Document:

WebFilings | EDGAR view

 

EXHIBIT 10.14
 
 
FEDERAL HOME LOAN BANK OF SAN FRANCISCO
DEFERRED COMPENSATION PLAN
 
(Successor Plan to the Original Federal Home Loan Bank of San Francisco
Deferred Compensation Plan)
 
 
 
Amended and Restated Effective January 1, 2009 
 
 

 

TABLE OF CONTENTS
 
					
	INTRODUCTION
	 
	1

	 
	 
	 

	ARTICLE 1. DEFINITIONS
	 
	2

	 
	1.01
	Act
	 
	2

	 
	1.02
	Administrator
	 
	2

	 
	1.03
	Adoption Agreement
	 
	2

	 
	1.04
	Beneficiary
	 
	2

	 
	1.05
	Benefit Account
	 
	2

	 
	1.06
	Board
	 
	2

	 
	1.07
	Cash Balance Plan
	 
	2

	 
	1.08
	Change in Control
	 
	2

	 
	1.09
	Code
	 
	3

	 
	1.10
	Company
	 
	3

	 
	1.11
	Company Contributions
	 
	3

	 
	1.12
	Company Supplemental Cash Balance Benefit
	 
	3

	 
	1.13
	Compensation
	 
	3

	 
	1.14
	Deferral Period
	 
	3

	 
	1.15
	Disability or Disabled
	 
	3

	 
	1.16
	Early Retirement Age
	 
	4

	 
	1.17
	Early Retirement Date
	 
	4

	 
	1.18
	Executive Employees
	 
	4

	 
	1.19
	Normal Retirement Age
	 
	4

	 
	1.20
	Participant
	 
	4

	 
	1.21
	Performance-Based Compensation
	 
	4

	 
	1.22
	Plan
	 
	5

	 
	1.23
	Plan Year
	 
	5

	 
	1.24
	Retirement
	 
	5

	 
	1.25
	Retirement Committee
	 
	5

	 
	1.26
	Savings Plan
	 
	5

	 
	1.27
	Stated Deferral
	 
	5

	 
	1.28
	Termination of Employment
	 
	5

	 
	1.29
	Unforeseeable Emergency
	 
	6

	 
	 
	 
	 
	 

	ARTICLE 2. ELIGIBILITY AND PARTICIPATION
	 
	8

	 
	2.01
	Enrollment Procedures
	 
	8

	 
	2.02
	Enrollment Time Period for Newly Eligible Executive Employee
	 
	8

	 
	2.03
	Annual Enrollment Period for each Plan Year
	 
	8

	 
	2.04
	Failure of Eligibility
	 
	8

	 
	 
	 
	 
	 

	ARTICLE 3. PARTICIPANT COMPENSATION DEFERRAL
	 
	9

	 
	3.01
	Procedure for Deferral
	 
	9

	 
	3.02
	Performance-Based Compensation
	 
	9

	 
	3.03
	Election Choices
	 
	9

 
i

 

					
	 
	3.04
	Election to Defer Irrevocable; Exception
	 
	9

	 
	 
	 
	 
	 

	ARTICLE 4. COMPANY SUPPLEMENTAL CASH BALANCE BENEFITS AND COMPANY CONTRIBUTIONS
	 
	10

	 
	4.01
	Company Supplemental Cash Balance Benefits
	 
	10

	 
	4.02
	Company Contributions
	 
	10

	 
	4.03
	Life Insurance and Annuity
	 
	10

	 
	4.04
	Company Supplemental Cash Balance Benefit Statement
	 
	11

	 
	 
	 
	 
	 

	ARTICLE 5. PARTICIPANT BENEFIT ACCOUNT AND VESTING
	 
	12

	 
	5.01
	Benefit Account
	 
	12

	 
	5.02
	Statement of Account
	 
	12

	 
	5.03
	Vesting of Benefit Account
	 
	12

	 
	 
	 
	 
	 

	ARTICLE 6. PAYMENT OF BENEFITS
	 
	13

	 
	6.01
	Payment of Company Supplemental Cash Balance Benefits
	 
	13

	 
	6.02
	Payment of Stated Deferrals and Company Contributions Related Thereto
	 
	13

	 
	6.03
	Timing of Payments and Installment Payments
	 
	14

	 
	6.04
	Modifications
	 
	14

	 
	6.05
	Special Election for Company Supplemental Cash Balance Benefits
	 
	14

	 
	6.06
	Special Election for Stated Deferrals and Company Contributions Related Thereto
	 
	15

	 
	6.07
	Benefits upon Termination of Employment
	 
	15

	 
	6.08
	Benefits Upon Death from Benefit Account
	 
	15

	 
	6.09
	Benefits Upon Death for Company Supplemental Cash Balance Benefit
	 
	15

	 
	6.10
	Company Supplemental Cash Balance Benefit and Reemployment
	 
	16

	 
	6.11
	Unforeseeable Emergency
	 
	16

	 
	6.12
	Prohibition on Acceleration
	 
	16

	 
	6.13
	Permissible Payment Delays
	 
	17

	 
	6.14
	Company Obligations and Source of Payments
	 
	17

	 
	 
	 
	 
	 

	ARTICLE 7. ADMINISTRATION OF THE PLAN
	 
	18

	 
	7.01
	Retirement Committee
	 
	18

	 
	7.02
	Advisors to the Retirement Committee; Reports to the Board of Directors
	 
	18

	 
	7.03
	Membership of the Retirement Committee
	 
	18

	 
	7.04
	Retirement Committee Procedures
	 
	19

	 
	7.05
	Expenses of the Retirement Committee
	 
	19

	 
	7.06
	Claims for Benefits
	 
	19

	 
	 
	 
	 
	 

	ARTICLE 8. MISCELLANEOUS
	 
	20

	 
	8.01
	Employment Not Guaranteed by Plan
	 
	20

	 
	8.02
	Amendment and Termination
	 
	20

	 
	8.03
	Change in Control
	 
	20

	 
	8.04
	Dissolution or Bankruptcy
	 
	21

	 
	8.05
	Assignment of Benefits
	 
	21

	 
	8.06
	Facility of Payment
	 
	21

	 
	8.07
	Disposition of Unclaimed Payments
	 
	22

	 
	8.08
	Taxes
	 
	22

 
ii

 

					
	 
	8.09
	Independence of Benefits
	 
	22

	 
	8.10
	Governing Law
	 
	22

	 
	8.11
	Form of Communication
	 
	22

	 
	8.12
	Severability
	 
	23

	 
	8.13
	Binding Agreement
	 
	23

	 
	8.14
	Gender; Singular and Plural
	 
	23

	 
	8.15
	Captions
	 
	23

	 
	8.16
	Responsibility and Indemnification of Retirement Committee Members
	 
	23

 
 

 
iii

 

FEDERAL HOME LOAN BANK OF SAN FRANCISCO
DEFERRED COMPENSATION PLAN
 
(Successor Plan to the Original Federal Home Loan Bank of San Francisco
Deferred Compensation Plan)
 
Amended and Restated Effective January 1, 2009
INTRODUCTION
Federal Home Loan Bank of San Francisco, incorporated under the laws of the United States, first established this Federal Home Loan Bank of San Francisco Deferred Compensation Plan, effective as of the first day of January 2005, to provide payments to certain of its key management employees and directors with benefits upon retirement, death, Disability, Termination of Employment, or upon other permitted reasons or dates, for the purpose of promoting in its key management employees and directors the strongest interest in the successful operation of the Company and to induce such persons to remain in the employ of the Company.  This Plan has been amended and restated, effective January 1, 2009.  Between January 1, 2005 and December 31, 2008, the Plan operated in good faith compliance with the guidance issued under Section 409A of the Code.
The Plan is the successor plan to the Original Federal Home Loan Bank of San Francisco Deferred Compensation Plan (the “Prior Plan”).  Effective December 31, 2004, the Prior Plan was frozen and no new benefits shall be earned or vest under it;  provided, however, that any benefits earned and vested under the Prior Plan before January 1, 2005 shall continue to be governed by the terms and conditions of the Prior Plan as in effect on December 31, 2004.  Any benefits earned and vested under the Prior Plan after December 31, 2004 are deemed to have been earned and vested under this Plan, as it may be amended from time to time.
This Plan is intended to meet the requirements of Code Section 409A and the Treasury Regulations issued thereunder.

 
1

 

ARTICLE 1.  DEFINITIONS
1.01Act means the American Jobs Creation Act of 2004, as amended.
1.02Administrator means the Retirement Committee or such other person, company or entity as may be designated from time to time by the Retirement Committee except as otherwise provided herein.
1.03Adoption Agreement shall mean a written agreement between a Participant and the Company, whereby a Participant agrees to defer a portion of his Compensation pursuant to the provisions of the Plan, and the Company agrees to make benefits payments in accordance with the provisions of the Plan.  The Adoption Agreement may include and incorporate a salary reduction or fee deferral request signed by the Participant.
1.04Beneficiary shall mean any person, persons or entities designated by a Participant to receive benefits hereunder upon the death of such Participant.  Each Participant shall file with the Company a designation of Beneficiary and contingent Beneficiary to whom the Participant's interest under the Plan shall be paid in the event of the Participant's death.  The initial designation of Beneficiary shall be made in the Participant's Adoption Agreement.  Such designation may be changed by the Participant at any time and without the consent of any previously designated Beneficiary.  A Beneficiary designation will not become effective unless it is made on the form designated by the Company and it is received by the Company prior to the Participant's death.  In the absence of any effective Beneficiary designation as to any portion of a Participant's interest under the Plan, such amount shall be paid to the Participant's surviving spouse, or if there is none, to the Participant's surviving children and issue of deceased children by right of representation, or if there be none, the Participant's surviving parents and if none, according to the laws of descent and distribution of the State of California.  
1.05Benefit Account shall mean the account(s) maintained on the books of the Company for each Participant pursuant to Section 5.01 hereof.
1.06Board means the Board of Directors of the Company, as constituted from time to time.
1.07Cash Balance Plan shall mean the Federal Home Loan Bank of San Francisco Cash Balance Plan, a qualified pension plan and tax-exempt trust under Sections 401(a) and 501(a) of the Code.
1.08Change in Control means a transaction described in 12 United States Code Section 1446(26), so long as that transaction also qualifies as a change in ownership or effective control or a change in ownership of a substantial portion of assets under Code Section 409A and the regulations promulgated thereunder.

 
2

 

1.09Code means the Internal Revenue Code of 1986, as amended.
1.10Company means the Federal Home Loan Bank of San Francisco.
1.11Company Contributions shall mean the contributions made by the Company pursuant to Section 4.02.
1.12Company Supplemental Cash Balance Benefit shall mean the benefit described in and payable pursuant to Section 4.01.
1.13Compensation shall mean the base salary and other wages, bonuses, commissions, overtime pay, shift premiums, vacation accruals, and other taxable remuneration payable by the Company to an Executive Employee for services rendered to the Company, including fees paid to directors of the Company, for the Plan Year or other period taken into account in making the determination.  Compensation shall not include employee expense reimbursements and allowances, and contributions made by the Company under the Plan, moving expenses, fringe benefits, payments made by the Company for group insurance, hospitalization, disability and like benefits, or contributions made by the Company under or distribution from any other employee benefits plan the Company maintains.  Notwithstanding the foregoing, for purposes of Participant Stated Deferrals under Article 3, Compensation shall include long-term incentive payments; provided, however, that for purposes of Company Supplemental Cash Balance Benefits and Company Contributions under Article 4, Compensation shall not include long-term incentive payments.  Any deferred compensation payments under this Plan as well as any amounts deferred shall not be deemed salary or other remuneration to the Participant eligible for computation of benefits to which he may be entitled under the Cash Balance Plan, the Savings Plan, the Financial Institutions Retirement Fund (as adopted by the Company), the Financial Institutions Thrift Plan (as adopted by the Company) or the Federal Home Loan Bank of San Francisco Benefit Equalization Plan, or any other qualified or nonqualified retirement plan of the Company (except for the Supplemental Executive Retirement Plan) for the benefit of its employees.  
1.14Deferral Period shall mean the period of time during which Compensation is being deferred pursuant to the Participant's Adoption Agreement and Article 3 of the Plan.
1.15Disability or Disabled means that a Participant:
(i)is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a 

 
3

 

continuous period of not less than 12 months; or
(ii)is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under any accident and health plan covering employees of the Participant's employer.  The determination of the existence of a Disability shall be made by the Company in accordance with Code Section 409A.
1.16Early Retirement Age shall mean age 45.
1.17Early Retirement Date shall mean the first day of the month coincident with or next following the date a Participant attains Early Retirement Age.
1.18Executive Employees shall mean (i) all officers of the Company, including corporate and functional officers, (ii) all members of the Board of Directors of the Company and (iii) any other individual who is designated as an Executive Employee by the Retirement Committee or the Board of Directors of the Company in its sole discretion.  A person designated as an Executive Employee shall remain so until such designation is revoked by the Board of Directors of the Company or the Retirement Committee, in its sole discretion.
1.19Normal Retirement Age shall mean age 65.
1.20Participant shall mean an Executive Employee of the Company who has completed an Adoption Agreement and satisfied any and all other requirements set forth in the Plan.
1.21Performance-Based Compensation means Compensation based on services performed over a period of not less than twelve months and which meets the following requirements: (i) the payments of Compensation or the amount of the Compensation is contingent upon satisfaction of pre-established organizational or individual performance criteria; and (ii) the performance criteria are not substantially certain to be met at the time the Executive Employee elects to defer compensation in accordance with Section 3.  Organizational or individual performance criteria are considered pre-established if established in writing not later than ninety (90) days after the commencement of the period of service to which the criteria relates, provided that the outcome is substantially uncertain at the time the criteria are established.  Performance criteria may be subjective but such criteria must be bona fide and relate to the performance of the Participant, a group of employees that includes the Participant or a business unit (which may include the Company) for which the Participant provides services.  The determination 

