Re: UnitedHealth Group 401(k) Savings Plan ( the Plan ) Dear Plan Participant,

Transcription

1 Re: UnitedHealth Group 401(k) Savings Plan ( the Plan ) Dear Plan Participant, This notice gives you important information about the Plan s designated default investment option and the automatic enrollment feature. The Plan lets you invest your account balance in a number of different investment funds. Unless you choose a different investment fund or funds, any contributions for which you do not provide investment direction will be invested in the Plan s designated default investment option. Designated Default Investment Option. You are receiving this notice because all or a portion of your account balance is invested in the Plan s current designated default investment option, the Wells Fargo Advantage Growth Balance Fund. Effective September 1, 2010, the Plan will change its designated default investment option. The Wells Fargo Dow Jones Target Date Funds (the Funds ) will become the Plan s designated default investment option. Additional information regarding the Funds is provided below. Please refer to your Transition Guide for detailed information on all of your Plan s investment options and details regarding the upcoming transition to Fidelity Investments. The Plan s designated default investment option is a qualified default investment alternative in accordance with Section 404(c)(5) of the Employee Retirement Income Security Act of 1974 and Department of Labor Regulations Section c-5. As a result, if you (or your beneficiaries) are invested in the designated default investment option because you have not actively chosen investment options for your account, the Plan s fiduciaries will not be liable for any losses that may result from your investment in the designated default investment option. Automatic Enrollment. Eligible employees who are hired or become eligible for the Plan will be automatically enrolled at a pretax contribution rate of three percent of eligible pay unless they elect not to participate pursuant to the Plan s opt-out process. If you are automatically enrolled, your contributions will be invested in the Fund. You have the right to change your contribution percentage or elect to discontinue contributions to the Plan altogether. If you are automatically enrolled in the Plan, you are also automatically enrolled in an annual increase program ( AIP ), which automatically increases the percentage of your contribution to the Plan annually, up to six percent maximum. You may also change the amount of your automatic increase amount (but not less than one percent) or opt out of the AIP at any time. If you are eligible for the Plan s AIP, you will receive additional information. To opt out, make a change to your deferral percentage (including AIP election) or investment fund election in the Plan or obtain information about the Plan s other investment options by August 25, log onto or call to speak to a representative. For changes to your account after the Blackout Period, which is expected to end the week of September 12, 2010, log onto NetBenefits at or call to speak to a representative. You may also make changes to your investment elections for future contributions and/or exchange all or a portion of your existing balance into other options available under the Plan by logging into the web sites above or contacting We encourage you to review your investment mix and deferral percentage and update as appropriate.

2 Target Date Funds Effective September 1, 2010, the Plan s designated default investment option will be the Wells Fargo Dow Jones Target Date Funds. The designated default investment option is based on the assumption that the participant will retire at age 65. The following table indicates which fund your contributions will be directed to based on your date of birth. DATE OF BIRTH FUND NAME TARGET RETIREMENT DATE December 31, 1942, or earlier January 1, 1943 to December 31, 1947 January 1, 1948 to December 31, 1952 January 1, 1953 to December 31, 1957 January 1, 1958 to December 31, 1962 January 1, 1963 to December 31, 1967 January 1, 1968 to December 31, 1972 January 1, 1973 to December 31, 1977 January 1, 1978 to December 31, 1982 Target Date Today Target Date 2010 Target Date 2015 Target Date 2020 Target Date 2025 Target Date 2030 Target Date 2035 Target Date 2040 Target Date 2045 before to to to to to to to to 2047 January 1, 1983 or later Target Date or later The above timeline was selected by UnitedHealth Group. If there is no date of birth on file for a participant, contributions to the Plan account will be invested in the Target Date Today Fund.

3 A description of each Target Date Fund is provided in the table below: Fund Name Target Date Today Target Date 2010 Fund Class N Fund Description return of the Dow Jones Target Today Index SM. Someone who is in retirement. return of the Dow Jones Target 2010 Index SM. Gross Expense Ratio as of July 1, 2010

4 Target Date 2015 Fund Class N return of the Dow Jones Target 2015 Index SM.

5 Target Date 2020 Fund Class N return of the Dow Jones Target 2020 Index SM. Target Date 2025 Fund return of the Dow Jones Target 2025 Index SM.

6 Target Date 2030 Fund Target Date 2035 Fund return of the Dow Jones Target 2030 Index SM. return of the Dow Jones Target 2035 Index SM.

7 Target Date 2040 Fund return of the Dow Jones Target 2040 Index SM.

8 Target Date 2045 Fund Target Date 2050 Fund return of the Dow Jones Target 2045 Index SM. Someone who does not feel comfortable making asset allocation choices over time to achieve a desired financial return of the Dow Jones Target 2050 Index SM.

9 The Target Date Funds are designed for investors expecting to retire around the year indicated in each fund's name. The funds are managed to gradually become more conservative over time. The investment risks of each Target Date Fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. guaranteed at any time, including at or after their target dates. Before investing in any investment option, please carefully consider the investment objectives, risks, charges and expenses. For this and other information, call or write Fidelity for a free prospectus. Read it carefully before you invest. In the event of a discrepancy between this notice and the terms of the Plan, the plan document will govern The investment options available through the Plan reserve the right to modify or withdraw the exchange privilege. Unless otherwise noted, transaction requests confirmed after the close of the market, normally 4 P.M. Eastern Time, or on weekends or holidays, will receive the next available closing prices. *For a mutual fund, the expense ratio is the total annual fund or class operating expenses (before waivers or reimbursements) paid by the fund and stated as a percent of the fund s total net assets. Where the investment option is not a mutual fund, the figure displayed in the expense information field is intended to reflect similar information. However, it may have been calculated using methodologies that differ from those used for mutual funds. Expense ratio and expense information change periodically. Please consult the most recent prospectus or NetBenefits for current data. The Plan is intended to be a participant-directed plan as described in Section 404(c) of ERISA, which means that fiduciaries of the Plan are ordinarily relieved of liability for any losses that are the direct and necessary result of investment instructions given by a participant or beneficiary. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield RI