HII Newport News Operations Summary Plan ... - Benefits Connect

EMPLOYEE HANDBOOK OF 

SUMMARY PLAN DESCRIPTIONS 

Huntington Ingalls Industries, Inc. 

Newport News Operations 

For Employees Covered by 

United Steelworkers, Local 8888 

Collective Bargaining Agreement 

Effective October 27, 2008 through March 10, 2013 

Life Insurance Plan 

Accidental Death & Dismemberment Insurance Plan 

Business Travel Accident Insurance Plan 

Weekly Disability Insurance Plan 

Employee Assistance Plan 

Flexible Spending Accounts 

Savings (401(k)) Plan 

Pension Plan 

Target Benefit Plan 

Cash Balance Pension Plan 

Vision Plan 

Group Legal Plan 

Medicare Premium Reimbursement Program 

Retiree Prescription Drug Program 

Administrative Information 

Reflecting the contract negotiated between the Company and 

the United Steelworkers, Local 8888, 

for the period October 27, 2008 through March 10, 2013 

Published April 2011

SUMMARY PLAN DESCRIPTION 







Effective October 27, 2008, through March 10, 2013

Table of Contents 

Eligibility ............................................................................................................................ 1 

Payment of Benefits ............................................................................................................ 1 

Death Claim Procedure ....................................................................................................... 7 

Disability Benefit ................................................................................................................ 7 

Accelerated Benefit Option (ABO) .................................................................................... 9 

Loss of Benefits .................................................................................................................. 9 

Conversion Option ............................................................................................................ 10 

Appeal Procedure .............................................................................................................. 14 

Your Rights ....................................................................................................................... 16

This Summary Plan Description (SPD) describes the Huntington Ingalls Industries, Inc. 

Newport News Operations Life Insurance Plan for Employees Covered by the United 

Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service 

Workers International Union (United Steelworkers), Local 8888, Collective Bargaining 

Agreement Effective October 27, 2008, through March 10, 2013 (the “Plan”) and is 

intended to describe the benefits the Plan provides for eligible employees. References in 

this booklet to the “Company” mean Huntington Ingalls Industries, Inc. Newport News 

Operations. 

Eligibility 

1. Who may participate in the Life Insurance Plan 

All active, full-time employees covered by the collective bargaining agreement 

between Huntington Ingalls Industries, Inc. Newport News Operations and United 

Steelworkers, Local 8888, (bargaining unit), become eligible for coverage on the first 

day following the completion of three months of continuous active employment, 

provided the employee is actively at work on that day. No employee contributions 

(premiums) are required for Basic Life Insurance. 

2. Are dependents eligible for coverage under the Plan 

Yes. You may elect optional life insurance coverage for your eligible spouse and/or 

dependent child(ren). 

Payment of Benefits 

3. What benefits are provided by the Plan 

Basic Life Insurance 

The Plan provides Basic term life insurance for each active full-time employee in the 

bargaining unit in the amount of $35,000. 

Optional Life Insurance 

Effective July 1, 2009, you may purchase optional life insurance for yourself and 

your eligible dependents. If you select optional life insurance, you pay the full cost 

with after-tax dollars, based on group rates negotiated by Huntington Ingalls 

Industries, Inc. 


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Your cost for optional life insurance for yourself and your spouse is determined by 

the employee’s age as of December 31 of the benefit plan year and the coverage level 

selected. As your base pay changes, so will your coverage amount and rate for 

coverage for yourself and your spouse, if applicable. Your cost for child life 

insurance is determined as a flat rate per option. 

You can select optional life insurance at the following times: 

• Within 31 days of when you (and your dependents) first become eligible for 

coverage (which is usually 90 days from your date of hire) 

• Anytime during the benefit plan year, subject to Evidence of Insurability (EOI) 

requirements. 

Depending on the amount of coverage you choose, you may need to provide 

satisfactory EOI. See “When Evidence of Insurability Is Required” for details. 

For your optional life insurance to take effect, you must be an active employee and 

not on a leave of absence at the start of the benefit plan year. If you are on a leave of 

absence, and you want to increase your coverage, you must call the Huntington 

Ingalls Benefits Center (HIBC) when you return to work. 

For your dependent’s coverage to take effect, he or she must not be confined for 

medical care or treatment — either in a medical treatment facility or at home — on 

the effective date of the coverage. If your dependent is confined, coverage begins 

when he or she is released from confinement. 

You can purchase dependent life insurance regardless of whether you purchase 

optional life insurance for yourself, but your spouse’s life coverage cannot exceed 

50% of your combined basic and optional insurance coverage. 

If you are still covered by the optional life insurance plan at age 65, your benefit will 

be reduced by the plan’s age reduction factors. See “What Happens to Your Coverage 

at Age 65” for details. 

Optional Life Insurance for Yourself 

If you select optional life insurance for yourself, your beneficiary will receive 

benefits under both your basic and optional life insurance in the event of your death. 

The optional life insurance options for employees are: 

• 1 x your annual base pay up to a maximum of $1 million 








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• No optional life insurance. 

If the amount of your annual base pay is not an even $1,000 multiple, the amount of 

your coverage is rounded up to the next-higher thousand-dollar amount. For example, 

if your annual base pay amount is $42,100 and you select the three times your annual 

base pay, your benefit will be: $42,100 x 3 = $126,300, rounded up to $127,000. 

Optional Life Insurance for Your Spouse 

The optional spouse life insurance options are: 

• $25,000 

• $50,000 

• 1 x your annual base pay 



• 4 x your annual base pay. 

The amount of your spouse’s life insurance cannot be more than the lesser of: 

• 50% of the total amount of your own basic and/or optional life insurance 

combined amount 

• $500,000. 

For example, if your annual base pay amount is $40,000, and you select optional life 

insurance equal to one times this amount, the total of your basic and optional life 

insurance is $75,000 (basic life insurance of $35,000 + optional life insurance of 

$40,000). You could choose optional life insurance for your spouse of $25,000. 

However, you could not choose any of the other options. 

You do not have to purchase optional life insurance for yourself in order to buy 

spouse life insurance. If both you and your spouse work for Huntington Ingalls 

Industries, Inc., you may select optional life insurance for one another. 

Federal tax law requires that you pay imputed income taxes on the value of your 

employer-provided life insurance in excess of $50,000 and on all spouse life 

insurance. See “Imputed Income” for details. 

Optional Life Insurance for Your Children 

The optional child life insurance options are: 

• $10,000 per child 

• $20,000 per child 

• $30,000 per child. 


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This coverage is available for eligible children who are at least 14 days old. If both 

you and your spouse work for Huntington Ingalls Industries, Inc., only one of you 

may elect optional life insurance coverage for your eligible dependent children. 

Upon the death of a covered dependent child between the ages of 19 and 25, the 

insurance carrier may require proof of student status before paying any life insurance 

benefit. 

When Evidence of Insurability Is Required 

Evidence of insurability (EOI) refers to proof that you and/or your spouse are in good 

health at the time you enroll for optional life insurance. You must provide EOI under 

the following circumstances: 

• When you (and your dependents) first become eligible (usually 90 days from your 

date of hire), and you choose: 

⎯ Optional coverage for yourself that is greater than five times your salary or 

$600,000, whichever is less 

⎯ Optional coverage for your spouse that is greater than $50,000. 

• You select or increase optional coverage for yourself (and your dependents) at 

any time other than within 31 days of the date you first become eligible (e.g., in 

the event of a qualified life event). However, if you gain a new dependent through 

marriage, birth, or adoption, or purchase a home, you can: 

⎯ Select employee coverage of one times your pay or increase your current 

coverage by one level (up to $600,000) without EOI 

⎯ Select spouse coverage up to $50,000 without EOI. 

If your spouse loses his or her life insurance from another source, you may select 

spouse coverage up to $50,000 without EOI. Also, you may enroll in or increase child 

life insurance without EOI, if you experience a qualified life event. 

• You receive a salary increase that causes your optional life insurance to exceed 

$600,000. EOI for automatic benefit increases due to a salary change will be 

required only with the initial salary increase that results in your coverage being 

greater than $600,000. 

• You receive a salary increase that causes your spouse’s life insurance coverage 

automatically to increase to greater than $50,000. EOI for automatic benefit 

increases due to a salary change will be required only with the initial salary 

increase that results in your spouse’s life insurance coverage being greater than 

$50,000. 

When EOI is required, you must complete and submit your EOI form to MetLife (the 

life insurance company). Employee EOI can be completed and submitted 

electronically through the online enrollment system or by electronically submitting a 

Statement of Health, which is accessible from the Provider List at HII Benefits 


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Connect (when you get to the MetLife site, select the Statement of Health link), or by 

paper. Spouse EOI must be submitted by paper. 

You can download a paper EOI form through the Forms link at HII Benefits Connect 

or request an EOI form from the Huntington Ingalls Benefits Center (HIBC) at 1- 

877-216-3222. You must return the completed EOI form to MetLife at the address 

provided on the form as soon as possible. MetLife will review your form and notify 

you and the HIBC when your coverage is accepted or rejected. If your coverage is 

accepted, MetLife informs you of the date your coverage begins. 

The EOI process requires information about your health, medical history, and preexisting 

conditions. In addition, your doctor may be required to submit information 

regarding your health or give you a physical exam. You may be required to pay the 

cost of any physical exams performed to obtain coverage. 

Until your EOI is processed, your coverage will be limited to an amount allowed 

without EOI. For example, if you enroll as a new employee and choose coverage 

equal to four times your annual base pay of $155,000, your coverage will be limited 

to $600,000 until your EOI is processed and your coverage is approved. 

Imputed Income 

Federal tax law requires you to pay income taxes on the value of your employerprovided 

group life insurance in excess of $50,000 and on spouse life insurance when 

applicable. This is called imputed income. You may choose to avoid imputed income 

by not electing any spouse life insurance. 

What Happens to Your Optional Coverage at Age 65 

If you have optional life insurance coverage at age 65, the original amount of your 

optional coverage is reduced the first of the month following your 65th birthday, 

based on the following chart: 

Age 

Percentage of Your Original 

Benefit Amount Payable 

65 92% of the original amount 





70 and older 50% of the original amount 

This reduction will also affect your spouse’s life insurance benefit. Note that your 

spouse’s reduction is based on when you reach age 65 (the first of the month 

following your 65th birthday). Your spouse’s benefit is not affected by his or her age. 


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For example, let’s assume: 

• Your annual base pay is $40,000 

• You are age 64 and your spouse is age 63 

• You choose optional employee life insurance of two times your base pay 

($40,000) for a total life insurance benefit of $80,000 

• You choose optional spouse life insurance of one times your annual base pay, or 

$40,000. 

When you reach age 65 (the first of the month following your 65th birthday): 

• Your coverage amount will reduce to $73,600 (92% X $80,000) 

• Your spouse’s coverage amount will reduce to $36,800 (92% X $40,000). 

When you reach 66 (the first of the month following your 66th birthday): 

• Your coverage amount will reduce to $67,200 (84% X $80,000) 

• Your spouse’s coverage amount will reduce to $33,600 (84% X $40,000). 

Your basic life insurance coverage will not be reduced at age 65. 

4. In the event of the death of an insured employee, to whom will the life insurance 

benefit be paid 

The benefit will be paid to the designated beneficiary or beneficiaries. If the 

employee has not designated a beneficiary, or if a designated beneficiary has 

predeceased the employee, the life insurance benefit will be paid in the following 

order to the employee’s: 

• Spouse 

• Estate. 

5. May the designated beneficiary be changed 

Yes, the employee may change the designated beneficiary at any time by going online 

to Your Benefits Resources via HII Benefits Connect at http://hiibenefits.com. If you 

do not have Internet access, please call the Huntington Ingalls Benefits Center 

(HIBC) at 1-877-216-3222. 

6. In what form are life insurance benefits paid 

The life insurance benefit will be paid as a lump sum to your designated 

beneficiary(ies). Your beneficiary(ies) have the option to receive the lump sum or 

have it deposited into an account reserved for this benefit and access the money when 

necessary. 


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Death Claim Procedure 

7. What is the procedure for filing a death claim 

The deceased insured employee’s beneficiary, or other appropriate representative, 

should contact the HIBC at 1-877-216-3222. However, if this is not done and the 

HIBC becomes aware of the employee’s death by some other means, the designated 

beneficiary will be contacted by the HIBC. 

In either case, the HIBC will prepare and process the required Death Claim Form. It 

will be necessary for the beneficiary, or other appropriate representative, to provide a 

certified copy of the Certificate of Death. 

Disability Benefit 

8. What happens to life insurance coverage if an employee or covered dependent 

becomes permanently and totally disabled 


You may remain eligible for Life Insurance coverage (also known as an “extension”) 

if you become permanently and totally disabled as defined by the Plan (see Q&A 9), 

if the total disability starts: 

• While you are insured, and 

• Before you retire. 

You will no longer be eligible for the extension because of disability the earliest of: 

• The date you are no longer permanently and totally disabled as defined by the 

Plan (see Q&A 9) 

• The date you reach age 65, if your total disability starts prior to age 60 

• The date you reach the following ages shown below, if your total disability starts 

on or after age 60: 

Age 

Extension 

60-64 5 years 

65-69 To age 70 

Age 70 and over 

3 months 

9. For the purpose of determining eligibility to receive a basic life insurance 

disability benefit, what is the definition of “total and permanent disability” 


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• The disability is considered to be total when the employee is unable to engage in 

any occupation or perform any work for compensation or profit because of the 

disability. 

• The disability is considered to be permanent when it is present and has existed 

continuously for at least six consecutive months. 

• The employee will be deemed to be disabled upon qualification for Social 

Security Disability. 

Optional Life Insurance (Employee, Spouse, and Child) 

Regardless of your age when you become disabled, your optional life insurance 

continues while you are disabled, up to a maximum of 24 months or retirement, 

whichever comes first, provided you make the required contributions and remain 

totally disabled as defined by the Plan. See Q&A 9. When coverage ends: 

• You may convert your basic life insurance to an individual policy 

• You and your dependents may convert any optional life insurance coverage to an 

individual policy or choose portability within 31 days of the coverage termination 

date. 

If the provisions of the life insurance plan would otherwise call for benefits to 

terminate or reduce prior to the end of the 24-month period (commencing on your last 

day of work), then benefits will terminate or reduce as of that date. 

10. What procedure must be followed by the employee in order to receive the 

disability benefit 

The employee must contact the Huntington Ingalls Benefits Center (HIBC) and 

provide his or her Social Security disability award letter. 

11. Are there any additional requirements for continuation of the extended 

insurance benefit throughout the authorized period of coverage 

The Company may require at any time proof of the continued existence of the 

disability. 

12. Under what circumstances will the extended insurance coverage stop before the 

end of the authorized period 

Coverage will end on the 31st day following the date the employee: 

• Ceases to be disabled; or 

• Fails to provide proof of continued disability, or 

• Refuses to undergo a periodic medical examination 

13. What should I do if my application for extended coverage is denied 


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Please refer to Q&A 19 for the appeals procedure if any of the benefit provisions of 

the Plan are denied. 

Accelerated Benefit Option (ABO) 

14. Is a benefit payable if I become terminally ill 

Yes. The basic and optional life insurance coverage includes a special feature that 

helps you cope with the financial difficulties often associated with terminal illness. 

You or your legal representative can apply for an accelerated benefit if your life 

expectancy is less than 12 months because of illness or injury. The amount of the 

accelerated benefit is 50% of the total life insurance amount. The benefit is payable as 

long as it not has been previously assigned and proof of your terminal illness is 

received. 

The amount of life insurance paid upon your death will be decreased by the amount 

of the accelerated benefit that has been paid. 

15. Is the accelerated benefit taxed 

The Life Insurance accelerated benefit is intended to qualify for favorable tax 

treatment under the Internal Revenue Code of 1986. If so, the benefit will be excluded 

from your income and won’t be subject to federal taxation. However, tax laws related 

to accelerated benefits are complex and you should consult with a qualified tax 

advisor about your individual situation. 

16. Can the accelerated benefit affect my or my family’s eligibility for public 

programs 

Receipt of an accelerated benefit may affect your, your spouse’s or your family’s 

eligibility for public assistance programs such as Medical Assistance (Medicaid) and 

Supplementary Social Security Income (SSI). You should consult with social service 

agencies and with a qualified tax advisor about your individual situation. 

Loss of Benefits 

17. Under what conditions might benefits outlined in this SPD become unavailable 

Entitlement to the benefits which are provided by this Plan would be lost or forfeited: 

• 30 days after last day of work or 31 days after last day on roll for an employee not 

working due to illness or injury; 

• Upon transfer to a job classification out of the bargaining unit; 

• If an employee or a beneficiary, in connection with the filing of a claim, fails in 

any respect to fulfill Plan requirements as they are stated herein; 


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• If the Plan is terminated by the Company. 

Conversion Option 

18. Can the life insurance coverage be converted to an individual policy 


You have the option to buy an individual life insurance policy (or an individual 

certificate under a designated group policy) up to $35,000 (less any amount paid as an 

accelerated benefit) from the Insurance Company without having to provide evidence 

of insurability during the application period described below if your Life Insurance 

ends because: 

• You are no longer eligible to participate 

• Your employment with the Company ends 

• The Group Policy ends, provided you have been insured for life insurance for at 

least 5 years 

• The Group Policy is amended and you are no longer eligible to participate, 

provided you have been insured for Life insurance for at least 5 years. 

If you choose to convert your Life Insurance for any of the reasons stated above, the 

Insurance Company must receive a completed conversion form from you within the 

Application Period and Option conditions described below: 

• Written application for the coverage and payment of the first premium must be 

made within 31 days after termination of insurance 

• Evidence of insurability is not required. 

• The policy may be in any of the forms of insurance customarily issued by The 

Insurance Company except term insurance 

• The policy may have a face value up to the amount of the group coverage which 

stopped 

• The premium rates for the new policy will be based on the Insurance Company 

rates in use at the time, the form and amount of insurance, your class of risk, and 

your attained age when your Life Insurance ends 

• The new policy will take effect on the 32nd day after the date your life insurance 

ends, regardless of the duration of your application period. 

Conversion forms are available by calling the HIBC at 1-877-216-3 

222. 


If your (or your spouse’s or dependents’) coverage ends because your employment 

with Huntington Ingalls Industries, Inc. ends or because you (or your spouse or 

dependents) are no longer eligible for coverage, you (and your spouse and 

dependents) may choose to either: 


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• Convert the terminating coverage to an individual policy of your own; or 

• Use the plan’s portability feature to continue the terminating coverage as part of 

the Huntington Ingalls Health Plan. 

Conversion and portability are characterized as follows: 

• Conversion allows you to convert all or a portion of the terminating coverage to 

an individual policy (subject to conversion amount limitations). Amounts you 

convert are no longer part of your Huntington Ingalls Industries, Inc. coverage, 

and you are solely responsible for keeping the individual policy(ies) active. You 

pay the insurance company directly. Your cost is based on the insurance 

company’s standard individual rates, which may differ from the rates you 

currently pay. 

• Portability allows you to continue all or a portion of your optional life insurance 

(for yourself, your spouse and/or your dependents) under the Huntington Ingalls 

Health Plan when that coverage would otherwise terminate. You pay the 

insurance company directly. Your cost is based on the insurance company’s 

standard group rates, which may differ from the rates you currently pay. 

The following chart shows when the conversion features apply, and the conditions 

and limitations surrounding your choice to convert your terminating coverage. 

Conversion 

What coverage can be converted • Your optional life coverage for yourself, 

your spouse and your dependent children 

When can you convert • When your employment ends (voluntarily or 

involuntarily) 

• When your coverage ends 

• When the Huntington Ingalls Industries, Inc. 

group insurance policy terminates (life 

insurance only). Most states limit the amount 

that can be converted in this case 

• When the amount of your coverage reduces 

• When you retire 

• When your job changes and, as a result, you 

are no longer eligible to participate in the 

plan 

Can a spouse and dependent child(ren) 

convert their coverage 


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• Yes, your spouse and child(ren) coverage can 

be converted 

When can covered dependents convert • When your employment ends (voluntarily or 


• When you, the employee, retires 

• When you, the employee, exercise the

Conversion 

portability feature for your coverage 

• When you, the employee, die 

• When you and your spouse divorce 


group insurance policy terminates (life 

insurance only); most states limit the amount 

that can be converted in this case 

What amount can be converted • You and/or your eligible dependent(s) can 

choose an amount to convert equal to but not 

greater than the amount of the group life 

insurance benefits being terminated or 

reduced 

• When benefits end at retirement, you can 

convert up to the full amount of group life 

insurance benefits that ended on the date of 

retirement 

Must I choose conversion within a certain 

time frame 

• If you would like to convert to an individual 

policy, you (or your spouse or dependent) 

must choose conversion, in writing, within 

31 days of the date coverage ends or reduces 

• When you convert, the insurance company 

will issue a new policy, which becomes 

effective the first day after the 31-day 

conversion period; exceptions are not 

permitted 

Is evidence of insurability (EOI) required • No, EOI is not required 

What happens if I die within the first 31 days 

after coverage ends 

• If you die during the 31-day conversion 

period immediately after your coverage 

ended, your benefits are payable under the 

group life insurance policy 

The following chart shows when the portability features apply, and the conditions and 

limitations surrounding your choice to port your terminating optional life insurance 

coverage. 

Portability 

What coverage can be ported • Your optional life coverage for yourself, 

your spouse and your dependent child(ren) 

When can you port your coverage • When your employment ends (voluntarily or 


• When you retire and you do not have access 

to the same coverage through a retiree option 



plan 


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Portability 

When can you NOT port your coverage • When you retire and you have access to the 

same coverage through a retiree option 


group insurance policy terminates 

How long will the portable coverage be in 

effect, and what reductions apply 

Can a spouse and dependent child(ren) port 

their coverage 

When can a spouse and dependent child(ren) 

port their coverage 

How long will the ported dependent coverage 

remain in effect 


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• Coverage terminates on January 1 of the year 

that you reach age 80 

• Coverage reduces 50% on January 1 of the 

year that you reach age 70 

• Yes, your spouse and child(ren) coverage can 

be ported 

• When your employment ends (voluntarily or 


• When you, the employee, retires 



plan 

• When you, the employee, die 

• When you and your spouse divorce. 

• Ported employee coverage reduces at age 70 

and terminates at age 80 

• Ported spouse coverage continues until your 

spouse reaches age 70 

• Ported child(ren) coverage continues until 

the child(ren) reaches the limiting age 

What amount can be ported • The maximum amount of coverage that can 

be ported is the current amount of coverage, 

up to $1,000,000 

What is the minimum and maximum portable 

benefit 

Can ported coverage be increased or 

decreased 

• The minimum amount of coverage that can 

be ported is: 

• $20,000 of group term life coverage for the 

employee 

• $10,000 for the spouse 

• $1,000 for dependent child(ren) 

• Coverage cannot be increased 

• Coverage can be decreased; however, once 

coverage is decreased, it cannot be increased 

later 

Is evidence of insurability (EOI) required • No, EOI is not required 

Can you choose to convert your ported 

coverage. 

• You may convert the ported amount; 

however, the ported coverage must terminate 

before a conversion policy will be issued. 

Choosing Conversion or Portability 

You must choose conversion or portability in writing within 31 days of the date 

coverage ends. Converted coverage becomes effective the first day after the 31-day

conversion period ends. Ported coverage becomes effective the first of the month 

following the 31-day election period. 

For more information or to request a conversion or portable policy, contact the 

Huntington Ingalls Benefits Center (HIBC) at 1-877-216-3222. 

Appeal Procedure 

19. What should a beneficiary do if benefits applied for are denied 

If a claim for benefits is wholly or partially denied, within a reasonable period of time 

the applicant will be provided with written notice of the denial containing: 

• The reasons for the denial; 

• Reference to the Plan provisions upon which the denial was based; 

• A summary of additional material or information, if any, required to complete the 

application; and 

• An explanation of the appeal procedure and your right to begin legal action if you 

request a review of your claim and it is denied after the review. 

Within 90 days from the date of receipt of the written denial notice, your beneficiary 

may submit a request to the Insurance Company in writing for a review of the denial. 

The request should contain facts that support the claim for benefits, and reasons why 

it should not have been denied. The request for review should be addressed and sent 

to: 

METLIFE 

Group Life Claims 

Oneida County Industrial park 

Oneida 5950 Airport Road 

Oriskany, NY 13424 

The request for review will be considered by the insurance company’s Claims Group, 

who will provide a written response, usually within 60 days, including specific 

reasons for the decision. If the claim is denied on review, the written response will 

include: 

• The reasons for the denial; 

• Reference to the Plan provisions upon which the denial was based; 

• A statement that you are entitled to receive, upon request and free of charge, 

reasonable access to and copies of all documents, records, and other information 

relevant to your claim for benefits; 

• A statement of your right to begin a lawsuit under the Employee Retirement 

Income Security Act (ERISA) of 1974. 


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If the claim for benefits is again wholly or partially denied, the beneficiary, within 90 

days after the date of the notification, may submit a request in writing for a further 

and final review to: 

METLIFE 


Oneida County Industrial park 

Oneida 5950 Airport Road 


The insurance company will consider the claim as promptly as possible, based upon 

the claim itself and the record of the previous review, and will issue its decision, in 

writing, within 60 days after receipt of the request for review. 

Additional Information about the Appeals Process ⎯ In filing an appeal, your 

beneficiary has the opportunity to: 

• Submit written comments, documents, records and other information relating to 

your claim for benefits 

• Have reasonable access to and review, upon request and free of charge, copies of 

all documents, records and other information relevant to your claim, including the 

name of any medical or vocational expert whose advice was obtained in 

connection with your initial claim 

• Have all relevant information considered on appeal, even if it wasn’t submitted or 

considered in your initial claim. 

The decision on the appeal will be made by a person or persons at the claim 

administrator who is not the person who made the initial claim decision and who is 

not a subordinate of that person. In making the decision on the appeal, the claims 

administrator will give no deference to the initial claim decision 

If the determination is based in whole or part on a medical judgment, the claims 

administrator will consult with a health care professional who has appropriate training 

and experience in the field of medicine involved in the medical judgment. The health 

care professional will not be the same individual who was consulted (if one was 

consulted) with regard to the initial claim decision and will not be a subordinate of 

that person. 

At both the initial claim level, and on appeal, your beneficiary or authorized 

representative may submit the appeal. In this case, the administrator may require the 

beneficiary to certify that the representative has permission to act for him or her. The 

representative may be a health care or other professional. However, even at the appeal 


April 2011 

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level, neither your beneficiary nor your representative has a right to appear in person 

before the claims administrator or the review panel. 

During the entire review process, your beneficiary may review pertinent documents at 

the Employee Benefits Office, during regular business hours. 

Your Rights 

You have certain legal rights which are explained in the description of “ERISA” rights in 

the Administrative Information section of this Employee Handbook. 


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Accidental Death & Dismemberment 

Insurance Plan 






Eligibility ............................................................................................................................ 1 

Payment of Benefits ............................................................................................................ 1 

Claim Procedure.................................................................................................................. 4 

Loss of Benefits .................................................................................................................. 4 

Conversion Option .............................................................................................................. 5 

Exclusions ........................................................................................................................... 5 

Appeal Procedure ................................................................................................................ 6 

Your Rights ......................................................................................................................... 8 

APPENDIX A ..................................................................................................................... 9 

APPENDIX B ................................................................................................................... 13


Newport News Operations Accidental Death & Dismemberment Insurance Plan for 

Employees Covered by the United Steel, Paper and Forestry, Rubber, Manufacturing, 

Energy, Allied Industrial and Service Workers International Union (United 

Steelworkers), Local 8888, Collective Bargaining Agreement Effective October 27, 2008, 

through March 10, 2013 (the “Plan”) and is intended to describe the benefits the Plan 

provides for eligible employees. References in this booklet to the “Company” mean 

Huntington Ingalls Industries, Inc. Newport News Operations. 

Eligibility 

1. Who may participate in the Accidental Death & Dismemberment Insurance 

(AD&D) Plan 

All active, full-time employees covered by the Collective Bargaining Agreement 

between Huntington Ingalls Industries, Inc. Newport News Operations (the 

“Company”) and United Steelworkers, Local 8888, (bargaining unit), become 

eligible for coverage on the first day following the completion of three months of 

continuous active employment, provided the employee is actively at work on that 

day. The Company pays 100% of the cost for coverage and no employee 

contributions (premiums) are required. 

Effective July 1, 2009, Eligible employees may also purchase optional AD&D 

coverage. 


Yes. You may purchase optional AD&D coverage for your eligible spouse and/or 

dependent child(ren) effective July 1, 2009. 



Basic AD&D Insurance 

Benefits are payable to the employee (or to the employee’s estate) when he or she 

suffers a loss that is: 

• The result of a covered accident that is directly and independently of all other 

causes 

• One of the covered losses specified in Appendix A 


April 2011 

1

• Suffered by the employee within 365 days of the covered accident. 

Additional benefits are available for certain circumstances – see Appendix B. 

Benefits for loss of life will be payable in accordance with the beneficiary provision. 

Optional AD&D Insurance 

You may purchase optional accidental death and dismemberment (AD&D) 

insurance for yourself only or for yourself and your eligible family members. If you 

select optional AD&D insurance, you pay the full cost with after-tax dollars, based 

on rates negotiated by Huntington Ingalls Industries, Inc. 

You can choose optional AD&D insurance when you are first hired and during 

annual enrollment. Because you pay for optional AD&D insurance with after-tax 

dollars, you can also enroll in optional AD&D insurance for yourself and your 

dependents at any time during the benefit plan year. 

If you and your spouse work for Huntington Ingalls Industries, Inc., only one of you 

may cover the entire family for AD&D insurance. The other employee may elect 

employee-only coverage. 

Optional AD&D Insurance for Yourself Effective July 1, 2009 

If you select optional coverage and suffer an eligible loss, you will receive benefits 

under both your basic and optional AD&D insurance. 

The optional employee AD&D insurance options are: 











• No optional employee AD&D insurance. 


April 2011 

2

Optional AD&D Insurance for Your Eligible Family Members Effective July 

1, 2009 

You also may purchase optional AD&D insurance for your eligible family 

members including yourself and your eligible dependents, up to a maximum of 

$1 million. The optional family AD&D insurance options are: 











• No optional AD&D insurance for your family. 

If you select family coverage, your spouse and/or child(ren)’s coverage is based 

on your eligible family members at the time of the loss, as shown in this chart: 

Amount of Dependent Coverage 

Spouse only 

75% of your optional coverage 

Spouse and children Spouse: 60% of your optional coverage 

Children: 15% of your optional coverage per child (up to 

$50,000) 

Children only 25% of your optional coverage per child (up to $50,000) 


• Your annual base pay is $40,000 

• You choose family AD&D coverage equal to 2 x your annual base pay 

• You are married and have two children. 

In this example, 

• Your AD&D coverage amount is $80,000 (2 x $40,000) 

• Your spouse’s coverage amount is $48,000 (60% x $80,000) 

• Your children’s coverage amount is $12,000 per child (15% x $80,000). 

If you and your spouse work for Huntington Ingalls Industries, Inc., only one of 

you may cover the entire family for AD&D insurance. 


April 2011 

3

Upon the death of a covered dependent child between the ages of 19 and 25, the 

insurance carrier may require proof of student status before paying any AD&D 

benefit. 

AD&D insurance pays a percentage of the AD&D coverage amount based on the 

type of loss incurred, as shown in the chart in Appendix A. 

4. In the event of the death of an employee while a benefit is payable, to whom 

will the benefit be paid 



predeceased the employee, the accident insurance benefit will be paid in the 

following order to the employee’s: 

1) Spouse 

2) Estate 


Yes, the employee may change the designated beneficiary at any time by going 

online to Your Benefits Resources via HII Benefits Connect at http://hiibenefits.com. 

If you do not have Internet access, please call the Huntington Ingalls Benefits 

Center (HIBC) at 1-877-216-3222. 

6. In what form are AD&D insurance benefits paid 

Payment will be made in a lump sum unless otherwise specified in Appendix A or 

Appendix B. 

Claim Procedure 

7. What is the procedure for filing an AD&D claim 

The employee, or other appropriate representative, should contact the HIBC 

at 1-877-216-3222 within 31 days after a covered loss occurs or begins, or as soon 

as reasonably possible. The HIBC will provide the claim form for you to complete 

and return within 90 days of the loss for which the claim is made. 


8. Under what conditions might benefits outlined in this SPD become 

unavailable 

Entitlement to the benefits that are provided by this Plan would be lost or forfeited: 

• 30 days after the last day of work or 31 days after the last day on roll for an 


April 2011 

4

employee not working due to illness or injury 

• Upon transfer to a job classification out of the bargaining unit 

• If an employee or beneficiary, in connection with the filing of a claim, fails in 

any respect to fulfill Plan requirements as they are stated herein 


Conversion Option 

9. Can the AD&D coverage be converted to an individual policy 

An employee under age 70 has the option to buy an individual AD&D policy (or an 

individual certificate under a designated group policy), without having to provide 

evidence of insurability, if the employee’s AD&D insurance, or any portion of it, 

ends because of the employee’s termination of employment or is no longer eligible 

for the Plan. The converted policy may exclude some benefits provided under this 

group policy. 

The covered person may apply for an amount of coverage that is: 

• In $1,000 increments 

• Not less than $25,000, regardless of the amount of insurance under the Plan 

• Not more than the amount of insurance while the covered person was in the 

Plan, except as provided above, up to a maximum of $250,000. 

The employee must apply for the individual policy within 31 days after his or her 

coverage under this group policy ends and pay the required premium. If the 

employee has assigned ownership of his group coverage, the owner/assignee must 

apply for the individual policy. 

If the employee dies during this 31-day period as a result of an accident that would 

have been covered under the group policy, the insurance company will pay as a 

claim the amount of insurance that the employee was entitled to convert. It does not 

matter whether the employee applied for the individual policy or certificate. 

However, if such policy or certificate is issued, it will be in exchange for any other 

benefits under this group policy. 

The individual policy or certificate will take effect on the day following the date 

coverage under the group policy ended or, if later, the date application is made. 

Exclusions 

10. Are there any exclusions to the Plan 

Yes. No payment shall be made for any loss which, directly or indirectly, in whole 

or in part, is caused by or results from: 

• Intentionally self-inflicted Injury, suicide or any attempt thereat while sane or 


April 2011 

5

insane 

• Commission or attempt to commit a felony or an assault 

• Declared or undeclared war or act of war 

• Flight in, boarding or alighting from an aircraft or any craft designed to fly 

above the Earth’s surface, except as a passenger in an aircraft piloted by 

properly qualified and licensed pilots holding current and valid certificates of 

competency of a rating authorizing them to pilot such aircraft 

• Sickness, disease, bodily or mental infirmity, bacterial or viral infection or 

medical or surgical treatment thereof (except surgical or medical treatment 

required by an accident), except for any bacterial infection resulting from an 

accidental external cut or wound or accidental ingestion of contaminated food 

• Voluntary ingestion of any narcotic, drug, poison, gas or fumes, unless 

prescribed or taken under the direction of a Physician and taken in accordance 

with the prescribed dosage 

• Any accident that occurs while engaged in the activities of active duty service in 

the military, Navy or Air Force of any country or international organization 

• Covered accidents that occur while engaged in Reserve or National Guard 

training after the 31 st day of training 

• Operating any type of vehicle while under the influence of alcohol or any drug, 

narcotic or other intoxicant including any prescribed drug for which the 

employee has been provided a written warning against operating a vehicle while 

taking it. “Under the influence of alcohol” means intoxicated, as defined by the 

law of the state in which the covered accident occurred. 


11. What procedure should be followed if benefits applied for are denied 

If a claim for benefits is wholly or partially denied, within a reasonable period of 

time the applicant will be provided with written notice of the denial containing: 

• The reasons for the denial 

• Reference to the Plan provisions upon which the denial was based 

• A summary of additional material or information, if any, required to complete 

the application 

• An explanation of the appeal procedure and your right to begin legal action if 

you request a review of your claim and it is denied after the review. 

The notice of denial will be provided within 90 days after the claim for benefits is 

received, unless the insurance company determines that special circumstances 

require an extension of time for processing the claim. If the insurance company 

determines that an extension of time is required, written notice of the extension will 

be provided prior to the end of the initial 90-day period, indicating the special 

circumstances that require an extension and the date by which a decision will be 

rendered. 


