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401(k) Automatic Escalation Program versus Fidelity Annual Increase Program

Date: July 27, 2018

Effective as of January 1, 2017, management added an automatic escalation feature to the United Airlines Flight Attendant 401(k) plan. As provided for in Section 29.I.1.d.(3)., the 401(k) plan may include an automatic enrollment feature and/or an automatic escalation feature at Company discretion. Flight Attendants may elect to opt out of either feature.

Unless you opted out of the program, you have been automatically enrolled in the annual increase program which will increase the amount you contribute to your 401(k) account by 1% each year until you are contributing 10% to the plan. The increase is effective on your step increase date or pay anniversary until you are contributing a total of 10% between pre-tax and/or Roth 401(k) contributions.

If you have reached your 13th year or higher of the seniority step pay increases, the 1% annual increase will occur on the anniversary of your seniority step increase date, until the 10% is reached.

If making pre-tax contributions, the 1% increase will apply to your pre-tax contribution percentage.

If you are making Roth 401(k) contributions, your Roth 401(k) percentage will increase instead.

If you are only making post tax contributions, the automatic increase will not  apply. Post tax contributions are not included in this program.

If you are making both pre and post-tax and/or Roth 401(k) contributions, your pre-tax and/or Roth 401(k) contributions will be increased until you are contributing a total of 10% between these two contribution types.

The Automatic Escalation program outlined in our JCBA should not be confused with the Fidelity Annual Increase Program. The Annual Increase Program allows you to increase your contribution amount by a certain percentage each year and you are able to establish both the percentage and the date on which the annual increase occurs. You may contribute as little as 1% to as much as 100%.  

To make changes to your contribution percentages or your annual increase program elections, log into Fidelity NetBenefits at www.401k.com or call Fidelity at 800 245 9034.

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