NHO ES Rep 2009-2010 - Benefits Online

benefits.northropgrumman.com

NHO ES Rep 2009-2010 - Benefits Online

Welcome to Northrop Grumman

New Hire Benefits Orientation for

Electronic Systems Union Represented

Employees


Today’s Agenda

• Northrop Grumman Health Plan

• Northrop Grumman Savings Plan

• Northrop Grumman Pension Program

• Enrollment

• Questions

2


Northrop Grumman Health Plan Overview

Basic benefits

• Basic Life

• Basic Accidental Death

and Dismemberment

(AD&D)

• Employee Assistance

Program (EAP)

Optional benefits

• Medical

• Dental

• Vision

• Optional LTD

• Optional life insurance

(employee, spouse,

children)

• Optional AD&D insurance

(employee, family)

• Flexible Spending Accounts

(FSAs)

You must

enroll to

select these

benefits

3


Who Is Eligible?

• Most employees who regularly work 20 or more

hours per week

• Eligible dependents

– Your spouse

– Your unmarried child(ren) under age 19 (or under

age 25 if full-time students)

– Your unmarried child(ren) of any age who are

disabled

– Your same-sex or opposite-sex domestic partner and

his or her eligible dependent child(ren)

4


If Your Spouse or Domestic Partner Works

• For Northrop Grumman:

– One of you can enroll as an employee, the other as a dependent

OR

– Both of you can enroll separately as an employee

• Employees may cover one another for spouse life insurance

• Only one of you can enroll your eligible dependent children

in each type of coverage (medical, dental, vision, life, AD&D)

• For another employer:

– If your spouse or domestic partner’s employer offers medical coverage

and pays at least 50% of the cost of the plan, your spouse or domestic

partner must enroll in his/her employer’s medical plan during their

next annual enrollment to be eligible to enroll in medical coverage

through the Northrop Grumman Health Plan

– If your spouse’s or domestic partner’s employer subsidizes less than

50%, he/she is eligible to enroll in medical coverage through the

Northrop Grumman Health Plan without enrolling in his/her employer’s

plan

5


How the Plan Works

• You choose the coverage that meets your needs

• Coverage levels for medical, dental, vision

– Employee only

– Employee + spouse

– Employee + child(ren)

– Employee + family

• You must make your choices by the deadline shown on your

enrollment letter (within 31 days of your hire date)

• Your choices remain in effect for the entire benefit plan year, as

long as you are eligible, July 1, 2009 — June 30, 2010

– You cannot make changes until the next enrollment period (May

2010) unless you have a qualified life event (e.g., marriage or

birth of a child)

6


Medical Plan Options

• Anthem Blue Cross Provider Organization (PPO) options

– Preferred PPO

– Premium PPO

• Aetna Exclusive Provider Organization (EPO)

– Available in many states nationwide

• Anthem Consumer-Driven Health Plan (CDHP)

• Health Maintenance Organization (HMO) options and

Regional EPO options

– Available in some areas only

• Aetna Global Benefits (overseas employees)

7


Anthem Blue Cross PPO Options

• The PPO options are available in all U.S. locations

• You can go to any doctor or hospital

– You pay less when you utilize a provider in the Anthem PPO

network

– You do not need to select a Primary Care Physician (PCP)

• Prescription drug coverage through Express Scripts

– Network includes most major pharmacy chains

– Optional Mail Service Program for long-term maintenance

medications, up to a 90-day supply delivered to your home

– Customer service line available 24/7

• Mental health/substance abuse treatment coverage

through ValueOptions

8


Comparing the PPO Medical Plan

Options

Benefit plan

year

deductible

Office visit

copay

In-network

$500 per

individual/

$1,000 per

family

$20 (specialist

visit: $40)

Preferred PPO

$800 per

individual/

$1,600 per

family

40%

coinsurance

In-network

$300 per

individual/

$600 per family

$15 (specialist

visit: $30)

Premium PPO

Coinsurance 10% 40% 10% 40%

Benefit plan

year out-ofpocket

maximum

$3,000 per

individual/

$6,000 per

family

$5,000 per

individual/

$10,000 per

family

$2,000 per

individual/

$4,000 per

family

Out-ofnetwork

Out-ofnetwork

$800 per

individual/

$1,600 per

family

40%

coinsurance

$5,000 per

individual/

$10,000 per

family

For more details, go to Benefits OnLine

at

http://benefits.northropgrumman.com

9


EPO and HMO Options

• An EPO works like an HMO

– In most plans, you and your covered family members

select a primary care provider (PCP) to coordinate care

– You access services from EPO providers only (except in an

emergency)