April 2011 

6

Within 60 days after the date of the written denial notice, the employee, a 

beneficiary, or an authorized representative of either may submit a request in 

writing for a review of the denial. The request should contain facts that support the 

claim for benefits, and reasons why it should not have been denied. The request for 

review should be addressed and sent to: 

CIGNA Group Insurance 

1601 Chestnut Street 

Philadelphia, PA 19192 

The request for review will be considered by the insurance company’s Claims 

Group who will provide a written response, usually within 60 days, including 

specific reasons for the decision. If the claim is denied on review, the written 

response will include: 





relevant to your claim for benefits 




received, unless the insurance company determines that special circumstances 

require an extension of time for processing the claim. If the insurance company 

determines that an extension of time is required, written notice of the extension will 

be provided prior to the end of the initial 60-day period, indicating the special 

circumstances that require an extension and the date by which a decision will be 

rendered. 

Additional Information about the Appeals Process In filing an appeal, you 

have the opportunity to: 



• Have reasonable access to and review, upon request and free of charge, copies 

of all documents, records and other information relevant to your claim, 

including the name of any medical or vocational expert whose advice was 

obtained in connection with your initial claim 

• Have all relevant information considered on appeal, even if it wasn’t submitted 

or considered in your initial claim. 

The decision on the appeal will be made by a person or persons at the claims 


not a subordinate of that person. In making the decision on the appeal, the claims 


April 2011 

7

administrator will give no deference to the initial claim decision. 


administrator will consult with a health care professional who has appropriate 

training and experience in the field of medicine involved in the medical judgment. 

The health care professional will not be the same individual who was consulted (if 

one was consulted) with regard to the initial claim decision and will not be a 

subordinate of that person. 

At both the initial claim level, and on appeal, you may have an authorized 

representative submit your claim for you. In this case, the administrator may require 

you to certify that the representative has permission to act for you. The 

representative may be a health care or other professional. However, even at the 

appeal level, neither you nor your representative has a right to appear in person 

before the claims administrator or the review panel. 

During the entire review process, the applicant may review pertinent documents at 

the Employee Benefits Office during regular business hours. 

Your Rights 




April 2011 

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Basic AD&D Insurance 

APPENDIX A 

Schedule of Insurance for Steelworkers 

For Collective Bargaining Agreement 

Loss of: 

Life 

Two or more hands or feet 

Sight of both eyes 

One Hand or one foot and sight in one 

eye 

Speech and hearing (both ears) 

Quadriplegia 

Paraplegia 

Hemiplegia 

Coma: 

Monthly benefit 

Number of monthly benefits 

When payable 

Lump sum benefit 

When payable 

One hand or foot 

Sight in one eye 

Speech 

Hearing (both ears) 

Severance and reattachment of one hand 

or foot 

Loss of thumb and index finger of the 

same hand 

$20,000 

$20,000 

$20,000 

$20,000 

$20,000 

$20,000 

$15,000 

$10,000 

$200 

11 

End of each month during 

which the employee remains 

comatose 

$20,000 

Beginning of the 12 th month 

$15,000 

$12,000 

$17,000 

$17,000 

$5,000 

$5,000 

If an insured suffers more than one of the losses described above as a result of any one 

accident, no more than $20,000 shall be payable. The amount for loss of life is in addition 

to the Basic Life Insurance amount of $35,000. See the Life Insurance SPD for further 

information. 


April 2011 

9

APPENDIX A 

(cont.) 


For Collective Bargaining Agreement October 27, 2008, through March 10, 2013 

Definitions for Basic AD&D: 

Loss of a Hand or Foot - complete severance through or above the wrist or ankle joint. 

Loss of Sight - the total and permanent loss of all vision in one eye which is 

irrecoverable by natural, surgical or artificial means. 

Loss of Speech - the total and permanent loss of audible communication which is 


Loss of Hearing - the total and permanent loss of ability to hear any sound in both ears 

which is irrecoverable by natural, surgical or artificial means. 

Loss of a Thumb and Index Finger of the Same Hand - complete severance through or 

above the metacarpophalangeal joints of the same hand (the joints between the fingers 

and the hand). 

Paralysis or Paralyzed - the total loss of use of a limb. A physician must determine the 

loss of use to be complete and irreversible. 

Quadriplegia - the total paralysis of both upper and both lower limbs. 

Hemiplegia - the total paralysis of the upper and lower limbs on one side of the body. 

Paraplegia - total paralysis of both lower limbs or both upper limbs. 

Coma - a profound state of unconsciousness which resulted directly and independently 

from all other causes from a covered accident, and from which the employee is not likely 

to be aroused through powerful stimulation. This condition must be diagnosed and treated 

regularly by a physician. Coma does not mean any state of unconsciousness intentionally 

induced during the course of treatment of a covered Injury unless the state of 

unconsciousness results from the administration of anesthesia in preparation for surgical 

treatment of that covered accident. 

Severance - the complete and permanent separation and dismemberment of the part from 

the body. 


April 2011 

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APPENDIX A 

(cont.) 



Optional AD&D Insurance 

Optional AD&D insurance pays a percentage of the AD&D coverage amount based on 

the type of loss incurred, as shown in this chart: 

Type of Loss*: 

Percentage of AD&D Coverage Amount Paid 

If You Suffer a 

Loss 

If Your 

Covered 

Spouse Suffers 

a Loss 

If Your 

Covered Child 

Suffers a Loss 

Life 100% 100% 100% 

Two or more (hands or feet) 100% 100% 200% 

Sight in both eyes 100% 100% 200% 

One hand and one foot 100% 100% 200% 

One hand or one foot and sight 100% 100% 200% 

in one eye 

Speech and hearing in both 100% 100% 200% 

ears 

Use of four limbs 

100% 100% 200% 

(quadriplegia) 

Use of both lower limbs or 

75% 75% 150% 

both upper limbs (paraplegia) 

Use of both limbs on the same 50% 50% 100% 

side of the body (hemiplegia) 

One hand or one foot 75% 75% 150% 

Sight in one eye 60% 60% 120% 

Speech or hearing in both ears 85% 85% 170% 

Thumb and index finger of 

same hand 

Severance and reattachment of 

one hand or foot 

Maximum benefit for all losses 

in any one accident 

25% 25% 50% 

25% 25% 50% 

100% 100% $100,000 


April 2011 

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* A loss is defined as: 

• For a hand or a foot: severance through or above the wrist or ankle 

• For sight: complete, total and irrecoverable loss to the sight of the eye 

• For speech: complete, total and irrecoverable loss of speech 

• For hearing: complete, total and irrecoverable loss of hearing 

• For thumb and index finger: complete and total severance at or above the knuckles 

• For quadriplegia: total paralysis of both arms and legs 

• For paraplegia: total paralysis of both arms or both legs 

• For hemiplegia: total paralysis of the arm and leg on the same side of the body. 

Paralysis means the total loss of use of an arm or leg. Severance means the complete and 

permanent separation and dismemberment of the part from the body. 


April 2011 

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APPENDIX B 

Additional Benefits for Steelworkers 


The following benefits are paid in addition to any other Accidental Death & 

Dismemberment (AD&D) benefits payable. 

Brain Damage Benefit: The benefit shown will be paid if an 

employee suffers a covered injury that results directly and 

independently of all other causes from a covered accident and 

results in brain damage. The benefit will be payable if all of 

the following conditions are met: 

• Brain damage begins within 60 days from the date of 

the covered accident 

• The employee is hospitalized for treatment of brain 

damage at least seven days within the first 120 days 

following the covered accident 

• Brain damage continues for 12 consecutive months 

• A physician determines that as a result of brain 

damage, the employee is permanently and totally 

disabled at the end of the 12 consecutive month 

period. 

The benefit will be paid in one lump sum at the beginning of 

the 13 th month following the date of the covered accident if 

brain damage continues longer than 12 consecutive months. 

The amount payable will not exceed $20,000. 

$20,000 

Definitions: 

Brain Damage – physical damage to the brain that results 

directly and independently of all other causes from a Covered 

Accident and causes the covered person to be permanently 

and totally disabled. 

Permanently and Totally Disabled – a covered person who 

is totally disabled and is expected to remain totally disabled, 

as certified by a physician, for the rest of his life. 


April 2011 

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Felonious Assault and Violent Crime Benefit: The benefit 

shown will be paid, subject to the following conditions and 

exclusions, when the employee suffers a covered loss 

resulting directly and independently of all other causes from a 

covered accident that occurs during a violent crime or 

felonious assault as described below. A police report 

detailing the felonious assault or violent crime must be 

provided before any benefits will be paid. 

10% of the applicable 

benefits, subject to a 

minimum of $100 and 

a maximum of $10,000 

To qualify for a benefit payment, the covered accident must 

occur during any of the following: 

• Actual or attempted robbery or holdup 

• Actual or attempted kidnapping 

• Any other type of intentional assault that is a crime 

classified as a felony by the governing statute or common 

law in the state where the felony occurred. 

Exclusions: 

Benefits will not be paid for treatment of any covered injury 

sustained or covered loss incurred during any: 

• Violent crime or felonious assault committed by the 

covered person 

• Felonious assault or violent crime committed upon the 

employee by a fellow employee, family member, or 

member of the same household. 

Definitions: 

Family Member - the covered person’s parent, step-parent, 

spouse or domestic partner or former spouse or domestic 

partner, son, daughter, brother, sister, mother-in-law, fatherin-law, 

son-in-law, daughter-in-law, brother-in-law, sister-inlaw, 

aunt, uncle, cousins, grandparent, grandchild and 

stepchild. 

Fellow Employee - a person employed by the same employer 

as the employee or by an employer that is an affiliated or 

subsidiary corporation. It shall also include any person who 

was so employed, but whose employment was terminated not 

more than 45 days prior to the date on which the defined 

violent crime/felonious assault was committed. 

Member of the Same Household - a person who maintains 

residence at the same address as the covered person. 


April 2011 

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Home Alternation and Vehicle Modification Benefit: The 

benefit shown will be paid, subject to the following conditions 

and exclusions in Q&A10, when the employee suffers a 

covered loss, other than a loss of life, resulting directly and 

independently of all other causes from a covered accident. 

$2,000 

This benefit will be payable if all of the following conditions 

are met: 

• The employee did not require the use of any adaptive 

devices or adaptation of residence and/or vehicle prior to 

the date of the covered accident causing such covered loss 

• The employee now requires such adaptive devices or 

adaptation of residence and/or vehicle to maintain an 

independent lifestyle as a direct result of such covered loss 

• The employee requires home alteration or vehicle 

modification within one year of the date of the covered 

accident. 

Hospital Stay Benefit: The benefit shown will be paid, 

subject to the following conditions and exclusions (refer to the 

“Exclusions” section), if the covered person requires a 

hospital stay due to a covered loss resulting directly and 


The hospital stay must meet all of the following: 

• Be at the direction and under the care of a physician 

• Begin within 90 days of the covered accident 

• Begin while the covered person’s AD&D insurance is in 

effect. 

The benefit will be paid for each day of a continuous hospital 

stay that continues after the end of the benefit waiting period 

as shown in the Schedule of Benefits. Benefits will be paid 

retroactively to the first day of the hospital stay. 

Rehabilitation Benefit: The benefit shown in the Schedule of 

Benefits will be paid, subject to the following conditions and 

exclusions (refer to the ”Exclusions” section), when the 

employee requires rehabilitation after sustaining a covered 

loss resulting directly and independently of all other causes 

from a covered accident. 

The employee must require Rehabilitation within two years 

after the date of the covered loss. 

Definition: 

Rehabilitation - medical services, supplies, or treatment, or 

$1,000 per month* 

Maximum: 12 months 

per stay per benefit 

waiting period. 

*A pro rata payment 

will be made for any 

confinement of less 

than one month. 

20% multiplied by the 

percentage of the 

covered person’s 

principal sum 

applicable to the 

covered loss, as shown 

in the Schedule of 

Covered Losses, 

subject to a minimum 

of $4,500 and a 

maximum of $18,000. 


April 2011 

15

hospital confinement (or part of a hospital confinement) that 

satisfies all of the following conditions: 

• Are essential for physical rehabilitation required due to the 

covered person’s covered loss 

• Meet generally accepted standards of medical practice 

• Are performed under the care, supervision or order of a 

Physician 

• Prepare the employee to return to his or any other 

occupation. 

Seatbelt and Airbag Benefit: The benefit shown in the 

Schedule of Benefits will be paid, subject to the conditions 

and exclusions (refer to the ”Exclusions” section) described 

below, when the employee dies directly and independently of 

all other causes from a covered accident while wearing a 

seatbelt and operating or riding as a passenger in an 

automobile. An additional benefit is provided if the employee 

was also positioned in a seat protected by a properlyfunctioning 

and properly deployed Supplemental Restraint 

System (Airbag). 

$4,000 – Seatbelt 

$2,000 – Air Bag 

Verification of proper use of the seatbelt at the time of the 

covered accident and that the Supplemental Restraint System 

properly inflated upon impact must be a part of an official 

police report of the covered accident or be certified, in 

writing, by the investigating officer(s) and submitted with the 

covered person’s claim to the insurance company. 

Definitions: 

Supplemental Restraint System - an airbag that inflates 

upon impact for added protection to the head and chest areas. 

Automobile - a self-propelled, private passenger motor 

vehicle with four or more wheels, which is a type both 

designed and required to be licensed for use on the highway 

of any state or country; includes, but is not limited to, a sedan, 

station wagon, sport utility vehicle, or a motor vehicle of the 

pickup, van, camper, or motor-home type; does not include a 

mobile home or any motor vehicle that is used in mass or 

public transit. 

Survivor Benefit: The benefit shown will be paid, subject to 

the conditions and exclusions (refer to the “Exclusions” 

section), if the covered employee’s death results directly and 


$12,000 


April 2011 

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The Spouse will receive the benefit in a lump sum. 

Definitions: Spouse – the employee’s lawful spouse 


April 2011 

17










Eligibility ............................................................................................................... 3 

Payment of Benefits ................................................................................................. 4 

Claim Procedure ...................................................................................................... 5 

Loss of Benefits ...................................................................................................... 5 

Exclusions .............................................................................................................. 6 

Appeal Procedure .................................................................................................... 6 

Your Rights ............................................................................................................ 8 

APPENDIX A — Schedule of Insurance for Steelworkers ........................................... 9 

APPENDIX B — Additional Benefits for Steelworkers ............................................. 11


Newport News Operations Business Travel Accident Insurance Plan for Employees 

Covered by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied 

Industrial and Service Workers International Union (United Steelworkers), Local 8888, 

Collective Bargaining Agreement Effective October 27, 2008, through March 10, 2013 

(the “Plan”), and is intended to describe the benefits the Plan provides for eligible 

employees. References in this booklet to the “Company” mean Huntington Ingalls 

Industries, Inc. Newport News Operations. 

Eligibility 

1. Who may participate in the Business Travel Accident Insurance (BTA) Plan 

All active, full-time employees covered by the Collective Bargaining Agreement 

between Huntington Ingalls Industries, Inc. Newport News Operations (the 

―Company‖) and United Steelworkers, Local 8888, (bargaining unit), become eligible 

for coverage on their first day of work. The Company pays 100% of the cost for 

coverage and no employee contributions (premiums) are required. 


No. The Plan does not provide BTA insurance coverage for dependents. 


The amount of the benefit is specified in Appendix A. Benefits are payable to the 

employee (or to the employee’s estate) when he or she suffers a loss that is: 

• The result of a covered accident that is directly and independently of all other 

causes 

• One of the covered losses specified in Appendix A 

• Suffered by the employee within 365 days of the covered accident. 

Additional benefits are available for certain circumstances – see Appendix B. 

Benefits for loss of life will be payable in accordance with the beneficiary provision. 

4. What is the Plan definition of the term “while on the business of the Company” 

The term means any trip made by an insured employee upon assignment by, or with, 

consent of the Company, the purpose of which is to further the business of the 

Company. 


April 2011 

3

The following situations are not considered traveling to further the business of the 

Company: 

• During regular travel between the employee’s place of employment and home 

• While on a bona fide vacation 

• While on job sites. 

5. When does coverage for travel “while on the business of the Company” begin 

and end 

Coverage begins at the actual start of the trip, whether it is from the employee’s place 

of employment, home or other location. Coverage stops when the employee returns to 

his or her place of employment or home, whichever occurs first. 

6. How does the Plan define the term “loss” 

Please refer to Appendix A, Definitions for detailed information on the Plan’s 

definitions of this term. 

7. Are there any limitations on coverage when travel on the business of the 

Company is performed on an aircraft 

Generally, yes. Please see Q&A 15 for exclusions to this situation. 

8. Is in-city, inter-plant travel covered under the Plan 

Such travel is covered only if the trip requires leaving the plant premises and requires 

vehicular transportation to the premises of another plant. 


9. In the event of the death of an employee while a benefit is payable, to whom will 

the benefit be paid 



predeceased the employee, the accident insurance benefit will be paid in the 

following order to the employee’s: 

• Spouse 

• Child(ren) 

• Parent(s) 

• Brother/Sister 

• Estate 


April 2011 

4


Yes, the employee may change the designated beneficiary at any time by going online 

to Your Benefits Resources via HII Benefits Connect at http://hiibenefits..com. If you 

do not have Internet access, please call the HuntingtonIngalls Benefits Center 

(HIBC) at 1-877-216-3222. 

11. In what form will the death benefit be paid 

Payment will be made in a lump sum, unless otherwise specified in Appendix A or 

Appendix B, to your designated beneficiary(ies). Your beneficiary(ies) have the 

option to receive the lump sum, or have it deposited into an account reserved for this 

benefit and access the money when necessary. 

12. Are payments under the Plan reduced by benefits received from Workers’ 

Compensation 

Payments made under the Plan are not in lieu of, and are not reduced nor affected by 

any entitlement under the Workers’ Compensation laws. 


13. What is the procedure for filing a BTA claim 

The employee, beneficiary, or other appropriate representative, should contact the 

HIBC at 1-877-216-3222 within 31 days after a covered loss occurs or begins, or as 

soon as reasonably possible. The HIBC will provide the claim form for you to 

complete and return within 90 days of the loss for which the claim is made. 

The HIBC will prepare and process the appropriate claim forms. In the case of a death 

claim, it will be necessary for the beneficiary or authorized representative to provide a 

certified copy of the death certificate. 


14. Under what conditions might benefits outlined in this SPD become unavailable 

Entitlement to the benefits that are provided by this Plan would be lost or forfeited: 

• On the date the insured employee’s employment ends, including retirement 

• Upon transfer to a job classification out of the bargaining unit 

• If an employee or beneficiary, in connection with the filing of a claim, fails in any 

respect to fulfill Plan requirements as they are stated herein 



April 2011 

5

Exclusions 

15. Are there any exclusions to the Plan 

Yes. No payment shall be made for any loss which, directly or indirectly, in whole or 

in part, is caused by or results from: 

• Intentionally self-inflicted Injury, suicide or any attempt thereat while sane or 

insane 

• Commission or attempt to commit a felony or an assault 

• Declared or undeclared war or act of war 

• Flight in, boarding or alighting from an aircraft or any craft designed to fly above 

the Earth’s surface, except as a passenger in an aircraft piloted by properly 

qualified and licensed pilots holding current and valid certificates of competency 

of a rating authorizing them to pilot such aircraft 

• Sickness, disease, bodily or mental infirmity, bacterial or viral infection or 

medical or surgical treatment thereof (except surgical or medical treatment 

required by an accident), except for any bacterial infection resulting from an 

accidental external cut or wound or accidental ingestion of contaminated food 

• Voluntary ingestion of any narcotic, drug, poison, gas or fumes, unless prescribed 

or taken under the direction of a Physician and taken in accordance with the 

prescribed dosage 

• Any accident that occurs while engaged in the activities of active duty service in 

the military, navy or air force of any country or international organization. 

• Covered accidents that occur while engaged in Reserve or National Guard 

training are not excluded until training extends beyond 31 days 

The Covered Person’s intoxication as determined according to the laws of the 

jurisdiction in which the Covered Accident occurred. 



If a claim for benefits is wholly or partially denied, within a reasonable period of time 

the applicant will be provided with written notice of the denial containing: 




application 

• An explanation of the appeal procedure and your right to begin legal action if you 



received, unless the insurance company determines that special circumstances require an 


April 2011 

6

extension of time for processing the claim. If the insurance company determines that an 

extension of time is required, written notice of the extension will be provided prior to the 

end of the initial 90-day period, indicating the special circumstances that require an 

extension and the date by which a decision will be rendered. 

Within 90 days after the date of the written denial notice, the employee, a beneficiary, or 

an authorized representative of either may submit a request in writing for a review of the 

denial. The request should contain facts that support the claim for benefits, and reasons 

why it should not have been denied. The request for review should be addressed and sent 

to: 




The request for review will be considered by the insurance company’s Claims Group who 

will provide a written response, usually within 60 days, including specific reasons for the 

decision. If the claim is denied on review, the written response will include: 









received, unless the insurance company determines that special circumstances require an 

extension of time for processing the claim. If the insurance company determines that an 

extension of time is required, written notice of the extension will be provided prior to the 

end of the initial 60-day period, indicating the special circumstances that require an 

extension and the date by which a decision will be rendered. 

Additional Information about the Appeals Process 

the opportunity to: 

In filing an appeal, you have 



• Have reasonable access to and review, upon request and free of charge, copies of 

all documents, records and other information relevant to your claim, including the 

name of any medical or vocational expert whose advice was obtained in 

connection with your initial claim 


considered in your initial claim 


April 2011 

7

• The decision on the appeal will be made by a person or persons at the claim 

administrator who is not the person who made the initial claim decision and who 

is not a subordinate of that person. In making the decision on the appeal, the 

claims administrator will give no deference to the initial claim decision. 



and experience in the field of medicine involved in the medical judgment. The health care 

professional will not be the same individual who was consulted (if one was consulted) 

with regard to the initial claim decision and will not be a subordinate of that person. 

At both the initial claim level, and on appeal, you may have an authorized representative 

submit your claim for you. In this case, the administrator may require you to certify that 

the representative has permission to act for you. The representative may be a health care 

or other professional. However, even at the appeal level, neither you nor your 

representative has a right to appear in person before the claims administrator or the 

review panel. 

During the entire review process, the applicant may review pertinent documents at the 

Employee Benefits Office during regular business hours. 

Your Rights 

You have certain legal rights which are explained in the description of ―ERISA‖ rights in 



April 2011 

8

APPENDIX A — Schedule of Insurance for Steelworkers 

While Traveling on the Business of the Company 

Collective Bargaining Agreement October 27, 2008, through March 10, 2013 

The following is a schedule of benefits for losses that occur within one year following an 

accident that takes place while traveling on the business of the Company. 

Loss of: 

Life 

Two or more hands or feet 

Sight of both eyes 

One Hand or one foot and sight in 

one eye 

Speech and hearing (both ears) 

Quadriplegia 

Paraplegia 

Hemiplegia 

Coma: 

• Monthly benefit 

• Number of monthly benefits 

• When payable 

• Lump sum benefit 

• When payable 

One hand or foot 

Sight in one eye 

Speech 

Hearing (both ears) 

Loss of thumb and index finger of 

the same hand 

Loss of all four fingers of the same 

hand 

Loss of all toes of the same foot 

While on 

Submarine Trials 

$60,000 

$60,000 

$60,000 

$60,000 

$60,000 

$60,000 

$37,500 

$25,000 

$500 

11 


which the employee 

remains comatose 

$60,000 

Beginning of the 12th 

month 

$37,500 

$30,000 

$42,500 

$42,500 

$12,500 

$12,500 

$10,000 

Other than 

Submarine Trials 

$30,000 

$30,000 

$30,000 

$30,000 

$30,000 

$30,000 

$18,750 

$12,500 

$250 

11 


which the employee 

remains comatose 

$30,000 

Beginning of the 12th 

month 

$18,750 

$15,000 

$21,250 

$21,250 

$6,250 

$6,250 

$5,000 

If an insured employee suffers more than one of the losses described above as a result of any one 

accident, no more than $30,000 or $60,000 (if occurred during a submarine trial) shall be payable. 


April 2011 

9

Definitions: 

• Loss of a Hand or Foot — complete severance through or above the wrist or ankle 

joint. 

• Loss of Sight — the total and permanent loss of all vision in one eye which is 


• Loss of Speech — the total and permanent loss of audible communication which is 


• Loss of Hearing — the total and permanent loss of ability to hear any sound in both 

ears which is irrecoverable by natural, surgical or artificial means. 

• Loss of a Thumb and Index Finger of the Same Hand — complete severance 

through or above the metacarpophalangeal joints of the same hand (the joints between 

the fingers and the hand). 

• Paralysis or Paralyzed — the total loss of use of a limb. A physician must determine 

the loss of use to be complete and irreversible. 

• Quadriplegia — the total paralysis of both upper and both lower limbs. 

• Hemiplegia — the total paralysis of the upper and lower limbs on one side of the 

body. 

• Paraplegia — total paralysisof both lower limbs or both upper limbs. 

• Coma — a profound state of unconsciousness which resulted directly and 

independently from all other causes from a covered accident, and from which the 

employee is not likely to be aroused through powerful stimulation. This condition 

must be diagnosed and treated regularly by a physician. Coma does not mean any 

state of unconsciousness intentionally induced during the course of treatment of a 

covered Injury unless the state of unconsciousness results from the administration of 

anesthesia in preparation for surgical treatment of that covered accident. 

• Severance — the complete and permanent separation and dismemberment of the part 

from the body. 


April 2011 

10

APPENDIX B — Additional Benefits for Steelworkers 


The following benefits are paid in addition to any other Business Travel Accident (BTA) 

Insurance benefits payable. 

Brain Damage Benefit: The benefit shown will be 

paid if a employee suffers a covered injury that results 

directly and independently of all other causes from a 

covered accident and results in brain damage. The 

benefit will be payable if all of the following 

conditions are met: 

• The brain damage begins within 60 days from the 

date of the covered accident 

• The employee is hospitalized for treatment of 

brain damage at least seven days within the first 

120 days following the covered accident 

• The brain damage continues for 12 consecutive 

months 

• A physician determines that as a result of brain 

damage, the employee is permanently and totally 

disabled at the end of the 12 consecutive month 

period. 

The benefit will be paid in one lump sum at the 

beginning of the 13th month following the date of the 

covered accident if brain damage continues longer 

than 12 consecutive months. 

Definitions: 

Brain Damage — physical damage to the brain that 

results directly and independently of all other causes 

from a Covered Accident and causes the covered 

person to be permanently and totally disabled. 

Permanently and Totally Disabled — a covered 

person who is totally disabled and is expected to 

remain totally disabled, as certified by a physician, 

for the rest of his life. 

While on 

Submarine 

Trials 

$60,000 $30,000 

Other than 

Submarine 

Trials 


April 2011 

11

Felonious Assault and Violent Crime Benefit: The 

benefit shown will be paid when the employee suffers 

a covered loss resulting directly and independently of 

all other causes from a covered accident that occurs 

during a violent crime or felonious assault as 

described below. A police report detailing the 

felonious assault or violent crime must be provided 

before any benefits will be paid. 

To quality for benefit payment, the covered accident 

must occur during any of the following: 

• Actual or attempted robbery or holdup 

• Actual or attempted kidnapping 

• Any other type of intentional assault that is a 

crime classified as a felony by the governing 

statute or common law in the state where the 

felony occurred. 

Exclusions: 

Benefits will not be paid for treatment of any covered 

injury sustained or covered loss incurred during any: 

• Violent crime or felonious assault committed by 

the covered person 

• Felonious assault or violent crime committed upon 

the employee by a fellow employee, family 

member, or member of the same household. 

Definitions: 

Family Member — the covered person’s parent, stepparent, 

spouse or domestic partner or former spouse or 

former domestic partner, son, daughter, brother, sister, 

mother-in-law, father-in-law, son-in-law, daughter-inlaw, 

brother-in-law, sister-in-law, aunt, uncle, cousins, 

grandparent, grandchild and stepchild. 

Fellow Employee — a person employed by the same 

employer as the employee or by an employer that is an 

affiliated or subsidiary corporation. It shall also 

include any person who was so employed, but whose 

employment was terminated not more than 45 days 

prior to the date on which the defined violent 

crime/felonious assault was committed. 

Member of the Same Household — a person who 

maintains residence at the same address as the covered 

person. 

While on 

Submarine 

Trials 

10% of the 

applicable 

benefits, subject 

to a minimum of 

$100 and a 

maximum of 

$10,000 

Other than 

Submarine 

Trials 

10% of the 

applicable 

benefits, subject 

to a minimum of 

$100 and a 

maximum of 

$10,000 


April 2011 

12

Rehabilitation Benefit: The benefit shown in the 

Schedule of Benefits will be paid when the employee 

requires rehabilitation after sustaining a covered loss 

resulting directly and independently of all other causes 

from a covered accident. The employee must require 

Rehabilitation within two years after the date of the 

covered loss. 

Definition: 

Rehabilitation — medical services, supplies, or 

treatment, or hospital confinement (or part of a 

hospital confinement) that satisfies all of the following 

conditions: 

• Are essential for physical rehabilitation required 

due to the covered person’s covered loss 

• Meet generally accepted standards of medical 

practice 

• Are performed under the care, supervision or 

order of a physician 

• Prepare the employee to return to his or any other 

occupation. 

Seatbelt and Airbag Benefit: The benefit shown will 

be paid when the employee dies directly and 

independently of all other causes from a covered 

accident while wearing a seatbelt and operating or 

riding as a passenger in an automobile. An additional 

benefit is provided if the employee was also 

positioned in a seat protected by a properlyfunctioning 

and properly deployed Supplemental 

Restraint System (Airbag). 

Verification of proper use of the seatbelt at the time of 

the covered accident and that the Supplemental 

Restraint System properly inflated upon impact must 

be a part of an official police report of the covered 

accident or be certified, in writing, by the investigating 

officer(s) and submitted with the covered person’s 

claim to the insurance company. 

Definitions: 

Supplemental Restraint System — an airbag that 

inflates upon impact for added protection to the head 

and chest areas. 

Automobile — a self-propelled, private passenger 

motor vehicle with four or more wheels, which is a 

type both designed and required to be licensed for use 

While on 

Submarine 

Trials 

20% of the 

applicable 

benefits shown in 

the Schedule of 


subject to a 

minimum of 

$4,500 and a 

maximum of 

$18,000. 

N/A 

Other than 

Submarine 

Trials 

20% of the 

applicable 

benefits shown in 

the Schedule of 


subject to a 

minimum of 

$4,500 and a 

maximum of 

$18,000. 

$4,000 – Seatbelt 

$2,000 – Air Bag 


April 2011 

13

on the highway of any state or country; includes, but is 

not limited to, a sedan, station wagon, sport utility 

vehicle, or a motor vehicle of the pickup, van, camper, 

or motor-home type; does not include a mobile home 

or any motor vehicle that is used in mass or public 

transit. 

Survivor Benefit: The benefit shown will be paid, 

subject to the conditions and exclusions (refer to the 

―Exclusions‖ section), if the covered employee’s death 

results directly and independently of all other causes 

from a covered accident. 

The Spouse will receive the benefit in a lump sum. 

Definition: 

Spouse — the employee’s lawful spouse 

While on 

Submarine 

Trials 

$12,000 $12,000 

Other than 

Submarine 

Trials 


April 2011 

14








Effective October 27, 2008 through March 10, 2013


Eligibility……………………………………………………………………………… 3 

Payment of Benefits……………………………………………………………….. 3 

Claim Procedure……………………………………………………………………. 5 

Denial of a Claim……………………………………………………………………. 6 

Appeal Procedure………………………………………………………………….. 7 

Your Rights…………………………………………………………………………. 8 

Table of Weekly Disability Insurance Plan Benefits…………………………… 9

This Summary Plan Description (SPD) describes the Huntington Ingalls Industries, Inc. Newport 

News Operations Weekly Disability Insurance Plan for employees covered by the United Steel, 

Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers 

International Union (United Steelworkers), Local 8888, Collective Bargaining Agreement 

Effective October 27, 2008 through March 10, 2013 (the “Plan”). The Plan was established 

consistent with the provisions of the previous and current Collective Bargaining Agreements 

between Huntington Ingalls Industries, Inc. Newport News Operations (the “Company”) and the 

United Steelworkers, Local 8888. 

The terms and abbreviations Weekly Disability Insurance (WDI) and Sickness & Accident (S&A) 

are used interchangeably within this SPD. The Plan was maintained as a component plan 

under the Northrop Grumman Corporation Group Benefits Plan prior to the spin-off of 

Huntington Ingalls Industries, Inc. (the “Company”) from Northrop Grumman Corporation (the 

“Company Spin-off”). In connection with the Company Spin-off, the Plan was spun-off to and 

assumed by the Company and became a component plan under the Huntington Ingalls 

Industries, Inc. Group Benefits Plan effective as of the date of the Company Spin-off. If you 

were covered under the Plan immediately before the Company Spin-off, you remain enrolled in 

the Plan with the same coverage after the Company Spin-off, subject to normal Plan eligibility 

rules. 

Eligibility 

1. Who may participate in the Weekly Disability Plan 

All active, full-time employees covered by the Collective Bargaining Agreement between 

Huntington Ingalls Industries, Inc. Newport News Operations and United Steelworkers, Local 

888, (bargaining unit) become eligible for coverage the first day following the completion of 

three months of continuous active employment provided the employee is actively at work on that 

day. No employee contributions (premiums) are required. 


No. The Plan does not provide for coverage for dependents. 


3. When do Weekly Disability (Sickness and Accident/S&A) benefit payments 

begin 

Benefits are payable on the following days, provided you are under the care of a legally 

qualified physician (see Q&A 8): 

• The first day, for total disability due to an injury or for illness if hospitalized or outpatient 


April 2011 

3

surgery if performed in a covered hospital outpatient surgery facility 

• For the day(s) of outpatient pre-admission testing prior to surgery if performed within 

five days of the surgery 

• The eighth day, for total disability due to other illness. 

4. Does the Plan pay for disabilities that are a result of my employment 

No. Only non-occupational injuries and illness are covered by the Plan. 

5. 


April 2011 

4

How are benefits payable 

Benefits are payable weekly, while total disability continues, for each week, or portion 

thereof, after payments have commenced. For periods of less than a seven-day week, the 

benefit paid, for each day of disability absence, is a pro rata one-seventh of the weekly 

benefit. 

Payments under the Plan are taxable as ordinary income. The law provides that 

employees receiving temporary disability income benefits may elect whether or not they 

desire income tax to be withheld from the payments. This election should be made when 

you apply for benefits with Aetna. 

6. What is the maximum continuous period for which S&A benefits are paid 

Benefits are paid for a maximum of 26 weeks. 

7. Upon my return to work, how do I again become eligible for S&A coverage 

If you return to work for at least one full full-time and you become disabled again, you will 

again qualify for S&A benefits as follows: 

• If the subsequent disability is related to the prior one and upon your return to work, you 

work less than one continuous week of full-time active employment, then such benefits 

are payable immediately as a continuation of the prior period of disability and limited to 

the amount remaining of the 26-week maximum benefit. If you return to work for at 

least one full week of continuous active employment, you again become eligible for full 

benefits. 

• If the subsequent disability is unrelated to the prior one and you worked at least one 

full day between absences, then the full benefits will be restored. 

8. Is it necessary that I see my physician before benefits are payable 

Yes. Benefits will not be paid for any period of disability during which you are not under the 

regular care and treatment of a physician. 

9. How is the amount of my weekly benefit under the Weekly Disability Plan 

determined 

The amount of the Weekly Sickness and Accident benefit to which you are entitled is 

determined by the hourly base rate of pay which was in effect for you at the 

commencement of your disability. (See Table of Weekly Disability Insurance Plan 

Benefits.) This rate will continue throughout your period of disability. If there is an increase 

in benefits during your period of disability, your benefit will remain as it was on the 

commencement of your disability until you return to work in accordance with Q&A 7. 

10. Does the Plan have a subrogation provision 

Yes. If you receive any benefits under the Plan or any other Company benefit arising out of 

any injury, illness or condition for which you assert a claim to recovery against another 

person, then the Company will have the right of recovery or reimbursement to the extent of 

benefits payable under the Plan. Questions regarding this provision should be referred to 

the Aetna at 1-877-465-0424. 


11. How do I file a claim for Sickness and Accident Plan benefits 

When you are first unable to work because of a non-occupational illness or injury: 


April 2011 

5

• Consult your physician or surgeon for treatment; benefits are not payable until you 

have received medical attention (see Q&A 8) 

• Call Aetna at 1-800-488-2386 to report your injury or illness. An Aetna Group 

Insurance Disability Specialist will review your eligibility for disability benefits and begin 

the claim process. Be prepared to answer questions about your illness/injury, your 

occupation, and your physician’s name and telephone number. 

• You must file a claim within 90 days after the end of the period for which Sickness and 

Accident benefits are payable. 

12. When will I receive my S&A payment 

Your initial check will be sent to your home address two to three weeks after you call and 

report your disability. Thereafter, you will receive checks on a weekly basis during the 

approved period of disability. 

