HII Ingalls Shipbuilding Inc. Hourly Employees ... - Benefits Connect

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HII Ingalls Shipbuilding Inc. Hourly Employees’ Retirement Plan Summary Plan Description March 2011 Normal Retirement Eligibility for Normal Retirement You are eligible for a normal retirement benefit if your Company employment ends on or after your normal retirement age, or if you terminate prior to normal retirement age with a vested benefit and defer payment until you reach normal retirement age. Your normal retirement date is the first day of the month coincident with or following your normal retirement age. Normal Retirement Age Your normal retirement age for your benefit is age 65. Benefit Amount for Normal Retirement Your monthly accrued benefit at normal retirement is calculated based on whether you elect to: 1. Roll over your pre-tax FSSP Retirement Account balance to the Plan*, and not withdraw any of your after-tax contributions (with interest) from the Plan (indicated as “FSSP: Transferred In/After-Tax Deposits: Not Withdrawn” on benefit communications) 2. Roll over your pre-tax FSSP Retirement Account balance to the Plan*, and withdraw your after-tax contributions (with interest) from the Plan (indicated as “FSSP: Transferred In/After-Tax Deposits: Withdrawn” on benefit communications) 3. Not roll over your pre-tax FSSP Retirement Account balance to the Plan, and not withdraw any of your after-tax contributions (with interest) from the Plan (indicated as “FSSP: Not Transferred/After-Tax Deposits: Not Withdrawn” on benefit communications) 4. Not roll over your pre-tax FSSP Retirement Account balance to the Plan, and withdraw your after-tax contributions (with interest) from the Plan (indicated as “FSSP: Not Transferred/After-Tax Deposits: Withdrawn” on benefit communications). Generally, the first option provides the largest monthly benefit from the Plan, and the last option provides the smallest monthly benefit. * You can roll over your pre-tax FSSP Retirement Account deposits to the Plan only if the amount of those deposits plus earnings (interest) is equal to or greater than $5,000 and you are retiring. Benefit Formula The normal retirement benefit formula under the first option above provides a benefit equal to: • The greater of: ⎯ 70%* of your after-tax contributions to the Plan through January 31, 1987, or ⎯ $11 times your months of benefit service as of January 31, 1987 plus • 70%* of the sum of your pre-tax deposits to the FSSP Retirement Account plus your after-tax contributions made to the Plan on or after February 1, 1987. 13048086v.6 13
HII Ingalls Shipbuilding Inc. Hourly Employees’ Retirement Plan Summary Plan Description March 2011 * If you terminate employment on or before March 4, 2007, 70% is replaced with 65%. However, if you are rehired on or after March 4, 2007, the 70% will apply to any after-tax contributions repaid to the Plan subsequent to your rehire, and to any after-tax contributions to the Plan and pre-tax deposits to the FSSP Retirement Account that you did not withdraw prior to March 4, 2007. This formula assumes you roll over your pre-tax FSSP Retirement Account deposits to the Plan and do not withdraw any of your after-tax contributions (with interest) from the Plan (producing your “FSSP: Transferred In/After-Tax Deposits: Not Withdrawn” benefit). If you do not roll over your pre-tax FSSP Retirement Account deposits and/or you withdraw your aftertax contributions, your monthly benefit will be reduced by: • The annuity equivalent of any withdrawn/distributed after-tax contributions with 5% interest • The annuity equivalent of your pre-tax FSSP Retirement Account balance that has not been rolled over to the Plan. Normal Retirement Benefit Examples See the examples that follow. Although these illustrations use full years of age and service, your retirement benefit will be based on your actual years and months of age and service at the time of your retirement. These examples are based on the “straight life annuity” form of payment. Assumptions Let’s assume your termination date is January 31, 2008, your retirement date is February 1, 2008, and you retire at age 65 with 30 years of service. • Benefit service as of January 31, 1987: 9 years (or 9 x 12 = 108 months of benefit service) • After-tax contributions: ⎯ Total: $12,000 ⎯ As of January 31, 1987: $7,000 ⎯ On or after February 1, 1987: $5,000 • After-tax contributions with 5% interest at January 31, 2008: $28,000 • Pre-tax FSSP Retirement Account deposits: $67,000 • Pre-tax FSSP Retirement Account balance at January 31, 2008: $125,000 These examples demonstrate the benefit amount under each of the four formulas described under “Benefit Amount for Normal Retirement.” Example 1 ⎯ FSSP: Transferred In/After-Tax Deposits: Not Withdrawn This option assumes you roll over your pre-tax FSSP Retirement Account balance to the Plan and do not withdraw your after-tax contributions (with interest) from the Plan. Your “FSSP: Transferred In/After-Tax Deposits: Not Withdrawn” Plan benefit would be determined as follows. 13048086v.6 14
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HII Ingalls Shipbuilding Inc. Hourly Employees ... - Benefits Connect

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