 
4

 

whether any subjective performance criteria have been satisfied shall not be made by the Participant, by a family member of the Participant or any spouse of any family member of the Participant or any person who is under effective control, or whose Compensation is under the effective control, of the Participant or of any family member of the Participant.  Performance-Based Compensation does not include any amount or portion of any amount that will be paid regardless of performance or which is based on a level of performance that is substantially certain to be met at the time the criteria is established.
1.22Plan shall mean the Deferred Compensation Plan, Federal Home Loan Bank of San Francisco, as amended and restated effective January 1, 2009.
1.23Plan Year shall mean the twelve-month period on which the plan records are kept, which shall begin on January 1 of one year and end on December 31 of the same year.
1.24Retirement shall mean an Executive Employee's Termination of Employment after reaching Early or Normal Retirement Age, or, in the case of a director, the termination of his membership on the Board, irrespective of age.  “Normal Retirement” shall mean Retirement at or after Normal Retirement Age and “Early Retirement” shall mean Retirement at or after Early Retirement Age but before Normal Retirement Age.  (The terms “Normal Retirement” and “Early Retirement” are not relevant to individuals who qualify as an Executive Employee solely because of their status as a member of the Board of Directors of the Company.)
1.25Retirement Committee shall mean the committee appointed pursuant to Article 7 of the Plan.
1.26Savings Plan means the Federal Home Loan Bank of San Francisco Savings Plan, a qualified defined contribution plan and tax-exempt trust under sections 401(a) and 501(a) of the Code.
1.27Stated Deferral shall mean the amount of Compensation the Participant agrees to defer in the Adoption Agreement.
1.28Termination of Employment shall mean the Executive Employee's ceasing to be employed in any capacity by the Company, and in the case of a director, ceasing to be a member of the Company's Board of Directors, as applicable, for any reason whatsoever, voluntary or involuntary, including by reason of death.
Whether a Termination of Employment has occurred is based on whether the facts and circumstances indicate that the Executive Employee and the Company reasonably anticipated that no further services would be performed after a certain date.  A Termination of Employment will not be deemed to have occurred if an Executive 

 
5

 

Employee continues to provide services to the Company as an employee, independent contractor or otherwise, and if the Executive Employee is providing such services at an annual rate that is fifty percent or more of the services rendered, on average, during the immediate preceding 36 months of employment with the Company (or if less, such lesser period); provided, however, that a Termination of Employment will be deemed to have occurred if an Executive Employee's service with the Company is reduced to an annual rate that is less than twenty percent of the services rendered, on average, during the immediately preceding 36 months of employment with the Company (or if less, such lesser period).
In addition to the foregoing, the employment of an Executive Employee shall not be deemed to be terminated while the Executive Employee is on military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Executive Employee's right to reemployment with the Company is provided by either statute or contract.  If the period of leave exceeds six months and the Executive Employee's right to reemployment is not provided by either statute or contract, then the employee is deemed to have a Termination of Employment on the first day immediately following such six-month period.
For the purposes of this Section 1.28 only, the term Company includes Federal Home Loan Bank of San Francisco and its entire controlled group within the meaning of Code Section 414(b) and 414(c), using the 80% standard instead of the 50% standard outlined in Treasury Regulations interpreting Code Section 409A.
1.29Unforeseeable Emergency means a severe financial hardship to the Participant resulting from:
(i)An illness or accident of the Participant, the Participant's spouse, the Participant's Beneficiary or the Participant's dependent (as defined in Section 152 of the Code, without regard to Sections 152(b)(1), (b)(2), and (d)(1)(B) of the Code);
(ii)Loss of the Participant's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance); or
(iii)Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.
A hardship shall not constitute an Unforeseeable Emergency under the Plan to the extent that it is, or may be, relieved by:
(i)Reimbursement or compensation, by insurance or otherwise; or

 
6

 

(ii)Liquidation of the Participant's assets to the extent that the liquidation of such assets would not itself cause severe financial hardship; or
(iii)Cessation of deferrals under the Plan.

 
7

 

ARTICLE 2.  ELIGIBILITY AND PARTICIPATION
2.01Enrollment Procedures  Executive Employees may enroll in the Plan by: (1) entering into an Adoption Agreement with the Company, which shall specify the amount of deferral, the timing of the distributions, the form of the distributions, and type of benefit under this Plan that will be provided for such Executive Employee, and (2) completing such other forms and furnishing such other information as the Company may reasonably require.  Each newly eligible Executive Employee shall be notified by the Administrator, in writing, of his eligibility to participate in the Plan prior to the end of his enrollment period (as described below).
2.02Enrollment Time Period for Newly Eligible Executive Employee  To participate in the Plan during the Plan Year in which an Executive Employee first qualifies as such, he must execute the Adoption Agreement within 30 days after he first becomes an Executive Employee and the Adoption Agreement must become irrevocable (except in the event of an Unforeseeable Emergency) at the end of that 30-day period.  
2.03Annual Enrollment Period for each Plan Year  Except as provided above in Section 2.02, in order for an Executive Employee to participate in the Compensation deferral portion of the Plan each Plan Year, he must execute an Adoption Agreement (or such other documents required by the Company) that becomes irrevocable (except in the event of an Unforeseeable Emergency) no later than the December 31 preceding the January 1 of the Plan Year in which the Adoption Agreement (or such other documents required by the Company) is to be effective.  To defer Performance-Based Compensation, the Executive Employee must execute a Stated Deferral election on the form prescribed by the Company and within the time period described in Section 3.02.
2.04Failure of Eligibility  A Participant shall cease to be a Participant at Termination of Employment or, if earlier, when the Participant ceases to qualify as an Executive Employee (unless the Participant qualifies for the payment of benefits set forth in Article 6).  A person who ceases to be a Participant during a Plan Year will have no further right to defer Compensation during the Deferral Period.
 

 
8

 

ARTICLE 3.  PARTICIPANT COMPENSATION DEFERRAL
3.01Procedure for Deferral  The Executive Employee may make an initial election to defer a portion of his Compensation earned and payable on or after the date of such election and before the commencement of the pay period in which the election becomes effective by executing the Adoption Agreement during the time period described in Sections 2.02 or 2.03, as applicable.  For any deferral of Compensation, the Adoption Agreement must apply only to Compensation earned after the date the election is irrevocable.  The amount deferred shall be subtracted from the Compensation otherwise payable to the Participant during the year of deferral.  Unless otherwise permitted by the Company under Section 3.04 of the Plan, the deferral specified in the Adoption Agreement shall be credited under this Plan, and the Participant's Compensation shall be correspondingly reduced.
3.02Performance-Based Compensation  Any election made by an Executive Employee to defer Performance-Based Compensation must be submitted to the Administrator: (1) in accordance with Sections 2.02 and 2.03 and (2) no later than six months prior to the end of the period in which the services which give rise to the payment of Performance-Based Compensation are performed and in accordance with the Act.
3.03Election Choices  At the time that a Participant elects to defer a portion of his Compensation, the Participant shall select on a form prescribed by the Company one or more mutual funds or other investment choices from a list provided to the Participant by the Company.  The value of the selected investments shall determine the value of the Participant's Benefit Account as of any given date.  The Participant may change his selected investments prospectively at such times and with such frequency as the Company shall prescribe. 
3.04Election to Defer Irrevocable; Exception  Except as otherwise provided herein, a Participant's election to defer Compensation shall be irrevocable except for prospective changes allowed prior to each January 1.  The Administrator, in its sole discretion, upon demonstration by the Participant of Unforeseeable Emergency, will suspend the Participant's election to defer Compensation.  Such suspension shall continue through the end of the Plan Year in which the Participant applies for, and receives, a distribution due to an Unforeseeable Emergency and the Participant must submit a new Adoption Agreement and satisfy any other requirements prescribed by the Company, in its sole discretion, in order to participate again in the Plan.

 
9

 

ARTICLE 4.  COMPANY SUPPLEMENTAL CASH BALANCE BENEFITS 
AND COMPANY CONTRIBUTIONS
4.01Company Supplemental Cash Balance Benefits  The Company shall provide to each Participant a Company Supplemental Cash Balance Benefit in an amount equal to the additional benefit, if any, that would have been payable under the Cash Balance Plan and the Federal Home Loan Bank of San Francisco Benefit Equalization Plan (if any) if the Participant had not reduced his Compensation for that Plan Year by the Stated Deferrals.  This amount shall be decreased by the applicable amount that is payable to the Participant, if any, under Article 4 of the Prior Plan (i.e., the Prior Plan provision regarding the Company Supplemental Pension Benefit under the Cash Balance Plan or the Financial Institutions Retirement Fund) (the “Prior Plan Benefit”).  The Prior Plan Benefit shall be calculated in accordance with Treasury Regulation Section 1.409A-6(a)(3).  The Prior Plan Benefit cannot be calculated in any manner other than the manner set forth in Treasury Regulation Section 1.409A-6(a)(3).  A Participant's Company Supplemental Cash Balance Benefit will vest within the same time periods as a Participant's benefits vest under the Cash Balance Plan.  
4.02Company Contributions  For each Plan Year, the Company shall credit to each Participant's Benefit Account an amount equal to the additional matching contribution the Company would have contributed to the Savings Plan on behalf of the Participant if the Participant had not reduced his Compensation for that Plan Year by the Stated Deferrals.  Notwithstanding the foregoing, no amount shall be credited to a Participant's Account unless consistent with the limitations in Treasury Regulation Section 1.409A-2(a)(9); specifically, any Participant action or in action with respect to any deferrals or contributions under the Savings Plan: (a) shall not result in any given Plan Year in an increase in the amounts deferred for such Participant under all nonqualified deferred compensation plans of the Company in excess of the limitations in Code Section 402(g)(1)(A), (B) or (C) in the Plan Year of such Participant's action or inaction under the Savings Plan and (b) shall not result in any Plan Year in an increase in any matching or contingent Company contributions exceeding 100% of the matching or contingent amounts that would be provided under the Savings Plan absent any Code limitations.
4.03Life Insurance and Annuity  The Company in its sole discretion may apply for and procure as owner and for its own benefit, insurance and annuities on the life of a Participant in such amounts and in such forms as the Company may choose.  The Participant shall have no interest whatsoever in any such policy or policies, but 

 
10

 

at the request of the Company shall submit to medical examinations and shall accurately and truthfully supply such information and execute such documents as may be required by the insurance company or companies to whom the Company has applied for insurance.  Any insurance policy and annuity acquired by or held by the Company in connection with the liabilities assumed by it pursuant to the Plan shall not be deemed to be held under any trust for the benefit of the Participant, the Participant's beneficiary or estate, or to be security for the performance of the obligations of the Company but shall be and remain, a general, unpledged and unrestricted asset of the Company.  
4.04Company Supplemental Cash Balance Benefit Statement  Periodically, the Company may provide to each Participant a statement in such form as the Company deems desirable setting forth the Participant's Company Supplemental Cash Balance Benefit.

 
11

 

ARTICLE 5.  PARTICIPANT BENEFIT ACCOUNT AND VESTING
5.01Benefit Account
(a)The Company shall establish a Benefit Account on its books for each Participant.  A Participant's Benefit Account shall be utilized solely as a device for the measurement and determination of the amounts to be paid to the Participant pursuant to this Plan attributable to the Participant's Stated Deferrals and the Company Contributions related thereto.  A Participant's Benefit Account shall not constitute or be treated as a trust fund of any kind for the benefit of the Participant, the Participant's Beneficiary or estate, or to be security for the performance of obligations of the Company but shall be and remain a general, unpledged and unrestricted asset of the Company.  All benefits payable under this Plan shall be paid as they become due and payable by the Company out of its general assets.  The Company Contributions related to Stated Deferrals will be credited as of the date when a matching contribution otherwise would have been allocated to the Participant's account under the Savings Plan.
(b)Each Benefit Account shall be revalued daily to be credited or debited with investment earnings, gains and losses based upon the performance of the investment funds selected by the Participant from time to time pursuant to Section 3.03.
(c)Each Benefit Account shall be debited as of the date of distribution by the amount of any distribution made from such Benefit Account.
5.02Statement of Account  The Company may provide to each Participant a quarterly statement in such form as the Company deems desirable setting forth the balance in the Participant's Benefit Account. 
5.03Vesting of Benefit Account  All amounts credited to a Participant's Benefit Account shall be one hundred percent (100%) vested at all times.

