2010 Amendment to Deferred Compensation Plan of the Federal Home Loan Bank of Dallas

Contract Categories: Human Resources › Compensation Agreements
Summary

This amendment updates the Deferred Compensation Plan for employees of the Federal Home Loan Bank of Dallas, effective July 22, 2010. It clarifies how participants can choose investment options for their deferred compensation and details the bank's matching contributions based on years of service. The amendment also ensures the plan complies with Section 409A of the Internal Revenue Code. The plan applies to deferrals effective on or after January 1, 2005, and outlines specific matching formulas and conditions for eligibility.

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EX-10.1 2 d77580exv10w1.htm EX-10.1 exv10w1
Exhibit 10.1
2010 AMENDMENT TO
DEFERRED COMPENSATION PLAN
OF THE FEDERAL HOME LOAN BANK OF DALLAS
FOR DEFERRALS EFFECTIVE ON JANUARY 1, 2005
     Pursuant to the authority granted to the Board of Directors of Federal Home Loan Bank of Dallas, under Section 8.02 of the Deferred Compensation Plan of the Federal Home Loan Bank of Dallas for Deferrals Effective on January 1, 2005 (the “Plan”), the Plan is hereby amended as follows:
I.
     Article III of the Plan shall be amended to add a new Section 3.07 that provides as follows:
     “3.07 Investment Election. The Participant shall make an initial investment election as to which of the specific mutual funds listed on the FHLB Dallas Fund Array he/she wishes to have the deferral contributions, and the Bank’s matching contribution (if any) invested. This investment election shall carry forward from one Plan Year to the next and remain in effect until such time as changed by the Participant.
     If no investment election is received, a Participant’s deferrals and any matching Bank contributions shall be invested in the Plan’s designated default fund.”
II.
     Article IV, Section 4.01 of the Plan shall be amended and restated in its entirety to provide as follows:
     “4.01 Bank Contributions. For each Plan Year, the Bank shall make an addition to each Participant’s Benefit Account of a monthly contribution in an amount based on the following schedule:
             
 
   1st year of Service   =   no Bank match
 
            
 
   2nd and 3rd years of Service   =   100% match on first 3% of monthly salary
 
           contributed to the Plan reduced by 3% of the
 
           Participant's monthly eligible compensation,
 
           as defined under the Qualified Plan. (100%
 
           match on first 5% of monthly of salary
 
           contributed to the Plan, if employed on or
 
           after January 1, 2007 and without prior
 
           Pentegra DB Pension Plan benefit service,
 
           reduced by 5% of the Participant's monthly
 
           eligible compensation, as defined under the
 
           Qualified Plan.)

 

 

             
 
   4th and 5th years of Service   =   150% match on first 3% of monthly salary contributed to the Plan reduced by 4.5% of the Participant’s monthly eligible compensation, as defined under the Qualified Plan. (150% match on first 5% of monthly of salary contributed to the Plan, if employed on or after January 1, 2007 and without prior Pentegra DB Pension Plan benefit service, reduced by 5% of the Participant’s monthly eligible compensation, as defined under the Qualified Plan.)
 
            
 
   6 or more years of Service   =   200% match on first 3% of monthly salary contributed to the Plan reduced by 6% of the Participant’s monthly eligible compensation, as defined under the Qualified Plan. (200% match on first 5% of monthly of salary contributed to the Plan, if employed on or after January 1, 2007 and without prior Pentegra DB Pension Plan benefit service, reduced by 5% of the Participant’s monthly eligible compensation, as defined under the Qualified Plan.)
The Bank will make the above-referenced matching contribution with respect to each Participant except to the extent prohibited or limited by law in which case no such contribution shall be made and any matching contributions previously made which are prohibited or limited by such law shall be forfeited and returned to the Bank. The amount of the matching Bank contribution added to the Participant’s Benefit Account is solely dependent on the Participant’s length of Service.”
III.
     Article VIII of the Plan is hereby amended to add a new Section 8.11 that provides as follows:
     “8.11 Construction. It is intended that this Plan complies with Section 409A of the Internal Revenue Code; therefore, in the event a Plan definition or provision is determined to be ambiguous, it shall be interpreted so as to comply with Section 409A.”

 

 

     The effective date of this 2010 Amendment to the Deferred Compensation Plan of the Federal Home Loan Bank of Dallas for Deferrals Effective on January 1, 2005 shall be July 22, 2010.
     Executed this 22nd day of July, 2010.
         
 
FEDERAL HOME LOAN BANK OF DALLAS
 		  
  By:   /s/ Timothy J. Heup, Sr. VP  
    Corporate Officer   
       
 
         
ATTEST:
  /s/ Brehan Chapman    
 
       
 
  Corporate Secretary