect or hereafter amended, or any other applicable provisions of law including,
without limitation, the Employee Retirement Income Security Act of 1974, as amended. The Plan is
applicable to Members who earn one Hour of Employment on or after the Plan’s Effective Date unless
specifically provided otherwise herein or otherwise required by applicable law. If a Member has not
earned onr Hour of Employment on or after the Plan’s Effective Date, the Member’s benefits shall be
based on the Plan’s predecessor plan document. The Effective Date of this Plan, as herein amended
and restated, is generally as of January 1, 2008, unless otherwise provided herein or under
applicable law.

 

- i -

 

ARTICLE I DEFINITIONS

	 	 	The following words and phrases as used in this Plan shall have the following meanings:
	 
	1.	 	“Account” means the Plan account established and maintained in respect of each Member
pursuant to Article V, including the Member’s 401(k) Account, Roth 401(k) Account, Regular
Account, Rollover Account (including Profit Sharing Rollover Amounts), Safe Harbor CODA
Account, and Profit Sharing Account.
	 
	2.	 	“Actual Deferral Percentage Test Safe Harbor” means the method described in Section 4(J) of
Article III for satisfying the actual deferral percentage test of Section 401(k) (3) of the
Code.
	 
	3.	 	“Actual Deferral Percentage Test Safe Harbor Contributions” means Employer matching
contributions and non-elective contributions described in Section 4(J) of Article III.
	 
	4.	 	“Basic Amounts” means, with respect to a Member, the contributions made on behalf of the
Member by the Employer pursuant to Article III, Section 2(B) and earnings thereon.
	 
	5.	 	“Beneficiary” means the person or persons designated to receive any amount payable under the
Plan upon the death of a Member. Such designation may be made or changed only by the Member on
a form provided by, and filed with, the Board prior to his death. If the Member is not
survived by a Spouse and if no Beneficiary is designated, or if the designated Beneficiary
predeceases the Member, then any such amount payable shall be paid to such Member’s estate
upon his death.
	 
	6.	 	“Board” means the Board of Directors provided for in Article IX, Section 1.
	 
	7.	 	“Break in Service” means a Plan Year during which an individual has not completed more than
500 Hours of Employment, as determined by the Board in accordance with the IRS Regulations.
Solely for purposes of determining whether a Break in Service has occurred, an individual
shall be credited with the Hours of Employment which such individual would have completed but
for a maternity or
paternity absence, as determined by the Board in accordance with this Article I, Paragraph
(7), the Code and the applicable regulations issued by the DOL and the IRS; provided,
however, that the total Hours of Employment so credited shall not exceed 501 and the
individual timely provides the Board with such information as it may require. Hours of
Employment credited for a maternity or paternity absence shall be credited entirely (i) in
the Plan Year in which the absence began if such hours of Employment are necessary to
prevent a Break in Service in such year, or (ii) in the following Plan Year. For purposes of
this Article I, Paragraph (7), maternity or paternity absence shall mean an absence from
work by reason of the individual’s pregnancy, the birth of the individual’s child or the
placement of a child with the individual in connection with the adoption of the child by
such individual, or for purposes of caring for a child for the period immediately following
such birth or placement.
	 
	8.	 	“Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. All
citations to sections of the Code are to such sections as they may from time to time be
amended or renumbered.

 

1

 

	9.	 	“Commencement Date” means the date on which an Employer begins to participate in the Plan.
	 
	10.	 	“Contribution Determination Period” means the Plan Year, fiscal year, or calendar or fiscal
quarter, as elected by an Employer, upon which eligibility for and the maximum permissible
amount of any contribution to the Profit Sharing Feature, as defined in Article III, Section
8, is determined. Notwithstanding the foregoing, for purposes of
Article VI, Section 2(B), Contribution Determination Period means the Plan Year.
	 
	11.	 	“Disability” means a Member’s disability as defined in Article VII, Section 4.
	 
	12.	 	“DOL” means the United States Department of Labor.
	 
	13.	 	“Employee” means any person in the Employment of, and who receives a salary from, an
Employer, and any leased employee within the meaning of Section 414(n)(2) of the Code, unless
the Employer elects to exclude leased employees from participation of the Plan under Article
II, Section 2(H). Notwithstanding the foregoing, if such leased employees constitute less than
twenty percent (20%) of the Employer’s Non-highly compensated workforce within the meaning of
Section 414(n)(5)(C)(ii) of the Code, such leased employees are not Employees if they are
covered by a plan meeting the requirements of Section 414(n)(5)(B) of the Code. A director of
the Employer is not eligible to participate in the Plan unless he is also an Employee.
	 
	14.	 	“Employer” means any entity which has adopted the Plan in accordance with Article II, Section
1.
	 
	15.	 	“Employment” means all periods of service with an Employer commencing with the Employee’s
first day of employment or reemployment and ending on the date a break in service begins. The
first day of employment or reemployment is the first day the Employee performs an hour of
service. An Employee will also receive credit for any period of severance of less than 12
consecutive months. Fractional periods of a year will be expressed in terms of days.
	 
	 	 	Hour of service shall mean each hour for which an Employee is paid or entitled to payment
for the performance of duties for an Employer.
	 
	 	 	For purposes of this Section 15, break in service is a period of severance of at least 12
consecutive months.
	 
	 	 	Period of severance is a continuous period of time during which the Employee is not employed
by an Employer. Such period begins on the date the Employee retires, quits or is discharged
or, if earlier, the 12 month anniversary of the date on which the Employee was otherwise
first absent from service.
	 
	 	 	If an Employer is a member of an affiliated service group (under Section 414(m) of the
Code), a controlled group of corporations (under Section 414(b) of the Code), a group of
trades or businesses (under Section 414(c) of the Code), or any other entity required to be
aggregated with the Employer pursuant to section 414(o) of the Code, service will be
credited for any employment for any period of time for any other member of such group.
Service will also be credited for any individual required under section 414(n) or section
414(o) to be considered an employee of any Employer aggregated under section 414(b), (c), or
(m).

 

2

 

	 	 	In the case of an Employee who is absent from work for maternity or paternity reasons, the
12-consecutive month period beginning on the first anniversary of the first date of such
absence shall not constitute a break in service. For purposes of this paragraph, an absence
from work for maternity or paternity reasons means an absence (1) by reason of the pregnancy
of the Employee, (2) by reason of the birth of a child of the Employee, (3) by reason of the
placement of a child with the Employee in connection with the adoption of such child by such
Employee, or (4) for purposes of caring for such child for a period beginning immediately
following such birth or placement.
	 
	 	 	Solely for purposes of determining vesting, “Employment” shall include service performed by
an individual for an Employer or members of an affiliated service group (under Code Section
414(m)), a controlled group of corporations (under Code Section 414(b)), or a group of
trades or businesses under common control (under Code Section 414(c)), of which the Employer
is a member, during the period such individual is not a member of a class of Employees
otherwise eligible to participate in the Plan.
	 
	16.	 	“Enrollment Date” means the date on which an Employee becomes a Member as provided under
Article II, Section 2.
	 
	17.	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as now in effect or as
hereafter amended.
	 
	18.	 	“401(k) Account” means the Plan account established and maintained in respect of a Member
pursuant to Article III, Section 4 and Article V, and shall include all amounts (and earnings
thereon) credited thereto on behalf of the Member pursuant to the provisions of Article III.
Unless specified otherwise, the term “401(k) Account” shall also include a Member’s Roth
401(k) Account.
	 
	19.	 	“401(k) Elective Deferral” means a Member’s pre-tax elective Salary deferrals pursuant to
Article III, Section 4 and a Member’s Roth Elective Deferrals pursuant to Article III, Section
4(D).
	 
	20.	 	“Highly Compensated Employee” or “Highly Compensated Member” means an Employee or a Member
(i) who is a 5 percent owner at any time
during the look-back year or determination year, or (ii) (a) who is employed during the
determination year and who during the look-back year received compensation from the
Employer in excess of $105,000 (in 2008) (as adjusted pursuant to the Code and Regulations
for changes in the cost of living), and (b) if elected by the Employer was in the top-paid
group of Employees for such look-back year.
	 
	 	 	For this purpose, the determination year shall be the Plan Year. The look-back year shall be
the 12-month period immediately preceding the determination year.
	 
	 	 	The top-paid group shall consist of the top 20 percent of the Employees when ranked on the
basis of compensation paid by the Employer.
	 
	 	 	The determination of who is a Highly Compensated Employee will be made in accordance with
Section 414(q) of the Code and the IRS Regulations thereunder.

 

3

 

	21.	 	“Hour of Employment” means

(A) Each hour for which an Employee is paid, or entitled to payment, for the
performance of duties for an Employer. These hours will be credited to the Employee for the
computation period in which the duties are performed; and

(B) Each hour for which an Employee is paid, or entitled to payment, by an Employer on
account of a period of time during which no duties are performed (irrespective of whether
the employment relationship has terminated) due to vacation, holiday, illness, incapacity
(including disability), layoff, jury duty, military duty or leave of absence. No more than
501 Hours of Employment will be credited under this Subsection (B) for any single continuous
period (whether or not such period occurs in a single computation period). Hours under this
Subsection (B) will be calculated and credited pursuant to Section 2530.200b-2 of the DOL
Regulations which is incorporated herein by this reference; and

(C) Each hour for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by an Employer. The same Hours of Employment will not be credited both
under Subsection (A) or (B), as the case may be, and under this Subsection (C). These hours
will be credited to the Employee for the computation period or periods to which the award or
agreement pertains rather than the computation period in which the award, agreement or
payment is made.

Hours of Employment will be credited for employment with other members of an affiliated
service group (under Code Section 414(m)), a controlled group of corporations (under Code
Section 414(b)), or a group of trades or businesses under common control (under Code Section
414(c)), of which the Employer is a member, and any other entity required to be aggregated
with such Employer pursuant to Code Section 414(o).

Hours of Employment will also be credited for any individual considered an Employee for
purposes of the Plan under Code Section 414(n) or Section 414(o).

Solely for purposes of determining eligibility to participate, “Hour of Employment”
shall include service performed by an individual for an Employer or members of an affiliated
service group (under Code Section 414(m)), a controlled group of corporations (under Code
Section 414(b)), or a group of trades or businesses under common control (under Code Section
414(c)), of which the Employer is a member, during the period such individual is not a
member of a class of Employees otherwise eligible to participate in the Plan.

	22.	 	“IRS” means the United States Internal Revenue Service.
	 
	23.	 	“Leave of Absence” means an absence authorized by an Employee’s Employer on a uniform basis,
in accordance with Article X, Section 8.

 

4

 

	24.	 	“Matching Amounts” means, with respect to a Member, the contributions made on behalf of the
Member by the Employer pursuant to Article III, Section 2(A) and earnings thereon.
	 
	25.	 	“Member” means an Employee enrolled in the membership of the Plan under Article II, Section
2. Notwithstanding the foregoing, Member shall include a former Member, except for purposes of
Article III (other than Section 6 thereof) of the Plan.
	 
	26.	 	“Month” means any calendar month.
	 
	27.	 	“Non-highly Compensated Employee” means an Employee who is not a Highly Compensated
Employee.
	 
	28.	 	“Normal Retirement Age” means the Member’s sixty-fifth (65th) birthday.
	 
	29.	 	“Plan” or “Pentegra DC Plan” means the Pentegra Defined Contribution Plan for Financial
Institutions established herein and as from time to time amended.
	 
	30.	 	“Plan Year” means a 12 month period ending December 31.
	 
	31.	 	“Profit Sharing Account” means the Plan account established in respect of each Member
pursuant to Article III, Section 8(B)(2) and Article V which shall be maintained separate from
any other Account established in respect of such Member under the
Plan. Except as otherwise
indicated under the Plan, a Member’s Profit Sharing Account shall not include his Profit
Sharing Rollover Amounts.
	 
	32.	 	“Profit Sharing Rollover Amounts” means, with respect to an Employee or Member whose Employer
participates in the Plan solely under Article III, Section 8 (Profit Sharing Feature), any
amounts (and earnings thereon) transferred or contributed on behalf of such Employee or Member
pursuant to Article III, Section 6(C).
	 
	33.	 	“Qualified Default Investment Alternative” or “QDIA” means an investment alternative under
Article IV, Section 2 that satisfies the requirements of Section 404(c)(5) of ERISA and U.S.
Department of
Labor Regulations Section 2550.404c-5(e), and any guidance issued thereunder, and which has
been approved by the Board.
	 
	34.	 	“Regular Account” means the Plan account established and maintained in respect of a Member
pursuant to Article III, Section 2(C) and Article V, and shall include all amounts (and
earnings thereon) credited thereto on behalf of the Member pursuant to the provisions of
Article III.
	 
	35.	 	“Regulations” means the applicable regulations issued under the Code, ERISA or other
applicable law, by the IRS, the DOL or any other governmental authority and any proposed or
temporary regulations or rules promulgated by such authorities pending the issuance of such
regulations.
	 
	36.	 	“Rollover Account” means the Plan account established in respect of each Member pursuant to
Article III, Section 6(C) and Article V which shall be maintained separate from any other
Account established in respect of such Member under the Plan. For purposes of Article III,
Section 4(H), Article VII, Sections 1 and 2, and Article VIII, a Member’s Rollover Account
shall not include his Profit Sharing Rollover Amounts unless otherwise indicated therein.

 

5

 

	37.	 	“Roth Elective Deferral” means an elective deferral that is: (a) designated irrevocably by
the Member at the time of the cash or deferred election as a Roth contribution that is being
made in lieu of all or a portion of the pre-tax elective deferrals the Member is otherwise
eligible to make under the Plan; and (b) treated by the Employer as includible in the Member’s
income at the time the Member would have received that amount in cash if the Member had not
made a cash or deferred election.
	 
	38.	 	“Roth 401(k) Account” means the Plan account established and maintained in respect of a
Member pursuant to Article III, Section 4(D) and Article V, and shall include all amounts (and
earnings thereon) credited thereto on behalf of the Member pursuant to the provisions of
Article III, Section 4(D) and including Roth Elective Deferrals made pursuant to an Employer’s
automatic enrollment program under Article III, Section 10, where such automatic 401(k)
Elective Deferrals are Roth Elective Deferrals.
	 
	39.	 	“Safe Harbor CODA Account” means the Plan account established in respect of each Member
pursuant to Article III, Section 4(J) and Article V which shall be maintained separate from
any other Account established in respect of such Member under the Plan.
	 
	40.	 	“Salary” means regular basic monthly (or other periodic) salary or wages, exclusive of
special payments such as overtime, bonuses, fees, deferred compensation (other than amounts
deferred pursuant to a Member’s election under Article III, Section 4), severance payments,
and contributions by the Employer under this or any other plan (other than before tax
contributions made on behalf of a Member under a Code Section 125 cafeteria plan or
contributions made under Code Section 132(f), unless the Employer specifically elects to
exclude such contributions). Commissions shall be included at the Employer’s option within
such limits, if any, as may be set by the Employer and applied uniformly to all its commission
Employees. In addition, Salary may also include, at the Employer’s option, special payments
such as (i) overtime or (ii) overtime plus bonuses. If an Employer elects to generally include
bonuses in the definition of Salary, the Employer may nevertheless elect to exclude a
particular type of bonus (e.g, long term
incentive compensation payments), provided such exclusion is applied uniformly to all its
Employees.
	 
	 	 	If an Employer elects to include the special payments enumerated in (i) or (ii) above in the
definition of Salary or, if the Employer elects to include commissions in the definition of
Salary, such Salary shall be determined based on the amounts received by the Member during
the relevant determination period. Otherwise, unless an Employer specifically requests to
include Salary changes received by a Member during the relevant determination period and is
granted permission by the Board, a Member’s monthly Salary rate is one twelfth of his annual
Salary rate as of each January 1. If commissions are included in Salary, unless an Employer
specifically requests to include commissions received by a Member during the relevant
determination period and is granted permission by the Board, they shall be calculated on a
uniform basis based on the commissions received by the Member during the 12 month period
prior to the determination period. As an alternative to the foregoing definition, at the
Employer’s option, Salary may be defined to include total taxable compensation reported on
the Member’s IRS Form W-2, plus deferrals, if any, pursuant to Section 401(k) of the Code,
Section 125 of the Code, and Section 132(f) of the Code (unless the Employer specifically
elects to exclude such Section 125 and Section 132(f) deferrals), but excluding the payment
of compensation deferred from previous years. In no event, may a Member’s Salary for any
Plan Year exceed for purposes of the Plan $200,000 or, effective January 1, 1994, $150,000
(adjusted for cost of living to the extent permitted by the Code and the IRS Regulations).

 

6

 

	 	 	For Plan Years beginning after December 31, 1996, the family member aggregation rules of
Code Section 414(q)(6) (as in effect prior to the Small Business Job Protection Act of 1996)
are eliminated.
	 
	 	 	The annual Salary of each Member taken into account in determining allocations, shall not
exceed $230,000 (in 2008) as adjusted for cost-of-living increases in accordance with
section 401(a)(17)(B) of the Code.
	 
	41.	 	“Spouse” or “Surviving Spouse” means the individual to whom a Member or former Member was
married on the date such Member withdraws his Account, or if such Member has not withdrawn his
Account, the individual to whom the Member or former Member was married on the date of his
death.
	 
	42.	 	“Supplemental Amounts” means, with respect to a Member, the contributions made on behalf of
the Member by the Employer pursuant to Article III, Section 3 and earnings thereon.
	 
	43.	 	“Trustee” means the Trustee or Trustees provided for in Article IX, Section 2.
	 
	44.	 	“Trust Fund” means the Trust Fund or Funds established by the Trust Agreement or Agreements
provided for in Article IX, Section 2.
	 
	45.	 	“Unit” means the unit of measure described in Article V of a Member’s proportionate interest
in the Plan’s Investment Funds.
	 
	46.	 	“Valuation Date” means any business day of any month for the Trustee, except that in the
event the underlying portfolios of any Investment Fund cannot be valued on such date, the
Valuation Date for such Investment Fund shall be the next subsequent date on which the
underlying portfolio(s) can be valued. Valuations shall be made as of the close of business on
such valuation date(s).
	 
	47.	 	“Year of Employment” means a 12-month period of Employment.
	 
	48.	 	“Year of Service” means any Plan Year during which an individual completed at least 1,000
Hours of Employment, or satisfied any
alternative requirement, as determined by the Board in accordance with any applicable
regulations issued by the DOL and the IRS.
	 
	49.	 	The masculine pronoun wherever used shall include the feminine pronoun.

 

7

 

ARTICLE II PARTICIPATION AND MEMBERSHIP

Section 1. Employer Participation

Any financial institution, or other organization serving it, may apply to the Board for
participation in the Plan if: (A) as of its Commencement Date and in accordance with Section 410(b)
of the Code and the IRS Regulations (i) the percentage of Non-highly Compensated Employees who will
benefit under the Plan is at least 70% of the percentage of Highly Compensated Employees who will
benefit under the Plan (excluding such employees as are permitted to be excluded under IRS
Regulations), or (ii) the average benefit percentage test (as defined in Section 410(b)(2) of the
Code and the IRS Regulations) will be satisfied with respect to the Employer. The applicant shall
submit the formal application and all required information, and the Board, in its discretion, shall
decide upon admittance and determine the Commencement Date. The Board may, in its discretion and at
such times as it may determine, require an affirmative showing by an Employer of its continued
compliance with the requirements of Section 410(b) of the Code and IRS Regulations. Initial and
continued participation shall be subject to the determination of the IRS that the Plan and the
Trust Fund are tax qualified and tax exempt under Sections 401(a) and 501(a) of the Code,
respectively. In addition, any Employee who participated in the Plan but who has been transferred
to a governmental or quasi-governmental agency serving the financial industry shall,
notwithstanding anything to the contrary in this Section, be permitted to continue to participate
in the Plan; provided that, in such case, such Employee’s employing agency has adopted the Plan.

An Employer may, at its option, subject to the provisions of the Plan, adopt different Plan
features and provisions (basis of participation) for different definable groups of employees,
including for employees acquired pursuant to a merger or acquisition. The Employer will be required
to demonstrate that this Section 1 and all other applicable Code and IRS Regulations continue to be
satisfied following the adoption of different bases of participation for separate and definable
groups of employees.

Section 2. Employee Membership

	(A)	 	Employer contributions on behalf of any Member shall be conditioned upon the Member making
contributions under Article III, Section 1, except in the case of the basic contribution feature described
in Article III, Section 2; the supplemental contribution feature (Formula (2)) described in Article III, Section 3;
the 401(k) Feature described in Article III, Section 4(B); the Safe Harbor
CODA non-elective contribution feature described in Article III, Section 4(J); or the
Profit Sharing Feature described in Article III, Section 8.
	 
	(B)	 	Every Employee (other than Employees who, at the election of the Employer, are excluded from
participation under this Section 2) shall be eligible for membership in the Plan on the later
of:

	 	(1)	 	His Employer’s Commencement Date, or
	 
	 	(2)	 	The first day of the month, or, at the election of the Employer, the first
day of the calendar quarter, coincident with or next following his satisfaction of one
or more of the eligibility requirements described hereunder, as designated by his
Employer: (i) the Employee’s first day of Employment; (ii) the completion of any
number of months not to exceed 12 consecutive months or (iii) the completion of one
Year of Service or two Years of Service, and/or (iv) if the Employer so elects, it may
adopt a minimum age requirement from age 18 to age 21. An Employer, at its election
and in a uniform and nondiscriminatory manner, may waive the eligibility
requirement(s) for participation specified under this paragraph (B) for (1) all
Employees, or (2) all those Employees employed on or up to 12 months after the
Employer’s Commencement Date under the Plan.

 

8

 

	 	 	 	The eligibility requirement(s) designated by the Employer shall apply uniformly to all Plan
Features elected by the Employer. Notwithstanding the foregoing, the Employer may elect to
establish as an eligibility requirement (as a minimum service requirement, minimum age
requirement, or both) for Employer matching contributions, Employer basic contributions,
Employer supplemental contributions, Employer Safe Harbor CODA contributions, and/or
Employer Profit Sharing contributions (i) the completion of any number of months not to
exceed 12 consecutive months, or (ii) the completion of one 12-consecutive-month period,
and/or (iii) if the Employer so elects, it may adopt a minimum age requirement from age 18
to age 21. If, pursuant to Section 410(b)(4)(B), the Employer applies Code Section 410(b)
separately to the portion of the Plan (within the meaning of Code Section 414(l)) that
benefits only Employees who satisfy the eligibility requirements of this Section 2 that are
lower than age twenty-one (21) and completion of a Year of Service, the Plan is treated as
two separate plans for purposes of Code Section 401(k). Accordingly, if the Employer elects
to make a Safe Harbor CODA contribution, then such contribution shall not be made on behalf
of Employees who have not attained age twenty-one (21) and completed a Year of Service.
However, in such a case, Section 401(k) Elective Deferrals and the matching contribution
made pursuant to Article III, Section 2(A) on behalf of those Employees must satisfy
Article III, Sections 4(E), (F) and (G) and Article III, Section 7.
	 
	 	 	 	Subject to the requirements of the Code, where an Employee who participated as a Member
under the Plan terminates employment with an Employer and thereafter is reemployed by the
same (or a different) Employer, such Employee, subject to any applicable break in service
rules, shall participate immediately upon returning to employment with respect to the
Profit Sharing Feature and the Basic and Supplemental Employer Contribution and shall
participate on the next applicable payroll date with respect to Member Contributions,
Matching Employer Contributions, Safe Harbor Employer Contributions and the 401(k) Feature,
as and to the extent any such contribution feature is then maintained by such Employee’s
Employer and the Member has satisfied the eligibility requirements for receiving such
Employer contributions. In the case of an Employer that adopts a 401(k) Feature under
Article
III, Section 4, the eligibility requirement(s) under such Feature, and any other Plan
Feature adopted by the Employer in addition to the 401(k) Feature, shall not exceed the
period described in clause (i) above, and, at the election of the Employer, attainment of
an age as elected by the Employer from age 18 to age 21 as described in clause (iii) above.
In the event a Member is no longer part of an eligible class of Employees and thus becomes
ineligible to participate in the Plan, such Employee, subject to any applicable break in
service rules, shall participate immediately upon returning to an eligible class of
Employees with respect to the Profit Sharing Feature and the Basic and Supplemental
Employer Contribution and shall participate on the next applicable payroll date with
respect to Member Contributions, Matching Employer Contributions, Safe Harbor CODA
contributions, and the 401(k) Feature, as and to the extent any such contribution feature
is then maintained by such Employee’s Employer and the Member has satisfied the eligibility
requirements for receiving such Employer contributions.

