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Summary Plan Description
 
 
Pentegra Defined Benefit Plan
for Financial Institutions
 
 
as adopted by:
Federal Home Loan Bank of Des Moines
 
January 1, 2011

 

 

Important Notice
 
 
This booklet contains a summary of your plan rights and benefits under the Federal Home Loan Bank of Des Moines Plan.  If you have difficulty understanding any part of this booklet, contact your Human Resources Officer at his/her office: 515-281-1000.
 
 
Aviso Importante
 
Este folleto contiene un resumen de los derechos y beneficios bajo el Plan de Federal Home Loan Bank of Des Moines.  Si tiene dificultad para entender cualquier parte de este folleto, comuniquese con el Oficial De Recursos Humanos en su oficina: 515-281-1000.

 

 

 
 
 
 
 
 
 
 
 
 
 
 
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 the Federal Home Loan Bank of Des Moines 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
	3
	 

	General
	3
	 

	Normal Retirement
	3
	 

	Late Retirement
	4
	 

	Early Retirement for Employees Hired Prior to January 1, 2004
	4
	 

	Early Retirement for Employees Hired on or After January 1, 2004
	5
	 

	Disability Retirement
	6
	 

	Retirement Adjustment Payment
	7
	 

	Post-Retirement Increments
	7
	 

	Post-Retirement Increments upon attainment of Early Retirement:
	8
	 

	Upon attainment of Early Retirement for Employees hired prior to January 1, 2004
	8
	 

	Upon attainment of Early Retirement for Employees hired on or after January 1, 2004
	9
	 

	Death Benefit
	10
	 

	Death Benefit in Active Service
	10
	 

	Death Benefit in Retirement
	10
	 

	Optional Forms of Retirement Benefit
	11
	 

	Direct Rollovers
	12
	 

	Paying for Your Benefits
	12
	 

	Your Personal Annual Statement
	12
	 

	Reinstatement of Membership and Service
	13
	 

	Leaves of Absence
	14
	 

	Limitations on Benefits
	15
	 

	Insurance of Benefits
	15
	 

	Disputed Claims Procedure
	16
	 

	Qualified Domestic Relations Orders (QDROs)
	16
	 

	Statement of ERISA Rights
	16
	 

	Other Plan Information
	18
	 

 

 

 

 
 
 
ELIGIBILITY
 
 
You must become a Member when eligible and will be enrolled by your 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 your employer's waiting period, if any.  Your employer's current waiting period for new employees is:
    
One year of service and attainment of age 21
 
If you are expected to complete 1,000 hours of service in the 12 consecutive months following your enrollment date, you will be enrolled as an active Member and, as such, will be entitled to all the benefits described in this Summary.  If you are not expected to complete 1,000 hours of service in this 12 consecutive month period, you 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, you will be active or inactive depending on whether or not you complete 1,000 hours of service in each calendar year.
 
In counting hours, you will be credited with an hour of service for every hour for which 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.
 
NOTE:
 
		
	•    
	Regardless of the above, you will not be eligible for membership while you are in a class of employees which your 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.)

 
		
	•    
	Employees hired on or after January 1, 2011 are not eligible for membership in the Plan.  

 
 
 

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
10 Years
	 
+
+
	 
Membership Service
20 Years
	 
=
=
	 
Benefit Service
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 total taxable compensation as reported on your Internal Revenue Service Form W-2 (exclusive of any compensation deferred from a prior year).  Salary 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. 
 
For the 2011 calendar year, only Salary earned up to $245,000 can be considered in determining your accrued benefit under this Plan.
 
NOTE:
 
		
	•    
	Effective January 1, 2009, any payments made under a long-term incentive compensation plan shall be excluded from the definition of Salary.

 
 
 
 
    

2

 

VESTING
 
 
"Vested" means that you have a nonforfeitable right to a retirement benefit which you will not lose if you terminate your employment.  You will become vested in accordance with the following schedule:
		
	 
Completed Years
of Employment
	 
Vested
Percentage

	Less than 5
5 or more
	0
100%

 
You are automatically 100% fully vested upon reaching age 65, regardless of the number of years of employment you have completed. 
 
If you terminate employment after becoming fully vested, you are entitled to receive a retirement benefit (see the “Retirement Benefits” section).  If, for example, you are 100% vested upon termination of employment, you would be entitled to a retirement allowance at age 65 equal to 100% of the allowance accrued to your termination date.  If you are not vested at termination, you will not be entitled to any retirement benefit.
 
NOTE:
 
		
	•    
	See Reinstatement of Membership and Service explained later.

 
 
 
 
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 70, 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, 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:
 
								
	2.25
	%
	X
	Years of
Benefit
Service
	X
	High-3
Average
Salary
	=
	Regular
Annual
Allowance

 

3

 

Example:  You had 30 years of vesting and Benefit Service at termination of employment and your average annual Salary for the three (3) consecutive years of highest Salary during Benefit Service ("High-3 Average Salary") was $40,000.  Your annual retirement allowance would be determined as follows:
 
								
	 
	 
	Years of Benefit Service
	 
	High-3 Average Salary
	 
	Regular Annual Allowance

	2.25
	%
	X
	30 yrs. (=67.5%)
	X
	$40,000
	=
	$27,000

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

 
 
Early Retirement for Employees Hired Prior to January 1, 2004:
 
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.  Payment may be commenced 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: You terminate employment at age 54 after 12 years of benefit service (rather than at age 65 after 30 years), and your High-3 Average Salary over such a period is $40,000.  Your annual retirement allowance commencing at age 65 would be:
 
												
	 
	 
	Years of Benefit Service
	 
	High-3 Average Salary 
	 
	Regular Annual Allowance Payable at Age 65

	2.25
	%
	X
	12 yrs. (=27%)
	X
	$
	40,000
	 
	=
	$
	10,800
	 

 
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: 
 
					
	Annual Allowance Payable at Age 65
	 
	Early Retirement Factor (Age 54)
	 
	Regular Annual Allowance Payable Immediately (Age 54)

	$10,800
	X
	47%
	=
	$5,076

 

4

 

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 age 60 and 65, 4% for each year between age 55 and 60 and 3% for each year between age 45 and 55.  At age 55 the early retirement factor is 50%. (Interpolation shall be made to the nearest month.)

