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

HII Ingalls Shipbuilding Inc. Hourly Employees’ Retirement Plan
Summary Plan Description
March 2011
Assumptions
Let’s assume your termination date is January 31, 2008, your retirement date is February 1,
2008, and you retire at age 60 with 19 years of benefit and points service:
• Benefit service as of January 31, 1987: 0 years (or 0 months of benefit service)
• After-tax contributions:
⎯ Total: $5,000
⎯ As of January 31, 1987: $0
⎯ On or after February 1, 1987: $5,000
• After-tax contributions with 5% interest at January 31, 2008: $12,000
• Pre-tax FSSP Retirement Account deposits: $67,000
• Pre-tax FSSP Retirement Account balance at January 31, 2008: $125,000.
In this example, you don’t have 20 years of points service, so you are not eligible for the 80-
point rule. Instead, we apply the reduction factors described under “Unreduced Benefit at
Age 62.” These examples demonstrate the benefit amount under each of the four formulas
described under “Benefit Amount for Normal Retirement,” reduced for early 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Example 1 ⎯ FSSP: Transferred In/After-Tax Deposits: Not Withdrawn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“FSSP: Transferred In/After-Tax Deposits: Not Withdrawn” Plan early retirement benefit
would be determined as follows.
1. First, determine your normal retirement benefit
You would receive the greater of:
• 70% x ($0) = $0 annually
plus
OR
$11 x 0 months = $0 annually
• 70% x ($67,000 + $5,000) = $50,400.00 annually
equals
• Total benefit = $50,400.00
Under this option, your total annual normal retirement benefit is equal to $0 + $50,400 =
$50,400.
2. Then, calculate your early retirement benefit
At age 60, you receive 88% of your normal retirement benefit:
• 88% x $50,400 = $44,352 annually
To determine your monthly benefit, divide your annual benefit by 12.
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