 
12

 

ARTICLE 6.  PAYMENTS OF BENEFITS
6.01Payment of Company Supplemental Cash Balance Benefits  The Company Supplemental Cash Balance Benefits payable pursuant to Section 4.01 shall be payable in one of the forms allowed under the Cash Balance Plan (i.e., single lump sum, life annuity, or contingent 50% annuitant annuity) and upon Termination of Employment, a set time period after Termination of Employment, including upon becoming Disabled, a set age after Termination of Employment or death.  In the event the Participant is still employed at the time he first becomes Disabled, his payment shall commence once there has been a Termination of Employment.  In the event the Participant elects a specified age as the time of payment but there has not been a Termination of Employment as of that date, his payment shall commence once there has been a Termination of Employment.  At the time of enrollment in the Plan, the Participant must elect the form of payment and the time of payment of Company Supplemental Cash Balance Benefit.  If no election is made, the benefit will be payable in the form of a lump sum benefit at Termination of Employment.  Notwithstanding Section 6.09, if the Participant elects to have the Company Supplemental Cash Balance Benefit payable at death, the Participant may specify the form of the distribution to be paid to his Beneficiary which may only be in a form available under the Cash Balance Plan and shall commence or be paid on the first day of the seventh whole month following the Participant's death.  The Beneficiary may not change the form or time of the payment elected by the Participant.  Notwithstanding the foregoing, distributions of the Company Supplemental Cash Balance Benefit shall commence no later than the April 1 following the end of the calendar year in which a Participant reaches age 701⁄2, or, if later, upon the Participant's Termination of Employment.  Accordingly, if a Participant elects death as the time of payment and the Participant survives the later of: (1) April 1 following the end of the calendar year in which the Participant attains age 70 1⁄2, or (2) April 1 following the end of the calendar year in which the Participant has a Termination of Employment, the Participant's benefit shall be paid upon the later of those two events in the form of a lump sum benefit, unless the Participant timely elects a different form of benefit.  The amount of the benefit shall be determined by the Plan's actuary utilizing the same actuarial factors and assumptions then used by the Cash Balance Plan.
6.02Payment of Stated Deferrals and Company Contributions Related Thereto  The portion of a Participant's Benefit Account attributable to the Stated Deferrals and Company Contributions related thereto shall be paid at the time or times specified in the Participant's Stated Deferral election, except as provided below or in 

 
13

 

Sections 6.07 or 6.08.  Such election may provide for distribution in from one to ten annual installments commencing at Retirement, Disability, Termination of Employment, or on a specific date (including a date that occurs while the Participant is actively employed by the Company).  A Participant may elect up to five different payout schedules.  If no election is made, the benefit will be payable in the form of a lump sum benefit at Termination of Employment.
6.03Timing of Payments and Installment Payments  A distribution of a benefit attributable to the Stated Deferrals and Company Contributions related thereto is available no sooner than one year after the close of the Deferral Period.  All payments made under the Plan shall be made within 90 days after the date elected by the Participant (or within 90 days after the date determined under the Plan, if no timely election is made by the Participant).  The Company, in its sole discretion, determines when during such 90-day period benefit payments will be made or commence.  If the Participant elected installment payments, after the first installment payment future installments shall be paid each year at approximately the same time of year as the first installment payment.  For purposes of the Plan, installment payments shall be treated as a single distribution under Section 409A of the Code.  Benefit Accounts subject to installment payouts shall continue to be adjusted for gains and losses in the same manner as active Benefit Accounts.  
6.04Modifications  A Participant may modify his election made under Section 6.01 or Section 6.02 so long as: (a) the election will not take effect until at least twelve (12) months from the date on which the election is made, (b) if the election is to delay the start of payments on account of Separation from Service or at a specified time, the payment must be deferred for a period of at least five (5) years from the date such payment would otherwise have been made, and (3) if the election is related to a payment to be made at a specified time or pursuant to a fixed schedule, the election must be made at least twelve (12) months prior to the date the first amount was scheduled for payment.  Any election made under this Section 6.04 may only be made on the form prescribed by the Company.
6.05Special Election for Company Supplemental Cash Balance Benefits  Notwithstanding any other provision in the Plan to the contrary, during 2008 a Participant may modify the form of distribution and the distribution date elected (or deemed elected) under Section 6.01, provided that the election is made not later than December 31, 2008.  No election under this Section shall: (1) change the payment date of any distribution otherwise 

 
14

 

scheduled to be paid in 2008 or cause a payment to be paid in 2008, or (2) be permitted after December 31, 2008.
6.06Special Election for Stated Deferrals and Company Contributions Related Thereto  Notwithstanding any other provision in the Plan to the contrary, during 2008 a Participant may modify the form of distribution and the distribution date elected under Section 6.02, provided that the election is made not later than December 31, 2008.  No election under this Section shall: (1) change the payment date of any distribution otherwise scheduled to be paid in 2008 or cause a payment to be paid in 2008, or (2) be permitted after December 31, 2008.
6.07Benefits upon Termination of Employment  In the event of Termination of Employment, whether voluntary or involuntary, prior to a Participant's Early or Normal Retirement Age or death, the Participant shall receive a distribution of the portion of the Participant's Benefit Account attributable to Stated Deferrals and the Company Contributions related thereto as a lump sum payment within 90 days following Termination of Employment. The Company, in its sole discretion, determines when during such 90-day period benefit payments will be made or commence.  
6.08Benefits Upon Death from Benefit Account  In the event of a Participant's death prior to the distribution of his entire Benefit Account, the remaining balance in the Participant's Benefit Account shall be distributed to the Beneficiary or Beneficiaries of the Participant.  The Beneficiary will receive the payment in the form of a lump sum benefit, with the payment being made eighteen months after the death of the Participant.  In order to change the form or the time of the payment, the Beneficiary must make an election within six months after the Participant's death.  If the Beneficiary fails to make a timely election, the Beneficiary will receive the benefit in the form of a lump sum payment at the end of the eighteen month period.  The Beneficiary cannot elect to receive payment of the benefit: (1) past the date that is the April 1 following the end of the calendar year in which the Participant would have attained age 70 1⁄2 or (2) before the end of the eighteen month period.
6.09Benefits Upon Death for Company Supplemental Cash Balance Benefit  In the event a Participant dies prior to the distribution of his Company Supplemental Cash Balance Benefit, if any, and the Participant did not elect death as the time of payment of his Cash Supplemental Benefit, an automatic lump sum that is the actuarial equivalent of the Participant's vested balance attributable to the Participant's Company Supplemental Cash Balance Benefit shall be distributed to the Beneficiary or Beneficiaries of the Participant.  Payment of the lump sum benefit shall be made eighteen months after the death of the Participant.  In order to change the form or the time of the 

 
15

 

payment, the Beneficiary must make an election within six months after the Participant's death to receive the distribution in a form that is available under the Cash Balance Plan.  If the Beneficiary fails to make a timely election, the Beneficiary will receive the benefit in the form of a lump sum payment at the end of the eighteen month period.  The Beneficiary cannot elect to receive: (1) payment past the date that is the April 1 following the end of the calendar year in which the Participant would have attained age 70 1⁄2, (2) benefits in a form not allowed under the Cash Balance Plan, or (3) benefits before the end of the eighteen month period.  If the Participant dies after his Company Supplemental Cash Balance Benefit payments have commenced, the only death benefit payable in respect of said Participant shall be the amount, if any, payable under that form of benefit which the Participant has elected for the payment of his Company Supplemental Cash Balance Benefit.
6.10Company Supplemental Cash Balance Benefit and Reemployment.  If a Participant experiences a Termination of Employment and once again becomes employed by the Company and becomes a Participant under the Plan, the Company Supplemental Cash Balance Benefit he or she earned prior to such Termination of Employment (a Participant's “Previous Benefit”), if any, shall continue to be paid according to the schedule elected by the Participant.  Any Company Supplemental Cash Balance Benefit accrued after the date that an employee again becomes a Participant shall be reduced by an amount equal to the actuarial equivalence of the Participant's Previous Benefit.  For the purposes of this Section, actuarial equivalence shall be determined by the Plan's actuary utilizing for that purpose the same actuarial factors and assumptions then used by the Cash Balance Plan or Financial Institutions Retirement Fund, as applicable.  The benefit payment under this Section 6.10 will be paid in the form of a lump sum benefit at Termination of Employment.
6.11Unforeseeable Emergency  The Administrator, in its sole discretion, upon finding that the Participant has suffered an Unforeseeable Emergency, may distribute to such Participant all or a portion of the balance in the Participant's Benefit Account.  Distributions because of an Unforeseeable Emergency will be limited to the amount reasonably necessary to satisfy the emergency need (which may include amounts necessary to pay any Federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution).
6.12Prohibition on Acceleration  Notwithstanding any other provision of the Plan to the contrary, no distribution shall be made from the Plan that would constitute an impermissible acceleration of payment as defined in Section 409A(a)(3) of the Code and the regulations promulgated thereunder.

 
16

 

6.13Permissible Payment Delays  The Administrator may delay any payment to a Participant upon the Administrator's reasonable anticipation of one or more of the following: (i) making such payment would jeopardize the Company's ability to continue as a going concern and the payment is made to the Participant during the first taxable year in which making the payment would not have such effect on the Company; or (ii) making such payment would violate Federal securities laws or other applicable law.
6.14Company Obligations and Source of Payments  All benefits payable under this Plan shall be paid as they become due and payable by the Company out of its general assets.  Nothing contained in this Plan shall be deemed to create a trust of any kind for the benefit of the Participants or create any fiduciary relationship between the Company or the Retirement Committee and the Participants or their Beneficiaries.  To the extent that any person acquires a right to receive benefits under this Plan, such rights shall be no greater than the right of any unsecured general creditor of the Company.  Notwithstanding the foregoing, the Company may, at its discretion, establish a bookkeeping reserve or grantor trust (as such term is used in Sections 671 through 677 of the Code) to reflect or to aid in meeting its obligations under the Plan with respect to any Participant or prospective Participant or Beneficiary.  No Participant or Beneficiary shall have any right, title, or interest whatever in or to any investments which the Company may make or any specific assets which the Company may reserve to aid it in meeting its obligations under the Plan.

 
17

 

ARTICLE 7.  ADMINISTRATION OF THE PLAN
7.01Retirement Committee  The Plan shall be administered by the Retirement Committee, as appointed by the Board.  Subject to those powers which the Board has reserved as described in Article 7 below, the Retirement Committee has general authority over, and responsibility for, the administration of the Plan.  The Retirement Committee shall have full power, authority and discretion to interpret and construe the Plan, to make all determinations considered necessary or advisable for the administration of the Plan and the calculation of the amount of benefits payable thereunder, and to review claims for benefits under the Plan.  The Retirement Committee's interpretations and constructions of the Plan and its decisions or actions thereunder shall be binding and conclusive on all persons for all purposes.
7.02Advisors to the Retirement Committee; Reports to the Board of Directors  If the Retirement Committee deems it advisable, it shall arrange for the engagement of an actuary, legal counsel and certified public accountants (who may be counsel or accountants for the Company), and other consultants, and make use of agents and clerical or other personnel, for purposes of the Plan.  The Retirement Committee may rely upon the written opinions of the actuary, counsel and accountants, and upon any information supplied by the Cash Balance Plan, the Benefit Equalization Plan or the Savings Plan; and delegate to any agent or to any subcommittee or Retirement Committee member its authority to perform any act hereunder, including without limitation those matters involving the exercise of discretion; provided, however, that such delegation shall be subject to revocation at any time at the discretion of the Retirement Committee.  The Retirement Committee shall report to the Board, or to a committee designated by the Board, at such intervals as shall be specified by the Board or such designated committee, with regard to the matters for which it is responsible under the Plan.
7.03Membership of the Retirement Committee  The Retirement Committee shall consist of at least three individuals, each of whom shall be appointed by the Board.  The Board may remove any member of the Retirement Committee at any time and for any reason with or without advance written notice.  Vacancies in the Retirement Committee arising by resignation, death, removal or otherwise shall be filled by the Board.  Any Retirement Committee member may resign by delivering his written resignation to the Retirement Committee no later than 15 days before the effective date of the resignation.  No Retirement Committee member shall be entitled to act on or decide any matters relating solely to such Retirement Committee member as a Participant or any of his rights or 

 
18

 

benefits under the Plan.  The Retirement Committee members shall not receive any special compensation for serving in such capacity but shall be reimbursed for any reasonable expenses actually incurred in connection therewith.  No bond or other security is required of the Retirement Committee or any member thereof in any jurisdiction.
7.04Retirement Committee Procedures  The Retirement Committee shall elect or designate one of its own members as Chairman, establish its own procedures and the time and place for its meetings and provide for the keeping of minutes of all meetings.  A majority of the members of the Retirement Committee shall constitute a quorum for the transaction of business by the Retirement Committee.  Any action of the Retirement Committee may be taken upon the affirmative vote of a majority of the members at a meeting or, at the direction of its Chairman, without a meeting by mail or telephone, provided that all of the Retirement Committee members are informed in writing of the matter to be voted upon.  The Retirement Committee may establish procedures pursuant to which a Retirement Committee member may elect not to participate in a Retirement Committee proceeding in which such member has an interest.
7.05Expenses of the Retirement Committee  All expenses incurred by the Retirement Committee in its administration of the Plan shall be paid by the Company.
7.06Claims for Benefits  All claims for benefits under the Plan shall be submitted in writing to the Retirement Committee.  Written notice of the decision on each claim shall be furnished with reasonable promptness to the Participant or his Beneficiary (the “claimant”).  The claimant may request a review by the Retirement Committee of any decision denying the claim in whole or in part.  Such request shall be made in writing and filed with the Retirement Committee within 30 days of such denial.  A request for review shall contain all additional information which the claimant wishes the Retirement Committee to consider.  The Retirement Committee may hold any hearing or conduct any independent investigation which it deems desirable to render its decision and the decision on review shall be made as soon as feasible after the Retirement Committee's receipt of the request for review.  Written notice of the decision on review shall be furnished to the claimant.  For all purposes under the Plan, such decisions on claims (where no review is requested) and decisions on review (where review is requested) shall be final, binding, and conclusive on all interested persons as to all matters relating to the Plan.

