Document:

EX-10.7.2

Exhibit 10.7.2

Federal Home Loan Bank of Pittsburgh

Supplemental Thrift Plan

Amended and Restated Effective June 26, 2007

Revised September 26, 2007

Further Revised December 19, 2008

			
	 	 	 
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Table of Contents

	 	 	 	 	 	 	 
	Article	 	 	 	Page	 
	 
	 	Preamble	 	 	1	 
	 
	 	 	 	 	 	 
	I.
	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 
	II.
	 	Participation and Vesting	 	 	5	 
	 
	 	 	 	 	 	 
	III.
	 	Deferral Elections; Employee Deferrals; Bank Deferrals	 	 	6	 
	 
	 	 	 	 	 	 
	IV.
	 	Accounts and Investment Vehicles	 	 	8	 
	 
	 	 	 	 	 	 
	V.
	 	Distribution of Benefits	 	 	9	 
	 
	 	 	 	 	 	 
	VI.
	 	Administration of the Plan	 	 	12	 
	 
	 	 	 	 	 	 
	VII.
	 	General Provisions	 	 	14	 

			
	 	 	 
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Preamble

The Federal Home Loan Bank of Pittsburgh (the “Bank”) participates in the Financial Institutions
Thrift Plan (the “Thrift Plan”), a retirement savings plan qualified under the Internal Revenue
Code (the “Code”) for employees of the Federal Home Loan Bank of Pittsburgh. The Thrift Plan
permits eligible employees to elect to reduce and defer a percentage of their compensation,
contributing the same to the Thrift Plan. The Bank matches employee contributions based on length
of service and the amount of employee contributions.

However, as a result of the limitations imposed upon the aggregate amount of contributions which
can be made to the Thrift Plan under Section 415 and other sections of the Code, such limitations
causing a reduction in the benefits otherwise provided to certain of the Bank’s executives, the
Bank has adopted this nonqualified, unfunded Supplemental Thrift Plan (the “Plan”). The purpose of
this Plan is to allow those employees whose benefits under the Thrift Plan would otherwise be
significantly restricted by the terms of the Thrift Plan itself or the Code to make elective pretax
deferrals and to receive the Bank match relating to such deferrals. Additionally, under the Plan,
the Bank will match 200 percent of such employee’s contributions; provided, however, that the
Bank’s matching contribution will not exceed the excess of 3 percent of the employee’s compensation
(as defined in the Plan) over the Bank’s contribution to the Thrift Plan.

			
	 	 	 
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Article I

Definitions

	1.1	 	“Account” means the book reserve account established and maintained hereunder to record the
contributions deemed to be made by the Participant and the Bank, as well as the increase in
value attributable to the earnings thereon, all as described hereafter.
	 
	1.2	 	“Bank” means the Federal Home Loan Bank of Pittsburgh.
	 
	1.3	 	“Bank Deferral” means an amount allocated by the Bank to a Participant’s Account pursuant to
Section 3.3.
	 
	1.4	 	“Beneficiary” means the person or persons designated by a Participant under the provisions of
this Supplemental Thrift Plan to receive his/her benefits in the event of his/her death prior
to receipt of all benefits hereunder. If no person is designated by a Participant or the
designated person or persons do not survive the Participant, the Participant’s Beneficiary
shall be his/her estate. If a Beneficiary who is receiving payments from a Participant’s
Account dies before the entire Account has been distributed, the remaining payments shall be
made to the Beneficiary’s estate.
	 
	1.5	 	“Board” or “Board of Directors” means the Board of Directors of the Federal Home Loan Bank of
Pittsburgh.
	 
	1.6	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time.
	 
	1.7	 	“Compensation” means the annual base salary plus incentive compensation. The portion of any
incentive compensation award under a VIP (as defined below) that is included in “Compensation”
shall not exceed the maximum amount of incentive compensation that would have been included
for such Participant in that year if the Bank’s short-term incentive compensation plan in
effect as of June 25, 2007 continued in effect after 1/01/2008. Incentive compensation under
an LTI (as defined below) shall be excluded from the definition of “Compensation.”
	 
	1.8	 	“Deferral Election” means a Participant’s irrevocable election to defer a portion of his/her
Compensation.
	 
	1.9	 	“Deferral Period” means the period commencing with the date a Deferred Amount is first
credited to a Participant’s Account and continuing until payment of the final installment of a
Participant’s Deferred Amount.
	 
	1.10	 	“Deferred Amount” means the sum of all amounts deferred pursuant to a Participant’s Deferral
Election, plus the Bank match, plus investment earnings thereon, plus any increments thereof
credited to the Participant’s Account, less any benefit payments made from the Participant’s
Account.
	 
	1.11	 	“Disability” means with respect to eligibility for payment of a Participant’s vested benefit
under the Plan through December 31, 2004, a Participant’s total or partial disability as

			
	 	 	 
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	 	 	determined by the Thrift Plan in accordance with the Thrift Plan in effect at October 3,
2004. With respect to eligibility for payment of a Participant’s vested benefit amounts
under the Plan after December 31, 2004, “Disability” means that the Participant is: a)
unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months; b) by reason of any medically
determinable physical or mental impairment, which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under an accident and health
plan covering employees of the Bank; or c) determined to be totally disabled by the Social
Security Administration.
	 
	1.12	 	“Effective Date” means January 1, 1991.
	 
	1.13	 	“Employee Deferral” means an amount deferred by a Participant under the Plan.
	 
	1.14	 	“Human Resources Committee” means the Human Resources Committee of the Board.
	 
