GM 401(k) Error and Vice President Letter

Good Morning All,

Vice President Dittes sent notice (see attached) to Local Union Leadership today regarding an approximately $2.6 million dollar correction total that will be issued to potentially thousands of members (active and otherwise) in their 401(k) plans. The error was a miscalculation in the Straight Time Portion of Overtime from 2013 to 2019. Members received the first part of the correction this week from May 23rd to May 26th.  Most of these will be small amounts with a maximum correction of $962.22 and the smallest correction of $.01. The Vice President’s letter states UBRs will be given notice. Please treat this as your notice. Members will be able to see the correction on Fidelity’s NetBenefits app.

The second part of this will be the potential lost earnings. Earnings, if any, are targeted for the fall of 2022. Earnings are going to be calculated and paid pursuant to Federal Law, requirements from the IRS, and the Plan Document.

I would also like to thank Shawn Cook, UBR at Local 653 for the Milford Proving Grounds, for bringing this to our attention.

In addition, there was another smaller error from 2019 that was corrected in December of 2021. Those potential lost earnings are targeted to be paid in the Fall of 2022.

This was a team effort on the part of the UBRs, our technical and legal professionals here at the UAW, and the Benefit Plan Section (Leo and Sheila). Thankfully, errors like this are rare. It is important to keep in mind we, as Union leaders, need to protect the Collective Bargaining Agreement. Always review the Supplemental Agreements to make sure members are getting the benefit of the bargain.

Due to the time frame of the correction, there are many members who may be impacted. If you have questions about specific members, please reach out to your assigned International Representative (Leo or Sheila) for any questions or concerns you may have. Once again, our office number is 313-926-5127.

Please give time for the corrections to post and remember potential lost earnings will not be paid yet and are targeted to be paid until the fall of 2022.

This is a great day for our membership. Thank you all for helping us serve this membership to the highest level.

In Solidarity,

Zach Adams
Assistant Director
UAW General Motors Department

PDF icon Terry Dittes Letter