 

9

 

	(C)	 	Where an Employer designates a one Year of Service or two Years of Service eligibility
requirement, an Employee must complete at least 1,000 Hours of Employment during each
12-consecutive-month eligibility computation period (measured from his date of Employment and
then from each January 1, thereafter). Where an Employer designates an eligibility waiting
period of less than 12 months, an Employee must, for purposes of eligibility, complete a
required number of hours (measured from his date of Employment and each anniversary
thereafter) which is arrived at by multiplying the number of months of the eligibility waiting
period requirement by
831/3; provided, however, if the Employee completes at least 1,000 Hours
of Employment during the 12-consecutive-month eligibility computation period (measured from
his date of Employment and then from each January 1 thereafter) the Employee shall be deemed
to satisfy the eligibility waiting period designated by the Employer.

	(D)	(1)	 	 The Employer shall notify each Employee of his membership in the Plan and shall furnish
him with an enrollment application in order that he may elect to make or receive contributions
on his behalf under Article III at the earliest possible date consonant with this Article.
	 
	 	(2)	 	All Employees whose Employment commences after the expiration date of the
Employer’s waiver of the eligibility requirement(s) shall be enrolled in the Plan in
accordance with the eligibility requirement(s) designated in Paragraph (B) above.
	 
	 	(3)	 	If it is determined that an Employee who is eligible to be enrolled has, for
any reason, not been so notified, such Employee shall be furnished an application by
his Employer and be retroactively enrolled, in accordance with the Plan and applicable
law, as of the date he first became eligible, upon receipt by the Board of the
application properly executed. In accordance with the Plan and applicable law, the
Employer may be required to make certain contributions, and the Employee may, at his
election, make any contributions he could have made, had the Employee been enrolled on
such earlier date. The Account of an Employee who is retroactively
enrolled shall, upon such enrollment, consist solely of the number of
Units which, as of the Valuation Date coincident with or next following
such enrollment, may be credited to him pursuant to Article V based upon
the amount of contributions received by the Board.

	(E)	 	An Employee shall become a Member on his Enrollment Date which shall be the date on which he
becomes eligible. However, no person shall under any circumstances become a Member unless and until
his enrollment application is filed with, and accepted by, the Plan. If an Employee fails to
complete the enrollment form furnished to him, the Employer shall do so on his behalf.

 

10

 

	(F)	 	At the option of the Employer, an Employee who is employed on or prior to his
Employer’s Commencement Date may make a one time election to waive participation in the
Plan on the Employer’s Commencement Date.
	 
	(G)	 	Membership under all provisions of the Plan shall terminate upon the earlier of (a) a Member’s
termination of Employment and payment to him of his entire vested interest, or (b) his death.
	 
	(H)	 	The following Employees, at the Employer’s election, may be excluded from participation
in the Plan:

	 	(i)	 	Employees who are included in a unit of Employees covered by a collective bargaining
agreement between the Employee representatives and one or more Employers if there is
evidence that retirement benefits were the subject of good faith bargaining between such
Employee representatives and such Employer(s).
For this purpose, the term “Employee representative” does not include any
organization where more than one-half of the membership is comprised of owners,
officers and executives of the Employer;
	 
	 	(ii)	 	Employees who are non-resident aliens and who receive no earned income from the
Employer which constitutes income from sources within the United States;
	 
	 	(iii)	 	Employees who are employed on an hourly basis. Notwithstanding, if the
Employee is employed on an hourly basis following the adoption date of the Plan by
the Employer, but prior to the adoption of an hourly exclusion by his Employer,
such employee shall will continue to receive benefits on the same basis as a
regular salaried Member, despite classification as an hourly employee unless the
employee is otherwise excluded from participation in the Plan at the election of
the Employer under this Section 2(H). In the event an individual who was not part
of an eligible class of
Employees becomes part of an eligible class, such individual will be eligible to
participate in the Plan in accordance with the provisions of this Article II;
	 
	 	(iv)	 	Employees who are not regular full-time or part-time Employees (Flex Staff
Employees);
	 
	 	(v)	 	Leased Employees within the meaning of Section 414(n)(2) of the Code; and
	 
	 	(vi)	 	Employees hired under a written agreement which precludes membership and provides
for a specific period of employment not in excess of one year.

 

11

 

ARTICLE III CONTRIBUTIONS

Section 1. Contributions by Members

A Member of an Employer may elect to make contributions under the Plan (in 1% increments) up to a
maximum percentage specified by the Employer not to exceed 100% of his Salary. Each Employer shall
elect whether: (A) its Members’ contributions must be based on a percentage of Salary (in 1%
increments); (B) its Members’ contributions must be based on a flat dollar amount of Salary; or (C)
to permit its Members to make contributions based on either a percentage or flat dollar amount of
Salary. A Member may change his contribution rate or suspend his contributions at any time, but
reduced or suspended contributions may not subsequently be made up.

Section 2. Regular Contributions by Employer

	(A)	 	Matching Employer Contributions
	 
	 	 	Under this Section, an Employer shall contribute to the Plan on behalf of each of its
Members (subject to any possible suspension under Article VII) an amount equal to a
percentage (as specified by the Employer) of the Member’s contributions (determined, if
elected by the Employer, on the basis of the Plan Year) not in excess of a maximum of 50%
(as specified by the Employer) of his Salary. Such contributions, unless otherwise elected
by the Employer, shall be made on a payroll period basis. Notwithstanding, the Employer may
elect to determine Employer matching contributions based upon the entire Plan Year. A
Member’s Salary and any limitation on matching contributions shall be applied based upon
the applicable payroll period, unless the Employer elects to determine matching
contributions based upon the Plan Year. In such instance, a Member’s Salary and the
applicable limits for the entire Plan Year shall be used to determine Employer matching
contributions.
	 
	 	 	The percentage chosen by the Employer shall be in accordance with the schedule of
contribution formulas listed below. Such contribution formula must be uniformly applicable
to all its Members on a payroll period basis (or on the basis of such other period as
elected by the Employer), except where the Employer has
elected to provide a separate basis of participation for different definable groups of
employees under the Plan.

	 	 	 	 	 	 	 
	Formula 0
	 	—	 	 	 	0% of the Member’s contributions.
	 
	 	 	 	 	 	 
	Formula 25
	 	—	 	 	 	25% of the Member’s contributions.
	 
	 	 	 	 	 	 
	Formula 50
	 	—	 	 	 	50% of the Member’s contributions.
	 
	 	 	 	 	 	 
	Formula 75
	 	—	 	 	 	75% of the Member’s contributions.
	 
	 	 	 	 	 	 
	Formula 100
	 	—	 	 	 	100% of the Member’s contributions.
	 
	 	 	 	 	 	 
	Formula Step (1)
	 	—	 	(i)	 	50% of the Member’s contributions through the third year of Employment.
	 
	 	 	 	 	 	 
	 
	 	 	 	(ii)	 	75% of the Member’s contributions during the fourth and fifth years of Employment.
	 
	 	 	 	 	 	 
	 
	 	 	 	(iii)	 	100% of the Member’s contributions upon completion of 5 or more years of Employment.

 

12

 

	 	 	 	 	 	 	 
	Formula Step (2)
	 	—	 	(i)	 	100% of the Member’s contributions through the third year of Employment.
	 
	 	 	 	 	 	 
	 
	 	 	 	(ii)	 	150% of the Member’s contributions during the fourth and fifth years of Employment.
	 
	 	 	 	 	 	 
	 
	 	 	 	(iii)	 	200% of the Member’s contributions upon completion of 5 or more years of Employment.
	 
	 	 	 	 	 	 
	Formula Step (3)	 	—	 	A percentage of the Member’s contributions chosen by the
Employer through the Member’s third year of Employment
with an increased percentage of the Member’s contributions
as elected by the Employer to apply during the fourth and
fifth years of Employment and a further increased percentage
of the Member’s contributions to apply upon completion of 5
or more years of Employment.
	 
	 	 	 	 	 	 
	Formula 150	 	—	 	150% of the Member’s contributions.
	 
	 	 	 	 	 	 
	Formula 200	 	—	 	200% of the Member’s contributions.

Notwithstanding the matching formulas provided above, an Employer may at its option, specify the
percentage of the Member’s contributions which will be matched by the Employer.

	(B)	 	Basic Employer Contributions
	 
	 	 	An Employer may, at its option, make a basic contribution equal to a uniform percentage (as
specified by the Employer) of each of its Members’ Salaries for each month or payroll
period, as applicable, provided that in no event shall such percentage exceed 15%. The
percentage so specified may be elected or changed by the Employer by filing a properly
completed form with the Pentegra DC Plan Office. No more than one such change may be made
by an Employer during any year. An employer may restrict the allocation of such basic
contribution to those Members who were employed with the Employer on the last working day
of the month or payroll period for which the basic contribution is made.
	 
	 	 	At the election of the Employer, any basic contribution shall be credited to its Members’
401(k) Accounts or Regular Accounts on a uniform basis.
	 
	(C)	 	Regular Accounts
	 
	 	 	A Regular Account shall be established and maintained for each Member on whose behalf
contributions are made to the Plan pursuant to Section 1 or 2 of this Article.

 

13

 

Section 3. Supplemental Contributions by Employer

An Employer may, at its option, make a supplemental contribution under Formula (1) or (2) below:

Formula (1) — A uniform percentage (as specified by the Employer) of each Member’s contributions
not in excess of a maximum percentage (if the Employer elects to impose such a maximum) of the
Member’s Salary which were received by the Plan during the preceding Plan Year. Such supplemental
contribution may be made on or before the last day of February in any year on behalf of all those
Members who were in its employ on the last working day of the preceding Plan Year. For purposes of
this Section, Members on a Type 1 non-military Leave of Absence (as defined under Article I,
Paragraph (23) and Article X, Section 8(B)(1)), or a Type 4 military Leave of Absence (as defined
under Article I, Paragraph (23) and Article X, Section 8(B)(4)), shall be deemed employed on the
last working day of such preceding Plan Year.

Formula (2) — A uniform dollar amount per Member or a uniform percentage limited to a specific
dollar amount, if elected by the Employer, of each Member’s Salary (i) for the preceding Plan Year
or fiscal year, regardless of whether the Member was eligible to participate in the Plan during the
entire Plan Year (or fiscal year), or (ii) if an Employer so elects with respect to all of its
Members, for the portion of the preceding Plan Year (or fiscal year) during which the Member was
eligible to participate in the Plan. Such supplemental contribution may be made within the time
prescribed by law, including extensions of time, for filing of the Employer’s federal income tax
return on behalf of all those Members who were in its employ on the last working day of the
preceding Plan Year (or, at the Employer’s option, the Employer’s fiscal year). Notwithstanding
anything herein to the contrary, Employer contributions under Article III, Sections 2(A) and 2(B)
and Formula 2 of this Article III, Section 3 shall not exceed, in the aggregate, 25% of the
Member’s Salary for such Plan Year. The Employer may, at its option, elect to make a contribution
under this paragraph to only those Members whose Salary is less than an amount to be specified by
the Employer to the extent that such Salary limit is less than the dollar amount under Section
414(q) of the Code for such year.

For purposes of this Section, Members on a Type 1 non-military Leave of Absence (as defined under
Article I, Paragraph (23) and Article X,
Section 8(B)(1)), or a Type 4 military Leave of Absence (as defined under Article I, Paragraph (23)
and Article X, Section 8(B)(4)), shall be deemed employed on the last working day of such preceding
Plan Year (or fiscal year). The percentage contributed under this Formula (2) shall be limited in
accordance with the Employer’s matching formula and basic contribution rate under Section 2 of this
Article such that the sum of the Employer’s Formula (2) supplemental contribution plus the Employer
basic contribution and the maximum Employer matching contribution under Section 2 of this Article
shall not exceed 15% of Salary for such year.

At the election of the Employer, any supplemental contribution shall be credited either to its
Members’ 401(k) Accounts (but not to the Member’s Roth 401(k) Account) or Regular Accounts on a
uniform and nondiscriminatory basis.

 

14

 

Section 4. 401(k) Features

	(A)	 	An Employer may, at its option, adopt either the 401(k) Feature under Paragraph (B) of this
Section or one of the 401(k) Features described in Paragraph (C) of this Section. In
addition, an Employer may elect, in conjunction with electing a Paragraph (B) or Paragraph
(C) 401(k) Feature, a Roth Elective Deferral feature under Paragraph (D). Under any 401(k)
Feature, there shall be established for each of its Members a “401(k) Account.” A Member’s
401(k) Account shall be invested pursuant to his overall directions under Article IV but
maintained separately from his Regular Account (consisting of the value of contributions
made under Sections 1 and 2 of this Article). Based on the Employer’s election in
accordance with Article III, Section 1, a Member contributing under this 401(k) feature
shall be permitted to make deferrals based upon a uniform percentage (in whole
percentages), or flat dollar amount of his Salary, as his Employer shall elect, so that the
Member reaches the Code Section 402(g) limit by the end of the Plan Year. Should such
Member not reach the 402(g) limit by the last contribution reporting period, the Member
will be permitted to make a final 401(k) Elective Deferral which will enable a Member to
precisely reach the limit under 402(g) of the Code. Such final contribution may be made
based on a percentage of the Member’s compensation which is not a whole percentage.
Notwithstanding anything in this Article III, Section 4 to the contrary, and in accordance
with IRS Regulation Section 1.401(k)-1(a)(3)(iii), Member contributions may not be made
prior to the Member’s performance of services with respect to which the Member
contributions are made or, if earlier, when the compensation on which the Member
contribution is based would be currently available.
	 
	(B)	 	Option 1 — Under the 401(k) Feature provided in this Paragraph (B), each Member may elect to
defer 1% up to a maximum percentage specified by the Employer not to exceed 100% (in 1% increments)
of his Salary or, subject to Article III, Section 3, a flat dollar amount of his Salary, or, if
permitted by the Employer, either a percentage of his Salary or flat dollar amount, as the Member
shall elect, and direct his Employer to contribute such amount to his 401(k) Account. Such deferral
to the 401(k) Account shall reduce the Member’s contribution under Section 1 of this Article.
	 
	 	 	The Employer shall contribute to each Member’s 401(k) Account an amount equal to 2% of his
Salary not in excess of $3,750, subject to Article X, Section 1 of the Plan, unless the
Member has deferred amounts of his Salary pursuant to the preceding
paragraph, in which case the Employer’s 2% contribution will be allocated to the Member’s
Regular Account. The amount which the Employer would otherwise be required to contribute
with respect to each Member under Section 2 of this Article shall be reduced, but not below
zero, by the amount which it contributes with respect to the Member under this Paragraph
(B). Notwithstanding anything in this Paragraph to the contrary, should a Member’s
deferrals to the 401(k) Account reach the maximum specified under the provisions of
Paragraph (I) below in any Plan Year, the Employer’s 2% contribution will be allocated to
the Member’s Regular Account for the remainder of such Plan Year.

The Employer, at its option, may adopt either of the two additional 401(k) Features described
below:

	(C)	 	Option 2 — Under this Feature, each Member may elect to make deferrals to his 401(k) Account
and/or contributions to his Regular Account in an amount of 1% of, or subject to Article III,
Section 1, a flat amount of, Salary, or, if permitted by the Employer, either a percentage of his
Salary or flat dollar amount, up to a maximum percentage specified by the Employer not to exceed
100% (in 1% increments) of his Salary, except that amounts
deferred to the 401(k) Account shall reduce the Member’s contribution under Section 1 of
this Article. Amounts contributed under this Option 2 may be allocated between the 401(k)
Account and/or the Regular Account based on multiples of 1%. Notwithstanding anything
herein to the contrary, a Member making a Roth 401(k) Elective Deferral may only make such
deferral to his 401(k) Account.

 

15

 

	 	 	If so adopted, Employer contributions under the Plan, which shall be made on behalf of each
Member in an amount equal to a percentage of the Member’s 401(k) Elective Deferrals to his
401(k) Account and contributions to his Regular Account as specified by the Employer under
Section 2 of Article III of his Salary, shall first be allocated to a Member’s 401(k)
Account until total Member deferrals and Employer contributions allocated to the Member’s
401(k) Account equal a percentage specified by the Employer. Thereafter, the Employer
contributions, with respect to both Member 401(k) Elective Deferrals and Regular
contributions, shall be contributed to the Member’s Regular Account in an amount pursuant
to the percentage elected in the preceding sentence.
	 
	 	 	Notwithstanding the Employer election made under this Option 2, if the Member has deferred
amounts of his Salary equal to the maximum specified under the provisions of Paragraph (I)
below, the Employer shall contribute the remaining Employer contributions to the Member’s
Regular Account.
	 
	 	 	Option 3 — Under this Feature each Member may make deferrals to his 401(k) Account, but not
contributions to his Regular Account. The Employer shall contribute under the Plan on
behalf of each Member an amount equal to a percentage, specified by the Employer under
Section 2 of Article III, of the Member’s 401(k) Elective Deferrals to his 401(k) Account.
The Employer’s contributions under this Feature shall be made to the Member’s Regular
Account.
	 
	(D)	 	Roth Elective Deferrals.

	 	(1)	 	General Application.

	 	(a)	 	This subsection will apply to contributions beginning June 1, 2006.
	 
	 	(b)	 	As of June 1, 2006, if an Employer so elects, the Plan will accept Roth
Elective Deferrals made on behalf of Members. A Member’s Roth
Elective Deferrals will be allocated to a separate account maintained for
such deferrals as described in Paragraph (D)(2).
	 
	 	(c)	 	Unless specifically stated otherwise or as provided under applicable law, Roth
Elective Deferrals will be treated as elective deferrals for all purposes under the
Plan.

	 	(2)	 	Separate Accounting.

	 	(a)	 	Contributions and withdrawals of Roth Elective Deferrals will be credited and
debited, respectively, to the Roth 401(k) Account maintained for each Member.

 

16

 

	 	(b)	 	The Plan will maintain a record of the amount of Roth Elective Deferrals in
each Member’s Roth 401(k) Account.
	 
	 	(c)	 	Gains, losses and other credits or charges must be separately allocated on a
reasonable and consistent basis to each Member’s Roth 401(k) Account and the
Member’s other Accounts under the Plan.
	 
	 	(d)	 	No contributions other than Roth Elective Deferrals and properly attributable
earnings will be credited to Member’s Roth 401(k) Account.

	(E)	 	The actual deferral percentages for Highly Compensated Employees shall, in accordance with the
Code and IRS Regulations, satisfy either (1) or (2) as follows:

	 	(1)	 	Prior Year Testing:
	 
	 	 	 	Notwithstanding any other provision of this Section 4, the actual deferral
percentage for a Plan Year for Highly Compensated Employees for such Plan Year and
the prior year’s actual deferral percentage for Members who were Non-highly
Compensated Employees for the prior Plan Year must satisfy one of the following
tests: (a) the actual deferral percentage for a Plan Year of those Employees who
are Highly Compensated Employees for the Plan Year shall not exceed the prior
year’s actual deferral percentage of those Members who are Non-highly Compensated
Employees for the prior Plan Year multiplied by 1.25; or (b) the actual deferral
percentage for a Plan Year for Members who are Highly Compensated Employees for the
Plan Year shall not exceed the prior year’s actual deferral percentage for Members
who were Non-highly Compensated Employees for the prior Plan Year multiplied by
2.0, provided that the actual deferral percentage for Members who are Highly
Compensated Employees does not exceed the actual deferral percentage for Members
who were Non-highly Compensated Employees in the prior Plan year by more than 2
percentage points.
	 
	 	 	 	For the first Plan Year that the Plan permits any Member to make elective deferrals
and this is not a successor plan,
for purposes of the foregoing tests, the prior year’s Non-highly Compensated
Employees’ actual deferral percentage shall be 3 percent unless the Employer has
elected to use the current Plan Year’s actual deferral percentage for these
Members. The Employer may elect to change from the Prior Year Testing method to the
Current Year Testing method in accordance with the Code and IRS Regulations.
	 
	 	(2)	 	Current Year Testing:
	 
	 	 	 	If elected by the Employer, the actual deferral percentage tests in (a) and (b)
above, will be applied by comparing the current Plan Year’s actual deferral
percentage for Members who are Highly Compensated Employees for such Plan Year with
the current Plan Year’s actual deferral percentage for Members who are Non-highly
Compensated Employees for such year. Once made, this election can only be changed
and the Prior Year Testing method applied if the Plan meets the requirements for
changing to Prior Year Testing set forth in applicable IRS regulations.

 

17

 

	 	 	 	For purposes of this Section 4, the “actual deferral percentage” for a Plan Year
means, for a specified group of Members for a Plan Year, the average of the ratios
(calculated separately for each Member in such group) of (a) the amount of
deferrals and/or contributions made to the Member’s 401(k) Account for the Plan
Year, to (b) the amount of the Member’s compensation (as defined in Section 414(s)
of the Code) which, at the Employer’s election, shall include the compensation
required to be reported under Section 6041 or 6051 of the Code (i.e., “W-2
compensation”) for the Plan Year or, alternatively, where specifically elected by
the Employer, for only that part of the Plan Year during which the Member was
eligible to participate in the Plan. An Employee’s actual deferral percentage shall
be zero if no 401(k) Elective Deferral or contribution is made by him or on his
behalf for such applicable Plan Year. If the Plan and one or more other plans which
include cash or deferred arrangements are considered as one plan for purposes of
Sections 401(a)(4) and 410(b) of the Code, the cash or deferred arrangements
included in such plans shall be treated as one arrangement for purposes of this
Section 4.
	 
	 	 	 	In accordance with IRS Regulations, the actual deferral percentage of a Member who
is a Highly Compensated Employee and who is eligible to participate in two or more
cash or deferred arrangements maintained by his Employer shall be determined by
treating all such cash or deferred arrangements as a single arrangement.
	 
	 	(3)	 	Notwithstanding anything herein to the contrary, and in accordance with IRS Regulation
Section 1.401(k)-2(a)(6)(iv) and 1.401(m)-2(a)(6)(v), no qualified nonelective
contributions shall be taken into account in determining the actual deferral percentage for
a Plan Year for a Non-highly Compensated Employee under the Plan to the extent such
contributions exceed for such Non-highly Compensated Employee the greater of (a) 5% of the
Non-highly Compensated Employee’s compensation (as defined in Code Section 414(s)) and (b)
the product of (i) two times the “Plan’s representative contribution rate” (within the
meaning, as applicable, of IRS Regulation Section 1.401(k)-2(a)(6)(iv) and
Section 1.401(m)-2(a)(6)(v) and (ii) the Non-highly Compensated Employee’s compensation (as
defined in Code Section 414(s)).

	(F)	 	The Pentegra DC Plan Office shall determine as of the end of the Plan Year whether one of the
actual deferral percentage tests specified in Paragraph (E) above is satisfied for such Plan Year.
This determination shall be made after first determining the treatment of excess deferrals within
the meaning of Section 402(g) of the Code under Paragraph (I) below.

	 	(1)	 	In the event that neither of such actual deferral percentage tests is satisfied, the
Pentegra DC Plan Office shall, to the extent permissible under the Code and the IRS
Regulations, refund the excess contributions for the Plan Year in the following order of
priority: by (i) refunding such amounts deferred by the Member and allocated to his 401(k)
Account, or Roth 401(k) Account in accordance with Paragraph F(2) below which were not
matched by his Employer (and any earnings and losses allocable thereto), and (ii) refunding
amounts deferred for such Plan Year by the Member and allocated to his 401(k) Account,
or Roth 401(k) Account in accordance with Paragraph (F)(2) below, (and any earnings
and losses allocable thereto) and, in accordance with the Code and applicable IRS
Regulations, forfeiting the amounts contributed for such Plan Year by the Employer
with respect to the Member’s 401(k) Elective Deferrals that are returned pursuant
to this Paragraph (and any earnings and losses allocable thereto).

 

18

 

	 	(2)	 	In the case of a distribution of excess contributions, the Plan will distribute pre-tax
elective deferrals first.
	 
