Prepare for a First Class Retirement

Transcription

1 Prepare for a First Class Retirement PDAP United Airlines Pilot Directed Account Plan The PDAP is on the move.

2 IMPORTANT INFORMATION The PDAP is on the move. The Administrative Committee for the United Airlines Pilot Directed Account Plan ( PDAP ), the ALPA Retirement and Insurance Committee, and Russell Investments are pleased to announce that Schwab Retirement Plan Services, Inc. ( Schwab ) will become the new recordkeeper for the PDAP on December 3, The recordkeeper is responsible for maintaining your account records, the PDAP Web site and PDAP Service Center, implementing PDAP plan provision changes, and providing you with communications. After a thorough review, Schwab was chosen in recognition of its position as a leader in retirement plan services, competitive fees, and history of dedication to the needs of the United Airlines Pilots. After the transition is complete in early December, you will be able to take advantage of: New PDAP Web site, where you can check your account balance, change your contribution rate, make transfers between investments, track investment performance, and more. Tools to help structure a savings strategy that is right for you. Knowledgeable and helpful PDAP Service Center Representatives who are available to speak with you from 6:00 a.m. 10:00 p.m. CT, Monday through Friday. Timely, comprehensive and easy-to-read account statements. The option to receive PDAP account statements, transaction confirmations and reports electronically. Greater integration between your PDAP account and your PDAP Individual Brokerage Account (IBA; also referred to as Schwab Personal Choice Retirement Account 1 or PCRA) with single sign-on access. We believe you will appreciate these changes and we encourage you to take advantage of the new features as you monitor and manage your PDAP account. What you can do on the PDAP Web site: Select PDAP investments. Monitor PDAP investment performance and account balances. Change future contribution rates and future investment elections.* View PDAP statements. Review and change beneficiaries. Choose to receive your PDAP information electronically. Change or reset your password. Get the latest PDAP news. Learn about investment basics. Access the Financial Education Center and discover interactive tools and calculators, workshops and informative publications. Learn about what you can do to get ready for retirement. *Only active employees can change future contribution rates. 2

3 WHAT YOU NEED TO KNOW Important Transition Information Recordkeeping services currently provided by Aon Hewitt will transfer to Schwab after the financial markets close (3:00 p.m. CT) on November 30, Transition Highlights PDAP core funds (AutoPDAP and PDAP Asset Class funds) are not changing. If you are an active PDAP participant, your employee contribution rate, investment elections for future contributions, and loan repayment information (if any) will automatically transfer to Schwab. As is common with this type of transition, there will be a brief period during which you will be unable to make certain requests or changes to your PDAP account. The details and timing of these items are outlined in the Transition Calendar on the next page. Your PDAP account will remain fully invested while the transition takes place. The current PDAP Service Center phone number (1-866-OUR-PDAP) will remain the same. After the transition, PDAP Service Center hours will be expanded with representatives available from 6:00 a.m. to 10:00 p.m. CT, Monday through Friday. The PDAP Web site address is changing to You will receive a new password from Schwab in November to access your PDAP account after the transition. For your convenience during this transition, all communications materials explaining the enhancements, timing and changes will be available at 3

4 TRANSITION CALENDAR Here are important dates and information related to the upcoming transition. This calendar will help you plan for any actions that you may wish to take before the transition period begins. Before 3:00 p.m. CT November 8, 2012 November 15, 2012 November 27, 2012 Before 3:00 p.m. CT November 30, 2012 Week of December 2, 2012 December 14, 2012 Review your preferred mailing address on the PDAP Web site. Go to Profile > Personal Information > Preferred Address and update as needed to ensure you receive your personalized password letter (mailed on November 16). Deadline for Aon Hewitt to receive paperwork for a Qualified Domestic Relations Order (QDRO). Paperwork received after this date will be processed by Schwab on or after December 3, Deadline for Aon Hewitt to receive: Completed paperwork for a distribution request (such as hardship or in-service withdrawals) Completed loan request paperwork Rollover checks Completed early loan payoff forms Early loan payoff checks Manual loan repayment checks Completed Individual Brokerage Account ( IBA ) enrollment or advisor fee forms Completed beneficiary designation forms Paperwork/checks received after this date will be processed by Schwab on or after December 3, Deadline to: Change investment elections for future contributions Execute a fund transfer between the AutoPDAP funds and the PDAP Asset Class funds ( core funds ) Transfer PDAP core funds to or from an IBA* Request a contribution rate change *Until the end of the transition period, if any portion of your PDAP account is invested in an IBA, you will be unable to transfer assets from this account to the PDAP s core funds and vice versa. However, trading within your IBA will not be restricted. The transition period is anticipated to end on Monday, December 3, After the transition is complete, you can log in to PDAP/ and access your PDAP account. Or you can call the PDAP Service Center to speak with a representative at OUR-PDAP ( ). Your last statement from Aon Hewitt, for activity during October and November 2012, will be mailed. The date set forth for the end of the transition period is an estimate based on Schwab s prior experience. This estimate should not be considered a guarantee for any purpose. 4