13. What if I am able to return to work sooner than the date my physician provided 

to Aetna 

If you believe you are able to return to work sooner than the date your physician provided 

to Aetna, you must, on your first day back to work, bring with you a return-to-work 

certificate from your physician and give it to your supervisor. In addition, you must call 

Aetna at 1-800-488-2386 and inform them of the date you are returning to work. Failure to 

contact Aetna will result in an overpayment of weekly disability benefits. Aetna will seek 

recovery, including payroll deductions, collection action, etc., of any overpayment you 

receive and do not voluntarily return. 

Denial of a Claim 

14. What are some of the conditions under which I could become ineligible for, or 

be denied benefits, which are made available under this Plan 

• If you terminate employment 

• If you are transferred to an assignment outside the bargaining unit 

• Anytime Plan requirements are not fulfilled in connection with the filing of a claim 

• If the Plan is terminated by the Company 

• If your disability is a result of your employment 

• If you are no longer totally disabled 

• If you perform any work for pay or profit. 


April 2011 

6



If a claim for benefits is wholly or partially denied, within 45 days the applicant will be 

provided with written notice of the denial containing: 




application 

• An explanation of the appeal procedure and of your right to begin legal action if you 


• The insurance company may take up to two 30-day extensions of the 45-day period, if 

necessary. 

Within 180 days after the date of the written denial notice, the employee, a beneficiary, or 

an authorized representative of either may submit a request in writing for a review of the 

denial. The request should contain facts supporting the claim for benefits, and reasons why 

it should not have been denied. 

The request for review should be addressed to: 

Weekly Disability Appeal 

Employee Benefits Office 

Huntington Ingalls Industries, Inc. Newport News Operations 

4101 Washington Ave. 

Newport News, Virginia 23607 

The request for review will be considered by the Benefits Manager, who will provide a 

written response within 45 days, subject to one extension of 45 days, if necessary. 

If the claim for benefits is again wholly or partially denied, the applicant, within 180 days 

after the date of the notification, may submit a request in writing for a further and final 

review to: 

Director, Compensation and Benefits 


4101 Washington Avenue 


The Director will consider the claim as promptly as possible, based upon the claim itself 

and the record of the previous review, and will issue its decision, in writing, within 45 days 

after receipt of the request for review, subject to one extension of 45 days, if necessary. 


April 2011 

7

If your first or second level appeal is denied, the written notice of denial will contain: 


• Reference to the Plan provisions on which the denial was based 




• A statement of your right to begin a lawsuit under the Employee Retirement Income 

Security Act of 1974. 

During the entire review process, an employee or the authorized representative may 

review pertinent documents at the Benefits Office, during regular business hours. 

Your Rights 

You have certain legal rights which are explained in the description of "ERISA" rights in the 

Administrative Information section of this Employee Handbook. 


April 2011 

8

Table of Weekly Disability Insurance Plan Benefits 

For Eligible Employees Covered by 

United Steelworkers of America, Local 8888 


Effective October 27, 2008 through March 10, 2013 

TABLE OF WEEKLY S&A BENEFITS FOR STEELWORKERS 

Effective Date Weekly Benefit Production* Support 

10/27/08 - 01/04/09 $280 up to $15.22 up to $15.16 

$285 $15.23 - $18.53 $15.17 - $18.33 

$290 $18.54 - $20.25 $18.34 - $20.24 

$295 $20.26 - $21.88 $20.25 or more 

$305 $21.89 or more 


01/05/09 - 11/29/09 $295 up to $15.22 up to $15.16 

$300 $15.23 - $18.53 $15.17 - $18.33 

$305 $18.54 - $20.25 $18.34 - $20.24 

$310 $20.26 - $21.88 $20.25 or more 

$320 $21.89 or more 


11/30/09 - 01/02/11 $295 up to $15.79 up to $15.73 

$300 $15.80 - $19.23 $15.74 - $19.02 

$305 $19.24 - $21.01 $19.03 - $21.00 

$310 $21.02 - $22.70 $21.01 or more 

$320 $22.71 or more 


01/03/11 - 02/05/12 $305 up to $16.38 up to $16.32 

$310 $16.39 - $19.95 $16.33 - $19.73 

$315 $19.96 - $21.80 $19.74 - $21.79 

$320 $21.81 - $23.55 $21.80 or more 

$330 $23.56 or more 


02/06/12 - 03/10/13 $305 up to $17.04 up to $16.97 

$310 $17.05 - $20.74 $16.98 - $20.52 

$315 $20.75 - $22.67 $20.53 - $22.66 

$320 $22.68 - $24.50 $22.67 or more 

$330 $24.51 or more 


April 2011 

9


April 2011 

10










The Employee Assistance Plan ........................................................................................... 3 

Benefit Commencement...................................................................................................... 3 

Eligible Participant.............................................................................................................. 4 

Definition of a "Regular, Full-time Employee" .................................................................. 4 

Participation ........................................................................................................................ 4 

Voluntary Self-Referral ...................................................................................................... 4 

Supervisory and/or Medical Department Referral .............................................................. 4 

Mandatory Referral* ........................................................................................................... 4 

How the EAP Works ........................................................................................................... 5 

Medical Plan Benefits for Any Additional Care ................................................................. 5 

The EAP Provider ............................................................................................................... 5 

Scheduling Appointments with the EAP ............................................................................ 5 

Hours of Operation for the EAP ......................................................................................... 6 

Disability Benefits .............................................................................................................. 6 

Termination of Employment ............................................................................................... 6 

COBRA Coverage .............................................................................................................. 6 

Denied Claims and Appeal Procedure ................................................................................ 6 

Additional Information about the Appeals Process ............................................................ 9 

Your Rights ....................................................................................................................... 11


Newport News Operations Employee Assistance Plan for employees covered by United 


Workers International Union (United Steelworkers), Local 8888 Collective Bargaining 

Agreement effective October 27, 2008, through March 10, 2013, (EAP) and is intended 

as a guide to advise eligible individuals of their rights and obligations under the EAP. 

The EAP provides a full service program for employees and their eligible dependents. 

Questions concerning the EAP should be directed to ValueOptions at 1-855-225-0759. 

The masculine gender of words as used herein shall be deemed to include the feminine 

gender. 

The Employee Assistance Plan 

The Employee Assistance Plan (EAP) is an off-site Company-sponsored full-service plan 

that provides an assessment, counseling, and referral service and is a constructive 

mechanism for addressing employee's personal problems including: 

• Job-related issues 

• Emotional concerns 

• Substance abuse assessment (alcohol and drugs) 

• Family problems 

• Legal issues 

• Marital problems 

• Financial difficulties 

The EAP counselor will meet with the employee or eligible family member in private and 

will confidentially assess the problem through counseling. If ongoing treatment or other 

assistance is needed, the EAP staff will advise the participant how to get help, assist in 

making appointments and, in some instances, follow the course of the treatment. 

Benefit Commencement 

The EAP became effective on January 1, 2004. 


April 2011 

-3-

Eligible Participant 

All regular, full-time employees of the Company or its subsidiaries after three months of 

active employment and their eligible dependents as defined by the specific health care 

plan for which the employee is eligible to elect. 

Definition of a "Regular, Full-time Employee" 

A "regular, full-time employee" is defined to mean a regular full-time employee as 

defined by Company Policy. This does not include persons classified by the Company as 

independent contractors, or as leased or temporary employees. 

Participation 

There are three ways to enter the EAP: 1) Voluntary Self-Referral, 2) Supervisory and/or 

Medical Referral, Departmental or 3) Mandatory Referral. 

Voluntary Self-Referral * 

Any employee or eligible dependent may call toll-free the EAP line to get information or 

a referral to a counselor in their community. The telephone call and the appointment can 

be made without a doctor's referral. 

Supervisory and/or Medical Department Referral 

If a supervisor or a Newport News Operations Medical Department physician believes an 

employee has a need for the EAP, and if the employee consents, arrangements will be 

made through the Supervisor of Employee Relations to have the employee scheduled for 

an appointment with an EAP counselor. 

Mandatory Referral* 

Employees who undergo drug or alcohol testing and test positive may be referred to the 

EAP office at the discretion of the Company. Should the employee refuse to enter the 

EAP, he is subject to discharge. Confirmation of employee participation in the EAP will 

be communicated to the appropriate personnel in the Company. Employees determined 

by Company management to be disruptive or demonstrate other conditions which affect 

his or others' work, may also be referred to the EAP at the discretion of the Company. 

The EAP may refer the employee for ongoing treatment or for a more in-depth fitness for 

duty evaluation. The employee will not be allowed to return to work until cleared by the 

evaluating professional. 

* Subject to the provisions of the collective bargaining agreement. Should conflicts between this SPD and the collective 

bargaining agreement exist, the language of the collective bargaining agreement shall govern. Effective Feb. 6, 1995, 

one period of rehabilitation will be allowed per employee. 


April 2011 

-4-

How the EAP Works 

The EAP provides assessment, brief counseling, referral, support and follow up services 

by licensed clinicians. The toll-free EAP line is available 24 hours a day, 7 days a week. 

All Huntington Ingalls Industries, Inc. regular full time employees and their eligible 

dependents are eligible for counseling sessions at no cost to the employee. 

Confidentiality * : All contacts with the EAP are confidential except when necessary to 

determine compliance with Article 49 or other applicable provisions, of the collective 

bargaining agreement. Information is released only when an employee or dependent signs 

a Release of Information form allowing the EAP to provide information to a specified 

party. In order to ensure privacy, the counseling service is located off-site. 

Knowledge of Community Resources: The EAP counselor is familiar with available 

community resources and professional services and will assist the employee or eligible 

dependent in making choices about any necessary referrals. The counselor will help the 

employee or eligible dependents make the first contact with the most appropriate 

resource. 

Medical Plan Benefits for Any Additional Care 

Additional counseling or treatment may be covered by your health care plan. Refer to the 

Medical Plan Summary Plan Description for coverage. If you need ongoing treatment 

beyond the EAP you must obtain authorization by calling Anthem Mental Health at: 1- 

800-893-9626. The EAP counselor can assist you in obtaining this authorization. Failure 

to obtain authorization could mean you will be responsible for the entire costs. Some 

services are not covered by the Medical Plan, such as services for legal or financial 

problems. 

The EAP Provider 

The EAP provider, ValueOptions, is available by calling the toll-free number, 

1-855-225-0759. 

Scheduling Appointments with the EAP 

The employee must attend appointments on his own time. The number of appointments 

with the EAP counselor may vary depending on the individual and the problem. 

Appointments may be scheduled at a time and location that is convenient to the employee 

or the eligible dependent. ValueOptions attempts to schedule appointments far enough 

* Subject to the provisions of the collective bargaining agreement. Should conflicts between this SPD and the collective 

bargaining agreement exist, the language of the collective bargaining agreement shall govern. Effective Feb. 6, 1995, 

one period of rehabilitation will be allowed per employee. 


April 2011 

-5-

apart so that Newport News Operations employees do not meet in the reception or 

waiting area. 

Hours of Operation for the EAP 

Employees can contact ValueOptions 24 hours a day, 365 days a year at 

1-855-225-0759. 

Disability Benefits 

Under certain conditions, you may be eligible for Sickness and Accident disability 

payments. 

Employees should refer to their summary plan description entitled "Weekly Disability 

Insurance Plan" for information regarding disability income benefits. 

Termination of Employment 

Coverage under the EAP for you and your covered dependents ends on the same day that 

your termination of employment is effective or that you no longer meet the EAP's other 

eligibility requirements. However, if termination is due to layoff, coverage will cease the 

last day of the month following the month of layoff (or the date covered by another EAP 

plan, whichever is sooner). 

COBRA Coverage 

If your coverage ends, you and your eligible dependents may be eligible for continued 

coverage through a federal law known as “COBRA.” This is described in the section on 

COBRA in the Administrative Information section in this Benefits Handbook. 

Denied Claims and Appeal Procedure 

If your claim for benefits is denied (either in whole or in part), the claims administrator 

(ValueOptions) will send you a written explanation of why the claim was denied. In the 

case of an urgent claim, this can include oral notification, as long as you are provided 

with a written notice within three days. 

This explanation will contain the following information: 

• The specific reason for the denial 

• Specific references to plan provisions on which the denial is based 

• A description of additional material or information that you may need to revise the 

claim and an explanation of why such material or information is necessary 


April 2011 

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• A specific description of the EAP’s review procedures and applicable time limits, 

including a statement of your rights to bring a lawsuit under ERISA. 

Depending on the type of claim, the explanation will also contain the following 

information: 

• If the denial is based on an internal rule, guideline, or protocol, the denial will say so 

and state that you can obtain a copy of the guideline or protocol, free of charge upon 

request 

• If the denial is based on an exclusion for medical necessity or experimental treatment, 

the denial must explain the scientific or clinical judgment for determination, applying 

the terms of the EAP to the medical circumstances, or state that such an explanation 

will be provided upon request, free of charge 

• If the denial involves urgent care, you will be provided an explanation of the 

expedited review procedures applicable to urgent claims. 

If services under the EAP are denied and you feel they should be covered, you should 

follow the following appeal procedure. (For denied services under the medical plan, refer 

to the medical plan appeal procedure.) 

• Call the claims administrator and ask why your claim was denied. You may discover 

that a simple error was made. If so, you may be able to correct the problem right over 

the telephone. 

• If your claim is still denied, you or your authorized representative may request in 

writing a review of the denial within 180 days of a written denial of coverage 

notification. The request, containing facts supporting the claim for benefits and 

reasons why it should not have been denied, should be addressed to the claims 

administrator as follows: 

ValueOptions Appeals 

340 Golden Shore 

Long Beach, CA 90202 

• If your claim is denied once again, ask the claims administrator to submit your claim 

to the claims administrator’s level 1 appeals review committee. 

• If your claim is denied by the level 1 appeals review committee, ask the claims 

administrator to submit your claim to the claims appropriate level 2 appeals review 

committee. 


April 2011 

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Definitions: 

Urgent claims: Medical care is "urgent" if a longer time could seriously jeopardize the 

participant’s life, health, or ability to regain maximum function. Also, care may be urgent 

if, in a doctor’s opinion, it would subject the participant to severe pain if care or treatment 

were not provided. If you require care that is classified as being urgent, but do not submit 

enough information for the claims administrator to make a determination, the claims 

administrator will notify you within 24 hours. You have 48 hours after that time to supply 

any additional information. Until you supply this information, the time limits that apply 

for the review are suspended (or “tolled”). 

Concurrent care decisions: These are decisions involving an ongoing course of 

treatment over a period of time or a number of treatments. If you or your dependent is 

undergoing a course of treatment, or is nearing the end of a prescribed number of 

treatments, you may request extended treatment or benefits. If the course of treatment 

involves urgent care and you request at least 24 hours before the expiration of the 

authorized treatments, the claims administrator will respond to your claim within 24 

hours. If you reach the end of a pre-approved course of treatment before requesting 

additional benefits, the normal “pre-service” or “post-service” time limits will apply, as 

described below. 

Pre-service determinations: A “pre-service” determination requires the receipt of 

approval of those benefits in advance of obtaining the medical care. If you request a 

review for pre-service benefits, but do not submit enough information for the claims 

administrator to make a determination, the claims administrator will notify you within 15 

days. You have 45 days after that to supply any additional information. Until you supply 

this information, the time limits that apply to the claims administrator are tolled. 

Post-service claims: A “post-service” determination is made for benefits after you have 

already received care or treatment. A “post-service” determination does not require 

advance approval of benefits. 

In the case of pre-service determinations and urgent claims, if you fail to follow the 

specified procedure for filing your claim, the claims administrator will notify you of the 

failure and of the proper procedure. This notice will be provided to you no later than five 

days after your incorrectly filed claim is received (24 hours in the case of an urgent 

claim). The notice from the claims administrator may be an oral notice unless you 

specifically request written notice. 

Example #1: If you have an urgent situation, the claims administrator must respond to 

your initial request for benefits within 72 hours, and no extensions are permitted. If the 

claims administrator needs more information from you to make a determination, you will 

have 48 hours from the time you are notified to supply that information. The time period 

during which you are gathering that additional information does not count toward the 

time limits that apply to the claims administrator. 


April 2011 

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Type of Claim 

Time to Appeal from 

Date Claim is Denied 

Time for Decision on 

Appeal 

Urgent claims 180 days 72 hours None 

Pre-Service claims 180 days for each level 

of appeal 

Two levels of appeal: 

15 days from the 

receipt of the appeal 

for each level 

None 

Post-Service claims 

180 days for each level 

of appeal 



receipt of the appeal 

for each level 

Pre-Service Claims — There are two levels of appeal: 

Extensions for Claims 

Administrator 

None 

Level 1 appeal: You may file a level 1 appeal with the claims administrator within 180 

days if your initial claim for benefits is denied and you would like to appeal that denial. 

Your appeal must be considered within 15 days, with no extensions. 

Level 2 appeal: If your first appeal is denied by the claims administrator, you may file a 

level 2 appeal with the claims administrator within 180 days, and your appeal must be 

considered within an additional 15 days, with no extensions. 

Post-Service Claims — There are two levels of appeal: 

Level 1 appeal: You may file a level 1 appeal with the claims administrator within 180 

days if your initial claim for benefits is denied and you would like to appeal that denial. 

Your appeal must be considered within 30 days, with no extensions. 

Level 2 appeal: If your first appeal is denied by the claims administrator, you may file a 

level 2 appeal with the claims administrator within 180 days, and your appeal must be 

considered within an additional 30 days, with no extensions. 


In filing an appeal, you have the opportunity to: 

• Submit written comments, documents, records and other information relating to your 

claim for benefits 

• Have reasonable access to and review, upon request and free of charge, copies of all 

documents, records and other information relevant to your claim, including the name 

of any medical or vocational expert whose advice was obtained in connection with 

your initial claim 




April 2011 

-9-


administrator who is not the person who made the initial claim decision and who is not a 

subordinate of that person 

In making the decision on the appeal, the claims administrator will give no deference to 

the initial claim decision 






If benefits are still denied on appeal, the notice that you receive from the final review 

level (level 2 review) will provide: 

• The specific reasons for the denial 

• Reference to the plan provisions on which the decision was based 

• A statement that you may receive, upon request and free of charge, reasonable access 

to, and copies of all documents, records, and other information relevant to your claim 

• A statement describing any additional appeal procedures, and a statement of your 

rights to bring suit under ERISA (Employee Retirement Income Security Act of 

1974). 

Depending on the type of claim, the notice that you receive from the final review level 

will also contain the following information: 


and state that you can obtain a copy of the rule, etc., free of charge upon request 


the denial will explain the scientific or clinical judgment for determination, applying 

the terms of the EAP to the medical circumstances, or state that such an explanation 

will be provided upon request, free of charge. 






review panel. 

In deciding appeals, the claims administrator acts as the named fiduciary for purposes of 

deciding appeals and has discretionary authority to interpret the EAP and to make factual 

determinations as to whether you are entitled to benefits. The claims administrator’s 

disposition of the claim shall be final. 


April 2011 

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Throughout the review process, the employee or authorized representative may review 

pertinent documents at the Employee Benefits Office during regular business hours. 

Your Rights 

You have certain legal rights which are explained in the description of "ERISA" rights in 

the Administrative Information Section of this Employee Handbook. 


April 2011 

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OVERVIEW ....................................................................................................................... 1 

YOUR OPTIONS ............................................................................................................... 1 

YOUR CONTRIBUTIONS ................................................................................................ 2 

HEALTH CARE FLEXIBLE SPENDING ACCOUNT .................................................... 2 

Eligible Health Care FSA Expenses ................................................................................... 3 

Ineligible Health Care FSA Expenses................................................................................. 4 

Health Care FSA vs. Tax Deduction................................................................................... 6 

DEPENDENT DAY CARE FLEXIBLE SPENDING ACCOUNT ................................... 6 

Eligible Dependents ............................................................................................................ 6 

Eligible Dependent Day Care FSA Expenses ..................................................................... 7 

Ineligible Dependent Day Care Expenses........................................................................... 8 

CONTRIBUTION LIMITS IF YOU ARE MARRIED ..................................................... 9 

DEPENDENT DAY CARE FSA VS. TAX CREDIT........................................................ 9 

GENERAL INFORMATION ABOUT THE FLEXIBLE SPENDING ACCOUNTS .... 10 

See IRS Publications 502 and 503 for Details About Eligible Expenses ......................... 10 

The Reimbursement Process ............................................................................................. 10 

2½-Month “Grace Period” for Incurring Eligible Expenses ............................................. 11 

Health Care FSA Example ................................................................................................ 12 

Health Care FSA Reimbursements ................................................................................... 12 

Pharmacy-Only FSA Benefit Card ................................................................................... 13 

Dependent Day Care FSA Reimbursements ..................................................................... 14 

Reimbursement Checklist ................................................................................................. 15 

“Use It or Lose It Rule” and Other IRS Regulations ........................................................ 15 

How Your Other Benefits Are Affected ........................................................................... 16 

When Participation Ends................................................................................................... 17

This summary plan description ("SPD") describes the Huntington Ingalls Industries, Inc. 

Newport News Operations Flexible Spending Accounts for Employees Covered by United 



Agreement (the "Plan"), effective October 27, 2008, through March 10, 2013. 

Overview 

Flexible spending accounts (FSAs) let you pay certain health and dependent day care 

expenses with before-tax dollars. By setting aside amounts from your pay on a pre-tax 

basis, you reduce the amount of your income that is subject to most federal and state 

taxes, and may increase the amount of your take-home pay. 

Through payroll deductions, you can set aside pre-set dollars in the FSAs that can be used 

to reimburse you for eligible health care and dependent day care expenses. The pre-tax 

dollars come out of each paycheck and are credited to a special account. You submit 

eligible expenses to each account for reimbursement. 

Your Options 

With the flexible spending accounts (FSAs), you can: 

• Set aside $0 to $5,000 of before-tax dollars annually in the health care FSA for 

reimbursement of your and your dependent(s)’s eligible health care expenses 

• Set aside $0 to $5,000 of before-tax dollars annually in the dependent day care FSA 

for reimbursement of your eligible dependent day care expenses. If you earn more 

than $110,000 in 2011, your contribution to the dependent day care FSA will be 

limited to $3,500. (Note: this compensation limit may be adjusted periodically as 

required to pass IRS regulations.) 

You can enroll in one or both of the FSAs ⎯ or you can choose not to participate ⎯ 

when you are first hired and during annual enrollment. Your choice remains in effect for 

the entire benefit plan year, and you cannot make changes until the next annual 

enrollment, unless you experience a qualified life event. (See “Qualified Life Events” for 

details.) 

At the time of a qualified life event, you may have a negative balance in your health care 

FSA. A negative balance occurs when you contribute less money to your account than 

you receive in reimbursements. In this case, any changes you make to your contributions 

must allow you to repay the negative balance by the end of the benefit plan year. 


April 2011 

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Your Contributions 

If you choose to enroll in one or both of the flexible spending account (FSA) options, 

your contributions are deducted from your paychecks on a before-tax basis during each 

pay period throughout the benefit plan year (July 1 through June 30). The money is 

available for you to use on eligible expenses. 

You can contribute as little as $1 each week ($52 each year) to one or both FSAs. The 

most you can contribute is the smallest of the following: 

• $5,000 each year 

• Half your annual salary 

• Your annual taxable income if you earn less than $5,000. 

Additional limits may apply to the dependent day care FSA if you are married. See 

“Contribution Limits If You Are Married” for details. 

When you open an account in the middle of the benefit plan year, your maximum 

contribution is the annual maximum of $5,000 for the benefit plan year. For example, 

suppose you have a qualified life event effective February 1, and you enroll in the health 

care FSA. Your participation in the account will continue for five months (21 weeks), 

until June 30. You can elect to contribute from $52 to $5,000 for the remainder of the 

benefit plan year (21 weeks). The annual contribution amount you elect will be divided 

by the number of paychecks remaining and deducted accordingly. 

Health Care Flexible Spending Account 

You can use the health care flexible spending account (FSA) for health care expenses that 

are considered eligible medical expense deductions on your federal income tax return, but 

are not reimbursed by another health plan. For example, you can use the account for your 

out-of-pocket costs, including deductibles, coinsurance, and copayments. 

You can also use the account to reimburse you for eligible medical expenses even if you 

are not enrolled for medical, dental, or vision coverage. For example, even if you do not 

have vision coverage in a vision plan, you can submit your expenses for vision exams, 

eyeglasses, contact lenses, and vision correction laser surgery. 

Note: Your premium contributions for coverage under the Huntington Ingalls Anthem 

Keycare 150 Health Plan are not eligible for reimbursement through the health care 

FSA because your premium payments are already made on a before-tax basis. 

Eligible health care expenses can be for: 


April 2011 

-2-

• You 

• Your spouse 

• Your unmarried children (including stepchildren, adopted children, and foster 

children) 

• Your relatives* 

• Other dependents who live with you throughout the calendar year*. 

* If your children, dependents, or relatives depend on you for more than one-half of 

their financial support during the current calendar year, their expenses are eligible. 

If you are divorced or legally separated, expenses for your children who are 

considered your dependents for federal tax purposes are eligible. 

Eligible Health Care FSA Expenses 

The health care flexible spending account (FSA) reimburses you for these eligible 

expenses: 

• Medical and vision plan copayments, deductibles and coinsurance 

• Charges above the medical and vision plans’ usual, reasonable, and customary limits 

• Expenses that are partially covered by your medical, dental, or vision plan, such as 

the cost of: 

⎯ Alcoholism/substance abuse (chemical dependency) treatment (including meals 

and lodging provided by a treatment center) 

⎯ Birth control devices 

⎯ Chiropractic or physical therapy 

⎯ Dental bridges and dentures 

⎯ Eyeglasses or contact lenses (including contact lens solutions) 

⎯ Hearing aids and their batteries 

⎯ Infertility services 

⎯ Insulin 

⎯ Medical equipment, such as crutches or wheelchairs 

⎯ Mental health treatment 

⎯ Orthodontia 

⎯ Periodontal cleanings 

⎯ Prescription drug copayments and coinsurance 

⎯ Retin A (when medically necessary and not for cosmetic purposes) 

⎯ Speech therapy 

• Certain expenses that are not covered by your medical or dental plan (but can be 

reimbursed), such as the cost of: 

⎯ Home modifications to accommodate a disabled person (including disabilities 

caused by arthritis) 

⎯ Laser eye surgery, such as LASIK, radial keratotomy and penetrating keratoplasty 


April 2011 

-3-

⎯ Removal of lead-based paint to prevent your young child who has (or had) lead 

poisoning from eating paint 

⎯ Massage therapy 

⎯ Over-the-counter medications to treat injury or illness 

⎯ Smoking-cessation programs (does not include expenses for drugs that do not 

require a prescription, such as nicotine gum or patches) 

⎯ Sterilization reversal 

• Travel and lodging away from home for medical reasons; limitations may apply — 

see IRS Publication 502 for details (not all items listed in Publication 502 are eligible 

for reimbursement — for example, premiums for coverage in the medical, dental, and 

vision plan options) 

• Tuition and tutoring for a child with severe learning disabilities, including dyslexia 

• Transportation to and from your health care provider (including Alcoholics 

Anonymous [AA] meetings) 

• Vitamins by prescription 

• Weight-loss programs prescribed by a physician for a specific ailment 

• Nursing care for a dependent (such as your dependent elderly parents) if it is not 

custodial nursing home care 

• Other expenses that are considered eligible medical expenses by the IRS. These 

include the cost of many services and equipment for the disabled. For a complete list 

of eligible medical expenses, see IRS Publication 502. 

Ineligible Health Care FSA Expenses 

The health care flexible spending account (FSA) does not reimburse you for the 

following (even if your doctor recommends them): 

• Cosmetic treatment (unless the treatment corrects a deformity arising from or directly 

related to a congenital abnormality, a personal injury resulting from an accident or 

trauma, or a disfiguring disease); cosmetic treatment includes, but is not limited to, 

teeth bleaching, laser peels, chemical peels, hair transplants and treatment for male 

pattern baldness 

• Dance or swimming lessons 

• Domestic partner health care expenses 

• Drugs prescribed for cosmetic purposes (such as Rogaine, a drug prescribed for hairloss 

treatment) 


April 2011 

-4-

• Electrolysis 

• Expenses reimbursed through any health insurance policy or plan, such as your 

spouse’s health plan or Medicare 

• Expenses you or a family member incurred before the effective date of your health 

care FSA election or change of your health care FSA election 

• Expenses you or a family member incurs after the end of the benefit plan year 

(June 30) 

• Health club dues, YMCA dues, and related expenses 

• Household help 

• Liposuction 

• Marriage or family counseling 

• Maternity clothes, diaper service, and related expenses 

• Custodial nursing home care 

• Premiums for automobile insurance, including premiums to insure medical care for 

persons injured by or in your car 

• Premiums for life, disability or accidental death and dismemberment (AD&D) 

insurance 

• Premiums for medical, dental, and vision insurance, including COBRA premiums 

• Transportation to and from work (even if your condition requires special means of 

transportation) 

• Trips or vacations taken for relief of a condition, change in environment, 

improvement of morale, or general health purposes 

• Tuition for a child with disciplinary problems who is enrolled in a special school 

• Uniforms 

• Weight-loss programs (unless prescribed by a doctor as medically necessary for the 

treatment of a specific disease or condition) 


April 2011 

-5-

• Any other expenses considered not deductible on a federal income tax return as an 

allowable medical expense (see IRS Publication 969). 

Health Care FSA vs. Tax Deduction 

Even though the health care flexible spending account (FSA) reimbursements can reduce 

your taxable income, the federal income tax deduction might provide greater savings for 

some employees. To claim such a deduction, your health care expenses must exceed 

7.5% of your adjusted gross income. Most employees find that their eligible health care 

expenses do not reach that amount. However, you should consult with your tax advisor to 

determine which method is best for your personal situation. 

Dependent Day Care Flexible Spending Account 

The dependent day care flexible spending account (FSA) allows you to set aside pretax 

dollars to pay for eligible dependent day care expenses while you are working. If you are 

married, your spouse also must work (or actively search for work), unless he or she is: 

• A full-time student at least five months of the year, or 

• Mentally or physically disabled and unable to care for a dependent. 

If you are divorced or legally separated, you can use the dependent day care FSA if you 

have custody of your child for a longer period during the year than does your child’s 

other parent. In addition, you must provide more than half of your child’s financial 

support, and your child is claimed as a dependent on your federal income tax return. 

Eligible Dependents 

Dependent day care expenses that can be reimbursed through the dependent day care 

FSA include day care for: 

• Children under age 13 whom you claim as dependents on your federal income tax 

return 

• A spouse who is incapable of caring for him- or herself 

• Parents, grandparents, children age 13 or older, or other relatives or members of your 

household who: 

⎯ Are claimed as a dependent on your federal income tax return, 

⎯ Spend at least eight hours each day in your home, 

⎯ Receive more than half of their support from you, and 

⎯ Are physically or mentally incapable of caring for themselves. 


April 2011 

-6-

If your spouse is incapable of caring for him- or herself, the expenses you incur for his or 

her care must enable you to be gainfully employed, and your spouse must: 

• Have a physical or mental condition that does not allow him or her to take care of 

personal, hygienic, or nutritional needs, or 

• Require full-time attention for safety reasons. 

The fact that your spouse is unable to engage in substantial gainful activity or perform his 

or her normal functions may not necessarily qualify for eligible day care expenses for 

reimbursement under the plan. 

Eligible Dependent Day Care FSA Expenses 

The following expenses are eligible for reimbursement under the dependent day care 

flexible spending account (FSA): 

• The cost of day care provided in or out of your home (including Social Security taxes 

you pay on behalf of your provider) by an eligible babysitter 

• The cost of day care provided at a licensed day care center or kindergarten that cares 

for at least six people and complies with local regulations (but not services from a 

facility that charges no fee) 

• The cost of day care provided at a summer camp (but not tuition and other fees 

unrelated to day care) 

• The cost of day care provided at a private school (but not tuition and other fees 

unrelated to day care if the child is in kindergarten or above) 

• Any nonrefundable fees to secure your dependent’s place in a day care center 

• Any other expenses that would be considered eligible for a dependent care credit for 

federal income tax purposes. For a complete list of these expenses, see IRS 

Publication 503. 

Your day care provider can be a babysitter if his or her services enable you and your 

spouse to work. However, please note that your day care provider cannot be any of the 

following: 


• Your child’s other parent 

• Your child who is under age 19 at the end of the benefit plan year 

• A person whom you or your spouse claims as a dependent for income tax purposes. 


April 2011 

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Ineligible Dependent Day Care Expenses 

The following expenses are not eligible for reimbursement under the dependent day care 

flexible spending account (FSA): 

• Child support payments 

• Clothing, entertainment or food expenses 

• Day care expenses incurred during hours when you or your spouse is not working or 

works as a volunteer 

• Expenses you incur while you or your spouse is away from work because of vacation, 

illness or leave of absence 

• Expenses you or a family member incurred before the effective date of your 

dependent day care FSA election or change of your dependent day care FSA election 

• Expenses that are reimbursed by another plan, such as your spouse’s or a government 

plan 

• Expenses you incur before you enroll in the dependent day care FSA or after your 

participation ends 

• Expenses you incur during any time you cannot claim your dependent as an 

exemption on your federal income tax return 

• Expenses you incur after the end of the benefit plan year (June 30) 

• Finder’s fees for placement of an au pair or nanny 

• Full-time convalescent or nursing home expenses (except care for a mentally disabled 

child under age 13) 

• Overnight camp expenses 

• Transportation expenses for your caregiver or your dependent 

• Tuition, for the first grade or higher 

• Any other expenses considered not eligible for a dependent day care credit for federal 

income tax purposes (see IRS Publication 503). 


April 2011 

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Contribution Limits If You Are Married 

The table below indicates the maximum allowable tax-free reimbursement from a 

Dependent Care FSA, per IRS regulations. 

If this is your situation... 

You or your spouse earns less 

than $5,000 

You and your spouse file a joint 

income tax return and your 

spouse also participates in a 

dependent day care flexible 

spending account 

You and your spouse file separate 

income tax returns 

Your spouse is a full-time student 

for at least five months of the year 

or 

Your spouse is disabled 

Then your maximum annual contribution* is... 

The amount the lower-paid spouse earns, up to $5,000 

$5,000 for your spouse’s account and your account 

combined 

$2,500 under the Huntington Ingalls Industries, Inc. 

account 

$3,000 (or $250 for each month that your spouse is a 

student or is disabled) if you have one dependent 

$5,000 (or $500 for each month that your spouse is a 

student or is disabled) if you have two or more dependents 

Dependent Day Care FSA vs. Tax Credit 

Another way to reduce taxes with your dependent day care expenses is to claim the child 

care credit on your federal income tax return. 

Here is how the tax credit works: You can claim a 20% to 35% tax credit for child care 

expenses. The percentage that applies to you is based on your household income. If you 

have one dependent, the maximum expense that you can apply to the credit is $3,000 

each calendar year. That means your annual tax saving when you use the credit can be up 

to $1,050 (35% x $3,000 = $1,050). If you have two or more eligible dependents, you can 

claim up to $6,000 in expenses, and your credit can be a maximum of $2,100 (35% x 

$6,000 = $2,100). 

You have the option to use both the dependent day care FSA and the tax credit approach. 

However, the IRS does not allow you to claim a tax credit for any expenses already 

reimbursed under the FSA. In other words, you cannot “double deduct” and receive a tax 

saving twice for the same expense. 

Moreover, the amount of expenses that qualify for a tax credit are reduced — dollar for 

dollar — by the amount that you receive from the dependent day care FSA. That means if 

you have one dependent and you contribute $3,000 or more to the flexible spending 


April 2011 

-9-

account, you cannot also claim the dependent care tax credit. This rule applies even if 

you have additional unreimbursed expenses. 

Likewise, with two or more dependents, if you contribute the maximum amount ($5,000) 

to the FSA, you may claim a partial tax credit for up to $1,008 in expenses ($6,000 - 

$5,000 = $1,000). Of course, smaller FSA contributions allow you to claim a higher 

partial tax credit. 

The combination of FSA reimbursements and tax credits that provides the greatest tax 

saving for you depends on your household income, the number of your eligible 

dependents and your income-tax-filing status. 

In general, if you are married, you file a joint income tax return, and your household 

income is $25,000 or more before deductions, the flexible spending account can save you 

more in taxes than the federal child care tax credit. Consult with your tax advisor to 

determine the best option for your personal situation. 