 
19

 

ARTICLE 8.  MISCELLANEOUS
8.01Employment Not Guaranteed by Plan  Neither the Plan nor any action taken under the Plan shall be construed as giving a Participant the right to be retained as an Executive Employee or as an employee of the Company for any period or abridging the Company's right to dismiss at pleasure any Participant from its employ.
8.02Amendment and Termination  The Board, at any time, may amend, suspend or terminate the Plan in whole or in part without the consent of the Retirement Committee, any Participant, Beneficiary, or other person, provided that no amendment, suspension or termination shall retroactively impair or otherwise adversely affect the rights of any Participant, Beneficiary, or other person to benefits under the Plan which have accrued prior to the date of such action, as determined by the Committee in its sole discretion.
The Retirement Committee may adopt any amendment or take any other action which may be necessary or appropriate to facilitate the administration, management and interpretation of the Plan or to conform the Plan thereto, provided that any such amendment or action does not have a material effect on the then currently estimated cost to the Company of maintaining the Plan.
Upon termination of the Plan, no further benefits shall accrue under the Plan to any Participant.  In the event of a termination of the Plan, the Company may determine that the vested interests of the Participants will be distributed.  If such a determination is made, the Participants' vested interests will be distributed within the period beginning twelve months after the date the Plan was terminated and ending twenty-four months after the date the Plan was terminated, or pursuant to Section 6 of the Plan, if earlier.  Any liquidation and termination of the Plan will not occur proximate to a downturn in the financial health of the Company, as required by Code Section 409A.  If the Plan is terminated and distributions are made within the time period described above, the Company shall:  (1) terminate all arrangements for Participants that are required to be aggregated with the Plan under Code Section 409A and (2) not adopt a new plan for Participants that would be aggregated with the Plan under Code Section 409A at any time within three years following the date of termination of the Plan.
8.03Change in Control  The Company may terminate the Plan within 30 days prior to or twelve months following a Change in Control and distribute the vested interests of the Participants within the twelve-month period following a termination of the Plan.  If the Plan is terminated and all of the Participant' vested interests in the Plan are distributed in connection with a Change in Control, all plans that are aggregated as a single plan with this Plan 

 
20

 

under Code Section 409A must be terminated and distributions under such plans must be made within the same 12 month period.  Solely for the purposes of this Section 8.03, where the change in control event results from an asset purchase transaction, the company with the discretion to liquidate and terminate the Plan is the company that is primarily liable immediately after the transaction to pay any deferred compensation under this Plan.
8.04Dissolution or Bankruptcy  The Plan shall automatically terminate upon a corporate dissolution or bankruptcy, provided that Participants' vested interests are distributed and included in the gross income of the Participants by the latest of (or, if earlier, the taxable year in which such vested interest is actually or constructively received): (i) the Plan Year in which the Plan terminates, (ii) the first Plan Year in which payment of the vested interests is administratively practicable, or (iii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture.  A corporate dissolution or bankruptcy will have occurred only if transaction qualifies as both a liquidation or reorganization under 12 United States Code Section 1446(26) and as a dissolution or bankruptcy under Section 409A of the Code and the regulation promulgated thereunder.
8.05Assignment of Benefits  No Participant or Beneficiary shall have the right to assign, transfer, hypothecate, encumber or anticipate his interest in any benefits under this Plan, nor shall the benefits under this Plan be subject to any legal process to levy upon or attach the benefits for payment of any claim against the Participant or his Beneficiary.  In the event of any attempted assignment or transfer, the Company shall have no further liability hereunder.  The foregoing notwithstanding, in accordance with procedures that are established by the Retirement Committee (including procedures requiring prompt notification of the affected Participant and each alternate payee of the receipt by the Plan or the Company of a domestic relations order and its procedures for determining the qualified status of such order) and subject to Code Section 409A, a judicial order for purposes of enforcing family support obligations or pertaining to domestic relations (which orders do not alter the amount, timing or form of benefit other than to have it commence at the earliest permissible date) shall be honored by the Plan and the Company if the Retirement Committee or its designee determines that such order would constitute a qualified domestic relations order (within the meaning of Code Section 414(p)(1)(B)) if the Plan were a qualified retirement plan under Code Section 401(a).
8.06Facility of Payment  If the Company finds that any person to whom any amount is or was payable under the Plan is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any 

 
21

 

payment, or any part thereof, due to such person or his estate (unless a prior claim has been made by a duly appointed legal representative), may, if the Company is so inclined, be paid to such person's spouse, child, or other relative, an institution maintaining or having custody of such person, or any other person deemed by the Company to be a proper recipient on behalf of such person otherwise entitled to payment.  Any such payment shall be in complete discharge of the liability of the Plan and the Company.
8.07Disposition of Unclaimed Payments  Each Participant must file with the Company from time to time in writing his post office address and each change of post office address.  The communication, statement or notice addressed to a Participant at the last post office address filed with the Company, or if no address is filed with the Company, then at the last post office address as shown on the Company records, will be binding upon Participant and his Beneficiaries for all purposes of the Plan.  The Company shall not be required to search for or locate a Participant or his Beneficiary.
8.08Taxes  The Company shall deduct from all payments or deferrals made hereunder all applicable federal or state taxes required by law to be withheld from such payments.
8.09Independence of Benefits  The benefits payable under this Plan shall be independent of, and in addition to, any other benefits provided by the Company and shall not be deemed salary or other remuneration by the Company for the purpose of computing benefits to which any Participant may be entitled under any other plan or arrangement of the Company.
8.10Governing Law  This Plan is intended to constitute an unfunded Plan for a select group of employees and rights thereunder shall be construed according to the laws of the State of California, without giving effect to the choice of law principles thereof, and the laws of the United States, as applicable.  The Plan shall be construed in a manner that is consistent and compliant with Section 409A of the Code, and any regulations promulgated thereunder.  Any provision that is noncompliant with Section 409A of the Code is void or deemed amended to comply with Section 409A of the Code.  The Company does not guarantee or warrant the tax consequences of the Plan, and the Participants shall in all cases be liable for any taxes due with respect to the Plan.
8.11Form of Communication  Any election, application, claim, notice, designation, request, instruction or other communication required or permitted to be made by a Participant, Beneficiary or other person to the Company or the Retirement Committee shall be made in writing and in such form as the Company shall prescribe.  

 
22

 

Such communication shall be mailed by first class mail, postage pre-paid, or delivered to such location as the Company shall specify and shall be deemed to have been given and delivered only upon receipt thereof at such location.
8.12Severability  The invalidity of any portion of this Plan shall not invalidate the remainder thereof, and said remainder shall continue in full force and effect.
8.13Binding Agreement  The Plan shall be binding upon and inure to the benefit of the Company and its successors and assigns and the Participants and their Beneficiaries.  The Plan shall also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of the Company, but nothing in the Plan shall preclude the Company from merging or consolidating into or with, or transferring all or substantially all of its assets to, another organization which assumes the Plan and all obligations of the Company thereunder.
Except as provided in Sections 8.02, 8.03, and 8.04, the Company agrees that it will make appropriate provision for the preservation of the Participants' rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation, reorganization, or transfer of assets.  Upon such a merger, consolidation, reorganization, or transfer of assets and assumption of the Plan obligations of the Company, the term “Company” shall refer to such other organization and the Plan shall continue in full force and effect.
8.14Gender; Singular and Plural  As used in the Plan, the masculine gender shall be deemed to refer to the feminine, and the singular person shall be deemed to refer to the plural, wherever appropriate.
8.15Captions  The captions preceding the sections of the Plan have been inserted solely as a matter of convenience and shall not in any manner define or limit the scope or intent of any provisions of the Plan.
8.16Responsibility and Indemnification of Retirement Committee Members  No Retirement Committee member shall be personally liable by reason of any instrument executed by him or on his behalf, or action taken by him, in his capacity as a Retirement Committee member acting in good faith and exercising reasonable care, nor for any mistake of judgment made in good faith.  Retirement Committee members may be entitled to indemnification for certain costs, expenses and liabilities pursuant to the Federal Home Loan Bank of San Francisco Policy Regarding Indemnification of Directors, Officers and Employees Acting in Connection with Certain Employee Benefit Plans, as such Policy may be amended from time to time.

 
23

 

This amended and restated Federal Home Loan Bank of San Francisco Deferred Compensation Plan effective as of January 1, 2009 is executed this 30th day of December 2008.
 
 
				
	 
	 
	FEDERAL HOME LOAN BANK OF 
SAN FRANCISCO

	 
	 
	 
	 

	 
	 
	 
	 

	ATTEST:
	 
	 
	 

	 
	 
	By:
	/S/ DEAN SCHULTZ

	 
	 
	 
	 

	Secretary
	 
	 
	President and Chief Executive Officer

	 
	 
	 
	 

	 
	 
	By:
	/S/ GREGORY P. FONTENOT

	 
	 
	 
	 

	 
	 
	 
	Senior Vice President and Director of Human Resources

 

 
24

 

RESOLUTION OF THE
FEDERAL HOME LOAN BANK OF SAN FRANCISCO
RETIREMENT COMMITTEE
DEFERRED COMPENSATION PLAN
WHEREAS, the Federal Home Loan Bank of San Francisco (the “Bank”) maintains the Federal Home Loan Bank of San Francisco Deferred Compensation Plan, as amended and restated effective January 1, 2009 (the “DCP”); 
WHEREAS, the Bank wishes to amend the DCP to specifically incorporate the plan aggregation rules under Internal Revenue Code (“Code”) Section 409A (which have been set forth in the plan summaries and election forms since 2008), specifically reference the permitted grace periods for the timing of payments under Code Section 409A, revise the savings clause to reflect the additional guidance issued from the IRS and make other technical corrections to the Plan; and
WHEREAS, under the terms of the DCP, the Retirement Committee has the authority to adopt amendments to the DCP provided any such amendments do not have a material affect on the then currently estimated cost to the Bank to maintain the DCP, and the changes described above are necessary and appropriate to facilitate the administration and interpretation of the DCP and do not materially affect the cost of the DCP.
NOW, THEREFORE, BE IT RESOLVED, that the Bank hereby amends the DCP effective November 22, 2010, as follows:
		
	1.    
	Section 1.28 of the DCP is amended by adding the words, “equal to or” immediately before the words “less than twenty percent.”

		
	2.    
	Section 3.02 of the DCP is amended by replacing the language “in accordance with the Act” at the end thereof with the following language:

“provided that the Participant performs services continuously from the later of the beginning of the performance period or the date the performance criteria are established through the date the election to defer such Performance-Based Compensation is made and provided that in no event can such an election be made after the date such Performance-Based Compensation has become readily ascertainable.”
2.    Section 6.04 of the DCP is amended by replacing the phrase “Separation from Service” with the phrase “Termination of Employment.”
3.    Section 6.07 is amended by deleting the phrase “or Normal.”
4.    Section 8.03 of the DCP is amended to delete the last sentence of the section in its entirety.
5.    Section 8.10 of the DCP is amended by replacing the second sentence thereof with language to read as follows:
“The Plan is intended to comply with Code Section 409A.  Notwithstanding any provision to the contrary, the Plan shall be interpreted as necessary to comply with Code Section 409A and any regulations promulgated thereunder.  Any benefit, payment or other right provided by the Plan shall be provided or made in a manner that complies with the applicable requirements of Code Section 409A and any regulations promulgated thereunder.  Any provision of the Plan that cannot be interpreted or applied in a manner consistent with Code Section 409A is deemed amended to comply with Code Section 409A or, if such amendment is not possible, is void.  The Plan specifically incorporates the plan aggregation rules under 

 
Exhibit B

 

Treasury Regulations § 1.409A-1(c)(2) and any payment periods permitted after a payment event or time under Treasury Regulation § 1.409A-3.”    
RESOLVED FURTHER, that the officers of the Bank, jointly and severally, and their delegates, be, and they hereby are, authorized and directed to prepare, execute, certify, and deliver such notices, agreements, amendments, and other documents and instruments, and to take any and all such action and do all other things deemed by any such member or delegate to be necessary or appropriate to give effect to the purpose and intent of the foregoing resolutions.
 