	 	(3)	 	The distribution of such excess contributions shall be made to Highly
Compensated Members to the extent practicable before the 15th day of the third
month immediately following the Plan Year for which such excess contributions were
made, but in no event later than the end of the Plan Year following such Plan Year
or, in the case of the termination of the Plan in accordance with Article XII or
termination of Employer participation in the Plan in accordance with Article XI, no
later than the end of the twelve-month period immediately following the date of
such termination. For purposes of this Section 4, “excess contributions” means,
with respect to any Plan Year, the excess of the aggregate amount of 401(k)
Elective Deferrals and/or contributions (and any earnings and losses allocable
thereto) made to the 401(k) Accounts of Highly Compensated Members for such Plan
Year, over the maximum amount of such deferrals and/or contributions that could be
made to the 401(k) Accounts of such Members without violating the requirements of
Paragraph (E) above, determined by reducing 401(k) deferrals and/or contributions
made by or on behalf of Highly Compensated Members in order of the actual deferral
percentages beginning with the Highly Compensated Employee with the largest 401(k)
Elective Deferral amount for the Plan Year until such amount is reduced to be equal
to the Highly Compensated Employee with the next largest 401(k) Elective Deferral
amount. The procedure described in the preceding sentence shall be repeated until
all excess contributions have been eliminated and, as applicable, refunded.
Notwithstanding anything herein to the contrary, and in accordance with IRS
Regulation Section 1.401(k)-2(b)(2)(iv), the income allocable to the excess
contributions to be refunded shall be equal to the allocable gain or loss for the
Plan Year in question and, as applicable, for the “gap period” following the close
of the Plan Year and ending on the date that is seven days preceding the
distribution date. The Plan shall determine the allocable income in accordance with
IRS Regulation Section 1.401(k)-2(b)(2)(iv)(C) or (D) or, in accordance with IRS
Regulation Section 1.401(k)-2(b)(2)(iv)(B), any reasonable method for computing the
income allocable to the excess contribution.

	(G)	 	Notwithstanding the provisions of Paragraphs (E) and (F) above, the amount of excess
contributions to be distributed pursuant to Paragraph (F) above, with respect to a Member for a
Plan Year, shall be reduced by any excess deferrals distributed to such Member for such Plan Year
pursuant to Paragraph (I) below.

 

19

 

	(H)	 	A withdrawal from the vested portion of a Member’s 401(k) Account may be made only upon (a)
attainment of age 591/2, (b) hardship (as determined by the Board in accordance with this Paragraph
(H)), (c) termination of Employment, (d) death, (e) disability or (f)
termination of an Employer’s participation in the Plan provided the Employer certifies in writing
in such form as is satisfactory to counsel that no “alternative defined contribution plan” within
the meaning of Code Section 401(k)(10) and IRS Regulations Section 1.401(k)-1(d)(4) will be
established or maintained by the Employer at the time of termination of participation in the Plan
or will be maintained through the period ending twelve months after distribution of all assets from
the Plan attributable to the Employer’s participation in the Plan and amounts distributed upon such
event shall be in the form of a “lump sum distribution” within the meaning of Section 402(e)(4)(D)
of the Code (without regard to Code Sections 402(e)(4)(D)(i)(i)-(iv)). A withdrawal is on account
of hardship only if the distribution is both made on account of an immediate and heavy financial
need of the Member and is necessary to satisfy such financial need, and further provided that no
earnings in the Member’s 401(k) Account credited on or after January 1, 1989 and/or Employer
contributions made to the Member’s 401(k) Account on or after January 1, 1989 may be distributed in
satisfying such need. For the purposes of this Paragraph (H), the term “immediate and heavy
financial need” shall be limited to the need of funds for (i) the payment of medical expenses
described in Section 213(d) of the Code previously incurred by the Member, the Member’s Spouse, or
any of the Member’s dependents (as defined in Section 152 of the Code) or necessary for those
persons to obtain such care, (ii) the payment of tuition and room and board for the next twelve
months of post secondary education of the Member, the Member’s Spouse, the Member’s children, or
any of the Member’s dependents (as defined in Section 152 of the Code and, for taxable years
beginning on or after January 1, 2005, without regard to Section 152(b)(1),(b)(2) and (d)(1)(B)),
(iii) the purchase (excluding mortgage payments) of a principal residence for the Member, (iv) the
prevention of eviction of the Member from his principal residence or the prevention of foreclosure
on the mortgage of the Member’s principal residence; (v) payments for burial or funeral expenses
for the Member’s deceased parent, Spouse, children or dependents (as defined in Section 152 of the
Code, without regard to Code Section 152(d)(1)(B)); or (vi) expenses for the repair of damage to
the Member’s principal residence that would qualify for the casualty deduction under Code Section
165 (determined without regard to whether the loss exceeds 10% of adjusted gross income). For
purposes of this Paragraph (H), a distribution generally may be treated as “necessary to satisfy a
financial need” if the Employer reasonably relies upon the Member’s written representation that the
need cannot be relieved (i) through reimbursement or
compensation by insurance or otherwise, (ii) by reasonable liquidation of the Member’s assets, to
the extent such liquidation would not itself cause an immediate and heavy financial need, (iii) by
cessation of Member 401(k) Elective Deferrals pursuant to Article III, Section 4 of the Plan or
Member Regular contributions pursuant to Article III, Section 1 of the Plan or (iv) by other
distributions or nontaxable (at the time of the loan) loans from plans maintained by the Employer
or by any other employer, or by borrowing from commercial sources on reasonable commercial terms.
The amount of any withdrawal pursuant to this Paragraph (H) shall not exceed the amount required to
meet the demonstrated financial hardship, including any amounts necessary to pay any federal income
taxes and penalties reasonably anticipated to result from the distribution, as certified to the
Plan by the Member.
	 
	 	 	No amounts may be withdrawn on account of hardship pursuant to this Paragraph prior to a Member’s
withdrawal of the remaining vested balance of his Regular Account and Rollover Account,
notwithstanding the withdrawal restrictions contained in Article VII, Section 2 or below.

 

20

 

	 	 	Only one in-service withdrawal under this Paragraph may be made in any Plan Year, and any
amounts paid under this Article may not be returned to the Plan. The amount of a withdrawal
under this Paragraph (H) must be not less than the lesser of (i) $1,000, (ii) the full
value of the vested portion of the 401(k) Account (reduced by the amount of post-December
31, 1988 earnings and Employer 401(k) contributions for those Members who have not attained
age 591/2), if such value is less than $1,000, or (iii) the amount approved as a hardship
withdrawal by the Board.
	 
	(I)	 	Notwithstanding any other provision of the Plan, no Member may defer to his 401(k) Account
during any Plan Year an amount in excess of $15,500 (in 2008) or such other amount as may be
provided in Section 402(g)(1) of the Code, and as adjusted for cost-of-living increases in
accordance with Section 402(g)(4) of the Code. In the event that the
401(k) Elective Deferrals for a Member exceeds the limitation in the previous sentence, the
amount of such excess, increased by any income and decreased by any losses attributable
thereto, shall be refunded to such Member no later than the April 15 of the Plan Year
following the Plan Year for which the elective deferrals were made.
	 
	 	 	For purposes of Article III, Section 4 of the Plan, no Member shall be permitted to have
elective deferrals made under this Plan, or any other qualified plan maintained by the
Employer during the taxable year, in excess of the dollar limitation contained in section
402(g) of the Code in effect for such taxable year, except to the extent permitted under
Section 9 of this Article and section 414(v) of the Code, if applicable.
	 
	(J)	 	Safe Harbor CODA
	 
	 	 	If the Employer has elected the Safe Harbor CODA option, the provisions of this Section
shall apply for the Plan Year and any provisions relating to the actual deferral percentage
test described in Section 401(k)(3) of the Code or the actual contribution percentage test
described in Section 401(m)(2) of the Code do not apply. Notwithstanding anything in the
Plan to the contrary, if the Employer has elected the Safe Harbor CODA option, then such
option shall comply and be administered in accordance
with the applicable provisions of the safe harbor requirements under the IRS Regulation
Sections 1.401(k)-3 and 1.401(m)-3. To the extent that any other provision of the Plan is
inconsistent with the provisions of this section, the provisions of the section govern.

	 	(i)	 	Actual Deferral Percentage Test Safe Harbor

	 	(1)	 	Unless the Employer elects to make enhanced matching contributions (within the meaning
of Section 401(k)(12)(B) of the Code and IRS Regulations Section 1.401(k)-3(c)(3)), the
Employer will elect to contribute monthly or on another basis for the Plan Year: (a) a safe
harbor matching contribution to the Plan on behalf of each eligible Employee equal to (I)
100 percent of the amount of the Employee’s 401(k) Elective Deferrals that do not exceed 3
percent of the Employee’s Salary for the Plan Year, plus (II) 50 percent of the amount of
the Employee’s 401(k) Elective Deferrals that exceed 3 percent of the Employee’s Salary but
that do not exceed 5 percent of the Employee’s Salary (“Basic Matching Contributions”); or
(b) a safe harbor non-elective contribution to the Plan on behalf of each eligible Employee
equal to at least 3 percent of the Employee’s Salary for the Plan Year.

 

21

 

	 	(2)	 	The Member’s benefit derived from the Actual Deferral Percentage Test Safe Harbor
Contributions is nonforfeitable and may not be distributed earlier than separation from
service, death, disability, an event described in Section 401(k)(10) of the Code, or the
attainment of age 591/2. In addition, such contributions must satisfy the Actual Deferral
Percentage Test Safe Harbor without regard to permitted disparity under Section 401(l) of
the Code.
	 
	 	(3)	 	At least 30 days, but not more that 90 days, before the beginning of the Plan Year, the
Employer will provide each Eligible Employee a comprehensive notice of the Employee’s
rights and obligations under the Plan, written in a manner calculated to be understood by
the average Eligible Employee. If an Employee becomes eligible after the 90th day before
the beginning of the Plan Year and does not receive the notice for that reason, the notice
must be provided no more than 90 days before the Employee becomes eligible but not later
than the date the Employee becomes eligible.
	 
	 	(4)	 	In addition to any other election periods provided under the Plan, each Eligible
Employee may make or modify a deferral election during the 30-day period immediately
following receipt of the notice described above.

Section 5. Remittance of Contributions

The contributions of both Members and their Employer (including an administrative fee, as
determined by the Board, to be paid by the Employer to defray expenses attributable to its
participation in the Plan) shall be recorded by the Employer and remitted to the Board so that (i)
in the case of Employer Contributions the Board shall be in receipt thereof by the 15th day of the
month next following the month in respect of which such contributions are payable and (ii) in the
case of Member after-tax contributions and 401(k) Elective Deferrals, the Trustee or custodian
shall be in receipt thereof as soon as reasonably practicable, but in no event later than the 15th
business day of the month following the month in which the Member contributions are received by the
Employer or the 15th business day of the month following the month in which such amount would
otherwise have been payable to the
Member in cash. Such amounts shall be credited to the Member’s Account pursuant to Article V.

Section 6. Transfer of Funds and Rollover Contributions

	(A)	 	Upon such terms and conditions as the Board and the IRS shall approve, and provided that all
benefits (including all optional forms of benefit) under the prior retirement plan are protected in
accordance with Section 411(d)(6) of the Code, or any successor thereto, and the IRS Regulations
thereunder, a transfer of funds may be made to the Plan from a prior retirement plan of an employer
which was qualified under Section 401(a) of the Code so long as such funds (a) have been allocated
to the individual members of such prior plan, (b) shall be allocated to the Accounts of the Members
of the Plan to whom they were allocated under such prior plan, and (c) shall be applied so that
each Member affected thereby would receive a benefit immediately after the transfer, if the Plan
then terminated, at least equal to the benefit he would have received upon a termination of such
prior plan immediately before such transfer. In addition to protecting those prior retirement plan
benefits as required in the preceding sentence, the Pentegra DC Plan Office may, in its discretion,
preserve any other prior retirement plan options which it
determines to be economically and administratively feasible and which are not required to
be protected under Section 411(d)(6) of the Code. Each Employee with respect to whom such a
transfer is made shall, upon such transfer, be eligible for membership in the Plan.

 

22

 

	(B)	 	If the funds so transferred are transferred from a retirement plan subject to Code Section
401(a)(11), then such funds shall be maintained in a separate account (including, as applicable, a
separate account for any such transfers that represent after-tax contributions and related
earnings) and any subsequent distribution of those funds, and earnings thereon, shall be subject to
the following provisions:

	 	(1)	 	The benefit to which a married Member is entitled shall, except as otherwise provided
in this Paragraph (B), be payable by purchase from an insurance company of a single premium
contract providing for a Qualified Joint and Survivor Annuity. The term, “Qualified Joint
and Survivor Annuity,” means a benefit providing an annuity commencing immediately for the
life of the Member, ending with the payment due on the last day of the month coincident
with or preceding the date of his death, and, if the Member dies leaving a Surviving
Spouse, a survivor annuity for the life of such Surviving Spouse equal to one half of the
annuity payable for the life of the Member under his Qualified Joint and Survivor Annuity,
commencing on the last day of the month following the date of the Member’s death and ending
with the payment due on the first day of the month coincident with or preceding the date of
such Surviving Spouse’s death.
	 
	 	(2)	 	In lieu of the form of benefit described immediately above, any benefit payable
pursuant to this Paragraph (B) may be paid in one cash payment thereof, subject to the
provisions of Subparagraph (5) below.
	 
	 	(3)	 	If a Member dies prior to the date payment of his benefit commences (i) without leaving
a Surviving Spouse, or (ii) leaving a Surviving Spouse and having made a valid election to
waive the Preretirement Survivor Annuity in accordance with Subparagraph (5) below, then
the remaining value of the Member’s account subject to this Paragraph (B) shall become
payable to his Beneficiary in a
lump sum subject to Article III, Section 8(E)(2) and Article VII, Section 3(B).
	 
	 	(4)	 	A Preretirement Survivor Annuity shall be paid to the Surviving Spouse of a Member or
former Member who dies before the commencement of payment of any benefit from an account
subject to this Paragraph (B). The term
“Preretirement Survivor Annuity” means a benefit providing for payment of 50% of
the Member’s account balance as of the Valuation Date coincident with or preceding
the date of his death, by the purchase of a single premium contract issued by an
insurance company providing a survivor annuity to his Surviving Spouse, for the
life of such Surviving Spouse. Payment of a Preretirement Survivor Annuity shall
commence in the month following the month in which the Member dies or as soon as
practicable thereafter; provided, however, that to the extent required by law, if
the value of the amount used to purchase a Preretirement Survivor Annuity exceeds
$500, then payment of the Preretirement Survivor Annuity shall not commence prior
to the date the Member reached (or would have reached, had he lived) Normal
Retirement Age without the written
consent of the Member’s Surviving Spouse. Absence of any required consent will result in a
deferral of payment of the Preretirement Survivor Annuity to the month following the month
in which occurs the earlier of (i) the date the required consent is received by the Board
or (ii) the date the Member would have reached Normal Retirement Age had he lived.

 

23

 

	 	(5)	 	(i) In the case of the Qualified Joint and Survivor Annuity, the Fund shall no less than 30
days and no more than 90 days prior to the annuity starting date provide each Member a written
explanation of: (i) the terms and conditions of the Qualified Joint and Survivor Annuity; (ii) the
Member’s right to make and the effect of an election to waive the Qualified Joint and Survivor
Annuity form of benefit; (iii) the rights of a Member’s Spouse; and (iv) the right to make, and
the effect of, a revocation of a previous election to waive the Qualified Joint and Survivor
Annuity. In the case of the Preretirement Survivor Annuity, the Fund shall provide each Member
within the applicable period for such Member a written explanation of the Preretirement Survivor
Annuity in such terms and in such manner as would be comparable to the explanation provided for
meeting the requirements applicable to the Qualified Joint and Survivor Annuity.
	 
	 	 	 	The applicable period for a Member is whichever of the following periods ends last: (i)
the period beginning with the first day of the Plan Year in which the Member attains age
32 and ending with the close of the Plan Year preceding the Plan Year in which the Member
attains age 35; (ii) a reasonable period ending after the individual becomes a Member; or
(iii) a reasonable period ending after this subparagraph (i) first applies to the Member.
Notwithstanding the foregoing, notice must be provided within a reasonable period ending
after separation from service in the case of a Member who separated from service before
attaining age 35.
	 
	 	 	 	For purposes of applying the preceding paragraph, a reasonable period ending after the
enumerated events described in (ii) and (iii) is the end of the two-year period beginning
one year prior to the date the applicable event occurs, and ending one year after that
date. In the case of a Member who separates from service before the Plan Year in which age
35 is attained, notice shall be provided within the two-year period beginning one year
prior to separation and ending one year after separation. If such a Member thereafter
returns to employment with an Employer, the applicable period for such Member shall be
redetermined.
	 
	 	 	 	(ii) A Member may, with the written consent of his Spouse (unless the Board makes a written
determination in accordance with the Code and the Regulations that no such consent is
required), elect in writing (i) to receive his benefit in a single lump sum payment within
the 90-day period ending on his annuity starting date (which is the first day of the first
period for which an amount is paid as an annuity or any other form); and (ii) to waive the
Preretirement Survivor Annuity within the period beginning on the first day of the Plan
Year in which the Member attains age 35 and ending on the date of his death. Any election
made pursuant to this Subparagraph (5) may be revoked by a Member, without spousal consent
at any time within which such election could have been made. Such an election or
revocation must be made in accordance with procedures developed by the Board and
shall be notarized.

 

24

 

	 	 	 	Any consent by a Spouse obtained under this provision (or establishment that the
consent of a Spouse may not be obtained) shall be effective only with respect to
such Spouse. A consent that permits designations by the Member without any
requirement of further consent by such Spouse must acknowledge that the Spouse has
the right to limit consent to a specific Beneficiary, and a specific form of
benefit where applicable, and that the Spouse voluntarily elects to relinquish
either or both of such rights. No consent obtained under this provision shall be
valid unless the Member has received the notice described in subparagraph (i)
above.
	 
	 	 	 	Notwithstanding anything to the contrary, effective for Plan Years beginning after
December 31, 1996, the 90-day period in which a Member may, with the written
consent of his Spouse, elect in writing to receive his benefit in a single lump sum
shall not end before the 30th day after the date on which explanations of the
Qualified Joint and Survivor Annuity and Preretirement Survivor Annuity are
provided. A Member may elect (with any applicable spousal consent) to waive any
requirement that the written explanation be provided at least 30 days before the
annuity starting date (or to waive the 30-day requirement under the preceding
sentence) if the distribution commences more than seven days after such explanation
is provided.
	 
	 	(6)	 	Notwithstanding the preceding provisions of this Paragraph (B), any benefit of $500,
subject to the limits of Article X, Section 4, or less shall be paid in a lump cash sum in
full settlement of the Plan’s liability therefor; provided, however, that in the case of a
married Member, no such lump sum payment shall be made after benefits have commenced
without the consent of the Member and his Spouse or, if the Member has died, the Member’s
Surviving Spouse. Furthermore, if the value of the benefit payable to a Member or his
Surviving Spouse is greater than $500 and the Member has or had not reached his Normal
Retirement Age, then to the extent required by law, unless the Member (and, if the Member
is married and his benefit is to be paid in a form other than a Qualified Joint and
Survivor Annuity, his Spouse, or, if the Member was married, his Surviving Spouse) consents
in writing to an immediate distribution of such benefit, his benefit shall continue to be
held in the Trust until a date following the earlier of (i) the date of the Board’s receipt
of all required consents or (ii) the date the Member reaches his earliest possible Normal
Retirement Age under the Plan (or would have reached such date had he lived), and
thereafter shall be paid in accordance with this Paragraph (B).

	(C)	 	Upon such terms and conditions as the Board shall approve, all Members (regardless of whether
their Accounts are active) shall be permitted to make rollover contributions to the Plan of amounts
held on their behalf in:

	 	(1)	 	a qualified plan described in section 401(a) or 403(a) of the Code, (including
after-tax contributions for direct rollovers);

 

25

 

	 	(2)	 	an annuity contract described in section 403(b) of the Code, (excluding after-tax
contributions);
	 
	 	(3)	 	an eligible plan under section 457(b) of the Code which is maintained by a state,
political subdivision of a state, or an agency or instrumentality of a state or political
subdivision of a state; and
	 
	 	(4)	 	an individual retirement account or annuity described in section 408(a) or 408(b) of
the Code that is eligible to be rolled over and would otherwise be includible in gross
income.
	 
	 	 	 	An Employer may, at its option, permit its Employees to make rollover contributions
prior to the date as of which the Employees become eligible for membership in the
Plan. All such amounts which are accepted by the Pentegra DC Plan Office shall be
certified in form and substance satisfactory to the Pentegra DC Plan Office by the
Member as consisting of all or a portion of an “eligible rollover distribution” or
a “rollover contribution” within the meaning of Section 402(c)(4) or Section
408(d)(3), respectively, of the Code. A Member shall have a nonforfeitable vested
interest in all such amounts credited to his Rollover Account.
	 
	 	(5)	 	Notwithstanding anything in this paragraph (C) to the contrary, the Plan will accept a
rollover contribution to a Roth 401(k) Account if it is a direct rollover from another Roth
elective deferral account under an applicable retirement plan described in Section
402A(e)(1) of the Code, and only to the extent the rollover is permitted under the rules of
Section 402(c) of the Code and the IRS Regulations issued thereunder. The Plan will accept
a rollover contribution to a Roth 401(k)
Account which is not a direct rollover only to the extent the rollover is permitted
under applicable law.
	 
	 	(6)	 	Upon such terms and conditions as the Board and the IRS shall approve, a Member shall
be permitted to transfer amounts deferred and/or contributed on behalf of such Member to a
nonqualified Plan maintained by his Employer to the Plan. Such transfer to the Plan from
the Employer’s nonqualified deferred
compensation Plan shall be made by the 15th day of the third month immediately following
the Plan Year for which compensation was deferred by the Member.
The transferred amounts shall be treated as contributions under Article III for
such Plan Year and shall be categorized as 401(k) Elective Deferrals under Article
III, Section 4 or as Employer Matching Contributions under Article III, Section 2,
as applicable.

 

26

 

Section 7. Limitations on Member Contributions and Matching Employer
Contributions

	(A)	 	Notwithstanding any other provision of this Section 7, the actual contribution percentage for a
Plan Year for Highly Compensated Employees shall, in accordance with the Code and IRS Regulations,
satisfy either (i) or (ii) as follows:

	 	(1)	 	Prior Year Testing:

	 	(a)	 	the actual contribution percentage for a Plan Year for Members who are Highly
Compensated Employees for the Plan Year shall not exceed the prior Plan Year’s actual
contribution percentage for Members who were Non-highly Compensated Employees for the prior
Plan Year multiplied by 1.25; or (b) the actual contribution percentage for Members who are
Highly Compensated Employees for the Plan Year shall not exceed the prior year’s actual
contribution percentage for Members who were Non-highly Compensated Employees for the prior
Plan Year multiplied by 2, provided that the actual contribution percentage for Members who
are Highly Compensated Employees does not exceed the “actual contribution percentage” for
Members who were Non-highly Compensated Employees in the prior Plan Year by more than 2
percentage points.

	 	 	 	For the first Plan Year this Plan permits any Member to make contributions under Article
III, Section 1 (after-tax), provides for Employer matching contributions or both, and this
is not a successor plan, for purposes of the foregoing tests, the prior Plan Year’s
Non-highly Compensated Employees’ actual contribution percentage shall be 3 percent unless
the Employer has elected to use the current Plan Year’s actual contribution percentage for
these Members.

	 	(ii)	 	Current Year Testing:
	 
	 	 	 	If elected by the Employer, the actual contribution percentage tests in (a) and (b),
above, will be applied by comparing the current Plan Year’s actual contribution percentage
for Members who are Highly Compensated Employees for such Plan Year with the current Plan
Year’s actual contribution percentage for Members who are Non-highly Compensated Employees
for such year. Once made, this election can only be changed and the Prior Year Testing
method applied if the Plan meets the requirements for changing to Prior Year Testing set
forth in applicable IRS regulations.
	 