General Information About The Flexible Spending Accounts 

See IRS Publications 502 and 503 for Details About Eligible Expenses 

IRS publications 502 (medical expenses) and 503 (dependent day care expenses) 

generally provide a list of expenses eligible for reimbursement through a flexible 

spending account (FSA). (Note: Not all items listed in Publication 502 are eligible for 

reimbursement — for example, premiums for coverage in the medical, dental, and vision 

plan options). The publications are available: 

• At your local IRS office 

• From the IRS by calling 1-800-829-3676 

• At www.irs.gov 

The Reimbursement Process 

When you incur an eligible expense during the benefit plan year, you can use the pretax 

dollars in your accounts to reimburse yourself. In addition, you can use the money in 

your FSA to reimburse yourself for eligible expenses incurred during the 2½-month 

“grace period” following the end of the benefit plan year (on June 30). Simply complete a 

flexible spending account (FSA) claim form, attach the proper documentation, and send it 

to the claims administrator ⎯ Benesyst, Inc. Send your completed claim forms and 

documentation substantiating the expense (for example, EOBs, cancelled checks, or 

invoices) to the address on the claim form. 

Claim forms are available by calling the Huntington Ingalls Benefits Center (HIBC) at 1- 

877-216-3222 and asking for a supply, or you can download forms from the Forms link at 

HII Benefits Connect. 


April 2011 

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Within several weeks of submitting a claim, you should receive your reimbursement 

check and a statement of your account balance. Reimbursement of expenses that are less 

than $20 is delayed until the end of each calendar quarter. 

Because your bills may arrive after you receive services, you can submit claims incurred 

during the benefit plan year until December 31 — after the benefit plan year and “grace 

period” ends. 

Look for quarterly statements that show your contributions to the FSAs, your 

reimbursements, and your account balances. You also can call the claims administrator at 

the number listed on your claim form to find out your current account balance or the 

status of a claim. 

Note: The claims administrator reviews your claims. However, you are responsible for 

ensuring that the expenses are valid IRS deductions. The claims administrator and 

Huntington Ingalls Industries, Inc. are not responsible for verifying your claims. 

The following sections provide additional details about reimbursements specific to each 

account. 

2½-Month “Grace Period” for Incurring Eligible Expenses 

Participants enrolled in a flexible spending account (FSA) can incur eligible expenses for 

a 14½-month period ⎯ the regular 12-month benefit plan year (July 1 − June 30) plus the 

2½-month “grace period” (through September 15 following the end of the benefit plan 

year). The “grace period” applies only to claims that you complete and submit manually 

⎯ it does not apply to expenses that are automatically reimbursed (see “Automatic 

Reimbursement”). Any expenses incurred during the “grace period” that are eligible for 

automatic reimbursement will be paid from the current benefit plan year’s FSA only. 

Manual claims for eligible expenses incurred between July 1 and September 15 following 

the end of the benefit plan year will be reimbursed first from the prior year’s FSA, then 

from the current benefit plan year’s FSA. 

Keep in mind that the IRS limits the before-tax reimbursements you can receive in a 

single calendar year from the dependent care FSA to $5,000. If you are married, this limit 

applies to any reimbursements receive by you and your spouse. If you are reimbursed for 

more than $5,000 in a calendar year, you will be responsible for paying taxes on the 

excess amount. 

Note: Your before-tax contributions will continue to be deducted from your paycheck 

only during the 12-month benefit plan year (July 1 ⎯ June 30); the 2½-month “grace 

period” has no impact on when or how you contribute to the FSA(s). 


April 2011 

-11-

Health Care FSA Example 

Assume the following: 

• During the July 1, 2009 − June 30, 2010 benefit plan year, you contributed a total of 

$1,000 to the Health Care FSA 

• For the July 1, 2010 − June 30, 2011 benefit plan year, you are: 

⎯ Contributing a total of $800 to the Health Care FSA 

⎯ Enrolled in the Anthem of Virginia medical plan option 

• As of June 30, 2010, you have $100 left in your account (after submitting all claims 

for reimbursement) for the 2009-2010 benefit plan year. 

Here’s what will happen as you incur eligible health care expenses. Let’s say you have an 

out-of-pocket expense of $200 from a hospital stay in July 2010. This expense occurs 

during the 2½-month “grace period.” 

You can submit a claim for your hospital stay prior to December 31, 2010, and be 

reimbursed as follows: 

• $100 from your 2009-2010 FSA (which brings your account balance to $0) 

• $100 from your 2010-2011 FSA. 

For a list of eligible Health Care FSA expenses, access HII Benefits Connect. 

Health Care FSA Reimbursements 

When you submit your completed FSA claim form to Benesyst (the FSA claims 

administrator), attach an itemized bill, a receipt, or an explanation of benefits (EOB) for 

your expenses. (If you need copies of your EOBs, contact your medical plan claims 

administrator.) 

You can submit health care expenses and receive reimbursement for up to the 

total amount you elected to contribute for the entire benefit plan year, less any 

reimbursements that already were paid. Your future contributions will be credited 

to your account. See the example below. 

If you or your dependents are enrolled in more than one health plan (such as your plan 

and your spouse’s plan or Medicare), you first have to submit your expenses to those 

plans. After you receive reimbursement from all your health plans, you can submit the 

balance of your eligible expenses for reimbursement under the health care FSA. Please 

include the EOB from both plans with your claim. (You can submit expenses for your 

eligible dependents even if they are not covered under the health care plans.) 


April 2011 

-12-

Here are two examples of how the health care FSA reimbursement process works: 

Example 1 Example 2 

Your selected annual contribution $600 $600 

Your contributions as of August $100 $100 

Your submitted claim in August $600 $800 

Your reimbursement $600 $600 

Your account balance ($500) ($500) 

• In example 1, you are reimbursed the full amount of your $600 claim in August, even 

though you contributed only $100 to your account so far. Your contributions during 

the rest of the benefit plan year will be credited to make up the $500 negative balance 

in your account. 

• In example 2, you submit a claim for $800, but receive reimbursement for only $600 

— the total contribution you selected for the year. 

Pharmacy-Only FSA Benefit Card 

Effective July 1, 2009, all Health Care FSA participants will automatically receive a set 

of two Pharmacy-Only Benefit Cards, which must be activated before use. This debit 

card makes purchasing prescription and over-the-counter drugs easy. Go to any 

participating merchant and pay with your card ⎯ no cash or follow-up documentation 

necessary (as long as there is a sufficient balance in your Health Care FSA account). The 

debit card can only be used for eligible pharmacy benefits ⎯ medical expenses such as 

copayments, deductibles, coinsurance, vision, and Dependent Day Care expenses are not 

eligible. 

Participating merchants include most major pharmacy chains. For a complete list of 

participating merchants, go to HII Benefits Connect at http://hiibenefits.com, click on 

Provider Links and choose Benesyst FSA Claims. Once you arrive at Benesyst’s Web 

site, go to the Quick Resources section at the bottom of the page and click on 

“Participating Paperless Merchants.” You can then click on any of the merchants for a 

link to their “store locator” to find the closest store to you. 

Using the Card is easy. Just make your purchase ⎯ mixing eligible and ineligible items is 

fine. The important part is to present your Pharmacy-Only Benefit Card first and then the 

merchant system will sort what is eligible for FSA reimbursement from the ineligible 

items, charge the eligible items to your Card (as long as there’s a sufficient balance), and 

ask you for an alternate form of payment for the ineligible items. 

Please note: Eligible pharmacy claims must be paid for using the Pharmacy-Only FSA 

Benefit Card. If you choose a different method of payment for eligible pharmacy 


April 2011 

-13-

enefits, you will have to manually submit your claim(s) for reimbursement ⎯ your 

claim(s) will not automatically be submitted for you. 

Dependent Day Care FSA Reimbursements 

To receive reimbursement of your eligible dependent day care expenses, submit your 

completed FSA claim form to Benesyst, the claims administrator. Include a bill or 

cancelled check that shows your day care provider’s Social Security or tax identification 

number. (According to IRS rules, your expenses will not be reimbursed if you do not 

provide this number.) 

For reimbursement of the cost of day care provided by your child’s school, day care must 

be shown as a separate item on the tuition bill. Tuition for children in first grade or higher 

is not an eligible expense. 

You can be reimbursed for eligible expenses up to the balance in your account at the time 

your claim is processed. If you have enough money in your account, you will be 

reimbursed in full. If you do not have enough money in your account to pay your entire 

claim, you will receive an initial reimbursement equal to your current account balance. 

The remainder of your claim will be paid automatically after you make additional payroll 

contributions to your account. Depending on how much you contribute each week, you 

may receive one or several reimbursement checks. 

For example, let’s assume you submit a claim for $400 and receive a reimbursement 

check for $384 (the amount in your account in August). You will be reimbursed the 

remaining $16 after you make additional payroll contributions to your account. 

Example 

Your selected annual contribution $5,000 

Your contributions as of August $384 

Your submitted claim in August $400 

Your reimbursement $384 

Your account balance $0 

Keep in mind that the IRS limits the before-tax reimbursements you can receive in a 

single calendar year from the dependent care FSA to $5,000. (If you are married, this 

limit applies to any reimbursements receive by you and your spouse.) If you are 

reimbursed for more than $5,000 in a calendar year, you will be responsible for paying 

taxes on the excess amount. 


April 2011 

-14-

Reimbursement Checklist 

Each time you submit your health or dependent day care claims, use this checklist to 

ensure your paperwork is complete and to speed up reimbursement of your eligible 

expenses. 

• I already incurred my eligible expenses. 

• I incurred my eligible expenses after I began my participation in the plan. 

• I incurred my expenses before I ended my participation in the plan. 

• I included a receipt from my health care or dependent day care provider that shows 

the: 

⎯ Year, month, and day services were provided 

⎯ Type of services provided (i.e., dependent day care or type of health care) 

⎯ Name of the service provider 

⎯ Cost of the services 

⎯ Dependent day care provider’s tax identification number or Social Security 

number. 

• I was not reimbursed for these expenses under a health plan or another flexible 

spending account. 

• If I received partial reimbursement of these expenses under a health plan, I enclosed a 

copy of the explanation of benefits (EOB). 

• I fully completed the claim form, signed it and dated it. 

“Use It or Lose It Rule” and Other IRS Regulations 

Before you enroll in a flexible spending account (FSA), be sure to carefully estimate your 

health care and dependent day care expenses for the year. In exchange for the tax savings 

you receive, the Internal Revenue Service (IRS) places restrictions on the amount you can 

contribute. 

For example, under the IRS “use-it-or-lose-it” rule, you lose any funds in your account 

that you do not use by the end of the ”grace period” on September 15 following the end 

of the benefit plan year. That means that you will not receive a refund, and you will not 

be able to roll over any remaining account balances to the next year. These amounts will 

be forfeited. 


• You contributed $1,000 to the health care FSA, but you submitted only $800 in 

eligible expenses. You forfeit the $200 balance in your account. 


April 2011 

-15-

• In addition, you contributed $2,000 to the dependent day care FSA and submitted 

$2,200 in eligible expenses. You would be reimbursed the full $2,000 you contributed 

for the year. But, you could not use the $200 you forfeited in the health care spending 

account to cover the remaining $200 of dependent day care expenses. 

Health Care FSA Dependent Day Care FSA 

Your annual contributions $1,000 $2,000 

Your total eligible expenses $800 $2,200 

Your reimbursement $800 $2,000 

Amount you forfeit $200 $0 

In addition, IRS rules require that you: 

• Cannot transfer money from one FSA to another 

• Cannot change the set amounts you choose to contribute during the benefit plan year, 

unless you have a qualified life event 

• Will lose your unused account balances if you leave Huntington Ingalls Industries, 

Inc. during the plan year for any reason (unless you elect to continue your health care 

FSA through COBRA — see “COBRA” for details); however, you can submit a 

claim for reimbursement of expenses that you incur before leaving Huntington Ingalls 

Industries, Inc. 

• Cannot file for an income tax deduction or tax credit for expenses reimbursed through 

the FSAs. 

Also, you cannot use amounts in one FSA to cover expenses of the other FSA. 

How Your Other Benefits Are Affected 

Your flexible spending account (FSA) contributions will not affect your other Huntington 

Ingalls Industries, Inc. benefits that are based on your pay. These other benefits, such as 

life insurance, disability, and retirement benefits, will continue to be based on your full 

pay before any FSA contributions are distributed. 

However, your contributions may affect your Social Security benefits. Your Social 

Security benefits are based on your average annual taxable income — up to the Social 

Security wage base — during your entire career. Because your FSA contributions lower 

your taxable income, your Social Security benefits at retirement or disability may be 

slightly less if: 

• You earn less than the Social Security wage base for the current year ($106,800 in 

2009), or 


April 2011 

-16-

• Your before-tax contributions reduce your taxable income below the Social Security 

wage base. 

If you earn more than the Social Security wage base, your Social Security benefits are not 

affected. For most employees, the current tax savings outweigh any possible reduction in 

future Social Security benefits or other government-related benefits. 

When Participation Ends 

Your participation in the flexible spending accounts (FSAs) ends and your contributions 

stop when the first of these events occurs: 

• You or your dependents no longer are eligible under the plan 

• The plan terminates. 

For information about how your enrollment may be affected by certain life events, such 

as a leave of absence, refer to “What Happens to Your Benefits in Special Situations.” 

Eligible expenses that you incur before your participation ends will be reimbursed, if you 

submit a reimbursement claim by December 31 ⎯ after the benefit plan year ends. 

Expenses that you incur after your participation ends are not eligible for reimbursement, 

and you forfeit any amounts left in your accounts. However, under certain circumstances, 

when your coverage otherwise would end, you may continue participating in the health 

care FSA by making after-tax contributions through COBRA. When you elect COBRA, 

you can submit expenses for reimbursement and use the balance in your health care FSA 

during the benefit plan year. 

After the benefit plan year ends, there is no tax advantage to continuing your health care 

FSA. So, you may want to discontinue COBRA for the FSA at this time. See “General 

Plan Administration: COBRA” for details. 


April 2011 

-17-





For Union Eligible Employees 






Introduction ..................................................................................................................... 1 

Savings (401(k)) Plan Highlights ..................................................................................... 1 

Assistance with Your Questions ...................................................................................... 2 

Eligibility and Enrollment ................................................................................................. 2 

Employee Contributions .................................................................................................. 4 

Company Matching Contributions.................................................................................... 6 

Investment Options ......................................................................................................... 7 

Loan Information ........................................................................................................... 13 

Termination of Participation ........................................................................................... 14 

Distribution of Benefits .................................................................................................. 14 

Appeal Procedure ......................................................................................................... 17 

Your Rights ................................................................................................................... 20 

Information Provided Pursuant to Federal Securities Laws............................................ 20

Introduction 

In accordance with the disclosure requirement of ERISA, this is the summary plan 

description (SPD) for the Huntington Ingalls Industries, Inc. Newport News Operations 

Savings (401(k)) Plan for Union Eligible Employees (the “Plan”). To be eligible to 

participate, you must be actively employed under the Collective Bargaining Agreement 

(CBA) of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied 

Industrial and Service Workers International Union (United Steelworkers), Local 8888, 

effective October 27, 2008 through March 10, 2013. 

Although this booklet describes many of the principal features of the Plan, it is 

nevertheless only a summary and not an official Plan Document. The official Plan 

Document and Trust Agreement govern the operation of the Plan and payment of all 

benefits. In the event of any ambiguity in or omission from this SPD, or any conflict 

between this SPD and the official Plan Document and Trust Agreement, the official Plan 

text and Trust Agreement govern. The actual terms of the Plan are contained in the Plan 

documents, which are available from the Huntington Ingalls Benefits Center (HIBC) for a 

fee. Requests should be directed to: 

Huntington Ingalls Benefits Center 

P. O. Box 563912 

Charlotte, NC 28256-3912 

1-877-216-3222 

Subject to the terms of the collective bargaining agreement, the Company reserves the 

right to suspend, reduce, or discontinue contributions under the Plan. The Parent 

Company also may amend, suspend or terminate the Plan at any time by written 

resolution, subject to the provisions of the Collective Bargaining Agreement. When Plan 

amendments are made that materially affect benefits, a summary of the changes will be 

communicated to affected Plan participants. If the Plan is terminated, Plan benefits will 

immediately become vested for affected participants. 

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING 

SECURITIES THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT 

OF 1933, FOR ISSUANCE UNDER THE PLAN. 

The Company is subject to the informational requirements of the Securities Exchange 

Act of 1934 and, in accordance therewith, files reports and other information with the 

Securities and Exchange Commission (SEC). Please refer to the section in this SPD 

entitled, “Information Provided Pursuant to Federal Securities Laws,” for more 

information on the Company’s information requirements. 

Savings (401(k)) Plan Highlights 

The Plan is designed to help eligible employees save and invest for retirement. If eligible, 

you may contribute a percentage of your straight-time wages each pay period, on a 

before-tax basis, to the Plan. As of June 7, 2004, the Company makes matching 


April 2011 

1

contributions to your savings plan account to help you save for retirement. Amounts 

contributed by you and the Company are invested, at your direction, in one or more 

investment funds. Neither the contributions nor investment earnings are subject to income 

tax until distributed. (The Social Security and Medicare tax, however, applies at the time 

of contribution.) This tax deferral enables you to save more now and to reinvest all 

investment earnings so that savings may grow faster (see Q&As 6 and 7). Both employee 

contributions and earnings are at all times 100% vested and non-forfeitable. Company 

matching contributions and earnings are vested after two years of service. 

When you retire, die, become disabled or otherwise terminate your employment, the full 

value of your account is payable to you or to your beneficiary. While you are employed, 

withdrawals are only available upon reaching age 59½, although you may borrow from 

the Plan, using your account balance as security. 

Assistance with Your Questions 

If you have any questions about the Plan, you should call the Retirement Service Center 

at (800) 377-9188 between the hours of 7:00 a.m. and 11:00 p.m. Eastern time Monday 

through Friday. If you have any questions about your rights under ERISA or about this 

statement outlining your rights, or if you need assistance in obtaining documentation 

from the Plan Administrator, you should contact the nearest regional office of the 

Employee Benefits Security Administration, U.S. Department of Labor, listed in your 

telephone directory. You also may contact the Division of Technical Assistance and 

Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 

Constitution Avenue, N.W., Washington, DC 20210. You may also obtain certain 

publications about your rights and responsibilities under ERISA by calling the 

publications hotline of the Employee Benefits Security Administration at (866) 444-3272. 

Eligibility and Enrollment 

1. When am I eligible to participate in the Savings (401(k)) Plan 

You are eligible to participate in the Plan following the date on which you meet 

both of the following requirements: 

• You are an active employee covered by a collective bargaining agreement 

that provides for participation in the Plan. 

• You have met the minimum service requirement described under Q&A 2. 

2. When will I meet the minimum service requirement 

Generally, you will meet the minimum service requirement by completing 90 days 

of continuous service with the Company while you are in the bargaining unit. 

In addition, you will satisfy the minimum service requirement if you complete 1,000 

hours of service for the Company (or an affiliated company) within any one-year 

period that begins on your first day of work with the Company (or an affiliated 

company), or an anniversary of that date. Hours of service for this purpose include 


April 2011 

2

hours you are paid for working and certain non-working hours for which you are 

paid (for example, vacation time counts, but time for which you are paid under 

Workers’ Compensation does not). 

3. How do I enroll in the Plan 

You may enroll in the Plan 24 hours a day by logging onto 

www.wellsfargo.com/401k or by calling the Retirement Service Center at (800) 377- 

9188 and using the automated voice response system. Retirement Service Center 

representatives are also available 7:00 a.m. – 11:00 p.m. Eastern time, Monday 

through Friday, to assist you with enrollment. 

You will select a straight-time wage contribution percentage and designate an 

investment allocation from the choices offered in the enrollment package. Your 

contributions will be sent to your Plan account. Participation in the Plan is 

voluntary. 

4. When will my contributions begin 

Following enrollment, your contributions will begin as soon as administratively 

feasible, but usually within two weeks. 

5. What happens if I terminate employment, or go on leave, and then return to 

work 

If you terminate employment and later return to work, generally the 90-day service 

requirement must be satisfied again, beginning on the date you return to work, 

before you can enroll in the Plan. However, you qualify for an exception if you met 

this requirement before you left and (a) you were on an approved leave of absence, 

(b) you were reemployed within 12 months of the date you last performed an hour 

of service for the Company or an affiliated company or (c) had joined the Plan and 

made contributions prior to your termination of employment. If you qualify for this 

exception and you are otherwise eligible (see Q&A 1 and 29), you may join (or 

rejoin) the Plan as of the first day of any payroll period following your 

reemployment. 

Because Company matching contributions under the Plan are subject to a two-year 

vesting schedule, you must be employed for two years before you are 100% vested 

in your Company matching contributions. If you terminate employment with the 

Company before earning two years of vesting service, you receive no company 

matching contributions under the Plan. 

The following type of absence may not cause you to incur a break in service: 

Family and Medical Leave Act (FMLA) Leave of Absence. To keep from 

incurring a break in service, you can receive credit for up to 501 hours if you are on 

an approved FMLA leave of absence. Your hours of service for this purpose are 

equal to the amount you would have received if you continued working. If that 

number cannot be determined, you receive eight hours for each day you are absent, 

up to a maximum of 501 hours, but you do not earn vesting service, credited service, 

or early retirement service during this period. 


April 2011 

3

Hours for this purpose are usually credited during the calendar year in which your 

FMLA begins. However, if you do not need the hours to prevent a break in service 

during that year, the hours are credited toward the following calendar year. 


• You work 1,805 hours in 2008, then you go on family leave 

• You are out on family leave for 12 weeks, from December 2008 through 

March 2009. 

Because you worked more than 501 hours in 2008, you do not incur a break in 

service. When you return to work in March, you are credited with 480 hours (8 

hours times 5 days times 12 weeks) toward the 501 hours needed to avoid a break in 

service in 2009. However, the 480 hours are not used to calculate vesting, credited, 

or early retirement service and are used only to avoid a break in service. 

Employee Contributions 

6. What is the advantage to me of making contributions to the Plan 

The Plan’s special advantages are that it allows you to save with before-tax dollars 

and provides you with matching contributions from the Company to help you save 

even more. When it comes to saving, the distinction between before-tax and aftertax 

dollars is an important one. After-tax dollars are what you “take home” after all 

federal, state, and local taxes are deducted from your pay. When you save at your 

local bank, you are using after-tax dollars because you are saving with money that 

already has been taxed. 

Before-tax dollars are your gross pay before federal income, state, and local taxes 

are deducted. When you save with before-tax dollars, the Company sends part of 

your pay, in the form of wage reduction contributions, directly to the Plan. Your 

before-tax contributions, along with any company matching contributions, and 

earnings on your investments, are free from federal income taxes and withholding as 

long as they remain in the Plan. (Although any life insurance or disability benefits 

you may have through the Company continue to be based on your wages before the 

contribution, your federal income taxes are based on your wages after deducting the 

contributions.) Saving through the Plan is like taking a tax deduction for the amount 

you save. 

To look at it another way, you only need to earn $1,000 to save $1,000 on a beforetax 

basis. On an after-tax basis, however, you need to earn $1,389 to save $1,000 — 

assuming that you are in the 28% tax bracket. 

Saving through the Plan offers a very attractive opportunity. It allows you to save 

the same amount of money you may already be saving elsewhere, and increase your 

spendable income at the same time. Alternatively, you can increase the amount you 

are saving with no reduction of your spendable income. This example illustrates 

how it works: 

Assume you earn $35,000 a year and save 6% or $2,100. Here is the difference 


April 2011 

4

savings on a before-tax basis can make: 

After-Tax Savings 

outside the Savings 

Plan 


April 2011 

5 

Before-Tax Savings 

through the Savings Plan 

Gross pay $35,000 $35,000 

Before-tax savings - 

W-2 (taxable) pay 

Approximate federal 

income tax* 

Approximate Social 

Security tax 

- 2,100 

$35,000 $32,900 

- 1,960 - 1,645 

-2,678 -2,678 

After tax-savings - 2,100 

- 

Net pay $28,263 $28,578 

Approximate yearly 

increase in spendable 

earnings 

$ 315 

* Uses federal income tax tables for 2006, assuming you are married, file jointly and use 

the standard deduction. In most cases, state and local taxes may also be reduced, which 

means your spendable earnings would increase even more. 

7. Are there other tax advantages of saving through the Plan 

Yes. As described above, your contributions are not subject to federal income tax 

when they are paid over to the Plan. Another advantage of the Plan is that you pay 

no federal income tax on your investment earnings (the money that your wage 

reduction contributions earn) while those earnings remain in your Plan account. 

8. How is the amount I contribute determined 

When you enroll in the Plan, you will indicate the before-tax percentage of your 

straight time wages that you want to contribute; this lowers your taxable income and 

your current income taxes. The percentage must be a whole number not less than 

1% nor more than 30%. 

9. May I change the amount of my contributions after I enroll 

Yes. You may change your contribution percentage at any time by contacting 

Retirement Service Center at (800) 377-9188 or logging onto 

www.wellsfargo.com/401k. 

10. Is there a limit on the amount that I can contribute 

Yes. Federal tax law limits the amount you may save under this Plan in several 

ways:

• There is a total dollar limit on the amount you may contribute in any 

calendar year. In 2009, the limit is $16,500. If you are age 50 and over, you 

may be able to make additional catch-up contributions of $5,500 if you 

contribute the maximum $16,500, for a total of $22,000 to your Plan 

account. This amount is subject to change from year to year. 

• The amount you can save under this Plan may be reduced because of 

contributions made by you, or the Company, under other tax-qualified plans. 

There is a limit on contributions and benefits under tax-qualified retirement 

plans which, in 2009, is 100% of your annual pay or $49,000, whichever is 

less (including before-tax and Company matching contributions) for the 

year. You will be notified if your contributions must be reduced because of 

this limit. 

• Your contributions may be subject to additional limitations if you are a 

highly compensated employee (as defined by the Plan). If you fall into this 

category, you will be notified of any contribution limitation. 

11. What happens to the money I contribute 

Your contributions will be forwarded to the Plan Trustee weekly and will be 

invested in the available investment funds, according to your directions (See Q&As 

15 and 16). The Plan Trustee will establish an individual participant account for you 

in which your contributions, and any income, gains or losses from their investment, 

will be recorded. The Plan is designed to comply with Section 404(c) of ERISA. 

This means that neither the Company nor any employee of the Company can offer 

you any investment advice and that neither the Plan Trustee nor any other Plan 

fiduciary will have any liability for losses which are the direct and necessary result 

of your investment instructions. 

Company Matching Contributions 

12. Does the Company make contributions to my savings plan account 

Yes. As of June 7, 2004, the Company makes contributions to your account that are 

based on the percentage of eligible compensation that you elect to contribute to the 

Savings Plan each pay period. 

13. How much does the Company contribute to my savings plan account 

As of June 7, 2004, the Company will match 100% of your first 2% of before-tax 

contributions. As of July 11, 2005, the Company will match an additional 50% of 

the next 2% that you contribute to the Plan. As of September 24, 2007, the 

Company will match an additional 25% of the next 4% of your contributions to the 

Plan. 

The following chart describes how the Company matching contribution works, 

based on how much you contribute. 


April 2011 

6

Effective 

Date 

June 7, 

2004 

July 11, 

2005 

September 

24, 2007 

Your 

Contribution 

As a Percentage of 

Your Contribution 

Company Matching 

Contribution on the Dollar 

As a 

Percentage of 

Your Eligible 

Compensation 

1.0% 100% $1 for $1 1.00% 

2.0% 100% $1 for $1 2.00% 

1.0% 100% $1 for $1 1.00% 

2.0% 100% $1 for $1 2.00% 

3.0% 

4.0% 

100% on the first 2% + 

50% on the next 1% 



$1 for $1 on the first 2% and 

$.50 on the $1 for the next 1% 



2.50% 

3.00% 

1.0% 100% $1 for $1 1.00% 

2.0% 100% $1 for $1 2.00% 

3.0% 

4.0% 

5.0% 

6.0% 

7.0% 

8.0% 






50% on the next 2% + 



























2.50% 

3.00% 

3.25% 

3.50% 

3.75% 

4.00% 

Investment Options 

14. What investment options do I have 

The 401(k) Plan currently offers 12 investment options. You may allocate your 

contributions and the Company matching contributions among the available 

investment funds in multiples of 1%. The Company decides which investment funds 

to make available, and these may change from time to time. 


April 2011 

7

You have the right to direct the investment of your account in any of the investment 

choices explained in the Plan’s enrollment book, the Plan website at 

www.wellsfargo.com/401k or by calling the Retirement Service Center at 1-800- 

377-9188. 

The Plan includes a Qualified Default Investment Alternative (“QDIA”). Under the 

QDIA provisions, the Employer will automatically invest your account balance, for 

which no election is made, in the QDIA that has been selected by your plan 

sponsor/plan fiduciary ⎯ the Van Kampen Equity and Income Fund. 

Below are descriptions of the 12 different professionally managed mutual 

funds/collective funds available as of July 30, 2010. These descriptions were based 

on current prospectuses. Prospectuses can be changed by the fund management 

periodically. Be sure to read prospectuses for the latest descriptions. Each 

investment fund option offers its own degree of potential risk and return. The 

specific funds available, from lowest to highest potential risk and return, are the: 

• Wells Fargo Advantage Treasury Plus Money Market Account (PISXX) 

⎯ The fund seeks current income while preserving capital through liquidity. 

The fund invests exclusively in high-quality, short-term money market 

instruments that consist of U.S. Treasury obligations and repurchase 

agreements collateralized by U.S. Treasury obligations. 

• Wells Fargo Advantage Government Securities Fund Admin (WGSDX) 

⎯ The fund seeks current income. 

• Fidelity U.S. Bond Index Fund (FBIDX) ⎯ This investment seeks to 

provide investment results that correspond to the total return of the bonds in 

the Barcap U.S. Aggregate Bond Index. It uses statistical sampling 

techniques based on duration (a measure of interest rate sensitivity), 

maturity, security structure and credit quality. 

• Wells Fargo Enhanced Stock Market Fund (ESMKTG) ⎯ The Enhanced 

Stock Market Fund seeks to provide a total rate of return equal to or 

exceeding that of the S&P 500 market index. 

• Dodge & Cox Stock Fund (DODGX) ⎯ This fund seeks long-term growth 

of principal and income; current income is a secondary consideration. This 

fund invests primarily in a broadly diversified portfolio of common stocks. 

In selecting investments, the fund invests in companies that, in Dodge & 

Cox’s opinion, appear to be temporarily undervalued by the stock market 

but have favorable outlook for long-term growth. 

• Van Kampen Equity and Income Fund (ACETX) ⎯ This fund seeks 

current income; growth is a secondary consideration. The fund invests 

primarily in income-producing equity instruments (including common 

stocks, preferred stocks, and convertible securities) and investment-grade 

quality debt securities. It invests at least 65% of total assets in incomeproducing 

equity securities. The fund may invest up to 25% of total assets in 


April 2011 

8

securities of foreign issuers. It may invest up to 15% of total assets in real 

estate investment trusts. The fund may also purchase and sell certain 

derivative instruments to facilitate portfolio management and to mitigate 

risk. 

• Van Kampen Capital Growth Fund (ACPDX) ⎯ This fund seeks capital 

growth. The fund invests primarily in a portfolio of growth-orientated 

companies. It may invest up to 25% of total assets in foreign companies. 

The fund may purchase and sell certain derivative instruments, such as 

options, future contracts, options on futures contracts and stock index 

options and futures contracts. 

• Evergreen Omega Fund (EOMYX) ⎯ The fund seeks long-term capital 

growth. The fund invests primarily, and under normal conditions 

substantially all of its assets, in common stocks of U.S. companies of any 

market capitalization. 

• Perkins Mid Cap Value (JMIVX) ⎯ The fund seeks capital appreciation. 

The fund primarily invests in the common stocks of mid-sized companies 

whose stock prices the portfolio managers believe to be undervalued. It 

normally invests at least 80% of assets in equity securities of companies 

whose market capitalization falls, at the time of purchase, within the 12- 

month average of the capitalization range of the Russell Midcap Value 

index. The fund may invest in foreign equity and debt securities, which may 

include investments in emerging markets. It can also invest in derivatives. 

• American Funds EuroPacific Growth Fund (RERFX) ⎯ This fund 

invests at least 80% of net assets in securities of issuers in Europe and the 

Pacific Basin that the investment adviser believes have the potential for 

growth. Growth stocks are stocks that the investment adviser believes have 

the potential for above-average capital appreciation. 

• Morgan Stanley InstitutionalU.S. Small Cap Value Fund (MCVAX) ⎯ 

This fund seeks above-average total return over a market cycle of three to 

five years. The fund normally invests at least 80% of assets in common 

stocks of small cap companies traded on a U.S. securities exchange. The 

fund invests up to 10% of assets in REITs. The fund invests up to 10% of 

assets in securities of foreign issuers, including issuers located in emerging 

markets or developing countries. The securities may be denominated in U.S. 

dollars or in currencies other than U.S. dollars. 

• The Huntington Ingalls Stock Fund ⎯ This fund provides employees an 

opportunity to participate in Huntington Ingalls growth through the 

purchase of Huntington Ingalls common stock. This makes you a part owner 

of Huntington Ingalls and gives you full voting rights for any shares of stock 

that are attributable to your account. 

⎯ Like any fund invested in a single stock, the fund has potential for 

losses as well as gains and is subject to risk with respect to Huntington 

Ingalls’ profitability and investors’ perceptions of Huntington Ingalls’ 

financial future, the industry, and the stock market in general. 


April 2011 

9

⎯ 

⎯ 

The performance of the Huntington Ingalls Stock Fund is compared to 

that of the Standard & Poor’s 500 Stock Index (S&P 500). 

How the Huntington Ingalls Stock Fund works: 

1. All contributions to the Huntington Ingalls Stock Fund are held 

in what is called an employee stock ownership plan (ESOP). This 

fund pools your money with that of other employees who 

purchase Huntington Ingalls stock through the Savings Plan. 

Because it is held in an ESOP, the fund invests primarily in 

Huntington Ingalls common stock. 

2. However, a small portion of the Huntington Ingalls Stock Fund is 

held in cash or cash equivalents for liquidity purposes. That 

means the fund is not composed solely of Huntington Ingalls 

stock. So when you invest in the Huntington Ingalls Stock Fund, 

you own units in the fund instead of shares. (See “How Your 

Account Is Valued: Units and Unit Values” for an explanation of 

units.) When you request a stock distribution, your units are 

converted to actual shares of Huntington Ingalls stock. 

• The Northrop Grumman Stock Fund ⎯ Prior to the spin-off, you had the 

opportunity to invest your account balance in the common stock of Northrop 

Grumman Corporation through the Northrop Grumman Stock Fund under 

the Northrop Grumman Shipbuilding, Inc. Newport News Operations 

Savings (401(k)) Plan for Union Eligible Employees. The Northrop 

Grumman Stock Fund will be maintained under this Plan for a period of 

time that will be determined by the Investment Committee for the purpose 

of permitting participants the opportunity to divest their interests in the 

Northrop Grumman Stock Fund. During such time, participants may direct 

the transfer of investments out of the Northrop Grumman Stock Fund, but 

they may not direct any transfers, contributions or other investments into the 

Northrop Grumman Stock Fund. Dividends, if any, will be reinvested in the 

fund. Commencing on a date selected by the Investment Committee, any 

investments remaining in the Northrop Grumman Stock Fund will be 

liquidated and the proceeds will be deposited into one or more investment 

funds to be determined by the Investment Committee. For more information 

about this fund, please go to Your Benefits Resources at 

http://hiibenefits.com or call the Huntington Ingalls Benefits Center (HIBC) 

at 1-877-216-3222. 

The different investment options provide a range of risk, liquidity, and investment 

return opportunity. The Company does not recommend any investment option over 

any other. Past performance of any investment is not a guarantee of future 

performance. The Company makes available to you brochures and prospectuses for 

the mutual funds. You must make your own decisions about your Plan investments. 

Your selection of options should take into account your personal financial situation, 

including your total assets and investments both inside and outside the Plan, and 


April 2011 

10

how long you intend to have the funds invested. 

You may invest your current contributions in any combination of whole 

percentages, so that all percentages total 100%. For example, if you select three 

options, you might choose 35%, 25% and 40%, respectively. You decide the 

combination. 

In certain situations (e.g., excessive trading or market timing, etc.) your ability to 

change and/or direct investments may be limited or stopped. The fund 

prospectus(es) and/or fact sheet/s provide more information on trading restrictions 

that may apply to the investment option(s) that you select. 

In the event of a tender or exchange offer for a security held in your account, you 

will be able to direct your response to the offer. More information (including a 

prospectus) on investment options are available by calling the Retirement Service 

Center at (800) 377-9188 or logging onto www.wellsfargo.com/401k. 

15. May I change the way my contributions are allocated among investment funds 

Yes. When you enroll, you must select an initial allocation for your contributions. 