– When you access covered services, you pay a copay, and

the plan pays the rest — there is no deductible

• One national EPO offered through Aetna (available in

most states nationwide)

• Regional EPOs vary by state and/or ZIP code

– California – Health Net, UnitedHealthcare

10


Aetna Global Benefits

• Available only for employees located overseas

• Dental coverage is included with the medical

(no separate election needed)

• Offers coverage both overseas as well as

within the U.S.

• Coverages offered are based on whether

services incurred overseas or within U.S:

– Overseas

– In-network within U.S.

– Out-of-network within U.S.

– Out-of-area within U.S.

11


Prescription Drug Coverage in the PPOs

and EPOs

Your cost varies depending on the type of prescription drug you purchase

Type of Drug

Generic

Network Retail Pharmacy

(30-day supply)

$5 copay or 10% coinsurance,

whichever is greater

Preferred Brand $20 copay or 10%

coinsurance, whichever is

greater

Brand $40 copay or 10%

coinsurance, whichever is

greater

Mail Service Pharmacy

(up to 90-day supply)

$5 copay or 10%

coinsurance, whichever

is greater

$20 copay or 10%

coinsurance, whichever

is greater

$40 copay or 10%

coinsurance, whichever

is greater

In the PPOs, you can go to a non-network pharmacy and pay 50% of the eligible cost. (Non-network

coverage is not available in the EPOs.)

The annual out-of-pocket maximum for prescription drugs is:

• In the PPO – $2,000/individual and $4,000/family

• In the EPOs – $1,500/individual and $3,000/family

12


Anthem CDHP Option

The Anthem CDHP Program

Preventive

Care

• 100% coverage

for nationally

recommended

services

• No deductions

from the HRA

Preventive Care 100% Coverage

Health

Reimbursement

Account

Traditional

Health

Coverage

• Benefit plan year allocation from

Northrop Grumman

• Plan pays 100% when funds are

available

• Use it on HRA Extras

Bridge • Employee’s responsibility if expenses

exceed the benefit plan year HRA

allocation

• Paid only as expenses are incurred

• Can be reduced or eliminated by HRA

rollover

• Additional protection covers the

services allowed by Northrop

Grumman

• You pay coinsurance for covered

services

• 100% coverage after coinsurance

maximum is met

13


Anthem CDHP Plan Year Amounts

Employee

Employee +

Spouse

Employee

+

Child(ren)

Family

Preventive Care 100%

Health Reimbursement

Account (HRA)

Bridge

Traditional

Health Coverage

Coinsurance Maximum

Mental Health/Substance Abuse

and prescription drug benefits

are covered under the plan.

$1,000 $1,500 $1,500 $2,000

$800 $1,200 $1,200 $1,600

90% covered for providers who participate in the

Anthem network

60% of R&C for providers who do not participate in the

Anthem Network

$4,200 $6,300 $6,300 $8,400

14


Best Doctors

• Provides you with the opportunity to have a worldrenowned

doctor review your medical case and

ensure you have the right diagnosis

• Available to employees and their covered

dependents who are enrolled in a medical plan

through the Northrop Grumman Health Plan

• Included in the cost of your health plan – you do

not pay any additional cost

15


Tobacco Cessation Program

Free & Clear - Quit For Life

• Personalized quit program

• Confidential phone based treatment

sessions

• Delivery of recommended nicotine

replacement products (e.g. the patch,

gum)

• Available to employees and their

dependents enrolled in a Northrop

Grumman medical plan option

16


Employee Assistance Program (EAP)

Work/Life Program

• Confidential counseling, support and resources, at no cost, for

all Northrop Grumman employees and their eligible family

members

• Designed to help with personal and work-related issues

• Work/Life benefits include information, resources and referrals

for child and elder care, adoption assistance, relocation

information and more

• Provides 8 free sessions, (per person per issue per plan year),

with a licensed clinician who is close to work or home

1-800-982-8161

24 hrs a day, 7 days a week

17


Dental Plan Options

• Three Delta Dental Preferred Provider Organization

(PPO) Plan Options

– Dental Care Plan Option

– Dental Care Plus Plan Option (includes orthodontia)

