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

HII Ingalls Shipbuilding Inc. Hourly Employees’ Retirement Plan
Summary Plan Description
March 2011
“FSSP: Not Transferred/After-Tax Deposits: Withdrawn” Plan early retirement benefit would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 equivalents of your pre-tax FSSP Retirement Account
balance ($125,000 from the “Assumptions”) and your withdrawn after-tax contributions
with 5% interest ($12,000 from the “Assumptions”), and subtract them from your total
maximum benefit:
• Annuity equivalent of pre-tax
Retirement Account balance
$125,000 x factor of 0.1392 = $17,400.00
• 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 pre-tax
Retirement Account balance
of $17,400
minus
Annuity equivalent of withdrawn
after-tax contributions of $1,298.40 = $31,701.60
2. Then, calculate your early retirement benefit
At age 60, you receive 88% of your normal retirement benefit:
• 88% x $31,701.60 = $27,897.41 annually
To determine your monthly benefit, divide your annual benefit by 12.
13048086v.6
23