Eligibility and enrollment

You are eligible to enroll in the Plan on the first day you are employed with Union Pacific Corporation or one of its participating subsidiaries.

For your convenience, you will be automatically enrolled in the Plan as soon as administratively possible following 60 days from the date Vanguard is notified that you have been hired by Union Pacific. You can enroll sooner if you like. To do so, contact Vanguard.

You will be automatically enrolled at a pre-tax contribution rate of 6% of your eligible earnings. You can change your contribution rate by contacting Vanguard. Unless you choose your own funds, all contributions will be invested in the Vanguard Target Retirement Trust Select with the target date closest to the year in which you will reach age 65. You can change your investment direction before you are automatically enrolled or anytime thereafter by contacting Vanguard.

Whenever you invest, there's a chance you could lose the money. Investments in Target Retirement Trusts are subject to the risks of their underlying funds. The year in the trust name refers to the approximate year (the target date) when an investor in the trust would retire and leave the workforce. The trust will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. The Income Trust has fixed investment allocations and is designed for investors who are already retired. An investment in a Target Retirement Trust is not guaranteed at any time, including on or after the target date.

Important information about your enrollment
You have the right not to contribute to the Plan. In addition, at any time, you have the right to contribute an amount different than the automatic contribution amount or to invest in funds other than your Plan's default fund.

Note: If you're a new hire, which includes new transfers from an Agreement to a Non Agreement position, you'll be enrolled automatically unless you opt out. 

You will not be automatically enrolled in the plan if you are included in one of the two groups below:

1. A participant returning from a leave of absence or long-term disability.
2. A participant who opted out of a prior Union Pacific plan and is now eligible for this plan.
   
   You can enroll by contacting Vanguard.

If you do not want to participate in the Plan, you must contact Vanguard before your automatic enrollment goes into effect to prevent any payroll deductions from occurring. If you want to change your contribution amount or the funds in which your contributions are invested, contact Vanguard.

A quarterly fee of $7.25 ($29 annually) will be deducted from your account for recordkeeping services. This fee has been in effect since January 1, 2016.

A Vanguard Target Retirement Trust is a collective trust, not a mutual fund. This type of investment is offered only in retirement plans like yours. Before you invest, get the details. Know and carefully consider the objective, risks, charges, and expenses. Vanguard Fiduciary Trust Company manages the Vanguard collective trusts.