Airborne Express is updating the CAP/401(k) plan. Employee feedback indicates that employees would like to see faster updates on the Phone Benefits System, more information about the investments opportunities, investment educational information and web access to your accounts. Airborne has made a change to speed up the reporting on the phone benefits system and is considering making other changes as well.

EFFECTIVE IMMEDIATELY: In order to speed up the reporting on the Phone Benefits System, the 401(k) plan’s accounting method has gone from an accrual basis to a cash-basis. What does this mean to you? It means your account balance is now updated with investment returns activity within two to three business days after month end.

For example: If you call 800-504-401k after the third business day in October, your CAP/401(k) balance will already be updated to September 30!

Using the cash basis method, your month-end (in this example: September) balance report includes investment returns through the end of September and it includes your August contributions that were received into the trust in mid-September. September payroll deductions and loan repayments will be reported with the October update. Previously, you had to wait until approximately the 20th of each month to hear the prior month investment returns.

The Phone Benefits System will still be updated once a month with your account balance but will be sooner each month than before.

Coming 4TH QUARTER: Your monthly contributions will be deposited into the CAP/401(k) Trust after each payroll period rather than once a month. This change will speed the investment of your contributions and Airborne’s matching funds into the markets. This change requires significant program changes with Airborne payroll system before it can be implemented. The Phone Benefits System will still be updated once a month with your account balance.

Over the past few years, Airborne has added several new features to our 401(k) plan including more investment options and monthly investment changes instead of quarterly. Today many 401(k) plans have web access for employees, daily valuations (investment results reported each day), the ability to make changes each day, more investment education information and more fund options.

Many Airborne employees have asked that these additional services be included as part of our 401(k) plan.

In order to add these types of services, Airborne will need to identify the best vendor to provide these new service options, including reviewing our existing 401(k) vendors as well as reviewing other 401(k) vendors.

As a part of this process, employees were recently asked to participate in a short survey to help determine what features are important to you. Results of the survey will be shared with employees after they have been analyzed. Based on your input as well as the advice of the Company’s Finance and Human Resources professionals, we will be able to select a vendor option that provides the best overall value and customer service for employees. Once a selection is made you will receive all the information on your new options. We would anticipate having a vendor in place by 2nd or 3rd quarter 2001. Your CAP/401(k) Plan is an important part of your overall benefits package. Airborne is committed to providing you with a quality 401(k) plan.

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