 
														
	Age When Allowance Begins
	 
	Factor
	 
	Age When Allowance Begins
	 
	Factor
	 
	Age When Allowance 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
	%

 
 
		
	•    
	 For members enrolled prior to January 1, 2004, the benefit you accrued through December 31, 2003 will be subject to the Rule of 70 early retirement reduction factors.  Accordingly, if the total of your age and years of vesting service at termination of employment is at least 70, your early retirement allowance which you accrued prior to January 1, 2004, will be reduced by 1.5% for each year you are under age 65 when your allowance begins.  If your age and years of vesting service at termination of employment are not equal to or greater than 70, then the portion of your benefit which you accrued prior to January 1, 2004 shall be reduced by 3% for each year you are under age 65 when your allowance begins.  The portion of your benefit which you accrue subsequent to December 31, 2003 shall be subject to the early retirement reduction factors illustrated above.

 
 
Early Retirement For Employees Hired On or After January 1, 2004:
 
 
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.  Payment may be commenced 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: You terminate employment at age 61 after 20 years of benefit service your High-3 Average Salary over such a period is $40,000.  Your annual retirement allowance commencing at age 65 would be:
 
												
	 
	 
	Years of Benefit Service
	 
	High-3 Average Salary
	 
	Regular Annual Allowance Payable at Age 65

	2.25
	%
	X
	20 yrs. (=45%)
	X
	$
	40,000
	 
	=
	$
	18,000
	 

 

5

 

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: 
 
					
	Annual Allowance Payable at Age 65
	 
	Early Retirement Factor (Age 61)
	 
	Regular Annual  Allowance Payable Immediately (Age 61)

	$18,000
	X
	76%
	=
	$13,680

 
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 age 60 and 65 and 4% for each year between age 55 and 60. At age 55 the early retirement factor is 50%. (Interpolation shall be made to the nearest month.)

 
 
									
	Age When Allowance Begins
	 
	Factor
	 
	Age When Allowance Begins
	 
	Factor

	55
	 
	50
	%
	 
	60
	 
	70
	%

	56
	 
	54
	%
	 
	61
	 
	76
	%

	57
	 
	58
	%
	 
	62
	 
	82
	%

	58
	 
	62
	%
	 
	3
	 
	88
	%

	59
	 
	66
	%
	 
	64
	 
	94
	%

	 
	 
	 
	 
	65
	 
	100
	%

(Interpolation is made to the nearest month.)
 
 
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.  

6

 

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 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 3.  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 Annual Allowance
	 
	 
	 
	 
	Retirement Adjustment Payment

	$
	9,300
	 
	 
	12
	 
	=
	$775 (per month)   X   3    =
	$
	2,325
	 

 
 
Post-Retirement Increments:
 
Effective June 1, 2004, as a retiree, other than a disability retiree, who is receiving allowance payments you will be entitled to a payment of 2% 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 67, the payment will be 4%, then 6%, then 8%, etc.  Such increasing payments will continue to be made as long as you live.  For example:
												
	Your Age 
	 
	Increment Rate 
	 
	Annual Allowance
	 
	Incremental Payment at Year End 

	66
	 
	2
	%
	 
	$
	9,300
	 
	 
	$
	186
	 

	67
	 
	4
	%
	 
	$
	9,300
	 
	 
	$
	372
	 

	68
	 
	6
	%
	 
	$
	9,300
	 
	 
	$
	558
	 

 
If you terminated prior to June 1, 2004, the Post-Retirement Increment is 1% of your annual retirement allowance at the end of the calendar year in which you attain age 66.  Accordingly, the following year when you are 67, the payment will be 2%, then 3%, then 4%, etc.
 
NOTES:
 
		
	•    
	You always measure your age at the end of the calendar year back to age 65 to determine your applicable rate.

 
		
	•    
	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.

 

7

 

Post-Retirement Increments upon attainment of Early Retirement:
 
FOR EMPLOYEES HIRED PRIOR TO JANUARY 1, 2004:  If you are an active member of the Pentegra DB Plan as adopted by the Federal Home Loan Bank of Des Moines on or after June 1, 2004 and you retire upon the attainment of your early retirement age (age 45) you will receive a 1% Post-Retirement Increment commencing at the end of the calendar year following the later of the calendar year in which you attain age 46 or the calendar year in which you commence receipt of your benefit.   The increment will be increased to 2% for each year following the calendar year in which you attain age 65.  For example, suppose you begin to receive your benefit at age 45, your increment would increase as follows: 
 
												
	Your Age 
	 
	Increment Rate  
	 
	Annual Allowance
	 
	Incremental Payment at Year End 

	46
	 
	1
	%
	 
	$
	9,300
	 
	 
	$
	93
	 

	47
	 
	2
	%
	 
	$
	9,300
	 
	 
	$
	186
	 

	58
	 
	13
	%
	 
	$
	9,300
	 
	 
	$
	1,209
	 

	59
	 
	14
	%
	 
	$
	9,300
	 
	 
	$
	1,302
	 

	66
	 
	22
	%
	 
	$
	9,300
	 
	 
	$
	2,046
	 

	67
	 
	24
	%
	 
	$
	9,300
	 
	 
	$
	2,232
	 

 
Suppose you begin to receive your benefit at age 50, your increment would increase as follows: 
 
