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

HII Ingalls Shipbuilding Inc. Hourly Employees’ Retirement Plan
Summary Plan Description
March 2011
Example 2 ⎯ FSSP: Transferred In/After-Tax Deposits: Withdrawn
This option assumes you roll over your pre-tax FSSP Retirement Account balance to the
Plan and withdraw your after-tax contributions (with interest) from the Plan. Your “FSSP:
Transferred In/After-Tax Deposits: Withdrawn” Plan early retirement benefit would be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
Then, we determine the annuity equivalent of your withdrawn after-tax contributions with
5% interest ($12,000 from the “Assumptions”), and subtract this amount from your total
maximum benefit:
• Annuity equivalent of after-tax
contributions with 5% interest
$12,000 x factor of 0.1082 = $1,298.40
• Total maximum benefit of $50,400
minus
Annuity equivalent of withdrawn
after-tax contributions of $1,298.40 = $49,101.60
2. Then, calculate your early retirement benefit
At age 60, you receive 88% of your normal retirement benefit:
• 88% x $49,101.60 = $43,209.41 annually
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 aftertax
contributions with interest.
Example 3 ⎯ FSSP: Not Transferred/After-Tax Deposits: Not Withdrawn
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