5 CHANGES AT A GLANCE e-delivery of Statements and Reports Ability to opt in to receive quarterly PDAP account statements, transaction confirmations and other documents electronically. Requires that your address be on file at Fees Administrative fees reduced from $40.75 to $23.00 per quarter. Brokerage fees reduced from $7.00 to $5.00 per quarter. Minimum Reserve Minimum reserve still required to pay for PDAP fees. Minimum reserve reduced from $1,000 to $500. Minimum reserve can be a cash component of your Individual Brokerage Account, PDAP core fund investment, or a combination of both. Individual Brokerage Account (IBA, which is also referred to as PCRA) Greater integration between your PDAP and your IBA:»» Single sign-on access to your PDAP account and your IBA.»» Contributions can be made directly into your IBA without being channeled through the PDAP core funds. Primary Address One permanent mailing address will be on file for your PDAP account. This does not apply to your IBA profile. Automatic Account Rebalance of PDAP Core Funds Distribution and Loan Requests Loan and Hardship Availability Periodic Installment Payments If you currently have the automatic rebalance feature set up on the Aon Hewitt system, the timing will change from every 90 days to every three months from the rebalance date you specify. If you are married, each distribution and loan request requires spousal consent (with the exception of on-going periodic installment payments). If you have given your Login ID and password to another person, he/she may not act on your behalf when calling into the PDAP Service Center (after November 30, 2012). Availability amounts will include balances in an IBA. Draw down of accounts for loans and hardship withdrawals will include all investments (including IBA investments). To ensure payments elected prior to the transition are handled in a timely manner, all payments scheduled between November 28, 2012 and December 14, 2012, will be processed on November 27, Starting December 15, 2012, payments will be made on the 1 st or the 15 th of each month. If you elected a pay date : Between the 1 st and the 14 th of each month, your payment will be on the 1st of each month. Between the 15 th and the end of the month, then your payment will be on the 15th of each month. These fees do not include the expense ratios or transaction fees associated with the investments you choose. This new timing is effective December 15 th. 5

6 PAGE HEADER + UPPERCASE ACCOUNT ACCESS PDAP Web site PDAP Service Center To log in to your PDAP account at Schwab for the first time after the transition is complete, use your Social Security number (no spaces or dashes) as your Login ID. You will also need the personalized password that will be sent to you by Schwab. You will be required to create a new password. You will have the option to create a new Login ID if you do not wish to use your Social Security number in the future OUR-PDAP ( ) Monday through Friday between 6:00 a.m. and 10:00 p.m. CT If you are calling from outside the United States, dial the Country Access Code AT&T s web site ( has a list of access numbers by country. On-the-go access to your PDAP: Schwab Workplace Retirement App for iphone, Android, or Kindle Fire. Check your account balance View your account performance See how much you are contributing each paycheck Look at your account activity System availability and response times are subject to market conditions and mobile connection limitations. Apple, the Apple logo, and iphone are trademarks of Apple Inc., registered in the U.S. and other countries Android is a trademark of Google Inc. Kindle Fire is a trademark of Amazon.com Inc. or its affiliates. If you lose your password, call the PDAP Service Center. For identity authentication, the representative will ask a series of questions before providing access to your PDAP account. Be sure to keep your account access information confidential. You will not be able to set up an Account Proxy for your PDAP account and others may not conduct transactions through the PDAP Service Center on your behalf. (This does not apply to the IBA if you have a valid Limited Power of Attorney form on file with Schwab.) 1 Schwab Personal Choice Retirement Account (PCRA) is offered through Charles Schwab & Co., Inc. (Member SIPC), the registered broker/dealer, which also provides other brokerage and custody services to its customers. Please consult the Summary Plan Description for more information regarding your rights and responsibilities under the PDAP. Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons. Schwab Retirement Plan Services, Inc., Charles Schwab Bank, and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products and services are offered by Charles Schwab & Co., Inc. (Member SIPC). Trust and custody services are provided by Charles Schwab Bank. Schwab Retirement Plan Services, Inc., ( Schwab ), provides recordkeeping and related services with respect to retirement plans. CS ( ) NWS69799UAL (10/12) 6