	 	 	 	For purposes of this Section 7, the “actual contribution percentage” for a Plan Year means,
for a specified group of
Employees, the average of the ratios (calculated separately for each Employee in such
group) of (a) the sum of (i) Employer matching contributions credited to his Regular
Account as described in Section 2 and Section 3, Formula (1) of this Article for the Plan
Year, (ii) Member contributions credited to his Regular Account for the Plan Year, and
(iii) in accordance with and to the extent permitted by the IRS Regulations, 401(k)
Elective Deferrals credited to his 401(k) Account, to (b) the amount of the Member’s
compensation (as defined in Section 414(s) of the Code) which, at the Employer’s election,
shall include the compensation required to be reported under Section 6041 or 6051 of the
Code (i.e., “W-2 compensation”) for the Plan Year or, alternatively, where specifically
elected by the Employer, for only that part of the Plan Year during which the Member was
eligible to participate in the Plan. The 401(k) Elective Deferrals referred to in (iii)
above in this Paragraph (A) may be taken into account in determining the actual
contribution percentage for a Plan Year if the actual deferral percentage test is satisfied
prior to and following the
exclusion of the 401(k) Elective Deferrals that are used to satisfy the actual
contribution percentage test. An Employee’s actual contribution percentage shall be
zero if no such contributions are made by him or on his behalf for such Plan Year.
The actual contribution percentage taken into account under this Paragraph (A) for
any Highly Compensated Employee who is eligible to make Member contributions or
receive Employer matching contributions under two or more plans described in
Section 401(a) of the Code or arrangements described in Section 401(k) of the Code
that are maintained by the Employer shall be determined as if all such
contributions were made under a single plan.

 

27

 

	 	(iii)	 	Notwithstanding anything in this Section 7 to the contrary, and in accordance with
IRS Regulation 1.401(m)-2(a)(5), no Employer matching contributions shall be taken into
account in determining the actual contribution percentage for a Plan Year for a
Non-highly Compensated Employee under the Plan to the extent such contributions exceed
for such Non-highly Compensated Employee the greatest of (A) 5% of the Non-highly
Compensated Employee’s compensation (as defined in Code Section 414(s)); (B) the
Non-highly Compensated Employee’s 401(k) Elective Deferrals for the Plan Year; and (C)
the product of (1) two times the Plan’s “representative matching rate” (within the
meaning of IRS Regulation Section 1.401(m)-2(a)(5)(ii)) and (2) the Non-highly
Compensated Employee’s 401(k) Elective Deferrals. The foregoing limitation on Employer
matching contributions shall also apply to matching contributions with respect to a
Non-highly Compensated Employee’s after-tax contributions or the total of a Non-highly
Compensated Employee’s 401(k) Elective Deferrals and after-tax contributions.

	(B)	 	The Pentegra DC Plan Office shall determine as of the end of the Plan Year whether one of the
actual contribution percentage tests specified in Paragraph (A) above is satisfied for such Plan
Year. This determination shall be made after first determining the treatment of excess deferrals
within the meaning of Section 402(g) of the Code under Article III, Section 4(I) and then
determining the treatment of excess contributions under Article III, Section 4(F). In the event
that neither of the actual contribution percentage tests is satisfied, the Pentegra DC Plan Office
shall (i) refund the excess aggregate contributions to
the extent attributable to Member after-tax contributions and vesting matching contributions for
which the underlying Member after-tax contributions or 401(k) Elective Deferrals are not subject to
correction under the actual deferral percentage or actual contribution percentage tests for such
year (and any income related thereto) and (ii) forfeit the excess aggregate contributions to the
extent attributable to non-vested Employer matching contributions and vested Employer matching
contributions for which the underlying Member after-tax contributions or 401(k) Elective Deferrals
are subject to correction under the actual deferral percentage or actual contribution percentage
tests for such year (and any income related thereto) in the manner described in Paragraph (C)
below. For purposes of this Section 7, “excess aggregate contributions” means, with respect to any
Plan Year and with respect to any Member, the excess of the aggregate amount of contributions (and
any earnings and losses allocable thereto) made as (a) Employer matching contributions to their
Regular Accounts, (b) Member contributions to their Regular Accounts and (c) 401(k) Elective
Deferrals by Members to their 401(k) Accounts (to the extent permitted by the IRS Regulations and
if the Pentegra DC Plan Office elects to take into account such elective deferrals when
calculating the actual contribution percentage) of Highly Compensated Members for such Plan
Year, over the maximum amount of such contributions that could be made as Employer matching
contributions to Regular Accounts, Member contributions to Regular Accounts and 401(k)
Elective Deferrals by Members to 401(k) Accounts of such Members without violating the
requirements of Paragraph (A) above.

 

28

 

	(C)	 	To the extent excess aggregate contributions must be refunded or forfeited for a Plan Year,
such excess amounts will be refunded (or, as applicable, forfeited) first to the Highly Compensated
Employees with the largest Contribution Percentage Amounts (as defined below) taken into account in
calculating the actual contribution percentage test for the year the excess arose and continuing in
descending order until all the excess aggregate contributions are refunded (or, as applicable,
forfeited). For purposes for the preceding sentence, the “largest amount” is determined after
distribution of any excess aggregate contributions. For purposes of this paragraph, “Contribution
Percentage
Amounts” means the sum of Member after-tax contributions, Employer matching contributions,
and Employer supplemental contributions under Formula (1) made under the Plan on behalf of
the Member for the Plan Year. However, such Contribution Percentage Amounts shall not
include Employer matching contributions that are forfeited either to correct excess
aggregate contributions or because the contributions to which they relate are excess
deferrals, excess contributions or excess aggregate contributions. The refund or
forfeitures of such excess aggregate contributions shall be made with respect to such
Highly Compensated Members to the extent practicable before the 15th day of the third month
immediately following the Plan Year for which such excess aggregate contributions were
made, but in no event later than the end of the Plan Year following such Plan Year or, in
the case of the termination of the Plan in accordance with Article XII or termination of
Employer participation in the Plan in accordance with Article XI, no later than the end of
the twelve-month period immediately following the date of such termination.

	(D)	 	Notwithstanding anything in this Article III, Section 7 to the contrary, and in accordance with
IRS Regulation Section 1.401(m)-2(b)(2)(iv), the income allocable to the excess aggregate
contributions
shall be equal to the allocable gain or loss for the Plan Year in question and, as applicable, for
the “gap period” following the close of the Plan Year and ending on the date that is seven days
preceding the distribution date. The Plan shall determine the allocable income in accordance with
IRS Regulation Section 1.401(m)-2(b)(2)(iv)(C) or (D) or, in accordance with IRS Regulation Section
1.401(m)-2(b)(2)(iv)(B), any reasonable method for computing the income allocable to the excess
aggregate contributions.
	 
	(E)	 	Should an Employer’s matching formula fail to satisfy the applicable nondiscrimination
requirements under the Code, the Employer shall be permitted to make additional matching
contributions to the Regular account of Non-highly Compensated Employees (to be determined at the
Employer’s discretion) and shall be contributed by the Employer by March 15th following the Plan
Year in which matching contributions is discriminatory. Such matching contributions shall be added
to the matching contributions for the immediately preceding Plan Year and shall be subject to this
Section 7.

 

29

 

Section 8. Profit Sharing Feature

	(A)	 	An Employer may, at its option, adopt a Profit Sharing Feature as described herein, subject
to any other provisions of the Plan, where applicable. This Feature may be adopted either in
lieu of, or in addition to, any other Plan Feature contained in this Article III, including
the contributions described in Sections 1 through 4 of this Article. The Profit Sharing
Feature is designed to provide the Employer a means by which to provide discretionary
contributions on behalf of Employees eligible under the Plan.

Where investments provided for the contributions permitted under Article III, Sections 1
through 4 were subject to the Members’ investment directions among the Investment Funds, and
the Profit Sharing Feature elected by the Employer requires that all account balances be
invested in the Stable Value Fund or the Government Money Market Fund (subject to rules
adopted by the Board), the accounts provided under Article III, Sections 1 through 4 will
continue to be subject to the Members’ directions, pursuant to the provisions of Article IV.

	(B) 	(1)	 	 Subject to the provisions of Article X, Section 1, an Employer may, but shall not be
required to, contribute on behalf of each of its Members, on an annual (or at the election of
the Employer, quarterly) basis for any Plan Year or fiscal year of the Employer (as the
Employer shall elect), a discretionary amount not to exceed the maximum amount allowable as a
deduction to the Employer under the provisions of Section 404 of the Code. Such Profit Sharing
contribution must be received by the Pentegra DC Plan Office within the time prescribed by
law, including extensions of time, for filing of the Employer’s federal income tax return
following the close of the Contribution Determination Period on behalf of all those Members
who were in its employ on the last working day of such Contribution Determination Period. For
purposes of making the allocations described in this Subparagraph (B)(1), a Member who is on a
Type 1 non-military Leave of Absence (as defined in Article I, Paragraph (23) and Article X,
Section 8(B)(1)) or a Type 4 military Leave of Absence (as defined in Article I, Paragraph
(23) and Article X, Section 8(B)(4)), shall, notwithstanding the provisions of this Paragraph,
be treated as if he were a Member who was an Employee in Employment on the last day of such
Contribution Determination Period.

	 	(2)	 	A Profit Sharing Account shall be established and maintained on behalf of each
Member whose Employer has adopted the Profit Sharing Feature showing each Member’s
interests in the Investment Funds or other investment vehicles attributable solely to
such Profit Sharing contributions. The interest in each Investment Fund shall be
represented by Units. These Units will be valued in accordance with Article V. Such
account shall be known as the “Profit Sharing Account,” as defined under Article I,
Paragraph (31) and shall be an account segregated from all other accounts maintained
under the Plan with respect to such Member.

 

30

 

	(C) 	(1)	 	Contributions shall be allocated to each Member’s Profit Sharing Account for the
Contribution Determination Period at the election of the Employer, in accordance with one of
the options selected below: (i) in the same ratio as each Member’s Salary during such
Contribution Determination Period bears to the total of such Salary of all Members, (ii) in
the same ratio as each Member’s Salary for the portion of the Contribution Determination
Period during which the Member satisfied the Employer’s eligibility requirement(s) bears to
the total of such Salary of all Members or (iii) an Employer may integrate the Profit Sharing
Feature with Social Security in accordance with the following provision.

	 	(a)	 	If the annual (or quarterly, if applicable) contribution for any Contribution
Determination Period (which period shall include, for the purposes of the following
maximum Social Security integration levels provided under Subparagraphs (C)(1) and (2) for
those Employers who have elected quarterly allocations of contributions, the four quarters
of a Plan Year or fiscal year) is allocated based on a uniform percentage, such
contribution shall be allocated to each Member who is employed by the Employer on the last
day of such Contribution Determination Period in a uniform percentage (i) of each Member’s
Salary during the Contribution Determination Period (the “Base Contribution Percentage”),
plus a uniform percentage of each Member’s Salary for the Contribution Determination
Period in excess of the Social Security Taxable Wage Base for such Contribution
Determination Period (the “Excess Contribution Percentage”), or (ii) of each Member’s
Salary for the portion of the Contribution Determination Period during which the Member
satisfied the Employer’s eligibility requirement(s), if any, up to the Base Contribution
Percentage for such Contribution Determination Period, plus a uniform percentage of each
Member’s Salary for the portion of the Contribution Determination Period during which the
Member satisfied the Employer’s eligibility requirement(s), equal to the Excess
Contribution Percentage.

	 	(b)	 	If the annual (or quarterly, if applicable) contribution for any Contribution
Determination Period (which period shall include, for the purposes of the following
maximum Social Security integration levels provided under Subparagraphs (C)(1) and (2) for
those Employers who have elected quarterly allocations of contributions, the four quarters
of a Plan Year or fiscal year) is allocated based on a specified dollar amount, such
contribution shall be allocated to each Member who is employed by the Employer on the last
day of such Contribution Determination Period as follows:

	 	(i)	 	If the Plan is top heavy with respect to the Employer, (A) contributions will
be allocated to each Member’s Account in the ratio that each Member’s Salary
bears to the total of all Members’ Salary, but not in excess of 3% of such
Member’s Salary; (B) any remaining contributions after the application of (A)
will be allocated to each Member’s Account in the ratio of each Member’s Salary
for the Plan Year in excess of the
Integration Level (as defined in the applicable Employer resolution) bears to the
sum of all Members’ Salary in excess of the Integration Level, but not in excess
of 3% of such Member’s excess Salary; (C) any remaining contributions after the
application of clauses (A) and (B) will be allocated to each Member’s Account in
the ratio that the sum of each Member’s total Salary and Salary in excess of the
Integration Level bears to the sum of all Members’ total Salary and Salary in
excess of the Integration Level, but not in excess of the profit sharing Maximum
Disparity Rate (as defined below); and (D) any remaining contributions after the
application of clauses (A), (B) and (C) will be allocated to each Member’s
Account in the ratio that each Member’s Salary bears to the total of all Members’
Salary. If the Plan is not top-heavy with respect to the Employer, or if the
minimum top heavy contribution or benefit is provided under another plan, clauses
(A) and (B) may be disregarded.

 

31

 

	 	(ii)	 	The profit sharing Maximum Disparity Rate is equal to the lesser of
(A) or (B), reduced by the percentage of Salary allocated under Paragraph
(C)(1)(b)(i)(A) above,: (A) 5.7%; or (B) the applicable percentage
determined as follows: (1) if the Integration Level is more than twenty
percent (20%), but less than eighty percent (80%), of the Social Security
Taxable Wage Base, the applicable percentage is 4.3%; (2) if the
Integration Level is eighty percent (80%) or more of the Social Security
Taxable Wage Base, the applicable percentage is 5.4%.

	 	(2)	 	The Excess Contribution Percentage described in Subparagraph (1) above may not exceed
the lesser of (i) the Base Contribution Percentage, or (ii) the greater of (1) 5.7% or (2)
the percentage equal to the portion of the Code Section 3111(a) tax imposed on employers
under the Federal Insurance Contributions Act (as in effect as of the beginning of the Plan
Year) which is attributable to old-age insurance. For purposes of this Subparagraph (2),
“compensation” as defined in Section 414(s) of the Code shall be substituted for “Salary” in determining the
Excess Contribution Percentage and the Base Contribution Percentage.

	 
	 	(3)	 	The Employer may not adopt the Social Security integration options provided above if
any other integrated defined contribution or defined benefit plan is maintained by the
Employer during any Contribution Determination Period.

	 
	 	(4)	 	No contributions by Members shall be made under the Profit Sharing Feature provided
under this Section 8 of Article III.

	(D) 	(1)	 	Contributions under the Profit Sharing Feature shall be invested in accordance with the
provisions and procedures of Article IV, except as otherwise provided in this Paragraph (D). At the
Employer’s election, contributions on behalf of
Members may be invested (i) entirely in the Stable Value Fund or the
Government Money Market Fund, subject to Board-adopted rules, (ii) pursuant to the
Member’s directions among the Investment Funds and other investment vehicles or
(iii) entirely in a QDIA. If the Employer does not so elect, or until an effective
direction is made by Members, all contributions made pursuant to this Article III,
Section 8, shall be invested in a QDIA.

	 	(2)	 	A Member’s investment directions, if any, with respect to contributions made under the
Profit Sharing Feature, shall be submitted in writing and shall be separate from the
directions submitted with respect to all other contributions under the Plan.

 

32

 

	 	(3)	 	Where an Employer previously elected to invest contributions pursuant to Article IV and
subsequently elects to have all future contributions invested entirely in accordance with
Subparagraph (D)(1) above, Units previously accumulated in the Investment Funds or other
investment vehicles prior to such election will continue to be subject to the Members’
investment directions in accordance with Article IV.
All future Employer contribution allocations made following the Employer’s election
shall be allocated in accordance with Subparagraph (D)(1).

	(E) 	(1)	 	Except as otherwise provided under Article VII, Section 2, no amounts may be withdrawn from
a Member’s Profit Sharing Account while still employed by the Employer, other than (i) amounts
required to be distributed pursuant to the terms of a Qualified Domestic Relations Order, as
defined in Article X, Section 6 of the Plan; or (ii) amounts withdrawn on account of mistake of
fact, within one year after the payment of the contribution, as reviewed and approved by the
Pentegra DC Plan Office.

	 	(2)	 	Subject to the provisions of Article VII of the Plan, upon receipt by the Plan of a
notice of termination of Employment, a Member may request to withdraw any or all vested
amounts in his Profit Sharing Account, including any amounts held in a Rollover Account for
such Member, following the filing of a notice of withdrawal with the Pentegra DC Plan
Office.

Section 9. Catch-up Contributions

All employees who are eligible to make elective deferrals under this Plan and who have attained age
50 before the close of the Plan Year shall be eligible to make catch-up contributions in accordance
with, and subject to the limitations of, Section 414(v) of the Code. Such catch-up contributions
shall not be taken into account for purposes of the provisions of the Plan implementing the
required limitations of Sections 402(g) and 415 of the Code. The Plan shall not be treated as failing to satisfy the provisions of the Plan
implementing the requirements of section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the
Code, as applicable, by reason of the making of such catch-up contributions. Catch-up contributions
made pursuant to this Article III, Section 9 shall, at the Employer’s election, be eligible for
matching contributions in accordance with Article III, Section 2.

Section 10. Automatic Enrollment

	(A)	 	An Employer may elect that 401(k) Elective Deferrals shall automatically be made to the Plan on
behalf of a Member in lieu of Salary, unless a Member affirmatively elects: (1) that no such 401(k)
Elective Deferrals shall be made to the Plan, or (2) in accordance with Article III, Section 1, the
percentage of Salary, or specified dollar amount that shall be contributed to the Plan as a 401(k)
Elective Deferrals.

	 	(1)	 	An Employer so electing shall also elect: (a) whether such 401(k) Elective Deferrals
shall be pre-tax elective deferrals or Roth Elective Deferrals; and (b) the percentage of
the Member’s Salary, or, as applicable, flat dollar amount, which shall be contributed to
the Plan.

 

33

 

	 	(2)	 	Notwithstanding anything in Article III, Section 10(A) to the contrary, an Employer may
elect to limit the automatic enrollment feature to Employees who commence Employment on or
after the date the automatic enrollment feature becomes effective with respect to the
Employer, or to those Employees who have not yet commenced participation in the Plan,
provided that such Employer election shall not apply if the Employer has elected to meet
the requirements of (C) or (D) of this Article III, Section 10.

	 
	 	(3)	 	The automatic contributions under this Section 10 shall cease to apply with respect to
a Member if the Member affirmatively elects: (a) to have 401(k) Elective Deferrals made in
a different amount or percentage of Salary, as applicable; or (b) not to have 401(k)
Elective Deferrals made on his behalf.

	 
	 	(4)	 	Automatic 401(k) Elective Deferrals will be invested in a QDIA, until a Member
affirmatively indicates how such amounts shall be invested.

	(B)	 	An Employer who elects that 401(k) Elective Deferrals be automatically made under Article III,
Section 10(A) may elect that such elective deferrals be made pursuant to either Paragraph (C) or
(D) of this Article III, Section 10.

	 
	(C)	 	Eligible Automatic Contribution Arrangement. In accordance with Section 414(w) of the
Code and the IRS Regulations issued thereunder, an “eligible automatic contribution
arrangement” shall provide as follows:

	 	(1)	 	The default level of a Member’s automatic 401(k) Elective Deferral shall be a uniform
percentage of Salary elected by the Employer.

	 
	 	(2)	 	If an Employer elects, with respect to all of its Employees or a specified group of its
Employees, to allow Members to receive a distribution of automatic 401(k) Elective
Deferrals subject to the terms of the Plan and applicable law, a Member, on whose behalf
automatic 401(k) Elective Deferrals have been made, may elect to receive a distribution
equal to the amount of the automatic 401(k) Elective Deferrals (as adjusted for
attributable earnings or losses), provided such election is made within 90 days of the
first automatic 401(k) Elective Deferral. Such distribution may be reduced by any generally
applicable fees.

	 	(a)	 	An Employer matching contribution contributed in connection with an automatic
401(k) Elective Deferral shall be forfeited in the event a Member elects to
withdraw his 401(k) Elective Deferrals under this Paragraph (C)(2). Such forfeited
matching contribution shall be subject to Article VI, Section 2.

	 	(3)	 	The Employer shall provide each Member to whom this Paragraph (C) applies a notice
which includes the following information: the level of 401(k) Elective Deferrals which will
automatically be made if a Member does not make an affirmative election, the Member’s right
to elect not to have 401(k) Elective Deferrals made on his behalf (or to elect to have
contributions made in a different amount or percentage of Salary) and how 401(k) Elective
Deferrals under this Paragraph (C) will be invested.

 

34

 

	(D)	 	Qualified Automatic Contribution Arrangement. In accordance with Section 401(k)(13) of the Code
and the IRS Regulations issued thereunder, a “qualified automatic contribution arrangement” shall
provide as follows:

	 	(1)	 	Amount of Automatic Deferral. The Employer shall elect a default 401(k)
Elective Deferral level which shall be a uniform percentage of Salary. The
percentage that first applies to a Member shall apply until the end of the last day
of the Plan Year following the Plan Year in which the initial default 401(k)
Elective Deferral was made. An Employer shall also elect default 401(k) Elective
Deferral levels for the following Plan Years, and such default levels shall
increase by at least 1% in each of the next 3 successive Plan Years, unless the
default 401(k) Elective Deferral satisfies the minimum default levels in (D)(1)(a).

	 	(a)	 	The minimum percentage an Employer may elect shall be 3% of Salary.
Such minimum percentage shall increase by 1% in the each of the 3
successive Plan Years discussed above to a minimum percentage of no less
than 6%.

	 
	 	(b)	 	Notwithstanding anything herein to the contrary, the default 401(k) Elective
deferral level shall not exceed 10% of Salary.

	 	(2)	 	An Employer who has elected to have 401(k) Elective Deferrals automatically be made
under this Paragraph (D) shall be required to make contributions on behalf of Non-highly
Compensated Employees. An Employer shall elect whether such contributions shall be made in
accordance with (a) or (b) below.

	 	(a)	 	An Employer may elect to make a nonelective contribution equal to at least 3%
of each eligible Non-highly Compensated Employee’s Salary.

	 
	 	(b)	 	An Employer may elect to make a matching contribution to eligible employees
equal to: (i) 100% of the 401(k) Elective Deferrals made under this Paragraph (D)
that do not exceed 1% of the applicable Member’s Salary; and (ii) at least 50% of
the 401(k) Elective Deferrals made under this Paragraph (D) exceeding 1%, but not
exceeding 6%, of the Member’s Salary.

	 
	 	(c)	 	Notwithstanding anything in Article VI to the contrary, all Employer
contributions under this Paragraph (D) shall be fully vested after the Member
completes two Years of Employment.

	 
	 	(d)	 	Employer contributions under this Paragraph (D) may not be distributed earlier
than separation from service, death, disability, an event described in Section
401(k)(10) of the Code, or the attainment of age 591/2.

 

35

 

	 	(3)	 	The Employer shall provide each Member to whom this Paragraph (D) applies a notice
which includes the following information: the Member’s right to elect not to have 401(k)
Elective Deferrals made on his behalf (or to elect to have contributions made in a
different amount or percentage of Salary) and how 401(k) Elective Deferrals under this
Paragraph (C) will be invested. Such notice shall also include such information as
specified in Article III, Section 4(J)(3).

	(E)	 	Timing of Notices. The Employer shall provide the notices required by Paragraphs (C) and (D) in
accordance with the following timeframes. An initial notice shall be provided to newly eligible
Members no more than 90 days before the Member is first eligible to make 401(k) Elective Deferrals
under the Plan, but no later than the date he first becomes eligible. An annual notice shall be
provided to Members within a reasonable time before the beginning of each Plan Year. Such annual
notice shall be provided at least 30 days, but no earlier than 90 days, in advance of each
subsequent Plan Year, or such other period as may be permitted by law.

 

36

 

ARTICLE IV INVESTMENT OF CONTRIBUTIONS

Section 1. General

All contributions to the Plan shall, upon receipt by the Board, be delivered to the Trustee to be
held in the Trust Fund and invested and distributed by the Trustee in accordance with the
provisions of the Plan and Trust Agreement. The Trust Fund shall consist of certain investment
funds (each an “Investment Fund”) or other investment vehicles as described in the Trust Agreements
and as designated by the Board.

