Q: At Virgin America we have a 100% vested retirement account regardless of age and retirement status. I’m unclear about how the 401k section effects those of us who are not close to retirement age. Will our retirement accounts be moved to another financial institution? Will we keep our current fidelity account as is and start a new one with Alaska’s 401k plan provider?
A: All L-VX FAs are 100% vested in the current VX 401(k) plan. Alaska continues to contribute company match of 125% of up to 6% of a Flight Attendant’s contribution. If theTA is ratified, all L-VX Flight Attendants will transition to the Alaska 401(k) plan managed by Vanguard at DOR (Date of Ratification) plus three months. The transition process will actually close out the current Fidelity accounts and transfer the balance to the Vanguard 401(k) plan. Because the Fidelity 401(k) had immediate vesting per VX Company policy, all L-VX Flight Attendants will be fully vested in the transferred amount.
At DOR pull (3) months all L-VX Flight Attendants will then begin contributing to the Vanguard 401(K) plan per Section 29.B-C of the 2018-2021 JCBA:
SECTION 29 PROFIT SHARING AND RETIREMENT
B. 401(K) COMPANY MATCH The Company will match any Flight Attendant’s pre-tax contribution to the 401(k) plan maintained by the Company, at the rate of one dollar ($1.00) for each one dollar ($1.00) contributed by the Flight Attendant, up to a maximum company contribution of seven and one-half percent (7.5%).
C. VESTING SCHEDULE FOR 401(K) COMPANY MATCH A Member will have a vested and non-forfeitable interest in that vested percentage portion of the balance credited to the Member’s Matching Contributions Account at any time determined by reference to her/his completed years of Vesting Service in accordance with the following schedule:
Completed Years of Vesting Service Vested Percentage
Less than 1 year 0%
1 year 20%
2 years 40%
3 years 60%
4 years 80%
5 or more years 100%
D. ACCELERATED VESTING
A Member will be fully vested and have a non-forfeitable interest in the balance credited to her/his Matching Contributions Account if:
The employee becomes medically disabled; or
The employee retires at or after age sixty-five (65); or
The employee retires at or after age sixty (60) with a minimum twelve (12) years of service with the Company Seniority, or at or after age sixty-one and one-half (61½) and a minimum of ten (10) years of service with the Company Seniority.
L-VX Flight Attendants will vest under the above schedule based on their original VX Company date of hire for all “new” company matching funds. Note: You are always 100% vested in your employee contributions.