The below was sent from AFA WEST MEC to their West membership:
MEC Update Friday April 13, 2007
Retirement and Insurance– 401k Savings Plan
On April 4, 2007, MEC President Gary Richardson participated in a conference call with Tom Antonielli - Director Retirement Plans and International Benefits for US Airways.
This conference call was to inform union leaders and company officials of the progress of a Benefits Department’s review of the Retirement plan (401K)- currently administered by Fidelity Investments.
In January, a RFP (Request For Proposal) was released to 16 leading retirement services vendors. This vendor search was conducted, with the assistance of Employee Benefit Solutions (EBS) that addressed administrative, trust and investment management services of the considered providers.
According to Mr. Antonielli, US Airways conducted this RFP in order to fulfill their fiduciary responsibility which encompasses all aspects of the savings plans such as fees being charged, investments offered, communications, etc. Their goal was to determine which vendor will offer participants great service and products, at a reasonable price along with retirement tools that participants can use to assist in making decisions that better position them for a more secure future when preparing for their retirement.
US Airways initial review on February 6 eliminated six (6) vendors from consideration. Furthermore, the results of their second meeting identified the following four (4) vendors as finalists: The 401 (k) Company, CitiStreet, JP Morgan, and Fidelity. The next steps in the process are; the finalists will give presentations to the company on April 16-20, with the chosen provider being selected the week of May 7. Should a new vendor be selected, implementation would occur the week of May 14.
Fidelity Investments has managed the 401k retirement and saving plans at America West and US Airways for well over a decade. They have provided a good product and service to savings plan participants and AFA encourages the company to weigh this factor accordingly when making their vendor selection. We will provide more information to you as it is known on this important matter.
The WEST MEC President, Gary, is on the ball. I applaud him informing his membership and taking a position!
Hope everyone is observing this and is well informed! I currently have Citistreet with my NEW employer and the products are NOT as good as Fidelity. The company is looking uder every rock to take MORE cost savings from the employees retirement plans and options. Can you imagine what a nightmare for the employees to now change their investments and strategy for their 401K plans so the company can save a few bucks on the "Plan's administration"? Folks better be protesting this. Personally, I never transferred my 401K plan to my new employer's Citistreet because the investment returns are not as good as Fidelity. I have Citistreet with a new portfolio for future contributions but will NOT give them or transfer my 401K from fidelity because its just not producing the returns on investment. If the company hires another Plan Adminstrator, then we will have no choice. Why is it that when the company is searching to change something that is as important as 401K plans that they do not inform the employees until after they have signed new contracts with other investment brokers???? Answer: They don't want employee input. They just want cost savings at employees expense! We all know that senior management have their own investments and retirment compensation packages that are 1,000 fold larger than the rank and file. Some idiot VP benefit guy is campaigning this BS looking for his own bonus payout from the BOD.
Do your folks on the East even know about this????? AFA MEC East has not put it out, but I wrote to them to give them some info. If you care about this issue, you need to contact your LOCAL LEC. asap. Make sure that the company's argument for changing the plan admistrator is a valid one. I've learned to know that management can be extremely deceptive on these types of issues. Remember how they snuck on us the prescription switch-a-roo to "mail order" manditory ONLY. Those of you who currently have a 401K plan need to find out from your local reps if the company WILL set up the same portfolio investment options that they currently have with Fidelity along with including even more investment options. How often can you switch investments within the plan etc...
MEC Update Friday April 13, 2007
Retirement and Insurance– 401k Savings Plan
On April 4, 2007, MEC President Gary Richardson participated in a conference call with Tom Antonielli - Director Retirement Plans and International Benefits for US Airways.
This conference call was to inform union leaders and company officials of the progress of a Benefits Department’s review of the Retirement plan (401K)- currently administered by Fidelity Investments.
In January, a RFP (Request For Proposal) was released to 16 leading retirement services vendors. This vendor search was conducted, with the assistance of Employee Benefit Solutions (EBS) that addressed administrative, trust and investment management services of the considered providers.
According to Mr. Antonielli, US Airways conducted this RFP in order to fulfill their fiduciary responsibility which encompasses all aspects of the savings plans such as fees being charged, investments offered, communications, etc. Their goal was to determine which vendor will offer participants great service and products, at a reasonable price along with retirement tools that participants can use to assist in making decisions that better position them for a more secure future when preparing for their retirement.
US Airways initial review on February 6 eliminated six (6) vendors from consideration. Furthermore, the results of their second meeting identified the following four (4) vendors as finalists: The 401 (k) Company, CitiStreet, JP Morgan, and Fidelity. The next steps in the process are; the finalists will give presentations to the company on April 16-20, with the chosen provider being selected the week of May 7. Should a new vendor be selected, implementation would occur the week of May 14.
Fidelity Investments has managed the 401k retirement and saving plans at America West and US Airways for well over a decade. They have provided a good product and service to savings plan participants and AFA encourages the company to weigh this factor accordingly when making their vendor selection. We will provide more information to you as it is known on this important matter.
The WEST MEC President, Gary, is on the ball. I applaud him informing his membership and taking a position!
Hope everyone is observing this and is well informed! I currently have Citistreet with my NEW employer and the products are NOT as good as Fidelity. The company is looking uder every rock to take MORE cost savings from the employees retirement plans and options. Can you imagine what a nightmare for the employees to now change their investments and strategy for their 401K plans so the company can save a few bucks on the "Plan's administration"? Folks better be protesting this. Personally, I never transferred my 401K plan to my new employer's Citistreet because the investment returns are not as good as Fidelity. I have Citistreet with a new portfolio for future contributions but will NOT give them or transfer my 401K from fidelity because its just not producing the returns on investment. If the company hires another Plan Adminstrator, then we will have no choice. Why is it that when the company is searching to change something that is as important as 401K plans that they do not inform the employees until after they have signed new contracts with other investment brokers???? Answer: They don't want employee input. They just want cost savings at employees expense! We all know that senior management have their own investments and retirment compensation packages that are 1,000 fold larger than the rank and file. Some idiot VP benefit guy is campaigning this BS looking for his own bonus payout from the BOD.
Do your folks on the East even know about this????? AFA MEC East has not put it out, but I wrote to them to give them some info. If you care about this issue, you need to contact your LOCAL LEC. asap. Make sure that the company's argument for changing the plan admistrator is a valid one. I've learned to know that management can be extremely deceptive on these types of issues. Remember how they snuck on us the prescription switch-a-roo to "mail order" manditory ONLY. Those of you who currently have a 401K plan need to find out from your local reps if the company WILL set up the same portfolio investment options that they currently have with Fidelity along with including even more investment options. How often can you switch investments within the plan etc...