												
	Your Age 
	 
	Increment Rate  
	 
	Annual Allowance
	 
	Incremental Payment at Year End 

	51
	 
	1
	%
	 
	$
	9,300
	 
	 
	$
	93
	 

	52
	 
	2
	%
	 
	$
	9,300
	 
	 
	$
	186
	 

	63
	 
	13
	%
	 
	$
	9,300
	 
	 
	$
	1,209
	 

	66
	 
	17
	%
	 
	$
	9,300
	 
	 
	$
	1,581
	 

	68
	 
	21
	%
	 
	$
	9,300
	 
	 
	$
	1,953
	 

 
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

 

 
 
 
 
Post-Retirement Increments upon attainment of Early Retirement:
 
FOR EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2004:  If you are an active member of the Pentegra DB Plan as adopted by the Federal Home Loan Bank of Des Moines on or after June 1, 2004 and you retire upon the attainment of your early retirement age (age 55) you will receive a 1% Post-Retirement Increment commencing at the end of the calendar year following the later of the calendar year in which you attain age 56 or the calendar year in which you commence receipt of your benefit.   The increment will be increased to 2% for each year following the calendar year in which you attain age 65.  For example, suppose you begin to receive your benefit at age 55, your increment would increase as follows: 
 
												
	Your Age 
	 
	Increment Rate  
	 
	Annual Allowance
	 
	Incremental Payment at Year End 

	56
	 
	1
	%
	 
	$
	9,300
	 
	 
	$
	93
	 

	57
	 
	2
	%
	 
	$
	9,300
	 
	 
	$
	186
	 

	65
	 
	10
	%
	 
	$
	9,300
	 
	 
	$
	930
	 

	67
	 
	14
	%
	 
	$
	9,300
	 
	 
	$
	1,302
	 

	69
	 
	28
	%
	 
	$
	9,300
	 
	 
	$
	2,604
	 

 
Suppose you begin to receive your benefit at age 60, your increment would increase as follows: 
 
												
	Your Age 
	 
	Increment Rate  
	 
	Annual Allowance
	 
	Incremental Payment at Year End 

	61
	 
	1
	%
	 
	$
	9,300
	 
	 
	$
	93
	 

	62
	 
	2
	%
	 
	$
	9,300
	 
	 
	$
	186
	 

	66
	 
	7
	%
	 
	$
	9,300
	 
	 
	$
	651
	 

	70
	 
	15
	%
	 
	$
	9,300
	 
	 
	$
	1,395
	 

 
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.

 
 
 
 
 
 
 
    

9

 

DEATH BENEFIT
 
 
In Active Service:
 
If you are vested and die while in active service, your beneficiary would be entitled to a lump sum death benefit equal to 100% of your 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 your own contributions, if any, with interest.
 
Example:  You die after 15 years of Benefit Service and your last 12 months' Salary is $32,000.  Your beneficiary would get:
						
	 
	 
	 
Last 12 Months
Salary
	 
	 
Lump Sum
Death Benefit

	250
	%
	X
	$32,000
	=
	$80,000

 
Either you or your beneficiary may elect to have your 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 you die after becoming eligible for early retirement, your beneficiary would receive the higher of (i) the active service death benefit described above, or (ii) the retirement death benefit described below (as if you had retired on the first day of the month in which you 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 8) in lieu of the regular form.
 
Example:  You die two (2) years after retirement and your regular annual retirement allowance was $10,000.  Your death benefit is illustrated below:
 
										
	Annual Retirement Allowance
	 
	 
	 
	Initial Death Benefit At Retirement
	 
	Allowance Payments For 2 Years
	 
	Lump Sum 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.
 
NOTES:
 
		
	•    
	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.

 
		
	•    
	 Where death occurs prior to a Member's benefit commencement, in no event shall the death benefit be less than the amount payable under the lump sum option (refer to Page 11).

 
 
 

10

 

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 75% to your contingent annuitant if he or she survives you.
 
4       A joint and survivor allowance which would continue at the rate of 50% to your contingent annuitant if he or she survives you.
 
5       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.
 
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 45, 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.  Please note that benefits accrued on or after January 1, 2004 shall not be available in the form of a single lump sum.
 
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 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. Please note that benefits accrued on or after January 1, 2004 shall not be available in the form of a single lump sum.
 
NOTES:
 
		
	•    
	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 4 above.  This benefit may be paid in the form of a lump sum or in installments of equivalent value.

 
		
	•    
	Effective January 1, 2004, you may not take the portion of your benefit which you accrued on or after January 1, 2004 in the form of a single lump sum settlement or a partial lump sum settlement. The single lump sum settlement and the partial lump sum settlement options are not available to members hired on or after January 1, 2004. 

 
		
	•    
	Where death occurs prior to a member's benefit commencement, in no event shall the death benefit be less than the amount that would have been payable if your employer provided a lump sum payment option and you elected to receive your accrued benefit in the form of a lump sum.

 
 

11

 

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 willing 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.
 
 
 
 
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 vested in a retirement benefit, the refund will be in lieu of all other benefits.  If you terminate after becoming fully 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 PERSONAL ANNUAL STATEMENT
(Keeping You Informed)
 
Your accumulated contributions will be shown on your Personal Annual Statement (see below).
 
Every year the Pentegra DB Plan prepares a Personal Annual Statement for each Member.  This statement shows as of each January 1st your periods of accrued Vesting Service 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 month of March.
 
 

12

 

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

13

 

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 during which all contributions continue.  Both Vesting Service 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 to be made.  In addition, Vesting Service and Benefit Service continue to accrue.  To qualify for benefits under Type 1-A, 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.
 
					
	Type of Leave
	Duration
	Contributions
	Vesting
Service
	Benefit
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

 
 
 

14

 

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.  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, 2010 and 2011, actuarially reduced for benefits commencing before age 62 and increased for benefits commencing after age 65.  If you have less than 10 years of vesting service or are under age 65 when you retire, or if your employer has two (2) plans in effect, your 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 and 2010 limitation years is $245,000.  After 2011, the compensation dollar limit may be adjusted by the IRS.

