Pension and Postretirement Benefit Plans

Qualified Defined Benefit Multi-employer Plan. The FHLB participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Defined Benefit Plan), a tax-qualified defined benefit pension plan. Under the Pentegra Defined Benefit Plan, contributions made by one participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. The Pentegra Defined Benefit Plan covers substantially all officers and employees of the FHLB who meet certain eligibility requirements. Contributions to the Pentegra Defined Benefit Plan charged to compensation and benefit expense were $1,644,000 and $1,685,000 in the three months ended June 30, 2017 and 2016, respectively, and $3,289,000 and $3,370,000 in the six months ended June 30, 2017 and 2016, respectively.

Qualified Defined Contribution Plan. The FHLB also participates in the Pentegra Defined Contribution Plan for Financial Institutions, a tax-qualified, defined contribution pension plan. The FHLB contributes a percentage of the participants' compensation by making a matching contribution equal to a percentage of voluntary employee contributions, subject to certain limitations. The FHLB contributed $268,000 and $237,000 in the three months ended June 30, 2017 and 2016, respectively, and $721,000 and $624,000 in the six months ended June 30, 2017 and 2016, respectively.

Nonqualified Supplemental Defined Benefit Retirement Plan (Defined Benefit Retirement Plan). The FHLB maintains a nonqualified, unfunded defined benefit plan. The plan ensures that participants receive the full amount of benefits to which they would have been entitled under the qualified defined benefit plan in the absence of limits on benefit levels imposed by the IRS. There are no funded plan assets. The FHLB has established a grantor trust, which is included in held-to-maturity securities on the Statements of Condition, to meet future benefit obligations and current payments to beneficiaries.

Postretirement Benefits Plan. The FHLB also sponsors a postretirement benefits plan that includes health care and life insurance benefits for eligible retirees. Future retirees are eligible for the postretirement benefits plan if they were hired prior to August 1, 1990, are age 55 or older, and their age plus years of continuous service at retirement are greater than or equal to 80. Spouses are covered subject to required contributions. There are no funded plan assets that have been designated to provide postretirement benefits.

Table 16.1 - Net Periodic Benefit Cost (in thousands)



	Three Months Ended June 30,
	Defined Benefit Retirement Plan				Postretirement Benefits Plan
	2017		2016		2017		2016
Net Periodic Benefit Cost
Service cost	$	237	$	200	$	7	$	13
Interest cost	359		347		48		54
Amortization of net loss	509		698		2		11
Net periodic benefit cost	$	1,105	$	1,245	$	57	$	78

	Six Months Ended June 30,
	Defined Benefit Retirement Plan				Postretirement Benefits Plan
	2017		2016		2017		2016
Net Periodic Benefit Cost
Service cost	$	441	$	365	$	14	$	25
Interest cost	684		659		98		109
Amortization of net loss	850		1,158		3		23
Net periodic benefit cost	$	1,975	$	2,182	$	115	$	157