RESOLVED FURTHER, that all actions previously taken by the officers of the Bank (and any persons authorized by any one of them) for and on behalf of the Bank, in connection with the matters described above, are ratified and affirmed.
		
	 
	 

	 
	Adopted by the Federal Home Loan Bank of San Francisco 
Retirement Committee on November 22, 2010

	 
	 

	 
	/S/ GREGORY P. FONTENOT

	 
	Gregory P. Fontenot
Senior Vice President and Director of Human Resources

	 
	 

 

 
2WebFilings | EDGAR view

 

EXHIBIT 10.15
 
 
 
FEDERAL HOME LOAN BANK OF SAN FRANCISCO
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
 
 
Amended and Restated Effective January 1, 2009 
 
 

 

TABLE OF CONTENTS
 
 
					
	ARTICLE 1. INTRODUCTION
	 
	1

	 
	1.1
	Establishment of Plan
	 
	1

	 
	1.2
	Purpose of the Plan
	 
	1

	 
	 
	 
	 
	 

	ARTICLE 2. DEFINITIONS
	 
	2

	 
	2.1
	Definitions
	 
	2

	 
	2.2
	Number and Gender
	 
	6

	 
	 
	 
	 
	 

	ARTICLE 3. PARTICIPATION AND SERVICE
	 
	7

	 
	3.1
	General
	 
	7

	 
	3.2
	Date of Participation
	 
	7

	 
	3.3
	Duration; Rehire
	 
	7

	 
	3.4
	Contribution Credit Service
	 
	7

	 
	3.5
	Vesting Service
	 
	8

	 
	 
	 
	 
	 

	ARTICLE 4. RETIREMENT BENEFITS
	 
	9

	 
	4.1
	Account
	 
	9

	 
	4.2
	Contribution Credits
	 
	9

	 
	4.3
	Annual Indexation Credits
	 
	10

	 
	4.4
	Special Rules For Determining Balance of Accounts and for Crediting Contribution Credits and Annual Indexation Credits
	 
	11

	 
	4.5
	Vesting
	 
	12

	 
	4.6
	Forfeiture
	 
	12

	 
	 
	 
	 
	 

	ARTICLE 5. PAYMENT OF BENEFITS; DEATH BENEFITS
	 
	14

	 
	5.1
	Amount of Benefit
	 
	14

	 
	5.2
	Automatic Form of Benefit Payment
	 
	14

	 
	5.3
	Optional Forms of Benefit Payments
	 
	14

	 
	5.4
	Automatic Time of Benefit Payment
	 
	14

	 
	5.5
	Optional Time of Benefit Payment
	 
	15

	 
	5.6
	Manner and Time of Elections
	 
	15

	 
	5.7
	Death Benefits
	 
	16

	 
	5.8
	Beneficiary Designation
	 
	17

	 
	 
	 
	 
	 

	ARTICLE 6. SOURCE OF PAYMENTS
	 
	18

	 
	 
	 

	ARTICLE 7. ADMINISTRATION
	 
	19

	 
	7.1
	Committee
	 
	19

	 
	7.2
	Procedures for Requesting Benefit Payments
	 
	20

	 
	 
	 
	 
	 

	ARTICLE 8. AMENDMENT AND TERMINATION
	 
	21

	 
	8.1
	Amendment of the Plan
	 
	21

	 
	8.2
	Termination of the Plan
	 
	21

	 
	8.3
	Change in Control
	 
	21

	 
	8.4
	Dissolution or Bankruptcy
	 
	22

	 
	 
	 
	 
	 

i

 

					
	ARTICLE 9. MISCELLANEOUS PROVISIONS
	 
	23

	 
	9.1
	Employment Rights
	 
	23

	 
	9.2
	No Examination or Accounting
	 
	23

	 
	9.3
	Records Conclusive
	 
	23

	 
	9.4
	Severability
	 
	23

	 
	9.5
	Counterparts
	 
	23

	 
	9.6
	Taxes
	 
	23

	 
	9.7
	Binding Effect
	 
	24

	 
	9.8
	Assignment
	 
	24

	 
	9.9
	Incapacity
	 
	25

	 
	9.10
	Unsecured Creditor
	 
	25

	 
	9.11
	Notice
	 
	25

	 
	9.12
	Benefits Not Salary
	 
	25

	 
	9.13
	Captions
	 
	26

	 
	9.14
	Governing Law
	 
	26

	 
	9.15
	Addresses
	 
	26

	 
	 
	 
	 
	 

	FEDERAL HOME LOAN BANK OF SAN FRANCISCO SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN Schedule A
	 
	A-1

	 
	 
	 

	FEDERAL HOME LOAN BANK OF SAN FRANCISCO SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN Schedule B
	 
	B-1

 

ii

 

ARTICLE 1.  INTRODUCTION
		
	1.1    
	Establishment of Plan

Federal Home Loan Bank of San Francisco, incorporated under the laws of the United States, first established the Federal Home Loan Bank of San Francisco Supplemental Executive Retirement Plan effective January 1, 2003, then amended and restated the Plan effective January 1, 2005.  This is an amendment and restatement of the Plan effective January 1, 2009.
		
	1.2    
	Purpose of the Plan

The purpose of this Plan is to provide supplemental retirement benefits for a select group of management or highly compensated employees of the Bank.  Payments under the Plan shall be made from the general assets of the Bank or from the assets of the trust, if any, established as part of the Plan.  It is intended that the Plan remain at all times a nonqualified plan and that the trust, if any, shall constitute a grantor trust under Sections 671 through 679 of the Code.  Until paid, any and all assets of any vehicle used for payment of benefits under this Plan shall remain owned by the Bank, subject to the claims of its general creditors in the event of the Bank's insolvency.
This Plan, as amended and restated, is intended to meet the requirements of Code Section 409A and the Treasury Regulations issued thereunder.

 
1

 

ARTICLE 2.  DEFINITIONS
2.1Definitions
Whenever used in this Plan, the following words and phrases shall have the meanings set forth below unless a different meaning is expressly provided or plainly required by the context:
(a)“Account” means the account established for a Participant pursuant to Section 4.1 of the Plan.
(b)“Actuarial Equivalent” means a benefit having the same value as the benefit for which it is substituted.  The determination of the Actuarial Equivalent of any benefit as provided for under this Plan shall be made based on the factors specified in the definition of Actuarial Equivalent in the Cash Balance Plan.
(c)“Annual Indexation Credit” means the credit to an Account described in Section 4.3.
(d)“Bank” means Federal Home Loan Bank of San Francisco and any successor thereto that agrees to assume the duties and obligations of the Bank hereunder.
(e)“Beneficiary” means the person or entity designated by a Participant or Former Participant pursuant to Section 5.8 to receive any death benefit payable under this Plan.  If no Beneficiary is properly designated at the time of the Participant's or Former Participant's death, or if no person so designated shall have survived the Participant or Former Participant, the Beneficiary shall be the surviving spouse, or if there is no surviving spouse, the Participant's or Former Participant's estate.  A Beneficiary designation will not become effective unless it is made on the form designated by the Bank and it is received by the Bank prior to the Participant's death.  
(f)“Benefit Equalization Plan” means the Federal Home Loan Bank of San Francisco Benefit Equalization Plan, as amended from time to time.
(g)“Board of Directors” means the Board of Directors of the Bank.
(h)“Cash Balance Plan” means the Federal Home Loan Bank of San Francisco Cash Balance Plan, as amended from time to time.
(i)“Cause” means any of the following:
(1)Criminal or other willful misconduct of the Participant or Former Participant that materially violates any laws, regulations or orders of any government agency, including without limitation any laws, regulations or orders applicable to the Bank; or
(2)Deliberate material failures of the Participant or Former Participant to comply with the Bank's 

 
2

 

policies and procedures or with any directive of the Board of Directors. 
(j)“Code” means the Internal Revenue Code of 1986, as amended from time to time.
(k)“Change in Control” means a transaction described in 12 United States Code Section 1446(26), so long as that transaction also qualifies as a change in ownership or effective control or a change in ownership of a substantial portion of assets under Code Section 409A and the regulations promulgated thereunder.
(l)“Committee” means the committee appointed by the Board of Directors in accordance with Section 7.1 of this Plan.
(m)“Compensation” means the base salary and other wages, bonuses, commissions, and other taxable remuneration payable to a Participant by the Bank for a Plan Year or other period taken into account in making the determination.  In applying this definition, Compensation shall also include any salary reduction elected by the Participant under Code Sections 125, 401(k)and 132(f)(4), and any deferrals or contributions made by the Participant under any nonqualified deferred compensation or excess benefit plans maintained by the Bank, including, without limitation, the Deferred Compensation Plan and the Benefit Equalization Plan.  The foregoing notwithstanding, in determining a Participant's Compensation, all long-term incentive payments, reimbursements and expense allowances, moving expenses, fringe benefits, income attributable to group-term life insurance, long-term disability payments, meals and lodging, contributions made by the Bank on behalf of the Participant to, and all distributions from, qualified plans, nonqualified deferred compensation plans, and excess benefit plans (including, without limitation, the Cash Balance Plan, the Savings Plan, the Deferred Compensation Plan and the Benefit Equalization Plan) shall be excluded.
(n)“Contribution Credit” means the credit to an Account described in Section 4.2.
(o)“Contribution Credit Service” means the service described in Section 3.4.
(p)“Deferred Compensation Plan” means the Federal Home Loan Bank of San Francisco Deferred Compensation Plan, as amended from time to time.
(q)“Disability” means that a Participant:
(1)is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or

 
3

 

(2)is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under any accident and health plan covering employees of the Participant's employer.
The determination of the existence of a Disability shall be made by the Bank in accordance with Code Section 409A.
(r)“Final Average Pay” means the highest average annual Compensation of a Participant during any three (3) consecutive calendar years completed during which an individual is a Participant in the period preceding the determination date.  If the Participant received Compensation for fewer than three (3) consecutive complete calendar years while a Participant, Final Average Pay shall be determined taking into account either the Participant's last three (3) completed calendar years as a Participant, or, if fewer than three (3) calendar years have been completed as a Participant, the Participant's entire completed service with the Bank.
(s)“Former Participant” means either:
(1)Any former employee of the Bank who has a vested Account under the Plan; or
(2)Any current employee of the Bank who was a Participant under the Plan irregardless of whether such individual's Account is vested or nonvested.
(t)“Participant” means an employee who becomes a Participant as provided in Article 3.
(u)“Plan” means the Federal Home Loan Bank of San Francisco Supplemental Executive Retirement Plan, as established by this document and as amended from time to time.
(v)“Plan Year” means the calendar year.
(w)“Savings Plan” means the Federal Home Loan Bank of San Francisco Savings Plan, as amended from time to time.
(x)“Termination of Employment” means the Participant (or Former Participant) ceasing to be employed in any capacity by the Bank for any reason whatsoever, voluntary or involuntary, including by reason of death.  Whether a Termination of Employment has occurred is based on whether the facts and circumstances indicate that the Member and the Bank reasonably anticipated that no further services would be performed after a certain date.  A Termination of Employment will not be deemed to have occurred if a Participant (or Former Participant) continues to provide 

 
4

 

services to the Bank as an employee, independent contractor or otherwise, at an annual rate that is fifty percent (50%) or more of the services rendered, on average, during the immediate preceding 36 months with the Bank (or if less, such lesser period); provided, however, that a Termination of Employment will be deemed to have occurred if the Participant's (or Former Participant's) service with the Bank, as an employee, independent contractor or otherwise, is reduced to an annual rate that is less than twenty percent (20%) of the services rendered, on average, during the immediately preceding 36 months with the Bank (or if less, such lesser period).
In addition to the foregoing, the employment of a Participant (or Former Participant) shall not be deemed to be terminated while the Participant (or Former Participant) is on military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six (6) months or, if longer, so long as the Participant's (or Former Participant's) right to reemployment with the Bank is provided by either statute or contract.  If the period of leave exceeds six (6) months and the Participant's (or Former Participant's) right to reemployment is not provided by either statute or contract, then the employee is deemed to have a Termination of Employment on the first day immediately following such six (6) month period.
For the purposes of this definition only, the term Bank includes Federal Home Loan Bank of San Francisco and its entire controlled group within the meaning of Code Section 414(b) and 414(c), using the 80% standard instead of the 50% standard outlined in Treasury Regulations interpreting Code Section 409A.
(y)“Total Retirement Income” means the amount determined under (1) and (2) below projected using the assumptions, and in the manner, set forth in Section 4.4 below, determined as the Actuarial Equivalent of a single life annuity commencing at the later of the Participant's Normal Retirement Date (as defined in the Cash Balance Plan) and the date of Termination of Employment with the Bank.
(1)all benefits accrued by a Participant or Former Participant under the Cash Balance Plan, the Financial Institutions Retirement Fund and this Plan, plus
(2)all benefits contributed by the Bank on behalf of a Participant or Former Participant under the Deferred Compensation Plan and the Benefit Equalization Plan with the exception of any matching contributions contributed by the Bank on behalf of a Participant or Former Participant and any deferrals or contributions made at the direction of the Participant or Former Participant.
(z)“Vesting Service” means the service described in Section 3.5.

