Affirmative Resolution (January 1, 2006)
As of January 1, 2006 we have a pension replacement plan that provides for a new avenue to achieve retirement security. In order to obtain the full value of the Plan, we must take an active role in retirement planning and participate with our own earnings in order to receive the full contribution from the company.
Doubling the company’s original proposal, there are two major components of the new Defined Contribution Plan: direct and matching company contributions.
Direct Contributions
The company will make monthly direct contributions equal to a percentage of Flight Attendant’s based on the following schedule:
| Effective Date | Hired Prior to January 1, 2006 | Hired After January 1, 2006** |
|---|---|---|
| January 1, 2006 | 2.0% of annual Earnings* | 0.0% of annual Earnings* |
| January 1, 2007 | 2.5% of annual Earnings | 1.0% of annual Earnings |
| January 1, 2008 | 3.0% of annual Earnings | 2.0% of annual Earnings |
| January 1, 2009 | 3.0% of annual Earnings | 3.0% of annual Earnings |
*Earnings include base pay, holiday pay, sick pay, vacation pay, overrides and premiums.
**There is a three year company contribution vesting schedule for Flight Attendants hired after January 1, 2006.
Matching Contributions
As of January 1, 2006, United will match Flight Attendant pre-tax contributions, dollar-for-dollar, up to 3% of a Flight Attendant’s annual Earnings. Company contributions will be made twice a month. Not later than ninety (90) days following the end of the Plan Year the company will perform a look-back to insure the Company Matching Contributions equal up to 3% percent of Earnings on an annualized monthly basis.
Between January 1, 2006 and June 30, 2006, all Flight Attendants will receive the Company Matching Contribution of 3% of Earnings regardless of Flight Attendant participation in the Plan. After June 30, 2006 a Flight Attendant must contribute to the Plan in order to receive the Company’s Matching Contribution.
Full Participation in the Plan
Don’t leave a dollar on the table. There’s no bank in the world that will provide 100% return on your investment, but that’s what this plan will do for you up to 3% of your annual Earnings. Call Fidelity Investments at 800-245-9034 or go to www.401k.com to set up your contributions and manage your account. If you were already contributing at least 3% of your Earnings to your 401(k) account, there is no need to change a thing. In order to change your pre-tax payroll deductions:
- Log in at the www.401k.com homepage.
- Once signed on to your personal account, select the tab at the top of the page that reads “Savings & Retirement.”
- In addition to account detail and investment options, there is a drop down box that reads, “Select Action.” Click on the down arrow to find and select “Payroll Deductions.”
- On the next page select a link under “Manage Your Regular Deductions” and determine how you want to change your personal 401(k) contributions.
The full value of direct and matching company contributions will be 6% of a Flight Attendant’s Earnings within two years for those hired prior to January 1, 2006 and within three years for Flight Attendants hired after January 1, 2006.
Contribution Alternatives for Locations outside the United States
If it is not economically or legally possible to establish 401(k)-similar tax deferred arrangements for non-US citizens in locations outside the United States, the company will provide cash payments equal to the full value of company direct and matching contributions.
View complete information about the Flight Attendant Defined Contribution Plan at www.unitedafa.org.
