Fidelity Correspondence to Members Transitioning to Frontier Erroneous

Fidelity has confirmed to the union that the letters recently received by Frontier transitioning employees was generated automatically by the Savings plan system as a result of the termination of employment with AT&T.   They have confirmed that these letters are erroneous and that our members do not need to make additional loan payments at this time and the automatic payroll deductions or contributions and loan repayments will be continued once the accounts are established with Frontier which is scheduled to complete as previously indicated on 11/7/14. It has not been confirmed if additional correspondence will be sent to those impacted, and the union is awaiting additional information from AT&T labor relations on this matter.   Fidelity has confirmed that these participants loans will NOT be placed into default before transition is complete, and have assured the union that there is no worry of potential tax consequences.     Additional information was provided by Frontier regarding upcoming payroll deductions for 401k.     *** Frontier has advised that AT&T Final October check dated 10/31/2014 will  be deducting the full garnishment for 401k loans for the pay period 11/7*******   The reason that it was done this way was Fidelity could not accept a partial loan payment from AT&T and a partial loan payment from Frontier.   Also, the garnishment was not allowed to be split.  If the October check can not handle the deduction than Frontier will be deducting from the 11/7 paycheck.