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

HII Ingalls Shipbuilding Inc. Hourly Employees’ Retirement Plan
Summary Plan Description
March 2011
Example 4 ⎯ FSSP: Not Transferred/After-Tax Deposits: Withdrawn
This option assumes you do not roll over your pre-tax FSSP Retirement Account balance to
the Plan and you withdraw your after-tax contributions (with interest) from the Plan. Your
“FSSP: Not Transferred/After-Tax Deposits: Withdrawn” Plan benefit would be determined as
follows.
First, we calculate your maximum benefit as the greater of:
• 70% x ($7,000) = $4,900.00 annually
plus
OR
$11 x 108 months = $1,188.00 annually
• 70% x ($67,000 + $5,000) = $50,400.00 annually
equals
• Total maximum benefit = $55,300.00
Then, we determine the annuity equivalents of your pre-tax FSSP Retirement Account
balance ($125,000 from the “Assumptions”) and your withdrawn after-tax contributions with
5% interest ($28,000 from the “Assumptions”), and subtract them from your total maximum
benefit:
• Annuity equivalent of pre-tax
FSSP Retirement Account balance
$125,000 x 0.1007 = $12,587.50
• Annuity equivalent of after-tax
contributions with 5% interest
$28,000 x factor of 0.0848 = $2,374.40
• Total maximum benefit of $55,300
minus
Annuity equivalent of pre-tax
Retirement Account balance
of $12,587.50
minus
Annuity equivalent of withdrawn
after-tax contributions of $2,374.40 = $40,338.10
To determine your monthly benefit, divide your annual benefit by 12.
Because in this example you are withdrawing your after-tax contributions to the Plan, you will
receive two payments ⎯ the benefit shown above and a single lump payment of your after-
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