	1.15	 	“LTI” means any Long-Term Incentive Compensation Plan maintained by the Bank from time to
time.
	 
	1.16	 	“Participant” means an executive or other key employee who has been recommended by the
President, and confirmed by the Board, as eligible to participate in the Plan.
	 
	1.17	 	“Plan Administrator” means such officer(s) or manager of the Bank who has been appointed by
the Human Resources Committee to administer the Plan as set forth in Section 6.1 of the Plan.
The Human Resources Managing Director shall serve as the Plan Administrator unless the Board
shall appoint another Bank officer(s) or manager.
	 
	1.18	 	“Retention Incentive” means that portion of a Participant’s award under the Bank’s short-term
Variable Incentive Compensation Plan (“VIP”), if any, that is subject to forfeiture under the
terms of the VIP.
	 
	1.19	 	“Separation from Service” means the Participant’s death, retirement, the time at which the
Participant’s services performed for the Bank are permanently reduced to no more than 20
percent of the average level of services performed by the Participant over the preceding
36-month period, or other termination of employment all as set forth in applicable definitions
under 26 C.F.R. 1.409A-1(h) and related and successor regulations as may be in effect from
time to time.
	 
	1.20	 	“Unforeseeable Emergency” means: a) a severe financial hardship to a Participant resulting
from an illness or accident of: (i) the Participant; (ii) the Participant’s spouse; (iii) the
Participant’s dependent as defined in Code Section 152(a)); or (iv) if the Participant is
already receiving payments under the Supplemental Thrift Plan, a severe financial hardship
resulting from illness or accident of the Beneficiary; b) loss of the Participant’s property
due to casualty; or c) other similar extraordinary and

			
	 	 	 
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	 	 	unforeseeable circumstances arising as a result of events beyond the control of the
Participant.
	 
	1.21	 	“VIP” means the Bank’s short-term Variable Incentive Compensation Plan adopted by the Bank’s
Board of Directors effective January 1, 2008 under which annual incentive compensation awards
may be made.

			
	 	 	 
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Article II

Participation and Vesting

	2.1	 	Eligibility to Participate. A Participant shall become eligible for Plan participation on
the later of the first day of the calendar month coincident with or next following the date
his/her participation is approved by the Board or the Effective Date. Once selected as a
Participant, the Participant shall continue as a Participant until the Board determines
otherwise. No Participant shall have the right to continue as a Participant in the Plan.
	 
	 	 	Upon designation as a Participant, each Participant will be given a copy of the Plan. Upon
becoming eligible to participate in the Plan, a Participant shall have the option to make a
Deferral Election to defer a portion of his/her annual Compensation.
	 
	2.2	 	Termination of Participation. No further Employee Deferrals or Bank Deferrals shall occur
with respect to a Participant after the Participant’s employment with the Bank terminates.
However, until the amounts in a Participant’s Account are fully paid out to the Participant
and/or his/her Beneficiary, the Participant’s Account shall continue to be notionally invested
as provided in Section 4.2, and the Participant (or his/her Beneficiary) shall continue to
have the right to change such investments by written notice to the Plan Administrator. Once a
Participant’s Account has been fully paid out, such Participant shall cease to be a
Participant in the Plan and neither the Participant nor his/her Beneficiary shall have any
further rights hereunder.
	 
	2.3	 	Vesting. All benefits under the Plan are fully vested at all times subject only to
Forfeiture for Cause as defined in Section 7.6. For all purposes of the Plan, earnings with
respect to amounts in a Participant’s Account which were vested as of December 31, 2004 (and
earnings on such earnings) shall be deemed to have been vested as of December 31, 2004 and all
other earnings with respect to amounts in a Participant’s Account shall be deemed not to have
been vested as of December 31, 2004.

			
	 	 	 
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Article III

Deferral Elections; Employee Deferrals; Bank Deferrals

	3.1	 	Deferral Elections. The Plan Administrator shall provide each Participant with a form on
which to make a Deferral Election within 10 days after such Participant becomes eligible to
participate in the Plan and at least 30 days prior to the end of each calendar year. Each
Participant shall execute and deliver the Deferral Election to the Plan Administrator no later
than the last business day of each calendar year with respect to Compensation to be earned and
amounts eligible pursuant to an LTI or VIP, excluding the Retention Incentive portion, to be
earned in the following calendar year.
	 
	 	 	An executive who becomes eligible to participate during a calendar year shall have the
option to execute a Deferral Election and deliver it to the Administrator within 30 days of
the date he/she becomes eligible to participate in the Plan. Such election shall apply only
to Compensation and amounts pursuant to an LTI or VIP, (if applicable) to be earned after
the date of the delivery of the Deferral Election to the Administrator and the Bank shall
defer such amounts on a prorated basis when applicable.
	 
	 	 	The Deferral Election will state the percentage of Compensation and amounts eligible to be
earned pursuant to an LTI or VIP (as applicable) which the Participant elects to defer for
the remainder of the first year of his/her eligibility or for the forthcoming calendar year,
as the case may be. In the case of the deferral of a VIP amount, it is expressly agreed
that the Retention Incentive portion of VIP incentive compensation is not subject to
deferral. A Deferral Election shall be irrevocable for the calendar year (or portion
thereof in the case of the first year of eligibility) for which the deferral is elected
unless an amendment of the Thrift Plan requires a new election by a Participant, and such a
new election is permissible under I.R.C. Section 409A and implementing regulations. If such
an event occurs, the Plan Administrator will communicate in writing with the Participant to
request a new Deferral Election. Notwithstanding an amendment of the Thrift Plan:

	 	(a)	 	(i) As to amounts earned in the first calendar year of participation, no
modification of a Deferral Election may be made more than thirty (30) days after a
Participant becomes eligible to participate in the Plan; and (ii) as to amounts earned
in the second and subsequent calendar years of participation, no modification of a
Deferral Election may be made after December 31 of the calendar year preceding the
calendar year in which the amounts are earned; and
	 
	 	(b)	 	as to amounts in a Participant’s Account which are not vested as of December
31, 2004, the last four sentences of Section 5.5 shall apply.

