NHO International eff 010110 - Benefits Online

benefits.northropgrumman.com

NHO International eff 010110 - Benefits Online

Welcome to Northrop Grumman

New Hire Benefits Orientation

for International Employees


Today’s Agenda

• Northrop Grumman Health Plan

• Northrop Grumman Savings Plan

• Enrollment

• Questions

2


Northrop Grumman Health Plan Overview

Basic benefits

• Basic Life

• Basic Accidental Death

and Dismemberment

(AD&D)

• Basic Long-Term

Disability (LTD)*

• Employee Assistance

Program (EAP)

Optional benefits

• Medical

• Dental

• Vision

• Optional LTD

• Optional life insurance

(employee, spouse,

children)

• Optional AD&D insurance

(employee, family)

• Flexible Spending Accounts

(FSAs)

• Group Legal

You must

enroll to

select these

benefits

* 100% paid by some business units

3


Who Is Eligible?

• Most employees who regularly work 20 or more

hours per week

• Eligible dependents

– Your spouse

– Your child(ren) under age 26

– Your unmarried child(ren) of any age who are

disabled

– Your same-sex or opposite-sex domestic partner and

his or her eligible dependent child(ren) who are

under age 19 (or under age 25 if full-time students)

4


If Your Spouse or Domestic Partner Works

• For Northrop Grumman:

– One of you can enroll as an employee, the other as a dependent

OR

– Both of you can enroll separately as an employee

• Employees may cover one another for spouse life insurance

• Only one of you can enroll your eligible dependent children

in each type of coverage (medical, dental, vision, life, AD&D)

• For another employer:

– If your spouse or domestic partner’s employer offers medical coverage

and pays at least 50% of the cost of the plan, your spouse or domestic

partner must enroll in his/her employer’s medical plan during their

next annual enrollment to be eligible to enroll in medical coverage

through the Northrop Grumman Health Plan

– If your spouse’s or domestic partner’s employer subsidizes less than

50%, he/she is eligible to enroll in medical coverage through the

Northrop Grumman Health Plan without enrolling in his/her employer’s

plan

5


How the Plan Works

• You choose the coverage that best meets your needs

• Coverage levels for medical, dental, vision

– You only

– You + spouse

– You + child(ren)

– You + family

• You must make your choices by the deadline shown on your

enrollment letter (within 31 days of your hire date)

• Your choices remain in effect for the entire benefit plan year, as

long as you are eligible, July 1, 2010 — June 30, 2011

– You cannot make changes until the next enrollment period (May

2011) unless you have a qualified life event (e.g., marriage or

birth of a child)

– Changes made during Annual Enrollment in any year are effective

July 1

6


Medical Plan Options

• Aetna Global Benefits (overseas employees)

• No medical coverage

Aetna’s web address: www.aetnaglobalbenefits.com/

Click on Members: Login/Register/Enroll.

7


Aetna Global Medical Plan

Overseas

In-network

(In the U.S.)

Out-of-network

(In the U.S.)

Out-of-Area

(In the U.S.)

Benefit plan

year

deductible

$100 per

individual/

$200 per family

$100 per

individual/

$200 per family

$200 per individual/

$400 per family

$200 per

individual/

$400 per family

Office visit

coverage

100% after

deductible

100% after $10

co-pay

70% after

deductible

80% after

deductible

Benefit plan

year out-ofpocket

maximum

$500 per

individual/

$1,000 per

family

$500 per

individual/

$1,000 per

family

$1,000 per

individual/

$2,000 per family

$1,000 per

individual/

$2,000 per

family

Lifetime

Maximum

Not Applicable

8


Aetna Global Medical Plan

Overseas

In-network

(In the U.S.)

Out-ofnetwork

(In the U.S.)

Out-of-Area

(In the U.S.)

Hospital Services

100% after

deductible

90% after

deductible

70% after

deductible

80% after

deductible

X-ray & Lab tests

100% after

deductible

90% after

deductible

70% after

deductible

80% after

deductible

Mental Health &

Substance Abuse

Treatment

100% after

deductible

90% after

deductible

70% after

deductible

80% after

deductible

Prescription Drug

Coverage

100% after

deductible

$5 co-pay for

generic

$15 co-pay for

brand name

70% after

deductible

80% after

deductible

9


Aetna Global Benefits (AGB) Contact Information

• AGB Membership Services

– 1-800-231-7729

– 1-813-775-0190 (collect)

– agbservice@aetna.com (email)

10


Aetna Online Resources

11


Aetna Online Resources

12


Aetna Online Resources

13


Best Doctors

• Provides you with the opportunity to have a worldrenowned

doctor review your medical case and

ensure you have the right diagnosis

• Available to employees and their covered

dependents who are enrolled in a medical plan

through the Northrop Grumman Health Plan

• Included in the cost of your health plan – you do

not pay any additional cost

14


Tobacco Cessation Program –

Quit for Life

• Personalized quit program

• Confidential phone based treatment sessions

• Delivery of recommended nicotine

replacement products (e.g. the patch, gum)