 
		
	•    
	If an employer should withdraw from the Pentegra DB Plan 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.  

 
		
	•    
	Amounts payable by the Pentegra DB 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.

 
		
	•    
	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.

    
 
 
    
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 PBGCs 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 PBGCs pension insurance program is available through the PBGCs website on the Internet at http://www.pbgc.gov.

15

 

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 Committees 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 Plans Regulations, to constitute a QDRO under the Internal Revenue Code.
 
To obtain copies of the Pentegra DB Plans 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 Administrators address and telephone number).
 
 
 
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:
            
X    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.
          
X    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.
   
X    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.          
         
 X   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.
      

16

 

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 Administrators 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 Plans 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 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.
 
 

17

 

OTHER PLAN INFORMATION
 
 
Employer:
 
Federal Home Loan Bank of Des Moines
801 Walnut Street, Ste 200
Skywalk Level
Des Moines, IA 50309-3501
 
Telephone Number:  515-281-1000 
 
 
Plan Sponsor:
 
The 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. 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                  

18WebFilings | EDGAR view

 

 
 
 
 
 
 
 
 
Summary Plan Description
 
 
Pentegra Defined Contribution Plan
for Financial Institutions
 
 
as adopted by:
Federal Home Loan Bank of Des Moines
 
January 1, 2011
 
 
 
 
 

 

 

Important Notice
 
This booklet contains a summary of your plan rights and benefits under the Federal Home Loan Bank of Des Moines.  If you have difficulty understanding any part of this booklet, contact your Human Resources Officer at his/her office: 515-281-1000.  
 
 
 
Aviso Importante
 
Este folleto contiene un resumen de los derechos y beneficios bajo el Plan de Federal Home Loan Bank of Des Moines.  Si tiene dificultad para entender cualquier parte de este folleto, comuniquese con el Oficial De Recursos Humanos en su oficina: 515-281-1000. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 
 
 
 
Dear Member:
We are pleased to present your Summary Plan Description.  This Summary is designed to help you understand and appreciate the savings plan provided by the Federal Home Loan Bank of Des Moines through the Pentegra Defined Contribution Plan for Financial Institutions (formerly known as the Financial Institutions Thrift Plan) (the "Plan").
The Plan is a tax-exempt, trusteed savings plan which was created in 1970.  It is administered by a professional staff under the direction of a Board of Directors (the "Board") comprised of officers of the Federal Home Loan Banks and participating financial institutions as well as the Plan's President.
The Plan provides an opportunity for you to save and invest on a regular, long-term basis.  All contributions to the Plan (a defined contribution type plan) are paid to the Trustee to be invested for the benefit of all members.  An individual account is maintained for each Member.  Under certain conditions, a Member may make withdrawals or take loans from their account based on its market value.
The Plan offers federal income tax advantages.  You do not pay taxes on employer contributions, pre-tax 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 immediately eligible for membership in the Plan as of your date of hire.  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.
 
PLAN SALARY
Plan Salary is defined as your basic salary rate reflecting changes occurring during the year. 
 
In addition, any pre-tax contributions that you make are included in Plan Salary.  Please refer to the "Plan Salary" section of this Summary.
 
PLAN CONTRIBUTIONS
 
Employee - You may elect to make a pre-tax and/or after-tax contribution of 1% to 100% (in 1% increments) of Plan Salary.  You may also elect all or a portion of your employee contributions to be designated as Roth elective deferrals.  Unless stated otherwise, Roth elective deferrals will be treated as elective deferrals for all purposes under the Plan.  If you are at least age 50, you may elect to make catch-up contributions ($5,500 for 2011, indexed).
 
Employer - Your employer will make a contribution based on the amount you contribute, expressed as the greater of (A) or (B) as follows:
 
(A) An amount equal to 100% of your contribution.  This percentage rate applies to the first 6% of your Plan Salary. 
(B)  The lesser of $75 per month or 2% of your Plan Salary.
 
In addition, your employer may, in its sole discretion, make an employer supplemental contribution to the Plan.  You will be eligible to receive an employer supplemental contribution if you were hired on or after January 1, 2011 and are employed on the last day of the plan year for which such contribution is made.
 
VESTING
You will be 100% vested in any matching and/or employer supplemental contributions immediately upon enrollment in the Plan.  You are always 100% vested in any contributions you make to the Plan, including Roth elective deferrals.  In other words, you will not give up any units based on your own contributions when you terminate employment.
 
LOANS
You may take a loan from your account and pay your account back with interest.  Please refer to the “Borrowing From Your Account” section of this Summary to determine how you may take a loan from your account.
 
NORMAL RETIREMENT AGE
Your 65th birthday.
 
WITHDRAWALS
While you are working, you may withdraw all or part of your vested account balance subject to certain limitations.  You may also make withdrawals from your account after termination of employment.
 
Please refer to the "Making Withdrawals From Your Account" section of this Summary to determine if there are any restrictions on employer contributions on account of a withdrawal.
 
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
	3
	 

	Plan Salary
	3
	 

	Investing Your Account
	4
	 

	Investment of Contributions
	4
	 

	Valuation of Accounts
	4
	 

	Reporting to Members
	4
	 

	Vesting
	5
	 

	Making Withdrawals from Your Account
	6
	 

	While Employed
	6
	 

	Upon Termination of Employment
	8
	 

	Upon Disability
	8
	 

	Upon Death
	8
	 

	Borrowing from Your Account
	9
	 

	Loans
	9
	 

	Plan Limitations
	10
	 

	Leave of Absence
	11
	 

	Other Information
	12
	 

	Top Heavy Information
	12
	 

	Benefit Claims Procedure
	12
	 

	Qualified Domestic Relations Orders (QDRO's)
	13
	 

	Plan Expenses
	13
	 

	Statement of ERISA Rights
	14
	 

	Plan Information
	15
	 

 

 

 

 
DETERMINING YOUR ELIGIBILITY
Employee Eligibility
You will be immediately eligible for membership in the Plan as of your date of hire.  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. 
 
