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Letter Dated May 7, 2001

Directed Account Plan Update and Separation of Employment Notice

Directed Account Plan (DAP)

The TWA Credit Union (CUSO One LLC) has agreed to become a plan sponsor of the TWA Pilots Directed Account Plan. The agreement is subject to certain regulatory approvals including an IRS favorable determination letter for our plan that we are confident will be forthcoming. The DAP will continue in its present structure with no change to existing plan features and procedures. Retirees will continue to enjoy existing plan service without any action on their part. Active pilots for TWA Airlines LLC will immediately be treated as retired participants for plan purposes. This letter will help explain what that means.

TWA LLC is a newly created and wholly owned subsidiary of American Airlines and has no relationship with Trans World Airlines, Inc. Effective April 10, 2001, following the closing date of the sale of TWA’s assets to American Airlines, as an employee of TWA LLC, you are considered separated from Trans World Airlines, Inc. for all purposes.

Because you’re no longer employed by TWA, you are eligible to receive a payment of your TWA Pilots DAP and/or 401(k) account balance. You also may leave your balance in the Directed Account Plan (DAP) until the year in which you turn age 70-1/2 at which time minimum distributions based on your life expectancy will be required.

401(k) Plan

The 401(k) is expected to be terminated by 12/31/2001; therefore, both active participants and retirees with a 401(k) account balances must take action on their account. Investment options identical to the 401(k) options are available in the Directed Account Plan. Your options:

  • Request a plan-to-plan transfer moving your 401(k) balance to the Directed Account Plan (non-taxable)
  • Roll the 401(k) balance to an outside IRA or qualified plan (non-taxable)
  • Take a cash payment payable to yourself (taxable and NOT recommended)

To Request A Distribution From The DAP and/or 401(k) Plans

Note-DAP and/or 401(k) assets in the Fidelity Fund Window MUST be moved back to the DAP and/or 401(k) prior to requesting any total distribution. “Distribution Forms” (for transfer or rollover) are available online at The Special Tax Notice and “Installment Forms” (for monthly DAP installment payments) and “Beneficiary Forms” are also available online.

Call Benefits Express™ at 1-877-4TWADAP (1-877-489-2327).

You have following distribution options:

  • You may have the taxable portion of your DAP distribution paid to you, rolled over into an individual retirement account (IRA), or other qualified plan.
  • 401(k) balances can be transferred to the DAP, rolled over to an IRA, or a qualified plan.

Note- 401(k) to DAP transfers are processed each Friday. 401(k) to DAP transfers go to the DAP Stable Value Option. Call Benefits Express after the transfer is complete to reallocate to any DAP investment options.


· Any unpaid loan balances will immediately default and become taxable to you upon requesting a total distribution or rollover from the DAP or 401(k).

· Manual loan repayments, provided a balance remains in DAP, will be available upon request after TWA LLC ceases to exist. Call Benefits Express for details.


Please see the enclosed Special Tax Notice for an explanation of the tax consequences of these options. Prior to requesting a distribution, we suggest that you contact a tax advisor. You will receive the value of your account as of the date your request is processed.

To Remain In The Directed Account Plan-No Action Is Required

To leave your balance in the DAP, you do not have to do anything now. You may call Benefits Express at any time to request a distribution. If you have additional questions, please contact the DAP/401(k) Office at 314-739-7373.


Executive Director

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