2022-11-15T11:15:53-06:00 2021-12-31 420714325 RSM US LLP 4650 EAST 53RD STREET DAVENPORT IA 528073479 990 2021-01-01 946061277 PACIFIC SERVICE CREDIT UNION PACI 9256095000 1355 WILLOW WAY CONCORD CA 94520 PANSY FONG VP & CONTROLLER 9256095000 2022-11-14 1 PANSY FONG 999009999 JENIFER L CHASE P01306883 5638884000 2022-11-14 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z X VIRGINIA LAMPSON 1355 WILLOW WAY CONCORD CA 94520 168001591 0 X WWW.PACIFICSERVICE.ORG X 1936 CA TO PROVIDE A BROAD RANGE OF LOAN AND DEPOSIT PRODUCTS AND OTHER FINANCIAL SERVICES TO ITS MEMBERS. 9 9 176 15 22839 0 0 0 39967158 40035555 5923226 4795281 1590068 315515 47480452 45146351 174846 175000 5572704 3492548 19486013 20521133 0 0 0 17793184 16355456 43026747 40544137 4453705 4602214 1322398530 1408244390 1142081891 1228143758 180316639 180100632 THE ORGANIZATION IS A FULL SERVICE STATE-CHARTERED CREDIT UNION THAT PROVIDES A BROAD RANGE OF LOAN AND DEPOSIT PRODUCTS AND OTHER FINANCIAL SERVICES TO ITS MEMBERS USING VARIOUS CHANNELS INCLUDING BRANCHES, A CALL CENTER, MOBILE APPLICATIONS, AND THE INTERNET. 0 0 PACIFIC SERVICE CREDIT UNION (PSCU) WAS FOUNDED IN 1936 TO SERVE EMPLOYEES OF PG&E IN THE SAN FRANCISCO BAY AREA. OVER EIGHTY-FOUR YEARS LATER, PSCU NOW SERVES MORE THAN 65,000 MEMBERS WHO LIVE, WORK, WORSHIP OR ATTEND SCHOOL IN ALAMEDA, CONTRA COSTA, FRESNO, MARIN, NAPA, PLACER, SACRAMENTO, SAN FRANCISCO, SAN MATEO, SANTA CLARA, SOLANO AND SONOMA COUNTIES. MEMBERS CAN TRANSACT IN ANY OF OUR SIX BRANCHES, AT ANY OF OVER 5,000 SHARED BRANCH LOCATIONS AVAILABLE THROUGH CO-OP SHARED BRANCH NETWORK, USING ATMS, ONLINE VIA OUR INTERNET HOME BANKING OR MOBILE SITES, USING POINT OF SALE WITH THEIR VISA DEBIT OR CREDIT CARD OR BY CALLING OUR TELEPHONE SERVICE CENTER OR TOLL-FREE AUTOMATED TELEPHONE BANKING SYSTEM. PSCU OFFERS A VARIETY OF DEPOSIT PRODUCTS INCLUDING SAVINGS, CHECKING, MONEY MARKET, CERTIFICATE, IRA, COVERDELL EDUCATION SAVINGS AND YOUTH ACCOUNTS. PSCU CHECKING PRODUCT OPTIONS CAN EARN INTEREST, ARE FREE FROM MONTHLY SERVICE CHARGES, ALLOW THE MEMBER TO OBTAIN RATE DISCOUNTS ON AUTO LOANS OR HELP A YOUNG MEMBER OPEN THEIR FIRST CHECKING ACCOUNT. PSCU'S DEPOSIT RATES ARE COMPETITIVE WITH THE MARKET AND ARE TYPICALLY HIGHER THAN BANKS. TOTAL MEMBER SHARE BALANCE AT DECEMBER 31, 2021 WAS $1,206,233,164. PSCU OFFERS A VARIETY OF COMPETITIVELY PRICED MORTGAGE LOAN OPTIONS AVAILABLE FOR A PRIMARY RESIDENCE OR SECOND HOME. PSCU HOME EQUITY LOAN OPTIONS RANGE FROM 5 TO 15 YEARS, AND MEMBERS MAY ALSO OBTAIN HOME EQUITY LINES OF CREDIT. PSCU OFFERS VEHICLE LOANS FOR NEW AND USED CARS, NEW AND USED BOATS, AS WELL AS NEW AND USED RVS. VISA CREDIT CARD LOANS INCLUDE A NO ANNUAL FEE OPTION AS WELL AS A CARD EARNING REWARDS POINTS. PSCU OFFERS OTHER CONSUMER LOANS FOR MEMBERS SUCH AS PERSONAL SIGNATURE LOANS, AS WELL AS SHARE AND CERTIFICATE SECURED LOANS. FOR OUR MEMBERS WHO ARE STARTING TO BUILD THEIR CREDIT, PSCU OFFERS A STARTER VISA AND A FIRST-TIME AUTO LOAN PROGRAM. TOTAL MEMBER LOAN BALANCE AT DECEMBER 31, 2021 WAS $850,370,747. 