After your completed enrollment form is received by the Plan Board, you will be enrolled in the Plan.  Your participation will continue until the earlier of (a) your termination of employment and payment to you of your entire account or (b) your death.
Reenrollment
If you terminate employment and are subsequently reemployed by the same or another participating employer, you will be eligible for immediate reenrollment.

1

 

MAKING CONTRIBUTIONS TO THE PLAN
Plan Contributions
 
Employee - You may elect to make a pre-tax and/or after-tax contribution of 1% to 100% (in 1% increments) of Plan Salary (see the "Plan Salary" section of this Summary).  You may also elect all or a portion of your employee contributions to be designated as Roth elective deferrals. Unless stated otherwise, Roth elective deferrals will be treated as elective deferrals for all purposes under the Plan.
                                                                                                                                              
You may change the rate at which you are contributing one time in any reporting period, including Roth deferrals.  You may also suspend your contributions one time in any reporting period, but suspended contributions may not subsequently be made up.
 
Employer - Your employer will make a contribution based on the amount you contribute expressed as the greater of (A) or (B) as follows:
 
(A) Your employer will contribute an amount equal to 100% of your contribution.  This percentage rate applies to the first 6% of your Plan Salary (see the "Plan Salary" section of this Summary). 
 
			
	Illustration

	Employee Contribution Rate
	 
	Employer Contribution Rate

	1%
	 
	1.00%

	2%
	 
	2.00%

	3%
	 
	3.00%

	4%
	 
	4.00%

	5%
	 
	5.00%

	6-100%
	 
	6.00%

    
(B)  The lesser of $75 per month or 2% of your Plan Salary.
 
In addition, your employer may, in its sole discretion, make an employer supplemental contribution to the Plan.  You will be eligible to receive an employer supplemental contribution if you were hired on or after January 1, 2011 and are employed on the last day of the plan year for which such contribution is made.
 
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.  If you are eligible to make catch-up contributions, you may designate such catch-up contributions as Roth elective deferrals.
 
The maximum catch-up contribution for 2011 is $5,500 (as indexed in the future).  The amount, if any, of your elective deferrals which will be characterized as catch-up contributions will be determined at the end of the Plan Year based upon the statutory limits and plan limits in effect for the Plan Year.

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 2011.  At the end of the Plan Year, you will have contributed $18,750 to the Plan.  Because this amount exceeds the statutory limit on elective deferrals ($16,500 in 2011), the excess ($2,250) will be treated as a catch-up contribution.

2

 

MAKING CONTRIBUTIONS TO THE PLAN
CONTINUED
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 2011 ($75,000 x 15%).  Because your contributions do not exceed either the Plan's maximum contribution percentage or the elective deferral limitation ($16,500 in 2011) 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 $120,000 in 2011, you earned total compensation of $110,000 in 2010 (making you a Highly-Compensated Employee for 2011), and you contributed $16,500 to the Plan in 2011.  Because your $16,500 contribution does not exceed either the Plan's maximum contribution percentage or the elective deferral limit ($16,500 in 2011), 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 2011.  In this scenario, $5,500 of your ADP refund would automatically be recharacterized as a catch-up contribution.
 
Allocation of Contributions
 
Your employer has established a Regular Account, 401(k) Account and Roth Elective Deferral Account for you.  All of your contributions and all employer contributions will be allocated to these accounts.  The total value of these accounts, including the value of your Rollover Account (see below), represents your interest in the Plan.
 
Employee - All of your contributions will be allocated to your 401(k) Account, except contributions that you designate as Roth Elective Deferrals.  If you make Roth Elective Deferrals, a separate account will be established to account for such contributions.  
 
Employer - If you allocate a contribution of at least 2% to your 401(k) Account, all employer contributions will be allocated to your Regular Account.  If you do not allocate any of your contributions to your 401(k) Account, employer contributions of the lesser of $75 per month or 2% of your Plan Salary (see “Plan Salary” section of this Summary) will be allocated to your 401(k) Account.  The balance of employer contributions will be allocated to your Regular Account.
 
IRS Nondiscrimination Rules
 
If you are a Highly Compensated Employee, a portion of your contributions and/or employer contributions made on your behalf, if any, may have to be returned to you in order to comply with special Internal Revenue Service ("IRS") nondiscrimination rules (see the "Plan Limitations" section of this Summary for other limitations).  In general, a Highly Compensated Employee is an employee who:
(a)    was a 5% owner at any time during 2011 or 2010, or
(b)    received annual compensation in excess of $110,000 for 2010.
 
Rollovers
You may make a rollover contribution of an eligible rollover distribution from any other IRS qualified retirement plan or an individual retirement account ("IRA").  These rollover funds will be maintained in a separate source in which you will have a nonforfeitable vested interest.  Please note that you may roll over money to this Plan prior to satisfying the Plan's eligibility requirements.  However, this rollover will not constitute active membership in the Plan.
 
Plan Salary
 
Plan Salary is defined as your basic salary rate reflecting changes occurring during the year.
 
In addition, any pre-tax contributions that you make as well as pre-tax contributions to a Section 125 cafeteria plan and, unless the employer elects otherwise, Qualified Transportation Fringe benefits as defined under Section 132(f) of the Internal Revenue Code, are included in Plan Salary.
 
Your Plan Salary for any year may not exceed a specified dollar amount as determined by the IRS each year.  This limit is $245,000 for 2011, and is subject to adjustment in accordance with IRS Regulations.

