Pending Federal Reserve Employee Pension Plan Implementation | A-005

[coshjlose]

A-005 | Federal Reserve Employee Pension Plan Implementation​

A MOTION to establish the Federal Reserve Employee Pension Plan (FREPP) Foundation.
1. Establishment
(1) The Federal Reserve Bank hereby establishes the Federal Reserve Employee Pension Plan (FREPP) to provide retirement savings and investment benefits to its employees.
(2) The Federal Reserve Employee Pension Foundation shall be incorporated under the Redmont Corporate Entities Act to hold and administer the Plan's assets.
(3) The Foundation shall be a non-shareholding entity established exclusively for the benefit of participating employees.
2. Governance and Administration
(1) The Foundation shall be governed by three directors appointed by the Federal Reserve Board.
(2) Directors shall be appointed exclusively on the basis of merit, demonstrated competence, and relevant experience. Each director must possess exceptional knowledge, proven financial ability, or substantial relevant experience in investment management, finance, accounting, economics, or pension administration.
(3) Appointments shall follow a competitive, merit-based selection process. No person shall be entitled to appointment by virtue of their employment, political office, or position within the Federal Reserve Bank.
(4) Directors shall act honestly, in good faith, and with the care, diligence, and skill reasonably expected of persons entrusted with the management of pension assets.
(5) Directors shall act honestly, in good faith, and with the care, diligence, and skill reasonably expected of persons entrusted with the management of pension assets.
(6) The Federal Reserve Bank's Accounting Operations and Human Resources Divisions shall administer the Plan on behalf of the Foundation.
(7) The Foundation shall maintain separate financial accounts and individual pension records for participating employees.
3. Investment Mandate
(1) The Foundation shall manage and invest its assets in the best interests of Plan participants, with the objectives of preserving capital, generating prudent investment returns, and ensuring the Plan's ability to meet its financial obligations as they become due.
(2) Investments shall be undertaken with a view to achieving reasonable returns without undue risk of loss, having regard to the Plan's liabilities, liquidity requirements, and obligations to participating employees.
(3) The Foundation shall primarily invest in government bonds, treasury securities, and other conservative financial instruments consistent with its mandate.
(4) The directors shall establish and maintain prudent investment policies, including appropriate limits on investment risk, diversification, and minimum liquidity.
(5) The Foundation shall maintain sufficient liquid assets to meet reasonably anticipated pension withdrawals and distributions.
(6) he Foundation's directors shall regularly review its financial position, investment performance, and ability to satisfy its obligations to participants.
(7) The Fund's assets shall remain separate from the operating funds of the Federal Reserve Bank.
4. Pension Policy
(1) Employee contributions, employer matching, vesting, withdrawals, and distributions shall be governed by the FREPP Policy (A-005).
(2) The Federal Reserve Bank shall fund its obligations under the Plan through its approved budget.
5. Implementation
(1) The Governor is authorized to incorporate the Foundation and establish the arrangements necessary to administer FREPP.
(2) Contributions and investments shall commence only upon satisfaction of applicable registration, licensing, and legal requirements.
(3) This motion shall take effect upon approval by the Federal Reserve Board.