United Airlines Pilots

PCRA Brokerage Information

The Schwab Personal Choice Retirement Account® (PCRA) is a self‐directed brokerage account. Similar to a regular brokerage account, PCRA gives you access to additional investment choices other than the Target Date or Asset Class Funds. PCRA provides you the ability to buy and sell individual stocks and over 2,000 mutual funds with up to 100% of your PRAP account balance.

Johnson Financial Group can actively manage your PCRA accounts for you.

Active Health Reimbursement Account (AHRA) / Retiree Health Account (RHA)

As healthcare costs continue to rise each year, your Retiree Health Account AHRA/RHA provides a secure, tax-free source of funds to pay for healthcare-related expenses for you, your spouse, and your qualified dependents in retirement or after separation from UAL.

Your HRA/RHA can only be funded through:

• A mandatory employer contribution of $1.00 per hour paid
• Employer contributions in excess of the max limits of your PRAP
• Forfeited annual vacation

Our advisors can help you determine a strategy to either maximize or minimize contributions to your AHRA/RHA depending on your individual needs.

A Plan/PBGC

This Defined Benefit Pension Plan was terminated December 30, 2004 and assumed by the Pension Benefit Guaranty Corporation (PBGC). Your retirement benefits will be paid by the PBGC based upon priority categories. You will receive a PC‐3 or PC‐4 benefit. There are no lump sum benefit options available from the PBGC, only a selection of retirement annuity options. We suggest that you contact the PBGC and request estimated retirement benefits at various commencement ages at http://www.pbgc.gov.

Some PBGC benefits are complex or unique to your individual situation.

• How and when should you register for benefits?
• What is the best annuity option for you?
• When should you start taking your benefits?

Continental Pilots Retirement Plan (CPRP) – A Plan

This Defined Benefit Pension Plan (formerly CARP) was frozen in 2005. The retirement benefit is formula driven based on final average earnings and years of service. It is calculated to be paid over your lifetime. You will want to understand your early and normal retirement eligibility and vesting service before making your election for retirement. Another important decision will be the payment option you choose when you retire:

• Lump sum
• Single life annuity
• Joint and survivor annuity

The lump sum option historically has been a popular option. It is effectively the present value of your single lifetime annuity paid in one single sum. The calculated amount will be affected by mortality rate assumptions and current interest rates. For example, a higher interest rate environment will provide a lower lump‐sum amount. We suggest you visit Your Benefits Resources to obtain various CPRP benefit options. There is no “one‐size fits all” with this election.