Huntington Ingalls Industries Savings Plan ... - Benefits Connect

Huntington Ingalls Industries
Savings Plan SPD
March 2011
How Your Account Is Valued: Units and Unit Values
When you invest in the Savings Plan Retirement Path portfolio or core investment funds,
your contributions purchase ―units‖ of each fund. The value of your account depends on
the number of units you own and the current value of each unit.
This applies to the Huntington Ingalls Industries Stock Fund as well. Your investment in
the Huntington Ingalls Industries Stock Fund is made by purchasing units and not
individual shares of Huntington Ingalls Industries stock. For a detailed explanation of the
Huntington Ingalls Industries Stock Fund, see ―Huntington Ingalls Industries Stock Fund.‖
The New P Stock Fund is also denominated in units and not individual shares of New P,
Inc. For a detailed explanation of the New P Stock Fund, see ―New P Stock Fund‖.
When a fund is established, its units are assigned a value — for example, $1. If you
contribute $10 to the fund when the unit value is $1, your account is credited with 10
units.
For example, assume:
• Unit value: $1
• Your contribution: $10.
In this example, your account has 10 units (your $10 contribution divided by the $1 unit
value). If the fund earns 10%, the value of each unit increases by 10 cents ($1 x 10%), to
$1.10. Your 10 units are now worth $11. If you purchase additional units at this time, you
pay $1.10 for each.
Your Savings Plan account balance is updated, or valued, each business day to reflect:
• Interest income
• Dividends
• Investment gains or losses
• Expenses.
Accounts are valued daily on the basis of the change in unit value. Unit values change
based on the increase and/or decrease of the value of the underlying investments.
Under unusual circumstances or to protect the financial integrity of the Plan, the Plan
Administrator may apply different valuation rules, time, or date.
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