Thursday, October 8, 2015
Upcoming 401(k) Program Changes – LAA/LUS
AA Benefits provided the following information:
Beginning in November 2015, 401(k) accounts of Flight Attendants from the US Airways, Inc. Employee Savings Plan (“Employee Savings Plan”) will begin merging into the $uper $aver: An American Airlines, Inc. 401(k) Capital Accumulation (“$uper $aver Plan”). In addition, the $uper $aver Plan will be renamed as the American Airlines, Inc. 401(k) Plan (“American 401(k) Plan”).
Investment Election Window Closes Next Week
A new investment menu is also being launched. All account balances and future contributions in the American 401(k) Plan will move to the new investment menu. Because most of the existing investment options are being replaced by those in the new investment lineup in your 401(k), you have an opportunity to reevaluate your strategy and choose investments from the new menu. The special window in which you may choose investments (or “make investment elections”) will close on Thursday, October 15.
You may now process your election online on the special election website www.aa401kplan.com by clicking Choose your investments. You have two options:
- Option 1: Choose a single target date fund. If you think that a target date fund is right for you, we’ve made it easy for you to choose a single target date fund. Simply select the target date fund closest to the year you turn 65, or a different fund if you plan to retire at a different age — the choice is yours. As part of the election process, the site will prompt you to make this election for both your account balance and future contributions (including any loan repayments). If you choose this option, your 401(k) account balances and all future contributions (including loan repayments) will move to the target date fund you’ve chosen when the investment transfer takes place (scheduled for the week of November 1, 2015).
- Option 2: Create your own investment mix. If you prefer, you can create your own investment mix from the individual options in the new investment menu. Just indicate what percentage you want to invest in each fund. As part of the election process, the site will prompt you to make elections for both your account balance and future contributions (including any loan repayments). You can select the same funds for both, or different funds. If you choose this option, your 401(k) account balances and future contributions (including loan repayments) will move to the funds you’ve chosen when the investment transfer takes place (scheduled for the week of November 1, 2015).
If you don’t choose investments by 11:59 p.m. ET on October 15, all future contributions and most 401(k) account balances will move to a target date fund based on the year closest to the year you turn 65.
Key Dates – What’s Happening When?
Now through 11:59 p.m. ET on October 15, 2015. This is the time to make your choices. During this special investment decision election window, you can choose your investments on the special election website www.aa401kplan.com for both your account balances and future contributions.
Starting October 27 at 4 p.m. ET. To prepare and implement the new investment menu at Fidelity, there will be a period of time during which account transactions will be temporarily unavailable, called the blackout period. On October 27 at 4 p.m. ET, the limited blackout period starts. Changes to how your future 401(k) contributions are invested within the current menu will be unavailable. However, during the limited blackout, most account transactions will remain available, including loans, distributions and changes to your beneficiary elections. In addition, loan repayments and contributions received will be invested in the Fidelity® Money Market Trust Retirement Money Market Portfolio until the blackout period ends. At that time, loan repayments, contributions and any associated earnings will be posted to your account according to the investment elections you chose from the new lineup during the special investment decision election window. If you did not choose investments from the new lineup, your 401(k) loan repayments, contributions and any associated earnings will be made in the target date fund based on the year closest to the year you turn 65.
Starting October 30, 2015 at 4 p.m. ET. The full blackout period begins. At this point, the blackout period will expand, and you will not be able to request:
- Transactions in your 401(k) account, including loans, distributions or withdrawals,
- Changes to your beneficiary elections,
- Any investment changes, or
- Changes to the amount you contribute
Week of November 1, 2015. The blackout period is over. Your 401(k) and the new investment menu are scheduled to be available on Fidelity NetBenefits. All transactions will be available, including the ability to change your contributions, initiate transactions, and generally change your investments at any time.
Resources for More Help
Where do I go for day-to-day transactions in my 401(k) account?
Fidelity NetBenefits® is the one place you need to go to find information on your 401(k) account. Go to NetBenefits to request transactions, use planning tools, learn about retirement planning, and more. You can also call the American Airlines 401(k) Service Center at Fidelity at (800) 354-3412.
Can I get help with my investments?
Yes. You can get one-on-one guidance from Fidelity Investments. This is a service of the plan, so it’s available to you at no additional cost. Call (800) 603-4015 to meet one-on-one by telephone with a Fidelity Guidance Consultant to talk about your investment options and your investing style.
In addition, all participants can take advantage of online investment advice, planning tools and resources from Financial Engines at no additional cost. And, for a fee, you can elect to have Financial Engines, an independent investment advice and management service provider, manage your 401(k) account through the Professional Management program. To learn about the Financial Engines Professional Management program, call Fidelity Investments at (800) 354-3412 and ask to be connected to Financial Engines or go to Financial Engines. Guidance provided is educational.
Advisory services are provided by Financial Advisors, LLC, a federally registered investment advisor and wholly owned subsidiary of Financial Engines, Inc. Financial Engines is not affiliated with Fidelity Investments, and does not guarantee results.
Is American holding meetings about these changes?
Yes. American is holding employee workshops at key locations nationwide, along with virtual meetings to give you a chance to ask questions. Go to the special election website www.aa401kplan.com, and click Guidance & meetings to see a schedule of live on-site and online workshops.
Professional Management for your 401(k) Account
You can also enroll in the Financial Engines’ Professional Management Program, which will manage your investments for you for a fee. To enroll, access Financial Engines or call Fidelity Investments at (800) 354-3412 and ask to be connected to Financial Engines by October 13, 2015. If you enroll by October 13, Financial Engines will then manage the investment transfer for you during the special election window, regardless of whether you choose investments from the new menu during this special election window.
All other questions may be directed to Patrick Hancock, APFA Retirement Specialist at firstname.lastname@example.org.
APFA National Communications Interim Chair