 
5

 

2.2    Number and Gender
Except when otherwise indicated by the context, any use of any term in the singular or plural shall also include the opposite number.  As used in the Plan, the masculine gender shall be deemed to refer to the feminine whenever appropriate.

 
6

 

ARTICLE 3.  PARTICIPATION AND SERVICE
		
	3.1    
	General

Participation in the Plan is limited solely to a select group of management or highly compensated employees who hold positions that are designated by the Board of Directors as covered under the Plan.
		
	3.2    
	Date of Participation

An individual shall automatically become a Participant on the later of:
		
	(a)    
	January 1, 2003, or

		
	(b)    
	the date that the individual first begins service in a position that the Board of Directors has designated as covered under the Plan.

		
	3.3    
	Duration; Rehire

(a)Participant.  An employee who becomes a Participant shall continue to be a Participant until the employee has a Termination of Employment with the Bank or until the employee no longer serves in a position which the Board of Directors has designated as covered under the Plan.
(b)Former Participant.  An individual shall continue to be a Former Participant until payment of his or her Account is made in full, begins, is forfeited pursuant to Section 4.6, or unless he or she once again becomes a Participant pursuant to Section 3.3(c).
(c)Rehire.  A former employee who was a Participant in the Plan and is subsequently rehired by the Bank shall once again become a Participant on the date he or she begins service in a position that the Board of Directors has designated as covered under the Plan.  Such individual's Contribution Credit Service and Vesting Service shall be determined in accordance with the provisions of Sections 3.4 and 3.5.
		
	3.4    
	Contribution Credit Service

(a)General.  Except as otherwise provided in this Section, Contribution Credit Service shall include the Participant's aggregate periods of employment (including years and fractions thereof) with the Bank or with an entity covered by the Financial Institutions Retirement Fund on and after January 1, 1996.  Notwithstanding the foregoing, all employment with the Bank necessary to complete six (6) months of Vesting Service as defined in, and required for participation under, the Cash Balance Plan shall be excluded from Contribution Credit Service for purposes of this Plan.

 
7

 

(b)Special Rules for Determining Contribution Credit Service for Purposes of 25 Year Limit.  For purposes of the 25 year limit on Contribution Credits set forth in Section 4.2(b), Contribution Credit Service shall include all service with the Bank including service prior to January 1, 1996; provided, however, that any service with any entity covered by the Financial Institutions Retirement Fund other than the Bank shall not count as Contribution Credit Service for purposes of this Section 3.4(b) and Section 4.2(b); provided further, however, that if a break-in-service with the Bank of one day or greater occurred prior to January 1, 1996, then service with the Bank prior to such break-in-service shall count as Contribution Credit Service only if the Participant was an employee of the Bank on December 31, 1995.  Notwithstanding the foregoing the following service shall not count as Contribution Credit Service for purposes of the 25 year limit under this Plan:  (i) all employment with the Bank necessary to complete six (6) months of Vesting Service as defined in, and required for participation under, the Cash Balance Plan and (ii) all employment necessary to complete six (6) months of Vesting Service as defined in, and required for participation under, the Financial Services Retirement Fund.
		
	3.5    
	Vesting Service

Vesting Service with respect to a particular Contribution Credit and the Annual Indexation Credits associated therewith shall include a Participant's aggregate periods of employment (including years and fractions thereof) with the Bank from the date such Contribution Credit is credited to the Participant's Account.

 
8

 

ARTICLE 4.  RETIREMENT BENEFITS
4.1    Account
(a)The Bank shall establish and maintain an Account on its books for each Participant (and Former Participant) in the Plan.  The balance of a Participant's (or Former Participant's) Account as of any date shall be equal to the sum of the Participant's (or Former Participant's) Contribution Credits and Annual Indexation Credits, if any, as of that date, as adjusted pursuant to Sections 4.4(b) and 4.4(c) below and, if applicable, Sections 4.1(b) and (c).  As of the date payment of benefits is made or commences under this Plan, the Participant's or Former Participant's Account shall be reduced to zero (0), such individual shall cease to be a Participant or Former Participant, and, subject to other applicable provisions of the Plan, benefits shall be paid under the automatic form of benefit payment provided under Section 5.2 or, if applicable, the optional form of benefit payment elected by the Participant or Former Participant under Section 5.3.
(b)Rehired Individuals.  If an individual, in accordance with the provisions of Section 3.3(c), once again becomes a Participant, then such individual's Account shall be determined as follows:  upon the date such individual once again becomes a Participant such individual's Account shall be redetermined (without regard to any distribution previously made or scheduled to be made) and shall be credited only with those amounts which were unvested at the time of the earlier termination and which were not a part of any distribution or scheduled distribution.  Any such unvested amounts shall be subject to the vesting requirements set forth in Section 4.5.
4.2    Contribution Credits
(a)Crediting Accounts.  A Contribution Credit shall be credited to the Account of each Participant as follows:
(1)The Contribution Credit for a Plan Year shall be credited to the Account of each Participant as of the last day of each Plan Year, beginning in 2003.  No Contribution Credit shall be credited to the Account of any Participant for, or with respect to, any year prior to 2003.
(2)A Contribution Credit shall be credited to a Participant who has a Termination of Employment or who ceases to be a Participant but otherwise remains employed by the Bank during the course of a Plan Year solely for that portion of Plan Year during which the individual was a Participant.  The Contribution Credit for a Participant who has a Termination of Employment shall be credited as of the date of termination.  The Contribution Credit for a Participant who ceases to be a Participant but otherwise remains employed by the Bank shall be 

 
9

 

credited as of December 31 of the applicable Plan Year.
(3)Subject to Section 4.2(b), Section 4.4 and other applicable provisions of the Plan, the amount of the Contribution Credit credited to the Account of Participants shall be determined in accordance with Schedule A attached hereto unless the Board of Directors specifically provides that the amount of the Contribution Credit to a particular Participant's Account shall be determined in accordance with Schedule B attached hereto.  Additionally, the Board of Directors may, in its discretion and from time to time, designate that the amount of the Contribution Credit credited to the Account of a particular Participant or Participants for a Plan Year shall be determined in accordance with a separate Schedule, which Schedule shall be attached hereto.  In no circumstances, however, shall the Account of a Participant be credited with Contribution Credits for a Plan Year under more than one Schedule.  The Board of Directors must designate any such alternative schedule (other than Schedule A) on or before December 31 of the Plan Year to which the schedule will apply to any Participant or group of Participants.
(b)25 Year Limit on Contribution Credits.  No Participant shall receive a Contribution Credit for any period of Contribution Credit Service in excess of 25 years as determined under Section 3.4(b).
(c)Former Participants.  No Contribution Credits shall be credited to the Account of any Former Participant with respect to any period of time such individual was not a Participant.
4.3    Annual Indexation Credits
(a)Crediting Accounts.  Annual Indexation Credits shall be credited to the Accounts of Participants and Former Participants as follows: 
(1)The Annual Indexation Credit for a Plan Year shall be credited to the Account of Participants and Former Participants as of the last day of each Plan Year beginning in 2004.  No Annual Indexation Credit shall be credited to the Account of any Participant or Former Participant or with respect to any year prior to 2004.
(2)Subject to Section 4.4 and other applicable provisions of the Plan, the amount of the Annual Indexation Credit credited to the Account of Participants and Former Participants shall be six percent (6%) of the balance of the Account determined as of the first day of the applicable Plan Year.
(b)Proration; Cessation of Annual Indexation Credits.  The Annual Indexation Credit for the Plan Year in which a Participant or Former Participant receives, or begins receiving, payment of his or her benefit under this Plan shall be prorated as provided in Section 4.4(a) below and no further Annual Indexation Credits shall be 

 
10

 

credited to such Participant or Former Participant.
4.4    Special Rules For Determining Balance of Accounts and for Crediting Contribution Credits and Annual Indexation Credits
(a)Proration.  If the Account of a Participant or Former Participant is determined as of a date during the Plan Year, the rules set forth in Section 4.2 and 4.3 shall be applied by treating the date of determination as the end of a short Plan Year.  In such a case, the Participant's Compensation for the Plan Year to the calculation date shall be used in determining Compensation and the Contribution Credit, and the Annual Indexation Credit shall be prorated to reflect the portion of the year that has been completed as of the date of determination.  
(b)Total Retirement Income - Current Limitation.  Notwithstanding anything in this Plan to the contrary, the Total Retirement Income of a Participant or Former Participant shall be limited to fifty percent (50%) of the Participant's or Former Participant's Final Average Pay, and a Participant's or Former Participant's Contribution Credits and/or Annual Indexation Credits, as applicable, under this Plan shall be adjusted as set forth in Section 4.4(d) below in order to ensure that such limit is observed.  For this purpose Total Retirement Income shall be determined as of the earlier of the last day of the current Plan Year and the date payments begin, and Final Average Pay shall be determined as of the earliest of the last day of the current Plan Year, Termination of Employment (if any), and the date the Participant ceases to be a Participant (if any).
(c)Total Retirement Income - Projected Limitation.  Notwithstanding anything in this Plan to the contrary, the projected Total Retirement Income of a Participant shall be limited to fifty percent (50%) of the Participant's projected Final Average Pay, and a Participant's Contribution Credits and/or Annual Indexation Credits, as applicable, under this Plan shall be adjusted as set forth in Section 4.4(d) below in order to ensure that such limit is observed.  For this purpose, in the case of a Participant who has not yet attained age 65, Total Retirement Income and Final Average Pay shall be projected from the last day of the current Plan Year to the date the Participant attains age 65 by assuming four percent (4%) annual pay increases and that the Participant remains a Participant until such projected date.  The projected limitation under this Section 4.4(c) shall not apply unless the Participant remains a Participant until the last day of the Plan Year.
(d)If, pursuant to Sections 4.4(b) or 4.4(c), a Participant's or Former Participant's Total Retirement Income is projected to exceed either of the fifty percent (50%) limits set forth in Sections 4.4(b) or 4.4(c), then Contribution 

 
11

 

Credits and/or Annual Indexation Credits, as applicable, for the current and, if necessary, prior Plan Years shall be reduced as necessary to limit Total Retirement Income accordingly.  If such Participant's or Former Participant's Total Retirement Income subsequently falls or is projected to fall below both of the fifty percent (50%) limits set forth in Section 4.4(b) and 4.4(c), then any Contribution Credits and/or Annual Indexation Credits previously reduced shall be restored as necessary.
4.5    Vesting
The interest of each Participant in his or her Account shall vest as follows:
(a)Vesting of Contribution Credits.  Each Participant shall become fully vested in a particular Contribution Credit upon the completion of three (3) years of Vesting Service following the beginning of the Plan Year (or portion thereof) with respect to which such Contribution Credit is credited to the Participant's Account; provided, however, that no Participant shall become fully vested in the final three (3) years of Contribution Credits credited to his or her Account pursuant to the 25 year limit on Contribution Credits set forth in Section 4.2(b) until the date the Participant attains age 62.
(b)Vesting of Annual Indexation Credits.  Each Participant shall become fully vested in that portion of each Annual Indexation Credit which has been credited to his or her Account with respect to a particular Contribution Credit at the time such Participant becomes fully vested in such Contribution Credit and all further Annual Indexation Credits with respect to that vested Contribution Credit shall be fully vested.
(c)Attainment of Age 62.  Notwithstanding any other provision of this Plan to the contrary, each Participant shall become fully vested in his or her Account on the date such Participant attains age 62 and all further Contribution Credits and Annual Indexation Credits to such Participant's Account shall be fully vested.
4.6    Forfeiture
(a)Termination for Cause.  Notwithstanding any other provision of this Plan to the contrary, each Participant shall forfeit his or her entire Account (whether vested or nonvested) if the Participant has a Termination of Employment for Cause.  For purposes of the Plan, Cause shall be determined by the Bank in its sole discretion using the definition set forth in Section 2.1(i).
(b)Termination Prior to Attaining Age 62.  Subject to the provisions of Section 4.1(b) and pursuant to the provisions of Section 4.5, each Participant whose Termination of Employment prior to the date the Participant 

 
12

 

attains age 62 shall forfeit the unvested final three (3) years of Contribution Credits credited to his or her Account under the Plan.

