Federal Home Loan Bank of Boston
07/03/2024 | Press release | Distributed by Public on 07/03/2024 08:51
Material Agreement Form 8 K
Item 1.01 Entry into a Material Definitive Agreement
On June 27, 2024, Federal Home Loan Bank of Boston (the "Bank") entered into an acceptance agreement (the "Acceptance Agreement") with Midland National Life Insurance Company (the "Insurer"). Under the Acceptance Agreement, the Bank purchased a non-participating, single premium, separate account group annuity contract (the "Annuity Contract") and transferred to the Insurer the future benefit obligations and annuity administration for approximately 369 participants ("Participants") under the Pentegra Defined Benefit Pension Plan for Financial Institutions (the "Plan").
Upon payment of the single premium to the Insurer on June 28, 2024 (the "Transaction"), the Bank transferred the benefit payment responsibilities from the Plan to the Insurer, subject to certain conditions set forth in the Acceptance Agreement. Participants will continue to receive benefits from the Plan through July 31, 2024. After July 31, 2024, the Insurer will assume responsibility for payment of benefits to the Participants and for administrative and customer service support regarding such benefits.
The purchase of the Annuity Contract was funded directly by assets of the Plan. The Bank did not incur any expenses or use any Bank assets in connection with the Transaction. Benefits payable to the Participants are not being changed as a result of the Transaction.