To the extent made available under the Plan, an Employer may elect to allow Members to direct the
investment of their Accounts, pursuant to, and in accordance with, such rules and procedures as may
be prescribed by the Employer or the Board, to a self directed brokerage account. Should a self
directed brokerage account be made available under the Plan, the Board may elect to provide, to all
Members who have terminated employment with their Employer, the option to direct the investment of
their Account to a self directed brokerage account. Where an Employer or the Board elects to
provide a self directed brokerage account under the Plan, the Trustee may invest amounts held by it
in a self directed brokerage account maintained by Charles Schwab & Co., Inc. (or any other such
entity which provides a self directed brokerage account) on behalf of Plan Members who elect to
utilize such investment vehicle.

A Trustee may in its discretion invest any amounts held by it in any Investment Fund in any
commingled or group trust fund described in Section 401(a) of the Code and exempt under Section
501(a) of the Code or in any common trust fund exempt under Section 584 of the Code, provided that
such trust fund satisfies the requirements of this Plan applicable to such investment fund and that
the Trustees serve as Trustee of such commingled, group or common trust fund. To the extent that
the Investment Funds are at any time invested in any commingled, group or common trust fund, the
declaration of trust or other instrument pertaining to such fund and any amendments thereto are
hereby adopted as part of this Agreement and deemed to form a part of the Plan.

Except as provided in Article III, Section 8(D)(1), each Member shall direct in writing that his
contributions (including 401(k) Elective Deferrals and rollover contributions, if any) and the
contributions made by his Employer (including Profit Sharing contributions) on his behalf shall be
invested (a) entirely in any single Investment Fund or other investment vehicle (subject to
additional restrictions imposed by the Board), or (b) in any combination of Investment Funds or
investment vehicles offered under the Plan, in multiples of 1% (subject to additional restrictions
imposed by the Board). Until an effective direction is made by the Member, all such contributions
shall be invested in a QDIA.

Any such investment direction shall be followed until changed. Subject to the provisions of the
following paragraphs of this Section, one time each business day (or, as elected by the Employer,
once per month, or once per quarter) a Member may change his investment direction as to future
contributions and also as to the value of his accumulated amounts in
the Investment Funds or other investment vehicles. Such directed change will become effective upon
the Valuation Date coinciding with or next following the date which his notice was received and
processed by the Pentegra DC Plan Office subject to the same conditions with respect to the amount
to be transferred under this Section which are specified in the Plan procedures for determining the
amount of payments made under Article VII, Section 1(A) of the Plan.

 

37

 

Except as otherwise provided below, a Member may not direct a transfer of his accumulated units in
the Stable Value Fund to the Government Money Market Fund. A Member may direct a transfer from any
other Investment Fund to the Government Money Market Fund provided that, except as otherwise
provided below, amounts previously transferred from the Stable Value Fund, to such Investment Fund
remain in such funds for a period of three months prior to being transferred to the Government
Money Market Fund.

Notwithstanding anything in this Article IV to the contrary, if a Member participates in the
automatic enrollment feature provided in Article III, Section 10 (other than an automatic
enrollment feature provided in Section 10(C) of Article III which shall always be invested in a
Qualified Default Investment Alternative), and fails to make an effective investment direction with
respect to such deferral contributions, such amounts shall be invested in a Qualified Default
Investment Alternative.

Section 2. Qualified Default Investment Alternative

	(A)	 	The Accounts of a Member, who fails to provide affirmative instructions with respect to the
investment of such Accounts, shall be invested in accordance with this Article IV, Section 2. For
purposes of this Article IV, Section 2, the term “Member” shall include a
Beneficiary.

	 
	(B)	 	The Employer shall furnish the following materials to the Member:

	 	(1)	 	An initial notice shall be provided to the Member: (1) at least 30 days in advance of
Membership eligibility, or least 30 days in advance of the date of any first investment in
the QDIA on behalf of the Member, or (2) on or before the date of becoming a Member under
Article II, Section 2, if the Member has an opportunity to make a withdrawal in accordance
with Article III, Section 10(C).

	 
	 	(2)	 	An annual notice shall be provided to the Member within a reasonable period of time of
at least 30 days, but no earlier than 90 days, in advance of each subsequent Plan Year, or
such other period as may be permitted by law.

	 
	 	(3)	 	The notice provided under Paragraphs (B)(1) and (2) of this Article IV, Section 2 shall
include : (a) a description of the circumstances under which assets in the Member’s Account
may be invested on behalf of the Member in a QDIA;
(b) an explanation of the Member’s right to direct the investments of his Accounts; (c) a
description of the QDIA, including a description of the investment objectives, risk and
return characteristics and fees and expenses attendant to the investment alternative; (d) a
description of the right of the Members on whose behalf assets are invested in a QDIA to
direct the investment of those assets to any other investment alternative under the Plan
without financial penalty; and (e) an explanation of where Members can obtain investment
information concerning the other investment alternatives available under the Plan. In
addition, a notice required for a Member’s Account in connection with Article III, Section
10 shall also contain an explanation of the circumstances under which an elective deferral
will be made for a Member, the percentage of such contribution and the right to elect not
to have such contribution made on his or her behalf (or to elect to defer a different
percentage).

 

38

 

	 	(4)	 	Such information as relating to a Member’s investment in a QDIA as is required under
U.S. Department of Labor Regulation Section 2550.404c-(5)(c)(4).

	(C)	 	A Member may transfer the investment of his Account to another investment alternative available
under the Plan with a frequency consistent with that afforded to a Member who affirmatively elected
to invest his Accounts in the QDIA. Notwithstanding anything herein to the contrary, a Member whose
Accounts are invested in a QDIA pursuant to this Article IV, Section 2 shall be able to transfer
the investment of his Accounts to another investment alternative no less frequently than once
within any three-month period.

	 
	(D)	 	Any fees or restrictions imposed in connection with a Member’s withdrawal of his investment
from a QDIA shall satisfy the requirements of U.S. Department of Labor Regulation Section
2550.404c-(5)(c)(5).

 

39

 

ARTICLE V MEMBERS’ ACCOUNTS, UNITS AND VALUATION

An Account shall be established and maintained for each Member showing his interests in the
Investment Funds or other investment vehicles. The interest in each Investment Fund shall be
represented by Units.

As of each Valuation Date, the value of a Unit in each Investment Fund shall be determined by
dividing (a) the sum of the net assets at market value determined by the Trustee by (b) the total
number of outstanding Units.

The number of additional Units to be credited to a Member’s interest in each Investment Fund, as of
any Valuation Date, shall be determined by dividing (a) that portion of the aggregate contributions
by and on behalf of the Member which was directed to be invested in such Investment Fund and
received by the Board by (b) the Unit value of such Investment Fund.

The value of a Member’s Account may be determined as of any Valuation Date by multiplying the
number of Units to his credit in each Investment Fund by the value of the Investment Fund Unit on
such date and aggregating the results. If, and to the extent, a Member’s Account is invested
pursuant to a self-directed brokerage account, the investments held in that account shall be valued
by the brokerage firm maintaining such account in accordance with such procedures as may be
determined by such brokerage firm.

 

40

 

ARTICLE VI VESTING OF UNITS

Section 1. Vesting

	(A)	 	All amounts credited to a Member’s Account shall immediately and fully vest in him, except
amounts with respect to which the Employer has elected to adopt a vesting schedule as provided in
this Article.

	 
	(B)	 	An Employer may adopt a different vesting schedule for its Members’ (i) Profit Sharing
Accounts, (ii) Matching Amounts (including amounts contributed by the Employer under Article III,
Section 3, Formula 1) and (iii) Basic Amounts and Supplemental Amounts (under Article III, Section
3, Formula 2).

	 
	(C)	 	If an Employer elects to adopt an automatic enrollment program, as provided in Article III,
Section 10(D), Employer contributions shall vest as specified in such Article III, Section 10(D).

	 
	(D)	 	In accordance with Subsection (A) above, one or more of the following schedules may be elected
by the Employer:

Schedule 1: Applicable Employer contributions (and related earnings) shall immediately and
fully vest. If the eligibility requirement(s) selected by the
Employer under Article II, Section 2(B), require(s) that an Employee complete a period of
Employment which is longer than 12 consecutive months, this vesting Schedule 1 shall be
automatically applicable.

Schedule 2: Applicable Employer contributions (and related earnings) shall become
nonforfeitable and fully vested in accordance with the schedule set forth below:

	 	 	 	 	 
	Completed	 	Vested	 
	Years of Employment	 	Percentage	 
	 
	 	 	 	 
	Less than 2
	 	 	0	%
	2 but less than 3
	 	 	20	%
	3 but less than 4
	 	 	40	%
	4 but less than 5
	 	 	60	%
	5 but less than 6
	 	 	80	%
	6 or more
	 	 	100	%

Schedule 3: Applicable Employer Contributions (and related earnings) shall become
nonforfeitable and fully vested in accordance with the schedule set forth below:

	 	 	 	 	 
	Completed	 	Vested	 
	Years of Employment	 	Percentage	 
	 
	 	 	 	 
	Less than 5
	 	 	0	%
	5 or more
	 	 	100	%

 

41

 

Effective with respect to Employer contributions attributable to Employer basic, supplemental or
profit sharing contributions made on or after January 1, 2007, this vesting schedule shall not be
available for such contributions. Employer contributions, attributable to basic, supplemental or
profit-sharing contributions, with respect to an Employer that had elected this Schedule 3 vesting
schedule for such contributions, made on or after January 1, 2007, shall vest in accordance with
Schedule 4.

Schedule 4: Applicable Employer Contributions (and related earnings) shall become
nonforfeitable and fully vested in accordance with the schedule set forth below:

	 	 	 	 	 
	Completed	 	Vested	 
	Years of Employment	 	Percentage	 
	 
	 	 	 	 
	Less than 3
	 	 	0	%
	3 or more
	 	 	100	%

Schedule 5: Applicable Employer Contributions (and related earnings) shall become
nonforfeitable and fully vested in accordance with the schedule set forth below:

	 	 	 	 	 
	Completed	 	Vested	 
	Years of Employment	 	Percentage	 
	 
	 	 	 	 
	Less than 1
	 	 	0	%
	1 but less than 2
	 	 	25	%
	2 but less than 3
	 	 	50	%
	3 but less than 4
	 	 	75	%
	4 or more
	 	 	100	%

Schedule 6: Applicable Employer Contributions (and related earnings) shall become nonforfeitable
and fully vested in accordance with the schedule set forth by the Employer in accordance with
applicable law.

Notwithstanding the vesting schedules above, a Member’s interest in his Account shall become 100%
vested in the event that (i) the Member dies while in service with the Employer and the Plan has
received notification of death, (ii) the Member has been approved for Disability, pursuant to the
provisions of Article VII, Section 4, and the Plan has received notification of Disability, or
(iii) the Member has attained Normal Retirement Age while in service with the Employer.

 

42

 

	(E)	 	Vesting Election

	 	(1)	 	Except as otherwise provided in the next following paragraph, in the event that the
Employer adopts the Plan as a successor plan to another defined contribution plan qualified
under Section 401(a) and 501(a) of the Code, or in the event that the Employer changes or
amends a vesting schedule adopted under this Article, any Member who was covered under such
predecessor plan or the pre-amendment vesting schedule under the Plan, and who has
completed at least 3 Years of Employment with such Employer, may elect to have the nonforfeitable percentage of
the portion of his Account which is subject to such vesting schedule computed under
such predecessor plan’s vesting provisions, or computed without regard to such
change or amendment (a “Vesting Election”). Any Vesting Election shall be made by
notifying the Pentegra DC Plan Office in writing within the election period
hereinafter described. The election period shall begin on the date such amendment
is adopted or the date such change is effective, or the date the Plan which serves
as a successor plan is adopted or effective, as the case may be, and shall end no
earlier than the latest of the following dates: (i) the date which is 60 days after
the day such amendment is adopted; (ii) the date which is 60 days after the day
such amendment or change becomes effective; (iii) the date which is 60 days after
the day the Member is given written notice of such amendment or change by the
Pentegra DC Plan Office; (iv) the date which is 60 days after the day the Plan is
adopted by the Employer or becomes effective; or (v) the date which is 60 days
after the day the Member is given written notice that the Plan has been designated
as a successor plan. Any such election once made shall be irrevocable.

	 	(2)	 	To the extent permitted under the Code and Regulations, an Employer described in the
foregoing paragraph may elect to treat all of its Members who are eligible to make a
Vesting Election as having made such Vesting Election if the Vesting Schedule resulting
from such an election is more favorable than the Vesting Schedule that would apply pursuant
to the Plan amendment. Furthermore, subject to the requirements of the applicable
Regulations, the Employer may elect to treat all its Members, who were employed by the
Employer on or before the effective date of the change or amendment, as subject to the
prior vesting schedule, provided such prior schedule is more favorable.

	(F)	 	An Employer may, at its option, fully vest any Employer contributions (as elected by the
Employer) and related earnings allocated to Members’ Accounts whose employment terminated pursuant
to a sale of a line of business, subsidiary, or a division, except that the Employer’s election
shall be ineffective if it is determined that such election is discriminatory.

	 
	(G)	 	Effective January 1, 2002, a Member’s accrued benefit derived from Employer matching
contributions shall vest as provided by the Employer, except that the vesting schedule elected by
the Employer for Employer matching contributions (and related earnings) credited to the Member’s
Account on or after January 1, 2002 must be nonforfeitable and fully vested in accordance with the
minimum vesting schedules under Section 411(a)(12) of the Code. If the Employer has elected a
vesting schedule for Employer matching contributions which does not satisfy Section 411(a)(12) of
the Code as of January 1, 2002, the Member’s vested interest in his Account attributable to
Employer matching contributions made on or after January 1, 2002, shall not be less than the
percentage determined in accordance with the following schedule:

	 	 	 	 	 
	Completed	 	Vested	 
	Years of Employment	 	Percentage	 
	 
	 	 	 	 
	Less than 2
	 	 	0	%
	2 but less than 3
	 	 	20	%
	3 but less than 4
	 	 	40	%
	4 but less than 5
	 	 	60	%
	5 but less than 6
	 	 	80	%
	6 or more
	 	 	100	%

 

43

 

Notwithstanding the schedule provided above, if, as of December 31, 2001, an Employer has elected a
five (5) year cliff vesting schedule, under Schedule 3 above, for Employer matching contributions,
the vested interest of each Member for Employer matching contributions (and related earnings)
credited to the Member’s Account on or after January 1, 2002, shall not be less than the percentage
determined in accordance with the following schedule:

	 	 	 	 	 
	Completed	 	Vested	 
	Years of Employment	 	Percentage	 
	 
	 	 	 	 
	Less than 3
	 	 	0	%
	3 or more
	 	 	100	%

Section 2. Forfeitures

	(A)	 	If a Member who was partially vested in his Account on the date of his termination of
Employment returns to Employment, his years of Employment prior to the Break in Service shall be
included in determining future vesting and, if he returns before incurring 5 consecutive one-year
Breaks in Service, any amounts forfeited from his Account shall be restored to his Account;
provided, however, that if such a Member has received a distribution pursuant to Article VII,
Section 3 or Article III, Section 8, his non-vested account Units shall not be restored unless he
repays to the Plan the full amount distributed to him before the earlier of (i) 5 years after the
first date on which the Member is subsequently reemployed by the Employer, or (ii) the close of the
first period of 5 consecutive one-year Breaks in Service commencing after the withdrawal. The
amounts restored to the Member’s Account will be valued on the Valuation Date coincident with or
next following the later of (i) the date the Employee is rehired, or (ii) the date a new enrollment
application is received by the Pentegra DC Plan Office and (iii) the date the Employee repays the
full amount previously distributed to him that resulted in the forfeiture. If a Member terminates
Employment without any vested interest in his Account, he shall (i) immediately be deemed to have
received a total distribution of his Account and (ii) thereupon forfeit his entire Account;
provided that if such Member returns to Employment before the number of consecutive one-year Breaks
in Service equals or exceeds the greater of (i) 5, or (ii) the aggregate number of the Member’s
Years of Service prior to such Break in Service, his Account shall be restored in the same manner
as if such Member had been partially vested at the time of his termination of Employment and had
his non-vested Account restored upon a return to employment, and his Years of Employment prior to
incurring the first Break in Service shall be included in any subsequent determination of his
vesting service. Notwithstanding anything herein to
the contrary, in determining whether a Member has a vested interest in his Account derived
from Employer contributions for purposes of Code Sections 410(a)(5)(D) and 411(a)(6)(D),
the Member’s 401(k) Elective Deferrals shall be taken into account and treated as derived
from Employer contributions.

 

44

 

	(B)	 	Forfeited amounts, as described in the preceding Paragraph A, shall be made available to the
Employer through a transfer from the Member’s Account to the Employer Hold Account, upon: (1) if
the Member had a vested interest in his Account at his termination of Employment, the earlier of
(i) the date as of which the Member receives a distribution of his entire vested interest in his
Account or (ii) the date upon which the Member incurs 5 consecutive one-year Breaks in Service or
(2) the date of the Member’s termination of Employment, if the Member then had no vested interest
in his Account. Once so transferred, such amounts shall be used at the option of the Employer to
(i) reduce administrative expenses (in accordance with Article IX, Section 2) for that Contribution
Determination Period, (ii) offset any contribution to be made by such Employer for that
Contribution Determination Period, or (iii) be allocated to all eligible Members at the end of such
Contribution Determination Period in accordance with clause (ii) of the first sentence in Article
III, Section 8(C)(1). The Employer Hold Account, referenced in this Paragraph (B), shall be
maintained to receive, in addition to the forfeitures described above, (i) contributions in excess
of the limitations contained in Section 415 of the Code, as described in Article X, Section
1(C),(ii) amounts, if any, forfeited pursuant to Sections 4 and 7 of Article III, and (iii)
Employer contributions made in advance of the date allocable to Members.

 

45

 

ARTICLE VII WITHDRAWAL PAYMENTS

Section 1. General

	(A)	 	All payments in respect of a Member’s Account shall be made in cash from the Trust Fund and in
accordance with the provisions of this Article or Articles XI or XII or Article III, Section 4. The
amount of payment will be determined in accordance with the value of the Member’s Account on the
Valuation Date coinciding with or next following the date proper notice is filed with the Board,
unless following such Valuation Date a decrease in the value of the Member’s investment in any of
the Investment Funds or other Account investment occurs prior to the date the Member’s Account is
paid in which case that part of the payment which is based on such investments shall equal the
value of such increments determined as of the date of payment which date shall occur as soon as
administratively practicable on or following the Valuation Date such proper notice is filed with
the Board. If Units are redeemed to make a payment of benefits, the redemption date Unit value with
respect to a Member’s investment in any Investment Fund shall equal the value of a Unit in such
Investment Fund, as determined in accordance with the valuation method applicable to Unit
investments in such Fund on the date the Member’s investment is redeemed.

	 
	 	 	Payments provided under this Section will be made in a lump sum as soon as practicable
after such Valuation Date or date of redemption, as may be applicable, subject to any
applicable restriction on redemption imposed on amounts invested in any of the available
Investment Funds.

	(B)	 	At the election of the Employer, the Employer can suspend matching contributions to the Plan on
behalf of a Member, during his uninterrupted period of Service with such Employer, who makes a
withdrawal from his Regular Account for a period of 6 months after such withdrawal, except that (i)
if the withdrawal does not exceed the amount of the Member’s contributions in his Regular Account
plus earnings thereon, Employer contributions on his behalf may resume 3 months after such
withdrawal, and (ii) if the withdrawal does not exceed the amount, if any, of the Member’s
contributions in his Regular Account made prior to January 1, 1987 without earnings, then Employer
contributions on his behalf shall not be affected by such withdrawal.

	 
	(C)	 	Any partial withdrawal from a Member’s Regular Account or Rollover Account shall be in an
amount of at least $1,000 or shall be for the full amount of either (a) the Member’s contributions
made prior to January 1, 1987 without earnings or (b) the Member’s contributions plus earnings
thereon. Any partial withdrawal shall be deemed to come first from the Member’s contributions made
prior to January 1, 1987 without earnings referred to in (ii) above, second proportionately from
the Member contributions made after December 31, 1986 plus earnings thereon, and finally from the
balance of his Regular Account or Rollover Account.

	 
	(D)	 	Any amounts paid under this Article may not be returned to the Plan.

 

46

 

Section 2. Account Withdrawal While Employed

A Member may voluntarily withdraw his Account (other than his 401(k) Account, Safe Harbor CODA
Account, Profit Sharing Account, or Profit Sharing Rollover Amounts, if any) while in
Employment by filing a notice of withdrawal with the Pentegra DC Plan Office; provided, however,
that in the event his Employer has elected to provide annuity options under Article VII, Section
3(B)(2) and a Member has elected an annuity form of payment, no withdrawals may be made from a
married Member’s Account without the written consent of such Member’s Spouse (which consent shall
be subject to the procedures set forth in Article III, Section 6(B)). Notwithstanding, the Employer
may, at its option, provide that a Member be allowed to withdraw all or a portion of his Profit
Sharing Account or Profit Sharing Rollover Amounts, if any. Only one in service withdrawal under
this Section may be made in any Plan Year from each of the Member’s Regular Account and Rollover
Account. This restriction shall not, however, apply to a withdrawal of a Member’s contributions
made prior to January 1, 1987 without earnings, or a withdrawal under this Section in conjunction
with a hardship withdrawal as defined under Article III, Section 4(H).

Notwithstanding the foregoing paragraph, a Member shall not withdraw any Matching, Basic, Profit
Sharing, or Supplemental contributions made by his Employer under Article III, Section 2 or Section
3 and credited to his Regular Account unless (i) the Member has completed 60 months of
participation in the Plan, (ii) the withdrawal occurs at least 24 months after such Matching,
Basic, Profit Sharing, or Supplemental contributions were made by the Employer, (iii) the Member’s
Employer terminates its participation in the Plan or (iv) the Member dies, is disabled, retires,
terminates Employment or attains age 591/2. For purposes of the preceding requirements, if the
Member’s Account includes amounts which have been transferred from a defined contribution plan
established prior to the adoption of the Plan by the Member’s Employer, the period of time during
which amounts were held on behalf of such Member and the periods of participation of such Member
under such defined contribution plan shall be taken into account.

			
	Section 3.	 	Account Withdrawal Upon Termination of Employment or Employer Participation

	(A)	 	Except as provided in Article III, Sections 4 and 8, a Member who terminates Employment with a
participating Employer, or whose Employer terminates its participation in the Plan under Article
XI, may withdraw his Account at any time thereafter up to attainment of age 701/2 or, if elected by
his Employer in accordance with the provisions of Article XI, Section 3, may transfer his Account,
including all outstanding loan balances, to a qualified successor plan maintained by his Employer
following the termination by the Employer of its participation under the Plan; provided, however,
that the Member may not transfer outstanding loan balances unless such qualified successor plan
provides participant loans. For purposes of this Section 3, a qualified successor plan is an
employee benefit plan established or maintained by the
Employer which (i) has received a favorable determination letter from the IRS stating that such
plan satisfies the then current qualification and tax exemption requirements of the Code or with
respect to which an opinion of counsel to the same effect, and in such form as may be satisfactory
to the Pentegra DC Plan Office, (ii) has provided the Pentegra DC Plan Office with written
certification by its appropriate fiduciaries that in the event of a transfer to such successor plan
of the withdrawn assets, the successor plan shall be fully liable for the payment of all
transferred benefits of the Members of such Employer (who consent to the transfer), and that the
Plan shall not be liable for the payment of any part of such benefits, (iii) has provided each
Member’s written consent to the transfer and his release of all claims against the Plan arising out
of his membership therein, (iv) meets such other requirements of the IRS, other appropriate
governmental authority or of the Board, which may apply, and (v) meets such other procedures as may
be established by the Board from time to time.

 

47

 

Any withdrawal under this Section requires that a notice of withdrawal be filed with the
Pentegra DC Plan Office. If a Member does not file such notice, the value of his Account
will be paid to him as soon as practicable after his attainment of age 701/2, but in no event
shall payment commence later than April 1 of the calendar year following the calendar year
in which the Member attains age 70 1/2, unless otherwise provided by Article VII, Section
3(C) or applicable law.