– Preventive Care Plan Option

• CIGNA Dental Health Maintenance Organization

(DHMO) Option (in some areas)

– You must select a CIGNA DHMO primary dentist

– No coverage if you access care without a referral

from your CIGNA DHMO primary dentist

– You pay a copay and the plan pays the rest

– Includes orthodontia

18


Comparing the Delta Dental PPO Plan Options

Dental Care Dental Care Plus Preventive Care

Deductible

Plan Year Maximum

(per person)

$50/$100 Preferred

$100/$200 Premier

$150/$250 Out-of-

Network

$1,500 Preferred

$1,250 Premier

$1,000 Out-of-network

$50/$100 Preferred

$100/$200 Premier

$150/$250 Out-of-

Network

$2,000 Preferred

$1,500 Premier

$1,000 Out-of-network

$0

(in- and out-of-network)

$500

(in- and out-of-network)

Coverage

Preventive 100% 100% 100%

Basic

Restorative

80% Preferred

75% Premier

70% Out-of-network

80% Preferred

75% Premier

70% Out-network

Not covered

Major

50% 50% Not covered

Restorative

Orthodontia Not covered 50% up to a lifetime

maximum of $2,000

Not covered

19


Vision Plan Option

• Northrop Grumman Vision Plan

– Administered by Vision Service Plan (VSP)

– You can see any vision provider, but will save money when

you visit a provider in the VSP network

• In-network coverage includes:

– Exams and lenses each benefit plan year ($10 copay)

– Frames every two benefit plan years ($10 copay)

• Plan pays up to $120

– Contact lenses (instead of eyeglasses) every benefit plan

year

• Plan pays up to $105

• Includes disposable lenses

20


Flexible Spending Account (FSA)

Options

Health

Care FSA

Description

– Allows you to set aside pre-tax

money to pay for eligible health care

expenses (e.g. deductibles,

copays, coinsurance, orthodontics

and some over-the-counter drugs)

– Elections are made on an annual basis

Maximum Annual

Contribution

$5,000

Dependent

Day Care FSA

– You can set aside pre-tax dollars from

your paycheck to pay for eligible

dependent day care expenses

– Elections are made on an annual basis

$5,000*

*If you earn $105,000 or more, your annual contribution limit to the Dependent Care FSA is $2,500.

You must use all the dollars in your FSA accounts,

or lose them at the end of the grace period (incur expenses by September 15, 2010

and file them by December 31, 2010), so estimate your expenses carefully!

21


Automatic FSA Claims Reimbursement

• Your carriers will submit claims on your behalf if you

contribute to the Health Care FSA and enroll in:

– Anthem PPO

• including Value Options

– Anthem CDHP

– Aetna EPO

– Delta Dental PPO

– Health Net EPO

– UnitedHealthcare EPO

– Vision Service Plan

• Benesyst (the FSA claims administrator) will automatically

reimburse you through your health care FSA

• You are automatically enrolled in this feature and must call

the Northrop Grumman Benefits Center to opt out.

22


Pharmacy Benefits Card for Health Care FSA

• Health Care FSA participants will receive a Pharmacy

Benefits Card to be used for all prescription (retail and

mail-order) and over-the-counter (OTC) drug purchases

• Any eligible items or co-pays will be automatically

charged to your FSA account (as long as there is a

sufficient balance)

• If you utilize mail order service for delivery of your

prescriptions, be sure to provide your carrier with your

Pharmacy Benefits Card account number

• Visit www.benesyst.net for a list of participating

merchants

23


Long-Term Disability (LTD) Benefits

Your options are:

• No Coverage

• 50% of your monthly base salary

• Additional 10% for total coverage of 60% of your

monthly base salary

• Additional 20% for total coverage of 70% of your

monthly base salary

– No evidence of insurability (EOI) is required if

you enroll when newly eligible

• Maximum monthly benefit of $15,000 (reduced

by other disability & pension income you

receive)

