Dear Members,
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IMPORTANT NOTICE OF SAVINGS PLAN CHANGE
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3% DEFINED CONTRIBUTION PLAN FOR EAST FLIGHT ATTENDANTS
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FLIGHT ATTENDANT SEPARATION PACKAGES
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Accessing The Hub
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AFA Local Numbers
IMPORTANT NOTICE OF SAVINGS PLAN CHANGE
On December 5, 2007 the Company mailed an informational packet detailing changes
to the existing 401 (k) Savings Plan. The Company is merging the existing plan
into the US Airways, Inc. Employee Savings Plan effective January 2, 2008.
Fidelity will remain the plan record keeper and trustee services vendor.
The Notification-
The packet contains three items notifying you of the plan merger and changes to
the plan:
1. A letter from Daniel P. Pon, Vice President of Human Resources
outlining the changes to the plan including a new lineup of Core investment
options; new default options; an explanation of the Transition Period and
Calendar of Events; explanation of the new default investment option and
other plan enhancements.
2. Investment Basics Brochure - This brochure describes the basic
concepts of plan investing and provides an investment lineup available for
company sponsored savings plans, effective January 2, 2008.
3. Plan Design Matrix - This document provides plan detail
information, such as Employee Deferrals and Eligibility, Employer
Contributions, and Vesting for Employer Contributions for all employee
groups.
The merging of the 401 (k) Savings Plan into the Employee Savings Plan
does not mean that you have lost your 401 (k) plan nor does it mean that US
Airways controls your money. The money you have in your account and the money
added to it after the plan merger cannot be lost due to a merger, bankruptcy or
liquidation.
This is one step in the Company's desire to offer employees more and better
retirement savings opportunities while lowering the fees you, not the Company,
are charged for each dollar invested. In addition merging the retirement savings
plans will improve the services currently offered, such as loans, plan
accessibility and the ability to view all of your investment sources and
balances in one place.
The Union carefully has carefully reviewed the plan merger to determine
contractual compliance.
The Process
Current plan investment options will be merged into the new plan options as a
result of the plan merger. Some of the investment options are exactly the same
as the existing 401 (k) plan and some are new. The intent is to match the new
options with similar risk and return characteristics of the old options. A
description of each investment option, new or remaining existing is found in the
Investing Basics brochure included in the packet. The description details for
each option what each option is; its goal; what it invests in and who may want
to invest in it.
Prior to the plan merger you have two choices with regard to your account. The
plan has been set up to automatically transfer account balances from existing
plan options into the same or similar options in the new plan or - you can
reallocate your existing balances among the existing options that will then be
transferred to the corresponding new plan options. You don't have to make any
changes if you do not want to, however, it is a good idea to review your current
plan and research some of the new plan options.
The merging of the plans require that for a short period of time you will be
unable to make certain changes to your investment accounts, view your account
balances or make requests for withdrawals or participant loans. The Transition
Period will begin on December 26, 2007 at the time the New York Stock Exchange
closes and is expected to end on January 2, 2008 at 12 noon EST.
Therefore if you want to make changes to your allocations, deferrals or initiate
a withdrawal or loan you will only be able to do so before or after the
Transition Period.
The Transition Period
The Transition Period contains two very important dates- December 26, 2007 and
December 31, 2007.
December 26, 2007 at 4:00 PM EST (or New York Stock Exchange close if
earlier) -
For the purposes of the plan merger you will be unable to change your deferral
elections (the amount of money you elect to contribute from each pay check) and
future investment elections (how that money is invested) from the above date
until the Transition period ends.
December 31, 2007 at 4:00 PM EST (or New York Stock Exchange close if
earlier) -
For the purposes of the plan merger you will be unable to access various account
features such as reallocating existing account balances among the plan's
options; checking account balances; requesting withdrawals or initiating loans
until the Transition period ends.
Once the Transition Period ends you will be able to transfer among investment
options, check your account balance, request withdrawals and distributions,
change deferral elections and initiate participant loans.
Please read carefully the contents of the packet you have received. For
additional details or questions you may refer to the following sources:
The last link provides an additional overview and explanation of the
documents you have recently received from US Airways.
You may also contact AFA MEC Benefits Chair, Paul Frishkorn by phone or email:
Phone - 610-544-2875
Email - PFrishkorn@afausairways.org
DEFINED CONTRIBUTION PLAN FOR EAST FLIGHT ATTENDANTS
The 2004 East Flight Attendant Agreement provides for a Defined Contribution
Plan to begin in January 2008. The plan is not a Company 401 (k) match. Every
Flight Attendant vested in the plan will receive a contribution equal to 3%
multiplied by such Flight Attendant's eligible compensation as defined in the
Company's 401 (k) plan- generally W-2 qualified earnings.
The 3% contribution will be made within ten (10) days of each pay date
beginning with the January 15, 2008 pay check. All Flight Attendants currently
on the property are already vested in the plan. Any new hire Flight Attendants
will be vested after one year of service.
The Defined Contribution is referred to in the packet as a 'non-elective'
Employee Savings Plan Contribution. 'Non-elective is the term used to describe
the fact that all Flight Attendants are entitled to the 3% percent contribution
and do not have to be a participant in any other plan in order to receive the
contribution.
The 3% contribution comes from Company funds-not from your paycheck. The 3% is
based on your earnings, but is a direct deposit of Company money into your
Employee Savings Plan account.
Details regarding your investment options in the Employee Savings Plan for the
3% Defined Contribution will be distributed later this month.
FLIGHT ATTENDANT SEPARATION PACKAGES
As a reminder the deadline for submitting a Separation Package (SEP) application
and bid is Wednesday, December 12, 2007 at 1159PM EST (2359) PHL and PIT Flight
Attendants who are bidding for the SEP and also bid for the February Voluntary
Personal Leaves of Absence (VPLOA) may do so without jeopardizing their SEP bid.
Complete SEP information is available on the hub at:
http://thehub.usairways.com/divisions/operations/inflight/SEP/SEP.htm
You can also view additional SEP information and two SEP Q and A documents on
the AFA website at: www.afausairways.org
Thank you,
Mike Flores, President
The US Airways Master Executive Council
AFA-CWA
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AFA USAirways Website
www.afausairways.org
Accessing The Hub:
http://thehub.usairways.com
Logging in the first time your user name is u0(zero) and your five digit
employee number. Your initial password is the first five digits of your social
security number. Questions about the Hub? Please contact the EDS Help Desk at
336-744-6000 for assistance. More information can also be found HERE.
AFA Local Numbers
Council 40 PIT 412-245-1214
Council 41 DCA 703-212-8090
Council 69 BOS 781-289-8454
Council 70 PHL 215-492-0840
Council 82 LGA 315-736-3483
Council 89 CLT 704-527-0325
New Hotline Number Toll Free: 866-USA-AFA2
US AIRWAYS Benefits Information 800-872-4780
Reply to Inflight: askinflight@usairways.com
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