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A portion of the increase in the 1993 benefit expense is due to FAS 106.

APPENDIX 3

Detailed Response to Questions 3b and 3C

The attached table provides information on the three formal EEO complaints (i.e.,

those filed with authorities outside the Bank) in 1992. With regard to the number of

informal EEO complaints (which we define as those addressed internally by the EEO

Office or Personnel Department), there was one informal complaint in 1992.

In response to question 3c, the attached table contains a breakdown of the nature of the allegations in the formal and informal complaints, the agency with which the

complaint was filed and the current status of the complaint.

Detailed Response to Question 3a

Complaint Resolution Process

In order to ensure sufficient and varied outlets for the airing of employee

concerns, the Bank has established four means for resolving grievances or

complaints. An employee may discuss his/her grievance with any or all of the

following:

the employee's area or local management (supervisor, assistant chiet,

chief or officer),

the Equal Employment Opportunity officer at the Head Office or at the

Buffalo Branch, or Equal Employment Opportunity specialist,

the ombudsman at the Head Office or the Buffalo Branch, or one of four

deputy ombudspersons, and

officers and counselors in the Personnel Department.

EEO Office

The Bank's Equal Employment Opportunity (EEC) officer and the EEO

specialist are responsible for investigating and resolving any employee grievance or

complaint brought to their attention alleging discrimination based on race, color,

religion, national origin, sex, sexual orientation, age or disability. Such grievances are

expected to receive prompt and careful attention, to be investigated fully and

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