0 0 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 12807 0 1 176 1 1 1 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 CA X PANSY FONG VPCONTROLLER 9256095000 1355 WILLOW WAY CONCORD CA 94520 MARIA DEMARTINI CHAIR 2.00 X X 0 0 0 AMAR PANCHAL VICE CHAIR 1.00 X X 0 0 0 JULIA BANNING SECRETARY/TREASURER 1.00 X X 0 0 0 JOHN CADWALADER DIRECTOR 1.00 X 0 0 0 WILLIAM CHEN DIRECTOR 1.00 X 0 0 0 JIM PETERSON DIRECTOR 1.00 X 0 0 0 DAVID SENA DIRECTOR 1.00 X 0 0 0 KATHLEEN TAPPERO DIRECTOR 1.00 X 0 0 0 BETTY VINEYARD DIRECTOR 1.00 X 0 0 0 VIRGINIA LAMPSON PRESIDENT & CEO 40.00 X 642492 0 77008 DAVID KATO EVP & CFO 40.00 X 407469 0 68951 NANNETTE CUTLIFF SVP & CIO 40.00 X 392941 0 48421 CHRIS OLDAG SVP & CLO 40.00 X 381425 0 51419 KRISTIN DOVE SVP & CMO 40.00 X 322730 0 62813 BARBARA SMITH SVP & CAO 40.00 X 317914 0 62115 PANSY FONG VP & CONTROLLER 40.00 X 280956 0 24832 MICHELLE SHELOR SVP & COO 40.00 X 261091 0 37454 MICHELE SPEER VP 40.00 X 304304 0 29674 JEFFREY BELL VP 40.00 X 248804 0 15251 STEVEN CRAIGE VP 40.00 X 246345 0 32622 HEMLATA PATEL VP 40.00 X 230557 0 51056 MAYRA KOURY VP 40.00 X 207975 0 27374 4245003 0 588990 47 0 1 0 NEWGROUND INTERNATIONAL INC PO BOX 6228 CAROL STREAM IL 601976228 NEW HQ PLANNING AND DESIGN 6640404 INSIGHT DIRECT USA INC PO BOX 731069 DALLAS TX 753731069 IT/OPERATIONS 936637 FISERV INC PO BOX 418410 BOSTON MA 022418410 OPERATIONS 664818 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 IT/OPERATIONS 549687 AT&T PO BOX 5019 CAROL STREAM IL 601972019 IT/OPERATIONS 528869 23 INTEREST ON LOANS 522100 32061052 32061052 INTERCHANGE INCOME 522100 5358051 5355381 2670 SERVICE CHARGES & FEES 522100 1714730 1700354 14376 OTHER NON-INTEREST INCOME 522100 901722 895929 5793 40035555 3829419 3829419 1166268 850753 315515 315515 315515 122970349 122004487 965862 965862 965862 45146351 40012716 22839 5110796 175000 3492548 3440029 11872000 589547 3623768 995789 693790 98705 132992 1712 2915881 1102284 2378271 3058107 1506133 183085 102196 890927 MEMBER LOAN SERVICES 3274297 17076 40544137 2455087 2744153 153571705 183387891 330431 2221033 823166394 858556698 1412397 1318240 40989301 9985541 23722220 31003760 293897799 305727085 7421600 7471500 16420897 15814030 1322398530 1408244390 18238043 21910594 1123843848 1206233164 1142081891 1228143758 X 0 0 0 0 180316639 180100632 180316639 180100632 1322398530 1408244390 X 4602214 -5131917 313696 X X 0 1 X 1 0 5000 5000 5000 1 CCUL - PAC 1201 W K STREET SACRAMENTO CA 95814 940329967 5000 0 PART I-A, LINE 1: PACIFIC SERVICE CREDIT UNION MADE A CONTRIBUTION TO CCUL - PAC DURING 2021 TO SUPPORT STATE LEVEL CANDIDATES WHO ARE FRIENDS OF CREDIT UNIONS. 