	3.2	 	Employee Deferrals. Once the Participant has made the maximum amount of employee
contributions allowable under the Thrift Plan in a calendar year, additional amounts shall be
deferred under this Plan in accordance with the Participant’s Deferral Election. Amounts
deferred under this Plan with respect to any calendar year may not exceed 80 percent of the
sum of the Participant’s Compensation and amounts earned pursuant to an LTI and VIP, if
applicable, during such calendar year less the

			
	 	 	 
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	 	 	Participant’s contributions to the Thrift Plan. For this purpose, a Participant’s
contributions to the Thrift Plan shall include any after-tax contributions to the Thrift
Plan by such Participant.
	 
	3.3	 	Bank Deferrals. For each Employee Deferral, the Bank shall allocate a matching Bank Deferral
equal to 200 percent of the Employee Deferral; provided that, Bank Deferrals for each
Participant with respect to each calendar year shall not exceed the excess of (a) three
percent of the Participant’s Compensation over (b) the Bank’s matching contribution to the
Thrift Plan.

			
	 	 	 
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Article IV

Accounts and Investment Vehicles

	4.1	 	Accounts. The total of the Employee and Bank Deferrals shall be credited monthly to the
applicable Participant Account as the deferred amounts are earned and shall be recorded on the
financial books and records of the Bank as a liability owed to the Participant.

	4.2	 	Notional Investments. Effective November 1, 2007, all Employee and Bank Deferrals credited
to a Participant’s Account will be assumed to be notionally invested in the investment funds
selected by Participant from time to time from a list provided to the Participant by the Bank
(such list is referred to as the “Eligible Investments”). Such Eligible Investments shall be
substantially similar to the investment choices available under the Thrift Plan from time to
time. Each Participant’s notional share in the investment funds shall be represented by
notional units in such funds. Each valuation day the number of new notional units credited to
a Participant in the investment funds will be determined by dividing the total amount of such
Participant’s Employee and Bank Deferrals notionally invested in the investment funds during
the month by the unit value of the investment funds as of the most recent valuation date. The
notional allocations of Employee and Bank Deferrals to the investment funds shall be as set
forth in the investment election forms completed by each Participant and submitted to the Plan
Administrator from time to time. Such election forms may be submitted in electronic form or,
at the option of the Participant in written form.

	4.3	 	Records. The Plan Administrator shall maintain such records as it deems necessary to
administer this Plan and shall direct the calculation of amounts in the Participants’
Accounts. To this end, the Plan Administrator is authorized to use Bank employees, agents or
contractors to calculate the benefits due hereunder.

			
	 	 	 
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Article V

Distribution of Benefits

	5.1	 	Amount of Benefits. A Participant’s Account shall be valued as of the last day of the month
preceding each month with respect to which the Participant is entitled to receive a
distribution hereunder, assuming no contributions were made since the last day of the
preceding month. If a contribution was made since the last day of the preceding month, the
amount of such contribution shall be added to the value determined under the preceding
sentence.

	5.2	 	Events Which Trigger Payment of Amounts Vested as of 12/31/04. The amounts in a
Participant’s Account which are vested as of December 31, 2004, including all earnings
thereon, shall become payable to him/her pursuant to Section 5.3 as of the earliest of the
date of his/her termination of employment with the Bank, including termination due to death,
his/her Disability, or his/her retirement or other Separation from Service as defined above.
With respect to amounts in a Participant’s Account which are vested as of December 31, 2004,
notwithstanding any deferral election previously made, a Participant may at any time submit a
request, through the Plan Administrator, to the Human Resources Committee seeking a
distribution of part or all of such amounts for reasons of severe financial hardship or other
reasons as permitted under the provisions of the Thrift Plan in its form as of October 3,
2004. The Human Resources Committee may, in its absolute discretion, grant or refuse any such
request. It is the intention of the Board that hardship and other withdrawals of amounts in a
Participant’s Account which are vested as of December 31, 2004 shall be available for the same
reasons as such withdrawals are available from the Thrift Plan (in its form as of October 3,
2004) and that the Participant shall provide such proof and documentation as is required for
hardship and other withdrawals from the Thrift Plan.

	5.3	 	Amounts Vested as of 12/31/04 — Form and Timing of Payment. When a Participant’s Account is
payable pursuant to Section 5.2, it shall be paid in a lump sum within 90 days following the
applicable payment event set forth in Section 5.2. Alternatively, if the Participant has so
elected, the Participant’s Account shall be paid in from two to ten annual installments. In
the case of installment payments, the first installment payment shall be made within 90 days
of the applicable payment event set forth in Section 5.2 and each remaining annual installment
shall be paid no later than March 31 of each succeeding year. The amount of the installment
payment to be distributed in each calendar year shall be the amount calculated by dividing the
value of the Participant’s Account as of the immediately preceding month-end by the number of
remaining installment payments, including the one whose value is being calculated. The
elections and any changes to an election which are permitted hereunder will become effective
on the first January 1 which is at least twelve months after the date of the election.
Failure to make an election shall result in a lump sum payment within 90 days of the
triggering payment event.