 
13

 

ARTICLE 5.  PAYMENT OF BENEFITS; DEATH BENEFITS
5.1    Amount of Benefit
The benefit payable under this Plan to a Participant or Former Participant shall be equal to such individual's vested Account balance at the time payment is made or commences.  
5.2    Automatic Form of Benefit Payment
Unless a Participant or Former Participant elects, in the manner prescribed in Section 5.6, an optional form of benefit payment set forth in Section 5.3 within 30 days of first becoming a Participant, the automatic form of benefit payment under the Plan shall be a single lump sum.
5.3    Optional Forms of Benefit Payments
A Participant or Former Participant may elect in accordance with Section 5.6 to receive his or her benefits in one of the following optional forms of payment (which shall be the Actuarial Equivalent of the automatic form provided in Section 5.2) to the extent applicable:
(a)A Life Annuity Option.  A life annuity payable to the Participant or Former Participant as of the first day of each month until (and including) the month in which the Participant or Former Participant dies.
(b)A Contingent fifty Percent (50%) Annuitant Option.  An annuity payable as of the first day of each month to the Participant or Former Participant, for life, with a continuing annuity to the Beneficiary if the Beneficiary survives the Participant or Former Participant, in an amount which is fifty percent (50%) of the monthly annuity payable to the Participant or Former Participant, beginning with the first day of the month following the Participant's or Former Participant's death and continuing for the Beneficiary's lifetime.
5.4    Automatic Time of Benefit Payment
(a)Automatic Time.  Unless a Participant or Former Participant elects, in the manner prescribed in Section 5.6, an optional time of benefit payment within 30 days of first becoming a Participant, the automatic time of payment of a benefit under the Plan shall be the earlier of the Participant's Termination of Employment, death or Disability.
(b)Date Payment is Made.  Payment of a benefit under the Plan shall begin as soon as administratively practicable, but not later than 90 days, following Termination of Employment, death or Disability.  The Bank shall decide, in its sole discretion, the exact date payment shall begin within such 90-day period.

 
14

 

5.5    Optional Time of Benefit Payment
Notwithstanding Section 5.4(b) above, if a Participant has a Termination of Employment at age 45 or older he may elect to defer payment of benefits under the Plan beyond such Termination of Employment, provided such election is made in accordance with Section 5.6 and the distribution is to be made on a specified date, death or Disability.  No payment of benefits may be made under this Plan prior to Termination of Employment, death or Disability.  Notwithstanding the foregoing, distributions shall commence no later than the April 1 following the end of the calendar year in which the later of the two following events occur: (1) the Participant reaches age 70 1⁄2, or (2) the Participant has a Termination of Employment.
5.6    Manner and Time of Elections
(a)The election of an optional form or time of benefit payment shall be made on such forms as may be prescribed by the Bank.  Except as provided in Section 5.6(b), a Participant must make an election regarding the optional form of benefit and the optional time of benefit payment within 30 days of first becoming a Participant and such election shall be irrevocable on the beginning of the 31st day after becoming a Participant.  If no election is made within such 30 days, the automatic form of benefit payment and automatic time of benefit payment rules will apply.  A Participant (or Former Participant) may modify his election or the automatic form and time of benefit but the date the modification is submitted to the administrator must be at least twelve (12) months prior to the Participant's (or Former Participant's) scheduled distribution date, the modification shall not be effective for twelve (12) months after it becomes irrevocable and the first payment under the modified distribution date must occur at least five (5) years after the date such payment would have been made absent the modification; provided, however, that the additional five (5) years shall not apply to payments elected to be made upon death or to any change in the form of payment between annuities that are Actuarial Equivalents.  The election to modify in the preceding sentence shall be irrevocable twelve (12) months prior to the scheduled distribution date absent the modification.
(b)The rules regarding elections apply to rehired employees described in Section 4.1(b), in the same way it applies to newly eligible employees.
(c)Notwithstanding any other provision in the Plan to the contrary, during 2008 a Participant may modify the form of distribution and the distribution date elected under Section 5.6(a), provided that the election is made not later than December 31, 2008.  No election under this Section shall: (1) change the payment date of any distribution 

 
15

 

otherwise scheduled to be paid in 2008 or cause a payment to be paid in 2008, or (2) be permitted after December 31, 2008.
(d)Notwithstanding any other provision of the Plan to the contrary, no distribution shall be made from the Plan that would constitute an impermissible acceleration of payment as defined in Section 409A(a)(3) of the Code and the regulations promulgated thereunder.
(e)The Committee may delay any payment to a Participant or Former Participant upon the Committee's reasonable anticipation of one or more of the following: (i) making such payment would jeopardize the Bank's ability to continue as a going concern and the payment is made to the Participant during the first taxable year in which making the payment would not have such effect on the Bank; or (ii) making such payment would violate Federal securities laws or other applicable law.
5.7    Death Benefits
(a)In the case of a Participant or Former Participant:
(1)who has a vested interest in his or her Account balance; and
(2)who dies before benefit payment has been made in the case of the lump sum automatic form of payment pursuant to Section 5.2, or who has elected the life annuity form of payment pursuant to Section 5.3(a) and dies before payment has begun,
the amount of the vested Account balance shall be paid in a lump sum to the Participant's or Former Participant's Beneficiary eighteen (18) months after the death of the Participant or Former Participant.  In order to change the form or the time of the payment, the Beneficiary must make an election within six (6) months after the Participant's or Former Participant's death to receive a distribution in a form that is available to Beneficiaries under Section 5.3, such election shall be irrevocable on the six (6) month anniversary of the Participant's death and shall not be effective for twelve (12) months after the date such election becomes irrevocable.  If the Beneficiary fails to make a timely election, the Beneficiary will receive the benefit in the form of a lump sum at the end of the eighteen (18) month period.  The Beneficiary cannot elect to receive: (1) payment past the date that is the April 1 following the end of the calendar year in which the Participant would have attained age 70 1⁄2, (2) benefits in a form not allowed under the Cash Balance Plan and (3) benefits before the end of the eighteen (18) month period.
(b)In the case of a Participant or Former Participant:

 
16

 

(1)who has a vested interest in his or her Account balance; and
(2)who has elected the contingent fifty percent (50%) annuitant option pursuant to Section 5.3(b) and who dies either before or after benefit payment has begun,
the amount of the vested Account balance shall be paid or continue to be paid in the form of the contingent fifty percent (50%) annuitant option described in Section 5.3(b).
(c)In no other case shall any amount be paid to a Participant's or Former Participant's Beneficiary.
5.8    Beneficiary Designation
A Participant or Former Participant may designate a person or other entity as the Beneficiary to receive any death benefit payable under the Plan.  Each Beneficiary designation shall be in the form prescribed by the Bank, shall be effective only when properly filed in writing with the Bank before the earlier of the Participant's or Former Participant's death or the time payment is made or commences, and shall revoke all prior designations by the Participant or Former Participant.

 
17

 

ARTICLE 6.  SOURCE OF PAYMENTS
All benefits payable under the Plan shall be paid as they become due and payable by the Bank out of its general assets.  Nothing contained in this Plan shall be deemed to create a trust of any kind for the benefit of Participants, Former Participants or their Beneficiaries or create a fiduciary relationship between the Bank and the Participants, Former Participants or their Beneficiaries. To the extent that any person acquires a right to receive benefits under the Plan, such rights shall be no greater than the right of any unsecured general creditors of the Bank.  Notwithstanding the foregoing, the Bank may, in its sole discretion, execute a trust agreement with a trustee, or enter into one or more contracts with an insurance company or companies, or adopt a combination of both methods of funding.  Any such trust so established shall be a “rabbi” grantor trust under Sections 671 through 679.

 
18

 

ARTICLE 7.  ADMINISTRATION
		
	7.1    
	Committee

(a)General.  The Committee, subject to those powers which the Board of Directors has reserved as described in Article 8 below, shall have general authority over, and responsibility for, the administration and interpretation of the Plan.  The Committee shall have full power, authority and discretion to interpret and construe the Plan, to make all determinations considered necessary or advisable for the administration of the Plan and the trust, if any, the calculation of the amount of benefits payable under the Plan, and to review claims for benefits under the Plan.  The Committee's interpretations and constructions of the Plan and its decisions or actions thereunder shall be binding and conclusive on all persons for all purposes.
(b)Composition.  The Committee shall consist of at least three individuals, each of whom shall be appointed by the Board of Directors.  Any Committee member may resign by delivering his or her written resignation to the Committee no later than fifteen (15) days before the effective date of the resignation.  The Board of Directors may remove any member of the Committee at any time and for any reason with or without advance written notice.  Vacancies in the Committee arising by resignation, death, removal or otherwise shall be filled by the Board of Directors.
(c)Committee Procedures.  The Committee shall elect or designate one of its own members as Chair, establish its own procedures and the time and place for its meetings and provide for the keeping of minutes of all meetings.  A majority of the members of the Committee shall constitute a quorum for the transaction of business by the Committee.  Any action of the Committee may be taken upon the affirmative vote of a majority of the members at a meeting or, at the direction of its Chair, without a meeting by mail or telephone, provided that all of the Committee members are informed in writing of the matter to be voted upon.  The Committee may establish procedures pursuant to which a Committee member may elect not to participate in a Committee proceeding in which such member has an interest.  No Committee member shall be entitled to act on or decide any matters relating solely to such Committee member as a Participant or any of his or her rights or benefits under the Plan.
(d)Expenses.  All expenses incurred by the Committee in its administration of the Plan shall be paid by the Bank.  The Committee members shall not receive any special compensation for serving in such capacity but shall be reimbursed for any reasonable expenses actually incurred in connection therewith.  No bond or other security is 

 
19

 

required of the Committee or any member thereof in any jurisdiction.
(e)Liability; Indemnification.  No Committee member shall be personally liable by reason of any instrument executed by such Committee member, or action taken by the member in his or her capacity as a Committee member, acting in good faith and exercising reasonable care, nor for any mistake of judgment made in good faith.  Committee members may be entitled to indemnification for certain costs, expenses and liabilities to the fullest extent permitted by applicable law and regulations and the charter and bylaws of the Bank, and subject to the terms and conditions set forth in such bylaws.
		
	7.2    
	Procedures for Requesting Benefit Payments

To obtain Plan benefits, a Participant, Former Participant or Beneficiary must file a written application with the Bank.  Procedures for filing a claim in the event that Plan benefits are denied in whole or in part may be obtained from the Bank.

 
20

 

ARTICLE 8.  AMENDMENT AND TERMINATION
		
	8.1    
	Amendment of the Plan

The Bank reserves the right to amend the Plan at any time and in any respect whatsoever by action of its Board of Directors or by such other means as may be prescribed by the Board of Directors.  Retroactive Plan amendments may not decrease the Account balance of any Participant or Former Participant determined as of the time the amendment is adopted, unless the Participant or Former Participant consents in writing.
		
	8.2    
	Termination of the Plan

While it is the intent of the Bank to maintain the Plan indefinitely, it reserves the right to terminate the Plan in whole or in part by action of the Board of Directors (or by such other means as may be prescribed by the Board of Directors) at any time.
Upon termination of the Plan, no further benefits shall accrue under the Plan to any Participant or Former Participant.  In the event of a termination of the Plan, the Bank may determine that the Accounts will be distributed.  If the Board of Directors determines that the Plan is to be terminated and distributions are to be made, the Accounts will be distributed within the period beginning twelve (12) months after the date the Plan was terminated and ending twenty-four (24) months after the date the Plan was terminated, or pursuant to Article 5 of the Plan, if earlier, and otherwise in accordance with Treasury Regulation § 1.409A-3(j)(4)(ix)(C).  Any liquidation and termination of the Plan will not occur proximate to a downturn in the financial health of the Bank, as prohibited by Code Section 409A.  If the Plan is terminated and Accounts are distributed, the Bank shall: (1) terminate all arrangements for Participants that are required to be aggregated with the Plan under Code Section 409A and (2) not adopt a new plan for Participants that would be aggregated with the Plan under Code Section 409A, at any time within three (3) years following the date of the termination of the Plan.
		
	8.3    
	Change in Control

The Bank may terminate the Plan within 30 days prior to or twelve (12) months following a Change in Control and distribute the Accounts of the Participants or Former Participants within the twelve (12) month period following a termination of the Plan and otherwise in accordance with Treasury Regulation § 1.409A-3(j)(4)(ix)(B).  If the Plan is terminated and Accounts are distributed in connection with a Change in Control, the Bank shall: (1) 

 
21

 

terminate all arrangements for Participants that are required to be aggregated with the Plan under Code Section 409A and (2) not adopt a new plan for Participants that would be aggregated with the Plan under Code Section 409A, at any time within three years following the date of the termination of the Plan.
		
	8.4    
	Dissolution or Bankruptcy

The Plan shall automatically terminate upon a corporate dissolution or bankruptcy provided that Participants' (or Former Participant's) Accounts are distributed and included in the gross income of the Participants (or Former Participants) by the latest of: (i) the Plan Year in which the Plan termination, (ii) the first Plan Year in which payment of the Accounts is administratively practicable, or (iii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture and otherwise in accordance with Treasury Regulation § 1.409A-3(j)(4)(ix)(C).  A corporate dissolution or bankruptcy will have occurred only if the transaction qualifies as both a liquidation or reorganization under 12 United States Code Section 1446(26) and a dissolution or bankruptcy under Code Section 409A and the regulations promulgated thereunder.

 
22

 

ARTICLE 9.  MISCELLANEOUS PROVISIONS
		
	9.1    
	Employment Rights

Nothing contained in this Plan or any modification of the Plan or act done in pursuance of this Plan shall be construed as giving any Participant or Former Participant any legal or equitable right with respect to his or her employment against the Bank (or any director, officer or employee thereof), unless specifically provided in this Plan or under applicable law, or as giving any person a right to be retained in the employ of the Bank.  All employees shall remain subject to assignment, reassignment, promotion, transfer, layoff, reduction, suspension, and discharge to the same extent as if this Plan had never been established.
		
