BNSF RAILWAY COMPANY NON-SALARIED
EMPLOYEES 401(k) RETIREMENT PLAN
Notes to Financial
As of December 31, 2020 and 2019 and for the
Year Ended December 31, 2020
NOTE 1 - DESCRIPTION OF PLAN
The following description of the BNSF Railway
Employees 401(k) Retirement Plan (the Plan) provides only general
information. Participants should refer to the Plan document for a
more complete description of the Plan’s provisions. BNSF Railway
Company, including its majority-owned subsidiaries, (collectively,
BNSF Railway) is a wholly-owned subsidiary of Burlington Northern
Santa Fe, LLC (BNSF).
The purpose of the Plan, which is subject to the
provisions of the Employee Retirement Income Security Act of 1974
(ERISA), is to offer eligible non-salaried employees of BNSF Railway
an opportunity to invest a portion of their income on a regular
basis through payroll deductions. These amounts, supplemented in
some cases by BNSF Railway’s matching contributions, may be
invested at the participant’s direction in various investment
Effective January 1, 2011, based on a
Memorandum of Agreement between the Brotherhood of Locomotive
Engineers and Trainmen (BLET) and BNSF Railway Company, on
approximately March 1 of each year, BNSF Railway will
contribute a single vested contribution on behalf of each eligible
employee (BLET Contribution).
The Plan is administered by BNSF’s Vice President
and Chief Human Resources Officer (the Plan Administrator).
Vanguard Fiduciary Trust Company (the Trustee) is responsible for
the custody and management of the Plan’s assets, and an affiliate
of the Trustee provides recordkeeping services to the Plan. BNSF
Railway’s Employee Benefits Committee is responsible for appointing
and removing the Trustee, specifying the investment options
available under the Plan (if not otherwise mandated by the Plan),
and reviewing benefit claims appeals.
The Plan participates in the BNSF 401(k) Plans
Master Trust (the Master Trust) and, along with the Burlington
Northern Santa Fe Investment and Retirement Plan (the Salaried
Plan), owns a percentage of the assets in the Master Trust.
Employees eligible under the Plan include any
person who establishes seniority under a collective bargaining
agreement that provides for participation in this Plan. An employee
shall be eligible to participate in the Plan upon the earlier of
completion of not less than one year of continuous service with
BNSF Railway or a 12-month
period, computed with reference to the date on which the employee’s
employment commenced, and anniversaries thereof, during which the
employee has not less than 1,000 hours of service, or a shorter
period of participation service that an applicable collective
bargaining agreement may provide for an eligible employee.
Eligible employees may become participants in the
Plan by authorizing regular payroll deductions and designating an
allocation method for such deductions.
Employee eligibility for the BLET contribution is
based on employees who received earnings in the engineer’s craft
and did not terminate employment with BNSF Railway for reasons
other than death or retirement.