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Prepare for a First Class Retirement - Schwab Retirement Plan ...
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Prepare for a<br />
First Class Retirement<br />
<strong>PDAP</strong><br />
United Airlines<br />
Pilot Directed Account Plan<br />
The <strong>PDAP</strong> is on the move.
IMPORTANT INFORMATION<br />
The <strong>PDAP</strong> is on the move.<br />
The Administrative Committee for the United Airlines<br />
Pilot Directed Account Plan (“<strong>PDAP</strong>”), the ALPA<br />
Retirement and Insurance Committee, and Russell<br />
Investments are pleased to announce that Schwab<br />
Retirement Plan Services, Inc. (“Schwab”) will become<br />
the new recordkeeper for the <strong>PDAP</strong> on December 3, 2012.<br />
The recordkeeper is responsible for maintaining your account records, the <strong>PDAP</strong> Web site and<br />
<strong>PDAP</strong> Service Center, implementing <strong>PDAP</strong> plan provision changes, and providing you with<br />
communications. After a thorough review, Schwab was chosen in recognition of its position as a<br />
leader in retirement plan services, competitive fees, and history of dedication to the needs of the<br />
United Airlines Pilots.<br />
After the transition is complete in early December, you will be able to take advantage of:<br />
• New <strong>PDAP</strong> Web site, where you can check your account balance, change your contribution<br />
rate, make transfers between investments, track investment performance, and more.<br />
• Tools to help structure a savings strategy that is right for you.<br />
• Knowledgeable and helpful <strong>PDAP</strong> Service Center Representatives who are available to speak<br />
with you from 6:00 a.m. – 10:00 p.m. CT, Monday through Friday.<br />
• Timely, comprehensive and easy-to-read account statements.<br />
• The option to receive <strong>PDAP</strong> account statements, transaction confirmations and<br />
reports electronically.<br />
• Greater integration between your <strong>PDAP</strong> account and your <strong>PDAP</strong> Individual Brokerage<br />
Account (IBA; also referred to as Schwab Personal Choice Retirement Account® 1 or PCRA)<br />
with single sign-on access.<br />
We believe you will appreciate these changes and we encourage you to take advantage of the new<br />
features as you monitor and manage your <strong>PDAP</strong> account.<br />
What you can do on the <strong>PDAP</strong> Web site:<br />
• Select <strong>PDAP</strong> investments.<br />
• Monitor <strong>PDAP</strong> investment performance<br />
and account balances.<br />
• Change future contribution rates and<br />
future investment elections.*<br />
• View <strong>PDAP</strong> statements.<br />
• Review and change beneficiaries.<br />
• Choose to receive your <strong>PDAP</strong><br />
information electronically.<br />
• Change or reset your password.<br />
• Get the latest <strong>PDAP</strong> news.<br />
• Learn about investment basics.<br />
• Access the Financial Education<br />
Center and discover interactive tools<br />
and calculators, workshops and<br />
informative publications.<br />
• Learn about what you can do to get<br />
ready for retirement.<br />
*Only active employees can change future contribution rates.<br />
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WHAT YOU NEED TO KNOW<br />
Important Transition Information<br />
Recordkeeping services currently provided by Aon Hewitt will transfer to Schwab after the<br />
financial markets close (3:00 p.m. CT) on November 30, 2012.<br />
Transition Highlights<br />
• <strong>PDAP</strong> core funds (Auto<strong>PDAP</strong> and <strong>PDAP</strong> Asset Class funds) are not changing.<br />
• If you are an active <strong>PDAP</strong> participant, your employee contribution rate, investment<br />
elections for future contributions, and loan repayment information (if any) will<br />
automatically transfer to Schwab.<br />
• As is common with this type of transition, there will be a brief period during which you<br />
will be unable to make certain requests or changes to your <strong>PDAP</strong> account. The details<br />
and timing of these items are outlined in the Transition Calendar on the next page.<br />
• Your <strong>PDAP</strong> account will remain fully invested while the transition takes place.<br />
• The current <strong>PDAP</strong> Service Center phone number (1-866-OUR-<strong>PDAP</strong>) will remain<br />
the same. After the transition, <strong>PDAP</strong> Service Center hours will be expanded with<br />
representatives available from 6:00 a.m. to 10:00 p.m. CT, Monday through Friday.<br />
• The <strong>PDAP</strong> Web site address is changing to www.schwabplan.com/<strong>PDAP</strong>/.<br />
