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Aloha Flight Attendant Pension Plan Update #4
[08.22.08] – As communicated in the last Pension Update of [07.09.08], we have been working towards making available to you a 50% partial distribution of your most recent pension valuation, dated December 31, 2007. The necessary groundwork to execute this optional 50% partial distribution involved the collaboration of many different entities. Due to the various notification requirements, and coordination of the distribution process, October 1, 2008 was selected as a target date for distributions to be made. We are confident that Bank of Hawaii and others involved in the administration of the Pension Plan will be able to execute the 50% partial distribution on or about October 1, 2008.
This 50% partial distribution is in response to numerous requests from many of you. As explained in a previous Pension Update, prudent plan administration and all fiduciaries involved in administering or advising the Aloha Pension Plan require a final determination letter certifying plan qualification under the Internal Revenue Code from the Internal Revenue Service (IRS).
Receiving a final determination letter from the IRS is a necessary, but unfortunately lengthy process. We expect that this option to receive a partial distribution will be helpful to you as we await the final termination of our pension plan and distribution of remaining balances.
In order to give you as much advance notice as possible, the following dates have been set as a tentative timeline for the partial distribution process:
By August 29, 2008: You will be sent a notification in the mail containing details about the partial distribution process. This mailing will include all forms necessary for you to fill out and return as directed in order to be eligible for the 50% partial distribution.
September 3 & September 5: We will be holding two (2) employee education meetings to educate you about rolling your pension funds from the Pension Plan to another tax-advantaged retirement savings account, the forms involved in this process, tax considerations, and roll-over options. Meetings on both days will be held at the State Capital Auditorium, 415 S. Beretania Street, Chamber Level. Metered parking is also located on the Chamber Level.
September 15: Those electing to receive the partial distribution must return all necessary forms to Bank of Hawaii by September 15, 2008 in order to receive the October 1, 2008 distribution. Forms received by Bank of Hawaii after September 15 will be processed after those submitted by that date, which may result in your distribution being delayed past October 1.
October 1, 2008: Distributions will be mailed or deposited into your accounts as requested.
Please pass this information on to any Aloha Flight Attendant who does not receive AFA emails.
The Flight Attendant's Pension Plan has begun a transition (which will be completed by the end of September, 2008) of liquidating the existing portfolios and investing the proceeds into the Fidelity Advisor Freedom 2010 fund. This fund has a lower equity exposure (approximately 50%) than the existing portfolio. Participants' balances that remain in the Pension Plan will be invested in this fund up to the date of the final liquidation of the plan. Details of a no sales charge rollover option with Fidelity will be explained in the mailing and employee education meetings.
Thank you,
The MEC & Benefits Board
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