Welcome to Northrop Grumman - Benefits Online

Welcome to Northrop Grumman
New Hire Benefits Orientation
for International Employees

Today’s Agenda
• Northrop Grumman Health Plan
• Northrop Grumman Savings Plan
• Enrollment
• Questions
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Northrop Grumman Health Plan Overview
Basic benefits
• Basic Life
• Basic Accidental Death
and Dismemberment
(AD&D)
• Basic Long-Term
Disability (LTD)*
• 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)
• Group Legal
You must
enroll to
select these
benefits
* 100% paid by some business units
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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)
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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
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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)
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Medical Plan Options
• Aetna Global Benefits (overseas employees)
• No medical coverage
Aetna’s web address: www.aetna.com/agb Click on Members.
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Aetna Global Medical Plan
Overseas
In-network
(In the U.S.)
Out-ofnetwork
(In the U.S.)
Out-of-Area
(In the U.S.)
Benefit plan
year
deductible
$100 per
individual/
$200 per family
$100 per
individual/
$200 per family
$200 per
individual/
$400 per family
$800 per
individual/
$400 per family
Office visit
copay
100% after
deductible
100% after $10
co-pay
70% after
deductible
80% after
deductible
Benefit plan
year out-ofpocket
maximum
$500 per
individual/
$1,000 per
family
$500 per
individual/
$1,000 per
family
$1,000 per
individual/
$2,000 per
family
$1,000 per
individual/
$2,000 per
family
Lifetime
Maximum
Not Applicable
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Aetna Global Medical Plan
Overseas
In-network
(In the U.S.)
Out-ofnetwork
(In the U.S.)
Out-of-Area
(In the U.S.)
Hospital Services
100% after
deductible
90% after
deductible
70% after
deductible
80% after
deductible
X-ray & Lab tests
100% after
deductible
90% after
deductible
70% after
deductible
80% after
deductible
Mental Health &
Substance Abuse
Treatment
100% after
deductible
90% after
deductible
70% after
deductible
80% after
deductible
Prescription Drug
Coverage
100% after
deductible
$5 co-pay for
generic
$15 co-pay for
brand name
80% after
deductible
80% after
deductible
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Aetna Global Benefits (AGB) Contact Information
• AGB Membership Services
– 1-800-231-7729
– 1-813-775-0190 (collect)
– agbservice@aetna.com (email)
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Aetna Online Resources
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Aetna Online Resources
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Aetna Online Resources
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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
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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
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Employee Assistance Program (EAP)
Work/Life Program
• Confidential counseling, support and referral services
• 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
• Free for Northrop Grumman employees AND
their eligible family members
• 8 free consultations per family member per issue per
plan year for the EAP
1-800-982-8161
24 hrs a day, 7days a week
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Dental Plan Options
• Aetna Global Dental Plan (included with
Aetna Global medical)
• Delta Dental PPO (available only if not
enrolled in Aetna Global)
• No dental coverage
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Aetna Global Dental Plan
Dental Care
Deductible
$25 Individual
$50 Family
Annual Maximum
(per person)
Your Coinsurance
$1,500 Per person
Preventive & Diagnostic 100%
Basic Restorative 80%
Major Restorative 50%
Orthodontia 50%
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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
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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 VSP network provider
• 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
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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!
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Automatic FSA Claims
Reimbursement
• Your carrier will submit claims on your
behalf if you enroll in the Health Care FSA
and select:
– A Delta Dental PPO plan option
– Vision Service Plan
• Benesyst (the FSA claims administrator)
will automatically reimburse you through
your health care FSA
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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
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Long-Term Disability (LTD) Benefits
• Basic LTD*
– 50% of your monthly base salary
• Optional LTD
– Your options are:
• 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
any other disability income you receive)
* 100% paid by some business units
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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
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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
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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
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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
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Group Legal
Legal Resources
• Two plan options — Comprehensive and Basic
• Both plans provide coverage for legal services,
such as:
– Legal telephone advice and consultations
– Document review
– Debt collection
– Will preparation
– Estate advice
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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 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®
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2009 Savings Contribution Limits
Your Tax-Deferred
Contribution Limit
Limit on Total
Contributions (your
contributions plus
Northrop Grumman’s
contributions)
If you are Under
Age 50
Maximum of $16,500
100% of annual pay or
$49,000 or whichever is
less
*If you are age
50 or older
Additional $5,500 in
catch-up contributions,
for a maximum of up to
$22,000
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 2009 to be
eligible to make catch-up contributions in 2009.
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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
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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
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Path 1 ─ Retirement Path Portfolios
• Five investment options
– Target Retirement Path
– 2010 Retirement Path
– 2020 Retirement Path
– 2030 Retirement Path
– 2040 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
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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)
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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)
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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
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Northrop Grumman Savings Plan ─
Retirement Account Contribution

Retirement Account Contributions
• Eligibility is based on your business unit and your past
employment with Northrop Grumman (if applicable)
• No enrollment is necessary
• Northrop Grumman’s contributions will be based on
your age at the end of the calendar year and your
eligible compensation:
– Less than age 35: 3%
– Age 35 – 49: 4%
– Age 50 and older: 5%
• Contributions will be made with each pay cycle
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Retirement Account Contributions
• You decide how your Retirement Account contributions
will be invested. You may choose to invest these
contributions in any of the Retirement Path portfolios, the
core investment funds, or Schwab Personal Choice
Retirement Account® (PCRA).
• Unless you change the investment direction, contributions
will be invested in the Retirement Path Portfolio that most
closely targets the year in which you will attain age 65
• Contributions will be vested after three years of service
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Retirement Account Contributions
• Retirement Account contributions are not available for
loans
• You may only withdraw vested money when you reach
age 59-1/2, after separation from employment or
become disabled
• Your beneficiary will be eligible for any vested amount
in your account when you die
• Beneficiary designation is the same as your designation
for the Northrop Grumman Savings Plan.
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.
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Benefits OnLine
http://benefits.northropgrumman.com
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New Hire Enrollment Page
46

My Benefits Access Log On
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My Benefits Access -
Registration as a New User
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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
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Questions?
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