	5.4	 	Events Which Trigger Payment of Amounts Not Vested as of 12/31/04. The amount in a
Participant’s Account which is not vested as of December 31, 2004, including all

			
	 	 	 
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	 	 	earnings thereon, shall become payable to him/her pursuant to Section 5.5 as of the earliest
of the date of his/her termination of employment with the Bank (including retirement or
other Separation from Service as defined above), his/her Disability or his/her death. With
respect to amounts in a Participant’s Account which are not vested as of December 31, 2004,
notwithstanding any deferral election previously made, in the event that a Participant
suffers an Unforeseeable Emergency, the Participant may submit a request, through the Plan
Administrator, to the Human Resources Committee seeking a distribution of part or all of the
amount credited to such Participant’s Account. The Human Resources Committee may, in its
absolute discretion, grant or refuse any such request. The amount of a distribution that
the Bank may make hereunder in response to such a Participant request shall be limited to
the amount needed to satisfy the Unforeseeable Emergency plus taxes reasonably anticipated
as a result of the distribution. Distributions shall not be allowed to the extent that the
Unforeseeable Emergency may be relieved through reimbursement or compensation by insurance
or otherwise, or by liquidation of a Participant’s assets (to the extent such liquidation
would not itself cause a severe financial hardship).

	5.5	 	Amounts Not Vested as of 12/31/04 — Form of Payment. When a Participant’s Account is
payable pursuant to Section 5.4, it shall be paid in a lump sum within 90 days following the
applicable payment event set forth in Section 5.4. Alternatively, if the Participant has so
elected, the Participant’s Account shall be paid in from two to ten annual installments.
Failure to make an election at any time shall result in a lump sum payment. Any change in an
installment payment election, from an installment payment election to a lump sum election or
from a lump sum election to an installment payment election (“Revised Election”) will become
effective on the first January 1 which is at least twelve months after the date of the
election. In addition, with respect to any such Revised Election which changes the timing of
any payment, each payment to be made to the Participant shall be deferred by a date which is
at least 5 years after the date on which such payment would have been made; provided that, for
this purpose, a series of installment payments shall be treated as the entitlement to a single
payment on the date of the first payment. A Revised Election which changes an Existing
Election from installment payments to a lump sum payment shall require that the date of such
lump sum payment shall be a date that is at least 5 years from the date the initial
installment payment would have been made. Notwithstanding the foregoing or any provision in
this Plan, a Revised Election may not cause the impermissible acceleration of any payment,
within the meaning of Internal Revenue Code Section 409A or its implementing regulations.

	5.6	 	Amounts Not Vested as of 12/31/04 — Timing and Calculation of Installment Payments.
Installment payments under this Plan shall be made as follows: the first payment shall be made
within 90 days of the payment event with each remaining annual installment paid no later than
March 31 of each succeeding year. The amount of the installment payment to be distributed in
each calendar year shall be the amount calculated by dividing the value of the Participant’s
Account as of the immediately preceding month end by the number of remaining installment
payments, including the one whose value is being calculated.

			
	 	 	 
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	5.7	 	Amounts Not Vested as of 12/31/04 — Revision of Existing Payment Election Prior to 12/31/07.
The Plan is hereby amended to permit each Participant, on or before December 31, 2007, to
amend his/her current payment election as in effect on June 25, 2007, covering amounts not
vested as of December 31, 2004. Such a revised payment election shall be referred to as a
“Transition Election.” Provided that such Transition Election does not result in a payment in
2007, such Transition Election shall become effective upon receipt by the Plan Administrator
and shall not be subject to the terms of Section 5.5. Any Transition Election shall be
subject to the requirements of I.R.S. Notice 2006-79.
	 
	 	 	Additional Transition Election Prior to 12/31/08: Effective January 1, 2008, the Plan is
hereby amended to permit Participant, on or before December 31, 2008, to amend his/her
current payment election with respect to amounts not vested as of December 31, 2004. Such
revised payment election shall be referred to as the 2008 Transition Election. Provided
that such 2008 Transition Election does not result in a payment in 2008, such 2008
Transition Election shall become effective upon receipt by the Plan Administrator and shall
not be subject to the terms of Section 5.5. Any 2008 Transition Election shall be subject
to the requirements of I.R.S. Notice 2006-79, as modified by IRS Notice 2007-86.

	5.8	 	Death Benefits. In the event of a Participant’s death prior to the payment of all amounts in
the Participant’s Account, the amount then held in the Participant’s Account shall become
payable to his/her Beneficiary in the same manner as such amount would have been paid to the
Participant had he/she not died.

	5.9	 	Loans. No loans are available from the Plan.

			
	 	 	 
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Article VI

Administration of the Plan

	6.1	 	Human Resources Committee. The Board has delegated to the Human Resources Committee
authority over, and responsibility for, the interpretation and administration of the Plan;
except that the power to determine eligibility for participation in the Plan pursuant to
Section 2.1 is reserved to the Board. The Human Resources Committee shall interpret and
construe the Plan and have the responsibility to ensure that its provisions are carried out.
The Human Resources Committee shall exercise such power and responsibilities in its sole and
absolute discretion. The Human Resources Committee shall designate the Plan Administrator.

