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

HII Ingalls Shipbuilding Inc. Hourly Employees’ Retirement Plan
Summary Plan Description
March 2011
This option assumes you do not 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“FSSP: Not Transferred/After-Tax Deposits: Not Withdrawn” Plan early retirement benefit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
Then, we determine the annuity equivalent of your pre-tax FSSP Retirement Account
balance ($125,000 from the “Assumptions”) and subtract this from your total maximum
benefit:
• Annuity equivalent of pre-tax
Retirement Account balance
$125,000 x factor of 0.1392 = $17,400.00
• Total maximum benefit of $50,400
minus
Annuity equivalent of pre-tax
Retirement Account balance
of $17,400 = $33,000.00
2. Then, calculate your early retirement benefit
At age 60, you receive 88% of your normal retirement benefit:
• 88% x $33,000 = $29,040 annually
To determine your monthly benefit, divide your annual benefit by 12.
In this example, your pre-tax Retirement Account balance of $125,000 will be paid according
to the FSSP plan rules and your instructions. In addition, you will receive the annuity benefit
shown above.
Example 4 ⎯ FSSP: Not Transferred/After-Tax Deposits: Withdrawn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
13048086v.6
22