Qualified Defined Benefit Plan. The Bank provides retirement benefits through a Bank-sponsored Cash Balance Plan, a qualified defined benefit plan. The Cash Balance Plan is provided to all employees who have completed six months of Bank service. Under the plan, each eligible Bank employee accrues benefits annually equal to 6% of the employee's annual compensation, plus 6% interest on the benefits accrued to the employee through the prior yearend. The Cash Balance Plan is funded through a qualified trust established by the Bank.

Postretirement Health Benefit Plan. The Bank provides a postretirement health benefit plan to employees that meet certain eligibility criteria. Changes in health care cost trend rates will not have a material effect on the Bank's accumulated postretirement benefit obligation or service and interest costs because benefit plan premiums are generally paid by the retirees.

The following table presents the fair value of plan assets as well as the funded status that is recognized in other assets/(liabilities) in the Statements of Condition for the defined benefit Cash Balance Plan, non-qualified defined benefit plans, and postretirement health benefit plan at December 31, 2019 and 2018.



	2019								2018
	Cash Balance Plan		Non-Qualified Defined Benefit Plans			Post-retirement Health Benefit Plan			Cash Balance Plan			Non-Qualified Defined Benefit Plans			Post-retirement Health Benefit Plan
Fair value of plan assets	$	74	$	—		$	—		$	57		$	—		$	—
Funded status	6		(20		)	(2		)	(1		)	(19		)	(2		)



	2019							2018
	Cash Balance Plan		Non-Qualified Defined Benefit Plans		Post-retirement Health Benefit Plan			Cash Balance Plan		Non-Qualified Defined Benefit Plans		Post-retirement Health Benefit Plan
Net loss/(gain)	$	14	$	1	$	(1	)	$	17	$	1	$	(1	)

The following table presents information for pension plans with assets in excess of benefit obligations and for pension plans with benefit obligations in excess of plan assets at December 31, 2019 and 2018.



	2019						2018
	Cash Balance Plan		Non-Qualified Defined Benefit Plans		Post-retirement Health Benefit Plan		Cash Balance Plan		Non-Qualified Defined Benefit Plans		Post-retirement Health Benefit Plan
Projected benefit obligation	$	68	$	20	$	2	$	58	$	19	$	2
Accumulated benefit obligation	67		20		2		57		19		2
Fair value of plan assets	74		—		—		57		—		—

The Bank uses a discount rate to determine the present value of its future benefit obligations. The discount rate was determined based on the Citigroup Pension Discount Curve at the measurement date. The Citigroup Pension Discount Curve is a yield curve that reflects the market-observed yields for high-quality fixed income securities for each maturity. The projected benefit payments for each year from the plan are discounted using the spot rates on the yield curve to derive a single equivalent discount rate. The discount rate is reset annually on the measurement date. The discount rate used to determine the benefit obligations for the Cash Balance Plan and non-qualified defined benefit plans was 2.75% for 2019 and 3.75% for 2018. The discount rate used to determine the benefit obligations for the post-retirement health benefit plan was 3.00% for 2019 and 4.00% for 2018.

The expected return on plan assets was determined based on: (i) the historical returns for each asset class, (ii) the expected future long-term returns for these asset classes, and (iii) the plan's target asset allocation.

The table below presents the fair values of the Cash Balance Plan's assets as of December 31, 2019 and 2018, by asset category. See Note 19 – Fair Value for further information regarding the three levels of fair value measurement.



	2019								2018
	Fair Value Measurement Using:								Fair Value Measurement Using:
Asset Category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	2	$	—	$	—	$	2	$	1	$	—	$	—	$	1
Equity mutual funds	46		—		—		46		33		—		—		33
Fixed income mutual funds	21		—		—		21		19		—		—		19
Real estate mutual funds	3		—		—		3		2		—		—		2
Other mutual funds	2		—		—		2		2		—		—		2
Total	$	74	$	—	$	—	$	74	$	57	$	—	$	—	$	57

The Cash Balance Plan is administered by the Bank's Retirement Committee, which establishes the plan's Statement of Investment Policy and Objectives. The Retirement Committee has adopted a strategic asset allocation based on a stable distribution of assets among major asset classes. These asset classes include domestic large-, mid-, and small-capitalization equity investments; international equity investments; real return investments; and fixed income investments. The Retirement Committee has set the Cash Balance Plan's target allocation percentages for a mix of 60% equity, 10% real return, and 30% fixed income. The Retirement Committee reviews the performance of the Cash Balance Plan on a regular basis.



Asset Category	2019		2018
Cash and cash equivalents	2	%	3	%
Equity mutual funds	63		57
Fixed income mutual funds	28		33
Real estate mutual funds	4		4
Other mutual funds	3		3
Total	100	%	100	%

The Bank contributed $6 in 2019 and expects to contribute $3 in 2020 to the Cash Balance Plan. The Bank contributed $2 in 2019 and expects to contribute $3 in 2020 to the non-qualified defined benefit plans and postretirement health benefit plan.



Year	Cash Balance Plan		Non-Qualified Defined Benefit Plans		Postretirement Health Benefit Plan
2020	$	3	$	3	$	—
2021	4		1		—
2022	4		4		—
2023	4		1		—
2024	25		5		—
2025 – 2029	21		15		1

Retirement Savings Plan. The Bank sponsors a qualified defined contribution retirement 401(k) savings plan, the Federal Home Loan Bank of San Francisco Savings Plan (Savings Plan). Contributions to the Savings Plan consist

of elective participant contributions of up to 20% of each participant's base compensation and a Bank matching contribution of up to 6% of each participant's base compensation. The Bank contributed approximately $2, $2, and $2 during the years ended December 31, 2019, 2018, and 2017, respectively.

Benefit Equalization Plan. The Bank sponsors a non-qualified retirement plan restoring benefits offered under the Savings Plan that have been limited by laws governing the plan. Contributions made during the years ended December 31, 2019, 2018, and 2017, were de minimis.

Deferred Compensation Plan. The Bank maintains a deferred compensation plan that is available to all eligible Bank officers. The defined contribution portion of the plan consists of two components: (i) officer or director deferral of current compensation, and (ii) make-up matching contributions for officers that would have been made by the Bank under the Savings Plan had the compensation not been deferred. The make-up benefits under the Deferred Compensation Plan vest according to the corresponding provisions of the Savings Plan. The Deferred Compensation Plan liability consists of the accumulated compensation deferrals and accrued earnings on the deferrals, as well as the make-up matching contributions and any accrued earnings on the contributions. The Bank’s obligation for this plan at December 31, 2019, 2018, and 2017, was $49, $41, and $44, respectively.

The Bank provides incentive compensation plans for its employees, including senior officers. Other liabilities include $17 and $14 for incentive compensation at December 31, 2019 and 2018, respectively.