24


Life Insurance

• Basic life

– Greater of: 1 X your annual base salary or $50,000

– Can limit to $50,000 to avoid imputed income

– 100% company-paid

• Optional life

– You may choose to purchase additional coverage for

yourself, your spouse/domestic partner, and your children

• Employee: 1, 2, 3, 4, 5, 6, 7, or 8 x your base salary,

up to $1 million

• Spouse/domestic partner: 1, 2, 3, or 4 x your coverage

amount, $25,000, $50,000 (up to a maximum of the lesser of 50%

of your total coverage — basic and optional — or $500,000)

• Child: $10,000, $20,000, or $30,000

– You pay for coverage with after-tax payroll deductions

25


Evidence of Insurability (EOI) for

Life Insurance

• No EOI required when you are first eligible, unless

you:

– Select optional employee life insurance coverage

greater than 5 x annual base pay or more than

$600,000

– Select optional spouse coverage greater than

$50,000

• If you are required to submit EOI, your additional

coverage will not go into effect until the EOI is

approved

26


Accidental Death and

Dismemberment (AD&D) Insurance

• Basic AD&D

– Greater of $50,000 or 1 x your annual base salary

– 100% company-paid

• Optional AD&D

– Employee only

• You may purchase coverage from 1 up to 10 x your annual base

salary, up to a maximum of $1 million

– Employee + family

• You may purchase coverage from 1 up to 10 x your annual base

salary, up to a maximum of $1 million

• Family coverage amounts vary depending on who’s covered

– You pay for coverage with after-tax payroll deductions

27


Beneficiary Designations

• You must select a beneficiary for your basic life

and AD&D insurance, even if you do not elect

optional coverage

• Electing a beneficiary is easy and important

– You can review and update your beneficiary

designations on My Benefits Access available through

Benefits OnLine

– If you do not have online access, you can designate

your beneficiary by calling the NGBC

28


Northrop Grumman Savings Plan


Northrop Grumman Savings Plan —

Employee Contributions

• You may contribute between 1%

and 75% of eligible compensation

in 1% increments

• Tax-deferred , Roth 401(k) and/or

after-tax contributions

• Age 50 catch-up contributions

• If you are considered a highly

compensated employee, your

contributions may be limited in a

subsequent year

Investment options

• Retirement Path Portfolios

• Core investment funds

• Schwab Personal Choice

Retirement Account®

30


Northrop Grumman Savings Plan —

Features

Loans

• Up to two loans at one time

• Maximum of $50,000

Payment Options

Other features

• Partial distributions

• Total lump sum

• Company match (depending

on business unit)

• 100% immediate vesting in

company-matching and

basic contributions

• Daily valuation

31


2010 Savings Contribution Limits

Your Tax-Deferred

and/or Roth 401(k)

Contribution Limit

If you are Under

Age 50

Maximum of $16,500

*If you are age

50 or older

Additional $5,500 in

catch-up contributions,

for a maximum of up to

$22,000

Limit on Total

Contributions (your

contributions plus

Northrop Grumman’s

contributions)

100% of annual pay or

$49,000 or whichever is

less

100% of annual pay or

$54,500 ($49,000 +

$5,500 in catch-up

contributions),

whichever is less

* You must be at least 50 years old by the end of 2010 to be

eligible to make catch-up contributions in 2010.

32


Savings Plan Investment Lineup

Two “paths” to retirement

1 2

Let an investment

professional do the

work with a

Retirement Path

Portfolio

The Savings

Plan’s core

investment

funds

Build and monitor your

own portfolio with…

Stocks, bonds and

mutual funds

using Schwab

PCRA

33


Path 1 ─ Retirement Path Portfolios

• Five investment options

– Target Retirement Path

– 2020 Retirement Path

– 2030 Retirement Path

– 2040 Retirement Path

– 2050 Retirement Path

For participants who are retired

or approaching retirement

For participants who are

beginning their careers

• You select a portfolio based on your expected

retirement date (typically age 65)

• Each portfolio is well diversified and designed to meet

your investment goals prior to and beyond retirement

• As you get closer to your expected retirement date, the

investment manager adjusts the portfolio mix to

maximize return for the level of risk appropriate

at each life stage

34


Path 2 – Build and Monitor Your Own

Portfolio

• Core Investment Funds

– Stable Value Fund

– U.S. Fixed Income Fund

– Balanced Fund

– U.S. Equity Fund

– International Equity Fund

– Small Cap Fund

– Emerging Markets Equity Fund

– Northrop Grumman Fund

• Schwab Personal

Choice Retirement

Account® (PCRA)

