Filed within this Form 10-K

The purpose of this policy is to describe certain circumstances under which the Bank may make severance payments to individuals whose employment is terminated.

All regular full- and part-time employees who work at least 1,000 hours per year are eligible to be considered for severance under this policy. Temporary employees are not eligible.

It is the policy of the Bank to provide individuals whose employment is terminated involuntarily for reasons other than “cause” (as determined by the Bank in its sole discretion) with severance packages reflecting their status in the organization and tenure. In consideration of the receipt of a severance package, such individuals must sign a release of claims in the form, and within the time period, required by the Bank.

Severance pay hereunder will take into account employee status in the organization and years of service with the Bank, according to the guidelines below, with service rounded to the next highest month. Service with other Federal Home Loan Banks is not considered.

Severance will normally be paid in the form of salary continuation unless the Bank determines otherwise in its sole discretion consistent with Paragraph G. This Severance Policy will be interpreted and administered so as to avoid duplication of benefits under the Federal Home Loan Bank of Boston Executive Change in Control Severance Plan.

The amount of severance, if any, offered to an employee who is leaving by mutual agreement or who is terminated for cause is at the sole discretion of the Bank; provided, however, that any such severance shall not exceed the Guidelines set forth above.

At its sole discretion, the Bank may provide additional severance benefits, such as outplacement services.

All severance packages must have the approval of the appropriate Executive Officer and the President. All severance packages for Executive Officers must also have the approval of the Human Resources and Compensation Committee of the Bank’s Board of Directors.

This severance policy is not intended by the Bank - and should not be viewed by employees - as setting forth a contractual relationship between the Bank and any one or all of its employees. The Bank reserves the right to modify, revoke, suspend, terminate, or change this severance policy at any time without notice.

It is intended that the payments and benefits provided hereunder shall either be exempt from the application of, or otherwise comply with, the requirements of Internal Revenue Code (“Code”) Section 409A. However, in no event will the Bank or any director, officer, employee or advisor (other than in his or her capacity as a participant under this Policy) be liable for any taxes, interest or penalties with respect to severance pay or benefits hereunder.

Payments hereunder are deemed to be separate payments for purposes of applying the short-term deferral rule in Treas. Reg. § 1.409A-1(b)(4) and in determining separation pay due to involuntary separation from service under Treas. Reg. § 1.409A-1(b)(9)(iii).

Unless the Bank determines otherwise in its sole discretion consistent with the intent of this Paragraph G, any payment or benefit constituting deferred compensation that is not exempt from Code Section 409A that would have otherwise been payable during the period established for review and execution of the required release of claims shall be accumulated and paid (without interest) on the 75th day after the termination date provided such release shall have been executed and become effective prior to such date.

 

The following provisions of the Federal Home Loan Bank Act and FHFA Regulations are applicable to this Policy: