Summary Plan Description Important Notice

You will be eligible for membership in the Plan on the first day of the month coinciding with or next following your date of employment. Your employer will notify you of your right to become a Member when you first become eligible and will furnish you with an enrollment application.

You will be eligible to receive employer contributions on the first day of the month coinciding with or next following the date you complete one year of service.

However, certain groups of employees are not eligible for membership in the Plan. Please refer to the "Determining Your Eligibility" section of this Summary.

Plan Salary is defined as your basic salary rate reflecting changes occurring during the year.

In addition, any pre-tax contributions that you make are included in Plan Salary. Please refer to the “Plan Salary” section of this Summary.

Employee – You may elect to make a pre-tax and/or after-tax contribution of 1% to 50% (in 1% increments) of Plan Salary. You may also elect all or a portion of your employee contributions to be designated as Roth elective deferrals. Unless stated otherwise, Roth elective deferrals will be treated as elective deferrals for all purposes under the Plan. If you are at least age 50, you may elect to make catch-up contributions ($5,500 for 2012, indexed).

Employer – Your employer will make a contribution based on the amount you contribute in accordance with the following schedule: 

   (i) 100% during the 2nd and 3rd years of employment 
   (ii) 150% during the 4th and 5th years of employment 
   (iii) 200% upon completion of five or more years of  
      employment.

This percentage rate applies to the first 3% of your Plan Salary (see the "Plan Salary" section of this Summary).

In addition, your employer may, in its sole discretion, make a profit sharing contribution to the Plan. You will be eligible to receive a profit sharing contribution if you are employed on the last day of the plan year for which the profit sharing contributions are being made to the Plan by your employer.

You may take a loan from your account and pay your account back with interest. Please refer to the “Borrowing From Your Account” section of this Summary to determine how you may take a loan from your account.

Your 65th birthday.

While you are working, you may withdraw all or part of your vested account balance subject to certain limitations. You may also make withdrawals from your account after termination of employment.

Please refer to the "Making Withdrawals From Your Account" section of this Summary to determine if there are any restrictions on employer contributions on account of a withdrawal.

You will be eligible for membership in the Plan on the first day of the month coinciding with or next following your date of employment. Your employer will notify you of your right to become a Member when you first become eligible and will furnish you with an enrollment application.

You will be eligible to receive employer contributions on the first day of the month coinciding with or next following the date you complete one year of service.

In order for you to complete one year of service, you must complete at least 1,000 hours of employment in a 12 consecutive month period. The initial eligibility period is measured from your date of employment.

In counting hours you will be credited with an hour of employment for every hour you have a right to be paid. This includes vacation, sick leave, jury duty, etc. and any hours for which back pay may be due.

Notwithstanding the above, the following groups of employees are not eligible for membership in the Plan:

•Short term employees.

Short term employees are those that are precluded from participation by a written agreement.

After you meet the Plan's eligibility requirements and your completed enrollment form is received by the Plan Board, you will be enrolled in the Plan. Your participation will continue until the earlier of (a) your termination of employment and payment to you of your entire account or (b) your death.

Employee – You may elect to make a pre-tax and/or after-tax contribution of 1% to 50% (in 1% increments) of Plan Salary (see the "Plan Salary" section of this Summary). You may also elect all or a portion of your employee contributions to be designated as Roth elective deferrals. Unless stated otherwise, Roth elective deferrals will be treated as elective deferrals for all purposes under the Plan.

You may change the rate at which you are contributing one time in any reporting period, including Roth deferrals. You may also suspend your contributions one time in any reporting period, but suspended contributions may not subsequently be made up.

Employer – Your employer will make a contribution based on the amount you contribute in accordance with the following schedule: 

   (i) 100% during the 2nd and 3rd years of employment 
   (ii) 150% during the 4th and 5th years of employment 
   (iii) 200% upon completion of five or more years of  
      employment.

This percentage rate applies to the first 3% of your Plan Salary (see the "Plan Salary" section of this Summary).

In addition, your employer may, in its sole discretion, make a profit sharing contribution to the Plan. You will be eligible to receive a profit sharing contribution if you are employed on the last day of the plan year for which the profit sharing contributions are being made to the Plan by your employer.

Please refer to the "Making Withdrawals From Your Account" section of this Summary to determine if there are any restrictions on employer contributions on account of a withdrawal.

Catch-up Contributions – All employees who are eligible to make contributions to this Plan and who will reach age 50 before the end of a calendar year will be eligible to make catch-up contributions in accordance with, and subject to the limitations of, Section 414(v) of the Internal Revenue Code. If you are eligible to make catch-up contributions, you may designate such catch-up contributions as Roth elective deferrals.

The maximum catch-up contribution for 2012 is $5,500 (as indexed in the future). The amount, if any, of your elective deferrals which will be characterized as catch-up contributions will be determined at the end of the Plan Year based upon the statutory limits and plan limits in effect for the Plan Year.

There are several ways in which a contribution could be characterized as a catch-up contribution, as illustrated in the following examples. Assume that the Member is over age 50 in each example:

Example 1: Suppose your annual salary is $125,000 and you contribute 15% of your Plan Salary to the Plan (as permitted under the terms of the Plan) for each contribution reporting period in 2012. At the end of the Plan Year, you will have contributed $18,750 to the Plan. Because this amount exceeds the statutory limit on elective deferrals ($17,000 in 2012), the excess ($1,750) will be treated as a catch-up contribution.

Example 2: Same facts as provided in Example 1, except that your annual Plan Salary is $75,000. In this example, you will have contributed $11,250 to the Plan in 2012 ($75,000 x 15%). Because your contributions do not exceed either the Plan's maximum contribution percentage or the elective deferral limitation ($17,000 in 2012) and no other limitations are impacted, no portion of your contributions is treated as a catch-up contribution.

Example 3: Suppose that your annual Plan Salary is $120,000 in 2012, you earned total compensation of $110,000 in 2011 (making you a Highly-Compensated Employee for 2012), and you contributed $17,000 to the Plan in 2012. Because your $17,000 contribution does not exceed either the Plan's maximum contribution percentage or the elective deferral limit ($17,000 in 2012), there is no catch-up contribution based upon the application of those two limits. However, further assume that the Plan determines that you are required to receive a $6,000 Actual Deferral Percentage ("ADP") refund for 2012. In this scenario, $5,500 of your ADP refund would automatically be recharacterized as a catch-up contribution.

Your employer has established a Regular Account, 401(k) Account and Roth Elective Deferral Account for you. All of your contributions and all employer contributions will be allocated to these accounts. The total value of these accounts, including the value of your Rollover Account (see below), represents your interest in the Plan.

Employee – You may allocate all or part of your contributions to your 401(k) Account. Contributions not allocated to your 401(k) Account will be allocated to your Regular Account. If you make Roth Elective Deferrals, a separate account will be established to account for such contributions.

Employer – Employer contributions, other than Profit Sharing contributions, will first be allocated to your 401(k) Account until the total of the employee and employer contributions allocated to your 401(k) Account equals 2% of Plan Salary (see "Plan Salary" section of this booklet). Employer contributions, other than Profit Sharing contributions, in excess of this amount will be allocated to your Regular Account.  

If you are a Highly Compensated Employee, a portion of your contributions and/or employer contributions made on your behalf, if any, may have to be returned to you in order to comply with special Internal Revenue Service ("IRS") nondiscrimination rules (see the "Plan Limitations" section of this Summary for other limitations). In general, a Highly Compensated Employee is an employee who:

 (a) was a 5% owner at any time during 2012 or 2011, or

 (b) received annual compensation in excess of $110,000 for 2011.

You may make a rollover contribution of an eligible rollover distribution from any other IRS qualified retirement plan or an individual retirement account ("IRA"). These rollover funds will be maintained in a separate source in which you will have a nonforfeitable vested interest. Please note that you may not rollover money to this Plan prior to satisfying the Plan's eligibility requirements.

Plan Salary is defined as your basic salary rate reflecting changes occurring during the year.

In addition, any pre-tax contributions that you make as well as pre-tax contributions to a Section 125 cafeteria plan and, unless the employer elects otherwise, Qualified Transportation Fringe benefits as defined under Section 132(f) of the Internal Revenue Code, are included in Plan Salary.

Your Plan Salary for any year may not exceed a specified dollar amount as determined by the IRS each year. This limit is $250,000 for 2012, and is subject to adjustment in accordance with IRS Regulations.

Internal Revenue Service requirements impose certain limitations on the amount of contributions that may be made to this and other qualified plans. In general, the annual "contributions" made to a defined contribution plan such as this Plan, in respect of any Member, may not exceed the lesser of (a) 100% of the Member's total compensation or (b) a specific dollar amount, as determined by the IRS each year. The dollar limit is $50,000 for 2012 and is subject to adjustment in accordance with IRS Regulations.

For this purpose, "contributions" include employer contributions and Member contributions. The combined annual Member contributions allocated to a Member's 401(k) Account and, if applicable, Roth Elective Deferral Account may not exceed a specific dollar amount, as determined by the IRS each year. This limit is $17,000 in 2012, and is subject to adjustment in accordance with IRS Regulations. If your employer has another tax-qualified plan in effect, these limits are subject to additional restrictions.

Each Member and beneficiary assumes the risk in connection with any decrease in the market value of his account. The benefit to which you may be entitled when you take a distribution of your account cannot be determined in advance.

As a defined contribution plan, the Plan is not covered by the plan termination insurance provisions of Title IV of the Employee Retirement Income Security Act of 1974 ("ERISA"). Therefore, your benefits are not insured by the Pension Benefit Guaranty Corporation in the event of a plan termination.