1 4712 6142 28364 -17510 0 12615213 12615213 12711449 3758754 8952695 894348 724429 169919 6385440 5502358 883082 8382851 8382851 31003760 MEMBER SHARE ACCOUNTS 317320959 MEMBER CHECKING ACCOUNTS 186842839 MEMBER MONEY MARKET ACCOUNTS 443666245 MEMBER REGULAR CERTIFICATE ACCOUNTS 258403121 1206233164 X 45997104 0 45997104 -850753 -850753 45146351 41394890 850753 850753 40544137 0 40544137 PART IV, LINE 1B: THE CREDIT UNION IS THE ADMINISTRATOR OF PSEA, PSEVA, PSFCU, AND SJPECU RETIREE MEDICAL BENEFIT TRUST (THE TRUST). ADMINISTRATIVE ACTIVITIES INCLUDE DISBURSING PAYMENTS FOR MEDICAL INSURANCE PREMIUMS, COLLECTING PARTICIPANT CONTRIBUTIONS, MANAGING CASH FLOWS, INVESTING NET ASSETS, PREPARING FINANCIAL STATEMENTS, AND PREPARING TAX RETURNS. AMOUNTS DUE BETWEEN THE CREDIT UNION AND THE TRUST ARE REIMBURSED SEMIANNUALLY. PART X, LINE 2: THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION AS DESCRIBED IN INTERNAL REVENUE CODE (IRC) SECTION 501(C)(14) AND, AS SUCH, IS EXEMPT FROM FEDERAL TAXATION OF INCOME DERIVED FROM THE PERFORMANCE OF ACTIVITIES THAT ARE IN FURTHERANCE OF ITS EXEMPT PURPOSES. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (AS DEFINED IN SECTION 512) DERIVED BY STATE-CHARTERED CREDIT UNIONS. MANY STATES HAVE SIMILAR LAWS. FASB ASC 740-10-65, INCOME TAXES, PROVIDES GUIDANCE FOR HOW UNCERTAIN TAX POSITIONS SHOULD BE RECOGNIZED, MEASURED, DISCLOSED AND PRESENTED IN THE FINANCIAL STATEMENTS. THIS REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE CREDIT UNION'S TAX RETURNS TO DETERMINE WHETHER THE TAX POSITIONS ARE "MORE LIKELY THAN NOT" OF BEING SUSTAINED "WHEN CHALLENGED OR "WHEN EXAMINED" BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS DEEMED TO NOT MEET THE MORE-LIKELY-THAN-NOT THRESHOLD WOULD BE RECORDED AS A TAX EXPENSE AND LIABILITY IN THE CURRENT PERIOD. FOR THE YEAR ENDED DECEMBER 31, 2021, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS, AND ACCORDINGLY, THE CREDIT UNION HAS NOT RECORDED A LIABILITY FOR THE PAYMENT OF INTEREST OR PENALTIES. STATE TAXES, HOWEVER, ARE PAID ON INCOME EARNED BY THE CREDIT UNION IN CALIFORNIA. THE CREDIT UNION IS SUBJECT TO AND PAYS ALL STATE AND CITY TAXES ON GOODS AND SERVICES PURCHASED BY THE CREDIT UNION. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES, RECLASSED FROM FUNCTIONAL EXPENSE -850,753. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES, RECLASSED TO STATEMENT OF REVENUE 850,753. 