Hourly Rated Pension Plan of Northrop ... - Benefits Connect
Hourly Rated Pension Plan of Northrop ... - Benefits Connect
Hourly Rated Pension Plan of Northrop ... - Benefits Connect
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<strong>Hourly</strong> <strong>Rated</strong> <strong>Pension</strong> <strong>Plan</strong> <strong>of</strong> <strong>Northrop</strong> Grumman Corporation,<br />
Electronics Systems Division — Norwood Site<br />
Summary <strong>Plan</strong> Description<br />
March 2011<br />
enables your income to “level out” pre- and post-age 62. If you are married when you<br />
retire, your spouse must consent in writing to this form <strong>of</strong> distribution.<br />
Here’s how your benefit would be calculated:<br />
• Your pre-62 monthly benefit<br />
equals<br />
Your benefit calculated under the straight life annuity form <strong>of</strong> payment (reduced, as<br />
applicable, for early retirement)<br />
plus<br />
Your estimated Social Security benefit<br />
multiplied by<br />
A Level Income annuity factor based on your age<br />
• Your post-62 monthly benefit<br />
equals<br />
Your pre-62 monthly benefit<br />
minus<br />
Your estimated Social Security benefit<br />
Your first post-62 benefit payment will take place on the first <strong>of</strong> the month coincident<br />
with or following your 62 nd birthday. You will not be <strong>of</strong>fered this option if the monthly<br />
post-62 benefit using an estimated Social Security benefit is $25 or less.<br />
Example — Assume you retire at age 60 with a straight life annuity benefit <strong>of</strong> $1,000<br />
per month, and the Level Income annuity factor is 0.85. Further, assume the <strong>Plan</strong><br />
estimate <strong>of</strong> your age 62 Social Security benefit is $500 and your actual age 62 Social<br />
Security payment is $550.<br />
Your retirement benefit calculation will show <strong>Plan</strong> payments for a level income option as<br />
follows:<br />
• Pre-62 monthly benefit from the <strong>Plan</strong><br />
Straight life annuity <strong>of</strong> $1,000<br />
plus<br />
$500 x 0.85 = $1,425<br />
• Post-62 monthly benefit from the <strong>Plan</strong><br />
$1,425 − $500 = $925<br />
If you elect this option and commence your actual Social Security benefit at age 62,<br />
your total monthly income will be as follows:<br />
• Pre-62 monthly benefit from the <strong>Plan</strong> = $1,425<br />
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