You may change this allocation at anytime with respect to subsequent contributions, 

by calling the Retirement Service Center at (800) 377-9188 or by logging onto 

www.wellsfargo.com/401k. A change in allocation will affect future contributions 

and loan payments; it will not affect any investments already made. Changes will be 

made as soon as administratively feasible and neither the Plan Trustee nor the 

Company is responsible for any investment losses during the transaction processing 

period. 

16. May I change how amounts already in my account are invested 

Yes, you may re-allocate (trade) the assets in your account on a daily basis (subject 

to normal settlement provisions) among the available investment funds by calling 

the Retirement Service Center at (800) 377-9188 or by logging onto 

www.wellsfargo.com/401k. 

Investment changes will be made as soon as administratively feasible, and neither 

the Plan Trustee nor the Company is responsible for any investment losses during 

the transaction processing period. Transaction costs, if any, will be charged to your 

account. Liquidation or reinvestment will be made at current market rates prevailing 

at the time of the transaction (See Q&A 17). Investment transactions do not result in 

an immediate tax consequence for you. For example, if a security in your account is 

sold for more than its purchase price, you will not currently incur a taxable gain on 

the sale (See Q&A 7). 

17. How is the price of an investment determined 

Your request to purchase or sell Huntingnton Ingalls stock fund or mutual fund 

shares, and your request to diversify out of the Northrop Grumman Stock Fund, will 

be processed the same business day if your request is received by 4:00 p.m. Eastern 

time, excluding holidays and weekends. Requests received after 4:00 p.m. Eastern 

time and on holidays and weekends will be processed the following business day 


April 2011 

11

after the trade has been requested. 

18. How will I be informed of the status of my account 

Following the end of each quarter, you will receive a personal account statement 

showing the status of your 401(k) account as of the previous quarter end. The 

investment funds are valued on a daily basis, and your account also is updated at 

this time. 

You also have access to an automated voice response system at (800) 377-9188 and 

Internet site at www.wellsfargo.com/401k for current information about your Plan 

account. 

19. Can I lose part of my account 

You are always 100% vested in your employee contributions to the Plan and the 

Company cannot take this portion of your account under any circumstances. 

However, Company matching contributions under the Plan are subject to a two-year 

vesting schedule. You must be employed for two years before you are 100% vested 

in your Company matching contributions. If you terminate employment with the 

Company before earning two years of vesting service, you receive no company 

matching contributions under the Plan. 

You will also become 100% vested in your Company matching contributions if you 

attain normal retirement age or terminate employment on account of death, 

disability or a “reduction in force.” 

Of course, it is possible for your account to lose value if there are losses due to the 

investment of the Plan funds. The mutual funds, common trust funds, and common 

stock funds are professionally managed by their respective portfolio groups, and by 

such are obligated to invest the monies prudently. The value of investments can fall 

as well as rise. No investment is free of risk and losses may occur. Past performance 

is no guarantee of future performance. Investments are not FDIC insured. Neither 

the Company, nor the Plan has any obligation to make up any losses or to 

guarantee any minimum earnings as long as they act properly under the law. 

Your account is also protected from the claims of creditors, except in the case of a 

qualified domestic relations order (See Q&A 35). 

20. Can I use the money in my account to meet financial needs that arise before 

retirement 

There are two ways in which you may use your savings to meet financial needs 

arising before retirement: (1) under limited special circumstances, by withdrawing 

funds from the Plan, and (2) by obtaining a loan from the Plan. 

21. Under what circumstances may I withdraw funds from the Plan before 

retirement 

If you become permanently disabled, or if you have reached the age of 59½, you 

may withdraw in cash all or part of your account balance. You may request a 

withdrawal by contacting the Retirement Service Center at (800) 377-9188. You 

may only make one such withdrawal per calendar year. Keep in mind that 


April 2011 

12

withdrawals are subject to taxes (See Q&A 36). In addition, funds withdrawn may 

not be reinvested in the Plan. 

Loan Information 

22. Under what circumstances may I obtain a loan 

If you are employed by the Company (or an affiliated company) and have a balance 

in your account, you may apply for a loan from the Plan. However, you may have 

only one loan outstanding at any time. A subsequent loan may be obtained as soon 

as administratively feasible following the payoff of the prior loan. 

23. How much may I borrow 

You may borrow up to one-half of your vested account balance, subject to a 

minimum of $500 and a maximum of $50,000. All loans must be in increments of 

$100. 

24. What interest rate will be charged on loans 

The rate will be 1% above the prime rate as reported in that day’s edition of The 

Wall Street Journal. 

25. What procedure must I follow to obtain a loan 

To obtain a loan, you must contact Retirement Service Center at (800) 377-9188. 

The Plan Trustee will liquidate your interests in the investment funds to the extent 

necessary to provide funds for the loan and to pay that amount to you. Unless you 

give other directions, each investment fund will be reduced by the same percentage. 

Your repayments will be distributed among investment funds in the manner that you 

specify for your wage reduction contributions. 

Complete details of the loan rules may be obtained from the Plan Trustee at 

www.wellsfargocom/401k and are subject to change from time to time. 

26. What loan repayment schedule will apply 

Plan loans can be made with a repayment schedule for any number of months, but 

cannot exceed 4½ years. Loan payments must be made weekly through equal 

irrevocable payroll deductions sufficient to repay the loan (both principal and 

interest) within the repayment period. You may repay the loan in advance without 

penalty. 

If you fail to make a loan payment when due, or in the event of your death or 

termination of employment with the Company and all affiliated companies, the 

entire unpaid balance of the loan, plus any accrued interest, will become due and 

payable. The amount due and payable, plus any interest accruing thereafter, will be 

deducted from your participant account at the time you are eligible to receive a 

distribution under the Plan. 

Loan repayment arrangements can change if you become disabled or take a leave of 

absence. While you are in a paid status, loan repayments will continue to be 


April 2011 

13

deducted from your pay check. If you are placed in an unpaid status, but you are not 

separated from service with the Company, you may continue to make loan 

repayments through certified checks. You will need to contact the Retirement 

Service Center at 1-800-377-9188 for instructions for making manual loan 

payments. If you are placed in an unpaid status and you separate from service with 

the Company, your loan repayments become due in full. 

You should be aware that a Plan loan that is not repaid within five years, and any 

loan for which repayments are not made at least quarterly, may be treated by the 

federal government as, in effect, distributed to you and includable in taxable 

income. 

27. Are there any fees associated with taking a loan 

There are no fees that the participant must pay; however, the Company pays a 

nominal loan processing fee each month during the repayment period. 

Termination of Participation 

28. May I stop participating in the Plan at any time 

Yes. You may stop participating at any time by calling Retirement Service Center at 

(800) 377-9188 or logging onto www.wellsfargo.com/401k. Your contributions will 

be suspended as soon thereafter as is administratively feasible, but the suspension 

cannot take effect before the first pay period following receipt of your notice. 

29. May I resume participation after having stopped 

Yes. You may resume participation at anytime by simply calling Retirement Service 

Center at (800) 377-9188 or logging onto www.wellsfargo.com/401k. 

30. Are there any circumstances under which my participation will automatically 

be terminated 

Yes. Your contributions will be automatically terminated if you take an authorized 

leave of absence or military leave. Your contributions will also be automatically 

terminated, and you will cease to be eligible to make contributions, if you leave the 

Company’s employ or are no longer covered by a collective bargaining agreement 

that provides for participation in the Plan. If and when you return to work, you may 

resume participation as described in Q&A 5. 

Distribution of Benefits 

31. When will my account be paid to me 

You may request distribution of your account when you terminate employment with 

the Company and all its affiliated companies for any reason, including layoff, death, 

or retirement, attainment of 59½, or upon becoming disabled. However, if your 

account balance is greater than $1,000, you may postpone the distribution until you 

reach age 62 or die, whichever comes first. If you remain an active employee, 

Federal law requires distribution of your account by the later of (a) the calendar year 


April 2011 

14

in which you terminate employment or (b) the calendar year in which you reach age 

70½. You must contact Retirement Service Center at (800) 377-9188 to apply for a 

distribution. 

32. What form will the distribution take 

Distribution from all sources (except the Northrop Grumman Stock Fund and 

Huntington Ingalls Stock Fund) will be made in a single lump sum payment. 

Distributions from the Northrop Grumman Stock Fund and Huntington Ingalls 

Stock Fund can be paid in cash, stock, or a combination of both – whichever you 

choose. 

At the time of distribution, you may elect to have any portion of the distribution 

paid directly to you or paid as a rollover to an eligible retirement plan. Or, you may 

elect to receive payments over your lifetime ⎯ under this “payable for life” option, 

your account is used to purchase an annuity contract from an insurance company 

and the contract pays you an actuarially reduced monthly benefit for the rest of your 

life. 

33. What happens if I die before my account is distributed 

The entire value of your account at the time of your death will be distributed to your 

designated beneficiary, your spouse, or the executor or administrator of your estate, 

as described below. 

When you enroll in the Plan, you may designate a beneficiary to receive your 

interest in the Plan in the event of your death. You may change or revoke a 

designation at any time. However, if you are married and wish to designate a 

beneficiary other than your spouse, your spouse must consent to the designation. 

This consent must be given on a form available online at 

www.wellsfargo.com/401k, or provided by calling Retirement Service Center at 1- 

800-377-9188, for this purpose and signed by your spouse in the presence of a 

notary public. Beneficiary designations (including changes and revocations) are 

effective upon receipt of the properly executed form by Wells Fargo. 

If you designate someone other than your spouse as your beneficiary, but that 

person predeceases you, then your account will be distributed to your spouse. If you 

are not survived by a spouse or a designated beneficiary, your account will be 

distributed to the executor or administrator of your estate. 

To designate or change a beneficiary, or obtain a spousal consent form to name a 

beneficiary other than your spouse, go online to www.wellsfargo.com/401k. If you 

do not have Internet access, please call Retirement Service Center at 1-800-377- 

9188. 

34. What must I or my beneficiary do to receive my benefits 

If you are a terminated participant and your account balance is $1,000 or less, you 

will receive your distribution automatically. If it is more than this, distribution will 

not be made before you reach age 62 unless you request it. At the time of your 

termination or other event qualifying you for a distribution (see Q&A 31), you will 


April 2011 

15

have the opportunity to decide whether to apply for your distributions or to request 

that the distribution be deferred. 

35. Can the money in my account be assigned to someone else 

Although you may designate a beneficiary to receive death benefits (as described in 

Q&A 33) you may not assign any of the money in your account to anyone else. 

With one exception, no one else may claim your savings to pay your debts. 

Qualified domestic relations orders (court orders requiring payments to your spouse, 

former spouse or dependents) are the exception. The Plan must honor these orders. 

If it is determined that an order is valid, the Plan Trustee will pay out of your 

account the amount specified to the designated individual at the required time, 

whether or not you are entitled to a distribution from the Plan. You will be notified 

if the Plan receives a qualified domestic relations order that relates to your account 

and you will be informed of any action taken in this regard. If you have questions 

concerning the special rules that apply to accounts subject to qualified domestic 

relations orders, you should contact the Huntington Ingalls Industries Domestic 

Relations Group at (877) 324-4255 for a copy of the Plan’s procedures for handling 

such orders. 

36. Are my Plan benefits subject to taxes 

Generally, all benefits paid from the Plan are subject to federal and state income tax 

when you or your beneficiary (including a spouse or former spouse who receives 

benefits pursuant to a qualified domestic relations order) receive them. In addition, a 

10% excise tax may apply, unless the distribution: (1) is made after you reach age 

59½; (2) is made as a result of your death or disability or after your separation from 

service after age 55; (3) is used to pay certain medical costs; or 

(4) is paid to an alternate payee under a “qualified domestic relations order.” Also, 

any payments that are made to your beneficiary on account of your death may be 

subject to federal estate tax. 

The manner in which your Plan benefits will be taxed depends on certain elections 

available to you under the Internal Revenue Code. When you receive a payout due 

to termination of employment or retirement, you may be able to postpone paying 

taxes (including the 10% excise tax) by transferring — or “rolling over” — all 

amounts into a traditional individual retirement account (“IRA”) or other qualified 

retirement arrangement within 60 days of receipt. You will be provided further 

information in this regard if you receive a distribution which may be “rolled over.” 

If you receive your entire account balance within one taxable year, either for 

termination of employment or after you reach age 59½ (a “lump sum distribution”), 

special rules may apply for Federal income tax purposes. If the distribution includes 

shares of Huntington Ingalls common stock, any appreciation in the value of the 

stock over the price at which the stock was purchased for your account (“unrealized 

appreciation”) will be excluded from your taxable income in the year of the 

distribution, unless you choose to pay the tax on this amount at that time. If you 

choose to exclude the unrealized appreciation from taxable income in the year of the 

distribution, and you later sell the stock at a gain, this unrealized appreciation will 


April 2011 

16

e taxable in the year of the sale. If you have been in the Plan for five or more 

taxable years before the year when you receive a lump sum distribution and you 

were born before January 1, 1936, you may be able to elect to apply special ten-year 

income averaging to the taxable amount. This special tax treatment is only available 

if you also choose to treat all such distributions received during the year under all 

qualified plans in which you participate as lump sum distributions. You may make 

only one such election and there are other limitations. 

Federal income tax withholding at a mandatory 20% rate is required on all taxable 

distributions. Some States require that State taxes be withheld as well. However, in 

most circumstances you may defer taxation and avoid the 10% penalty on premature 

distributions by rolling over all or a part of your distribution to an Individual 

Retirement Account (IRA) or another qualified plan that accepts rollovers. You may 

request the Plan Trustee to make a direct rollover for you, or you may make the 

rollover yourself so long as it is within 60 days after you receive your distribution. 

You should keep in mind that tax laws are complex and subject to change. This SPD 

provides only a brief summary of how your Plan account is treated under current 

federal law. Applicable tax treatment under State and local law may differ. IF YOU 

HAVE A SPECIFIC QUESTION ABOUT THE TAXATION OF YOUR PLAN 

BENEFITS, YOU SHOULD CONSULT YOUR OWN TAX ADVISOR. YOUR 

BENEFITS REPRESENTATIVE IS NOT QUALIFIED TO ASSIST YOU IN 

THIS REGARD. 

37. Do Veterans have any special rights under the Plan 

If you are a Plan participant, leave the Company to serve in one of the “uniformed 

services” of the United States, give notice (if possible) and promptly return to work 

for the Company, you may have special rights under federal law for a limited time 

to contribute additional “make-up” before-tax contributions for the period of your 

uniformed service. If you qualify for the right to contribute “make-up” before-tax 

contributions, the period you have to make the contributions begins on the date of 

your return to the Company and continues for five years or, if less, three times the 

length of your uniformed service. After the end of the period, you will no longer be 

able to make these “make-up” before-tax contributions. If you want to contribute 

“make-up” contributions to the Plan, you should check with Retirement Service 

Center by calling (800) 377-9188 as soon as possible following your return from 

uniformed service to determine if you qualify and, if so, to complete the necessary 

paperwork. 

. 


38. What can I do if my application for benefits is denied 

If your initial request for benefits is denied, you will receive notice of the Plan 

Administrator’s decision on your claim for benefits generally within 90 days after 

the Plan Administrator receives your request, except for situations requiring an 


April 2011 

17

extension of time because of matters beyond the control of the Plan, in which case 

the Plan Administrator may have up to an additional 90 days to provide you such 

notification. 

If the Plan Administrator needs an extension, it will notify you prior to the 

expiration of the initial 90 day period, state the reason why the extension is needed, 

and state when it will make its determination. If an extension is needed because you 

did not provide sufficient information or filed an incomplete claim, the time from 

the date of the Plan Administrator’s notice requesting further information and an 

extension until the Plan Administrator receives the requested information does not 

count toward the time period the Plan Administrator is allowed to notify you as to 

its claim decision. 

If your claim for a benefit is denied, in whole or in part, you (or your beneficiary) 

must receive a written explanation of the reason for the denial from the Plan 

Administrator. This written notice will include: 

• Specific reasons for the denial 

• References to Plan provisions on which the denial is based 

• A description of additional materials or information that may be necessary 

to adjudicate your claim 

• Procedures for appealing the decision and the time limits applicable to such 

procedures, including a statement of your right to bring a civil action under 

Section 502 (a) of ERISA following an adverse benefit determination on 

review. 

If the claim is denied because the Plan Administrator did not receive sufficient 

information, the claims decision will describe the additional information needed and 

explain why such information is needed. Further, if an internal rule, protocol, 

guideline or other criterion was relied upon in making the denial, the claims 

decision will state the rule, protocol, guideline or other criteria or indicate that such 

rule, protocol, guideline or other criteria was relied upon and that you may request a 

copy free of charge. 

If you believe you are being denied a benefit for which you are eligible, you should 

make a claim to the Plan Administrator in writing within 65 days from the receipt of 

the original denial to request a review (or from the expiration of the review period if 

the Plan Administrator failed to make a decision or notify you of an extension). This 

request should be made in writing and sent to the Plan Administrator at the 

following address: 

Administrative Committee 

Huntington Ingalls Industries, Inc. Newport News Operations Savings 

(401(k)) Plan for Union Eligible Employees 





April 2011 

18

The request for appeal must include at least the following information: 

• Name of employee 

• Name of the Plan 

• Reference to the initial decision 

• An explanation why you are appealing the initial decision, including the 

grounds on which your request for a review is based 

As part of your appeal, you may also submit any written comments, documents, 

records, or other information relating to your claim. Upon your written request, the 

Plan Administrator will provide you free of charge with copies of documents, 

records and other information relevant to your claim. 

Besides having the right to appeal, you or your authorized representative also have 

the right to examine and have copies of certain plan documents and information 

relevant to your claim, at locations and times convenient to the Plan Administrator. 

After you submit a claim for retirement benefits to the Plan Administrator, the Plan 

Administrator will conduct a full and fair review of your claim and notify you in 

writing of its decision to approve or deny your claim. 

The Administrative Committee will notify you in writing of its final decision within 

a reasonable period of time, but no later than 60 days after its receipt of your written 

request for review, except that under special circumstances the Administrative 

Committee may have up to an additional 60 days to provide written notification of 

the final decision. If such an extension is required, the Administrative Committee 

will notify you prior to the expiration of the initial 60 day period, state the reason(s) 

why such an extension is needed, and state when it will make its determination. If 

an extension is needed because you did not provide sufficient information, the time 

period from the Administrative Committee’s notice to you of the need for an 

extension to when the Administrative Committee receives the requested information 

does not count toward the time the Administrative Committee is allowed to notify 

you of its final decision. 

If the Administrative Committee denies the claim on appeal, the Administrative 

Committee will send you a final written decision that states: 


• References any specific Plan provision(s) on which the denial is based 

• A statement of your right to bring civil action under Section 502 (a) of 

ERISA following an adverse benefit determination on review. 

• If an internal rule, protocol, guideline or other criterion was relied upon in 

denying the claim on appeal, the final written decision will state the rule, 

protocol, guideline or other criteria or indicate that such rule, protocol, 

guideline or other criteria was relied upon and that you may request a copy 

free of charge. 

Upon written request, the Administrative Committee will provide you free of charge 

with copies of documents, records and other information relevant to your claim. 


April 2011 

19

If your claim appeal is denied, you may bring legal action in court provided you 

abide by certain time limitations. Specifically, you may not bring legal action 

against a party under the Plan after the latest of: 

• One year from the time the claim arises 

• 90 days from the final disposition of the claim by the Administrative 

Committee. 

In addition, the action must be filed before the time limit described above and any 

otherwise applicable statute of limitations expires, whichever comes first. For 

details on when a claim arises, see the Plan document. 

For purposes of making its decision, the Committee has full discretionary authority 

to interpret the Plan and make final and conclusive determinations, including factual 

determinations. 

Your Rights 


the “Administrative Information” section of this Employee Handbook. 

Information Provided Pursuant to Federal Securities Laws 

General Information 

The name of the Plan is Huntington Ingalls Industries, Inc. Newport News Operations 

Savings (401(k)) Plan for Union Eligible Employees. The name of the registrant is 


The Plan is subject to ERISA, which regulates the Plan, among other things, as to: 

• Reporting to the government, 

• Disclosure to participants, 

• Age and service requirements for participation, 

• Vesting in accounts, 

• Counting of service for purposes of participation and vesting, 

• Notification of employees of certain amendments to the Plan, 

• Form and timing of Plan distributions, 

• Assignment and alienation of Plan benefits, 

• Rights of participants’ spouses, children and dependents to Plan benefits, 

• Merger or consolidation of the Plan with other plans, and transfer of assets and 

liabilities of the Plan to other plans, 

• Recordkeeping, 

• Requirements for the Plan’s governing documents, 

• Conduct, liability and identity of Plan fiduciaries, 

• Allocation and delegation of fiduciary duties, 

• Holding, use and investment of Plan assets, 


April 2011 

20

• Bonding of Plan officials, 

• Civil and criminal enforcement of ERISA provisions, 

• Claim procedures, and 

• Interference with the rights of participants under ERISA. 

Securities To Be Offered 

100,000 shares of Huntington Ingalls Industries, Inc. common stock have been registered 

for delivery through the Huntington Ingalls Stock Fund within the Plan. As necessary, the 

Plan will register additional shares to meet SEC requirements. Shares of Huntington 

Ingalls Industries, Inc. common stock will be purchased and sold by the trustee(s) in open 

market transactions, in negotiated trades or otherwise, at prices within the range of prices 

prevailing at the time the transaction is consummated. 

Resale Restrictions 

The Plan does not impose any resale restrictions on Huntington Ingalls Industries, Inc. 

common stock acquired through the Plan. Section 16(b) insiders (as defined below) may 

be subject to certain restrictions on resale and should consult with legal counsel before 

disposing of shares of Huntington Ingalls Industries, Inc. common stock held in the Plan. 

Huntington Ingalls Industries, Inc. is required to report any resale transactions involving a 

Section 16(b) insider to the Securities Exchange Commission. 

A “Section 16(b) insider” is any person who is: 

• Directly or indirectly the beneficial owner of more than 10% of any class of 

equity securities of Huntington Ingalls Industries, Inc. that is registered under 

Section 12 of the Securities Exchange Act of 1934 (the “Exchange Act”); or 

• A director or officer of Huntington Ingalls Industries, Inc. 

Certain officers and directors of Huntington Ingalls Industries, Inc., its affiliates and other 

significant beneficial owners of Huntington Ingalls Industries, Inc. common stock, may 

be considered to be affiliates of Huntington Ingalls Industries, Inc. Huntington Ingalls 

Industries, Inc. common stock acquired under the Plan by an affiliate of Huntington 

Ingalls Industries, Inc. or a person who, subsequent to his or her acquisition of 

Huntington Ingalls Industries, Inc. common stock, becomes an affiliate of Huntington 

Ingalls Industries, Inc., may only be reoffered or resold pursuant to the effective 

registration statement or pursuant to Rule 144 under the Securities Act of 1933 (the 

“Securities Act”). Such reoffers or resales may not be made pursuant to the prospectus of 

which this SPD is a part. 

Tax Effects 

See Q&A 36 for information on the tax effects related to your Plan benefits. 

Forfeitures and Penalties 

See Q&A 19 for information related to forfeitures under the Plan. 

The Plan does not impose any penalties or restrictions on participation, except in 


April 2011 

21

accordance with the Internal Revenue Code. 

Charges, Deductions and Liens 

Proper administration of the Trust shall be paid by the Company; provided, however, that 

investment managers and similar fees (including brokerage commissions) directly related 

to the return to participants on amounts invested in the trust fund will be applied before 

the calculation and allocation of income. All reasonable and proper expenses of 

administration of the Plan including counsel fees will be paid out of the Plan assets, to the 

extent permitted by an applicable CBA. The Company may, from time to time, choose to 

pay some of these Plan expenses, but has no obligation to do so. 

At present, there are no liens on Plan funds. However, liens might attach to Plan funds in 

certain instances, although the law in this area is not entirely clear. 

• A lien may arise for the unpaid federal taxes of a participant, or as a result of a 

judgment against a participant for unpaid federal taxes. 

• It may be possible for a lien to arise with respect to some of the contributions of a 

contributing employer, if the latter are made, for instance, when the Company is 

insolvent or shortly before the Company’s bankruptcy. 

• It may be possible for a lien to arise with respect to some of a participant’s 

contributions, if the latter are made, for instance, when the participant is insolvent 

or shortly before the participant’s bankruptcy. 

• Finally, liens against Plan funds might arise with respect to debts or judgments 

against the Plan itself or its underlying trust. Similarly, Plan funds can be affected 

by liens on collective trusts or investments with insurance companies under which 

Plan assets include not only the interest in the collective trust or insurance 

contract. 

Registrant Information and Employee Plan Annual Information 

Each new and continuing participant in the Huntington Ingalls Stock Fund will be 

provided, without charge, a copy of any one of the following: 

• Huntington Ingalls Industries, Inc. annual report to shareholders for its latest 

fiscal year; 

• Huntington Ingalls Industries, Inc. annual report on Form 10-K filed in 

accordance with the Exchange Act for its latest fiscal year; 

• The latest prospectus of Huntington Ingalls Industries, Inc. filed pursuant to Rule 

424(b) of the Securities Act that contains audited financial statements for its latest 

fiscal year that are not incorporated by reference from another filing; or 

• Huntington Ingalls Industries, Inc.’s effective Registration Statement on Form 10 

of the Exchange Act, if any, that contains audited financial statements for 

Huntington Ingalls Industries, Inc.’s latest fiscal year. 

In addition, new and continuing participants in the Huntington Ingalls Stock Fund will be 

provided, without charge, all reports, proxy statements, and copies of other 

communications distributed to Huntington Ingalls Industries, Inc.’s shareholders 

generally no later than the time such materials are sent to shareholders. These documents 

also shall be delivered to other participants who request such information orally or in 


April 2011 

22

writing. 

Participants in the Huntington Ingalls Stock Fund will be provided, without charge, on 

written or oral request, the following documents (without exhibits, unless the exhibits 

are incorporated into the prospectus): 

• Huntington Ingalls Industries, Inc.’s annual report on Form 10-K filed for the 

most recent fiscal year; 

• The Plan’s annual report filed for the most recent fiscal year pursuant to Section 

15(d) of the Exchange Act, if any, whether on Form 11-K or included as part of 

Huntington Ingalls Industries, Inc.’s annual report on Form 10-K; 

• All other reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act 

(e.g., Form 10-Q) since the end of the fiscal year covered by the document 

specified above; 

• The description of Huntington Ingalls Industries, Inc.’s common stock that is 

contained in Huntington Ingalls Industries, Inc.’s Registration Statement on Form 

8-A, filed pursuant to the Exchange Act on March 30, 2011, and any amendment 

or report filed for the purpose of updating such description; 

• The description of the rights contained in Huntington Ingalls Industries, Inc.’s 

Registration Statement on Form S-8, filed pursuant to the Exchange Act on March 

30, 2011; and 

• All documents filed by Huntington Ingalls Industries, Inc. pursuant to Sections 

13(a), 13(c), 14, and 15 (d) of the Exchange Act subsequent to the filing of the 

Registration Statement on Form S-8 relating to the Huntington Ingalls Industries, 

Inc. and prior to the filing of a post-effective amendment to such Registration 

Statement that indicates that all securities offered have been sold or that 

deregisters all securities then remaining unsold. 

Each of the above documents is, or will be on filing, incorporated by reference into the 

Registration Statement on Form S-8 relating to the Huntington Ingalls Stock Fund, and 

into the related prospectus meeting the requirements of Section 10(a) of the Securities 

Act. For copies of the above documents, the Plan Administrator can be contacted at the 

following address and telephone number: 


Savings (401(k)) Plan for Union Eligible Employees 





1-800-377-9188 

13154581v.4 


April 2011 

23



Newport News Shipbuilding 



United Steelworkers Local 8888 


Effective October 27, 2008, through March 10, 2013 

13048101v.6


Eligibility .......................................................................................................................................... 1 

Types of Retirement ........................................................................................................................ 3 

Vesting ........................................................................................................................................... 17 

Application for Benefits and Methods of Payment ....................................................................... 22 

Appeal Procedure .......................................................................................................................... 35 

Administration of the Plan ............................................................................................................ 38 

Your Rights..................................................................................................................................... 42 

13048101v.6

This summary plan description ("SPD") describes the Huntington Ingalls Industries, Inc. Newport 

News Operations Pension Plan for Employees Covered by United Steel, Paper and Forestry, 

Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union 

(United Steelworkers), Local 8888 Collective Bargaining Agreement (the "Plan" or the "Pension 

Plan"), as amended and restated pursuant to the Collective Bargaining Agreement (the "CBA") 

effective October 27, 2008 through March 10, 2013. References in this booklet to the “Company” 

mean Huntington Ingalls Industries, Inc. Newport News Operations. 

If you terminated employment, or otherwise ceased to be eligible to participate in the Plan prior 

to October 27, 2008, your rights to a benefit under the Plan, if any, will be determined under the 

terms of the Plan in effect on the date your employment terminated. However, if you ceased to 

be eligible to participate in the Plan prior to October 27, 2008, but were actively employed by the 

Company on that date, your future service benefit will be determined as described in Q&A 8. 

If you terminated employment, or otherwise ceased to be eligible to participate in the Plan prior 

to February 1, 2009, the applicable minimum benefit, if any, will be determined under the terms 

of the Plan in effect on the date your employment terminated. 

Eligibility 

1. When am I eligible to join the Pension Plan 

You become a Plan Participant on the January 1 or July 1 following the date that you meet 

all the requirements below: 


April 2011 

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13048101v.6

• You become an active, full-time employee covered by the Collective Bargaining 

Agreement between the Company and United Steelworkers Local 8888 (bargaining unit) 

• You are at least 21 years old 

• You have completed one year of service during which you received pay or had unpaid 

authorized absences totaling 1,000 hours. 

Note: All eligible employees with an original hire date on or after June 7, 2004 will 

participate in the Huntington Ingalls Industries, Inc. Newport News Operations Cash Balance 

and Pension Earnings Plan for Employees Covered by United Steelworkers Local 8888 

Collective Bargaining Agreement (the “Cash Balance Plan”) ⎯ not in the Pension Plan. 

Rehires 

If you were previously a Participant in the Pension Plan, you will re-enter the Plan if you 

were vested as of your termination date, or, if you were not yet vested, you did not incur a 

break in service (as defined by the Plan – see Q&A 24) following your termination of 

employment with the Company. 

You will enter the Huntington Ingalls Industries, Inc., Newport News Operations Cash 

Balance and Pension Earnings Plan for Employees Covered by United Steelworkers, Local 

8888 Collective Bargaining Agreement if you were never a participant in the Pension Plan, or 

if you incurred a break in service following your termination of employment from the 

Company. 

2. What is included in hours paid for the purposes of determining eligibility to join the 


Hours paid for any reason, including time worked, annual leave, holidays and jury duty, are 

counted in determining eligibility to join the Plan. However, only one hour shall be credited 

for each hour worked, even if a premium is paid for that hour. 


April 2011 

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13048101v.6

3. What is an unpaid authorized absence for the purposes of determining eligibility to join 

the Pension Plan 

The following are defined as unpaid authorized absences, up to 40 hours per week: 

• Each hour of layoff up to 18 months 

• Each hour of absence due to total (but not permanent) disability during which the 

employee remains on the payroll either in active or inactive status (up to 24 months for 

a non-occupational disability and up to 30 months for an occupational disability) 

• Each hour of absence due to any leave, including union leave, granted by the Company 

• Absence due to a sickness or an accident as long as the employee is eligible to receive 

Sickness and Accident benefits 

• An hour for which back pay, irrespective of mitigation of damages, is either awarded or 

agreed to by the Company. 

4. What happens if I am not credited with at least 1,000 hours of service in the 

12-month period following my first day of employment 

You can fulfill the hours of service requirement in any succeeding 12-month period, 

beginning on your anniversary date of employment. 

Types of Retirement 

5. What types of retirement are provided for in the Plan 


April 2011 

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13048101v.6

• Normal Retirement ⎯ Refer to Q&A 6 

• Early Retirement ⎯ Refer to Q&A 14 

• Disability Retirement ⎯ Refer to Q&A 17 

• Post-Normal Retirement ⎯ Refer to Q&A 19 

In each case, you must be an employee of the Company or another company owned entirely 

or primarily by Huntington Ingalls, Industries, Inc.* at the time you elect to retire. If you 

transfer from the Company to another company owned entirely or primarily by Huntington 

Ingalls Industries, Inc., you must terminate employment from that company in order to 

commence your pension benefit from the Plan. If you terminate employment and wish to 

begin benefits under the Plan at a future date (rather than at termination), see Q&A 24. 

* Ownership is subject to certain legal rules. Please contact the Huntington Ingalls Benefits 

Center (HIBC) at 1-877-216-3222 if you have any questions as to the relationship between 

your employer (other than Huntington Ingalls Industries, Inc., Newport News Operations) 

and Huntington Ingalls and how it might affect your retirement. 

6. What is Normal Retirement 

In general, your Normal Retirement Age is your 65th birthday. However, if you began to 

participate in the Plan on or after your 60th birthday, your Normal Retirement Age is the 

fifth anniversary of the date your participation began. Once a Participant reaches normal 

retirement age, he or she is eligible for Normal Retirement from the Company (and can 

retire from active employment, as long as he or she is not an employee of another company 

owned entirely or primarily by Huntington Ingalls Industries*): 

• On the first day of the following month, or 

• On that day, if it occurs on the first day of a month. 


April 2011 

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13048101v.6

* Ownership is subject to certain legal rules. Please contact the Huntington Ingalls Benefits 

Center (HIBC) at 1-877-216-3222 if you have any questions as to the relationship between 

your employer (other than Huntington Ingalls Industries, Inc., Newport News Operations) 

and Huntington Ingalls and how it might affect your retirement. 

7. What are the Normal Retirement benefits under the Plan 

If you are eligible and elect Normal Retirement from the Company, you will receive a future 

service benefit based on all pension credits accrued up to the date of retirement, plus a past 

service benefit or the Minimum Benefit, if applicable. 

8. What is the future service monthly benefit 

For service on or after July 1, 1969, active participants will receive future service monthly 

benefits equal to: 

• July 1, 1969−December 31, 1989: $17 multiplied by years of pension credit (or, if higher, 

for the period July 1, 1969−December 31, 1974, 1¼% of all W-2 earnings per year during 

such period divided by 12 (or in the case of 1969, divided by 6) and multiplied by years 

of pension credit during such year) 

• January 1, 1990−December 31, 1991: $18 multiplied by years of pension credit during 

such period 


such period 


such period 


April 2011 

- 5 - 

13048101v.6


such period 


such period 


such period 


such period 


such period 


such period 


such period 

• January 1, 2005 – December 31, 2008: $40 multiplied by years of pension credit during 

such period. 

• January 1, 2009 – December 31, 2010: $43 multiplied by years of pension credit during 

such period. 

• Beginning January 1, 2011: $45 multiplied by years of pension credit on or after this 

date. 

9. What is the past service benefit 

Participants who were also members as of June 30, 1969, of the pension plan established by 

the Company prior to the existence of the current Pension Plan, and who are eligible for 

retirement benefits under the Plan, will also be eligible to receive a past service benefit and, 

if they made required contributions to the prior pension plan that have not been withdrawn 

from the Plan, a contributory past service benefit. Participants eligible for past service 


April 2011 

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13048101v.6

enefits may obtain the amount thereof from the Huntington Ingalls Benefits Center (HIBC) 

at 1-877-216-3222. 

A Participant who is covered under the Collective Bargaining Agreement on June 6, 2004 will 

also receive pension credits for service not otherwise taken into account ⎯ except service 

lost due to a break in service ⎯ and was performed after the Participant’s first entry date 

(January 1 or July 1) in the Plan following the date the Participant first completed 1,000 

hours of service in an Eligibility Compensation Period (see Q&A 2) and reached age 21. If 

your eligibility requirements were something other than 1,000 hours of service and age 21, 

you will receive credit for any period of time in which you met these eligibility requirements. 

For periods prior to January 1, 1986, the Participant shall be credited with 190 hours of 

service for each month in which he or she was covered under the Collective Bargaining 

Agreement for at least one day, and additional benefits, if any, will be determined by 

multiplying the additional years of pension credit granted under this provision by $14. 

Example: 

Assume an employee is hired by the Company on December 15, 1979 at age 20 and 

completes 1,000 hours before December 14, 1980. Under the rules prior to June 6, 2004, 

this participant would have entered the plan on January 1, 1985, the first January 1 or July 1 

after completing 1,000 and attaining age 25. If this participant is still covered under this Plan 

and under the Collective Bargaining Agreement on June 6, 2004, the participant will receive 

an additional pension credit based on the service between the entry date following the 

completion of 1,000 hours and 21 st birthday and the participant’s actual entry date (i.e. 

between January 1, 1981 and January 1, 1985). The service granted is based on the number 

of hours credited which is equal to 190 hours for each month the participant is covered 

under the Agreement for at least one hour. In this example, the participant will receive 

credit as detailed in the following table: 


April 2011 

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13048101v.6

Calendar Year 

Months 

Hours per 

month 

Total Hours 

Total Additional 

Service Credit 

1981 12 190 2,280 1.0 year 

1982 12 190 2,280 1.0 year 

1983 12 190 2,280 1.0 year 

1984 12 190 2,280 1.0 year 

Total 

4.0 years 

The additional monthly pension credit is $14.00 x 4.0 = $56.00, payable at Normal 

Retirement Age. 