1 AMERICAN NATIONAL RED CROSS 1663 MARKET STREET SAN FRANCISCO CA 94103 530196605 501(C)(3) 15000 0 CALIFORNIA WILD FIRES CHILDREN'S MIRACLE NETWORK HOSPITALS 205 WEST 700 SOUTH SALT LAKE CITY UT 84101 870387205 501(C)(3) 13000 0 GENERAL PROGRAM SUPPORT FOOD BANK OF CONTRA COSTA COUNTY 4010 NELSON AVE CONCORD CA 94520 942418054 501(C)(3) 30500 0 GENERAL PROGRAM SUPPORT LEUKEMIA & LYMPHOMA SOCIETY 221 MAIN STREET STE 1650 SAN FRANCISCO CA 94105 135644916 501(C)(3) 10000 0 GENERAL PROGRAM SUPPORT LOAVES & FISHES OF CONTRA COSTA 1985 BONIFACIO STREET STE 100 CONCORD CA 94520 680018077 501(C)(3) 10000 0 GENERAL PROGRAM SUPPORT MONUMENT CRISIS CENTER PO BOX 23973 PLEASANT HILL CA 94520 412111171 501(C)(3) 8000 0 GENERAL PROGRAM SUPPORT NPOWER INC 55 WASHINGTON STREET SUITE 560 BROOKLYN NY 11201 134145441 501(C)(3) 10000 0 GENERAL PROGRAM SUPPORT YOUTH HOMES INC 3480 BUSKIRK AVE 210 PLEASANT HILL CA 94523 946132571 501(C)(3) 7000 0 GENERAL PROGRAM SUPPORT 8 0 PART I, LINE 2: THE CHARITABLE CONTRIBUTIONS AMOUNT IN TOTAL IS APPROVED BY THE BOARD IN THE ANNUAL BUDGETING PROCESS. THE CREDIT UNION HAS EMPLOYEE VOLUNTEERS THAT MAKE UP ITS COMMUNITY INVOLVEMENTS COMMITTEE (CIC). CIC MEMBERS MEET MONTHLY TO DISCUSS AND VOTE ON HOW THE BUDGETED FUNDS ARE TO BE SPENT. UPON BOARD APPROVAL DURING THE MONTHLY BOARD MEETING THE FUNDS ARE ISSUED TO THE VARIOUS CHARITABLE ORGANIZATIONS. CONTRIBUTIONS ARE MADE THROUGHOUT THE YEAR. ADDITIONAL CHARITABLE CONTRIBUTIONS MAY OCCUR, AS AUTHORIZED BY THE CEO. PACIFIC SERVICE CREDIT UNION WORKS WITH THE NON-PROFIT ORGANIZATIONS TO REVIEW AND DISUCSS HOW GRANTS FUNDS WILL BE USED. 1 X X 1 1 0 VIRGINIA LAMPSON PRESIDENT & CEO 531667 0 100000 0 10825 0 54038 0 22970 0 719500 0 0 0 DAVID KATO EVP & CFO 347009 0 65784 0 -5324 0 17686 0 51265 0 476420 0 0 0 NANNETTE CUTLIFF SVP & CIO 337508 0 56251 0 -818 0 16927 0 31494 0 441362 0 0 0 CHRIS OLDAG SVP & CLO 325542 0 55807 0 76 0 16025 0 35394 0 432844 0 0 0 KRISTIN DOVE SVP & CMO 276330 0 46924 0 -524 0 17616 0 45197 0 385543 0 0 0 BARBARA SMITH SVP & CAO 272345 0 46466 0 -897 0 16341 0 45774 0 380029 0 0 0 MICHELE SPEER VP 122194 0 23195 0 158915 0 9164 0 20510 0 333978 0 0 0 PANSY FONG VP & CONTROLLER 236250 0 33750 0 10956 0 11517 0 13315 0 305788 0 0 0 MICHELLE SHELOR SVP & COO 225015 0 36000 0 76 0 16454 0 21000 0 298545 0 0 0 HEMLATA PATEL VP 194969 0 27079 0 8509 0 10238 0 40818 0 281613 0 0 0 STEVEN CRAIGE VP 208323 0 29903 0 8119 0 11718 0 20904 0 278967 0 0 0 JEFFREY BELL VP 236900 0 10328 0 1576 0 12215 0 3036 0 264055 0 0 0 MAYRA KOURY VP 185400 0 22500 0 75 0 9353 0 18021 0 235349 0 0 0 PART I, LINES 4A-B MICHELE SPEER RECEIVED A SEVERANCE PAYMENT AND OTHER BENEFITS IN THE AMOUNT OF $158,915. VIRGINIA LAMPSON, PRESIDENT & CEO, BEGAN PARTICIPATING IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN IN AUGUST 2020. TOTAL 2021 CONTRIBUTION EXPENSE OF $36,563 IS REPORTED AS DEFERRED COMPENSATION IN PT VII AND SCHEDULE J, PT II. THERE WERE NO DISTRIBUTIONS IN 2021. FORM 990, PART VI, SECTION A, LINE 6 PACIFIC SERVICE CREDIT UNION HAS MEMBERS AS SPECIFIED IN ITS BYLAWS. FORM 990, PART VI, SECTION A, LINE 7A DIRECTORS OF PACIFIC SERVICE CREDIT UNION ARE ELECTED BY THE MEMBERS AT THE ANNUAL MEETING AND ARE ELECTED TO A THREE YEAR TERM. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 IS REVIEWED IN DETAIL BY THE CREDIT UNION'S CONTROLLER. THE CHIEF FINANCIAL OFFICER REVIEWS FORM 990 FOR COMPLETENESS AND CONSISTENCY WITH THE CREDIT UNION POLICIES AND PROCEDURES. THE CHIEF EXECUTIVE OFFICER AND BOARD OF DIRECTORS ARE PROVIDED A COPY OF FORM 990 BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE EMPLOYEE CONDUCT SECTION OF THE PACIFIC SERVICE CREDIT UNION'S EMPLOYEE HANDBOOK CITES CREDIT UNION OFFICIALS AND EMPLOYEES ARE FIDUCIARIES WHO MUST ACT IN GOOD FAITH IN THE PERFORMANCE OF THEIR DUTIES. EMPLOYEES HAVE AN OBLIGATION TO CONDUCT BUSINESS WITHIN GUIDELINES THAT PROHIBIT ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. THE PURPOSE OF THESE GUIDELINES IS TO PROVIDE GENERAL DIRECTION SO THAT EMPLOYEES CAN SEEK FURTHER CLARIFICATION ON ISSUES RELATED TO THE SUBJECT OF ACCEPTABLE STANDARDS OF OPERATION. - EVERY EMPLOYEE SHALL FULLY AND EFFICIENTLY PERFORM THE DUTIES AND RESPONSIBILITIES OF THEIR POSITION. - EVERY EMPLOYEE MUST ACT IN A MANNER WHICH REFLECTS FAVORABLY UPON THE CREDIT UNION. - EVERY EMPLOYEE MUST MAINTAIN THE HIGHEST STANDARDS OF PERSONAL AND BUSINESS HONESTY, INTEGRITY, IMPARTIALITY, AND CONDUCT. AS SUCH, EMPLOYEES MUST BE VERY CAREFUL THAT THEIR RELATIONSHIPS WITH MEMBERS OR OTHER INDIVIDUALS OR OTHER ACTIVITIES DO NOT SUBJECT THEM OR THE CREDIT UNION TO UNDUE CRITICISM. EMPLOYEES MUST REFRAIN FROM ENGAGING IN ANY ACTIVITY WHICH IS OR COULD BE IN CONFLICT WITH THEIR STATUS AS CREDIT UNION EMPLOYEES. THIS INCLUDES THE USE OF ONE'S RELATIONSHIP WITH THE CREDIT UNION FOR PERSONAL PROFIT OR ADVANTAGE. EMPLOYEES MAY NOT TAKE ADVANTAGE OF OPPORTUNITIES WHICH RIGHTFULLY BELONG TO THE CREDIT UNION. FOR EXAMPLE, EMPLOYEES MAY NOT DIVERT BUSINESS FROM THE CREDIT UNION OR RECEIVE A COMMISSION OR FEE FOR A TRANSACTION THAT THE EMPLOYEE HAS CONDUCTED ON BEHALF OF THE CREDIT UNION. GIFTS, ENTERTAINMENT, AND FAVORS: THE CREDIT UNION EXPECTS ALL OFFICIALS AND EMPLOYEES TO FOLLOW THE HIGHEST ETHICAL STANDARDS IN THE CONDUCT OF CREDIT UNION BUSINESS WITH VENDORS OF GOODS AND SERVICES TO THE CREDIT UNION AND IN THE CONDUCT OF ALL MEMBER FINANCIAL TRANSACTIONS WITH THE CREDIT UNION. OFFICIALS AND EMPLOYEES SHOULD BE MINDFUL OF THE FEDERAL BANK BRIBERY ACT, WHICH STATES: "WHOEVER, AS AN OFFICER, DIRECTOR, EMPLOYEE, AGENT, OR ATTORNEY OF A FINANCIAL INSTITUTION, CORRUPTLY SOLICITS OR DEMANDS FOR THE BENEFIT OF ANY PERSON, OR CORRUPTLY ACCEPTS OR AGREES TO ACCEPT, ANYTHING OF VALUE FROM ANY PERSON, INTENDING TO BE INFLUENCED OR REWARDED IN CONNECTION WITH ANY BUSINESS OR TRANSACTION OF SUCH INSTITUTION, SHALL BE GUILTY