• Available, at no cost, to employees and their

dependents over the age of 18 enrolled in a

Northrop Grumman medical plan option

15


International Employee Assistance

Program (EAP)

Work/Life Solutions

• Confidential counseling, support and resources, at no cost, for all

Northrop Grumman employees and their eligible family members

• Designed to help with personal and work-related issues

• Offers assistance in adjusting to a new country and culture

• Work/Life benefits include information, resources and referrals for child

and elder care, adoption assistance, relocation information and much

more

• Provides 5 free counseling sessions per person per issue per plan year

1-800-982-8161

24 hrs a day, 7 days a week

16


Dental Plan Options

• Aetna Global Dental Plan (included with

Aetna Global medical)

• Delta Dental PPO (available only if not

enrolled in Aetna Global)

• No dental coverage

17


Aetna Global Dental Plan

Dental Care

Deductible

$25 Individual

$50 Family

Annual Maximum

(per person)

Your Coinsurance

$1,500 Per person

Preventive & Diagnostic 100%

Basic Restorative 80%

Major Restorative 50%

Orthodontia

50%, up to a lifetime

maximum of $1,000

18


Comparing the Delta Dental PPO Plan Options

Dental Care Dental Care Plus Preventive Care

Deductible

Plan Year Maximum

(per person)

$50/$100 Preferred

$100/$200 Premier

$150/$250 Out-of-

Network

$1,500 Preferred

$1,250 Premier

$1,000 Out-of-network

$50/$100 Preferred

$100/$200 Premier

$150/$250 Out-of-

Network

$2,000 Preferred

$1,500 Premier

$1,000 Out-of-network

$0

(in- and out-of-network)

$500

(in- and out-of-network)

Coverage

Preventive 100% 100% 100%

Basic

Restorative

80% Preferred

75% Premier

70% Out-of-network

80% Preferred

75% Premier

70% Out-network

Not covered

Major

50% 50% Not covered

Restorative

Orthodontia Not covered 50% up to a lifetime

maximum of $2,000

Not covered

19


Vision Plan Option

• Northrop Grumman Vision Plan

– Administered by Vision Service Plan (VSP)

– You can see any vision provider, but will save money when

you visit a VSP network provider

• In-network coverage includes:

– Exams and lenses each benefit plan year ($10 copay)

– Frames every two benefit plan years ($10 copay)

• Plan pays up to $120

– Contact lenses (instead of eyeglasses) every benefit plan

year

• Plan pays up to $105

• Includes disposable lenses

20


Flexible Spending Account (FSA)

Options

Health

Care FSA

Description

– Allows you to set aside pre-tax

money to pay for eligible health care

expenses (e.g. deductibles,

copays, coinsurance, orthodontics

and some over-the-counter supplies)

– Elections are made on an annual basis

Maximum Annual

Contribution

$5,000

Dependent

Day Care FSA

– You can set aside pre-tax dollars from

your paycheck to pay for eligible

dependent day care expenses

– Elections are made on an annual basis

$5,000*

*If you earn $105,000 or more, your annual contribution limit to the Dependent Care FSA is $2,500.

You must use all the dollars in your FSA accounts,

or lose them at the end of the grace period (incur expenses by September 15, 2011

and file them by December 31, 2011), so estimate your expenses carefully!

21


Health Care FSAs and Over-the-Counter

(OTC) Medications in 2011

• Currently, Health Care FSAs reimburse participants for covered

OTC medications and supplies.

• The recently enacted health care reform law prohibits health

care flexible spending accounts from reimbursing for OTC drug

expenses for taxable years beginning after December 31, 2010.

• The Northrop Grumman Health Care Flexible Spending Account

(FSA) will not be permitted to reimburse for OTC drug expenses

that you incur on or after January 1, 2011, unless you have a

prescription for the drug or the drug is insulin.

• Eligible OTC supplies will continue to be a reimbursable expense

• You should consult www.benesyst.net for a complete list of

eligible OTC expenses beginning January 1, 2011

22


Automatic FSA Claims

Reimbursement

• Your carrier will submit claims on your behalf

if you enroll in the Health Care FSA and select:

– A Delta Dental PPO plan option

• Benesyst (the FSA claims administrator) will

automatically reimburse you through your

health care FSA

• You are automatically enrolled in this feature

and must call the Northrop Grumman Benefits

Center to opt out.

23


Health Care FSAs and Over-the-Counter

(OTC) Medications in 2011

• The Patient Protection and Affordable Care Act prohibits health

care flexible spending accounts from reimbursing for OTC drug

expenses for taxable years beginning after December 31, 2010.