	(B) 	(1)	 	In lieu of any lump sum payment of his total Account, a Member who has terminated his
Employment may elect in his notice of withdrawal to be paid in installments (no less frequently
than annually), provided that a Member shall not be permitted to elect an installment period in
excess of his remaining life expectancy (or the joint life expectancy of the Member and his
designated beneficiary) and if a Member attempts such an election, he shall be deemed to have
elected the installment period with the next lowest multiple within the Member’s remaining life
expectancy, subject to the provisions of Article X, Section 4. The amount of each installment will
be equal to the value of the
Member’s Account, multiplied by a fraction, the numerator of which is one and the
denominator of which is the number of remaining installments including the one then
being paid, so that at the end of the installment period so elected, the total
Account will be liquidated. The value of the Units will be determined in accordance
with the Unit values on the Valuation Date on or next following the Pentegra DC
Plan Office’s receipt of his notice of withdrawal and on each anniversary
thereafter. Payment will be made as soon as practicable after each such Valuation
Date, but in no event shall payment commence later than April 1 of the calendar
year following the calendar year in which the Member attains age 701/2 subject to
Paragraph (C) below. The election of installments hereunder may not be subsequently
changed by the Member, except that upon written notice to the Pentegra DC Plan
Office, the Member may withdraw the balance of the Units in his Account in a lump
sum at any time.

	 	(2)	 	Annuity Option. An Employer may, at its option, elect to provide an annuity option in
addition to the lump sum payment and installment payment options described in Section 1(A)
and Subsection (B)(1) above. In the event an Employer elects to provide an annuity option,
the following provisions shall apply:

	 
	 	 	 	Unmarried Members: Any unmarried Member who has terminated his Employment may
elect, in lieu of any lump sum or installment payment of his total Account(s) under
Section 1(A) or Subsection (B) above, to receive a benefit payable by purchase from
an insurance company of a single premium contract providing for (i) a single life
annuity for the life of the Member or (ii) an annuity for the life of the Member
and, if the Member dies leaving a designated Beneficiary, a 50% survivor annuity
for the life of such designated Beneficiary.

	 
	 	 	 	Married Members: Except as otherwise provided below, (i) any married Member who
has terminated his Employment and who elected an annuity form of payment shall
receive a benefit payable by purchase from an insurance company of a single premium
contract providing for a Qualified Joint and Survivor Annuity, as defined under
Section 6(B)(1) of Article III, unless the Member’s spouse executed a valid waiver
of the Qualified Joint and Survivor Annuity and (ii) the Surviving Spouse of any
married Member who dies prior to the date payment of his benefit commences and who
elected to receive an annuity form of payment shall be entitled to a Preretirement
Survivor Annuity, as defined under Section 6(B)(4) of Article III, unless the
Member’s spouse executed a valid waiver of the Preretirement Survivor Annuity.

 

48

 

	(C)	 	Unless the Member elects otherwise, distribution of benefits will begin no later than the 60th
day after the latest of the close of the Plan Year in which (i) the Member attains age 65; (ii)
occurs the 10th anniversary of the year in which the Member commenced participation in the Plan; or
(iii) the Member terminates Employment with an Employer. Notwithstanding the foregoing, the failure of a Member and Spouse to consent to a
distribution while a benefit is immediately distributable shall be deemed to be an election
to defer commencement of payment of any benefit.

	 
	 	 	Effective as of January 1, 1997, and subject to Section 6 of this Article, payment of a
Member’s Account shall not commence later than April 1 of the calendar year following the
later of (i) the calendar year in which the Member attains age 701/2 or (ii) the calendar
year in which the Member retires; provided however, if the Member is a 5 percent owner (as
described in Section 416(i) of the Code), at any time during the Plan Year ending with or
within the calendar year in which the Employee attains age 701/2, any benefit payable to such
Member shall commence no later than April 1 of the calendar year following the calendar
year in which the Member attains age 701/2. Such benefit shall be paid, in accordance with
the Regulations, over a period not extending beyond the life expectancy of such Member (or the
joint life expectancy of the Member and his designated Beneficiary). For purposes of this
Section, life expectancy of a Member and/or a Member’s spouse may at the election of the
Member be recalculated annually in accordance with the Regulations. The election, once
made, shall be irrevocable. If the Member does not make an election prior to the time that
distributions are required to commence, then life expectancies shall not be recalculated.
If a Member dies after distribution of his interest has begun, the remaining portion of
such interest will continue to be distributed at least as rapidly as under the method of
distribution being used prior to the Member’s death. In addition, to the extent any
payments from the Member’s Account would be made after the Member’s death, such payments
shall be made in accordance with Section 401(a)(9) of the Code and the IRS Regulations
thereunder (including the minimum distribution incidental benefit requirements).

	 
	 	 	Except as provided in Article VII, Section 6, with respect to distributions under the Plan
made on or after November 1, 2001, for calendar years beginning on or after January 1,
2001, the Plan will apply the minimum distribution requirements of section 401(a)(9) of the
Internal Revenue Code in accordance with the regulations under section 401(a)(9) that were
proposed on January 17, 2001 (the 2001 Proposed Regulations), notwithstanding any provision
of the Plan to the contrary. If the total amount of the 2001 required minimum distributions
made to a participant prior to November 1, 2001 are equal to or greater than the amount of
required minimum distributions determined under the 2001 Proposed Regulations, then no
additional distributions are required for such participant for 2001 on or after such date.
If the total amount of required minimum distributions made to a participant prior to November 1, 2001 for 2001 are less than the
amount determined under the 2001 Proposed Regulations, then the amount of required minimum
distributions for 2001 on or after such date will be determined so that the total amount of
required minimum distributions for 2001 is the amount determined under the 2001 proposed
Regulations. This amendment shall continue in effect until the last calendar year beginning
before the effective date of the final regulations under section 401(a)(9) or such other
date as may be published by the Internal Revenue Service.

 

49

 

	(D)	 	Solely to the extent required under applicable law and regulations, and notwithstanding any
provision of the Plan to the contrary that would otherwise limit a Distributee’s election under
this Subsection (D), a Distributee may elect, at the time and in the manner prescribed by the
Board, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible
Retirement Plan specified by the Distributee in a Direct Rollover. Notwithstanding anything herein to the contrary, a Distributee who is a non-spousal
Beneficiary shall only make an Eligible Rollover Distribution to an
Eligible Retirement Pan if such Direct Rollover is accomplished through a direct trustee to
trustee rollover.

For purposes of this Subsection (D), the following terms shall have the following
meanings:

	 	(1)	 	Eligible Rollover Distribution: Solely to the extent required under applicable law and
regulations, an Eligible Rollover Distribution is any distribution of all or any portion of
the balance to the credit of the Distributee, except that an Eligible Rollover Distribution
does not include: any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life expectancy) of the
Distributee or the joint lives (or joint life expectancies) of the Distributee and the
Distributee’s designated beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under Section 401(a)(9) of the
Code; and the portion of any distribution that is not includible in gross income
(determined without regard to the exclusion for net unrealized appreciation with respect to
employer securities).

	 
	 	 	 	A portion of a distribution shall not fail to be an Eligible Rollover Distribution
merely because the portion consists of after-tax employee contributions which are
not includible in gross income. However, such portion may be transferred only to an
individual retirement account or annuity described in section 408(a) or (b) of the
Code, or to a qualified defined contribution plan described in section 401(a) or
403(a) of the Code that agrees to separately account for amounts so transferred,
including separately accounting for the portion of such distribution which is
includible in gross income and the portion of such distribution which is not so
includible.

	 
	 	(2)	 	Eligible Retirement Plan: An Eligible Retirement Plan is an individual retirement
account described in Section 408(a) of the Code, an individual retirement annuity described
in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, or
a qualified trust described in Section 401(a) of the Code, that accepts the Distributee’s
Eligible Rollover Distribution. However, in the case of an Eligible Rollover Distribution to a Surviving Spouse,
an Eligible Retirement Plan is an individual retirement account or individual
retirement annuity.

 

50

 

	 	 	 	An Eligible Rollover Distribution excludes hardship withdrawals as defined in Section
401(k)(2)(B)(i)(IV) of the Code which are attributable to Member’s 401(k) deferrals
under Treasury Regulation Section 1.401(k)-1(d)(2)(ii).

	 
	 	 	 	An Eligible Retirement Plan shall also mean an annuity contract described in section
403(b) of the Code and an eligible plan under section 457(b) of the Code which is
maintained by a state, political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state and which agrees to separately account for
amounts transferred into such plan from this plan.

	 
	 	 	 	Notwithstanding anything herein to the contrary with respect to Distributees who are
non-spousal Beneficiaries, only an individual retirement plan under Sections 408(a) or (b)
of the Code shall constitute an Eligible Retirement Plan.

	 
	 	(3)	 	Distributee: A Distributee includes an employee or former employee and effective January 1,
2002, Distributee shall also include the Member’s Surviving Spouse. In addition, the employee’s or
former employee’s Surviving Spouse and the employee’s or former employee’s spouse or former spouse
who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p)
of the Code, are Distributees with regard to the interest of the spouse or former spouse.

	 
	 	 	 	A Distributee shall also include a non-spousal Beneficiary.

	 
	 	(4)	 	Direct Rollover: A Direct Rollover is a payment by the Plan to the Eligible Retirement
Plan specified by the Distributee.

	 
	 	(5)	 	Roth Elective Deferral Direct Rollover: Notwithstanding anything in this Paragraph (D) to the
contrary, a Direct Rollover of a distribution from a Roth 401(k) Account under the Plan will only
be made to another Roth elective deferral account under an applicable retirement plan described in
Section 402A(e)(1) or to a Roth IRA described in Section 408A of the Code, and only to the extent
the rollover is permitted under the rules of Section 402(c) of the Code.

	 	(a)	 	The Plan will not provide for a Direct Rollover (including an automatic rollover) for
distributions from a Member’s Roth 401(k) Account if the amount of the distributions that
are Eligible Rollover Distributions are reasonably expected to total less than $200 during
a year. In addition, any distribution from a Member’s Roth
401(k) Account is not taken
into account in determining whether distributions from a Member’s other Accounts are
reasonably expected to total less than $200 during a year. However, Eligible Rollover
Distributions from a Member’s Roth 401(k) Account are taken into account in determining
whether the total amount of the Member’s account balances under the Plan exceeds $500 for
purposes of mandatory distributions from the Plan.

 

51

 

	 	(b)	 	The provisions of the Plan that allow a Member to elect a Direct Rollover of
only a portion of an Eligible Rollover Distribution, but only if the amount rolled
over is at least $500, is applied by treating any amount distributed from the
Member’s Roth 401(k) Account as a separate distribution from any amount distributed
from the Member’s other accounts in the Plan, even if the amounts are distributed
at the same time.

	(E)	 	Effective for distributions after December 31, 2001, a Member’s elective deferrals and earnings
attributable to these contributions may be distributed on account of severance from employment.
However, such a distribution shall be subject to the other provisions of the Plan regarding
distributions, other than provisions that require a separation from service before such amounts may
be distributed.

Section 4. Account Withdrawal Upon Member’s Disability

	(A)	 	A Member who is separated from Employment by reason of a disability which is expected to last
in excess of 12 consecutive months and who is either (i) eligible for, or is receiving, disability
insurance benefits under the Federal Social Security Act, (ii) approved for disability under the
provisions of the Pentegra Defined Benefit Plan for Financial Institutions, formerly known as the
Financial Institutions Retirement Fund (a defined benefit pension plan through which federally
insured financial institutions and organizations serving them may cooperate in providing for the
retirement of their employees), or (iii) approved for disability under the provisions of any other
benefit program or policy maintained by his Employer, which policy or program is applied on a
uniform and nondiscriminatory basis to all Employees of such Employer, shall be deemed to be
disabled for all purposes under the Plan.

	 
	(B)	 	The Pentegra DC Plan Office shall determine whether a Member is disabled in accordance with the
terms of Paragraph (A) above; provided, however, approval of Disability is conditioned upon notice
to the Pentegra DC Plan Office of such Member’s Disability by the Employer within 13 months of the
Member’s separation from Employment. The notice of Disability shall include a certification that
the Member meets one or more of the criteria listed in Paragraph (A) above.

	 
	(C)	 	Upon an Employer’s filing a written notice of Disability, a Member may withdraw his total
Account balance under the Plan (including his Rollover Account and/or total Profit Sharing Account
balance, if any) and have such amounts paid to him in accordance with Article VII, Section 3. In
lieu of such lump sum payment, the Member may elect in his notice of withdrawal to (i) defer
receipt of some or all of his vested Account until April 1 of the calendar year following the
calendar year in which the Member attains 701/2, (ii) elect installment payments, as described in
Section 3(B) of this Article and Article III, Section 8(E)(2), or (iii) make periodic withdrawals
not more frequently than once per year pursuant to the provisions of Article VII, Section 1;
provided, however, if a disabled Member becomes reemployed subsequent to withdrawal of some or all
of his Account balance, such Member may not repay to the Plan any such withdrawn amounts.

 

52

 

Section 5. Member’s Death

	(A)	 	Subject to Section 3(B)(2) above, if a married Member dies, his Spouse, as Beneficiary, will
receive a death benefit equal to the value of the Member’s Account determined on the Valuation Date
on or next following the Board’s receipt of notice that such Member died; provided, however, that
if such Member’s Spouse had consented in writing to the designation of a different Beneficiary, the
Member’s Account will be paid to such designated Beneficiary. Such nonspousal designation may be
revoked by the Member without spousal consent at any time prior to the Member’s death. If a Member
is not married at the time of his death, his Account will be paid to his designated Beneficiary.

	 
	(B)	 	Subject to Section 3(B)(2) above, a Member may elect that upon his death, his Beneficiary,
pursuant to Paragraph (A) above, may receive, in lieu of any lump sum payment, payment in 5 annual
installments (10 if the Spouse is the Beneficiary, provided that the Spouse’s remaining life
expectancy is at least 10 years) whereby the value of 1/5th of such Member’s Units (or 1/10th in
the case of a spousal Beneficiary, provided that the Spouse’s remaining life expectancy is at least
10 years) in each Investment Fund will be determined in accordance with the Unit values on the
Valuation Date on or next following the Board’s receipt of notice of the Member’s death and on each
anniversary of such Valuation Date. Payment will be made as soon as practicable after each
Valuation Date until the Member’s Account is exhausted. Such election may be filed at any time with
the Board prior to the Member’s death and may not be changed or revoked after such Member’s
death. If such an election is not in effect at the time of the Member’s death, his
Beneficiary (including any spousal Beneficiary) may elect to make withdrawals in accordance
with this Article, provided that any balance remaining in the deceased Member’s Account be
withdrawn (i) on or before the December 31 of the calendar year which contains the 5th
anniversary, or (ii) in periodic payments over such longer life-expectancy period as shall
be allowed by Section 401(a)(9) of the Code and the IRS regulations issued thereunder.
Notwithstanding the foregoing provisions of this Paragraph (B), payment of a Member’s Account shall commence not later than the December 31
of the calendar year immediately following the calendar year in which the Member died or,
in the event such Beneficiary is the Member’s Surviving Spouse, on or before the December
31 of the calendar year in which such Member would have attained age 701/2, if later (or, in
either case, on any later date prescribed by the IRS Regulations). If, upon the Spouse’s or
Beneficiary’s death, there is still a balance in the Account, the value of the remaining
Units will be paid in a lump sum to such Spouse’s or Beneficiary’s estate. Notwithstanding
anything in this Subsection (B) to the contrary, if a Member dies after distribution of his
or her interest has begun, the remaining portion of such interest will continue to be
distributed at least as rapidly as under the method of distribution being used prior to the
Member’s death. In addition, to the extent any payments from a Member’s Account would be
made after a Member’s death, such payments
shall be made in accordance with Section 401(a)(9) of the Code and the IRS Regulations
thereunder (including the minimum distribution incidental benefit requirements).

 

53

 

Section 6. Minimum Distribution Requirements

	(A)	 	General Rules.

	 	(1)	 	Effective Date. The provisions of this Section 6 will apply for purposes of determining
required minimum distributions commencing as of November 1, 2002 and thereafter.
	 
	 	(2)	 	Precedence. The requirements of this Section 6 will take precedence over any
inconsistent provisions of the Plan.
	 
	 	(3)	 	Requirements of Treasury Regulations Incorporated. All distributions required under
this Plan will be determined in accordance with Treasury Regulations under Section
401(a)(9) of the Code, and the minimum distribution incidental death benefit requirement of
Section 401(a)(9)(G) of the Code.
	 
	 	(4)	 	Limits on Distributions Periods. As of the fist distribution calendar year,
distributions to a Member, if not made in a single sum, may only be made over the following
periods:

	 	(a)	 	the life of the Member,

	 	(b)	 	the joint lives of the Member and a designated Beneficiary,

	 	(c)	 	a period certain not extending beyond the life expectancy of the Member, or

	 	(d)	 	a period certain not extending beyond the joint life and last survivor
expectancy of the Member and a designated Beneficiary.

	(B)	 	Time and Manner of Distribution.

	 	(1)	 	Required Beginning Date. The Member’s entire interest will be distributed, or begin to
be distributed, to the member no later than the Member’s Required Beginning Date (as
defined below).

	 	(2)	 	Death of Participant Before Distributions Begin. If the Member dies before
distributions begin, the Member’s entire interest will be distributed, or begin to be
distributed, no later than as follows:

	 	(a)	 	If the Member’s Surviving Spouse is the Member’s sole designated Beneficiary,
then, except as provided in the adoption agreement, distributions to the Surviving
Spouse will begin by December 31 of the calendar year immediately following the
calendar year in which the Member died, or by December 31 of the calendar year in
which the member would have attained age 70 1/2, if later.

	 	(b)	 	If the Member’s Surviving Spouse is not the Member’s sole designated
Beneficiary, then, except as provided in the adoption agreement, distributions to
the designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Member died.

 

54

 

	 	(c)	 	If there is no designated Beneficiary as of September 30 of the year following
the year of the member’s death, the Member’s entire interest will be distributed by
December 31 of the calendar year containing the fifth anniversary of the Member’s
death.

	 	(d)	 	If the Member’s Surviving Spouse is the Member’s sole designated Beneficiary
and the surviving spouse dies after the Member but before distributions to the
Surviving Spouse begin, this Section 6(B)(2), other than Section 6(B)(2)(a), will
apply as if the Surviving Spouse were the Member.

For purposes of this Section 6(B)(2) and Section 6(D), unless Section 6(B)(2)(d) applies,
distributions are considered to begin on the Member’s Required Beginning Date. If Section
6(B)(2)(d) applies, distributions are considered to begin on the date distributions are required to
begin to the surviving spouse under Section 6(B)(2)(a). If distributions under an annuity purchased
from an insurance company irrevocably commence to the Member before the member’s Required Beginning
Date (or to the Member’s Surviving Spouse before the date distributions are required to begin to
the surviving spouse under Section 6(B)(2)(a)), the date distributions are considered to begin is
the date distributions actually commence.

	 	(3)	 	Forms of Distribution. Unless the Member’s interest is distributed in the form of an
annuity purchased from an insurance company or in a single sum on or before the Required
Beginning Date, as of the first distribution calendar year distributions will be made in
accordance with Sections 6.3 and 6.4 of this Article. If the Member’s interest is distributed in the form of an annuity purchased from an
insurance company, distributions thereunder will be made in accordance with the
requirements of Section 401(a)(9) of the Code and the Treasury Regulations.

	(C)	 	Required Minimum Distributions During Participant’s Lifetime.

	 	(1)	 	Amount of Required Minimum Distribution For Each Distribution Calendar Year. During the
Member’s lifetime, the minimum amount that will be distributed for each distribution
calendar year is the lesser of:

	 	(a)	 	the quotient obtained by dividing the Member’s account balance by the
distribution period in the Uniform Lifetime Table set forth in Section
1.401(a)(9)-9, Q&A-2, of the Treasury Regulations, using the Member’s age as of the
Member’s birthday in the distribution calendar year; or

	 	(b)	 	if the Member’s sole designated Beneficiary for the distribution calendar year
is the Member’s Spouse, the quotient obtained by dividing the Member’s account
balance by the number in the Joint and Last Survivor Table set forth in Section
1.401(a)(9)-9, Q&A-3 of the Treasury Regulations, using the Member’s and Spouse’s
attained ages as of the Member’s and Spouse’s birthdays in the distribution
calendar year.

 

55

 

	 	(2)	 	Lifetime Required Minimum Distributions Continue Through Year of Participant’s Death.
Required minimum distributions will be determined under this section 6(C) of Article VII
beginning with the first distribution calendar year and up to and including the
distribution calendar year that includes the Member’s date of death.

	(D)	 	Required Minimum Distributions After Member’s Death.

	 	(1)	 	Death On or After Date Distributions Begin.

	 	(a)	 	Member Survived by Designated Beneficiary. If the Member dies on or after the
date distributions begin and there is a designated Beneficiary, the minimum amount
that will be distributed for each distribution calendar year after the year of the
Member’s death is the quotient obtained by dividing the Member’s account balance by
the longer of the remaining life expectancy of the Member or the remaining life
expectancy of the Member’s designated Beneficiary, determined as follows:

	 	(i)	 	The Member’s remaining life expectancy is calculated using the age of
the Member in the year of death, reduced by one for each subsequent year.

	 	(ii)	 	If the Member’s Surviving Spouse is the Member’s sole designated
Beneficiary, the remaining life expectancy of the Surviving Spouse is
calculated for each distribution calendar year after the year of the
Member’s death using the Surviving Spouse’s age as of the Spouse’s
birthday in that year. For distribution calendar years after the year of
the Surviving Spouse’s death, the remaining life expectancy of the
Surviving Spouse is calculated using the age of the Surviving Spouse as of
the Spouse’s birthday in the calendar year of the Spouse’s death, reduced
by one for each subsequent calendar year.

	 	(iii)	 	If the Member’s Surviving Spouse is not the Member’s sole designated
Beneficiary, the designated Beneficiary’s remaining life expectancy is
calculated using the age of the Beneficiary in the year following the year
of the Member’s death, reduced by one for each subsequent year.

	 	(b)	 	No Designated Beneficiary. If the Member dies on or after the date
distributions begin and there is no designated Beneficiary as of September 30 of
the year after the year of the Member’s death, the minimum amount that will be
distributed for each distribution calendar year after the year of the Member’s
death is the quotient obtained by dividing the Member’s account balance by the
Member’s remaining life expectancy calculated using the age of the Member in the
year of death, reduced by one for each subsequent year.

 

56

 

	 	(2)	 	Death Before Date Distributions Begin.

	 	(a)	 	Participant Survived by Designated Beneficiary. Except as provided in the
adoption agreement, if the Member dies before the date distributions
begin and there is a designated Beneficiary, the minimum amount that will
be distributed for each distribution calendar year after the year of the
Member’s death is the quotient obtained by dividing the Member’s account
balance by the remaining life expectancy of the Member’s designated
Beneficiary, determined as provided in section 6(D)(1) of Article VII.

	 	(b)	 	No Designated Beneficiary. If the Member dies before the date distributions
begin and there is no designated Beneficiary as of September 30 of the year
following the year of the Member’s death, distribution of the Member’s entire
interest will be completed by December 31 of the calendar year containing the fifth
anniversary of the Member’s death.

	 	(c)	 	Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required
to Begin. If the Member dies before the date distributions begin, the Member’s
surviving spouse is the Member’s sole designated Beneficiary, and the Surviving
Spouse dies before distributions are required to begin to the Surviving Spouse
under section 6(B)(2)(a) of Article VII, this section 6(D)(2) of Article VII will
apply as if the Surviving Spouse were the Member.

	(E)	 	Definitions.

	 	(1)	 	Designated Beneficiary. The individual who is designated by the Member (or the Member’s
Surviving Spouse) as the Beneficiary of the Member’s interest under the Plan and who is the
designated Beneficiary under Section 401(a)(9) of Code and Section 1.401(a)(9)-4 of the
Treasury Regulations.

	 	(2)	 	Distribution Calendar Year. A calendar year for which a minimum distribution is
required. For distributions beginning before the Member’s death, the first distribution
calendar year is the calendar year immediately preceding the calendar year which contains
the Member’s Required Beginning Date. For distributions beginning after the Member’s death,
the first distribution calendar year is the calendar year in which distributions are
required to begin under section 6(B)(2) of Article VII. The required minimum distribution
for the Member’s first distribution calendar year will be made on or before the Member’s
Required Beginning Date. The required minimum distribution for other distribution calendar
years, including the required minimum distribution for the distribution calendar year in
which the Member’s Required Beginning Date occurs, will be made on or before December 31 of
that distribution calendar year.