OF AN OFFENSE." THE CREDIT UNION EXPECTS STRICT COMPLIANCE. IN GENERAL, CREDIT UNION EMPLOYEES, OFFICERS, DIRECTORS, COMMITTEE MEMBERS, AGENTS, AND ATTORNEYS ARE PROHIBITED FROM (1) SOLICITING FOR THEMSELVES OR FOR A THIRD PARTY ANYTHING OF VALUE FROM ANYONE IN RETURN FOR ANY BUSINESS, SERVICE, OR CONFIDENTIAL INFORMATION OF THE CREDIT UNION AND FROM (2) ACCEPTING ANYTHING OF VALUE FROM ANYONE IN CONNECTION WITH THE BUSINESS OF THE CREDIT UNION EITHER BEFORE OR AFTER A TRANSACTION IS DISCUSSED OR COMPLETED. THE FOLLOWING POLICY APPLIES WITH RESPECT TO OTHER GIFTS RECEIVED BY THE CREDIT UNION, ITS OFFICIALS, AND ITS EMPLOYEES: - MEMBERS OF THE BOARD OF DIRECTORS OR SUPERVISORY COMMITTEE, ADVISORY DIRECTORS, AND EMPLOYEES OF THE CREDIT UNION ARE AUTHORIZED TO ACCEPT GIFTS ON BEHALF OF THE CREDIT UNION PROVIDED THAT ANY GIFT TO THE CREDIT UNION MUST BE REPORTED TO THE PRESIDENT/CEO. SUCH GIFTS, WHICH ARE ACCEPTED BY THE ABOVE PERSONS ON BEHALF OF THE CREDIT UNION, MUST BE DELIVERED TO THE CREDIT UNION OFFICE FOR USE BY THE CREDIT UNION AS DEEMED APPROPRIATE. - MEMBERS OF THE BOARD OF DIRECTORS OR SUPERVISORY COMMITTEE, ADVISORY DIRECTORS, AND EMPLOYEES OF THE CREDIT UNION MAY RECEIVE AND KEEP PERSONAL GIFTS IN CONNECTION WITH THE CREDIT UNION ACTIVITIES WITH A VALUE OF $50 OR LESS. - IF THE VALUE OF THE ITEM IS GREATER THAN $50, IT MUST BE REPORTED TO THE PRESIDENT/CEO FOR DETERMINATION AS TO WHETHER THE PERSON MAY RETAIN THE GIFT OR IF THE GIFT SHOULD BE RETURNED OR DELIVERED TO THE CREDIT UNION. A BREACH OF THESE POLICIES MAY SUBJECT THE INDIVIDUAL TO DISCIPLINE, UP TO AND INCLUDING TERMINATION. THIS POLICY DOES NOT APPLY TO EDIBLE ITEMS OR TO REASONABLE COST MEALS AND ENTERTAINMENT OR THE RECEIPT OF GIFTS OF ADVERTISING SPECIALTY ITEMS SUCH AS PENS, KEY CHAINS, OR CALENDARS, AND THE LIKE FROM VENDORS. THIS POLICY DOES NOT APPLY TO GIFTS WHICH ARE CLEARLY BASED UPON FAMILY OR PERSONAL RELATIONSHIPS (EVEN THOUGH FAMILY MEMBERS OR PERSONAL FRIENDS ARE CREDIT UNION MEMBERS) OR TO GIFTS OF REASONABLE VALUE GIVEN IN CONNECTION WITH COMMONLY-RECOGNIZED OCCASIONS, SUCH AS PROMOTIONS, WEDDINGS, RETIREMENT, CHRISTMAS, OR BAR/BAT MITZVAHS. IT ALSO DOES NOT APPLY TO CIVIC, CHARITABLE, EDUCATIONAL, OR RELIGIOUS ORGANIZATIONAL AWARDS FOR RECOGNITION OF SERVICE AND ACCOMPLISHMENT. PARTICIPATION AND DETERMINATION/FULL DISCLOSURE POLICY: IT IS THE CREDIT UNION'S POLICY THAT TRANSACTIONS SHALL BE CARRIED OUT BY DIRECTORS, COMMITTEE MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES OF THE CREDIT UNION IN THE BEST INTERESTS OF THE CREDIT UNION. NO DIRECTOR, COMMITTEE MEMBER, OFFICER, AGENT, OR EMPLOYEE OF THIS CREDIT UNION SHALL IN ANY MANNER, DIRECTLY OR INDIRECTLY, PARTICIPATE IN THE DELIBERATION UPON, OR THE DETERMINATION OF, ANY CREDIT UNION BUSINESS AFFECTING THEIR PECUNIARY