	6.2	 	Plan Administration. The Plan Administrator shall:

	 	(a)	 	act as the point of contact for submission of claims for benefits due under the Plan;
	 
	 	(b)	 	calculate the benefits due under the Plan or arrange for the calculation of
benefits;
	 
	 	(c)	 	inform Participants of the terms of the Plan and respond to their questions
regarding the Plan;
	 
	 	(d)	 	review and process claims for the payment of benefits under the Plan;
	 
	 	(e)	 	provide necessary reporting to Bank management, Participants, the Human
Resources Committee, the Board, and others as necessary; and
	 
	 	(f)	 	take such other action as is required to perform the tasks listed hereunder or
otherwise administer the terms of the Plan. In fulfilling the responsibilities in this
section, the Plan Administrator may use other Bank staff, other agents or engage
contractors.

	6.3	 	Claims Procedure. All claims for benefits shall be in writing and shall be filed with the
Plan Administrator. If the Plan Administrator wholly or partially denies a Participant’s or
Beneficiary’s claim for benefits, the Plan Administrator shall, within 90 days after the
Plan’s receipt of the claim, give the claimant written notice setting forth in understandable
language:

	 	(a)	 	the specific reason(s) for the denial;
	 
	 	(b)	 	specific reference to pertinent Plan provisions on which the denial is based;
	 
	 	(c)	 	a description of any additional material or information which must be submitted
to perfect the claim, and an explanation of why such material or information is
necessary; and

			
	 	 	 
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	 	(d)	 	an explanation of the Plan’s review procedure.

The claimant shall have 60 days after the day on which such written notice of denial is
handed or mailed to him/her in which to apply (in person or by authorized representative) to
the Human Resources Committee, in writing, for a full and fair review of the denial of this
claim. In connection with such review, the claimant (or this representative) shall be
afforded a reasonable opportunity to review pertinent documents and may submit issues and
comments in writing.

The Human Resources Committee shall issue its decision on review promptly and within 60 days
after the Plan’s receipt of the request for review, unless special circumstances require an
extension to not later than 120 days after receipt of the request for review. (Written
notice of any such extension shall be furnished to the claimant before the commencement of
such extension.) The decision shall be in writing and shall set forth in understandable
language specific reasons for the decision and specific references to pertinent Plan
provisions on which the decision is based.

			
	 	 	 
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Article VII

General Provisions

	7.1	 	Rights to Employment. The establishment of the Plan, and selection of an executive for
inclusion as a Participant in the Plan, shall not be construed as conferring any legal rights
upon any Participant or other person for the continuation of employment; nor shall it
interfere with the rights of the Bank to discharge any Participant and to treat him/her
without regard to the effect such treatment might have upon him/her as a Participant in the
Plan.
	 
	7.2	 	Source of Funding—Participant as General Creditor. The Bank has not established any form of
trust or funded account for the purpose of providing benefits under this Plan. In the event
that the Bank establishes a rabbi trust or other similar arrangement, such arrangement shall
preserve this Plan’s status under the Internal Revenue Code as an unfunded nonqualified
deferred compensation plan and the assets of the Bank held pursuant to any such arrangement
shall remain subject to the claims of the Bank’s general creditors. Any Participant who may
have or claim any interest in or right to any amount payable hereunder shall rely solely upon
the unsecured promise of the Bank, as set forth herein, for the payment of the claim. Nothing
herein contained should be construed to give to or vest in any Participant, now or at any time
in the future, any right, title, interest or claim in or to any specific asset, fund, reserve,
account or property of any kind whatever owned by the Bank, or in which the Bank may have any
right, title or interest, now or at any time in the future. The Plan is not intended to be a
qualified plan within the meaning of Section 401(a) of the Code and the Bank shall not be
required to qualify the Plan under the Code.
	 
	7.3	 	Incapacity. In the event that the Human Resources Committee shall find that a Participant is
unable to care for his/her affairs because of illness or accident, the Human Resources
Committee may direct that any payment due him/her, unless claim shall have been made therefor
by a duly appointed legal representative, be paid to his/her spouse, a child, a parent or
other blood relative, or to a person with whom he/she resides, and any such payment so made
shall be a complete discharge of the liabilities of the Plan therefor.
	 
	7.4	 	Reporting and Withholding of Taxes. The Bank shall file Form W-2 and other applicable tax
documents as required under applicable federal and state law, including, without limitation,
required annual federal tax filings of a Participant’s accrued benefits under the Plan. The
Bank shall have the right to deduct from each payment to be made under the Plan any required
withholding taxes and shall withhold or cause to be withheld from all payments or accruals of
benefits under the Plan (if applicable), all federal, state or local taxes required to be
withheld by law. The Participant shall be liable for the payment of all taxes on the benefits
under the Plan that are the Participant’s responsibility under the laws establishing such
taxes.
	 
	7.5	 	Alienation of Benefits under the Plan. Benefits payable under this Plan shall not be subject
in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge, whether voluntary or involuntary, including any such liability which is for alimony or
other payments for the support of a spouse or former spouse, or

			
	 	 	 
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	 	 	for any other relative of the Participant, prior to actually being received by the person
entitled to the benefits under the terms of the Plan, and any attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void; nor
shall any such distribution or payment be in any way liable for or subject to the debts,
contracts, liabilities, engagements or torts of any person entitled to such distribution or
payment. If any Participant or Beneficiary is adjudicated bankrupt or purports to
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any such
distribution or payment voluntarily or involuntarily, the Bank, in its discretion, may hold
or cause to be held or applied such distribution or payment or any part thereof to or for
the benefit of such Participant or Beneficiary in such manner as the Bank shall direct.

