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Employee Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Net Funded Status [Table Text Block]

Table 18.1 - Pentegra Defined Benefit Plan Net Pension Cost and Funded Status (dollars in thousands)

	For the Year Ended December 31,
	2019				2018				2017
Net pension cost	$	6,559			$	6,472			$	6,727
Pentegra Defined Benefit Plan funded status as of July 1⁽¹⁾	108.6		%	⁽²⁾	111.0		%	⁽³⁾	111.8		%
Our funded status as of July 1⁽¹⁾	113.9		%		123.1		%		122.9		%

______________________

(1)

The funded status is calculated in accordance with a provision contained in the Highway and Transportation Funding Act of 2014 (HATFA), which was signed into law on August 8, 2014, and which modifies the interest rates that had been set by the Moving Ahead for Progress in the 21st Century Act (MAP-21). MAP-21, signed into law in 2012, changed the calculation of the discount rate used in measuring the pension plan liability. MAP-21 allows plan sponsors to measure the pension plan liability using a 25-year average of interest rates plus or minus a corridor. Prior to MAP-21, the discount rate used in measuring the pension plan liability was based on the 24-month average of interest rates. HATFA amended MAP-21 by extending the time period and reducing the rate at which the 25-year corridors widen. Over time, the pension funding stabilization effect of MAP-21 will decline because the 24-month smoothed segment rates and the amended 25-year corridors are likely to converge.

(2)

The funded status as of July 1, 2019, is preliminary and may increase because the plan's participants were permitted to make contributions for the plan year ended June 30, 2019, through March 15, 2020. Contributions made on or before March 15, 2020, and designated for the plan year ended June 30, 2019, will be included in the final valuation as of July 1, 2019. The final funded status as of July 1, 2019, will not be available until the Form 5500 for the plan year July 1, 2019, through June 30, 2020 is filed. This Form 5500 is due to be filed no later than April 2021.

(3)

The funded status as of July 1, 2018, is preliminary and may increase because the plan's participants were permitted to make contributions for the plan year ended June 30, 2018, through March 15, 2019. Contributions made on or before March 15, 2019, and designated for the plan year ended June 30, 2018, will be included in the final valuation as of July 1, 2018. The final funded status as of July 1, 2018, will not be available until the Form 5500 for the plan year July 1, 2018, through June 30, 2019 is filed. This Form 5500 is due to be filed no later than April 2020.

Change in Benefit Obligation [Table Text Block]

Table 18.2 - Pension and Postretirement Benefit Obligation, Fair Value of Plan Assets, and Funded Status (dollars in thousands)

	Nonqualified Supplemental Defined Benefit Retirement Plan						Postretirement Benefits
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Change in benefit obligation ⁽¹⁾
Benefit obligation at beginning of year	$	22,321		$	19,366		$	955		$	1,056
Service cost	1,235			1,490			38			45
Interest cost	699			654			42			37
Actuarial loss	1,874			831			321			(161		)
Benefits paid	(6		)	(5		)	(17		)	(22		)
Settlements	—			(15		)	—			—
Benefit obligation at end of year	26,123			22,321			1,339			955

Change in plan assets
Fair value of plan assets at beginning of year	—			—			—			—
Employer contribution	6			20			17			22
Benefits paid	(6		)	(5		)	(17		)	(22		)
Settlements	—			(15		)	—			—
Fair value of plan assets at end of year	—			—			—			—
Funded status at end of year	$	(26,123	)	$	(22,321	)	$	(1,339	)	$	(955	)

______________________

(1)

Represents the projected benefit obligation for the nonqualified supplemental defined benefit retirement plan and the accumulated postretirement benefit obligation for postretirement benefits.

Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block]

Table 18.3 - Pension and Postretirement Benefits Recognized in Accumulated Other Comprehensive Loss (dollars in thousands)

	Nonqualified Supplemental Defined Benefit Retirement Plan				Postretirement Benefits
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Net actuarial loss	$	6,223	$	4,920	$	437	$	123
Prior service cost	148		234		—		—
Total	$	6,371	$	5,154	$	437	$	123

Net Periodic Benefit Cost [Table Text Block]

Table 18.4 - Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (dollars in thousands)

	Nonqualified Supplemental Defined Benefit Retirement Plan									Postretirement Benefits
	2019			2018			2017			2019			2018			2017
Net Periodic Benefit Cost
Service cost	$	1,235		$	1,490		$	1,179		$	38		$	45		$	38
Interest cost	699			654			600			42			37			36
Amortization of prior service cost	86			86			86			—			—			—
Amortization of net actuarial loss	571			1,248			676			7			15			8
Net periodic benefit cost	2,591			3,478			2,541			87			97			82

Other Changes in Benefit Obligations Recognized in Accumulated Other Comprehensive Loss
Amortization of prior service cost	(86		)	(86		)	(86		)	—			—			—
Amortization of net actuarial loss	(571		)	(1,248		)	(676		)	(7		)	(15		)	(8		)
Net actuarial loss (gain)	1,874			831			459			321			(161		)	127
Total amount recognized in other comprehensive income	1,217			(503		)	(303		)	314			(176		)	119
Total amount recognized in net periodic benefit cost and other comprehensive income	$	3,808		$	2,975		$	2,238		$	401		$	(79	)	$	201

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

Table 18.4 - Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (dollars in thousands)

	Nonqualified Supplemental Defined Benefit Retirement Plan									Postretirement Benefits
	2019			2018			2017			2019			2018			2017
Net Periodic Benefit Cost
Service cost	$	1,235		$	1,490		$	1,179		$	38		$	45		$	38
Interest cost	699			654			600			42			37			36
Amortization of prior service cost	86			86			86			—			—			—
Amortization of net actuarial loss	571			1,248			676			7			15			8
Net periodic benefit cost	2,591			3,478			2,541			87			97			82

Other Changes in Benefit Obligations Recognized in Accumulated Other Comprehensive Loss
Amortization of prior service cost	(86		)	(86		)	(86		)	—			—			—
Amortization of net actuarial loss	(571		)	(1,248		)	(676		)	(7		)	(15		)	(8		)
Net actuarial loss (gain)	1,874			831			459			321			(161		)	127
Total amount recognized in other comprehensive income	1,217			(503		)	(303		)	314			(176		)	119
Total amount recognized in net periodic benefit cost and other comprehensive income	$	3,808		$	2,975		$	2,238		$	401		$	(79	)	$	201

Defined Benefit Plan, Assumptions [Table Text Block]

Table 18.5 - Pension and Postretirement Benefit Plan Key Assumptions

	Nonqualified Supplemental Defined Benefit Retirement Plan				Postretirement Benefits
	2019		2018		2019		2018
Benefit obligation
Discount rate	2.68	%	3.81	%	3.25	%	4.25	%
Salary increases	5.50	%	5.50	%	—		—

Net periodic benefit cost
Discount rate	3.81	%	3.09	%	4.25	%	3.64	%
Salary increases	5.50	%	5.50	%	—		—

Schedule of Expected Benefit Payments [Table Text Block]

Table 18.6 - Estimated Future Benefit Payments (dollars in thousands)

	Estimated Future Payments
	Nonqualified Supplemental Defined Benefit Retirement Plan		Postretirement Benefits
2020	$	6,066	$	18
2021	2,459		19
2022	1,900		21
2023	2,464		23
2024	4,083		26
2025-2029	9,268		168