	 	(3)	 	Life Expectancy. Life expectancy as computed by use of the Single Life Table in Section
1.401(a)(9)-9, Q&A-1 of the Treasury Regulations.

	 	(4)	 	Member’s Account Balance. The account balance as of the last valuation date in the
calendar year immediately preceding the distribution calendar year (valuation calendar
year) increased by the amount of any contributions made and allocated or forfeitures
allocated to the account balance as of dates in the valuation calendar year after the
valuation date and decreased by distributions made in the valuation calendar year after the
valuation date. The account balance for the valuation
calendar year includes any amounts rolled over or transferred to the Plan either in
the valuation calendar year or in the distribution calendar year if distributed or
transferred in the valuation calendar year.

 

57

 

	 	(5)	 	Required Beginning Date. The required beginning date of a Member is April 1 of the
calendar year following the later of the calendar year in which the Member attains age 701/2
or the calendar year in which the participant retires, except that the benefit
distributions to a 5% owner must commence by April 1 of the calendar year following the
calendar year in which the Member attains age 701/2.

	 	(6)	 	5% owner. A Member is treated as a 5% owner for purposes of this Section 5 if such
Member is a 5% owner as defined in Section 416 of the Code at any time during the Plan Year
ending with or within the calendar year in which such owner attains age 70 1/2. Once
distributions have begun to a 5% owner under this Section
5 they must continue to be distributed, even if the Member ceases to be a 5% owner
in a subsequent year.

	(F)	 	TEFRA Section 242(b)(2) Elections.

	 	(1)	 	Notwithstanding the other requirements of this Section 6 of Article VII, distribution
on behalf of any Employee, including a 5% owner who has made a designation under section
242(b)(2) of the Tax Equity and Fiscal Responsibility Act (a “section 242(b)(2) election”)
may be made in accordance with all of the following requirements (regardless of when such
distribution commences):

	 	(a)	 	The distribution by the Plan is one which would not have disqualified such Plan
under section 401(a)(9) of the Code as in effect prior to amendment by the Deficit
Reduction Act of 1984.

	 	(b)	 	The distribution is in accordance with a method of distribution designated by
the Member whose interest in the Plan is being distributed or, if the Member is
deceased, by a Beneficiary of such Member.

	 	(c)	 	Such designation was in writing, was signed by the Member or the Beneficiary,
and was made before January 1, 1984.

	 	(d)	 	The Member had accrued a benefit under the Plan as of December 31, 1983.

	 	(e)	 	The method of distribution designated by the Member or the Beneficiary
specifies the time at which distributions will commence, the period over which
distributions will be made, and in the case of any distribution upon the Member’s
death, the Beneficiaries of the Member listed in order of priority.

	 	(2)	 	A distribution upon death will not be covered by this transitional rule unless the
information in the designation contains the required information described above with
respect to the distributions to be made upon the death of the Member.

 

58

 

	 	(3)	 	For any distribution which commences before January 1, 1984, but continues after
December 31, 1983, the Member, or the Beneficiary, to whom such distribution is being made,
will be presumed to have designated the method of distribution under which the distribution
is being made if the method of distribution was specified in writing and the distribution
satisfies the requirements in Sections 6(F)(1)(a) and 6(F)(1)(e) of Article VII.

	 	(4)	 	If a designation is revoked, any subsequent distribution must satisfy the requirements
of Section 401(a)(9) of the Code and the Treasury Regulations thereunder. If a designation
is revoked subsequent to the date distributions are required to begin, the Plan must
distribute by the end of the calendar year following the calendar year in which the
revocation occurs the total amount not yet distributed which would have been required to
have been distributed to satisfy Section 401(a)(9) of the Code and the Treasury Regulations
thereunder, but for the section 242(b)(2) election. For calendar years beginning after
December 31, 1988, such distributions must meet the minimum distribution incidental benefit
requirements. Any changes in the designation will be considered to be a revocation of the
designation. However, the mere substitution or addition of another Beneficiary (one not
named in the designation) under the designation will not be considered to be a revocation
of the designation, so long as such substitution or addition does not alter the period over
which distributions are to be made under the designation, directly or indirectly (for
example, by altering the relevant measuring life).

	 	(5)	 	In the case in which an amount is transferred or rolled over from one plan to another
plan, the rules in Treasury Regulations Section 1.401(a)(9)-8, Q&A-14 and Q&A-15, shall
apply.

	(G)	 	Transition Rules.

	 	(1)	 	Required minimum distributions before November 1, 2002 were made pursuant to Article
VII, Sections 3(C) and 6(G)(2) through 6(G)(3) below, as applicable.

	 	(2)	 	2000 and Before. Required minimum distributions for calendar years after 1984 and
before 2001 were made in accordance with Section 401(a)(9) and the proposed Treasury
Regulations thereunder published in the Federal Register on July 27, 1987 (the “1987
Proposed Regulations”).

	 	(3)	 	2001 and 2002. Required minimum distributions for calendar years 2001 and 2002 (made on
or after November 1, 2001 and on or before October 31, 2002) were made in accordance with
Section 401(a)(9) and the Treasury Regulations thereunder that were proposed on January 17,
2001.

 

59

 

ARTICLE VIII LOAN PROGRAM

Section 1. General

An Employer may, at its option, make available this loan program for any Member (and, if applicable
under Section 8 of this Article, any Beneficiary), subject to applicable law. In the event amounts
are transferred to the Plan from a retirement plan subject to Section 401(a)(11) of the Code, no
loans may be made from a married Member’s Account without the written consent of such Member’s
Spouse which shall be obtained no earlier than the beginning of the 90-day period that ends on the
date on which the loan is to be secured by any portion of such Member’s Account. The consent must
be in writing, must acknowledge the effect of the loan, and must be notarized. Such consent shall
thereafter be binding with respect to the consenting Spouse or any subsequent Spouse with respect
to that loan. In the event an Employer elects the loan program under this Article VIII, loans shall
be available from the Rollover Accounts of any Employees of the Employer who have not yet become
Members.

Section 2. Loan Application

	(A)	 	Subject to the restrictions described in Paragraph (B) of this Section, a Member in Employment
may borrow from his Account by filing an application with the Pentegra DC
Plan Office. Such application (hereinafter referred to as a “completed application”) shall
(i) specify the terms pursuant to which the loan is requested to be made and (ii) provide
such information and documentation as the Board shall require, including a note, duly
executed by the Member, granting a security interest of an amount not greater than 50% of
his vested Account, to secure the loan. With respect to such Member, the completed
application shall authorize the repayment of the loan through payroll deductions. Such loan
will become effective upon the Valuation Date coinciding with or next following the date on
which his completed application and other required documents were received by the Pentegra
DC Plan Office, subject to the same conditions with respect to the amount to be transferred
under this Section which are specified in the Plan procedures for determining the amount of
payments made under Article VII, Section 1(A) of the Plan.

	(B)	 	The Board shall establish standards in accordance with the Code and ERISA which shall be
uniformly applicable to all Members eligible to borrow from their interests in the Trust Fund
similarly situated and shall govern the approval or disapproval of completed applications. The
terms for each loan shall be set solely in accordance with such standards.

	(C)	 	In accordance with the Board’s established standards, each completed application shall be
reviewed and approved or disapproved as soon as practicable after the receipt thereof, and the
applying Member shall be promptly notified of such approval or disapproval.
Notwithstanding the foregoing, the review of a completed application, or payment of the
proceeds of an approved loan, may be deferred if the proceeds of the loan would otherwise
be paid during the period commencing on December 1 and ending on the following January 31.

	(D)	 	Subject to Paragraph (C) of this Section and Paragraph (C) of Section 6 of this Article VIII,
upon approval of a completed application, payment of the loan to the Member shall be made from the
Investment Fund(s) in the same proportion that the designated portion
of the Member’s Account is invested at the time of the loan, and the relevant portion of
the Member’s interest in such Investment Fund(s) shall be cancelled and shall be
transferred in cash to the Member. The Pentegra DC Plan Office shall maintain sufficient
records regarding such amounts to permit an accurate crediting of repayments of the loan.

 

60

 

Section 3. Permitted Loan Amount

The amount of each loan may not be less than $1,000 nor more than the maximum amount as described
below. The maximum amount available for loan under the Plan (when added to the outstanding balance
of all other loans from the Plan to the borrowing Member) shall not exceed the lesser of: (a)
$50,000 reduced by the excess (if any) of (i) the highest outstanding loan balance attributable to
the Account of the Member requesting the loan from the Plan during the one year period ending on
the day preceding the date of the loan, over (ii) the outstanding balance of all other loans from
the Plan to the Member on the date of the loan, or (b) 50 percent of the value of the Member’s
vested Account based on the latest available information on the date on which the Pentegra DC Plan
Office receives the completed application for the loan and other required documents. In determining
the maximum amount that a Member may borrow, all vested assets of his Account, will be taken into
consideration, provided that, where the Employer has not elected to make a Member’s entire Account
available for loans or where a Member’s Account contains investments in a brokerage account which
shall not be available for loans, in no event shall the amount of the loan exceed the value of such
vested portion of the Member’s Account from which loans are permissible.

Section 4. Source of Funds for Loan

The amount of the loan will be deducted from the Member’s Account in the Investment Funds in
accordance with Section 2(D) of this Article and the Plan procedures for determining the amount of
payments made under Article VII, Section 1(A). An Employer may elect to not make loans available to
Members from a Member’s Regular Account, 401(k) Account, Safe Harbor CODA Account, Profit Sharing
Account (including Profit Sharing Rollover amounts), and/or Rollover Account from which the loan
shall be allocable based upon the Member’s designation. Any portion of a Member’s Account which is
invested in a brokerage account shall not be available for loans. The account from which the Member
first chooses to borrow must be exhausted before the Member can borrow any amount from the other
account. A loan will first be allocable (to the extent the Employer permits Members to take loans
from one or more of the Members’ Accounts) out of the amounts which are the least accessible to the
Member unless elected otherwise.

Section 5. Conditions of Loan

	(A)	 	Each loan to a Member under the Plan shall be repaid in level amounts through regular payroll
deductions after the effective date of the loan, and continuing thereafter with each payroll.
Notwithstanding the foregoing sentence, at the election of the Employer, a loan may be repaid in
level monthly payments or on a payroll period basis, provided that the Employer applies such
election uniformly to all Members. Except as otherwise required by the Code and the IRS
Regulations, each loan shall have a repayment period of not less than 12 months and not in excess
of 60 months except that, if the purpose of the loan is the purchase of a primary residence, not
more than 180 months. After the first 3 monthly payments of the loan have been satisfied, the Member may pay the outstanding loan balance
(including accrued interest from the due date).

 

61

 

	(B)	 	The rate of interest for the term of the loan will be established as of the loan date, and will
be the Barron’s Prime Rate (base rate) plus 1% as published on the last Saturday of the preceding
month, or such other rate as may be required by applicable law and determined by reference to the
prevailing interest rate charged by commercial lenders under similar circumstances. The applicable
rate would then be in effect through the last business day of the month.

	(C)	 	Repayment of all loans under the Plan shall be secured by 50% of the Member’s vested interest
in his Account determined as of the origination of such loan.

	(D)	 	Only one loan may be made to a Member in the Plan Year from his Account (excluding the Member’s
Rollover Account), except that a second loan may be made from the Member’s Rollover Account, if
any, in such Plan Year, unless the Employer does not permit loans to be made from the Member’s
Rollover Account.

	(E)	 	There shall be a reasonable origination fee and/or an annual administration fee assessed to the
Member’s Account for each loan made to a Member or Beneficiary.

Section 6. Crediting of Repayment.

	(A)	 	Upon lending any amount to a Member, the Board shall establish and maintain a loan receivable
account with respect to, and for the term of, the loan. The allocations described in this Section
shall be made from the loan receivable account.

	(B)	 	Upon receipt of each monthly or payroll period installment payment and the crediting thereof to
the Member’s loan receivable account, there shall be allocated to the Member’s Account in the
Investment Funds in accordance with his most recent investment instruction the principal portion of
the installment payment plus that portion of the interest equal to the rate determined in Section
5(B) of this Article.

	(C)	 	The unpaid balance owed by a Member on a loan under the Plan shall not reduce the amount
credited to his Account. However, from the time of payment of the proceeds of the loan to the
Member, such Account shall be deemed invested, to the extent of such unpaid balance, in such loan
until the complete repayment thereof or distribution from such Account. Any loan repayment shall
first be deemed allocable to a Member’s Regular Account contributions, then earnings on such Member’s Regular Account contributions
and finally Employer contributions plus earnings. Notwithstanding the preceding sentence,
any loan repayment of amounts derived from a Member’s 401(k) Account, Regular Account and
Rollover Account shall be applied to such accounts on a proportionate basis that reflects
the allocable portion of those Member accounts deemed invested in the loan.

 

62

 

Section 7. Cessation of Payments on Loan

	(A)	 	If a Member, while employed, fails to make a monthly or payroll period installment payment when
due, as specified in the completed application, subject to applicable law, he will be deemed to
have received a distribution of the outstanding balance of the loan.
If such default occurs after the first 3 monthly payments of the loan have been satisfied,
the Member may pay the outstanding balance, including accrued interest from the due date,
by the last day of the calendar quarter following the calendar quarter which contains the
due date of the last monthly installment payment, in which case no such distribution will
be deemed to have occurred. Subject to applicable law, notwithstanding the foregoing, a
Member that borrows amounts from his 401(k) Account may not cease to make monthly
installment payments while employed and receiving a Salary from the Employer.

	(B)	 	Except as otherwise provided under Section 8 below, upon a Member’s termination of Employment,
death or Disability, or the termination of his Employer’s participation in the Plan, no further
monthly installment payments may be made. Unless the outstanding balance, including accrued
interest from the due date, is paid by the last day of the calendar quarter following the calendar
quarter of the date of such occurrence, the Member will be deemed to have received a distribution
of the outstanding balance of the loan including accrued interest from the due date. This
Subsection (B) shall also apply to a Member (i) whose Employer terminates its participation in the
Plan without establishing or maintaining a qualified successor plan (as defined in Article VII,
Section 3) to which the Member’s Account could be transferred, (ii) who elects not to transfer the
total accumulated balance of his Account to such qualified successor plan, as provided under
Article VII, Section 3(A), where the Employer has satisfied all conditions and requirements to
permit such transfer, or (iii) who fails to transfer outstanding loan balances as provided under
Article VII, Section 3(A)(2).

Section 8. Loans to Former Members and Beneficiaries

Notwithstanding any other provisions of this Article VIII, a Member who terminates Employment
for any reason or whose Employer terminates participation in the Plan (a
“Terminated Member”) shall be permitted to continue making scheduled repayments with respect to any
loan balance outstanding at the time he becomes a Terminated Member and any Terminated Member (or
Beneficiary) shall be permitted to borrow from his Account if his Employer (or the Employer of the
Member with respect to whom he is a Beneficiary) permitted loans under the Plan at the time he
became a Terminated Member (or became entitled to benefits as a Beneficiary). If any individual who
continues to make repayments or who borrows from his Account pursuant to this Section 8 fails to
make a monthly installment payment by the end of the calendar quarter following the calendar
quarter of the scheduled payment date, he will be deemed to have received a distribution of the
outstanding balance of the loan.

 

63

 

ARTICLE IX ADMINISTRATION OF PLAN

Section 1. Board of Directors

	(A)	 	The general administration of the Plan and the general responsibility for carrying out the
provisions of the Plan shall be placed in a Board of Directors who must be Members of the Plan. The
President of the Plan shall be the chief administrative officer of the Plan, a member ex officio of
the Board and, for purposes of ERISA, the “plan administrator.” The Board shall constitute the
“named fiduciary” for purposes of ERISA. The Board may adopt, and amend from time to time, by-laws
not inconsistent with the Trust and the Plan and shall have such duties and exercise such powers as
are provided in the Plan, Trust Agreement and by-laws. The number of Directors, their method of
election and their terms of office shall be governed by such by-laws. The Board shall hold an
annual meeting each year and may hold additional meetings from time to time.

	(B)	 	The Board members shall serve without compensation, but shall be reimbursed for any reasonable
expenses incurred in their capacities as Board members. Neither the Plan
Administrator, nor any Board member, officer or employee of the Plan shall be personally
liable by virtue of any contract or other instrument executed by him or on his behalf in
such capacity nor for any mistake of judgment made in good faith. Each Employer, by its
participation in the Plan, agrees that each member of the Board and officer and employee of
the Plan shall be indemnified by the Employer for any liability, in excess of that which is
covered by insurance, arising out of any act or omission to act in connection with the
Plan, except for fraud or willful misconduct. The obligation to pay any such expense shall
be allocated among the Employers by the Board in such manner as the Board deems equitable.

	(C)	 	The Board shall elect from its membership a chairman and a vice chairman of the Board, and
shall elect such other officers of the Plan as the Board deems desirable. The Board may appoint
committees and shall arrange for such legal, accounting, investment advisory or management,
administrative and other services as it deems appropriate to carry out the Plan, and may act in
reliance upon the advice and actions of the persons or firms providing such services. The Board may
delegate to any committee, officer, employee or agent the authority to perform any act pertaining
to the Plan or the administration thereof. No Employer shall under any circumstances or for any
purpose be deemed an agent of the Board. The Board shall cause to be maintained proper accounts and
accounting procedures and shall submit an Annual Report on the operations of the Plan to each
Employer for the information of its members. The Board may adopt by-laws governing the conduct of
its affairs and may amend such by-laws from time to time.

	(D)	 	The Board shall have the exclusive right to interpret the Plan and to determine any question
arising under or in connection with the administration of the Plan. Its decision or action in
respect thereof shall be conclusive and binding upon all persons having an interest in the Trust or
under the Plan. The Board shall have no duty to see that contributions received by the Trustee
under the Plan comply with the provisions of the Plan, nor any duty to enforce payment of any
contributions under the Plan.

 

64

 

	(E) 	(1)	 	All claims for benefits under the Plan shall be submitted in writing to, and within a
reasonable period of time decided by, the President of the Plan. If the claim is wholly or
partially denied, written notice of the denial shall be furnished within 90 days after receipt of
the claim; provided that, if special circumstances require an extension of time for processing the
claim, an additional 90 days from the end of the initial period shall be allowed for processing the
claim, in which event the claimant shall be furnished with a written notice of the extension prior
to the termination of the initial 90-day period indicating the special circumstances requiring an
extension. The written notice denying the claim shall set forth the reasons for the denial,
including specific reference to pertinent provisions of the Plan on which the denial is based, a
description of any additional information necessary to perfect the claim and information regarding
review of the claim and its denial.

	 	(2)	 	A claimant may review all pertinent documents and may request a review by the Board of
a decision denying the claim. Such a request shall be made in writing and filed with the
Board within 60 days after delivery to the claimant of written notice of the decision. Such
written request for review shall contain all additional information which the claimant
wishes the Board to consider. The Board may hold a hearing or conduct an independent
investigation, and the decision on review shall be made as soon as possible after the
Board’s receipt of the request for review. Written notice of the decision on review shall
be furnished to the claimant within 60 days after receipt by the Board of a request for
review, unless special circumstances require an extension of time for processing, in which
event an additional 60 days shall be allowed for review and the claimant shall be so
notified in writing. Written notice of the decision on review shall include specific
reasons for the decision. For all purposes under the Plan, such decision on claims
(where no review is requested) and decision on review (where review is requested)
shall be final, binding and conclusive on all interested persons as to
participation and benefits eligibility, the amount of benefits and as to any other
matter of fact or interpretation relating to the Plan.

 

65

 

Section 2. Trust Agreement

	(A)	 	The Board shall enter into one or more Trust Agreements with a Trustee or Trustees selected by
the Board. The Trust established under any such agreement shall be a part of the Plan and shall
provide that all funds received by the Trustee as contributions under the Plan and the income
therefrom (other than such part as is necessary to pay the expenses and charges referred to in
Paragraph (B) of this Section) shall be held in the Trust Fund for the exclusive benefit of the
Members or their Beneficiaries, and managed, invested and reinvested and distributed by the Trustee
in accordance with the Plan. Sums received for investment may be invested (i) wholly or partly
through the medium of any common, collective or commingled trust fund maintained by a bank or other
financial institution and which is qualified under Sections 401(a) and 501(a) of the Code and
constitutes a part of the Plan, or (ii) wholly or partly through the medium of a group annuity or
other type of contract issued by an insurance company and constituting a part of the Plan, and
utilizing, under any such contract, general, commingled or individual investment accounts. Subject
to the provisions of Article XII, the Board may from time to time and without the consent of any
Employer, Member or Beneficiary (a) amend the
Trust Agreement or any such insurance contract in such manner as the Board may deem
necessary or desirable to carry out the Plan, (b) remove the Trustee and designate a
successor Trustee upon such removal or upon the resignation of the Trustee, and (c) provide
for an alternate funding agency under the Plan. The Trustee shall make payments under the
Plan only to the extent, in the amounts, in the manner, at the time, and to the persons as
shall from time to time be set forth and designated in written authorizations from the
Board.

	(B)	 	The Trustee shall from time to time charge against and pay out of the Trust Fund taxes of any
and all kinds whatsoever which are levied or assessed upon or become payable in respect of such
Fund, the income or any property forming a part thereof, or any security transaction pertaining
thereto. To the extent not paid by the Employers, the Trustee shall also charge against and pay out
of the Trust Fund other expenses incurred by the Trustee in the performance of its duties under the
Trust, the expenses incurred by the Board in the performance of its duties under the Plan
(including reasonable compensation for agents and cost of services rendered in respect of the
Plan), such compensation of the Trustee as may be agreed upon from time to time between the Board
and the Trustee, and all other proper charges and disbursements of the Trustee or the Board.

 

66

 

ARTICLE X MISCELLANEOUS PROVISIONS

Section 1. General Limitations

	(A)	 	In order that the Plan be maintained as a qualified plan and trust under the Code,
contributions in respect of a Member shall be subject to the limitations set forth in this Section,
notwithstanding any other provision of the Plan. The contributions in respect of a Member to which
this Section is applicable are his own contributions and his Employer’s contributions.
	 
	 	 	For purposes of this Section 1, a Member’s contributions shall be determined without regard
to any rollover contributions (as defined by Section 401(a)(5) of the Code). For purposes
of this Section 1, a Member’s compensation shall be a Member’s Form W-2 compensation
(within the meaning of IRS Regulation Section 1.415(c)-2(d)(4)).

	(B)	 	Annual additions to a Member’s Account (including his 401(k) Account, Regular Accounts and his
Profit Sharing Account) and to any other defined contribution plan maintained by the Member’s
Employer in respect of any Plan Year may not exceed the limitations set forth in Section 415 of the
Code, which are incorporated by reference. For these purposes, “annual additions” shall have the
meaning set forth in Section 415(c)(2) of the Code, as modified elsewhere in the Code and the
Regulations, and the limitation year shall mean the Plan Year unless any other twelve consecutive
month period is designated pursuant to a written resolution adopted by the Employer and approved by
the Board.

	 	 	Effective for limitation years beginning after December 31, 2001, except to the extent
permitted under Article III, Section 9 of the Plan and Section 414(v) of the Code, if
applicable, the annual additions that may be contributed or allocated to a Member’s Account
under the Plan for any limitation year shall not exceed the lesser of:

	 	(i)	 	$40,000, as adjusted for increases in the cost-of-living under section 415(d) of the
Code, or

	 	(ii)	 	100 percent of the Member’s compensation, within the meaning of section 415(c)(3)
of the Code, for the limitation year.