	7.6	 	Forfeiture for Cause. The Bank Deferrals and the earnings on the Bank Deferrals
otherwise payable by the Plan may be subject to forfeiture for cause at any time. “Cause”
shall mean:

	 	(a)	 	the perpetration by a Participant of a defalcation involving the Bank or any
affiliate;
	 
	 	(b)	 	willful, reckless or grossly negligent conduct of a Participant entailing a
substantial violation of any material provision of the laws, rules, regulations or
orders of any governmental agency applicable to the Bank or an affiliate;
	 
	 	(c)	 	the repeated and deliberate failure by a Participant to comply with reasonable
policies or directives of the Board of Directors; or
	 
	 	(d)	 	the breach by a Participant of a noncompetitive covenant or agreement with the
Bank or affiliate.

Whether the facts in any given case amount to “Cause” shall be determined by the Board of
Directors.

	7.7	 	Compliance with Laws. The provisions of the Plan shall be construed, administered and
governed under the laws of the United States including, without limitation, Internal Revenue
Code Section 409A and implementing regulations and, to the extent they defer to state law, the
laws of the Commonwealth of Pennsylvania.
	 
	7.8	 	Construction. Whenever any words are used herein in the masculine gender, they shall be
construed as though they were also used in the feminine gender in all cases where they would
so apply, and whenever any words are used herein in the singular form, they shall be construed
as though they were also used in the plural form in all cases where they would so apply.
Titles of Articles and Sections hereof are for convenience of reference only and are not to be
taken into account in construing the provisions of this Plan. In case any provision of the
Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not
affect the remaining parts of the Plan, but the Plan shall be construed and enforced as if
said illegal and invalid provision had never been inserted herein.

			
	 	 	 
	Revised: December 19, 2008
	 	66342v8A

15

 

	7.9	 	Amendment and Termination. The Bank specifically reserves the right, in the sole and
unfettered discretion of its Board, at any time, to amend, in whole or in part, any or all of
the provisions of the Plan and to terminate the Plan in whole or in part; provided, however,
that no such amendment or termination shall reduce or eliminate the rights of a Participant
accrued hereunder to the date of such amendment or termination. Provided further, that no
such termination shall result in an impermissible acceleration of any amount deferred under
this Plan that would violate the provisions of Internal Revenue Code Section 409A(a)(3) or
Treasury Regulation Section 1.409A-3(j) or any successor regulations.
	 
	7.10	 	Binding on Successors. The Plan shall be binding upon and inure to the benefit of the Bank
and its successors and assigns. The Plan shall also be binding upon and inure to the benefit
of any successor organization succeeding to substantially all of the assets and business of
the Bank. Nothing in the Plan shall preclude the Bank from merging or consolidating into or
with, or transferring all or substantially all of its assets to, another organization which
assumes the Plan and all obligations of the Bank hereunder. The Bank agrees that it will make
appropriate provision for the preservation of Participants’ rights under the Plan in any
agreement or plan which it may enter into to effect any merger, consolidation, reorganization
or transfer of assets. Upon such a merger, consolidation, reorganization, or transfer of
assets and assumption of Plan obligations of the Bank, the term “Bank” shall refer to such
other organization and the Plan shall continue in full force and effect.
	 
	7.11	 	Permissible Payment Acceleration. In the event of an Internal Revenue Code Section 409A Plan
failure that results in income inclusion to a Participant, payment of Participant’s benefits
under this Plan shall be accelerated; provided that, the amount of the accelerated payment
shall not exceed the amount required to be included in Participant’s income due to the Plan
failure.

			
	 	 	 
	Revised: December 19, 2008
	 	66342v8A

16EX-10.13

Exhibit 10.13

Summary Plan Description

Pentegra Defined

Benefit Plan for

Financial Institutions

as adopted by:

Federal Home Loan Bank of

Pittsburgh

P E N T
E G R A  R E T I R E M E N T  S E R V I C E S

 

 

SUMMARY PLAN DESCRIPTION

for

Federal Home Loan Bank

of Pittsburgh

Pittsburgh, Pennsylvania

June 1, 2008

PENTEGRA DEFINED BENEFIT PLAN FOR

FINANCIAL INSTITUTIONS

108 Corporate Park Drive

White Plains, NY 10604

 

 

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

 

 

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 (If you were hired prior to January 1, 2008)
	 	 	4	 
	 
	- Normal Retirement (If you were hired on or after January 1, 2008)
	 	 	5	 
	 
	- Early Retirement (If you were hired prior to January 1, 2008)
	 	 	6	 
	 
	- Early Retirement (If you were hired on or after January 1, 2008)
	 	 	7	 
	 
	- Disability Retirement
	 	 	8	 
	 
	- Retirement Adjustment Payment
	 	 	9	 
	 
	Death Benefit
	 	 	10	 
	 
	- Death Benefit in Active Service
	 	 	10	 
	 
	- Death Benefit in Retirement (if you were hired prior to January 1, 2008)
	 	 	10	 
	 
	- Death Benefit in Retirement (if you were hired on or after January 1, 2008)
	 	 	11	 
	 
	Optional Forms of Retirement Benefit
	 	 	12	 
	 
	Paying for the Benefits
	 	 	13	 
	 
	Your Personal Annual Statement
	 	 	13	 
	 
	Reinstatement of Membership and Service
	 	 	14	 
	 
	Leaves of Absence
	 	 	15	 
	 
	Limitations on Benefits
	 	 	16	 
	 
	Insurance of Benefits
	 	 	17	 
	 
	Disputed Claims Procedure
	 	 	17	 
	 
	Qualified Domestic Relations Orders (“QDROs”)
	 	 	17	 
	 
	Statement of ERISA Rights
	 	 	18	 
	 
	Other Plan Information
	 	 	20	 

 

 

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:

Six (6) 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 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.

