• DEFINED CONTRIBUTION PLAN AND THE US AIRWAYS EMPLOYEE SAVINGS PLAN
• INSURANCE CARDS

• Accessing The Hub

• AFA Local Numbers

DEFINED CONTRIBUTION PLAN AND THE US AIRWAYS EMPLOYEE SAVINGS PLAN
Below are some answers to frequently asked questions regarding the new Employee Savings Plan.

Q- When I log on to my NetBenfits account I see all of the funds in my account listed under the US Airways Defined Contribution Retirement Program (DCRP)-what happened to my 401 (k)?
A- Your 401 (k) is still there. The Company merged all of the retirement plans and programs into the US Airways Employee Savings Plan. This is a name change only.

Q- Why is the plan name listed as the US Airways Defined Contribution Retirement Program (DCRP) and not the Employee Savings Plan?
A- The US Airways Defined Contribution Retirement Program (DCRP) has been in existence for years. It was comprised of the Employee Savings Plan and the Employee Pension Plan. When the various retirement plans were recently merged, the Company sent out information referring to all the plans being consolidated into the US Airways Employee Savings Plan. Fidelity never changed the name of the DCRP and therefore your account still is listed under the DCRP. The Company is working with Fidelity to change the name to avoid any confusion.

Q- How can I tell where my money is?
A- When you log on to the Fidelity NetBenefits page and click on the US Airways Defined Contribution Retirement Program you will be directed to a "Summary" page that details your account balance. At the top of the "Summary" page the account will be listed as "Employee Savings". On the "Summary" page you will also see a tab called "Sources". Clicking on the "Sources" tab will reveal where your money is- in this case your 401 (k) plan.

Q- What about the 3% Defined Contribution the Company is going to begin contributing to Flight Attendants in January of 2008?
A- The Company will begin contributing an amount equivalent to 3% of your earnings (generally defined as w-2 income) within 10 days after each pay date beginning with the January 15, 2008 paycheck. This Defined Contribution (DC) will be paid to each vested Flight Attendant (all Flight Attendants on the System Seniority List as of January 10, 2005 are 100% vested) in the plan regardless of their participation in the 401(k) savings plan. If you are currently a 401(k) participant the 3% contribution will be invested in the same funds/investment vehicles your 401(k) contributions are invested in. If you are not a 401(k) participant the 3% contribution will be invested in the default investment vehicles unless you elect different funds. The ability to direct the 3% DC funds will be expanded after the funds begin to be disbursed. The 3% will appear as an additional source when you click on the "Source" tab in NetBenefits.

Q- Are the funds in the US Airways Savings Plan (both the 401 (k) and the DC funds) protected in the event the Company enters bankruptcy, merges with another airline or liquidates?
A-The Employee Savings Plan is just the name of the Plan. It is intended that the Plan qualify as a profit sharing plan under Section 401(a) of the Code, and includes a cash or deferred arrangement that is intended to qualify under Section 401(k) of the Code. Unlike our former Defined Benefit Plan which was terminated and turned over to the Pension Benefit Guarantee Corporation (PBGC), this type of plan is in fact protected from creditors. The only reasons why the Company would access funds already deposited would be for the following reasons:

• An adjustment has to be made to the account to back out money that should not be in the plan.
• Employee contributions were made to the plan and the participant terminates employment. The contributions that were made to the plan, but were not vested would be forfeited.
• Refunds need to be made due to non-discrimination test results (rarely used IRS requirements).

Q- What about the profit sharing that is provided for in our contract?
A-The term "profit sharing" in the above answer refers to an IRS Tax Status of the Plan. The Profit Sharing Plan in the Flight Attendant Collective Bargaining Agreement is still in place. This Employee Savings Plan has no bearing on the profit sharing check you will receive in March of each year as long as the airline continues to make a profit and we are working under the Contracted dated January 10, 2005.

Q-Is the US Airways Savings Plan Company controlled? My 401(k) is not.

A-The US Airways Employee Savings Plan is not Company controlled. For an investment standpoint, the employer contributions made on behalf of the participant are self directed. The means that the participant has the ability to decide where they want these contributions to be invested based on the investment options offered. Maybe someone considers the 3% contribution to be Company controlled. The 3% Company contribution was negotiated and agreed to by the Company and the Association of Flight Attendants and ratified by the membership. The only way this percentage will change is if the Company and the Association negotiates a different rate.

Q-Can I roll my entire 401(k) into my IRA?
A-The only way participant can currently roll their plan into an IRA is if they have separated from the Company.

Q-Can I roll any of my 401(k) into my IRA?
A-After age 59 ½ there is a withdrawal program that is allowed under IRS guidelines. There are guidelines on the number and amount you can withdraw at any one period. Please check with you financial advisor if you wish to do this.
 

INSURANCE CARDS

By now all Flight Attendants should have received your new Caremark prescription cards as well as Blue Cross Blue Shield Cards if you switched from United Health Care. If you have not received cards please contact the Benefits Center at 1-888-860-6178 to make sure they have your correct address. For cards, please contact Caremark directly at 1-800-898-5698. Blue Cross/Blue Shield may be contacted at 1-888-722-7441.

Should you have further questions, please do not hesitate to contact me.

Paul H. Frishkorn, AFA MEC Benefits Chairperson
pfrishkorn@afausairways.org
610-544-2875
 

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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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