• You will receive a new password from Schwab in November to access your <strong>PDAP</strong><br />
account after the transition.<br />
For your convenience during this transition,<br />
all communications materials explaining the<br />
enhancements, timing and changes will be<br />
available at www.schwabplan.com/<strong>PDAP</strong>/.<br />
3
TRANSITION CALENDAR<br />
Here are important dates and information related to the upcoming transition. This calendar will<br />
help you plan for any actions that you may wish to take before the transition period begins.<br />
Before 3:00 p.m. CT<br />
November 8, 2012<br />
November 15, 2012<br />
November 27, 2012<br />
Before 3:00 p.m. CT<br />
November 30, 2012<br />
Week of<br />
December 2, 2012<br />
December 14, 2012<br />
Review your preferred mailing address on the <strong>PDAP</strong> Web site. Go to Profile ><br />
Personal Information > Preferred Address and update as needed to ensure you<br />
receive your personalized password letter (mailed on November 16).<br />
Deadline for Aon Hewitt to receive paperwork for a Qualified Domestic Relations<br />
Order (QDRO).<br />
Paperwork received after this date will be processed by Schwab on or after<br />
December 3, 2012.<br />
Deadline for Aon Hewitt to receive:<br />
• Completed paperwork for a distribution request (such as hardship or<br />
in-service withdrawals)<br />
• Completed loan request paperwork<br />
• Rollover checks<br />
• Completed early loan payoff forms<br />
• Early loan payoff checks<br />
• Manual loan repayment checks<br />
• Completed Individual Brokerage Account (“IBA”) enrollment or advisor<br />
fee forms<br />
• Completed beneficiary designation forms<br />
Paperwork/checks received after this date will be processed by Schwab on or<br />
after December 3, 2012.<br />
Deadline to:<br />
• Change investment elections for future contributions<br />
• Execute a fund transfer between the Auto<strong>PDAP</strong> funds and the <strong>PDAP</strong> Asset<br />
Class funds (“core funds”)<br />
• Transfer <strong>PDAP</strong> core funds to or from an IBA*<br />
• Request a contribution rate change<br />
*Until the end of the transition period, if any portion of your <strong>PDAP</strong> account is<br />
invested in an IBA, you will be unable to transfer assets from this account to<br />
the <strong>PDAP</strong>’s core funds and vice versa. However, trading within your IBA will not<br />
be restricted.<br />
The transition period is anticipated to end on Monday, December 3,<br />
2012†. After the transition is complete, you can log in to www.schwabplan.com/<br />
<strong>PDAP</strong>/ and access your <strong>PDAP</strong> account. Or you can call the <strong>PDAP</strong> Service Center to<br />
speak with a representative at 1-866-OUR-<strong>PDAP</strong> (1-866-687-7327).<br />
Your last statement from Aon Hewitt, for activity during October and November<br />
2012, will be mailed.<br />
†The date set forth for the end of the transition period is an estimate based on Schwab’s prior experience. This estimate<br />
should not be considered a guarantee for any purpose.<br />
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CHANGES AT A GLANCE<br />
e-delivery of<br />
Statements<br />
and Reports<br />
• Ability to opt in to receive quarterly <strong>PDAP</strong> account statements, transaction<br />
confirmations and other documents electronically. Requires that your email<br />
address be on file at www.schwabplan.com/<strong>PDAP</strong>/.<br />
Fees • Administrative fees reduced from $40.75 to $23.00 per quarter.<br />
• Brokerage fees reduced from $7.00 to $5.00 per quarter‡.<br />
Minimum Reserve • Minimum reserve still required to pay for <strong>PDAP</strong> fees.<br />
• Minimum reserve reduced from $1,000 to $500.<br />
• Minimum reserve can be a cash component of your Individual Brokerage<br />
Account, <strong>PDAP</strong> core fund investment, or a combination of both.<br />
Individual Brokerage<br />
Account (IBA, which is<br />
also referred to<br />
as PCRA)<br />
• Greater integration between your <strong>PDAP</strong> and your IBA:<br />
»»<br />
Single sign-on access to your <strong>PDAP</strong> account and your IBA.<br />
»»<br />
Contributions can be made directly into your IBA without being<br />
channeled through the <strong>PDAP</strong> core funds.<br />
Primary Address • One permanent mailing address will be on file for your <strong>PDAP</strong><br />
account. This does not apply to your IBA profile.<br />
Automatic Account<br />
Rebalance of <strong>PDAP</strong><br />
Core Funds<br />
Distribution and<br />
Loan Requests<br />
Loan and<br />
Hardship Availability<br />
Periodic<br />
Installment Payments<br />
• If you currently have the automatic rebalance feature set up on the Aon<br />
Hewitt system, the timing will change from every 90 days to every three<br />