– Self-directed

brokerage account

– Invest among a

selection of more than

3,200 mutual funds

and individual

securities (e.g., stocks

and bonds)

35


Automatic Enrollment

• If you have not enrolled in the Northrop Grumman Savings

Plan within approximately 45 days of your date of hire, you will

be automatically enrolled at a contribution rate of 2%

• Your contributions will be deducted on a tax-deferred basis and

invested in the Retirement Path portfolio that most closely

targets the year in which you will attain age 65

• After you are enrolled, you may change your contribution rate

and investment choices at any time

• If you do not want to enroll at this time, log on to My Benefits

Access or call the Northrop Grumman Benefits Center to

decline enrollment

• By declining, you may miss the benefit of receiving company

matching contributions (if applicable)

36


Quick Enrollment - Process

• Default contribution will be set at the rate to maximize

any company match for which you might be eligible

• You can change your contribution rate any time

• Optional automatic escalation of 1% per year also

provided

• Retirement Path portfolio will be default investment

option

• My Benefits Access Website will offer a choice to use

Quick Enrollment or the regular process

– If Quick Enrollment is selected, you will be presented with

a default contribution rate and investment election

– You can accept or change the defaulted investment

election

37


Northrop Grumman Pension Program


Northrop Grumman Pension Program

• The Pension Program is a cash balance plan

• You don’t need to enroll — if eligible your

participation is automatic

• It provides a benefit entirely paid for by the

company — you contribute nothing

• You will earn credits toward a future benefit

– Pay-based credits

– Interest credits

• You are vested after three years

– You earn one year of vesting service for each year in

which you work and are paid for 1000+ hours

• Eligibility depends on business unit

39


Calculating Your Monthly Pay-Based Credits

• Calculate your “points” (equal to your age plus your years of service

with Northrop Grumman)

• Find the “pay-based credit” associated with your points

• Estimate your monthly eligible pay, which is your base pay plus

overtime and bonus

Employer Pay-Based

Credit

X

Monthly Eligible Pay

=

Monthly Pay-Based

Credit

Employer Pay-Based Credits

Points All Pay >SSWB


Calculating Your Northrop Grumman Pension

Program Benefit — Example

• Annual salary: $50,000 (or $4,167 monthly)

• Age: 45

• Years of service: 15

• Points (age + years of service): 60

Employer

Pay-Based Credits

Points All Pay >SSWB


Pension Program Resources and

Tools – My Benefits Access

• Estimate your pension benefit

• Review your pension data and obtain an

estimate of your future pension benefit

from Northrop Grumman (based on

assumptions you enter, such as pay

increase and years of service)

• Accessible 24 hours a day, seven days a

week

42


Enrolling in Your Benefits


Enrolling is Easy

• Go to Benefits OnLine at http://benefits.northropgrumman.com

and click on the “New Hire Enrollment” link

• Review highlights of the Northrop Grumman Benefits Program and

enroll in the Health and Savings Plans

• Print a confirmation statement once enrollment has been completed

and saved

No Web Access?

• Call the Northrop Grumman Benefits Center (NGBC) at

1-800-894-4194 Monday through Friday, 9:00 a.m. to 6:00 p.m.

Eastern time

• Outside the United States call 718-354-1338

• Hearing impaired participants will need to use a relay service through

service provider.

44


Benefits OnLine

http://benefits.northropgrumman.com

45


New Hire Enrollment Page

46


My Benefits Access Log On

47


My Benefits Access -

Registration as a New User

48


My Benefits Access – Welcome Screen

49


My Benefits Access – Enrollment Steps

50


My Benefits Access – Enrolling in Your Benefits

51


My Benefits Access – Enrolling in Medical Example

52


Final Reminders

• You must enroll in optional Health Plan benefits if you

want coverage for the benefit plan year

– Enroll by the deadline shown on your enrollment

letter (within 31 days of date of hire)

– Even if you do not want optional coverage, go online

or call to elect “no coverage”

– If you do not enroll, you will not have optional

benefits for yourself or your family

• Enroll in the Savings Plan

– If you do not want to participate, you must decline

enrollment

• Elect your beneficiaries for basic and optional life and

AD&D insurance, and for the Savings Plan

53


Questions?

54

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