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Fidelity Automatic Increase Program Alert Communication

Date: April 21, 2023

Recent communication from United Airlines regarding the 401(k) Automatic Increase & Escalation Program may have caused some confusion. The Automatic Enrollment & Escalation provisions of our Contract differ from the Fidelity Annual Increase Program as follows:

Section 29.I.1.d.(3) of our Contract provides for the Automatic Enrollment and Escalation feature detailed in the Retirement Plans Section. The Flight Attendant 401(k) plan includes this feature. In December 2016, the company advised employees of their intent to implement the Automatic Increase program to encourage employees to plan for their future. Effective as of January 1, 2017, anyone contributing less than 10% to their Flight Attendant 401(k) plan account would have their contributions increased by 1% annually (on their pay anniversary) unless they specifically elected to opt-out of the feature.

The Fidelity Annual Increase Program, while similar in its effect, is not part of this Contact provision and any increases under this program are entirely at the discretion of the employee. If you choose to participate in this program, which is available from the Fidelity Investments website, you can choose the percentage of wages to be deferred into the Flight Attendant 401(k) plan account and the date on which the annual increase becomes effective. Deferral percentages can range from 1% to 100%. 

  •       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.

To make changes or opt-out of either program, you must use the features of the Fidelity website. Please keep in mind that the 401(k) matching contribution feature of the Retirement Plan provisions of our Contract is specific to pre-merger affiliation. In the event you choose to reduce your deferral contributions, we encourage you to consider the potential impact of any reduction on the matching contributions from United that are required under the plan.

For more details about these programs, please refer to the Plan’s Summary Plan Description, available at Flying Together>Employee Services>My Rewards>Financial Wellness>My Retirement Plans>Summary Plan Descriptions or www.netbenefits.com. You can also find a news article related to the programs under Help Hub (Flying Together>Employee Services> Tools and Resources>Help Hub>type “Annual Increase Program”).

If you have any questions or wish to make changes to your Annual Increase Program elections, including opting out of the increase, please go to Flying Together>Employee Services>My Rewards>Financial Wellness>My Retirement Plans or www.netbenefits.com. You can also contact the Fidelity Service Center for United Employees at 1-800-245-9034.

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