months from the rebalance date you specify.<br />
• If you are married, each distribution and loan request requires spousal<br />
consent (with the exception of on-going periodic installment payments).<br />
• If you have given your Login ID and password to another person, he/she<br />
may not act on your behalf when calling into the <strong>PDAP</strong> Service Center (after<br />
November 30, 2012).<br />
• Availability amounts will include balances in an IBA.<br />
• Draw down of accounts for loans and hardship withdrawals will include all<br />
investments (including IBA investments).<br />
To ensure payments elected prior to the transition are handled in a<br />
timely manner, all payments scheduled between November 28, 2012 and<br />
December 14, 2012, will be processed on November 27, 2012.<br />
Starting December 15, 2012, payments will be made on the 1 st or the 15 th of each<br />
month. If you elected a pay date § :<br />
• Between the 1 st and the 14 th of each month, your payment will be on the<br />
1st of each month.<br />
• Between the 15 th and the end of the month, then your payment will be on the<br />
15th of each month.<br />
‡<br />
These fees do not include the expense ratios or transaction fees associated with the investments you choose.<br />
§<br />
This new timing is effective December 15 th .<br />
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PAGE HEADER + UPPERCASE<br />
ACCOUNT ACCESS<br />
<strong>PDAP</strong> Web site<br />
<strong>PDAP</strong><br />
Service Center<br />
www.schwabplan.com/<strong>PDAP</strong>/<br />
To log in to your <strong>PDAP</strong> account at Schwab for the first time after the transition is<br />
complete, use your Social Security number (no spaces or dashes) as your Login<br />
ID. You will also need the personalized password that will be sent to you by<br />
Schwab. You will be required to create a new password. You will have the option to create<br />
a new Login ID if you do not wish to use your Social Security number in the future.<br />
1-866-OUR-<strong>PDAP</strong> (1-866-687-7327)<br />
Monday through Friday between 6:00 a.m. and 10:00 p.m. CT<br />
If you are calling from outside the United States, dial the Country Access Code + 866-687-7327.<br />
AT&T’s web site (www.usa.att.com/traveler) has a list of access numbers by country.<br />
On-the-go<br />
access to<br />
your <strong>PDAP</strong>:<br />
Schwab Workplace Retirement App for iPhone®, Android, or Kindle Fire.<br />
• Check your account balance<br />
• View your account performance<br />
• See how much you are contributing each paycheck<br />
• Look at your account activity<br />
System availability and response times are subject to market conditions and mobile connection limitations.<br />
Apple, the Apple logo, and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries<br />
Android is a trademark of Google Inc.<br />
Kindle Fire is a trademark of Amazon.com Inc. or its affiliates.<br />
If you lose your password, call the <strong>PDAP</strong> Service Center. For identity authentication, the representative will<br />
ask a series of questions before providing access to your <strong>PDAP</strong> account.<br />
Be sure to keep your account access information confidential. You will not be able to set up an Account Proxy for<br />
your <strong>PDAP</strong> account and others may not conduct transactions through the <strong>PDAP</strong> Service Center on your behalf.<br />
(This does not apply to the IBA if you have a valid Limited Power of Attorney form on file with Schwab.)<br />
1<br />
Schwab Personal Choice Retirement Account® (PCRA) is offered through Charles Schwab & Co., Inc. (Member SIPC), the registered<br />
broker/dealer, which also provides other brokerage and custody services to its customers.<br />
Please consult the Summary Plan Description for more information regarding your rights and responsibilities under the <strong>PDAP</strong>.<br />
Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the<br />
appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be<br />
acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.<br />
Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade,<br />
maintenance, or for other reasons.<br />
Schwab Retirement Plan Services, Inc., Charles Schwab Bank, and Charles Schwab & Co., Inc. are separate but affiliated companies<br />
and subsidiaries of The Charles Schwab Corporation. Brokerage products and services are offered by Charles Schwab & Co., Inc.<br />
(Member SIPC). Trust and custody services are provided by Charles Schwab Bank.<br />
Schwab Retirement Plan Services, Inc., (“Schwab”), provides recordkeeping and related services with respect to retirement plans.<br />
CS80970-06 (0912-5893) NWS69799UAL (10/12)<br />
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