3

 

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 1-866-633-4015 and pressing 1.
Any changes which are received by Stock Market Closing (usually 4 p.m. Eastern Time) will be processed at the business day's closing price with the exception of any transfers into the International Fund for which there will be a 24-hour delay.  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 are 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 Short Term Investment 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 Short Term Investment 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 one of the Target Retirement Funds.  The specific Target Retirement Fund selected as your default investment vehicle will be the series with the year that coincides with or next follows the year in which you reach age 65.
Valuation of Accounts
The Plan uses a unit system for valuing each investment fund.  Under this system, each participant's share in any investment fund is represented by units.  The unit value is determined as of the close of business each regular business day (daily valuation).  The total dollar value of a participant's share in any investment fund as of any valuation date is determined by multiplying the number of units to the participant's credit by the unit value of the fund on that date.  The sum of the values of the funds you select represents the total value of your Plan account.
NOTE:  If for some reason (such as shut-down of financial markets) the underlying portfolio of any investment fund cannot be valued, the valuation date for such investment fund will be the next day on which the underlying portfolios can be valued.
Reporting to Members
As soon as practicable after the end of each calendar quarter, the Plan will send you a quarterly statement.  However, you may choose not to receive paper statements and view your statement solely by logging into your account via the web.  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.

4

 

VESTING
Vesting
 
Vesting is the process under which you earn a non-forfeitable right to the units in your account.  You are always 100% vested in any contributions you make to the Plan, including Roth elective deferrals.  In other words, you will not give up any units based on your own contributions when you terminate employment.
 
Your employer has also provided that you are immediately 100% vested in any matching and/or employer supplemental contributions credited to your account.
 
 

5

 

MAKING WITHDRAWALS FROM YOUR ACCOUNT
While Employed
 
You may make a total or partial withdrawal of the vested portion of your account by filing the appropriate form with the Plan.  A withdrawal is based on the unit values on the valuation date on which a properly completed withdrawal form is received and processed by the Plan.  (See the "Valuation of Accounts" section of this Summary).
Under current law, an excise tax of 10% is generally imposed on the taxable portion of withdrawals occurring prior to your reaching age 591⁄2.  There are certain exceptions to the 10% excise tax.  For example, the 10% excise tax will not apply to withdrawals made on account of separation from service on or after the date you have reached age 55, death or disability.
 
A.    From the Regular Account:
 
Not more than one voluntary withdrawal may be made from your Regular Account in a calendar year unless it is limited to your own contributions, if any, made prior to January 1, 1987 ("pre 1987 contributions") without earnings.  When you make a withdrawal, you may continue making contributions to the Plan.
 
When you make a withdrawal, you may continue making contributions to the Plan.  However, employer contributions on your behalf will be suspended in accordance with the following:
				
	 
	Type of Withdrawal
	 
	Suspension Period

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

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

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

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

6

 

B.    From the 401(k) Account:
 
Not more than one withdrawal may be made from your 401(k) Account in a calendar year.
 
As required by IRS Regulations, a withdrawal from your 401(k) Account prior to age 591⁄2 or termination of employment can only be made on account of hardship. The existence of an immediate and heavy financial need, and the lack of any other available financial resources to meet this need, must be demonstrated for a hardship withdrawal. The following situations will be considered to constitute an immediate and heavy financial need:
 
1) Medical Expenses - Medical expenses (other than amounts paid by insurance) incurred by the member as well as the member's spouse or dependents (other than amounts paid by insurance).
 
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.
 
You will be required to receive a distribution of the remaining available vested balance, if any, of your Regular Account and your Rollover Account, if any, prior to making a hardship withdrawal from your 401(k) Account. In no event may the maximum amount of a hardship withdrawal from your 401(k) Account exceed the value of your 401(k) Account as of December 31, 1988 plus the amount of any 401(k) contributions which you make to the Plan on or after January 1, 1989 reduced by the amount of any hardship withdrawals which you make from your 401(k) Account on or after January 1, 1989. No partial withdrawal of less than $1,000 will be permitted unless it is for either (a) the amount necessary to satisfy your hardship or (b) the total vested balance of your 401(k) Account.
 
If you have designated all or a portion of your elective deferrals to be Roth elective deferrals, then such deferrals may be withdrawn from your Roth Elective Deferral Account. The same rules and restrictions that apply to withdrawals from your 401(k) Account or described above will apply to withdrawals from your Roth Elective Deferral Account. Earnings associated with designated Roth contributions will become taxable upon distribution, if such distribution is made within the 5-tax-year period beginning with the first tax year for which the participant made a designated Roth contribution to the Plan.
 
C.    From the Rollover Account:
 
Not more than one withdrawal may be made from your Rollover Account in a calendar year. No partial withdrawal of less than $1,000 will be permitted unless it is for the total balance of your Rollover Account.
 
NOTE: In general, employer contributions credited on your behalf will not be available for inservice 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.
 
 
 
 
 
 
 

7

 

Upon Termination of Employment
 
You may leave your account with the Plan and defer commencement of receipt of your vested balance until April 1 of the calendar year following the later of (i) the calendar year in which you reach age 701⁄2, or (ii) the calendar year in which you retire (unless you are a 5% owner during the year in which you reach age 701⁄2) except to the extent that your vested account balance as of the date of your termination is less than $500, in which case your interest in the Plan will be cashed
out and payment sent to you.
 
Please note that if you leave your account with the Plan and your vested balance is less than $20,000, your account will be assessed an annual administrative fee in the amount of $24.00. If your vested account balance is equal to or exceeds $20,000, no annual administrative fee will be assessed to your account. You may make withdrawals from your account(s) at any time after you terminate employment. You may continue to change the investment instructions with respect to your remaining account balance and make withdrawals as provided above. (See the "Investment of Contributions" section of this Summary).
 
If your total vested account equals or exceeds $500, you may elect, in lieu of a lump sum payment, to be paid in annual installments with the right to take in a lump sum the vested balance of your account at any time during such payment period. If the actuarial determination of your life expectancy is less than the period you elect, the maximum period over which you can receive annual installments will be the next lower payment period.
 