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 paragraph may be disregarded.)

	 	•	 	Employees who are compensated on an hourly basis.

1

 

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 (see Page 1)
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. It is your period of employment measured from the first day of the month in
which you were hired (but not before the earliest date your employer provided credit under any
pension plan) to the last day of the month in which you terminate employment. (Refer to Page 3
describing Vesting.)

Salary is your basic annual salary rate as of each January 1, exclusive of special payments such as
overtime, bonuses, or commissions.

2

 

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 Employment
	 	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 employment 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

 

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.

Normal Retirement (if you were hired prior to January 1, 2008):

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
	 	 	 	Average
	 	 	 	Annual
	2%
	 	X
	 	Service
	 	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:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Years of
	 	 	 	High-3
	 	 	 	Regular
	 
	 	 	 	Benefit
	 	 	 	Average
	 	 	 	Annual
	 
	 	 	 	Service
	 	 	 	Salary
	 	 	 	Allowance
	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	2%
	 	X
	 	30 yrs. (=60%)
	 	X
	 	$32,000
	 	=
	 	$19,200

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.

4

 

Normal Retirement (if you were hired on or after January 1, 2008):

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-5
	 	 	 	Regular
	 
	 	 	 	Benefit
	 	 	 	Average
	 	 	 	Annual
	1.5%
	 	X
	 	Service
	 	X
	 	Salary
	 	=
	 	Allowance

Example: A member had 30 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 $32,000. His annual retirement allowance would be:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Years of
	 	 	 	High-5
	 	 	 	Regular
	 
	 	 	 	Benefit
	 	 	 	Average
	 	 	 	Annual
	 
	 	 	 	Service
	 	 	 	Salary
	 	 	 	Allowance
	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	1.5%
	 	X
	 	30 yrs.(=45%)
	 	X
	 	$32,000
	 	=
	 	$14,400

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.

Retirement beyond age 65 (for those who have reached age 65 on or after July 1, 1988).

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
normal retirement age (65) actuarially increased.

Special rules apply to members who reached age 65 prior to July 1, 1988 and continued in employment
beyond that date.

5

 

Early Retirement (if you were hired prior to January 1, 2008):

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.

For employees hired prior to January 1, 2008, 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.

Example: A member terminates employment at age 61 after 26 years of benefit service (rather than
at age 65 after 30 years), and his High-3 Average Salary over such a period is $28,000. His annual
retirement allowance commencing at age 65 would be:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Years of	 	 	 	High-3	 	 	 	Regular Annual
	 	 	 	 	Benefit	 	 	 	Average	 	 	 	Allowance Payable
	 	 	 	 	Service	 	 	 	Salary	 	 	 	At Age 65
	2%
	 	X
	 	26 yrs. (= 52%)
	 	X
	 	$28,000
	 	=
	 	$14,560

If, on the other hand, the member elected to have his retirement allowance commence
immediately, the allowance payable at age 65 would be reduced by 3% for each year he is under
age 65, as follows:

	 	 	 	 	 	 	 	 	 
	Annual	 	 	 	Early	 	 	 	Regular Annual
	Allowance	 	 	 	Retirement	 	 	 	Allowance Payable
	Payable at Age 65	 	 	 	Factor (Age 61)	 	 	 	Immediately (Age 61)
	$14,560
	 	X
	 	88%
	 	=
	 	$12,812

NOTE: 88% is the early retirement factor at age 61. 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 other early retirement factors are:

	 	 	 	 	 	 	 	 	 	 	 
	Age When	 	 	 	Age When	 	 	 	Age When	 	 
	Allowance	 	 	 	Allowance	 	 	 	Allowance	 	 
	Begins	 	Factor	 	Begins	 	Factor	 	Begins	 	Factor
	45

46

47

48

49

50

51
	 	40%

43%

46%

49%

52%

55%

58%
	 	52

53

54

55

56

57

58
	 	61%

64%

67%

70%

73%

76%

79%
	 	59

60

61

62

63

64

65
	 	82%

85%

88%

91%

94%

97%

100%  

(Interpolation is made to the nearest month.)

6

 

Early Retirement (if you were hired on or after January 1, 2008):

If you leave your employer prior to age 65, after having become fully 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.

For employees hired on or after January 1, 2008, payment may begin as early as age 55, 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.

Example: A member terminates employment at age 61 after 26 years of benefit service (rather than
at age 65 after 30 years), and his High-5 Average Salary over such a period is $32,000. His annual
retirement allowance commencing at age 65 would be:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Years of	 	 	 	High-5	 	 	 	Regular
	 	 	 	 	Benefit	 	 	 	Average	 	 	 	Annual
	 	 	 	 	Service	 	 	 	Salary	 	 	 	Allowance
	1.5%
	 	X
	 	26 yrs (=39%)
	 	X
	 	$32,000
	 	=
	 	$12,480

If, on the other hand, the member elected to have his retirement allowance commence immediately,
the allowance payable at age 65 would be reduced as follows:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Early
Retirement	 	 	 	Regular Annual
	Annual Allowance	 	 	 	Factor	 	 	 	Allowance Payable
	Payable at 65	 	 	 	(Age 61)	 	 	 	Immediately (Age 59)
	$12,480
	 	X
	 	76%
	 	X
	 	$9,484

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

	 	 	 	 	 	 	 
	Age When Allowance	 	 	 	Age When Allowance	 	 
	Begins	 	Factor	 	Begins	 	Factor
	55
	 	50%
	 	60
	 	70%
	56
	 	54%
	 	61
	 	76%
	57
	 	58%
	 	62
	 	82%
	58
	 	62%
	 	63
	 	88%
	59
	 	66%
	 	64
	 	94%
	 
	 	 	 	65
	 	100%  

(Interpolation is made to the nearest month.)