	(C)	 	In the event that, due to forfeitures, reasonable error in estimating a Member’s compensation,
or other limited facts and circumstances, total contributions to a Member’s Account are found to
exceed the limitations of this Section, the Board shall cause contributions made under Article III,
Section 1 in excess of such limitations to be refunded to the affected Member, with earnings
thereon, and shall take appropriate steps to reduce, if necessary, the Employer contributions made
with respect to those returned contributions. Such refunds shall not be deemed to be withdrawals,
loans, or distributions from the Plan. If a Member’s annual contributions exceed the limitations
contained in Paragraph (B) of this Section after the Member’s Article III, Section 1 contributions,
with earnings thereon, if any, have been refunded to such Member, the Profit Sharing contribution
to be allocated to any Member in respect of any Contribution Determination Period (including
allocations as provided in this Paragraph) shall instead be allocated to or for the benefit of all
other Members who are

 

67

 

	 	 	Employees in Employment as of the last day of the Contribution Determination
Period as determined under Article III, Section 8(c) and allocated in the same proportion that each such
Member’s Salary for such Contribution Determination Period bears to the total Salary for
such Contribution Determination Period of all such Members or, the Board may, at the
election of the Employer, utilize such excess to reduce the contributions which would
otherwise be made for the succeeding Contribution Determination Period by the Employer. If,
with respect to any Contribution Determination Period, there is an excess Profit Sharing
contribution, and such excess cannot be fully allocated in accordance with the preceding
sentence because of the limitations prescribed in Paragraph (B) of this Section, the amount
of such excess which cannot be so allocated shall be allocated to the Employer Hold Account
and made available to the Employer pursuant to the terms of Article VI, Section 2(B)(2)
except that any such excess contribution may not be applied to reduce administrative
expenses (in accordance with Article IX, Section 2). The Board, in accordance with
Paragraph (D) of this Section, shall take whatever additional action may be necessary to
assure that contributions to Members’ Accounts meet the requirements of this Section.

	(D)	 	In addition to the steps set forth in Paragraph (C) above, the Board may from time to time
adjust or modify the maximum limitations applicable to contributions made in respect of a Member
under this Section 1 as may be required or permitted by the Code or ERISA prior to or following the
date that allocation of any such contributions commence and shall take appropriate action to real
locate the annual contributions which would otherwise have been made but for the application of
this Section.

	(E)	 	Membership in the Plan shall not give any Employee the right to be retained in the Employment
of his Employer and shall not affect the right of the Employer to discharge any Employee.

	(F)	 	Each Member, Spouse and Beneficiary assumes all risk in connection with any decrease in the
market value of the assets of the Trust Fund. Neither the Board nor the Trustee guarantees that
upon withdrawal the value of a Member’s Account, his Profit Sharing Account, and/or his Rollover
Account will be equal to or greater than the amount of the Member’s own deferrals or contributions,
or those credited on his behalf in which the Member has a vested interest, under the Plan.

	(G)	 	The establishment, maintenance or crediting of a Member’s Account pursuant to the Plan shall
not vest in such Member any right, title or interest in the Trust Fund except at the times and upon
the terms and conditions and to the extent expressly set forth in the Plan and the Trust Agreement.

	(H)	 	The Trust Fund shall be the sole source of payments under the Plan and the Employer and the
Board assume no liability or responsibility for such payments, and each Member, Spouse or
Beneficiary who shall claim the right to any payment under the Plan shall be entitled to look only
to the Trust Fund for such payment. All contributions to the Trust
Fund shall be deemed to have been made in the State of New York.

Section 2. Top Heavy Provisions

In respect of any Employer, the Plan will be considered a Top Heavy Plan for any Plan Year if it is
determined to be a Top Heavy Plan as of the last day of the preceding Plan Year.

 

68

 

The provisions of this Section 2 shall apply and supersede all other provisions in the Plan during
each Plan Year with respect to which the Plan, with regard to such Employer, is determined to be a
Top Heavy Plan.

	(A)	 	For purposes of this Section 2, the following terms shall have the meanings set forth below:

	 	(1)	 	“Affiliate” shall mean any entity affiliated with any Employer within the meaning of
Section 414(b), 414(c) or 414(m) of the Code, or pursuant to the IRS
Regulations under Section 414(o) of the Code, except that for purposes of applying
the provisions hereof with respect to the limitation on contributions, Section
415(h) of the Code shall apply.

	 	(2)	 	“Aggregation Group” shall mean the group composed of each qualified retirement plan of
the Employer or an Affiliate in which a Key Employee is a member and each other qualified
retirement plan of the Employer or an Affiliate which enables a plan of the Employer or an
Affiliate in which a Key Employee is a member to satisfy Sections 401(a)(4) or 410 of the
Code. In addition, the Board may choose to treat any other qualified retirement plan as a
member of the Aggregation Group if such Aggregation Group will continue to satisfy Sections
401(a)(4) and 410 of the Code with such plan being taken into account.

	 	(3)	 	“Key Employee” shall mean a “Key Employee” as defined in Sections 416(i)(1) and (5) of
the Code and the IRS Regulations. For purposes of Section 416 of the
Code and for purposes of determining who is a Key Employee, an Employer which is
not a corporation may have “officers” only for Plan Years beginning after December
31, 1985. For purposes of determining who is a Key Employee pursuant to this
Subparagraph (3), compensation shall have the meaning prescribed in Section 414(s)
of the Code or, to the extent required by the Code or the IRS Regulations, Section
1.415-2(d) of the IRS Regulations.

	 	(4)	 	“Non Key Employee” shall mean a “Non Key Employee” as defined in Section 416(i)(2) of
the Code and the IRS Regulations thereunder.

	 	(5)	 	“Top Heavy Plan” shall mean a “Top Heavy Plan” as defined in Section 416(g) of the Code
and the IRS Regulations thereunder.

	 	(6)	 	“Determination Date” shall mean the last day of the preceding Plan Year or, in the case
of the first Plan Year, the last day of such Plan Year.

	 	(7)	 	“Top Heavy Ratio” is a fraction, the numerator of which is the sum of the account
balances of all Key Employees as of the applicable Determination Date (including any part
of any account balance distributed in the five-year period ending on the Determination
Date), and the denominator of which is the sum of all account balances (including any part
of any account balance distributed in the five-year period ending on the Determination
Date), both computed in accordance with Section 416 of the Code and the IRS Regulations
thereunder.

 

69

 

	(B)	 	Subject to the provisions of Paragraph (D) below, for each Plan Year that the Plan is a Top
Heavy Plan, the Employer’s contribution allocable to each Employee (other than a
Key Employee) who has satisfied the eligibility requirement(s) of Article II, Section 2,
and who is in service at the end of the Plan Year shall not be less than the lesser of (i)
3% of such eligible Employee’s compensation (as defined in Section 414(s) of the Code or,
to the extent required by the Code or the IRS Regulations, Section 1.415-2(d) of the
Regulations), provided that for any Plan Year beginning on or after January 1, 1994 no more
than $150,000 (adjusted for cost of living to the extent permitted by the Code and the IRS
Regulations) shall be taken into account), or (ii) the percentage at which Employer
contributions for such Plan Year are made and allocated on behalf of the Key Employee for
whom such percentage is the highest. For the purpose of determining the appropriate
percentage under clause (ii), all defined contribution plans required to be included in an
Aggregation Group shall be treated as one plan. Clause (ii) shall not apply if the Plan is
required to be included in an Aggregation Group which enables a defined benefit plan also
required to be included in said Aggregation Group to satisfy Sections 401(a)(4) or 410 of
the Code. Contributions attributable to salary reduction that are made to a Key Employee’s
401(k) Account and Roth 401(k) Account shall be taken into account in determining the
minimum required contribution under this Subsection (B).

	(C)	 	If the Plan is a Top Heavy Plan for any Plan Year, and (i) the Employer has elected a vesting
schedule under Article VI for an employer contribution type which does not satisfy the minimum Top
Heavy vesting requirements or (ii) if the Employer has not elected a vesting schedule for an
employer contribution type, the vested interest of each Member, who is credited with at least one
Hour of Employment on or after the Plan becomes a Top Heavy Plan, for each employer contribution
type in his Account described in clause (i) or (ii) above, shall not be less than the percentage
determined in accordance with the following schedule:

	 	 	 	 	 
	Completed	 	Vested	 
	Years of Employment	 	Percentage	 
	 
	 	 	 	 
	Less than 2
	 	 	0	%
	2 but less than 3
	 	 	20	%
	3 but less than 4
	 	 	40	%
	4 but less than 5
	 	 	60	%
	5 but less than 6
	 	 	80	%
	6 or more
	 	 	100	%

	 	 	Notwithstanding the schedule provided above, if the Plan is a Top Heavy Plan for any Plan Year and
if an Employer has elected a cliff vesting schedule for an employer contribution type described in
clause (i) or (ii) above, the vested interest of each Member, who is credited with at least one
Hour of Employment on or after the Plan becomes a Top Heavy Plan, for such employer contribution
type in his Account, shall not be less than the percentage determined in accordance with the
following schedule:

	 	 	 	 	 
	Completed	 	Vested	 
	Years of Employment	 	Percentage	 
	 
	 	 	 	 
	Less than 3
	 	 	0	%
	3 or more
	 	 	100	%

 

70

 

	(D)	 	The Board shall, to the maximum extent permitted by the Code and in accordance with the IRS
Regulations, apply the provisions of this Section 2 by taking into account the benefits payable and
the contributions made under the Pentegra Defined Benefit Plan for Financial Institutions or any
other qualified plan maintained by an Employer, to prevent inappropriate omissions or required
duplication of minimum contributions.

	(E)	 	Effective for Plan Years beginning after December 31, 2001, for purposes of determining whether
the Plan is a top-heavy plan under Section 416(g) of the Code, and whether the Plan satisfies the
minimum benefits requirements of Section 416(c) of the Code for such years, the following
provisions shall apply:

	 	(1)	 	“Key Employee” shall mean any Employee or former Employee (including any deceased
employee) who at any time during the Plan Year that includes the determination date was an
officer of the Employer having annual compensation greater than $130,000 (as adjusted under
section 416(i)(1) of the Code for plan years beginning after December 31, 2002), a
5-percent owner of the employer, or a 1-percent owner of the employer having annual
compensation of more than $150,000. For this purpose, annual compensation means
compensation within the meaning of section 415(c)(3) of the Code. The determination of who
is a Key Employee will be made in accordance with section 416(i)(1) of the Code and the
applicable regulations and other guidance of general applicability issued
thereunder.

	 	(2)	 	The present value of accrued benefits and the amounts of account balances of an
Employee as of the determination date shall be increased by the distributions made with
respect to the Employee under the Plan and any plan aggregated with the Plan under section
416(g)(2) of the Code during the 1-year period ending on the determination date. The
preceding sentence shall also apply to distributions under a terminated plan which, had it
not been terminated, would have been aggregated with the Plan under section 416(g)(2)(A)(i)
of the Code. In the case of a distribution made for a reason other than separation from
service, death, or disability, this provision shall be applied by substituting “5-year
period” for “1-year period.”
	 
	 	 	 	The accrued benefits accounts of any individual who has not performed services for
the employer during the 1-year period ending on the determination date shall not be
taken into account.

	 	(3)	 	Employer matching contributions shall be taken into account for purposes of satisfying
the minimum contribution requirements of section 416(c)(2) of the Code and the Plan. The
preceding sentence shall apply with respect to matching contributions under the Plan, or
any other plan maintained by the Employer, to the maximum extent permitted by the Code and
in accordance with the IRS Regulations. Employer matching contributions that are used to satisfy the minimum
contribution requirements shall be treated as matching contributions for
purposes of the actual contribution percentage test and other requirements of
section 401(m) of the Code.

	 	 	 	The employer may elect to provide that the minimum benefit requirement shall be met
in another plan (including another plan that consists solely of a cash or deferred
arrangement which meets the requirements of section 401(k)(12) of the Code and
matching contributions with respect to which the requirements of section 401(m)(11)
of the Code are met).

 

71

 

Section 3. Information and Communications

Each Employer, Member, Spouse and Beneficiary shall be required to furnish the Board with such
information and data as may be considered necessary by the Board. All notices, instructions and
other communications with respect to the Plan shall be in such form as is prescribed from time to
time by the Board, shall be mailed by first class mail or delivered personally, and shall be deemed
to have been duly given and delivered only upon actual receipt thereof by the Board. All
information and data submitted by an Employer or a Member, including a Member’s birth date, marital
status, salary and circumstances of his employment and termination thereof, may be accepted and
relied upon by the Board. All communications from the Board or the Trustee to an Employer, Member,
Spouse or Beneficiary shall be deemed to have been duly given if mailed by first class mail to the
address of such person as last shown on the records of the Plan.

Section 4. Small Account Balances

Notwithstanding the foregoing provisions of the Plan, and except as provided in Article III,
Section 6(B)(6), if the value of all of a Member’s Account under the Plan (including a Profit
Sharing Account and a Rollover Account, if any), when aggregated is equal to or exceeds $500, then
no Account will be distributed without the consent of the Member prior to age 65 (at the earliest).

Section 5. Amounts Payable to Incompetents, Minors or Estates

If the Board shall find that any person to whom any amount is payable under the Plan is unable to
care for his affairs because of illness or accident, or is a minor, or has died, then any payment
due him or his estate (unless a prior claim therefor has been made by a duly appointed legal
representative) may be paid to his Spouse, relative or any other person deemed by the Board to be a
proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be
a complete discharge of the liability of the Trust Fund therefor.

Section 6. Non-alienation of Amounts Payable

Except insofar as may otherwise be required by applicable law, or Article VIII, or pursuant to the
terms of a Qualified Domestic Relations Order, no amount payable under the Plan shall be subject in
any manner to alienation by anticipation, sale, transfer, assignment, bankruptcy, pledge,
attachment, charge or encumbrance of any kind, and any attempt to so alienate shall be void; nor
shall the Trust Fund in any manner be liable for or subject to the debts or liabilities of any
person entitled to any such amount payable; and further, if for any reason any amount payable under
the Plan would not devolve upon such person entitled thereto, then the Board, in its discretion,
may terminate his interest and hold or apply such amount for the
benefit of such person or his dependents as it may deem proper. For the purposes of the Plan, a “Qualified Domestic
Relations Order” means any judgment, decree or order (including approval of a property settlement
agreement) which has been determined by the Board in accordance with procedures established under
the Plan, to constitute a Qualified Domestic Relations Order within the meaning of Section
414(p)(1) of the Code. No amounts may be withdrawn under Article VII and Article III, Section 8,
and no loans granted under Article VIII, if the Pentegra DC Plan Office has received a document
which may be determined following its receipt to be a Qualified Domestic Relations Order prior to
completion of review of such order by the Office within the time period prescribed for such review
by the IRS Regulations.

 

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Section 7. Unclaimed Amounts Payable

If the Board cannot ascertain the whereabouts of any person to whom an amount is payable under the
Plan, and if, after 5 years from the date such payment is due, a notice of such payment due is
mailed to the address of such person, as last shown on the records of the Plan, and within 3 months
after such mailing such person has not filed with the Board written claim therefor, the Board may
direct in accordance with ERISA that the payment (including the amount allocable to the Member’s
contributions) be cancelled, and used in abatement of the Plan’s administrative expenses, provided
that appropriate provision is made for recrediting the payment if such person subsequently makes a
claim therefor.

Section 8. Leaves of Absence

	(A)	 	Contribution allocations and vesting service continue to the extent provided in Paragraphs
(B)(1), (2), (3) or (4), below, during any approved Leave of Absence, provided that the Employer
notifies the Plan of its intention to grant to a specific Employee or Member, pursuant to the
Employer’s policy which is uniformly applicable to all its Employees under similar circumstances,
one of the Leaves of Absence described in Paragraph (B) below, and agrees to notify the Plan at the
conclusion of such leave.

	(B)	 	For purposes of the Plan there are only four types of approved Leaves of Absence:

	 	(1)	 	Non-military leave granted to a Member for a period not in excess of one year during
which service is recognized for vesting purposes and the Member is entitled to share in any
supplemental contributions under Article III, Section 3 or forfeitures under Article VI,
Section 2, if any, on a pro rata basis, determined by the Salary earned during the Plan
Year or Contribution Determination Period; or

	 	(2)	 	Non-military leave or layoff granted to a Member for a period not in excess of one year
during which service is recognized for vesting purposes, but the Member is not entitled to
share in any contributions or forfeitures as defined under (1) above, if any, during the
period of the leave; or

	 	(3)	 	To the extent not otherwise required by applicable law, military or other governmental
service leave granted to a Member from which he returns directly to the service of the
Employer. Under this leave, a Member may not share in any contributions or forfeitures as
defined under (1) above, if any, during the period of the leave, but vesting service will
continue to accrue; or

 

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	 	(4)	 	To the extent not otherwise required by applicable law, a military leave granted at the
option of the Employer to a Member who is subject to military service pursuant to an
involuntary call-up in the Reserves of the U.S. Armed Services from which he returns to the
service of the Employer within 90 days of his discharge from such military service. Under
this leave, a Member is entitled to share in any contributions or forfeitures as defined
under (1) above, if any, and vesting service will continue to accrue. Notwithstanding any
provision of the Plan to the contrary, if a Member has one or more loans outstanding at the time of
this leave, repayments on such loan(s) may be suspended, if the Member so elects,
until such time as the Member returns to the service of the Employer or the end of
the leave, if earlier.

	 	 	 	The determination of who is a Highly Compensated Employee will be made in
accordance with Section 414(q) of the Code and the IRS Regulations thereunder.

	(C)	 	Notwithstanding any provision of this Plan to the contrary, effective December 12, 1994,
contribution allocations and vesting service with respect to qualified military service will be
provided in accordance with Section 414(u) of the Code. Loan repayments will be suspended under
this Plan as permitted under Section 414(u)(4) of the Code during such period of qualified military
service.

Section 9. Return of Contributions to Employer

	(A)	 	In the case of a contribution that is made by an Employer by reason of a mistake of fact, such
Employer may request the return to it of such contribution within one year after the payment of the
contribution, provided such refund is made within one year after the payment of the contribution.

	(B)	 	In the case of a contribution made by an Employer or a contribution otherwise deemed to be an
Employer contribution under the Code, such contribution shall be conditioned upon the deductibility
of the contribution by the Employer under Section 404 of the Code. To the extent the deduction for
such contribution is disallowed, in accordance with IRS
Regulations, the Employer may request the return to it of such contribution within one year
after the disallowance of the deduction.

Section 10. Controlling Law

The Plan and all rights thereunder shall be governed by and construed in accordance with the laws
of the State of New York (without regard to the principles of the conflicts of laws thereof) and
ERISA.

 

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ARTICLE XI TERMINATION OF EMPLOYER PARTICIPATION

Section 1. Termination by Employer

Any Employer may terminate its participation in the Plan by giving the Board written notice
specifying a termination date which shall be a Valuation Date at least 60 days subsequent to the
date such notice is received by the Board.

Section 2. Termination by Board

The Board may terminate any Employer’s participation, as of a termination date specified by the
Board, if the Board determines that the Employer has failed to make proper contributions or to
comply with any other provision of the Plan or any applicable rulings or Regulations under the
Code, within 15 days after notice and demand by the Board. Except as provided under Article III,
Section 3, upon complete discontinuance of an Employer’s contributions, its participation shall
automatically terminate, and its termination date shall be a Valuation Date specified by the Board
which is within 3 months subsequent to the last day through which the Employer’s contributions to
the Trust Fund were paid.

Section 3. Termination Distribution

If an Employer’s participation is terminated, the Board shall promptly notify the IRS and such
other appropriate governmental authority as applicable law may require. Neither the Employer not
its Employees shall make any further contributions under the Plan after the termination date,
except that the Employer shall remit to the Board an amount equal to the product of (i) $60
multiplied by (ii) the number of the Employer’s Members and Employees with a balance in their
Accounts as of the termination date, to defray the cost of implementing its termination. If the
Employer elects to permit transfers to a qualified successor plan in accordance with Article VII,
Section 3, for which Pentegra Services, Inc., will provide services, the Board may waive the
withdrawal fees provided for in this Section 3. Except as Article III, Section 4 may provide, each
Employee may thereafter withdraw the current value of his Accounts in accordance with Article VII.
Subject to the provisions of Article XII, Paragraph (D), an Employer whose participation has been
terminated pursuant to this Article may transfer assets under its prior Plan to a qualified
successor plan, provided such plan satisfies the requirements contained in Article VII, Section 3
and the transfer is otherwise in accordance with the procedures of such Section.

Upon the termination of participation under the Plan of an Employee’s or Member’s Employer, any
rights of the Employee or Member to make contributions, rollovers or transfers to the Plan shall
cease.

 

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ARTICLE XII AMENDMENT OR TERMINATION OF THE PLAN AND TRUST

	(A)	 	The Board shall have the right to amend or terminate the Plan or Trust Agreement at any time in
whole or in part, for any reason, and without the consent of any Employer, Member or Beneficiary,
and each Employer by its adoption of the Plan and Trust shall be deemed to have delegated this
authority to the Board. No amendment, however, shall impair such rights of payment as the Member or
his Beneficiary would have had, if such amendment had not been made, with respect to contributions
made by him or on his behalf prior to such amendment, except to the extent that such amendment is,
in the opinion of the Board, necessary or desirable to qualify or maintain the Plan and the Trust
as a plan and trust meeting the requirements of Sections 401(a) and 501(a) of the Code as now in
effect or hereafter amended, or any other applicable section of the Code now or hereafter in force
from time to time; and no amendment shall make it possible for any part of the Trust Fund (other
than such part as may be necessary to pay the expenses and charges referred to in Article IX) to be
used for purposes other than for the exclusive benefit of Members or their Beneficiaries.

	(B)	 	In the event of termination of the Plan by the Board or upon a complete discontinuance of
contributions under the Plan, the Units credited to each Member’s Account as of the date of such
termination or complete discontinuance of contributions shall be fully vested in the Member, and
the Trustee shall upon direction of the Board liquidate the assets of the Trust Fund with such
promptness as the Trustee deems prudent. When such liquidation has been completed and after
provision for all expenses and charges referred to in Article IX, and proportionate adjustment of
all Plan Accounts to reflect such expenses, the Trustee shall pay to each person who was a Member
on such termination date (or in the event of his death on or after such date, to his Spouse or
Beneficiary) a lump sum equal to the amount, if any, then credited to his Account after such
liquidation and provision for expenses and charges.

	(C)	 	Notwithstanding any termination of the Plan by the Board, the Board shall remain in existence
and all the provisions of the Plan shall remain in force which are necessary for the execution of
the Plan and the distribution of the Trust Fund assets in accordance with this Article.

	(D)	 	No assets of the Plan shall in any event be merged, consolidated with, or transferred to any
other plan unless each Member affected thereby would, if such plan then terminated immediately
after such event, receive thereunder a benefit which is equal to or greater than the benefit to
which he would have been entitled if the Plan had terminated immediately before such event.

	(E)	 	In the event that any governmental authority or the Board determines that a partial termination
(within the meaning of ERISA) of the Plan has occurred as to any Employer, then the Units credited
to the Account of each Member who is affected thereby shall be fully vested in such Member and the
provisions of Article XI and this Article XII, which in the opinion of the Board are necessary for
the execution of the Plan and the allocation and distribution of assets of the Plan, shall apply.

 

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TRUSTS ESTABLISHED UNDER THE PLAN

Assets of the Plan are held in trust under Trust Agreements with Bank of New York, pursuant to
Article IX, Section 2 of the Plan. Any Employer or Member may obtain a copy of these Trust
Agreements from the office of the Plan.

 

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SUMMARY OF MATERIAL MODIFICATIONS

PLAN NAME: FEDERAL HOME LOAN BANK OF NEW YORK

PENTEGRA DC PLAN

In accordance with the requirements of the Employee Retirement Income Security Act of 1974
(“ERISA”) and regulations thereunder, this is a Summary of Material Modifications (“SMM”) regarding
certain changes to the Federal Home Loan Bank of New York Pentegra DC Plan (“Plan”).

This SMM supplements the Summary Plan Description (“SPD”) previously provided to you and is
intended to inform you of these Plan changes. You should retain this document with your copy of
the SPD.

Employer Information. The legal name, address, and Federal employer identification number of
the Employer are as follows:

Employer/Plan
Sponsor: Federal Home Loan Bank of New York/Pentegra DC
Plan

Address:
101 Park
Avenue, New York, NY 10178

EIN:
13-6321489

Description of Plan Change(s). The Employer has amended the Plan in the following respects,
effective as of the date or dates specified hereunder:

1. Effective as of July 1, 2009, in addition to making pre-tax elective deferrals, 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.

For purposes of making distributions, if you designate 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 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 you
made a designated Roth contribution to the Plan.

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