• The Northrop Grumman Health Care Flexible Spending Account

(FSA) is not permitted to reimburse for OTC drug expenses

incurred on or after January 1, 2011, unless you have a

prescription for the drug, or the drug is insulin.

• Eligible OTC supplies will continue to be a reimbursable expense

• You should consult www.benesyst.net for a complete list of

eligible OTC expenses as of January 1, 2011

24


Pharmacy Benefits Card for Health Care FSA

• Health Care FSA participants will receive a Pharmacy Benefits

Card to be used for prescription (retail and mail-order) and

eligible over-the-counter (OTC) purchases

– The card cannot be used for the purchase of any OTC drugs,

whether or not you have a prescription.

• Any eligible items or co-pays will be automatically charged to

your FSA account (as long as there is a sufficient balance)

• If you utilize mail order service for delivery of your

prescriptions, be sure to provide your carrier with your

Pharmacy Benefits Card account number

• Visit www.benesyst.net for a list of participating merchants

25


Long-Term Disability (LTD) Benefits

• Basic LTD*

– 50% of your monthly base salary

• Optional LTD

– Your options are:

• Additional 10% for total coverage of 60% of your

monthly base salary

• Additional 20% for total coverage of 70% of your

monthly base salary

– No evidence of insurability (EOI) is required if you

enroll when newly eligible

• Maximum monthly benefit of $15,000 (reduced by

any other disability income you receive)

* 100% paid by some business units

26


Life Insurance

• Basic life

– Greater of: 1 X your annual base salary or $50,000

– Can limit to $50,000 to avoid imputed income

– 100% company-paid

• Optional life

– You may choose to purchase additional coverage for

yourself, your spouse/domestic partner, and your children

• Employee: 1, 2, 3, 4, 5, 6, 7, or 8 x your base salary,

up to $1.25 million

• Spouse/domestic partner: 1, 2, 3, or 4 x your coverage

amount, $25,000, $50,000 (up to a maximum of the lesser of 50%

of your total coverage — basic and optional — or $500,000)

• Child: $10,000, $20,000, or $30,000

– You pay for coverage with after-tax payroll deductions

27


Evidence of Insurability (EOI) for

Life Insurance

• No EOI required when you are first eligible, unless

you:

– Select optional employee life insurance coverage

greater than 5 x annual base pay or $600,000,

whichever is less

– Select optional spouse coverage greater than

$50,000

– Enroll after your initial eligibility period expires

• If you are required to submit EOI, your additional

coverage will not go into effect until the EOI is

approved by the carrier

28


Accidental Death and

Dismemberment (AD&D) Insurance

• Basic AD&D

– Greater of $50,000 or 1 x your annual base salary

– 100% company-paid

• Optional AD&D

– Employee only

• You may purchase coverage from 1 up to 10 x your annual base

salary, up to a maximum of $1 million

– Employee + family

• You may purchase coverage from 1 up to 10 x your annual base

salary, up to a maximum of $1 million

• Family coverage amounts vary depending on who’s covered

– You pay for coverage with after-tax payroll deductions

29


Beneficiary Designations

• You must select a beneficiary for your life and

AD&D insurance

• Electing a beneficiary is easy and important

– You can review and update your beneficiary

designations on My Benefits Access available through

Benefits OnLine

– If you do not have online access, you can designate

your beneficiary by calling the NGBC

30


Group Legal

Hyatt Legal Plans

• Two plan options — Advantage and Basic

• Both plans provide coverage for legal services, such as:

– Legal telephone advice and consultations

– Document preparation

– Personal injury

– Will and Estate matters

• For plan details visit www.legalplans.com and select

“Thinking About Enrolling”

– Password for the Basic Plan: 6210010

– Password for the Advantage Plan: 6220010

31


Northrop Grumman Savings Plan


Northrop Grumman Savings Plan —

Employee Contributions

• You may contribute between 1%

and 75% of eligible compensation

in 1% increments

• Tax-deferred , Roth 401(k) and/or

after-tax contributions

• Age 50 catch-up contributions

• If you are considered a highly

compensated employee, your

contributions may be limited in a

subsequent year

Investment options

• Retirement Path Portfolios

• Core investment funds

• Schwab Personal Choice

Retirement Account®

33


Northrop Grumman Savings Plan

Loans

Other features

• Up to two loans at one time

• Maximum of $50,000

• Company match and

company basic contributions

(depending on business

unit)

• 100% immediate vesting in

company-matching and

basic contributions

• Optional automatic annual

escalation of contributions

• Incoming rollovers accepted

from a qualified plan

34


2011 Savings Contribution Limits

Your Tax-Deferred

and/or Roth 401(k)

Contribution Limit

Limit on Total

Contributions (your

contributions plus

Northrop Grumman’s

contributions)

If you are Under

Age 50

Maximum of $16,500

100% of annual pay or

$49,000 or whichever is

less

*If you are age

50 or older

Additional $5,500 in

catch-up contributions,

for a maximum of up to

$22,000

100% of annual pay or

$54,500 ($49,000 +

$5,500 in catch-up

contributions),

whichever is less

* You must be at least 50 years old by the end of 2011 to be

eligible to make catch-up contributions in 2011.