	9.2    
	No Examination or Accounting

Neither this Plan nor any action taken under it shall be construed as giving any person the right to an accounting or to examine the books or affairs of the Bank, the Plan, or the Committee, except to the extent required by law.
		
	9.3    
	Records Conclusive

The records of the Bank and the Committee shall be conclusive in respect to all matters involved in the administration of the Plan to the extent permitted by applicable law.
		
	9.4    
	Severability

In the event any provision of this Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of this Plan, and it shall be construed and enforced as if such illegal or invalid provision had never been included.
		
	9.5    
	Counterparts

This Plan may be executed in any number of counterparts, each of which shall be deemed to be an original.  All the counter parts shall constitute but one and the same instrument and may be sufficiently evidenced by any one counterpart.
		
	9.6    
	Taxes

The Bank shall withhold, or cause to be withheld, from all benefits payable under the Plan all federal, state, local or other taxes required by applicable law be withheld with respect to such payment.

 
23

 

		
	9.7    
	Binding Effect

The Plan shall be binding upon and inure to the benefit of the Bank and its successors and assigns and the Participants, Former Participants, their Beneficiaries and estates.  The Plan shall also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of the Bank, but nothing in the Plan shall preclude the Bank from merging or consolidating into or with, or transferring all or substantially all of its assets to, another organization which assumes the Plan and all obligations of the Bank thereunder.
In any agreement or plan which the Bank may enter into to effect any merger, consolidation, reorganization, or transfer of assets, except as provided in Section 8.3, the Bank agrees that it shall make appropriate provision for the preservation of the Participants' and Former Participants' benefits accrued under the Plan prior to such merger, consolidation, reorganization or transfer of assets.  Upon such a merger, consolidation, reorganization, or transfer of assets and assumption of the Plan obligations of the Bank, the term “Bank” shall refer to such other organization and the Plan shall continue in full force and effect.
		
	9.8    
	Assignment

No Participant or Former Participant or Beneficiary shall have the right to assign, transfer, hypothecate, encumber or anticipate his or her benefits under the Plan, nor shall the benefits under this Plan be subject to any legal process to levy upon or attach the benefits for payment of any claim against the Participant or Former Participant or his or her Beneficiary.  In the event of any attempted assignment or transfer, the Bank shall have no further liability hereunder.  The foregoing notwithstanding, in accordance with procedures that are established by the Committee (including procedures requiring prompt notification to the affected Participant or Former Participant and each alternate payee of the receipt by the Plan or the Bank of a domestic relations order and its procedures for determining the qualified status of such order) and subject to Code Section 409A, a judicial order for purposes of or pertaining to domestic relations (which orders do not alter the amount, timing, or form of benefit other than to have it commence at the earliest permissible date) shall be honored by the Plan and the Bank if the Committee or its designee determines that such order would constitute a qualified domestic relations order (within the meaning of Section 414(p)(1)(B) of the Code) if the Plan were a qualified retirement plan under Section 401(a) of the Code.

 
24

 

		
	9.9    
	Incapacity

If the Committee is presented with credible evidence that any person to whom any amount is or was payable under the Plan is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment, or any part thereof, due to such person or his or her estate (unless a prior claim therefor has been made by a duly appointed legal representative), may, if the Committee is so inclined, be paid to such person's spouse, child, or other relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment.  In making such a finding the Committee may rely on the advice of experts chosen by the Committee in its sole discretion.  Any payment consequent on such finding shall be in complete discharge of the liability of the Plan and the Bank therefor.
		
	9.10    
	Unsecured Creditor

To the extent that any person acquires a right to receive payments from the Bank under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Bank.
		
	9.11    
	Notice

Any election, application, claim, designation, request, notice, instruction or other communication required or permitted to be made by a Participant, Former Participant, Beneficiary, or other person to the Committee shall be made in writing and in such form as is prescribed from time to time by the Committee and shall be mailed by first-class mail, postage pre-paid or delivered to such location as shall be specified by the Committee and shall be deemed to have been given and delivered only upon receipt thereof at such location.
		
	9.12    
	Benefits Not Salary

The benefits payable under the Plan shall be independent of, and in addition to, any other benefits provided by the Bank and shall not be deemed salary or other remuneration by the Bank for the purpose of computing benefits to which any Participant or Former Participant may be entitled under any other plan or arrangement of the Bank.

 
25

 

		
	9.13    
	Captions

The captions preceding the sections of the Plan have been inserted solely as a matter of convenience and shall not in any manner define or limit the scope or intent of any provisions of the Plan.
		
	9.14    
	Governing Law

The Plan is intended to constitute an unfunded Plan for a select group of employees and rights thereunder shall be construed according to the laws of the State of California, without giving effect to the choice of law principles thereof, and the laws of the United States, as applicable.  The Plan shall be construed in a manner that is consistent and compliant with Section 409A of the Code, and any regulations promulgated thereunder.  Any provision that is noncompliant with Section 409A of the Code is void or deemed amended to comply with Section 409A of the Code.  The Bank does not guarantee or warrant the tax consequences of the Plan, and the Participants shall in all cases be liable for any taxes due with respect to the Plan.
		
	9.15    
	Addresses

Each Participant or Former Participant must file with the Bank from time to time in writing his or her post office address and each change of post office address.  The communication, statement or notice addressed to a Participant or Former Participant at the last post office address filed with the Bank, or if no address is filed with the Bank, then at the last post office address as shown on the records of the Bank, shall be binding on the Participant or Former Participant and his or her Beneficiaries for all purposes of the Plan.  The Bank shall not be required to search for or locate a Participant, Former Participant or his or her Beneficiary.
 

 
26

 

IN WITNESS WHEREOF, the Federal Home Loan Bank of San Francisco has caused this amendment and restatement to the Federal Home Loan Bank of San Francisco Supplemental Executive Retirement Plan, effective January 1, 2009, to be executed by its duly authorized officers, this 30th day of December 2008.
 
 
			
	 
	FEDERAL HOME LOAN BANK OF SAN FRANCISCO

	 
	 
	 

	 
	 
	 

	 
	Signature:
	/S/ DEAN SCHULTZ

	 
	Name:
	Dean Schultz

	 
	Title:
	President and Chief Executive Officer

	 
	 
	 

	 
	 
	 

	 
	Signature:
	/S/ GREGORY P. FONTENOT

	 
	Name:
	Gregory P. Fontenot

	 
	Title:
	Senior Vice President and Director of Human Resources

 

 
27

 

FEDERAL HOME LOAN BANK OF SAN FRANCISCO
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
 
Schedule A
 
Subject to Sections 3.4, 4.2 and other applicable provisions of the Plan, for the Plan Year beginning in 2003 and for subsequent Plan Years, Contribution Credits shall be credited to the Account of each Participant as follows unless the Board of Directors specifically designates that a different Schedule is applicable to such Participant.
A.1    8% of Compensation for Contribution Credit Service less than 10 years.
A.2    12% of Compensation for Contribution Credit Service of 10 or more but less than 15 years.
A.3    16% of Compensation for Contribution Credit Service of 15 years or more.
For purposes of this Schedule, Compensation shall include only Compensation earned by the Participant during the applicable Plan Year while a Participant in the Plan.  Additionally, for purposes of this Schedule, Contribution Credit Service shall be determined as of the first day of the applicable Plan Year.  No Contribution Credits shall be credited to the Account of any Participant under this Schedule A for, or with respect to, any year prior to 2003.
 

 
A- 1

 

FEDERAL HOME LOAN BANK OF SAN FRANCISCO
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
 
Schedule B
 
Subject to Sections 3.4, 4.2 and other applicable provisions of the Plan, for the Plan Year beginning in 2003 and for subsequent Plan Years, the Account of each Participant to whom the Board of Directors has specifically designated this Schedule B applies shall be credited with Contribution Credits as follows:
B.1    10% of Compensation for Contribution Credit Service less than 10 years.
B.2    15% of Compensation for Contribution Credit Service of 10 or more but less than 15 years.
B.3    20% of Compensation for Contribution Credit Service of 15 years or more.
For purposes of this Schedule, Compensation shall include only Compensation earned by the Participant during the applicable Plan Year while a Participant in the Plan.  Additionally, for purposes of this Schedule, Contribution Credit Service shall be determined as of the first day of the applicable Plan Year.  No Contribution Credits shall be credited to the Account of any Participant under this Schedule B for or with respect to any year prior to 2003.
 

 
B- 1

 

RESOLUTION OF THE
FEDERAL HOME LOAN BANK OF SAN FRANCISCO
RETIREMENT COMMITTEE
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
WHEREAS, the Bank maintains the Federal Home Loan Bank of San Francisco Supplemental Executive Retirement Plan, as amended and restated effective January 1, 2009 (the “SERP”); 
WHEREAS, Section 4.5(c) of the SERP states that a participant shall become vested in all SERP benefits at age 62;
WHEREAS, no employee has become a participation in the SERP who has been older than age 60;
WHEREAS, the Bank desires to amend the SERP to specifically provide that the default time and form of payment provisions apply to any employee who first becomes eligible for the SERP within 13 months of vesting under the SERP;
WHEREAS, the Bank wishes to revise the SERP savings clause to reflect additional guidance issued from the IRS;
WHEREAS, the Retirement Committee has the authority to recommend to the President the adoption of amendments to the SERP;
 
WHEREAS, the President has the authority to adopt amendments to the SERP that are necessary or appropriate to facilitate the administration and interpretation of the SERP or to conform the SERP thereto (including any such amendments as necessary or appropriate from time to time to conform the SERP to changes in law), provided that any such amendment or action does not have a material affect on the then currently estimated cost to the Bank of maintaining the SERP; and 
 
WHEREAS, the changes described above are technical in nature and necessary and appropriate to facilitate the administration and interpretation of the SERP and do not materially affect the cost of the SERP.
 
NOW THEREFORE BE IT RESOLVED, that Retirement Committee recommends to the President that the SERP be amended as in the form of the First Amendment attached hereto as Exhibit A.
RESOLVED FURTHER, that the Senior Vice President, Human Resources is hereby authorized and directed to have prepared the text of the First Amendment to the SERP referred to in the preceding resolution for execution by the President of the Bank before December 31, 2010, and to execute and deliver on behalf of the Bank all such other agreements and documents, make all such filings and take all such actions as deemed necessary or appropriate in order to carry out and implement the foregoing resolutions.
 

 
EXHIBIT B

 

RESOLVED FURTHER, that all actions previously taken by the officers of the Bank (and any persons authorized by any one of them) for and on behalf of the Bank, in connection with the matters described above, are ratified and affirmed.
		
	 
	 

	 
	Adopted by the Federal Home Loan Bank of San Francisco 
Retirement Committee on November 22, 2010

	 
	 

	 
	/S/ GREGORY P. FONTENOT

	 
	Gregory P. Fontenot
Senior Vice President and Director of Human Resources

	 
	 

 

 
2

 

Exhibit A
 
FIRST AMENDMENT TO THE FEDERAL HOME LOAN BANK OF SAN FRANCISCO
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
1.    Section 2.1(x) of the SERP is amended by adding the words “equal to or” immediately before the words “less than twenty percent.”
2.    Section 5.2 of the SERP is amended by adding at the end of the section the following sentence:
“In addition, if the Participant first becomes a Participant within 13 months of becoming vested, the automatic form of benefit payment under the Plan shall apply.”
3.    Section 5.4 of the SERP is amended by adding at the end of the section the following sentence:
“In addition, if the Participant first becomes a Participant within 13 months of becoming vested, the automatic time of benefit payment under the Plan shall apply.”
4.    Section 5.6 of the SERP is amended by deleting subsection (b) its entirety and renumbering subsections (c), (d) and (e) as subsections (b), (c) and (d), respectively.
5.    Section 9.14 of the SERP is amended by replacing the second sentence thereof with language to read as follows:
“The Plan is intended to comply with Code Section 409A.  Notwithstanding any provision to the contrary, the Plan shall be interpreted as necessary to comply with Code Section 409A and any regulations promulgated thereunder.  Any benefit, payment or other right provided by the Plan shall be provided or made in a manner that complies with the applicable requirements of Code Section 409A and any regulations promulgated thereunder.  Any provision of the Plan that cannot be interpreted or applied in a manner consistent with Code Section 409A is deemed amended to comply with Code Section 409A or, if such amendment is not possible, is void.  The Plan specifically incorporates the plan aggregation rules under Treasury Regulations § 1.409A-1(c)(2) and any payment periods permitted after a payment event or time under Treasury Regulation § 1.409A-3.”
IN WITNESS WHEREOF, this First Amendment is adopted by the President and Chief Executive Officer of the Federal Home Loan Bank of San Francisco on this 10th day of December 2010.
 
		
	 
	 

	 
	/S/ DEAN SCHULTZ

	 
	Dean Schultz
President and Chief Executive Officer

	 
	 

 

 
3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]