10. What is the Minimum Benefit 

The Minimum Benefit is a total monthly pension of at least $750 from the Plan and the 

Target Plan (see Q&A 52). The $750 Minimum Benefit increased to $900 for retirements on 

or after February 1, 2002 through June 6, 2004 and increased to $1,100 for retirements on 

or after June 7, 2004 through January 31, 2009. Your actual combined benefit from this Plan 

and the Target Plan could exceed the Minimum Benefit. 

For active, full-time employees with a continuous service date on or before June 6, 2004, 

the company will guarantee a minimum monthly benefit of $1,250 per month (or reduced 

pro rata sum based on service at retirement) at age 65 with 30 years of pension credit 

effective for retirements on or after February 1, 2009, subject to the same early retirement 

reduction factors in the Pension Plan. (As a result, an eligible employee’s monthly benefit 

will not be reduced due to age if the employee has at least 30 years of pension credit and 

retires at age 62.) 

For active, full-time employees with a continuous service date on or before June 6, 2004, 

the company will guarantee a minimum monthly benefit of $1,350 per month (or reduced 

pro rata sum based on service at retirement) at age 65 with 30 years of pension credit 

effective for retirements on or after January 1, 2011, subject to the same early retirement 

13048101v.6 


April 2011 

- 8 -

eduction factors in the Pension Plan. (As a result, an eligible employee’s monthly benefit 

will not be reduced due to age if the employee has at least 30 years of pension credit and 

retires at age 62.) 

See the table below for a summary. 

Effective Date 

Minimum Benefit Amount 

Prior to July 26, 1999 No minimum benefit 

July 26, 1999 

$750 per month 

February 1, 2002 $900 per month, for retirements on or after February 1, 

2002, through June 6, 2004 

June 7, 2004 $1,100 per month, for retirements on or after June 7, 2004 

January 1, 2009 $1,250 per month, for retirements on or after February 1, 

2009 

January 1, 2011 $1,350 per month, for retirements on or after January 1, 

2011 

The Minimum Benefit is reduced pro rata if you have less than 30 years of pension credit 

when you retire. For example, if you have 15 years of pension credit when you retire at age 

65, your minimum pension will be 50% (15/30) of the Minimum Benefit. 

As another example, assume that you have 25 years of pension credit when you retire at age 

65 on June 1, 2010. Your Minimum Benefit would be $1,041.66 ($1,250 x 25/30). 

Here's another example. Assume that you retire on February 1, 2012. If you have 30 or more 

years of pension credit and have at least one hour of earnings for work under the CBA on or 

after January 1, 2011, and you retire at age 65, your Minimum Benefit would be $1,350. 


April 2011 

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13048101v.6

Your Minimum Benefit will be reduced by the same percentage as your pension under the 

Plan if: 

• You are not an active employee and begin benefits before 65, or 

• You are an active employee and begin benefits before age 62. 

11. Is there any additional benefit available for more than 30 years of pension credit 

For retirements on or after February 1, 2009, the Company will provide an additional accrual 

of $20.00 per year of pension credit for all years of pension credit over 30 years. Note: 

pension credit for this purpose takes into account service under the future service benefit 

and past service benefit, if eligible. 

This additional accrual is added to the final benefit determined by the future service benefit 

(Q&A 8), the past service benefit (Q&A 9) and the minimum benefit (Q&A 10) payable at 

Normal Retirement Age. 


April 2011 

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13048101v.6

Two examples follow: 

• For example, an employee with 35 years of pension credit who retires at age 65 on or 

after February 1, 2009, and who qualified for a $1,250 pension will receive $1,350 

($1,250 + $100 based on the 5 full years of additional pension credit over 30 years x 

$20). If this same employee with 35 years of pension credit retired on or after January 

1, 2011, and qualified for a $1,350 pension, he would receive $1,450. 

• For example, an employee with 40 years of pension credit who retires at age 65 on or 

after February 1, 2009, and who qualified for a $1,250 pension will receive $1,450 

($1,250 + $200 based on the 10 full years of additional pension credit over 30 years x 

$20). If this same employee with 40 years of pension credit retired on or after January 

1, 2011, and qualified for a $1,350 pension, he would receive $1,550. 

12. What counts as a pension credit 

Beginning January 1, 1975, you must be paid for at least 1700 hours during a calendar year 

to be credited with a full pension credit for that year. The hours paid for earned leave, 

holidays, jury duty and, effective November 1, 1983, union leave count toward the 1700 

hours. Only one hour is credited toward the 1700 hours for each hour worked, even though 

a premium may be paid for such hour. 

For service before January 1, 1975, pension credits were determined in accordance with 

pension agreements then in effect. 

13. What pension benefits do I earn if I receive pay for less than 1700 hours in a calendar 

year 

Your future service benefit for the calendar year in question will be prorated on the basis of 

one-tenth of the benefit for each 170 hours for which pay is received. For example, if you 

13048101v.6 


April 2011 

- 11 -

join the Pension Plan on July 1, 1996, and receive pay for 850 hours between July 1 and 

December 31, you will earn 50% of the $23 credit, or $11.50 in pension benefits for that 

year. Additional hours less than 170 hours are not counted. 

14. What are the eligibility requirements for Early Retirement 

To be eligible for Early Retirement, all of the following must apply: 

• You are an active employee between age 55 and age 65 

• You have 10 or more years of vesting service (see Q&As 22 and 23) 

• You elect to retire. 

15. What level of pension benefits is provided for Early Retirement 

For Early Retirement, an eligible Participant has the option of receiving one of the following: 

• A monthly pension beginning upon the early retirement date, based upon past and 

future service benefits then accrued, and actuarially reduced because of the 

commencement before age 62 

• A monthly pension deferred until age 62 also based upon the past and future service 

benefits accrued up to the early retirement date but without any actuarial reduction 

due to age at retirement. 

In the first case, the pension amount is less than it would be at Normal Retirement because 

there are fewer years in which pension benefits are earned. 


April 2011 

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13048101v.6

16. What does "actuarially reduced" mean, and how does it affect my pension benefits 

“Actuarially reduced” means that a benefit is reduced by a factor, which reflects that 

benefits are expected to be paid over a longer period than the period computed from 

normal retirement age. Your benefit would be computed based on the following factors: 

Age 

Percentage of Normal Retirement 

Benefit You Receive∗ 

55 59.7% 

56 63.8% 

57 68.3% 

58 73.3% 

59 78.9% 

60 85.1% 

61 92.2% 

62 100.0% 

*Refer to Q&A 24 for factors used for Vested Participants 


April 2011 

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13048101v.6

If you retire early and begin your benefits immediately, you will probably receive benefits 

for a longer period of time than if you defer your retirement to age 62. Since the Company 

treats all employees equitably under the Pension Plan, the value of each pension benefit 

defined by the Plan at age 62 for an active participant (Normal Retirement for terminated 

participants who are vested) is the value considered to be set aside for each employee. If 

you retire early, the value of your benefit needs to be stretched over a longer period of 

time. This reduced benefit is the actuarially reduced benefit. 

Example: An employee retires at age 60 with an earned monthly pension payable at age 62 

of $1,250. The pension benefit to be payable to the employee at the time of retirement (age 

60) will be 85.1% of the age 62 benefit or $1,063.75, the actuarially reduced benefit. 

17. What special provisions apply to the Disability Retirement Pension 

A participant must have at least 15 years of service for vesting purposes (see Q&A 22) and 

become and remain totally disabled for a period of six consecutive months with a disability 

that qualifies the participant for Social Security Disability Benefits. 

The Disability Retirement Pension will begin as of: 

• The first day of the seventh month following the date the disability began, as 

determined by the Social Security Administration, or (if later) 

• The first day of the month following the date you submit an application. This provision is 

effective for disabilities that occur on or after January 1, 1999. 

The Disability Retirement Pension is based on all of your service to the date of retirement, 

includes the Minimum Benefit, if applicable, and is not reduced for early commencement. 


April 2011 

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13048101v.6

A Participant must be on the active payroll in a classification covered by the USW bargaining 

unit and apply both to the Huntington Ingalls Benefits Center for Disability Retirement 

benefits and to the Social Security Administration for Disability benefits. 

Pension payments will stop if, prior to age 65, the retired Participant ceases to be totally and 

permanently disabled as determined by the Social Security Administration. 

18. If I am disabled, may I elect another type of retirement option in lieu of disability 

retirement 

Yes. You may elect any benefit for which you are eligible. For instance, you may elect Early 

Retirement; however, your benefit will be reduced as described in Q&As 16 and 24. 

Moreover, if you applied to the Social Security Administration for a determination that you 

are eligible for a Disability Retirement Benefit, you may not apply for an Early Retirement 

Benefit until the application has been pending for four months. If the Social Security 

Administration subsequently determines you are disabled, your Disability Benefit may be 

reduced to reflect any Early Retirement Benefits you received. 

19. What is Post-Normal Retirement 

Post-Normal Retirement occurs after Normal Retirement (see Q&A 6). Pension benefits will 

continue to accrue on the same basis after Normal Retirement Age. You may work beyond 

Normal Retirement, but payment of your benefit will be postponed for each month you 

work beyond Normal Retirement, and will not be made up after you retire. However, if you 

should ever be credited with less than 40 hours of service in any calendar month, you will be 

entitled to a benefit for that month, provided you notify the Huntington Ingalls Benefits 

Center (HIBC). Payment of the amount can be deferred until you retire under the Plan. 


April 2011 

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13048101v.6

20. For all types of retirement, are retirement benefits reduced by any Social Security or 

Workers' Compensation benefits I may receive 

Pension benefits will not be reduced or affected by any benefit to which you are entitled 

under Title II of the Federal Social Security Act. However, on and after age 65, pension 

payments will be reduced by any amounts received under Workers' Compensation or other 

similar statutory laws for total disability. However, no reduction will be made for scheduled 

statutory payments for the loss of, or 100% loss of use of, any bodily member. 

21. Are any pension benefits taxable 

Generally, the pension you receive is considered ordinary income and you may be required 

to pay income tax on it. The tax depends on the pension you receive and the amount of 

other income, for example, from wages and interest. However, if you have accumulated 

contributions made to the prior pension plan that you have not withdrawn, a portion of 

your pension may be tax-free. 

Unless you elect otherwise, federal income tax will be withheld from your monthly pension 

payments based on the assumption that you are married and you are claiming three 

exemptions. 

You may request to have federal taxes withheld from your monthly pension check on a 

different basis, or to have no taxes withheld from your monthly pension check, by 

completing a form W-4P. If you are a resident of Virginia and elect federal withholding, you 

must also elect a state tax withholding. If sufficient withholdings are not made, you may 

have to file a quarterly estimated tax return. 

After the end of each year, you will receive a form 1099-R that reflects the pension paid to 

you and any taxes withheld. You should consult your tax advisor for further information 


April 2011 

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13048101v.6

about your individual tax situation. 

Vesting 

22. What is "vesting" and when will I become vested 

"Vesting" means acquiring a non-forfeitabIe right to receive a pension at some future date. 

Under the terms of the Pension Plan, you acquire this non-forfeitable vested right to receive 

a future pension after you have completed five years of service after age 18, provided you 

have not incurred a break in service (see Q&A 26). These five years of service do not need to 

be consecutive. A participant will be vested at his Normal Retirement Age regardless of 

years of service, if he is employed at that time. 

23. What counts as a year of service for vesting purposes 

Every period of 12 consecutive months, beginning with your date of employment or your 

18th birthday, whichever is later, in which you have been paid or had an unpaid authorized 

absence counts as a year of service. (See Q&A 2 and Q&A 3 for definitions of "hours of pay" 

and "unpaid authorized absence.") 

24. What happens if my employment is terminated before I am eligible for retirement and I 

do not return to work 

If you are vested at termination, you will be eligible to receive a pension benefit in the 

future, and you may elect to receive: 


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13048101v.6

• A pension at your Normal Retirement Age, based on your past and future service 

benefits accrued as of the date of your termination, 

• A pension at any age from age 55 to your Normal Retirement Age (but not earlier than a 

date on which you would otherwise be eligible for early retirement) based on an 

actuarially reduced equivalent of the pension payable at your Normal Retirement Age, 

or 

• A payment in a lump sum of any contributions that you may have made to the prior 

pension plan, plus interest, and a pension payable in accordance with the conditions 

above, but reduced by the amount attributable to such contributions. If you are 

married, your spouse must consent to your withdrawal of such contributions on a form 

provided by the Huntington Ingalls Benefits Center (HIBC). 

Your deferred vested benefit would be computed based on the following factors: 

Age at Commencement 

of Pension 

Percentage of Normal 

Pension Benefit 

55 45.8% 

56 48.9% 

57 52.4% 

58 56.2% 

59 60.5% 

60 65.3% 

61 70.7% 

62 76.7% 

63 83.4% 

64 91.2% 

65 100.0% 

Example: An employee leaves the company at age 45 with an earned monthly pension 

benefit at age 65 of $550 and elects to begin to receive a benefit at age 63. The monthly 

pension benefit will be 83.4% of $550, or $458.70. 


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13048101v.6

If you are not vested at termination, you are not eligible for a pension benefit. 

25. What happens if I terminate and return to work 

Upon your return to the Company, you will be credited for vesting purposes with your years 

of service prior to your termination under the following conditions: 

• You were vested when you terminated, 

• You returned to work prior to incurring a break in service, which is a 12-month period 

used for vesting computation purposes during which you have no pay or unpaid 

authorized absence, or 

• You incurred a break in service, but the time between your termination and your return 

to work is less than five years. 

Note: Certain periods of absence due to Family & Medical Leave may not result in a break in 

service. (See Q&A 3) 

If you terminate employment and begin receiving a benefit under the Pension Plan, your 

benefit may be suspended. If you commence your benefit under the Plan upon termination 

and you are reemployed by the Company, payment of your annuity benefit will be 

suspended if: 

• You are rehired as an employee, 

• You earn 40 or more vesting hours in a calendar month, and 

• Less than 12 consecutive months have elapsed since you terminated, during which time 

you performed no services in any capacity (including, for example, service as an 

independent contractor, leased employee or job shopper; any service with the Company 

will interrupt the measurement of the 12 consecutive month period). 

13048101v.6 


April 2011 

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You will receive a notice of suspension before any benefit payments are suspended. Note 

that even if 12 or more months elapse between your termination and your rehire as an 

employee, your benefit payments may still be suspended. When you receive your 

suspension notice, you will also receive a certification form. If you have been away from the 

Company in any capacity for 12 or more months, you will need to sign and return the form. 

When the HIBC receives this certification, your benefit payments will resume and you will 

receive a make-up payment of any suspended benefit payments. 

26. If I am reemployed after a break in service, how do I become eligible to 

re-enter the Plan 

If you are reemployed after a break in service and you have previously met the eligibility 

requirements (see Q&A 1), you will immediately reenter the Plan upon your rehire date. 

However, if you had not previously met the eligibility requirements, you must complete a 

year of service (see Q&A 23) after the reemployment date and fulfill the other eligibility 

requirements (see Q&A 1). After the completion of such requirements, you will become a 

Plan participant as of the following January 1 or July 1. 

27. If, after retirement, I am reemployed by the Company, what will happen to my pension 

benefits 

If you are reemployed by the Company, all pension benefits will cease for any month during 

which you are credited with at least 40 hours of service. When you again retire, your 

pension amount will be determined based on credits earned prior to your original 

retirement date and those credits earned during reemployment, and reduced by the 

actuarial equivalent of the pension benefits previously received. 


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13048101v.6

28. Under what circumstances would my accumulation of pension benefits under this Plan 

stop 

The accumulation of your benefits under this Plan would stop: 

• If your employment is terminated, 

• If you transfer to an occupation not included in the bargaining unit, 

• If you retire, or 

• If the Pension Plan itself is terminated or amended to the extent that you would no 

longer be eligible to participate. 

29. If I made contributions to the Plan prior to July 1, 1969, how will my benefit 

be affected 

In the event of your death prior to your Normal Retirement date and while you are not 

covered by the Qualified Pre-retirement Survivor’s benefit (refer to Q&A 44), your 

unwithdrawn Accumulated Contributions will be paid in a lump sum to your spouse. 

In the event of your death before your Normal Retirement date while you are eligible for a 

Qualified Pre-retirement Survivor’s Annuity, your spouse may elect 

to withdraw your Accumulated Contributions in a lump sum and to receive a 

Pre-retirement Survivor’s Annuity, which would be actuarially reduced by the amount 

attributable to such Accumulated Contributions. 

30. Under what circumstances would I fail to receive anticipated benefits under this Plan 

It is possible that you would not receive your anticipated pension benefits if: 


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13048101v.6

• The Pension Plan is terminated by the Company (see Q&A 49). However, Plan benefits 

are partially guaranteed by the Pension Benefit Guaranty Corporation (see Q&A 50). 

• You and/or your beneficiary do not submit the necessary documentation or complete 

the claim forms required. You or your beneficiary will, however, receive benefits when 

these forms are submitted. 

• You apply for Disability Retirement and cannot substantiate the claimed disability. You 

may still qualify for the other types of benefits, however. 

• You are reemployed for more than 40 hours a month by the Company or a related 

company after retirement benefits begin. 

• Your employment is terminated before you are vested (i.e., before you have completed 

five years of service). 

• The Pension Plan itself is changed to the extent that your eligibility no longer exists. 

(However, future changes cannot take away benefits already earned.) 

In addition, if you accept the standard form of pension (Joint and Survivor) and your spouse 

predeceases you on or after the date your pension is due to commence, you will continue to 

receive a reduced pension for your lifetime and there will be no Survivor’s Annuity. 

Application for Benefits and Methods of Payment 

31. How do I apply for Pension Plan benefits 

Once you decide on your retirement date, call the Huntington Ingalls Benefits Center HIBC at 

1-877-216-3222 (preferably 90 days before your retirement date) to provide notice of your 

intent to retire and request information on processing your retirement. Your retirement 

date can be the first day of any month. You must also complete and return all of the 

required forms as described in your retirement kit. 


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13048101v.6

This process applies to all types of benefit commencements (except for benefit 

commencements by surviving spouses after the death of a participant who had not yet 

commenced benefits). 

As a participant in the Plan, it is your responsibility (or your surviving spouse’s responsibility, 

if applicable) to call the HIBC. The actual date your benefit payments begin depends on 

when you complete and return all of the required forms included in your retirement kit. 

Failure to call the HIBC and/or failure to return the required forms as described in your kit 

may result in a delay in payment. 

Please be prepared to provide the following information when you call the HIBC: 

• Your name and home address 

• Your telephone numbers (work and home) 

• Your Social Security number 

• Your current marital status 

• Your spouse’s name, Social Security number, and date of birth (if you are married) 

• Your anticipated last day of work 

• Your benefit commencement date (the date that you would like payments to begin) 

• Your beneficiary information 

⎯ Please provide your spouse’s name, date of birth, and Social Security number. 

To complete the retirement process, you will need to provide a legible copy of your birth 

certificate or passport. In addition, if you are married, you will need to provide: 


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13048101v.6

• A legible copy of your spouse’s birth certificate or passport 

• A legible copy of your marriage certificate. 

32. What types of payment options can I choose from to receive my pension benefits 

There are several types of pension benefit payment options available: 

• Straight Life Annuity 

• Joint and Survivor (J&S) Annuity (50%, 75% or 100%) 

• Joint and Survivor (J&S) with Pop-Up Annuity (50%, 75% or 100%) 

• Level Income Annuity 

• Ten Year Certain and continuous Annuity 

• Lump Sum 

33. What is a Straight Life Annuity 

A Straight Life Annuity is a monthly pension payable only to the Participant during the 

lifetime of the Participant. There are no survivor benefits. If the Participant is married at 

retirement, the Participant’s spouse must consent in writing to this form of distribution. If 

the Participant is single at retirement, the benefit normally will be paid as a Straight Life 

Annuity, unless the Participant elects one of the other applicable forms of payments. 

34. What is a Joint and Survivor (J&S) Annuity 


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13048101v.6

A Joint and Survivor (J&S) Annuity is a Life Annuity actuarially reduced to pay a monthly 

benefit to a Participant for the Participant’s lifetime and, upon the Participant’s death, to 

pay the Participant’s spouse or other named beneficiary a lifetime benefit equal to 100%, 

75% or 50% (depending on what was elected) of the Participant’s monthly benefit. The 

benefit is actuarially reduced to reflect a benefit payment period that may be longer than 

the Participant’s lifetime. If your spouse or other named beneficiary dies before you but 

after your benefit payments are scheduled to begin, the Plan pays benefits for your lifetime 

only. 

If the Participant elects a beneficiary other than their spouse, the IRS rules limit the level of 

the survivor benefit and may prevent the election of a joint annuitant who is significantly 

younger than the Participant for joint and survivor options other than the 50% option. 


• Normal retirement at age 65 with 30 years of Plan participation, spouse age 60 and you 

retire after February 1, 2009 and elect a 50% J&S: 

Total monthly pension credits accrued: 

$1,250 x J&S reduction factor of 84.7% 

Participant’s normal retirement monthly pension benefit: $1,058.75 

Spouse's monthly 50% death benefit: $529.38 

• Early retirement at age 58 with 20 years of Plan participation, spouse age 56, and you 

retire after February 1, 2009 and elect a 75% J&S: 


$833.33 x early retirement factor of 73.3% = Age 58 life annuity benefit 

Age 58 life annuity benefit of $610.83 x J&S reduction factor of 86.49% 

Participant’s early retirement monthly pension benefit: $527.76 

Spouse's monthly 75% death benefit: $395.82 

35. What is a Joint and Survivor (J&S) with Pop-Up Annuity 


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13048101v.6

A Joint and Survivor (J&S) with Pop-Up Annuity is a Life Annuity actuarially reduced to pay a 

monthly benefit to a Participant for the Participant’s lifetime and, upon the Participant’s 

death, to pay the Participant’s spouse a lifetime benefit equal to 100%, 75% or 50% 

(depending on what was elected) of the Participant’s monthly benefit. The benefit is 

actuarially reduced to reflect a benefit payment period that may be longer than the 

Participant’s lifetime. If the Participant’s spouse dies before the Participant but after benefit 

payments are scheduled to begin, the annuity “pops-up” (increases) to the Straight Life 

Annuity amount prospectively that was determined at retirement. 

Note: this option only available if the participant is married and elects his spouse as the 

beneficiary. 


• Normal retirement at age 65 with 30 years of Plan participation, spouse age 60 and you 

retire after February 1, 2009, and elect a 50% J&S with Pop-Up: 


$1,250 x J&S reduction factor of 83.4% 

Participant’s normal retirement monthly pension benefit: $1,042.50 

Spouse pre-deceases Participant, so the first of the month following the spouse’s death 

the Participant’s benefit pops-up to the Straight Life Annuity amount: 

Participant’s monthly pension benefit pops-up to $1,250.00 

• Early retirement at age 58 with 20 years of Plan participation, spouse age 56, and you 

retire after February 1, 2009, and elect a 75% J&S with Pop-Up: 


$833.33 x early retirement factor of 73.3% = Age 58 life annuity benefit 

Age 58 life annuity benefit of $610.83 x J&S reduction factor of 85.4% 

Participant’s early retirement monthly pension benefit: $521.65 

Participant pre-deceases Spouse, so the first of the month following the Participant’s 


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13048101v.6

death: 

Spouse’s monthly 75% death benefit: $391.24 

If the Participant is married when the Participant retires, the Participant’s benefit normally 

will be paid on a 50% joint and survivor basis with the Participant’s spouse as the designated 

survivor, unless the Participant elects one of the other forms of payment for which the 

Participant qualifies. If the Participant is married when the Participant retires and chooses a 

form of payment other than a 50%, 75% or 100% joint and survivor annuity or 50%, 75% or 

100% joint and survivor annuity with pop-up with the Participant’s spouse as beneficiary, 

the Participant’s spouse must provide written, notarized consent. 

36. What is a Level Income Annuity 

The Participant receives a greater monthly payment for the months before the Participant 

reaches age 62, the Social Security early retirement age. At age 62, the Participant’s 

monthly payment amount is reduced by an estimate of the Participant’s age 62 Social 

Security benefit. If the Participant commences the Participant’s Social Security benefit at 

age 62 and it is approximately equal to the reduction provided in the Participant’s 

retirement benefit calculation, this option enables the Participant’s income to “level out” 

pre- and post-age 62. If the Participant is married when the Participant retires, the 

Participant’s spouse must consent in writing to this form of distribution. 

Here’s how the Participant’s benefit would be calculated: 

• The Participant’s pre-62 Monthly benefit 

equals 

The Participant’s benefit calculated under the straight life annuity form of payment 

(reduced, as applicable, for early retirement) 

plus 


April 2011 

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13048101v.6

The Participant’s estimated Social Security benefit 

multiplied by 

A Level Income annuity factor based on the Participant’s age 

• The Participant’s post-62 monthly benefit 

equals 

The Participant’s pre-62 monthly benefit 

minus 

The Participant’s estimated Social Security benefit 

The Participant’s first post-62 benefit payment will take place on the first of the month 

coincident with or following the Participant’s 62 nd birthday. The Participant will not be 

offered this option if the monthly post-62 benefit using an estimated Social Security benefit 

is $25 or less. 

Example: Assume the Participant retires at age 60 with a straight life annuity benefit of 

$1,000 per month, and the Level Income annuity factor is 0.85. Further, assume the Plan 

estimate of the Participant’s age 62 Social Security benefit is $500 and the Participant’s 

actual age 62 Social Security payment is $550. 

The Participant’s retirement benefit calculation will show Plan payments for a level income 

option as follows: 

• Pre-62 monthly benefit from the Plan 

Straight life annuity of $1,000 

13048101v.6 


April 2011 

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plus 

$500 x 0.85 = $1,425 

• Post-62 monthly benefit from the Plan 

$1,425 - $500 = $925 

If the Participant elects this option and commences the Participant’s actual Social Security 

benefit at age 62, the Participant’s total monthly income will be as follows: 

• Pre-62 monthly benefit from the Plan = $1,425 

• Post-62 total monthly benefit 

Post-62 monthly benefit of $925 

plus 

the Participant’s actual Social Security benefit of $550 = $1,475 

As a result, the Participant’s pre- and post-62 income remains approximately level. 

Note: The age at which the Participant may begin the Participant’s Social Security benefits 

depends on the year of the Participant’s birth. Be sure to confirm the Participant’s eligible 

start date with the Social Security Administration. Social Security benefits that start before 

age 65 are reduced, because payments are made over a longer period of time. The 

Participant’s actual Social Security benefit may be more or less than the estimate used to 

determine the Participant’s Plan benefit under the level income option. However, the 

Participant’s level income payments will not be adjusted if that is the case. 

37. What is a Ten Year Certain and Continuous Annuity 


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13048101v.6

The Participant receives a monthly benefit for the Participant’s lifetime. Electing this form 

of payment means there will be a reduction in the amount of the Participant’s straight life 

annuity benefit based on the Participant’s age at retirement. 

If the Participant dies before 120 payments have been made, the remainder of the 120 

payments will be paid to the Participant’s designated beneficiary. If the Participant’s 

beneficiary dies after the Participant but before 120 payments have been made, the 

remainder of the 120 payments will be paid to the Participant’s beneficiary’s estate in a 

lump sum. If the Participant’s beneficiary predeceases the Participant before the 120 

payments have been made, the Participant may designate another beneficiary, provided the 

Participant obtains the Participant’s spouse’s consent, if applicable. The Participant may 

designate your estate or a trust as the Participant’s designated beneficiary for this payment 

option. If the Participant is married when the Participant retires, the Participant’s spouse 

must consent in writing to this form of distribution. 

38. What is a Lump Sum and when am I eligible 

If the present value of the Participant’s accrued benefit is equal to or less than $5,000, the 

Participant can elect to receive the Participant’s benefit as a lump sum. 

Electing a lump sum payment means the Participant is electing to receive, in a single 

payment, the actuarial present value of the straight life annuity benefit – there will be no 

further payments from the Plan. 

If the Participant is married when the Participant retires, the Participant’s spouse must 

provide notarized consent in writing to this form of distribution. The lump sum amount will 

depend on the Participant’s age at retirement, the interest rate used and the mortality 

table. For a list of the applicable interest rates, please access HII Benefits Connect at 

http://hiibenefits.com, or contact the HIBC. If the Participant elects the lump sum form of 

payment for the Participant’s Program benefit, the Participant must make a direct rollover 

to an IRA or to another qualified plan in order to defer income taxes on the payment. Any 

taxable amount not directly rolled over will have 20% automatically withheld for federal 

income taxes. 


April 2011 

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13048101v.6

39. What kind of pension is available to an unmarried Participant 

Unmarried participants may choose a Straight Life Annuity, Joint and Survivor, Level Income, 

Ten Year Certain and Continuous or Lump Sum, if eligible. The standard pension for an 

unmarried participant is a Straight Life Annuity. 

40. What kind of benefit is available to a married Participant 

A married participant may choose a Straight Life Annuity, Joint and Survivor, Joint and 

Survivor with Pop-Up, Level Income, Ten Year Certain and Continuous or Lump Sum, if 

eligible. The standard pension for a married participant is a 50% J&S Annuity with the 

participant’s spouse as the designated beneficiary. The participant’s spouse must provide 

written, notarized consent, if the participant chooses a form of payment other than a 50%, 

75% or 100% J&S Annuity. 

41. How are J&S Benefits with and without Pop-Up affected by the death of a spouse 

If the spouse dies before the Participant is eligible to begin his or her pension, he or she will 

be considered unmarried unless he or she re-marries prior to beginning his or her pension. 

If the spouse dies after the Participant’s pension commencement date, the J&S benefits 

(without pop-up) are not affected. A Participant will continue to receive the same level of 

benefits elected at the time of retirement. No change can be made in the form of pension 

after commencement of the pension, for any reason, including death of the spouse or 

divorce. 

If the spouse dies after the Participant’s pension commencement date, the J&S with Pop-Up 

benefits will pop-up (increase prospectively) to the Straight Life Annuity amount determined 

at retirement. No change can be made in the form of pension after commencement of the 

pension, for any reason, including death of the spouse or divorce. 

13048101v.6 


April 2011 

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If the Participant marries after commencement of pension benefits, no survivor benefits are 

paid to a surviving spouse upon death of the Participant, even if the J&S (with or without 

Pop-Up) form of pension was elected. Only the spouse who was married to the Participant 

on the pension commencement date is eligible for J&S benefits (with or without Pop-Up). 

42. As a married Participant do I have the option to reject the J&S Annuity 

Yes, you may reject a J&S Annuity and elect any of the other payment options listed in Q&A 

32 provided you make this election on a form provided by the Huntington Ingalls Benefits 

Center before the date your pension is due to commence. This election will be effective 

immediately. However, no election to reject a J&S Annuity will be effective without the 

explicit, irrevocable, written consent of the Participant’s spouse. 

If you begin receiving benefits prior to your Normal Retirement Age and subsequently 

return to work, you may make a second election with respect to the benefits attributable to 

your reemployment. 

43. If I have rejected the J&S Annuity, do I have the right to change my decision 

Yes, you may change your election anytime during your "election period" up to the Pension 

Benefit Commencement date. The "election period" is at least 30 days from the date your 

pension election information is provided to you (unless you waive the 30-day period in favor 

of 7 days). On or after the Pension Benefit Commencement Date, you cannot make any 

changes. 

44. What benefits will my spouse receive if I die before I retire 


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13048101v.6

Any vested Participant who is married at the time of death, and dies before payment of any 

benefits under the Plan commences, will automatically be covered by a Qualified Preretirement 

Survivor Annuity (QPSA), as follows: 

• In the case of a Participant with 10 or more years of service who dies while an employee 

after reaching age 55, the QPSA is a monthly benefit payable to the Participant’s 

surviving spouse (commencing on the first day of the month of death) equal to 50% of 

the Participant’s earned pension at the time of death, with no reduction for 

commencement of such pension prior to the Participant having attained age 62. 

• In the case of a Participant who does not qualify under the foregoing sentence, the 

following applies: 

⎯ If the Participant dies before becoming eligible for Early or Normal Retirement, the 

QPSA is a monthly benefit payable to the Participant’s surviving spouse equal to 

50% of the reduced amount the participant would have received if he had 

terminated employment at the date of death (unless he terminated his employment 

prior to his death, in which case the actual termination date is used), survived to the 

earliest date he would have been able to retire under the Plan, elected a J&S 

Annuity on such date, and died the next day. 

⎯ If a vested Participant dies after becoming eligible for Early or Normal Retirement, 

the QPSA is a monthly benefit payable to the Participant's surviving spouse equal to 

50% of the reduced amount the Participant would have received if he had retired 

with an immediate J&S Annuity on the day before his death. 

These latter two forms of QPSA above will become payable as of the later of: 

• The first of the month following the date of death, or 

• The earliest date the participant would have been able to retire under the Plan and 

receive a benefit. 


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13048101v.6

The spouse may elect to defer commencement of the QPSA payments. 

If any vested Participant who is married at the time of death and dies before payment of any 

benefit under the Plan commences after a valid election is made and the election is the 

100% or 75% joint and survivor (with or without pop-up), the surviving spouse will receive 

the higher (75% or 100%) survivor benefit. 

45. What rights does my spouse have under the Plan 

Under some circumstances, Plan benefits (including those due to a surviving spouse) may 

not be paid at certain times or in certain forms without the consent of the Participant’s 

spouse. Such spousal consent generally must be in writing and notarized, or witnessed by a 

Plan representative. Some instances when spousal consent is required have been explained 

above. Various benefit application forms will contain further information regarding the 

spousal consent requirement. 

46. May I transfer any of my interest in the Plan 

No, generally you may not transfer your interest in the Plan — that is, you may not sell it, 

use it as collateral, or otherwise give it away. Your creditors may not attach or garnish your 

interest in the Plan. However, there are two significant exceptions: 

• Once you are in pay status, you may direct that a portion of your benefit be applied to 

pay certain expenses such as medical premiums. The election must be voluntary, in 

writing, and revocable. Please contact the Huntington Ingalls Benefits Center for details. 

• The Employee Retirement Income Security Act (ERISA) requires the plan administrator 

to obey qualified domestic relations orders (QDROs), Internal Revenue Service (IRS) levy, 

or garnishment orders under the Federal Debt Collection Procedures Act or the 

Mandatory Victims Restitution Act. A QDRO is a legal judgment, decree, or order that 

recognizes the rights of someone other than the Plan participant (namely, an alternate 

13048101v.6 


April 2011 

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payee) under the Pension Plan with respect to child or other dependent support, 

alimony, or marital property rights. 

If you become legally separated or divorced, a portion of your benefits under the Pension 

Plan may be assigned to someone else to satisfy a legal obligation you may have to a 

spouse, former spouse, child, or other dependent. These payments may begin while you are 

still employed, but only after meeting the specific retirement eligibility requirements. 

There are specific requirements that a QDRO must meet to be accepted by the plan 

administrator. In addition, there are specific procedures regarding the amount and timing of 

payments. 

The Huntington Ingalls Industriest Domestic Relations Group administers QDROs. If you are 

subject to such an order, call the Huntington Ingalls Industries Domestic Relations Group at 

1-877-324-4255 to request a copy of the Plan’s QDRO procedures and a model QDRO for 

your use. Issues pertaining to the qualified status of a domestic relations order may be 

pursued in federal court. 



If your claim for a benefit is denied, in whole or in part, you (or your beneficiary) must 

receive a written explanation of the reason for the denial from the plan administrator. This 

written notice will include: 


• References to plan provisions on which the denial is based 


April 2011 

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13048101v.6

• A description of additional materials or information that are necessary 

• Procedures for appealing the decision. 

You or your authorized representative may review all documents related to any denial of 

benefits. 

You must file written notice with the plan administrator to claim your benefits under the 

Plan. Your written notice should be sent to: 

Administrative CommitteeHuntington Ingalls Industries, Inc. 


Newport News, VA 23607 

You will receive notice of the plan administrator’s decision on your claim for benefits in a 

reasonable time, but not later than 90 days after the plan administrator receives your claim. 

In special cases, the plan administrator may require an additional 90 days to consider your 

claim. You will be notified if extra time is required. 

