United Airlines
Pilot Directed Account Plan
PDAP
Prepare for a
First Class Retirement
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, 2012.
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®
1or 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
• Change or reset your password.
• Get the latest PDAP news.
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, 2012.
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
www.schwabplan.com/PDAP/
.
•
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
www.schwabplan.com/PDAP/
.
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 Review your preferred mailing address on the PDAP Web site. Go to Personal Information > Preferred Address and update as needed to ensure you Profile > receive your personalized password letter (mailed on November 16).
November 15, 2012 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, 2012.
November 27, 2012 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 formsPaperwork/checks received after this date will be processed by Schwab on or after December 3, 2012.
Before 3:00 p.m. CT
November 30, 2012 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.
Week of The transition period is anticipated to end on Monday, December 3,
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 email address be on file at www.schwabplan.com/PDAP/.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
•
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.Distribution and
Loan Requests
•
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).Loan and
Hardship Availability
•
•
Availability amounts will include balances in an IBA.Draw down of accounts for loans and hardship withdrawals will include allinvestments (including IBA investments).
Periodic
Installment Payments 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, 2012.
Starting December 15, 2012, payments will be made on the 1st or the 15th of each
month. If you elected a pay date§:
•
Between the 1st and the 14th of each month, your payment will be on the1st of each month.
•
Between the 15th and the end of the month, then your payment will be on the15th 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 15th.
PAGE HEADER + UPPERCASE
ACCOUNT ACCESS
PDAP Web site www.schwabplan.com/PDAP/
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.
PDAP
Service Center 1-866-OUR-PDAPMonday through Friday between 6:00 a.m. and 10:00 p.m. CT (1-866-687-7327)
If you are calling from outside the United States, dial the Country Access Code + 866-687-7327. AT&T’s web site (www.usa.att.com/traveler) 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 activitySystem 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.)
