• Further Explanations of the ACIP/Profit Sharing Contribution Program
• Accessing The Hub

• AFA Local Numbers

Further Explanations of the ACIP/Profit Sharing Contribution Program

Some discussions took place regarding the special contribution percentage process that was developed in order to give employees an opportunity to elect to defer a portion of their Profit Sharing or ACIP payment.  It was determined that the special election process contained a design feature that was not favorable towards the employees. Given that this special election process was created to help our employees save more for their retirement, the decision was to make a change.
 
It was communicated with you that if an employee wanted to defer a portion of their Profit Sharing or ACIP payment that they had to make a special election or noting would be deferred from their special payment.  This is no longer the case.
 
NEW DESIGN FEATURE
Effective immediately, if an employee is currently contributing to a company sponsored savings plan and they want the same deferral percentage deducted from their special payment, then they do not have to do anything. The deferral percentage that is on file at the time that the special payment is processed is what will be deducted from the special payment.
 
If an employee wants a different contribution percentage deducted from their special payment, versus the contribution percentage that is already on file, then they must contact Fidelity Investments and elect a different contribution percentage.  If an employee elects this option then the contribution percentage elected will only be deducted from the special payment.
 
NEW COMMUNICATIONS
The information below was published yesterday in "About US" and contains information regarding the new design feature.  Also below is the revised version of the Q&A that contains an explanation of the new design feature and can be found on theHub and Compass.
 
INCREASE FUNDING FOR YOUR RETIREMENT BY ELECTING TO CONTRIBUTE TO YOUR 401(K)
As we announced during the last State of the Airline, US Airways will be making Annual Cash Incentive Program (ACIP) or Profit Sharing payments in March 2008. These payments are 401(k) eligible if you make a separate and timely ACIP or Profit Sharing contribution election. You will have the opportunity to make a deferral election for your ACIP or Profit Sharing payment between 8:30 a.m. Eastern Time on Monday, Feb. 18 and 4  p.m. Eastern Time on Wednesday, Feb. 27.
 
To make this election, go to www.usairways401ksavingsplans.com. Click on the link, "ACIP/Profit Sharing Contribution Elections" located on the bottom left corner. After you login on NetBenefits®, select "Regular Deductions" and then enter your election in the "Profit Sharing & Bonus section. If you do not want to defer your ACIP or Profit Sharing Payment then you must enter 0% as your election.  If you do not elect 0%, then the contribution percentage election that you currently have on file for your regular paychecks will be taken. You can also call the Fidelity Service Center for US Airways at 1-800-354-3412 to make your election. For more info and a Q&A session on how to go about making elections, please visit the Retirement section of the theHub and Compass.
 
If anyone has any questions, please call me directly at (480) 693-8692 or send an email to www.retirement.benefits@usairways.com.
 
Regards,
 
Tom Antonielli
Director, Retirement Planning and Administration

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IMPORTANT NOTICE OF SAVINGS PLANS ELECTION

February 14, 2008

To Plan Participants in the: US Airways, Inc. Employee Savings Plan
Future Care: The America West Airlines 401(k) Plan
US Airways, Inc. 401(k) Savings Plan for Pilots

Re: Annual Cash Incentive Program (ACIP) and Profit Sharing Contribution Elections

As we announced during the last State of the Airline, US Airways will be making Annual Cash Incentive Program (ACIP) or Profit Sharing payments in March 2008. This is a great opportunity to increase funding for your retirement. Here are some FAQs to help you take advantage of this extra income:

What is the ACIP and Profit Sharing deferral election?
It is a new opportunity to contribute some of your US Airways ACIP or profit sharing payments into your US Airways 401(k) Savings Plan without impacting deferrals from your regular paycheck.

I participate in my US Airways 401(k) Savings Plan. Will my current contribution elections apply to the ACIP or Profit Sharing contributions?
Yes. Your current elections will apply to the ACIP or Profit Sharing contributions. If you take no action, then the contribution election percentage that you currently have on file for your regular paychecks will be taken.

When can I make my election?
You will have the opportunity to make the deferral election for the ACIP or Profit Sharing Contribution between 8:30 a.m. ET on Monday, Feb. 18 and 4:00 p.m. ET on Wednesday, Feb. 27.

How do I make an election to change my deferral election of my ACIP or Profit Sharing payments?
It's simple! Go to www.usairways401ksavingsplans.com.

• Click on the link, "ACIP/Profit Sharing Contribution Elections" located on the bottom left corner.
• After you login on NetBenefits®, select "Regular Deductions" and then enter your election in the "Profit Sharing & Bonus section.
• You may also call the Fidelity Service Center for US Airways at 1-800-354-3412 and make your contribution election.
  Please note that when you contact the Fidelity Service Center for US Airways, you must specify that you are making a deferral election for the Profit Sharing or ACIP payment. You can elect to contribute on either a pre-tax, after-tax or catch- up basis. Catch-up contributions are permitted for those participants who are age 50 or older in 2008.

What percentage of my ACIP or Profit Sharing payment can I defer?
You must contribute using a whole percentage in 1 percent increments (not a partial percentage like 5.5 percent). The maximum percentage you can contribute is determined by the Plan you participate in. The US Airways, Inc. Employee Savings Plan and the Future Care: The America West Airlines 401(k) Plan permit a maximum deferral rate of 50 percent. The US Airways, Inc. 401(k) Savings Plan for Pilots permits a maximum deferral rate of 100 percent. All Plans have a maximum catch-up contribution rate of 50 percent. If you choose to make after-tax contributions, the maximum contribution rate is 50 percent for all Plans, except the US Airways, Inc. 401(k) Savings Plan for Pilots (100 percent rate limit) and the Future Care: The America West Airlines 401(k) Plan, where after-tax contributions are permitted, for Pilots only.

Are deferrals from the ACIP and Profit Sharing payment eligible for company match?
If you are part of an employee group that is eligible for a company matching contribution then you will receive the appropriate match if you have pre-tax deferrals deducted from your payment.

Will I receive the company's non-elective contribution?
If you are part of an employee group that is eligible for a company non-elective contribution, you will receive a non-elective contribution regardless if you are contributing to the plan or not. The amount of the non-elective company contribution will be based on the percentage assigned to your employee group.

What if I am not currently contributing to my 401(k) account but would like to defer my ACIP or Profit Sharing Payment into my 401(k) Savings Plan?
If you are not currently contributing to the company sponsored 401(k) Savings Plan and would like to make a deferral election for this payment, then you must contact Fidelity Investments at 1-800-354-3412 and make an election.

What if I do not want to defer my ACIP or Profit Sharing Payment into my 401(k) Savings Plan but am currently deferring to my regular paychecks?
If you do not want to defer your ACIP or Profit Sharing Payment then you must contact Fidelity Investments at 1-800-354-3412 or log into your account online and enter 0% under the special Profit Sharing / ACIP section as your election. If you do not elect 0%, then the contribution percentage election percentage that you currently have on file for your regular paychecks will be taken.

Where can I go for more information?
If you have any questions, please access the new US Airways 401(k) Savings Plan website at www.usairways401ksavingsplans.com. Click on "Login to your account" located at the top of the page. You will then be redirected to Fidelity NetBenefits® where you may then log in. You may also call the Fidelity Service Center for US Airways at 1-800-354-3412. Service Center Representatives are available 8:30 a.m. - Midnight ET, Monday through Friday.

Thank you,

Mike Flores, President
The US Airways Master Executive Council
AFA-CWA

~~~~~~~~~~~~~~~~~

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

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