Appealing Claims Decisions 

If you disagree with the plan administrator’s decision regarding your benefits claim, you 

have 65 days from the receipt of the original denial to request a review (or from the 

expiration of the review period if the plan administrator failed to make a decision or notify 

you of an extension). This request should be made in writing and sent to the plan 

administrator at the following address: 






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13048101v.6

Your request should state all the grounds on which your request for a review is based. You 

should state any facts, address any issues, and make any comments that support your 

request. Besides having the right to appeal, you or your authorized representative also have 

the right to examine and obtain copies of certain plan documents and information relevant 

to your claim at locations and times convenient to the plan administrator. 

The claim appeal will be reviewed by the plan administrator and ordinarily you will be 

notified of a decision within 60 days. If you do not receive a decision within this time period, 

your claim appeal is considered to have been denied. In special cases, the plan administrator 

may require an additional 60 days to consider your appeal. You will be notified if extra time 

is required. 

The final decision will be sent to you in writing, together with an explanation of how the 

decision was made. The decision of the plan administrator is final and conclusive. 

If your claim appeal is denied, you may bring legal action in court provided you abide by 

certain time limitations. Specifically, you may not bring legal action against a party under the 

Plan after the latest of: 


• 90 days from the final disposition of the claim by the Administrative Committee. 


otherwise applicable statute of limitations expires, whichever comes first. For details on 

when a claim arises, see the plan document. 


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13048101v.6

Administration of the Plan 

48. How is the amount of the Company’s periodic contribution determined 

You make no contributions to the Pension Plan. The Company pays all costs by making 

contributions to a trust fund. 

Plans like the Pension Plan are required to meet minimum funding requirements established 

by the U.S. Government. The amount of the contribution is determined with the help of an 

independent actuary who uses personnel data and the provisions of the plan to determine 

the amount the Company must contribute to cover the benefits provided. 

The assets of the Pension Plan are held in trust by an independent trustee. The money in the 

trust can be used only to pay benefits and administrative costs of the Plan and cannot be 

returned to the Company until all benefit obligations have been satisfied. 

The retirement plan trustee is: 

State Street Bank Corporation 

225 Franklin Street 

Boston, MA 02110 

Your benefits are also protected by a federal agency, the Pension Benefit Guaranty 

Corporation (PBGC). The Company pays an annual premium to the PBGC to guarantee 

payment of your benefits. Refer to Q&A 50 for more information on the PBGC guarantee. 

49. Can the Plan be amended or terminated 


April 2011 

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13048101v.6

Generally, the Plan may be amended or modified, in whole or in part, by the Company at 

any time, although the current Collective Bargaining Agreement provides that during the 

term of such Collective Bargaining Agreement, neither the Company nor the union will 

demand any change to the Plan, except as required by law. No amendment or modification, 

however, can make it possible for any part of the Pension Fund to be used for or diverted to 

purposes other than for the exclusive benefit of Participants or their beneficiaries, except 

that contributions made by the Company to the Pension Fund may be returned to the 

Company: 

• If they are made due to a mistake in fact 

• If they are disallowed as deductions from the Company’s taxable income 

• If the Plan is terminated and assets remain after all benefits are paid. 

While it intends to continue the Plan indefinitely, the Plan may be terminated, in whole or in 

part, by the Company for any reason at any time subject to the limitation described above. 

In the event the Plan is so terminated, in whole or in part, the rights of all affected 

participants and pensioners and their beneficiaries to benefits are automatically fully vested 

to the extent of the Plan’s assets. If the Plan is completely terminated, the assets of the Plan 

will be allocated for the purpose of paying benefits in the order required under federal law 

until all benefits have been provided for or the Plan’s assets have been exhausted. Any 

assets remaining after all benefits have been provided for will be returned to the Company. 

Any amendment or termination of the Plan will be adopted pursuant to a resolution or 

written action approved by the Company and will be effective on the date stated in such 

resolution or written action. Any documents implementing the amendment or termination 

may be executed by any officer of the Company or such other person given authority by the 

Company. 

50. What is the Pension Benefit Guaranty Corporation (PBGC) 


April 2011 

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13048101v.6

Benefits under this Plan are insured by the Pension Benefit Guaranty Corporation (PBGC) if 

the Plan terminates. Generally, the PBGC guarantees most vested normal retirement 

benefits, early retirement and certain disability and survivors’ pensions. However, the PBGC 

does not guarantee all types of benefits under covered plans, and the amount of benefit 

protection is subject to certain limitations. 

The PBGC guarantees vested benefits at the level in effect on the date of plan termination. 

However, if a plan has been in effect less than five years before it terminates, or if benefits 

have been increased within the five years before plan termination, the whole amount of the 

plan's vested benefits or the benefits increase may not be guaranteed. In addition, there is a 

ceiling, which is adjusted periodically, on the amount of monthly benefit that the PBGC 

guarantees. 

For more information on the PBGC insurance protection and its limitations, contact the 

PBGC. Inquiries to the PBGC should be addressed to the Office of Communications, PBGC, 

1200 K Street NW, Washington, DC 20005. You may also reach the PBGC Office of 

Communications by calling 1-202-326-4000. 

51. Who is the administrator of the Plan 

The Administrative Committee is the administrator and named fiduciary of the Plan. The 

address, telephone number, and employer identification number are: 



1-877-216-3222 

EIN: 90-0607005 

The Committee has the exclusive responsibility and complete discretionary authority to 

control the operation and administration of the Plan, with all powers necessary to enable it 

to properly carry out such responsibility, including, but not limited to, the power to construe 

the terms of the Plan, to determine status, coverage, and eligibility for benefits, and to 

resolve all interpretive, equitable, and other questions that arise in the operation and 

13048101v.6 


April 2011 

- 40 -

administration of this Plan, including all questions of fact relating to such questions. All 

actions or determinations of the Committee are final, conclusive, and binding on all persons, 

subject only to the Plan's appeals procedure (see Q&A 47). 

52. What is the Target Plan and how does it affect my benefit under this Plan 

You should examine the SPD for the Huntington Ingalls Industries, Inc. Newport News 

Operations Target Benefit Plan for Employees covered by United Steelworkers, Local 8888 

Collective Bargaining Agreement (the "Target Plan") for a complete description. If you are 

eligible to participate in both the Target Plan and the Pension Plan, the Company will make 

contributions to an account established for your benefit under the Target Plan. When you 

are ready to retire, your account balance in the Target Plan will be transferred to this 

Pension Plan to help fund the Minimum Benefit. 

53. Do veterans have any special rights under the Plan 

If you are a Plan participant, leave employment to serve in one of the "uniformed services" 

of the United States, give notice, if possible, and promptly return to work for an Employer, 

you may be eligible to have your uniformed services count as service under the Plan. You 

should check with the Huntington Ingalls Benefits Center as soon as possible following your 

return from uniformed services to determine if you qualify and, if so, to complete the 

necessary paperwork. 

To the extent permitted under the Heroes Earnings Assistance and Relief Tax Act of 2008, if 

you die during a period of qualifying military service, your beneficiary will be entitled to any 

additional benefits, other than benefit accruals, as if you were reemployed on the date 

immediately preceding your death and then terminated employment on the date of your 

death. Further, if you become totally and permanently disabled or die during a period of 

qualifying military service, your benefit will include the service for benefit accrual purposes 

that you would have received if you were reemployed by the Company on the date 

immediately preceding your disability or death, as applicable, and terminated employment 

on the date of your disability or death. 

13048101v.6 


April 2011 

- 41 -

Rollovers by Non-Spouse Beneficiaries 

In the event that your designated beneficiary who is not your surviving spouse or former spouse 

becomes eligible to make a direct rollover of his or her eligible rollover distribution under the 

Plan, such beneficiary may elect to make a direct rollover only to an individual retirement 

account described in Section 408(a) of the Internal Revenue Code (the “Code”) or an individual 

retirement annuity described in Code Section 408(b) (other than an endowment contract). 

Your Rights 

You have certain legal rights which are explained under “Your ERISA Rights” in the 

Administrative Information section of this Employee Handbook. 


April 2011 

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13048101v.6










Introduction ......................................................................................................................... 1 

Eligibility ............................................................................................................................ 3 

Payment of Target Benefit .................................................................................................. 4 

Amount of Target Benefit ................................................................................................... 5 

Vesting ................................................................................................................................ 8 

Appeals Procedure .............................................................................................................. 8 

Administration of the Plan ................................................................................................ 11 

Your ERISA Rights .......................................................................................................... 13

Introduction 


Newport News Operations Target Benefit Plan for Employees Covered by United Steel, 

Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service 


Agreement (the “Plan”). The Plan was established consistent with the provisions of the 

previous and current collective bargaining agreements. All plans are included in the 

current agreement between Northrop Grumman Shipbuilding, Inc. (and any successor 

entity due to name change) (the “Company”) and the United Steelworkers, Local 8888, 

the bargaining agent, which agreement is effective October 27, 2008, through March 10, 

2013 (the “Collective Bargaining Agreement”). A copy of the Collective Bargaining 

Agreement is available for examination upon written request to Northrop Grumman 

Shipbuilding, Inc. (or any successor entity), Labor Relations Office O21, 4101 

Washington Ave., Newport News, VA 23607, 1-757-380-2000. Contributions are paid to 

the Plan only for participants that are projected to have a Target Benefit (see Q&A 10). 

The Plan is maintained by Huntington Ingalls Industries, Inc. (the “Parent Company”) for 

the benefit of certain individuals employed by the Company, a subsidiary of the Parent 

Company. The Parent Company and the Company were previously subsidiaries of 

Northrop Grumman Corporation, at which time the Plan was sponsored by the Company. 

On March 31, 2011, the Northrop Grumman Corporation spun-off the Parent Company 

and its subsidiaries, including the Company, and the Parent Company became the sponsor 

of the Plan. 

Throughout this SPD, references are made to the Huntington Ingalls Industries, Inc. 

Newport News Operations Pension Plan for Employees Covered by United Steelworkers, 

Local 8888 Collective Bargaining Agreement (the “Pension Plan”). 

This SPD is intended to help you understand the main features of the Plan. It should not 

be considered a substitute for the plan document, which governs the operation of the 


April 2011 

-1-

Plan. The plan document sets forth all the details and provisions concerning the Plan and 

is subject to amendment. If questions arise that are not covered in this SPD or if this SPD 

conflicts with the plan document (or conflicts with the Collective Bargaining 

Agreement), the plan document (or Collective Bargaining Agreement, as applicable) will 

govern. If the plan document conflicts with the Collective Bargaining Agreement the 

Collective Bargaining Agreement will govern. 


April 2011 

-2-

1. What is the Plan 

The Plan is a defined contribution pension plan established by Northrop Grumman 

Shipbuilding, Inc., effective July 26, 1999, and subsequently sponsored by the Parent 

Company. Under the Plan, an account is established for each employee eligible to 

participate (see Q&A 3) and the contribution amount is $10 or greater. The Company 

will make contributions to the account in an amount designed to provide the 

participant’s Target Benefit. 

The Target Benefit is funded as a straight life annuity and payable monthly in an 

amount equal to the difference between the minimum benefit called for under the 

Collective Bargaining Agreement between the Company and United Steelworkers 

and its Local No. 8888 (the “Union”) and the benefit the participant is expected to 

receive at his/her normal retirement date under the Pension Plan. 

Although the Plan is effective July 26, 1999, service to the Company prior to that date 

is generally considered under the Plan to the same extent as under the Pension Plan, 

provided that, on or after July 26, 1999 through June 6, 2004, you have an hour of 

earnings for work or qualify for disability retirement. 

2. Am I required to contribute to the Plan 

The Company makes all contributions. You are neither required nor permitted to 

contribute. 

Eligibility 

3. When am I eligible to participate in the Plan 

You become a participant in the Plan on the January 1 or July 1 next following the 

date that you meet all the requirements below, except that, during 1999, you began to 

participate on the date you met these requirements: 

• You were an active employee of Northrop Grumman Shipbuilding, Inc. covered 

by the Collective Bargaining Agreement and had an hour of earnings for work or 

qualified for disability retirement on or after July 26, 1999 but before June 7, 

2004, 

• You are at least 21 years old, 

• You have completed one year of eligibility service during which you received pay 

or had unpaid authorized absences totaling 1,000 hours, and 

• Your monthly pension from the Pension Plan, assuming you work full-time until 

your Normal Retirement Age, is expected to be less than the Minimum Benefit 

(see Q&A 13). 

Employees initially hired after June 6, 2004 are not eligible to participate in the Plan. 


April 2011 

-3-

4. What is included in hours paid for the purposes of determining eligibility to join 

the Plan 

Hours paid for any reason, including time worked, vacation, holidays and jury duty, 

are counted in determining eligibility to join the Plan. However, only one hour is 

credited for each hour worked even though a premium may be paid for that hour. 

5. What is an unpaid authorized absence for the purposes of determining eligibility 

to join the Plan 

The following are defined as unpaid authorized absences, up to 40 hours per week: 

• Each hour of layoff up to 18 months 

• Each hour of absence due to total (but not permanent) disability during which the 

employee remains on roll either in active or inactive status (up to 24 months) 

• Each hour of absence due to any leave, including union leave, granted by the 

Company 

• Absence due to sickness or accident as long as the employee is eligible to receive 

Sickness and Accident (Weekly Disability Insurance) benefits 

• An hour for which back pay, irrespective of mitigation of damages, is either 

awarded or agreed to by the Company. 

6. What happens if I am not credited with at least 1,000 hours of service in the 12- 

month period following my first day of employment 

You can fulfill the hours of service requirement in any succeeding 12-month period, 

beginning on your anniversary date of employment. 

Payment of Target Benefit 

7. When will benefits under the Plan be paid 

In the event that you are eligible for benefits from the Plan, your benefits will be paid 

at the same time and in the same manner as your benefits under the Pension Plan. To 

receive your benefits, you must therefore be eligible to begin receiving benefits under 

the Pension Plan and elect to begin these benefits. You should review the Pension 

Plan SPD for a more detailed description of the rules governing when you may begin 

benefits. Generally, you may begin benefits as of the first day of any month after you 

have stopped working for the Company and attained early retirement age (age 55 with 

at least ten years of vesting service). Your Normal Retirement Age is the later of age 

65 or your age on the date you complete three years of vesting service (see Q&As 16 

and 17). If you are an active employee with ten years of vesting service, you may 

retire as early as age 62 without an actuarial reduction in your pension. If you die 

before beginning benefits, payments to your surviving spouse, if any, may begin as of 

the first day of the month of your death or, if later, the date you would have attained 

your early retirement age. 


April 2011 

-4-

8. How do I apply for my Target Benefit 

You do not need to file a separate application to receive your Plan benefit. When you 

file your application for your Pension Plan benefit, the Huntington Ingalls Benefits 

Center will include the Plan benefit, if applicable, in preparing your final pension 

calculation. 

Your right to benefits will be determined by the Plan in effect on the date you 

terminate employment or cease to participate in the Plan. The amount of your benefit 

will be determined on the date your payments begin. Your method of payment and 

any actuarial equivalence factors will be those in effect on the date your benefits 

begin. 

9. Will I receive two checks; one from the Plan and one from the Pension Plan 

No - you will receive a single check from the Pension Plan. Upon retirement, the 

assets in your account will be transferred from the Plan to the Pension Plan. The 

relevant provisions of the Pension Plan governing the timing and form of distribution 

also apply to the Plan. Thus, if you are single, your benefits will be paid in a straight 

life annuity. If you are married, your benefit will be paid in a qualified joint and 

survivor annuity, which provides a reduced benefit to you for your lifetime and onehalf 

that amount to your surviving spouse. However, you may waive this benefit in 

favor of a life annuity, if your spouse consents to your waiver. 

Amount of Target Benefit 

10. How much is my Target Benefit 

Your Target Benefit is the difference between the frozen Minimum Benefit called for 

under the Collective Bargaining Agreement (see Q&A 13) and the benefit you are 

expected to earn under the Pension Plan based on the Plan provisions in effect before 

June 7, 2004. The benefit you are expected to earn under the Pension Plan is 

determined by multiplying the number of years of pension credit you are expected to 

earn times the dollar multiplier not to exceed $29 in effect for that year. Your actual 

benefit under the Plan is based on the value of your account and could be greater or 

less than your Target Benefit (see Q&A 11). 

You will not have a Plan benefit unless your expected benefit from the Pension Plan 

was below the $900 minimum benefit called for in the prior Collective Bargaining 

Agreement (see Q&A 13). 

11. What happens if my Target Benefit is not large enough to provide the frozen 

Minimum Benefit 

Your account in the Plan may be insufficient to provide the frozen Minimum Benefit 

due to poor investment performance, for example. If this happens, you will be entitled 

to receive the difference under the Pension Plan. On the other hand, superior 


April 2011 

-5-

investment performance could result in your receiving more than the frozen 

Minimum Benefit. 

12. What counts as a pension credit 

Beginning January 1, 1975, you must be paid for at least 1,700 hours during a 

calendar year to be credited with a full pension credit for that year. The hours paid for 

earned leave, holidays, jury duty and, effective November 1, 1983, union leave count 

toward the 1,700 hours. 

Your pension credit for a calendar year will be pro-rated on the basis of one-tenth of 

the benefit for each 170 hours for which pay is received. Additional hours less than 

170 are not counted. For example, if you receive pay for only 850 hours in a calendar 

year while you are a participant, you will earn 1/2 year of pension credit for that year. 

Only one hour is credited toward the 170 for each hour worked even though a 

premium may be paid for such hour. 

For service before January 1, 1975, pension credits were determined in accordance 

with pension agreements then in effect. 

13. What is the frozen Minimum Benefit called for under the Collective Bargaining 

Agreement 

The frozen Minimum Benefit is a total monthly pension from this Plan and the 

Pension Plan of at least $750. The $750 Minimum Benefit increased to $900 for 

retirements on or after February 1, 2002 through June 6, 2004. The frozen Minimum 

Benefit retains the minimum amount of $900 indefinitely for retirements after June 6, 

2004. 

Note: The Pension Plan has increased the Minimum Benefit to $1,100 effective June 

6, 2004; to $1,250 on February 1, 2009; and to $1,350 on January 1, 2011. 

The frozen Minimum Benefit is reduced pro-rata if you have less than 30 years of 

pension credit when you retire. For example, if you have 15 years of pension credit 

when you retire at age 65, your minimum pension will be 50% (15/30) of the frozen 

Minimum Benefit. 

As another example, assume that you have 25 years of pension credit when you retire 

on June 1, 2007. Your frozen Minimum Benefit would be $750 ($900 x 25/30). 

Here’s another example. Assume that you retire on February 1, 2007. If you have 30 

or more years of pension credit and have at least one hour of earnings for work under 

the Collective Bargaining Agreement on or after January 1, 2002, your frozen 

Minimum Benefit would be $900. 


April 2011 

-6-

Your Minimum Benefit will be reduced by the same percentage as your pension 

under the Pension Plan if: 

• You are not an active employee and begin benefits before age 65, or 

• You are an active employee and begin benefits before age 62. 

14. Is my Target Benefit insured by the Pension Benefit Guaranty Corporation 

(“PBGC”) 

No. Benefits under this Plan are not insured by the PBGC because that governmental 

agency does not insure the payment of benefits under this type of individual account 

plan. 

15. Can my benefits be affected by divorce proceedings 

As a general rule, your interest in your account may not be alienated. This means that 

your interest may not be sold, used as collateral for a loan, given away, or otherwise 

transferred. In addition, your creditors may not attach, garnish or otherwise interfere 

with your account. 

However, there is an exception to the prohibition of assigning your benefit under the 

Plan. The Employee Retirement Income Security Act of 1974, as amended 

(“ERISA”), requires the Plan Administrator to administer the Plan pursuant to 

qualified domestic relations orders (QDROs). A QDRO is a legal judgment, decree, 

or order that recognizes the rights of someone other than the Plan participant (namely, 

an alternate payee) under the Plan with respect to child or other dependent support, 

alimony, or marital property rights. 

If you become legally separated or divorced, a portion of your benefits under the Plan 

may be assigned to someone else to satisfy a legal obligation you may have to a 

spouse, former spouse, child, or other dependent. These payments may begin while 

you are still employed, but only after meeting the specific retirement eligibility 

requirements. 

There are specific requirements that a QDRO must meet to be accepted by the Plan 

Administrator. In addition, there are specific procedures regarding the amount and 

timing of payments. 

The Huntington Ingalls Industries Domestic Relations Group administers QDROs. If 

you are subject to such an order, call the Huntington Ingalls Industries Domestic 

Relations Group at 1-877-324-4255 to request a copy of the Plan’s QDRO procedures 

and a model QDRO for your use. Issues pertaining to the qualified status of a 

domestic relations order may be pursued in federal court. 


April 2011 

-7-

Vesting 

16. What is “vesting” and when will I become vested in the Plan 

“Vesting” means acquiring a non-forfeitable right to receive a pension at some future 

date. Under the terms of the Plan you acquire this non-forfeitable vested right to 

receive a future pension once you have completed three years of vesting service after 

having reached age 18. These three years of vesting service need not be consecutive. 

A participant who is an employee on his Normal Retirement Age will be vested 

regardless of years of service. 

17. What counts as a year of service for vesting purposes 

Every period of 12 consecutive months, beginning with your date of employment or 

your 18th birthday, whichever is later, in which you have been paid or had an unpaid 

authorized absence, counts as a year of service. (See Q&As 4 & 5 for definitions of 

“hours paid” and “authorized absence.”) 

18. What happens if my employment is terminated before I am eligible for 

retirement and I do not return to work 

If you are not vested at termination, you are not eligible for the Target Benefit. If you 

are vested at termination, you will be eligible to receive a benefit in the future. 

Appeals Procedure 


If your initial request for benefits is denied, you will receive notice of the Plan 

Administrator’s decision on your claim for benefits generally within 90 days after the 

Plan Administrator receives your request, except for situations requiring an extension 

of time because of matters beyond the control of the Plan, in which case the Plan 

Administrator may have up to an additional 90 days to provide you such notification. 

If the Plan Administrator needs an extension, it will notify you prior to the expiration 

of the initial 90-day period, state the reason why the extension is needed, and state 

when it will make its determination. If an extension is needed because you did not 

provide sufficient information or filed an incomplete claim, the time from the date of 

the Plan Administrator’s notice requesting further information and an extension until 

the Plan Administrator receives the requested information does not count toward the 

time period the Plan Administrator is allowed to notify you as to its claim decision. 

If your claim for a benefit is denied, in whole or in part, you (or your beneficiary) 

must receive a written explanation of the reason for the denial from the Plan 

Administrator. This written notice will include: 


April 2011 

-8-



• A description of additional materials or information that may be necessary to 

adjudicate your claim 

• Procedures for appealing the decision and the time limits applicable to such 

procedures, including a statement of your right to bring a civil action under 

Section 502 (a) of ERISA following an adverse benefit determination on review. 

If the claim is denied because the Plan Administrator did not receive sufficient 

information, the claims decision will describe the additional information needed and 

explain why such information is needed. Further, if an internal rule, protocol, 

guideline or other criterion was relied upon in making the denial, the claims decision 

will state the rule, protocol, guideline or other criteria or indicate that such rule, 

protocol, guideline or other criteria was relied upon and that you may request a copy 

free of charge. 

If you believe you are being denied a benefit for which you are eligible, you should 

make a claim to the Plan Administrator in writing within 65 days from the receipt of 

the original denial to request a review (or from the expiration of the review period if 

the Plan Administrator failed to make a decision or notify you of an extension). This 

request should be made in writing and sent to the Plan Administrator at the following 

address: 


Huntington Ingalls Industries, Inc. Newport News Operations Target Benefit Plan for 

Employees Covered by United Steelworkers, Local 8888 Collective Bargaining 

Agreement 




The request for appeal must include at least the following information: 

• Name of employee 

• Name of the Plan 

• Reference to the initial decision 

• An explanation why you are appealing the initial decision, including the grounds 

on which your request for a review is based 

As part of your appeal, you may also submit any written comments, documents, 

records, or other information relating to your claim. Upon your written request, the 

Plan Administrator will provide you free of charge with copies of documents, records 

and other information relevant to your claim. 


April 2011 

-9-

Besides having the right to appeal, you or your authorized representative also have 

the right to examine and have copies of certain plan documents and information 

relevant to your claim, at locations and times convenient to the Plan Administrator. 

After you submit a claim for retirement benefits to the Plan Administrator, the Plan 

Administrator will conduct a full and fair review of your claim and notify you in 

writing of its decision to approve or deny your claim. 

The Administrative Committee will notify you in writing of its final decision within a 

reasonable period of time, but no later than 60 days after its receipt of your written 

request for review, except that under special circumstances the Administrative 

Committee may have up to an additional 60 days to provide written notification of the 

final decision. If such an extension is required, the Administrative Committee will 

notify you prior to the expiration of the initial 60-day period, state the reason(s) why 

such an extension is needed, and state when it will make its determination. If an 

extension is needed because you did not provide sufficient information, the time 

period from the Administrative Committee’s notice to you of the need for an 

extension to when the Administrative Committee receives the requested information 

does not count toward the time the Administrative Committee is allowed to notify 

you of its final decision. 

If the Administrative Committee denies the claim on appeal, the Administrative 

Committee will send you a final written decision that states: 


• References any specific Plan provision(s) on which the denial is based 

• A statement of your right to bring civil action under Section 502 (a) of ERISA 

following an adverse benefit determination on review. 

• If an internal rule, protocol, guideline or other criterion was relied upon in 

denying the claim on appeal, the final written decision will state the rule, protocol, 

guideline or other criteria or indicate that such rule, protocol, guideline or other 

criteria was relied upon and that you may request a copy free of charge. 

Upon written request, the Administrative Committee will provide you free of charge 

with copies of documents, records and other information relevant to your claim. 

If your claim appeal is denied, you may bring legal action in court provided you abide 

by certain time limitations. Specifically, you may not bring legal action against a 

party under the Plan after the latest of: 




otherwise applicable statute of limitations expires, whichever comes first. For details 

on when a claim arises, see the Plan document. 


April 2011 

-10-

Administration of the Plan 

20. Who is the administrator of the Plan 

The Administrative Committee administers the Plan. The mailing address is as 

follows: 


Huntington Ingalls Industries, Inc. Newport News Operations Target Benefit Plan for 

Employees Covered by United Steelworkers, Local 8888 Collective Bargaining 

Agreement 




The Administrative Committee has the exclusive responsibility and complete 

discretionary authority to control the operation and administration of the Plan, with 

all powers necessary to enable it to properly carry out such responsibility, including, 

but not limited to, the power to construe the terms of the Plan, to determine status, 

coverage, and eligibility for benefits, and to resolve all interpretive, equitable, and 

other questions that arise in the operation and administration of this Plan, including 

all questions of fact relating to such questions. All actions or determinations of the 

Administrative Committee are final, conclusive, and binding on all persons, subject 

only to the Plan’s appeals procedure (see Q&A 19). 

21. How is the amount of the Company’s contribution determined 

The Company engages the services of an independent actuarial firm to determine the 

amount of contributions required. Contributions are made quarterly. 

22. What is the function of the Trustee 

An independent trustee holds the assets of the Plan in trust (the “Trust Fund”). The 

Trustee has the power and responsibility to hold, administer, control, manage, and 

invest the assets of the Trust Fund. The money in the Trust Fund can be used only to 

pay benefits and administrative costs of the Plan and cannot be returned to the 

Company until all benefit obligations have been satisfied. 

The address of the Plan trustee is: 

Wells Fargo 

1021 East Cary Street, 6 th Floor 

Richmond, VA 23219 

23. Can the Plan be amended or terminated 


April 2011 

-11-

Subject to the terms of the Collective Bargaining Agreement, the Plan may be 

amended or modified, in whole or in part, by the Parent Company at any time. No 

amendment or modification, however, can make it possible for any part of the Trust 

Fund to be used for or diverted to purposes other than for the exclusive benefit of 

participants or their beneficiaries except that contributions made by the Company to 

the Trust Fund may be returned to the Company: 

• If they were made due to a mistake in fact 

• If they are disallowed as current deductions from the Company’s taxable income 

• If the Plan is terminated and assets remain after all benefits are paid. 

While the Parent Company intends to continue the Plan indefinitely, the Parent 

Company has no obligation to maintain the Plan after the current collective 

bargaining agreement expires. Thereafter, the Parent Company may terminate the 

Plan, in whole or in part, for any reason, at any time, subject to any limitation 

included in a subsequent collective bargaining agreement. In the event the Plan is so 

terminated, the rights of all affected participants and their beneficiaries to the assets in 

their accounts are automatically fully vested. 

Any amendment or termination of the Plan will be adopted pursuant to a resolution or 

written action approved by the Board of the Parent Company and will be effective on 

the date stated in such resolution or written action. Any documents implementing the 

amendment or termination may be executed by any officer of the Parent Company or 

such other person given authority by the Board of the Parent Company. 

24. Who is the Agent for Service of Legal Process 

The Agent for service of legal process for the Plan is the Corporate Secretary of the 

Company. Service of legal process may also be made on the Trustee at the address 

shown in Q&A 22. 

25. Do Veterans have any special rights under the Plan 

If you are a Plan participant, leave employment to serve in one of the “uniformed 

services” of the United States, give notice, if possible, and promptly return to work 

for an Employer, you may be eligible to have your uniformed services count as 

service under the Plan. You should check with the Huntington Ingalls Benefits Center 

as soon as possible following your return from uniformed services to determine if you 

qualify and, if so, to complete the necessary paperwork. 

26. What if I receive an overpayment of benefits 

Although every effort is made to ensure benefit payments are correct, the Company 

reserves the right to correct any errors that are made and to recover any overpayment 


April 2011 

-12-

made to you or your beneficiary. This right includes the authority to offset future 

benefits or seek repayment by you or your beneficiary of any overpayment. 

Your ERISA Rights 



13155003v.4 


April 2011 

-13-




Cash Balance and Pension Earnings Plan 


United Steelworkers Local 8888 



A GUIDE TO YOUR CASH BALANCE AND PENSION EARNINGS PLAN 

About This Guide 

Knowing your retirement will be financially secure and comfortable is important to you 

— and to Huntington Ingalls Industries, Inc. (“HII”). 

To help you reach your long-term financial goals, the Company* provides the Northrop 

Grumman Shipbuilding, Inc. Newport News operations Cash Balance and Pension 

Earnings Plan for Employees Covered by the United Steel, Paper and Forestry, Rubber, 

Manufacturing, Energy, Allied Industrial and Service Workers International Union 

(United Steelworkers), Local 8888 Collective Bargaining Agreement (the “Cash Balance 

Plan”) effective June 7, 2004 through December 31, 2008. 

Effective January 1, 2009, the Cash Balance Plan was amended and restated to become 

the Northrop Grumman Shipbuilding, Inc. Newport News Operations Pension Earnings 

Plan for Employees Covered by United Steelworkers, Local 8888 Collective Bargaining 

Agreement. 

HII was spun off from Northrop Grumman Corporation in March 2011 and, as a result, 

plan sponsorship was transferred to HII and the plan was renamed the Huntington Ingalls 

Industries, Inc. Newport News Operations Pension Earnings Plan for Employees Covered 

by United Steelworkers Local 8888 Collective Bargaining Agreement (the “Plan” or the 

“Pension Earnings Plan”). 

* The “Company” refers to Northrop Grumman Shipbuilding, Inc. before March 31, 

2011 and to HII on and after March 31, 2011. 

This Plan works together with Social Security and your personal savings, including your 

Savings (401(k)) Plan, to provide part of your retirement income. 

If you have questions not answered in this guide, go to HII Benefits Connect at 

http://hiibenefits.com or call the Huntington Ingalls Benefits Center (HIBC) at 1-877- 

216-3222. If you are calling from outside the United States, please call 1-408-916-9765. 

You will need your password to secure your call. Benefits service representatives are 

available to assist you Monday through Friday from 9:00 a.m. to 6:00 p.m. Eastern time, 

excluding holidays. If you are hearing impaired, you will need to use a relay service 

through your TTY/TDD service provider. 

Subject to the terms of the Collective Bargaining Agreement, the Company reserves the 

right to suspend, reduce, or discontinue contributions to and/or benefit accruals under the 

Plan. The Company also may amend, suspend or terminate the Plan at any time. You will 

be notified of any significant amendments to the Plan. 

This Summary Plan Description (SPD) describes the Plan. This SPD presents a summary 

only and does not contain all the details of all aspects of the Plan. It is not an official plan 

document, and neither the plan documents nor this guide constitute an implied or 

expressed contract of employment. 

The Plan was established consistent with the provisions of the previous and current 

collective bargaining agreements. All plans are incorporated in the current agreement 

between the Company and the United Steelworkers, Local 8888, the bargaining agent,

which agreement is effective October 27, 2008 through March 10, 2013 (the “Collective 

Bargaining Agreement”). 

The actual terms of the Plan are contained in the plan documents, which are available 

from the HIBC. 

The official plan text and trust agreement govern the operation of the Plan and payment 

of all benefits. In the event of any ambiguity in or omission from this guide, or any 

conflict between this guide and the official plan text and trust agreement (or conflicts 

with the Collective Bargaining Agreement), the official plan text and trust agreement (or 

Collective Bargaining Agreement, as applicable) govern.


OVERVIEW OF THE CASH BALANCE PLAN AND PENSION EARNINGS PLAN ......... 1 

General Information ..................................................................................................... 1 

Plan Effective Date................................................................................................... 1 

Plan Cost ................................................................................................................. 1 

Your Benefit ............................................................................................................. 1 

Vesting ..................................................................................................................... 2 

Payment Options ..................................................................................................... 2 

Starting Your Benefits .............................................................................................. 2 

Eligibility and Joining the Plan ...................................................................................... 2 

Eligibility ................................................................................................................... 2 

Rehires On or Before December 31, 2008 ............................................................... 3 

Rehires On or After January 1, 2009 ........................................................................ 3 

Joining the Plan ....................................................................................................... 3 

DETAILS ABOUT THE CASH BALANCE PLAN ............................................................. 4 

Your Benefit ................................................................................................................. 4 

Pay-Based Credits ................................................................................................... 4 

Interest Credits ......................................................................................................... 5 

Example of Pay-Based and Interest Credits ............................................................. 7 

Age and Credited Service ............................................................................................ 9 

Age .......................................................................................................................... 9 

Credited Service ...................................................................................................... 9 

Pension-Eligible Compensation ................................................................................. 10 

Compensation That Is Pension-Eligible .................................................................. 10 

Compensation That Is Not Pension-Eligible ........................................................... 11 

Keeping Track of Your Benefit ................................................................................... 11 

Vesting in Your Benefit .............................................................................................. 11 

Receiving Your Benefit .............................................................................................. 12 

Age 70½ Distributions ............................................................................................ 12 

Calculating Your Benefit at Retirement ...................................................................... 13 

Normal Retirement Benefit ..................................................................................... 13 

Early Retirement Benefit ........................................................................................ 13

Applying for Your Retirement Benefit ......................................................................... 15 

Payment Options ....................................................................................................... 16 

Overview of Available Payment Options ................................................................. 16 

Rollovers by Non-Spouse Beneficiaries ..................................................................... 19 

Calculating Straight Life Annuity Payments ............................................................ 19 

Calculating Joint and Survivor Annuity Payments .................................................. 19 

Calculating 75% Joint and Survivor Annuity with Pop-Up Payments ...................... 22 

Calculating Level Income Annuity Payments .......................................................... 24 

Calculating 5-, 10- and 15- Year Certain and Continuous Annuity Payments ......... 25 

What Happens to Your Benefit in Special Situations .................................................. 27 

If You Take a Leave of Absence ............................................................................ 27 

If You Die Before Benefit Payments Begin ............................................................. 28 

Heroes Earnings Assistance and Relief Tax Act of 2008 ........................................ 29 

If You Are Laid Off (Special Layoff Provision) ......................................................... 29 

If You Are Rehired.................................................................................................. 30 

If You Transfer ....................................................................................................... 31 

If You Take Medical Leave ..................................................................................... 31 

Breaks in Service ....................................................................................................... 31 

DETAILS ABOUT THE PENSION EARNINGS PLAN ................................................... 33 

General Information ................................................................................................... 33 

Plan Effective Date................................................................................................. 33 

Plan Cost ............................................................................................................... 33 

Earning a Benefit ................................................................................................... 33 

Vesting ................................................................................................................... 33 

Starting Your Benefits ............................................................................................ 33 

Eligibility and Joining the Plan .................................................................................... 33 

Eligibility ................................................................................................................. 33 

Joining the Plan ..................................................................................................... 34 

How the Plan Works .................................................................................................. 34 

Your Benefit ........................................................................................................... 34 

Plan Wages............................................................................................................ 35 

Vesting in Your Benefit .............................................................................................. 36

Receiving Your Benefit .............................................................................................. 36 

Calculating Your Benefit at Retirement ...................................................................... 37 

Normal Retirement Benefit ..................................................................................... 37 

Early Retirement Benefit ........................................................................................ 38 

Delayed Retirement Benefit ................................................................................... 39 

Applying for Your Retirement Benefit ..................................................................... 41 

Payment Options ....................................................................................................... 42 

Overview of Available Payment Options ................................................................. 42 

Rollovers by Non-Spouse Beneficiaries ..................................................................... 45 

Calculating Straight Life Annuity Payments ............................................................ 45 

Calculating Joint and Survivor Annuity Payments .................................................. 45 

Calculating Joint and Survivor Annuity with Pop-Up Payments .............................. 46 

Calculating Level Income Annuity Payments .......................................................... 47 

Calculating 5-, 10- and 15- Year Certain and Continuous Annuity Payments ......... 48 

Calculating Optional Lump Sum Death Benefit ....................................................... 50 

What Happens to Your Benefit in Special Situations .................................................. 51 

If You Take a Leave of Absence ............................................................................ 51 

If You Become Disabled ......................................................................................... 52 

If You Die Before Benefit Payments Begin ............................................................. 53 

Heroes Earnings Assistance and Relief Tax Act of 2008 ........................................ 56 

If You Are Rehired.................................................................................................. 56 

If You Transfer ....................................................................................................... 57 

Breaks in Service ....................................................................................................... 57 

GENERAL INFORMATION THAT APPLIES TO THE CASH BALANCE AND PENSION 

EARNINGS PLANS ....................................................................................................... 59 

Tax Considerations .................................................................................................... 59 

Maximum Benefits for Tax Purposes ...................................................................... 59 

When You Pay Taxes ............................................................................................ 59 

General Plan Information ........................................................................................... 59 

Assignment of Benefits .......................................................................................... 59 

Facility of Payment ................................................................................................. 59 

Payment of Benefits to Alternate Payees ............................................................... 59

Top Heavy Rules ................................................................................................... 60 

Loss of Benefits ..................................................................................................... 60 

Assistance With Your Questions ............................................................................ 61 

Claims and Appeals Processes ⎯ Applicable to the Cash Balance and Pension 

Earnings Plan ......................................................................................................... 61 

Pension Benefit Guaranty Corporation (PBGC) ...................................................... 62 

Funding and Plan Assets ....................................................................................... 63 

About This Guide and the Plan Documents ............................................................ 63 

Future of the Plan .................................................................................................. 63 

Your Rights ................................................................................................................ 64 

TERMS YOU SHOULD KNOW ..................................................................................... 65 

COMMONLY USED ACRONYMS ................................................................................. 66

OVERVIEW OF THE CASH BALANCE PLAN AND 

PENSION EARNINGS PLAN 


Plan Effective Date 

The Cash Balance Plan applies to pension eligible compensation earned between June 7, 

2004 and December 31, 2008. For eligible earnings paid on or after January 1, 2009, the 

Pension Earnings Plan applies. 