The Trustee is empowered to charge against and pay out of the Trust Fund, to the extent not paid by the employers, all proper costs of operation and administration of the Plan, including the expenses and compensation of the Trustee, expenses of the Board and compensation for its agents.

Except as may otherwise be required by applicable law or pursuant to the terms of a Qualified Domestic Relations Order, amounts payable by the Plan generally may not be assigned, and if any person entitled to a payment attempts to assign it, his interest in the amount payable may be terminated and held for the benefit of that person or his dependents.

Membership in the Plan does not give you the right to continued employment with your employer or affect your employer's right to terminate your employment.

Your employer's continued participation is subject to IRS approval and any requirements the IRS may impose.

An employer may terminate its participation in the Plan at any time. In addition, the Board retains the right to terminate the Plan or an employer's participation in the Plan in certain circumstances. If the Plan is terminated or if your employer's participation in the Plan is terminated, there will be no further contributions to the Plan for your account.

A "top heavy" plan is a plan under which more than 60% of the accrued benefits (account values) are for key employees. Key employees generally include officers and shareholders earning more than $165,000 per year (indexed for cost-of-living adjustments), 5% owners of the Employer, and 1% owners of the Employer earning more than $165,000 per year. If your employer's plan is top heavy for a particular Plan Year, you may be entitled to a minimum employer contribution equal to the lesser of 3% of your Plan Salary or the greatest percentage contributed by the employer for any key employee. This minimum contribution would be offset by the regular contribution made by your employer (See the "Plan Contributions" section of this Summary).

In order to receive the minimum contribution for any Plan Year, you must be employed on the last day of the Plan Year (December 31). If your employer also provides a defined benefit or another defined contribution plan, your minimum benefit may be provided under such plan.

Benefits normally will be paid to Members and Beneficiaries without the necessity of formal claims. You or your Beneficiary(ies), however, may make a request for any Plan benefits to which you believe you may be entitled. Any such request must be made in writing, and it should be made to the President of the Plan. The following claims appeal procedure applies to claims [other than claims for benefits due to Disability].

Your request for Plan benefits will be considered a claim for Plan benefits, and it will be subject to a full and fair review. If your claim for such benefits under the Plan is wholly or partially denied, the President of the Plan shall furnish you or your Beneficiary (referred to below as a “claimant”) or your authorized representative with a written or electronic notice of the denial within a reasonable period of time [generally, ninety (90) days after the President of the Plan receives the claim and furnishes written notice of the extension to the claimant or his authorized representative before the initial ninety (90) day period ends], which sets forth, in an understandable manner, the following information:

•    The specific reason(s) for the denial of the claim;

•    Reference to the specific Plan provision on which the denial is based;

•    A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why that material or information is necessary; and

•    A description of the Plan’s review procedures and the time limits applicable to those procedures, including a statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following a denial on review.

The claimant or his authorized representative may appeal the President’s decision denying the claim within sixty (60) days after the claimant or his authorized representative receives the President’s notice denying the claim. The claimant or his authorized representative may submit to the Board of Directors of the Plan written comments, documents, records and other information relating to the claim. The claimant or his authorized representative shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim. For these purposes, a document, record or other information is “relevant” to the claim if it:

•    was relied upon the President in making its decision on the claim,

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

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

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

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

•    The specific reason(s) for the decision on appeal;

•    Reference to the specific Plan provision on which the decision on appeal is based;

•    A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits; and

•    A statement describing any voluntary appeal procedures (including voluntary arbitration or any other form of dispute resolution) offered by the Plan and the claimant’s right to obtain information sufficient to enable you or your beneficiary to make an informed judgment about whether to submit a benefit dispute to the voluntary level of appeal, and a statement of the claimant’s right to bring an action under ERISA Section 502(a).

A QDRO is a judgment, decree or order which has been determined by the Plan, in accordance with the procedures established under the provisions of the Plan, to constitute a QDRO under the Internal Revenue Code.

To obtain copies of the Plan’s Model QDRO and QDRO Procedures, free of charge, please contact the Plan Administrator. (Please refer to the “Plan Information” section of this Summary to obtain the Plan Administrator’s address and telephone number).

Federal Home Loan Bank of Pittsburgh 
601 Grant Street
Pittsburgh, PA ###-###-####

Telephone Number – (412) 288-3498

The Plan is sponsored by the – 

Pentegra Defined Contribution Plan for Financial Institutions
108 Corporate Park Drive
White Plains, NY 10604 
 
Telephone Number – (914) 694-1300
Pentegra by Phone – (866) 633-4015

Pentegra Online – www.pentegra.com 

Plan Identification Number – 13 ###-###-####
Plan Number – 002 
 
Plan Year End – December 31

Reliance Trust Company

1100 Abernathy Road NE, Suite 400

Atlanta, GA 30328

Telephone Number – (404) 266-0663