ALT. Benefits – Tiffany Thatcher

PROFIT SHARING

Please be advised that the normal deferral window for profit-sharing will not be available for this year’s profit-sharing payout. Currently, the company is working on a system so members are able to separate the percentage of contributions between their regular pay check, bonus and profit-sharing payments.

Attached you will find a sheet that will give some detailed dates and examples of how members can make changes to their contributions to become effective when the profit-sharing payment is paid out.

UAW Savings Plan

Pre-Tax, Roth and After-Tax Saving Elections

Per the 2019 negotiations, the limitation on the percentage of contribution that can be deferred has been lifted. Members are now able to contribute up to 100% of their regular pay check along with any Bonus or Profit Sharing payments. However, systematically the option to separate contributions between these payments is currently in development by the company and will not be in place in time for the Profit Sharing payout.

Members who are eligible to make a deferral election under the plan and who would like to make a change to increase/decrease their contribution percentage to their Profit Sharing Payment must do so before February 28,2020.

The chart below shows how the members Profit Sharing payment and regular pay check will be impacted.

WEEKLY PAID EMPLOYEES
401(k) Rate in effect 2 PM at MLPayment EffectedPayment Date
February 28, 2020Profit Sharing PaymentMarch 13, 2020
February 28, 2020March 6 regular payMarch 6, 2020
March 6, 2020March 13 regular payroll going forward unless changedMarch 13, 2020
BI-WEEKLY PAID EMPLOYEES 
401(k) Rate in effect 2 PM at MLPayment EffectedPayment Date
February 2S, 2020Profit Sharing PaymentMarch 13, 2020
February 25, 2020March 6 regular payMarch 6, 2020
March 10, 2020March 20 regular payroll going forward unless changedMarch 20, 2020

Example 1: If Member’s current Contribution percentage is at 100% and member does nothing to change their contribution then their profit sharing and regular pay check will be subject to 100% contribution. Member’s full profit sharing payment along with their regular pay check will be deposited in to their 401k account.

Example 2: If Member’s current contribution percentage is at 100% and member changes contribution to 0% before February

25, 2020, then their March 6, 2020 regular pay check will be subject to no contribution deposited into their 401K account.

No contribution will be taken from their Profit sharing payment according to the pay date on the chart above.

If the member wants to revert back to their original contribution percentage, then they may change their contribution on March 6, 2020 before 2:00 PM for the deduction to become effective on March 13, 2020 regular pay check.

Benefit Representative
Frank Bills


Posted in FCA, UAW.