INTEREST OR THE PECUNIARY INTEREST OF ANY CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH HE OR SHE IS DIRECTLY OR INDIRECTLY INTERESTED. BEYOND THIS PROHIBITION ON PARTICIPATION AND DETERMINATION, IT IS THE POLICY OF THE CREDIT UNION THAT EACH DIRECTOR, COMMITTEE MEMBER, OFFICER, AGENT, AND EMPLOYEE SHALL INFORM THE APPROPRIATE LEVEL OF CREDIT UNION AUTHORITY (THAT IS, THE BOARD OF DIRECTORS, SUPERVISORY COMMITTEE, OR PRESIDENT/CEO), OF ANY PERSONAL INTEREST, PECUNIARY OR OTHERWISE, THAT HE OR SHE MAY HAVE IN BUSINESS AFFECTING THE CREDIT UNION. SUCH DIRECTOR, COMMITTEE MEMBER, OFFICER, AGENT, OR EMPLOYEE SHALL BE DISQUALIFIED FROM FURTHER CREDIT UNION DELIBERATION AND/OR DETERMINATION ON THE MATTER IN QUESTION UNLESS FURTHER PARTICIPATION IS PERMITTED BY THE BOARD, SUBJECT TO THE LIMITATIONS OF FEDERAL AND STATE LAW AND REGULATION. FAILURE TO PROPERLY DISCLOSE A PERSONAL INTEREST (PECUNIARY OR NOT) IN A CREDIT UNION TRANSACTION SHALL BE CONSTRUED AS A BREACH OF THIS POLICY AND MAY SUBJECT THE INDIVIDUAL TO DISCIPLINE, UP TO AND INCLUDING TERMINATION. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS REVIEWS INDEPENDENT THIRD PARTY EXECUTIVE COMPENSATION SURVEYS AND DETERMINES APPROPRIATE COMPENSATION FOR THE CEO. THE BOARD OF DIRECTORS APPROVES THE CREDIT UNION'S ANNUAL SALARY BUDGET. SALARY RANGES FOR ALL POSITIONS ARE MAINTAINED TO REFLECT MARKET SALARIES BASED ON PARTICIPATION IN INDUSTRY SURVEYS. TOP MANAGEMENT AND KEY EMPLOYEES' SALARIES ARE INITIALLY WITHIN THE RANGE FOR THAT POSITION, BASED ON THE EMPLOYEE'S EXPERIENCE, AND ADJUSTED ANNUALLY ACCORDING TO PERFORMANCE MANAGEMENT AND BUDGET CONSTRAINTS. THE BOARD OF DIRECTORS MAINTAINS CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING FOR DELIBERATIONS AND DECISIONS REGARDING COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 THE CREDIT UNION MAKES ITS BY-LAWS AVAILABLE TO MEMBERS UPON REQUEST. POLICIES AND PROCEDURES ARE NOT GENERALLY MADE AVAILABLE TO THE PUBLIC. A MONTHLY BALANCE SHEET AND INCOME STATEMENT ARE POSTED IN THE CREDIT UNION'S BRANCHES. ANNUAL FINANCIAL STATEMENTS ARE PUBLISHED IN THE ANNUAL REPORT. AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO MEMBERS UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). FORM 990, PART XI, LINE 9: RECLASS ADJ FOR NET GAINS INCLUDED IN NET INCOME -231,515. POSTRETIREMENT EMPLOYEE BENEFIT PLANS - ACTUARIAL GAIN OCCURRED DURING YR 442,983. POSTRETIREMENT EMPLOYEE BENEFIT PLANS - AMORTIZATION OF ACTUARIAL LOSS 102,228. FORM 990, PART XII, LINE 2C THE OVERSIGHT AND SELECTION PROCESS HAS NOT CHANGED FROM THE PRIOR TAX YEAR. PSEA PSEBA PSFCU AND SJPECU RETIREE MEDICAL BENEFITS PLAN TRUST PO BOX 8191 WALNUT CREEK CA 945968191 680383491 RETIREE MEDICAL BENEFIT TRUST CA N/A T 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0