2025 Status of Union Pacific Agreement (Union) Employee 401k Retirement Plan

(Status as of December 31^st, 2024)

In this comprehensive guide, we’ll explore the vital topic of the Union Pacific Agreement (Union) Employee 401(k) Retirement Plan. As a railroad employee or retiree, understanding the ins and outs of this plan is crucial.

Keep in mind that this is for agreement employees that participate in Union Pacific Agreement employee 401K plan. Therefore, check your 401K plan documents to see if you are covered by the 2025 Status of Union Pacific Agreement (Union) Employee 401k Retirement Plan.

The information in this insight was gathered from the most recent report that was published on 6/26/2025 to the SEC.

Let’s break down the details, shed light on the plan’s current status, and empower you with actionable insights. Your retirement benefits and the information you need to know to stay up to date on the 401K status!

Key Takeaways 2025 Status of Union Pacific Agreement (Union) Employee 401k Retirement Plan

Plan Overview

• Plan Type: Defined contribution 401(k) plan for unionized employees of Union Pacific Railroad Company
• Trustee: Vanguard Fiduciary Trust Company (VFTC)
• Coverage: Employees represented by rail unions and eligible to participate in the plan.
• Eligibility: One year of service requirement or employment as of July 1, 1990 effective date

Financial Performance (2024)

• Total Net Assets: $2.39 billion (up from $2.26 billion in 2023)
• Net Increase: $134.7 million for the year
• Investment Returns: $229.3 million in net investment income
• Total Contributions: $107.1 million
  • Participant contributions: $105.7 million
  • Employer matching: $1.4 million
• Distributions: $199.9 million paid to participants

Investment Structure

• Master Trust Participation: Assets commingled with other Union Pacific retirement plans
• Total Master Trust Assets: $4.72 billion (Agreement Employee plan interest is $2.38 Billion)
• Investment Mix:
  • Common/collective trusts: $1.80 billion (75% of plan assets)
  • Union Pacific common stock: $298.8 million (12.5%)
  • Mutual funds: $160.6 million (6.7%)
  • Investments at contracts value: $134.0 million (5.6%)

Plan Features

• Contribution Limits: 1% to 75% of eligible compensation
• Contribution Types: Pre-tax, Roth, and after-tax options available
• Catch-up Contributions: Available for participants age 50+
• Company Match: 50% of contributions up to 6% of compensation
• Stock Fund Limit: Maximum 20% allocation to Union Pacific common stock
• Vesting: 100% immediate vesting for all contributions
• Loans: Not available under this plan

Notable Changes & Events

• ESOP Conversion: Union Pacific common stock fund converted to Employee Stock Ownership Plan (ESOP) structure on December 1, 2023
• Dividend Options: Participants can elect cash distribution or reinvestment of stock dividends

Compliance Issues

• Prohibited Transaction: $62 in participant contributions deposited late due to administrative error
• Correction: Company corrected the issue in 2025 with interest

Investment Options

• Default Investment: Available for participants who don’t provide investment directions
• Managed Account Program: Vanguard Advisers discretionary management available
• Stable Value Fund: Union Pacific fixed income fund with a small portion of guaranteed investment contracts
• Diversified Options: Domestic/international stock funds, balanced funds, bond funds

Distribution Features

• Timing: Upon separation from service or required beginning date
• Forms: Single sum or installment payments available
• Stock Distributions: Cash default, but in-kind stock distribution available
• In-Service Withdrawals: Available for hardship, age 59½, and other qualifying events

Administrative Details

• Audit Firm: Deloitte & Touche LLP (auditor since 1990)
• Tax Status: IRS determination letter confirms qualified plan status
• ERISA Compliance: Subject to Employee Retirement Income Security Act provisions

These takeaways provide a comprehensive overview of the 2025 Status of Union Pacific Agreement (Union) Employee 401k Retirement Plan, highlighting its structure, financial performance, and key features.

Unveiling the 2025 Status of Union Pacific Agreement (Union) Employee 401k Retirement Plan

Union Pacific provides their agreement employees with an additional way to save for retirement, outside of Railroad retirement income (tier 1 and Teir 2 benefits). What is 401(K)?

401(K) allows employees the ability to save for retirement through pre-tax contributions from their pay to the 401(K).

UP Agreement employees are eligible to participate after one year of service, and beginning the first day of the month following the one year of service requirement. However, new hire agreement employees are not longer allowed to participate in this plan for the fruit express plan participants only.

The Blueprint of the Union Pacific 401(k) Retirement Plan

The 2025 Status of Union Pacific Agreement (Union) Employee 401k Retirement Plan is a cornerstone of retirement planning. Here’s a snapshot of how it operates:

Facts about UP agreement 401(K):

• Your contributions to the 401K are 100% vested. Meaning every dollar, you contribute are yours and if you decide to leave UP you can take your 401K account balance with you to your new job (or leave at Union Pacific), cash out, or rollover to an individual IRA/Roth.  
• Union Pacific contribution, you can receive a matching contribution if you are represented by a rail union that has negotiated a matching contribution with the company. UP will match 50% of your combined pre-tax, Roth contributions, and after-tax contributions up to 6% of the participant’s eligible compensation per payroll period.  
• Investment risk is on you as the employee; meaning, you pick the investments and if those investments underperform the 401K/Union Pacific is not responsible. However, UP and the investment company (Vanguard) that manages the investments does have the responsibility to offers suitable investments for the greater employee base. This may be more conservative and at times more aggressive than your individual goals and needs, but you have options.
• Loans, the UP 401K plan for agreement employees does not offer you the option to take a loans from your 401K account.
• In service withdrawals, are permitted according to the plan provisions for
  • Withdrawals of rollover contributions or after-tax contributions. Withdrawals for qualified birth or adoption distributions. Hardship withdrawals
  • And withdrawals on or after ag 59 ½

Quick side note

An additional benefit, you have as an agreement employee is access to the Employee Stock Ownership Plan. The ESOP for short allows you to own UNP stock.

