New Target Date Investment Funds Bulletin ... - Benefits Connect

BENEFITS BULLETIN
March 2013
SAVINGS PLAN ENHANCEMENTS EFFECTIVE APRIL 1 , 2013
Huntington Ingalls is enhancing our defined contribution plan (the Savings Plans). We will offer you more
investment fund options with more choice and flexibility in how you manage your retirement savings. In
this Benefits Bulletin, you’ll learn about the new investment funds, updates to current funds, how these
changes affect you and any actions for you to take.
New Target-Date Investment Funds
We’re adding five new target-date funds to the Retirement Path ® funds we currently offer. The Retirement
Path ® funds currently available have target retirement dates ten years apart (e.g., 2020 Retirement Path ® ,
2030 Retirement Path ® ). The new funds have target retirement dates five years apart from the current
funds (e.g., 2015 Retirement Path ® , 2025 Retirement Path ® ), giving you an opportunity to choose a fund
with a targeted date closer to your actual planned retirement year. Along with the current Retirement
Path ® funds, you can now invest in funds representing retirement years from 2015 to 2055.
Which Savings Plans Are Affected by This Change?
The new target-date funds and Retirement Path ® fund updates will be added to the following plans:
• Huntington Ingalls Savings Plan (HISP)
• Huntington Ingalls Financial Security and Savings Program (FSSP)
• Huntington Ingalls Savings Excess Plan (SEP)
Updated Retirement Path ® Funds
A commodities allocation will be added to the Retirement Path ® funds. Examples of commodities include
petroleum, industrial metals, precious metals, agriculture, natural gas and livestock. The Retirement Path ®
funds’ commodities allocation will be realized through an investment in an index fund replicating the
Dow Jones-UBS Commodity Index, which is comprised of a diverse group of futures contracts on physical
commodities. The target allocation to commodities in the Retirement Path ® funds is a range of 3% to 5%
of total fund assets, depending on the target retirement year.
The decision to add commodities to the Retirement Path ® funds was based on extensive research on
the asset class and the impact on the risk and return characteristics of the funds. Adding commodities
increases diversification within the funds. Over time this may reduce the funds’ volatility and potentially
enhance their returns. In addition, we are making this change without any additional cost to participants.

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Targeted Investment Fund Overview
Targeted investment funds offer a simple, yet sophisticated way to invest for retirement. They are
professionally managed and provide a sound, diversified investment strategy.
The Retirement Path ® funds include different levels of risk based on the length of time until retirement.
All the Retirement Path ® fund options are designed to offer you a broadly diversified portfolio that slowly
moves to more conservative investments as the target year approaches.
HOW DO TARGET-DATE INVESTMENT FUNDS WORK?
You decide on the appropriate target-date fund, then you let the experts handle the rest.
You choose a fund. These funds are targeted to a specific retirement date. You choose the date that’s
closest to the year you plan to retire or withdraw your money. For example, if you plan to retire in 2040,
you would choose the 2040 Retirement Path ® fund. Or if your plans change, you can choose another
target-date fund that better meets your needs at any time.
The investment manager diversifies the fund’s portfolio. An investment manager determines how the
fund’s assets are allocated and invested. To help minimize the fund’s risk and provide the expected level of
performance, funds are invested among a wide variety of investments from several different asset classes.
The fund is regularly rebalanced. The investment manager gradually adjusts the investment mix to
maximize return for a given level of risk based on the length of time until retirement. The fund will slowly
move from an aggressive investment strategy when retirement is many years away to a more conservative
strategy as retirement approaches.
Year Indicates Target Year
for Retirement
Retirement
Path 2045 ®
Retirement
Path 2040 ®
Retirement Path
2050 ®
Retirement Path
2055 ®
Retirement
Path 2035 ®
Expected return %
Retirement
Path 2030 ®
Retirement
Path 2025 ®
Retirement
Path 2020 ®
US Bonds
US Large Cap Equities
International Equities
US Inflation-linked Bonds
US Small / Mid Cap Equities
Commodities
Global Real Estate
Money Market
Retirement
Path 2015 ®
Retirement Path ®
Retirement
Short
Time horizon
Long
Lower Expected risk % Higher
For illustrative purposes only, not meant to reflect the actual allocations for each year.

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WHICH INVESTMENT APPROACH IS RIGHT FOR YOU?
PATH
1
TARGET-DATE FUNDS APPROACH — A One-stop Comprehensive
Retirement Investment
Target-date funds, such as Retirement Path ® funds, offer a comprehensive way to save
and invest for retirement in a single fund. You delegate the task of managing your
retirement savings to an expert — an investment manager. The investment manager is
responsible for diversifying and regularly balancing the fund to maintain an expected
level of risk and performance over the lifecycle of the fund.
You should consider Path 1 if you are:
• A novice investor with limited knowledge of asset classes and investment strategies.
• Overwhelmed by all the investment choices available.
• Too busy or uninterested in monitoring and adjusting your investment allocations.
• Want your money to be managed by an investment professional.
PATH
2
DO-IT-YOURSELF APPROACH — Build and Manage Your Own
Portfolio of Investments
Some investors prefer to design and manage the savings and investment of their
retirement account on their own. They like to build and monitor their own investment
portfolio from several investment options, which includes diversified funds.
You should consider Path 2 if you are:
• A sophisticated investor with a deeper understanding of the stock market, trading,
and investment fees and strategies.
• Comfortable with making your own asset allocation decisions.
• Prepared to spend managing and monitoring your investments.
• Looking to build a portfolio that’s uniquely customized to you.

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WHAT'S NEXT?
Key Dates
• March 29 — The new funds and enhancements will be available as plan options, with an effective trade
date starting on April 1. On or after March 29, you can begin modeling your retirement savings using
these funds or change your current investment allocations to include the new funds.
• March 30–31 — Please note that changes made over the holiday weekend will be applied to your
account at the close of business on Monday, April 1.
Actions to Take
You don’t have to do anything. If you’re satisfied with how your account is invested today, no action is
required. If you want to explore additional options, here are some actions to consider:
• Learn more about all of your investment options by reviewing the Fund Facts on Huntington Ingalls
Benefits Connect. We’ve updated the current version of Fund Facts with the new funds and the
enhancements to the Retirement Path ® funds. Go to http://hiibenefits.com, click on the “Savings”
tab at the top, and then select “FSSP Performance” or “Savings Plan Performance” in the middle of
the page.
• Model your future retirement benefit. We’ve added the new target-date funds to the retirement
calculator on Your Benefits Resources.
• Monitor the performance of your investments to see how they perform compared to benchmark funds
and other investment options in order to make appropriate decisions in the future.