Upon Disability
 
If you are disabled in accordance with the definition of disability under the Plan, you will be entitled to the same withdrawal rights as if you had terminated your employment.
 
You are disabled under the Plan if you are eligible to receive (i) disability insurance benefits under Title II of the Federal Social Security Act or (ii) disability benefits under any other IRS qualified employee benefits plan or long-term disability plan of your employer.
 
Upon Death
 
If you are entitled to a benefit under the plan at the time of your death, your entire account will be payable to your beneficiary. If you are married at the time of your death, your spouse will be the beneficiary of your death benefit (unless your spouse consents in writing to the designation of a different beneficiary).
 
Your beneficiary can elect from among the benefit payment forms available under the Plan, which include a lump sum distribution, installment payments and life expectancy distributions. Payments to your beneficiary must satisfy the minimum distribution requirements of the Internal Revenue Code in terms of the commencement date and amounts.
 
Non-spouse beneficiaries who inherit plan assets may roll over their interest into an IRA established by the beneficiary. This allows for the continued tax deferral of accumulation while mandatory distributions are taken over the beneficiary's life expectancy.
 
Notwithstanding the above, if your account balance is less than $500, the payment will be made to your beneficiary in the form of a lump sum distribution.
 
 

8

 

BORROWING FROM YOUR ACCOUNT
Loans
You may borrow from your Regular Account, 401(k) Account, Roth Elective Deferral Account and Rollover Account.  You may borrow any amount between $1,000 and $50,000 (reduced by your highest outstanding loan balance(s) from the Plan during the preceding 12 months).  In no event may you borrow more than 50% of the vested balance of your account.  You are limited to one new loan per calendar year.
You may borrow only once in each calendar year from your Regular Account, 401(k) Account or Roth Elective Deferral Account and once each calendar year from your Rollover Account.  Each loan must be for at least $1,000.  Your 401(k) Account will first be used for the loan unless you specifically request otherwise.  In any event, whichever account you borrow from first, such account must be exhausted before you may borrow any amount from the other account.  A loan from your Rollover Account, if you have one, will be considered a separate loan.  The amount of your loan will first be deducted from the taxable portion of your account and then from the after-tax portion, if any.
The amount of your loan will be deducted on the valuation date (see the "Valuation of Accounts" section of this Summary) on which the Plan office receives and processes your properly executed Loan Application, Promissory Note and Disclosure Statement.  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.

9

 

PLAN LIMITATIONS
Plan Limitations
 
Internal Revenue Service requirements impose certain limitations on the amount of contributions that may be made to this and other qualified plans.  In general, the annual "contributions" made to a defined contribution plan such as this Plan, in respect of any Member, may not exceed the lesser of (a) 100% of the Member's total compensation or (b) a specific dollar amount, as determined by the IRS each year.  The dollar limit is $49,000 for 2011 and is subject to adjustment in accordance with IRS Regulations.
For this purpose, "contributions" include employer contributions and Member contributions.  The combined annual Member contributions allocated to a Member's 401(k) Account and, if applicable, Roth Elective Deferral Account may not exceed a specific dollar amount, as determined by the IRS each year.  This limit is $16,500 in 2011, 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.
 

10

 

LEAVE OF ABSENCE
Leave of Absence
 
There are four types of approved leaves of absence which may be granted on a uniform basis by your employer while you are a Plan Member.
Type 1  Non-military leave granted to a Plan Member for up to one year.  During this leave, any supplemental contributions or allocations of forfeitures will continue to be made and Vesting Service will continue to accrue.
Type 2  Non-military leave granted to a Plan Member for up to one year during which all contributions are discontinued.  However, during this leave, Vesting Service continues to accrue. 
Type 3  Military leave to a Plan Member during which all contributions are discontinued.  However, during this leave, Vesting Service continues to accrue.  In addition, the Member must return to the service of his employer.
Type 4  Military leave granted to a Plan Member who is subject to qualified military service pursuant to an involuntary military call-up in the Reserves of the U.S. Armed Services.  During this leave, contributions or allocations of forfeitures will continue to be made.  In addition, Vesting Service will continue to accrue and any loan repayments may be suspended.  To qualify for benefits under Type 4, a Member must return to the service of his employer within 90 days of his discharge from military service.
 
The following Table will assist you in understanding the Plan's Leave of Absence provisions as described above.
					
	Type of Leave
	Duration
	Contributions
	Loans
	Vesting Service

	Non-Military     Leave: 1
	Up to one year
	Will continue to be made (supplemental only)
	No effect
	Will continue to accrue

	Non-Military    Leave: 2
	Up to one year
	Will be discontinued
	No effect
	Will continue to accrue

	Military Leave: 3
	Can vary; must return to Employer
	Will be discontinued
	No effect
	Will continue to accrue

	Military Leave: 4
	Can vary; must return to Employer within 90 days of discharge
	Will continue to be made
	Repayments may be suspended
	Will continue to accrue

 
 

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 $160,000 per year (indexed for cost-of-living adjustments), 5% owners of the Employer, and 1% owners of the Employer earning more than $160,000 per year.  If your employer's plan is top heavy for a particular Plan Year, you may be entitled to a minimum employer contribution equal to the lesser of 3% of your Plan Salary or the greatest percentage contributed by the employer for any key employee.  This minimum contribution would be offset by the regular contribution made by your employer (See the "Plan Contributions" section of this Summary).
 
In order to receive the minimum contribution for any Plan Year, you must be employed on the last day of the Plan Year (December 31).  If your employer also provides a defined benefit or another defined contribution plan, your minimum benefit may be provided under such plan.
 