You can only allocate 20% to the Employee Stock Ownership Plan.

For example, if you contributed $100 to your 401K, $20 can be selected to be allocated to the ESOP. Now, fast forward 10, 20, 30 years to retirement and you have not only saved in your 401k, accumulated benefits in Railroad Retirement, but also have company stock that you can sell if needed or keep the stock and collect UNP’s dividend.

Let’s dive into the status of the 2025 Status of Union Pacific Agreement (Union) Employee 401k Retirement Plan and what it means for you.

A Closer Look at the Plan’s Status

To provide you with the most accurate insights, we’ve explored the official source: the Securities and Exchange Commission (SEC) filing for Union Pacific. As of the filing date, the plan remains active and operational, serving as a vehicle to help you prepare for retirement.

• Total 401K Plan Assets: $2.39 Billion as of Dec. 31^st, 2024. Balance was $2.26 Billion as of Dec. 31^st 2023 (actually increase of $13 Million).
• Total Distributions:
  • Distributions, $200 Million for 2024
• Net increase in Assets from 2023 to 2024 is $134.7 Million
• Total assets available for benefits (payable to employees 401K participants): $2.39 Billion as of Dec. 31^st, 2024
• Administrative Expenses:  Admin fees are for investment management and transaction fees related to the assets in the 401K Plan. $1.7 Million in 2024 compared to $1.5 Million for 2023. Expenses increased as expected with the increase of assets.
  • Admin, management fees are in portion to the assets balance; therefore, as assets increase or decrease the Admin, management fees increase or decrease as well.

Embracing Your 2025 Status of Union Pacific Agreement (Union) Employee 401k Retirement Plan

Now that you’re aware of the Union Pacific 401(k) Retirement Plan’s significance, let’s explore how you can make the most of it.

1. Understand Your Benefits

Information about the company benefits can be accessed on the UP website. Also, when determining your retirement need the rule of thumb is 4% withdrawal from a 401K over a retiree retirement years will suffice to provide for the desired retirement in addition to Railroad Retirement Benefits.

And I actually learned the following technique while working at the Railroad. Each year increase your saving rate for the amount of increase you received over last year. For example, if your base is $70K and this year base rate was increased to $72,500. Save the additional $2,500 either in your 401K or outside savings.

2. Leverage Employer Match

Union Pacific’s contribution match is an excellent opportunity. Contribute enough to maximize this match, it’s like free money towards your retirement. For example, using the $70K base pay and you contribute 6% to the 401K; UP will match 50%. Meaning $70K * 6% = $4,200 for your contribution and $2,100 for the company match on your behalf from UP, HIGHBALL!

3. Diversify Your Portfolio

While investing can seem daunting, diversification is key. Spread your investments across various assets to mitigate risk and optimize returns.

For example, UP offers the ability to invest in the UP Stock (where you purchase UNP equivalent share), a Cash alternative, and various mutual funds. Depending on your risk tolerance you may prefer a more aggressive option of investing more in the stock fund and the aggressive mutual fund options.

Or if you prefer a more conservative option, you can purchase cash solution and the conservative mutual fund option.   

4. Monitor and Adjust

Your financial goals and risk tolerance may change over time. Regularly review and adjust your investment choices to align with your evolving needs.

Furthermore, Vanguard offers target date mutual funds that targets a year in the future typically related to your potential retirement year. And the investments in the mutual fund adjust to more conservative as the investment portfolio gets closer to the target year.

Quick tip, if you are a more aggressive investor and your retirement year is 2030 then you could select a target date fund of 2035 or any time after 2030 to have a slightly more aggressive allocation and we still suggest reducing the allocation as you get closer to retirement.

5. Plan Ahead

Don’t delay! The earlier you start contributing to your 401(k), the more time your money has to grow through compound interest.

When’s the best time to plant a pomegranate tree? 20 years ago, when’s the 2^nd best time to plant a pomegranate tree…. today. Why delay saving today throws money to the future, and todays savings earn and those earnings accumulate year over year.

Conclusion

The Union Pacific Agreement Employee 401(k) Retirement Thrift Plan is your “train order” to a secure retirement. By understanding its mechanics and staying informed about its status, you’re equipping yourself for financial success.

Todo List:

• before tying up check the extra board,
• and how many more days to Federal Rest?

Have you reviewed your 401K investments and how you are tracking to your retirement goal? Reach out to us today for personalized guidance.

Let’s ensure your 2025 Status of Union Pacific Agreement (Union) Employee 401k Retirement Plan is a powerful tool in securing your future. Your retirement dreams await. Let’s start planning now!