401K Notice

Email Sent from Robert J Costagliola regarding 401k.

Gents –

You may heard, but Fidelity made a major error this week and instead of sending out a letter to only Frontier non-union employees about the match improvement (increasing the current 3% potential match on a 6% contribution to 4% potential match on an 8% contribution), the letter (sent under Brian Carlo’s signature) was sent to all Legacy employees, including unionized employees, even though the improvement was not negotiated and not approved for non-union employees (except the IBEW 363 bargaining unit, as I discussed with Gil and as per the e-mail below I sent to Gil on 12/16/10).

A letter was then sent by Fidelity (under their own letterhead) to all unionized Legacy employees explaining and apologizing for the error.

Of course, the Company still intends to offer the improved match in IBEW 363 to new hires as well as anyone who may elect to move from the pension to the 401(k) Plan during the one-time election that will take place later this Quarter.  I just learned today that the mini re-enrollment will take place from March 8 to March 15, 2011 for IBEW 363 employees.  Changes will be effective 4/1/2011.   The Plan is to offer the option to switch to the 401(k) during the mini re-enrollment process and we are hoping to have a Fidelity rep present at employee benefit meetings to discuss and answer questions about the 401(k) Plan.

Anyway, once the dust clears from Fidelity’s blunder, we will send something out (as discussed) letting your members know they (and post 10-21-10 new hires) are eligible for the improved match.

Let me know if you have any questions.

Gil, I don’t believe you ever replied to the attached e-mail with a confirmation the Union’s agreement to the improved match.  Could you do so by replying to this e-mail please.

Thanks and have a good (snowy) weekend.

Bob