35


Investment Options

Retirement Path Portfolios

• Five investment options

– Target Retirement Path

– 2020 Retirement Path

– 2030 Retirement Path

– 2040 Retirement Path

– 2050 Retirement Path

For participants who are retired

or approaching retirement

For participants who are

beginning their careers

• You select a portfolio based on your expected

retirement date (typically age 65)

• Each portfolio is well diversified and designed to meet

your investment goals prior to and beyond retirement

• As you get closer to your expected retirement date, the

investment manager adjusts the portfolio mix to

maximize return for the level of risk appropriate

at each life stage

36


Investment Options (cont’d)

Build and Monitor Your Own Portfolio

• Core Investment Funds

– Stable Value Fund

– U.S. Fixed Income Fund

– Balanced Fund

– U.S. Equity Fund

International Equity Fund

– Small Cap Fund

– Emerging Markets Equity Fund

– Northrop Grumman Fund

• Schwab Personal

Choice Retirement

Account® (PCRA)

– Self-directed

brokerage account

– Invest among a

selection of more than

3,200 mutual funds

and individual

securities (e.g., stocks

and bonds)

37


Automatic Enrollment

• If you have not enrolled in the Northrop Grumman Savings

Plan within approximately 45 days of your date of hire, you will

be automatically enrolled at a contribution rate of 2%

• Your contributions will be deducted on a tax-deferred basis and

invested in the Retirement Path portfolio that most closely

targets the year in which you will attain age 65

• After you are enrolled, you may change your contribution rate

and investment choices at any time

• If you do not want to enroll at this time, log on to My Benefits

Access or call the Northrop Grumman Benefits Center to

decline enrollment

• By declining, you may miss the benefit of receiving company

matching contributions (if applicable)

38


Northrop Grumman Savings Plan ─

Retirement Account Contribution


Retirement Account Contributions

• Eligibility is based on your business unit and your past

employment with Northrop Grumman (if applicable)

• No enrollment is necessary and you contribute

nothing

• Northrop Grumman’s contributions will be based on

your age at the end of the calendar year and your

eligible compensation:

– Less than age 35: 3%

– Age 35 – 49: 4%

– Age 50 and older: 5%

• Contributions will be made with each pay cycle

40


Retirement Account Contributions

• You decide how your Retirement Account contributions will be

invested.

– You may choose to invest these contributions in any of the

Retirement Path portfolios, the core investment funds, or Schwab

Personal Choice Retirement Account® (PCRA).

• Unless you change the investment direction, contributions will

be invested in the Retirement Path Portfolio that most closely

targets the year in which you will attain age 65

• Contributions will be vested after three years of service

• Beneficiary is the same as for the Savings Plan

• Retirement Account contributions are not available for loans

• You may only withdraw vested Retirement Account contributions

when you

– reach age 59 ½ or

– after separation from employment or

– become disabled

41


Enrolling in Your Benefits


Enrolling is Easy

• Go to Benefits OnLine at http://benefits.northropgrumman.com

and click on the “New Hire Enrollment” link

• Review highlights of the Northrop Grumman Benefits Program and

enroll in the Health and Savings Plans

• Print a confirmation statement once enrollment has been completed

and saved

No Web Access?

• Call the Northrop Grumman Benefits Center (NGBC) at

1-800-894-4194 Monday through Friday, 9:00 a.m. to 6:00 p.m.

Eastern time

• Outside the United States call 718-354-1338

• Hearing impaired participants will need to use a relay service through

service provider.

43


Benefits OnLine

http://benefits.northropgrumman.com

44


New Hire Enrollment Page

45


My Benefits Access Log On

46


My Benefits Access -

Registration as a New User

47


My Benefits Access – Welcome Screen

48


My Benefits Access – Enrollment Steps

49


My Benefits Access – Enrolling in Your Benefits

50


My Benefits Access – Enrolling in Medical Example

51


Final Reminders

• You must enroll in optional Health Plan benefits if you

want coverage for the benefit plan year

– Enroll by the deadline shown on your enrollment

letter (within 31 days of date of hire)

– Even if you do not want optional coverage, go online

or call to elect “no coverage”

– If you do not enroll, you will not have optional

benefits for yourself or your family

• Enroll in the Savings Plan

– If you do not want to participate, you must decline

enrollment

• Elect your beneficiaries for basic and optional life and

AD&D insurance, and for the Savings Plan

52


Questions?

53

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