Benefit Claims Procedure
 
Benefits normally will be paid to Members and Beneficiaries without the necessity of formal claims. You or your Beneficiary(ies), however, may make a request for any Plan benefits to which you believe you may be entitled.  Any such request must be made in writing, and it should be made to the President of the Plan.  The following claims appeal procedure applies to claims [other than claims for benefits due to Disability].
 
Your request for Plan benefits will be considered a claim for Plan benefits, and it will be subject to a full and fair review.  If your claim for such benefits under the Plan is wholly or partially denied, the President of the Plan shall furnish you or your Beneficiary (referred to below as a “claimant”) or your authorized representative with a written or electronic notice of the denial within a reasonable period of time [generally, ninety (90) days after the President of the Plan receives the claim and furnishes written notice of the extension to the claimant or his authorized representative before the initial ninety (90) day period ends], 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 claimant or his authorized representative may appeal the President's decision denying the claim within sixty (60) days after the claimant or his authorized representative receives the President's notice denying the claim.  The claimant or his authorized representative may submit to the Board of Directors of the Plan written comments, documents, records and other information relating to the claim.  The claimant or his authorized representative shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim.  For these purposes, a document, record or other information is “relevant” to the claim if it:
		
	•    
	was relied upon the President in making its decision on the claim,

		
	•    
	was submitted, considered or generated in the course of the President's making his decision on the claim without regard to whether the President relied upon it in making his decision, or

		
	•    
	complies with administrative processes and safeguards which are designed to ensure and to verify that decisions on claims are made in accordance with governing Plan documents, whose provisions are applied consistently with respect to similarly-situated claimants.  

 
The Board of Director's review of the claim and of its denial of the claim shall take into account all comments, documents, records and other information submitted by the claimant or his authorized representative relating to the claim, without regard to whether these materials were submitted or considered by the President in his initial decision on the claim.
 
 

12

 

OTHER INFORMATION 
The Board of Director's decision on the appeal of a denied claim shall be made within a reasonable period of time [generally sixty (60) days after the Board of Directors receives the claim and furnishes written notice of the extension to the claimant or his authorized representative before the initial sixty (60) day period ends indicating the special circumstances requiring extension of time and the date by which the Board of Director's expects to render its decision on the claim]. The Board of Director's decision will be final and will furnish the claimant or his authorized representative with written or electronic notice of its decision on appeal.  In the case of a decision on appeal upholding the President's initial denial of the claim, the Board of Director'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).

 
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).
 
Plan Expenses
 
Your Employer may directly pay some of the expenses associated with administering the Plan.  However, to the extent not paid by your Employer, the following expenses may be assessed to the Trust: compensation for and expenses incurred by the Trustee in performance of its duties under the Trust, expenses incurred by the Board of Directors in the performance of its duties under the Plan (including reasonable compensation for agents and the costs of services rendered in respect of the Plan), and all other proper charges and disbursements of the Trustee or the Board.
 
 
 
 

13

 

MEMBERS RIGHTS
Statement of ERISA Rights
As a participant of the Plan, you are entitled to certain rights and protection under ERISA which provides that all members shall be entitled to:
 
		
	•    
	Examine, without charge, at the Plan Administrator's office or at other specified locations, all plan documents, and copies of all documents filed by the Plan Administrator with the U. S. Department of Labor such as detailed annual reports and plan descriptions.

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

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

 
		
	•    
	You may obtain a statement telling you whether you have a right to receive a pension at Normal Retirement Age and if so, what your benefit would be at Normal Retirement Age under the Plan if you stop working now.  If you do not have a vested benefit, the statement will tell you how many more years you have to work until you have a vested benefit.  This statement will be provided to you in each quarter of the calendar year and will be free of charge.

 
In addition to creating rights for Plan Members, ERISA imposes duties upon the people who are responsible for the operation of the Plan.  The people who operate your Plan, called "fiduciaries", have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries.  No one may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA.  If your claim for a benefit is denied in whole or in part, you will receive a written explanation of the reason for the denial.  As already explained, you also have the right to have your claim reconsidered.
Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request materials from the Plan Administrator and do not receive them within 30 days, you may file suit in a federal court.  In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive them, unless such materials were not sent for reasons beyond the Administrator's control.  If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court.
In addition, if you disagree with the Plan Administrator's decision (or lack thereof) concerning the qualified status of a domestic relations order subsequent to the 18 month period described in Section 414(p) of the Code, after you complied with the remedies prescribed by the Plan's QDRO procedures and the Disputed Claims Procedures outlined in the Summary Plan Description, you may file suit in federal court.
If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor or, after you have complied with the Disputed Claims Procedure outlined in this Summary Plan Description, you may file suit in a federal court.  The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay such costs and fees (for example, if it finds your claim is frivolous).
If you have any questions about your Plan, you should contact the Plan Administrator.  If you have any questions about this statement or your rights under ERISA, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington D.C.  20210.
This Statement of ERISA Rights is required by federal law and regulation.
 
 
 

14

 

PLAN INFORMATION
 
Employer:
Federal Home Loan Bank of Des Moines
801 Walnut Street, Ste. 200
Skywalk Level
Des Moines, IA  50309-3501
 
Telephone Number - (515) 281-1000
Plan Sponsor:
The Plan is sponsored by the -
 
Pentegra Defined Contribution Plan for Financial Institutions
108 Corporate Park Drive
White Plains, NY  10604
 
Telephone Number - (914) 694-1300
Pentegra by Phone - (866) 633-4015                                               
Pentegra Online - www.pentegra.com
Plan 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 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:
 
Reliance Trust Company
1100 Abernathy Road
Northpark Building 500, Suite 400
Atlanta, GA 30328
Telephone Number - (404) 266-0663
 
Participating Employers:
 
Upon receipt of a written request for information regarding whether a particular employer is a member of this multiple employer arrangement, we will provide you with a statement as to whether such employer is a Member and, if so, the employer's address.
 

15

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