7

 

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. Please note that, 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.
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.

8

 

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 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 $9,300, then in addition to such allowance, the member
would receive a Retirement Adjustment Payment as follows:

	 	 	 	 	 	 	 
	Regular	 	 	 	 	 	Retirement
	Annual	 	 	 	 	 	Adjustment
	Allowance	 	 	 	 	 	Payment
	$9,300
	 	÷                 12      =
	 	$775 (per month) X 3 =
	 	$2,325

Note: For purposes of determining your Retirement Adjustment Payment, service on or after
January 1, 2008 will not be taken into account.

9

 

DEATH BENEFIT

In Active Service:

If a 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
$12,000. His beneficiary would get:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Last 12 Months	 	 	 	Lump Sum
	 	 	 	 	Salary	 	 	 	Death Benefit
	250%

	 	X
	 	$	12,000	 	 	=
	 	$	30,000	 

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 (if you were hired prior to January 1, 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.

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 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.

10

 

In Retirement (if you were hired on or after January 1, 2008):

The regular form of all retirement benefits (normal, early or disability) is guaranteed for the
life of the retiree but not less than 120 monthly installments. If a retiree dies before 120
monthly installments have been paid, his beneficiary would be entitled to the commuted value of
such unpaid installments paid in a lump sum. Either the member or beneficiary may elect to have
this benefit paid in the form of installments.

For example, if a retiree with a monthly allowance of $500 should die after receiving payments for
20 months, the commuted value of the 100 remaining monthly installments (120 minus 20) will be paid
to his beneficiary. Commuted value is the present amount that would be sufficient, taking into
account interest earned, to pay a series of future payments. Therefore, the amount of this death
benefit would be something less than 100 times the $500 monthly allowance because these payments
would have been paid to the retiree in the future over 100 months.

NOTE: If a retiree should die before his allowance payments start (as in the case of an early
retiree or normal retiree who has deferred payment), the death benefit would be equal to the
commuted value of 120 monthly retirement allowance installments, which would have been payable had
his allowance commenced on the first day of the month in which he died.

11

 

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 revised retirement allowance during your life with some other benefit payable upon
your death, subject to certain limitations and approval of the Pentegra DB Plan.
	 
	5 – 	 	 A single lump sum settlement in lieu of any monthly allowance and death benefit. If you
were hired prior to January 1, 2008, this Option may be elected if you retire after reaching
age 45 (age 55 if you were hired on or after January 1, 2008) or if you are an early retiree
and defer commencement of your benefit until age 45 or 55, whichever applies. The election of
this Option requires written consent of your spouse, if any.
	 
	6 – 	 	 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 45 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 had he elected Option 3 above. This benefit may
be paid in the form of a lump sum or in installments of equivalent value

12

 

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.

13

 

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, then your previous vesting service will be reinstated, and if your break in
service was not longer than 12 consecutive months, then 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, and 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.

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.

14

 

LEAVES OF ABSENCE

There are three types of approved leaves of absence which may be granted on a uniform basis by your
employer during which your Plan membership continues.

Type 1 – Non-military leave for up to one year during which all contributions continue.
Both vesting and benefit service continue to accrue during this leave.

Type 2 – Non-military leave 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.

Military Leave of Absence – Qualified military service leave as provided under Section
414(u) of the Internal Revenue Code. Upon reemployment such leave will constitute service with
your employer for purposes of determining vesting, eligibility and benefit accruals.

Any benefit for which you are otherwise eligible (subject to any restrictions under Disability
Retirement) may become payable during a Type 1 leave. However, no benefit, other than the refund
of your contributions, if any, is payable on account of your disability or death incurred during a
Type 2 leave. However, if you are eligible for early retirement and die during such leave, your
beneficiary will receive the retirement death benefit described previously which would have been
payable if you had retired on the first day of the month in which your death occurred.

15

 

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 $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.
	 
	 	•	 	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 approval and any requirements
it may impose.

16

 

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. 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.

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.

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).

17

 

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:

	 	•	 	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 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).

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 members, retirees and
beneficiaries. No one, including your employer, 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.
If your claim for a pension 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 prescribed in
Section 414(p) of the Code, after you have complied with the remedies prescribed in the Pentegra DB
Plan’s QDRO Procedures and the 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 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).

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

18

 

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.

19

 

OTHER PLAN INFORMATION

Employer:

Federal Home Loan Bank of Pittsburgh

601 Grant Street

Pittsburgh, PA 15219

Telephone Number: 412-288-3498

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.

20

 

PENTEGRA RETIREMENT SERVICES

Our difference is your advantage

	 	 	 
	 

	 	Pentegra Retirement Services
	 

	 	108 Corporate Park Drive
	 

	 	White Plains, NY 10604
	 

	 	(800) 872-3473
	 

	 	www.pentegra.com

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