Plan Cost 

The Company pays the entire cost of the Plan ⎯ you do not make any contributions. All 

contributions are held in a trust for your benefit. 

Your Benefit 

You earn credits toward a pension benefit that is payable after you leave the Company 

and reach the Plan’s retirement age. If you transfer from the Company to another 

company owned entirely or primarily by HII, you must terminate employment from that 

company in order to commence your pension benefit from the Plan. 

Depending on when you were hired, there are two benefit formulas that may apply to 

you: 

A. Cash Balance Plan formula (from June 7, 2004 to December 31, 2008): Two types of 

credits are provided by the Company each month: 

• Pay-based credits, which are based on your age, your years of credited service, and 

your pay. 

• Interest credits, which are based on the value of your benefit and the Plan’s interest 

credit rates. 

B. Pension Earnings Plan formula (beginning January 1, 2009): The benefit is based on 

contribution credits: 

• The Company credits 5% of your eligible pay to your Total Contributions. 

• Your annual benefit starting at age 65 is an annuity equal to 25% of your Total 

Contributions. 


April 2011 

1

Vesting 

If you participated in the Cash Balance Plan prior to January 1, 2009, and are still active 

on January 1, 2009, you have a non-forfeitable right to the full value of your benefit after 

completing three years of vesting service. New participants (i.e., new hires who did not 

participate in the Cash Balance Plan prior to January 1, 2009) under the Pension Earnings 

Plan are fully vested after earning five years of vesting service. 

Payment Options 

When you leave the Company and reach the Plan’s retirement age, your vested benefit 

will be paid to you as an annuity, unless you elect a lump sum option in accordance with 

the Plan. See Payment Options below for more details. If you transfer from the Company 

to another company owned entirely or primarily by HII, you must terminate employment 

from that company in order to commence your pension benefit from the Plan. Please 

note: If you have a benefit under the Cash Balance Plan and Pension Earnings Plan, the 

payment option you choose will apply to both benefits. 

Starting Your Benefits 

Your retirement date can be the first day of any month. You must call the HIBC to 

request your retirement kit. Please see the “Applying for Your Retirement Benefit” 

section for details. 

Eligibility and Joining the Plan 

Eligibility 

All individuals reported on the Company’s payroll records as active employees who were 

hired on or after June 7, 2004 and are covered by the Collective Bargaining Agreement 

between the Company and the United Steelworkers are generally eligible to participate in 

the Plan. 

Individuals not covered by this Plan include the following: 

• Nonresident aliens 

• Employees with a hire date on or before June 6, 2004 

• Individuals hired by an outside agency (e.g., a “job shopper” or a “leased employee”) 

• Individuals covered by special contracts 

• Employees of a classification who are not covered by the Collective Bargaining 

Agreement 

• Individuals who are otherwise ineligible under the rules of the Plan. 


April 2011 

2

Rehires On or Before December 31, 2008 

You will enter the Cash Balance Plan if you rehired on or before December 31, 2008 and 

were never a participant in the Northrop Grumman Shipbuilding, Inc. Newport News 

Operations Pension Plan for Employees Covered by United Steelworkers, Local 8888 

Collective Bargaining Agreement (the “Pension Plan”), or if you were not vested and 

incurred a consecutive five-year break in service following your termination of 

employment from the Company. 

Rehires On or After January 1, 2009 

You will participate in the Pension Earnings Plan if you are rehired on or after January 1, 

2009 and were never a participant in the Pension Plan, or if you were a participant in the 

Pension Plan, you were not vested and incurred a consecutive five-year break in service 

following your termination of employment from the Company. 

If you were previously a participant in the Pension Plan, you will re-enter that Plan if you 

were vested as of your termination date, or, if you were not yet vested, you did not incur 

a consecutive five-year break in service following your termination of employment with 

the Company. 

Note: All active participants in the Cash Balance Plan will earn benefits under the 

Pension Earnings Plan formula beginning January 1, 2009, regardless of when they were 

hired or rehired by the Company. 

Joining the Plan 

If you are an eligible employee, as described above, you automatically participate in the 

Plan. There is nothing you need to do to enroll. Eligible employees hired on or after 

January 1, 2009 become participants of the Pension Earnings Plan on their first day of 

employment. Employees of a non-participating unit who become eligible for the Pension 

Earnings Plan as a result of a transfer become participants on their date of transfer. For 

more information about the Pension Earnings Plan, see page 32. 


April 2011 

3

DETAILS ABOUT THE CASH BALANCE PLAN 

This section describes the plan terms for benefits earned between June 7, 2004 and 

December 31, 2008 under the Cash Balance Plan formula. 

Your Benefit 

Your Pension Plan benefit grows through monthly credits provided by the Company: 

• Pay-based credits 

• Interest credits. 

Pay-Based Credits 

The Company provides a "pay-based credit" at the end of each month in which you are 

paid as a covered employee for one or more hours of work (including annual leave, jury 

duty and, in some cases, certain qualified leaves of absence, such as military leaves, 

Union leave and medical leaves up to two years from the beginning of the medical leave). 

The amount of your pay-based credit is a percentage of your total pension-eligible 

compensation, based on your "points" ⎯ your age on the first day of the month plus your 

credited service on the last day of the prior month. 

If applicable, you also receive an additional pay-based credit for your pay that exceeds 

the Social Security Wage Base (SSWB), which was $97,500 in 2007 and $102,000 in 

2008. The SSWB is the maximum amount of pay subject to Social Security taxes each 

year and is updated annually by the Internal Revenue Service (IRS). 

The chart below provides the standard schedule of pay-based credits. 

Standard Schedule Of Pay-Based Credits 

Points 

(Age + Years of 

Credited Service) 

Pay-based Credit 

(as a Percentage of Total 

Pension-eligible 

Compensation) 


April 2011 

4 

Pay-based Credit 

(as a Percentage of Pay 

Over 

Social Security Wage Base) 

Under 25 4.5% 4.5% 

25 – 34 5.0% 4.5% 

35 – 44 5.5% 4.5% 

45 – 54 6.0% 4.5% 

55 – 64 6.5% 4.5% 

65 – 74 7.0% 4.5% 

75 – 84 7.5% 4.5% 

Over 84 8.0% 4.5% 

Refer to the “Age and Credited Service” section for details.

The Plan discontinued pay-based credits effective December 31, 2008. 

Pay-Based Credit Examples 

Following is an example showing how pay-based credits are calculated. The example 

calculates the credit when pay is below the Social Security Wage Base (SSWB). (Note: If 

you would like additional information about how this benefit would be calculated for an 

employee whose pay is over the SSWB, call the HIBC at 1-877-216-3222.) 

The example in this summary: 

• Is provided for illustrative purposes only and may not be relied upon to represent the 

actual benefits of any covered employee 

• Uses age and service in whole numbers. (When your actual age and service are 

determined, they will be calculated to four decimal places. Their sum will be rounded 

down to a whole number to determine your points. See the “Age and Credited 

Service” section for details.) 

• Is based on a participant for whom the cash balance feature became effective June 7, 

2004. 

Example 

Assumptions: 

• Age on July 1, 2008: 32 

• Credited service on June 30, 2008: 3 years 

• Pension-eligible compensation: $35,000 a year ($2,916.67 a month) 

• Date of pay-based credit allocation: July 31, 2008 

Age + years of credited service = points 


April 2011 

5 

32 + 3 = 35 points 

Pay-based credit percentage 5.5% (or .055) 

Pay-based credit percentage x monthly pension-eligible 

compensation 

Interest Credits 

.055 x $2,916.67 = $160.42 

July 31, 2008 Pay-based Credit $160.42 

In addition to monthly pay-based credits, the Company provides monthly interest credits 

to help your benefit grow. Here is how the monthly interest credit is determined: 

The monthly interest credit is based on the 30-year Treasury bond annual rate in effect 

four months prior to the month the interest credit is being allocated (see “About the 30- 

Year Treasury Bond Rate”). The rate is divided by 12 to determine a monthly interest 

credit rate. For example, if the Treasury bond rate for March 2008 is 4.39%, the monthly 

interest credit rate for July 2008 is 0.3658%:

30-year Treasury Bond Annual Rate 

From Four Months Earlier 

÷ 12 = 


April 2011 

6 

Monthly Interest 

Credit Rate 

4.39% ÷ 12 = 0.3658% 

The monthly interest credit rate is multiplied by the value of your benefit as of the first of 

the month to determine your monthly interest credit. For example, if the value of your 

benefit is $10,000 on July 1 and the interest credit rate for July is 0.3658%, your monthly 

interest credit for October is $36.58. 

Monthly Interest Credit Rate 

x 

The Value of Your Benefit as 

of the First of the Month 

= 

Your Monthly 

Interest Credit 

0.3658% (0.003658) x $10,000 = $36.58 

Based on the balance at the beginning of the month, interest is credited on the last day of 

each month. Interest is not earned on pay-based credits allocated during the same month. 

Interest credits continue through your employment, including periods after December 31, 

2008. If you end your employment with a vested benefit, interest will continue to be 

credited to your benefit up to the month before payments begin. 

About the 30-Year Treasury Bond Rate 

As of November 2001, the government is no longer issuing 30-year bonds. However, 

30-year bond rates are still being published at this time. The rates are published by the 

IRS. To determine which rate is used each month, refer to the following table: 

Which 30-year Treasury Bond Rate Is Used 

To determine the interest credit 

for… 

January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

Use the 30-year Treasury bond rate from the 

previous… 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

July 

August

Example of Pay-Based and Interest Credits 

Here is an example showing how your benefit can grow through pay-based credits and 

interest credits. Please note that this example assumes four weeks of pay in each month 

when some months may actually include five weeks of pay. 

For details about how age and service are determined, see the “Age and Credited 

Service” section. 

Assumptions: 

• Date of hire: July 15, 2008 

• Employee joins the Plan on July 15, 2008 

• Date of birth: December 19, 1961 

• Pension-eligible compensation: $35,000 per year or $2,916.67 per month (assume 

$1,458.34 is paid during July) 

• Interest credit rate: 5% annually or 0.4166 monthly 

• Social Security Wage Base (SSWB) for 2008: $102,000 

This employee’s cumulative pay for the year does not reach the SSWB. 

July 2008 

Value of cash balance account on July 1, 2008 $0.00 

Age on July 1, 2008 46.5000 

Credited service on July 1, 2008 0.0000 

Points on July 31, 2008 

(age plus service rounded down to a whole number) 

46.500 

46 

Pay-based credit percentage 6.0% 

Pay-based credit 

Total monthly pension-eligible compensation x pay-based credit 

percentage ($1,458.34 x 6.0%) 

Interest credit = interest credit rate x value of benefit on July 1 

(0.4167% x $0.00) 

$87.50 

$0.00 

Total July 31, 2008 Credits $87.50 

August 2008 

Value of cash balance account on August 1, 2008 $87.50 

Age on August 1, 2008 46.5833 

Credited service on August 1, 2008 0.0833 


April 2011 

7

Points on August 31, 2008 


46.6666 

46 




percentage ($2,916.67 x 6.0%) 

Interest credit = interest credit rate x value of benefit on August 1 

(0.4167% x $87.50) 

$175.00 

$0.36 

Total August 31, 2008 Credits $175.36 

September 2008 

Value of cash balance account on September 1, 2008 $262.86 

Age on September 1, 2008 46.6667 

Credited service on September 1, 2008 0.1667 

Points on September 30, 2008 


46.8334 

46 




percentage ($2,916.67 x 6.0%) 

Interest credit = interest credit rate x value of benefit on September 1 

(0.4167% x $262.86) 

$175.00 

$1.10 

Total September 30, 2008 Credits $176.10 

At the end of September, the value of the participant’s benefit will be $438.96 ($87.50 + 

175.36 + 176.10). The table below illustrates how this participant’s benefits will grow to 

a year-end value of $971.67. 

Date 

Age 

Credited 

Service 

Years 

Points = 

Benefit 

Credit % 

Total 

Monthly 

Eligible 

Pay 

Year-to- 

Date Pay 

Pay 

Above 

SSWB 

Benefit 

Credit 

Interest 

Credit 

Value at 

End of 

Month 

7/31/2008 46.5000 0.0000 46=6.00% $1,458.34 $1,458.34 $0.00 $87.50 $0 $87.50 

8/31/2008 46.5833 0.0833 46=6.00% $2,916.67 $4,375.01 $0.00 $175.00 $0.36 $262.86 

9/30/2008 46.6667 0.1667 46=6.00% $2,916.67 $7,291.68 $0.00 $175.00 $1.10 $438.96 

10/31/2008 46.7500 0.2500 47=6.00% $2,916.67 $10,208.35 $0.00 $175.00 $1.83 $615.79 

11/30/2008 46.8333 0.3333 47=6.00% $2,916.67 $13,125.02 $0.00 $175.00 $2.57 $793.36 

12/31/2008 46.9167 0.4167 47=6.00% $2,916.67 $16,041.69 $0.00 $175.00 $3.31 $971.67 


April 2011 

8

Value at the end of 2008 $971.67 

Age and Credited Service 

Under the Plan, your monthly pay-based credit is calculated based on your "points" ⎯ 

your age plus your credited service on the first day of the month. The following describes 

how age and service are determined under the Plan. 

Age 

Your age is calculated as of the first day of each month using the 16-day rule, up to four 

decimal places. Here is how: 

• If you were born on or before the 16 th of the month, your birth date is converted to 

the first day of the month (for example, April 14 is converted to April 1) 


Birth date: August 7, 1958 

Age is calculated on: January 1, 2008. 

Since the participant was born on the 7 th , date of birth is rounded down to the first of the 

same month, August 1, 1958. 

Calculation Date - Date of Birth = Age Used to Determine Points 

January 1, 2008 - August 1, 1958 = 49 years, 5 months (or 49.4167) 

• If you were born after the 16 th of the month, your birth date is converted to the first 

day of the following month (for example, April 20 is converted to May 1). 


Birth date: December 19, 1961 

Age is calculated on: July 1, 2008. 

Since this employee was born on the 19 th , date of birth is rounded up to the first of the 

following month ⎯ January 1, 1962. 

Calculation Date - Date of Birth = Age Used to Determine Points 

July 1, 2008 - January 1, 1962 = 46 years, 6 months (or 46.5000) 

Credited Service 

You accrue one month of credited service for each month you are entitled to be paid for 

one or more hours of work with the Company. 

Credited service is calculated from your date of hire up to the last day of the month prior 

to the month for which you receive a benefit credit. For example, your October benefit 

credit is based on a calculation of your credited service as of midnight on September 30. 



April 2011 

9

• Hire date: November 29, 2004 

• This employee has continuous service and is paid for working at least one hour in 

November and at least one hour in December 

• The first service calculation is on November 30, 2004 

• Service is calculated again on December 31, 2004 and so on, until the participant 

terminates employment 

In this example, credited service on December 1, 2004, based on service through 

November 30, 2004, is one month, or 0.0833 (1 ÷ 12). 

Credited service on January 1, 2005, based on service through December 31, 2004 is two 

months, or 0.1667 (2 ÷ 12). 

Your credited service may include service with a former employer that merged with the 

Company, subject to the provisions of the applicable merger or acquisition agreement and 

the service crediting rules of your former employer’s plan(s). 

The Plan discontinued credited service effective December 31, 2008. 

Pension-Eligible Compensation 

Compensation That Is Pension-Eligible 

Effective January 1, 2005, pension-eligible compensation includes the following, in 

addition to straight-time earnings: 

• Overtime pay 

• Vacation pay (not including vacation pay-off) 

• Holiday pay 

• Funeral pay 

• Jury duty pay 

• Military leave pay 

• Shift differential on straight-time earnings 

• Special wage additives 

• Awards and bonuses (except those listed under “Compensation That Is Not Pension 

Eligible” below). 

Covered Employees who cease employment with the Affiliated Companies to perform 

services for the Union continue to be Covered Employees during their period of service 


April 2011 

10

for the Union. Accordingly, compensation paid to such Covered Employee during their 

service for the Union that otherwise satisfies the definition of Eligible Pay in the Plan 

constitutes Eligible Pay. Similarly, service performed for the Union is treated as service 

performed for the Company for purposes of this Plan. 

Compensation That Is Not Pension-Eligible 

The Cash Balance Plan excludes all other types of pay that are not specifically included 

in the above list. For example, the following types of pay are excluded: 

• Mastershipbuilder and Opportunity for Improvement (OFI) awards and bonuses or 

amounts paid to gross up these awards and bonuses. 

Keeping Track of Your Benefit 

You will receive an annual statement to help you track the value of your benefit. The 

statement will reflect the value of your benefit at the beginning of the year and all credits 

applied during the year. Note: pay-based credits will only be granted through December 

31, 2008; however, interest credits will continue. The Pension Earnings Plan is effective 

January 1, 2009. 

Tracking the value of your pension benefit is a key part of planning for a financially 

secure retirement. It can help you make informed decisions about how much to save on 

your own and how to diversify your 401(k) savings or other investments. 

Vesting in Your Benefit 

Vesting means you have earned a non-forfeitable right to your Plan benefit. Effective 

January 1, 2009, you become vested after completing three years of vesting service with 

the Company. 

You earn a year of vesting service for each calendar year in which you complete 1,000 or 

more hours for which you are paid (or are entitled to be paid) by the Company (including 

annual leave, jury duty and, in some cases, certain qualified leaves of absence, such as 

military leaves, Union leave and medical leaves up to two years from the beginning of the 

leave. For service after January 1, 2009, please see the Pension Earnings Plan “Vesting in 

Your Benefit” section on page 35. 


• Date of hire: September 1, 2007 

• Vesting hours as of December 31, 2007: 600 

• Vesting hours in 2008: 1,900 

In this example, the participant does not have 1,000 or more hours of vesting service in 

2007, so he or she does not earn a year of vesting service for that year. In 2008, the 

participant has 1,900 vesting hours, so he or she does earn one year of vesting service for 

2008. 


April 2011 

11

Once you become vested, you are always vested. Even if you leave the Company before 

you are eligible to begin receiving a benefit, you are entitled to a retirement benefit from 

the Plan if you are vested. If you leave the Company before you are vested, you forfeit 

your benefit. (However, if you are rehired, you may be eligible to continue earning 

vesting service for your benefit. See “Breaks in Service” for details.) 

Receiving Your Benefit 

Because the Plan is designed for retirement, your benefit is not available until you leave 

the Company and reach the Plan’s retirement age. If you transfer from the Company to 

another company owned entirely or primarily by HII, you must terminate employment 

from that company in order to commence your pension benefit from the Plan. 

After your employment ends from the Company or another company owned entirely or 

primarily by HII, your vested Cash Balance Pension Plan benefit is payable: 

• At age 65, if you are active on or after January 1, 2009 

• At age 65, if you have at least three years of vesting service or reached your fifth 

anniversary date as a participant in the Plan. 

• As early as age 55, if you have at least 10 years of vesting service. 

When you become eligible for benefit payments, you may choose to: 

• Begin receiving your vested benefit through one of the Plan’s payment options 

• Leave your vested benefit in the Plan for distribution at a later time (see “Age 70½ 

Distributions” next). Your benefit will continue to earn interest credits until the last 

day of the month before distribution occurs. 

If you end your employment with the Company before retirement and with a vested 

benefit, the HIBC will send you a notice at age 65 informing you that your benefit 

payments may begin immediately. This notice will be sent to the last address you 

provided to the HIBC. 

It is your responsibility to apply for your retirement benefits and keep the HIBC informed 

of your current address. 

Age 70½ Distributions 

If you no longer work for the Company, you must begin receiving your Cash Balance 

Pension Plan benefit payments as of April 1 following the calendar year in which you 

reach age 70½. For example, if you reach age 70½ in November 2008, you must start 

receiving your benefits on April 1, 2009. 

However, if you reach age 70½ and you are still employed by the Company or another 

company owned entirely or primarily by HII, payments will not begin until you 

terminate. 


April 2011 

12

You will receive a notice before you become eligible for an age 70½ distribution about 

the forms of payment for which you are eligible and the amount of your benefit. 

Calculating Your Benefit at Retirement 

If you leave the Company with a vested benefit, your benefit will be calculated when you 

reach retirement age and request a distribution. The total value of your benefit will be 

converted to a monthly retirement benefit. To convert your benefit, the Plan uses a factor 

based on your age when payments begin. 

Normal Retirement Benefit 

If you begin your benefit payments at or after the Plan’s normal retirement age ⎯ the age 

at which you have both attained age 65 and completed three years of vesting service (or 

reached at least the fifth anniversary of the date you became a participant in the Plan), or 

just age 65 effective January 1, 2009 ⎯ the value of your total benefit will be converted 

to an annual retirement benefit using a conversion factor of 9.00. Here is the calculation 

of your monthly retirement benefit: 

Total Benefit Value (when payments begin) ÷ 9.00 ÷ 12 months = 

Your Monthly Annuity Payment 


• Total benefit value when payments begin: $20,000 

• Age at which payments begin: 65 

In this example, the monthly retirement benefit will be: 

$20,000 ÷ 9.00 ÷ 12 months = $185.19 per month* 

* If you elect a payment option other than a straight life annuity, this amount will be 

converted based on the option you choose. See “Payment Options” for details. 

Early Retirement Benefit 

If you leave the Company (or another company owned entirely or primarily by HII) with 

10 or more years of vesting service, you may choose to begin receiving your Plan benefit 

as early as age 55. You may also be eligible for an early retirement benefit if you are laid 

off and meet certain criteria. See “If You Are Laid Off (Special Layoff Provision)” for 

details. 

If you elect an early retirement benefit, the monthly payment will be less than what you 

would have received if you had waited until age 65. Because early retirement benefits are 

paid out over a longer period of time, you are expected to receive a greater number of 

payments, and the payment amount is less. 

To calculate your early retirement benefit, the Plan uses a conversion factor based on 

your age when your payments begin. 


April 2011 

13

• If you have 10 or more years of vesting service and end your employment at or after 

age 55, early retirement factors are used to calculate your early retirement benefit 

(even if you defer payments). The early retirement factor that applies depends on your 

age when payments begin, as shown in the following table. 

• If you have 10 or more years of vesting service and end your employment before age 

55, deferred vested early retirement factors are used to calculate your early 

retirement benefits. The deferred vested early retirement factor that applies depends 

on your age when payments begin, as shown in the table on the following page. 

Age at Which You Begin 

Receiving Benefit Payments 

Early Retirement 

Factors 

Deferred Vested Early 

Retirement Factors 

55 11.50 19.00 

56 11.25 18.00 

57 11.00 17.00 

58 10.75 16.00 

59 10.50 15.00 

60 10.25 14.00 

61 10.00 13.00 

62 9.75 12.00 

63 9.50 11.00 

64 9.25 10.00 

65 (or later) 9.00 9.00 

The factors shown in this table are based on whole ages. Your benefit will be calculated 

based on your age in years and months. 

Example: Early Retirement Factors 

Assumptions: 


• Participant’s age at termination: 55 

• Participant’s years of vesting service: 15 



April 2011 

14


$20,000 ÷ 11.50 ÷ 12 months = $144.93 per month (straight life annuity)* 

Example: Early Retirement Factors and Deferred Payments 

Assumptions: 







Example: Deferred Vested Early Retirement Factors 

Assumptions: 









Applying for Your Retirement Benefit 

Once you decide on your retirement date, please notify the HIBC immediately at 1-877- 

216-3222 to provide notice of your intent to retire and request information on processing 

your retirement. Although not a requirement, we request that you give a 60-day notice 

when you plan to retire and inform your supervisor. Your retirement date can be the first 

day of any month. You must also complete and return all of the required forms as 

described in your retirement kit. Otherwise, your retirement date will be delayed. 

As a participant in the Plan, it is your responsibility (or your surviving spouse’s 

responsibility, if applicable) to call the HIBC. 

The actual date your benefit payments begin depends on when you complete and return 

all of the required forms included in your retirement kit. Failure to call the HIBC and/or 

failure to return the required forms as described in your kit may result in a delay in 


April 2011 

15

payment or even a forfeiture of benefits (benefit payments will not be made 

retroactively). 










If you would like to designate someone other than your spouse as a beneficiary, please 

provide the beneficiary’s name, date of birth, and Social Security number. You must also 

provide your spouse’s information even if you choose to have someone other than your 

spouse as a beneficiary. 

If you are not married, you can name a beneficiary for some payment options. 





If you are planning on leaving part of your pension benefit to a non-spouse beneficiary 

after your death, you will also need to provide a legible copy of your non-spouse 

beneficiary’s birth certificate or passport. 


Overview of Available Payment Options 

When you elect a distribution, the Plan offers you the flexibility to select the payment 

option that meets your personal needs. Here is a brief description of each option. 

Following this overview is additional information about how your payments will be 

calculated under each option. Please note: If you also have a benefit under the Pension 

Earnings Plan, the payment option you choose will apply to both your Cash Balance 

benefit and your Pension Earnings benefit using the actuarial assumptions required under 

each plan to convert between optional forms. If you commence your benefit before 

January 1, 2009, all of the optional forms of payment described below are available, 

except for the 75% joint and survivor with pop-up and the 5 and 15-year certain and 

continuous options. 


April 2011 

16

• Straight Life Annuity — You receive monthly payments for your lifetime. When 

you die, the Plan does not pay benefits to anyone else. If you are married when you 

retire, your spouse must consent in writing to this form of distribution. If you are 

single when you retire, your benefit normally will be paid as a straight life annuity, 

unless you elect one of the other forms of payment for which you qualify. 

• Joint and Survivor Annuity (50%, 75% or 100%) ⎯ You receive a monthly 

benefit for your lifetime. When you die, your spouse or other named beneficiary 

receives a monthly payment equal to 50%, 75% or 100% of your monthly benefit 

(whichever you selected) for the rest of his or her lifetime. The monthly benefit you 

receive during your lifetime is smaller than the monthly benefit you would receive 

under the straight life annuity option, because benefits are paid over the joint lifetimes 

of you and your beneficiary. If your beneficiary dies before you but after your benefit 

payments are scheduled to begin, the Plan pays benefits for your lifetime only. 

If your spouse or beneficiary dies before your benefit payments are scheduled to 

begin, you should notify the HIBC immediately and select a different payment option. 

After the date your benefit payments are scheduled to begin, they will not be 

recalculated for a change in marital/beneficiary status. 

If you elect a beneficiary other than your spouse, IRS rules may limit the level of the 

survivor benefit and may prevent the election of a joint annuitant who is significantly 

younger than you for joint and survivor annuity options other than the 50% option. 

Please contact the HIBC for more information. 

• 75% Joint and Survivor Annuity with Pop-Up ⎯ You receive a monthly benefit 

for your lifetime. When you die, your spouse receives a monthly payment equal to 

75% of your monthly benefit for the rest of his or her lifetime. The monthly benefit 

you receive during your lifetime is smaller than the monthly benefit you would 

receive under the straight life annuity option, because benefits are paid over the joint 

lifetimes of you and your spouse. 

If your spouse dies after your benefit payments are scheduled to begin, but before you 

die, the reduced benefit “pops up” to the full straight life annuity and this increased 

amount is paid to you from that point forward for the rest of your lifetime. 

If you and your spouse become divorced, the reduced benefit does not “pop-up.” You 

will continue to receive the reduced benefit, and if you die first, your divorced spouse 

will receive the survivor benefit. 

Note: this option is only available for your spouse. If you are single or want to elect a 

non-spouse beneficiary this, option will not be available to you. 

If you are married when you retire, your benefit normally will be paid as a 75% joint 

and survivor with pop-up with your spouse as the designated survivor, unless you 

elect one of the other forms of payment for which you qualify. (However, if you 

commence your benefit prior to January 1, 2009, the normal form of payment is the 


April 2011 

17

50% joint and survivor annuity with your spouse as beneficiary). If you are married 

when you retire and you wish to choose a form of payment other than a 75% or 100% 

joint and survivor annuity (with or without pop-up) and elect your spouse as your 

beneficiary, your spouse must provide written, notarized consent. 

If your spouse dies before your benefit payments are scheduled to begin, you should 

notify the HIBC immediately to select a different payment option. After the date your 

benefit payments are scheduled to begin, they will not be recalculated for a change in 

marital/beneficiary status. 

• Level Income Annuity — You receive a greater monthly payment for the months 

before you reach age 62, the Social Security early retirement age. At age 62, your 

monthly payment amount is reduced by an estimate of your age 62 Social Security 

benefit. If you commence your Social Security benefit at age 62 and it is 

approximately equal to the reduction provided in your retirement benefit calculation, 

this option enables your income to “level out” pre- and post-age 62. If you are 

married when you retire, your spouse must consent in writing to this form of 

distribution. 

Note: The age at which you may begin your Social Security benefits depends on the 

year of your birth. Be sure to confirm your eligible start date with the Social Security 

Administration. Social Security benefits that start before age 65 are reduced, because 

payments are made over a longer period of time. Your actual Social Security benefit 

may be more or less than the estimate used to determine your Plan benefit under the 

level income option. However, your level income payments will not be adjusted if that 

is the case. 

• 5-, 10- and 15- Year Certain and Continuous — You receive a monthly benefit for 

your lifetime. Electing this form of payment means there will be a reduction in the 

amount of your straight life annuity benefit based on your age at retirement. 

If you die before 60, 120 or 180 payments (guaranteed payments) have been made 

(depending on your election), the remainder of the payments will be paid to your 

designated beneficiary. If your beneficiary dies after you but before all guaranteed 

payments have been made, the remainder will be paid to your beneficiary’s estate in a 

lump sum. If your beneficiary predeceases you before all guaranteed payments have 

been made, you may designate another beneficiary, provided you obtain your 

spouse’s consent, if applicable. You may designate your estate or a trust as your 

designated beneficiary for this payment option. If you are married when you retire, 

your spouse must consent in writing to this form of distribution. 

• Lump Sum — If the greater of your cash balance account or the present value of your 

accrued cash balance benefit is equal to or less than $5,000, you can elect to receive 

your benefit as a lump sum. 

Electing a lump sum payment means you are electing to receive, in a single payment, 

the actuarial present value of the straight life annuity benefit ⎯ there will be no 


April 2011 

18


If you are married when you retire, your spouse must provide written, notarized 

consent in writing to this form of distribution. The lump sum amount will depend on 

your age at retirement, the interest rate used and a mortality table. For a list of the 

applicable interest rates, please access HII Benefits Connect at http://hiibenefits.com, 

or contact the HIBC. 

If you elect the lump sum form of payment for your Plan benefit, you must make a 

direct rollover to an IRA or to another qualified plan in order to defer income taxes on 

the payment. Any taxable amount not directly rolled over will have 20% 

automatically withheld for federal income taxes. 


In the event that your designated beneficiary who is not your surviving spouse or former 

spouse becomes eligible to make a direct rollover of his or her eligible rollover 

distribution under the Plan, such beneficiary may elect to make a direct rollover only to 

an individual retirement account described in Section 408(a) of the Internal Revenue 

Code (the “Code”) or an individual retirement annuity described in Code Section 408(b) 

(other than an endowment contract). 

The following sections provide more information, including examples, about how the 

Plan’s payment options are calculated. Examples are for illustrative purposes only and 

may not be relied upon to represent the actual benefits of any employee. 

Calculating Straight Life Annuity Payments 

If you choose the straight life annuity option, the Plan will calculate your monthly 

payments based on the applicable retirement factors, as described in the “Calculating 

Your Benefit at Retirement” section. 

Calculating Joint and Survivor Annuity Payments 

The following chart provides factors to help you determine your monthly payments under 

the joint and survivor annuity options. Here is how it works: 

1. In the chart, find the number that corresponds to the payment option you want and the 

age at which you want to begin payments. The factors in the chart assume that your 

spouse (or other beneficiary) is within five years of your age. If your spouse (or other 

beneficiary) is more than five years older or younger than you, see the note after the 

chart. 

2. Multiply this factor by your monthly straight life annuity amount (see “Calculating 

Your Benefits at Retirement” for details). The result is the monthly payment you will 

receive for your lifetime. 


April 2011 

19

3. To determine the amount your spouse or other beneficiary will receive after you die, 

multiply your monthly payment amount by the percentage of the benefit (50%, 75% 

or 100%) you chose for your spouse or other beneficiary. 




• Straight life annuity amount: $185.19 per month 

• Option selected: 50% joint and survivor 

• Spouse’s age is within five years of the participant’s age 

In the chart, age 65 under the 50% joint and survivor option corresponds to a factor of 

0.900. 

The monthly payment that the retiree will receive for his or her lifetime will be: 

$185.19 x 0.900 = $166.67 per month 

When the retiree dies, his or her spouse will receive 50% of this amount for life: 

50% x $166.67 = $83.34 per month 

Factors for Calculating Joint and Survivor Annuity Payments 

Your Age When 

Payments Begin 

100% Joint and 

Survivor Annuity 

75% Joint and 



April 2011 

20 

50% Joint and 


55 0.870 0.900 0.930 

56 0.865 0.896 0.927 

57 0.860 0.892 0.924 

58 0.855 0.888 0.921 

59 0.850 0.884 0.918 

60 0.845 0.880 0.915 

61 0.840 0.876 0.912 

62 0.835 0.872 0.909 

63 0.830 0.868 0.906 

64 0.825 0.864 0.903 

65 0.820 0.860 0.900 

66 0.815 0.856 0.897 

67 0.810 0.852 0.894 

68 0.805 0.848 0.891

Factors for Calculating Joint and Survivor Annuity Payments 

Your Age When 


100% Joint and 


75% Joint and 


50% Joint and 


69 0.800 0.844 0.888 

70 0.795 0.840 0.885 

71 0.790 0.836 0.882 

72 0.785 0.832 0.879 

73 0.780 0.828 0.876 

74 0.775 0.824 0.873 

75 0.770 0.820 0.870 

76 0.765 0.816 0.867 

77 0.760 0.812 0.864 

78 0.755 0.808 0.861 

79 0.750 0.804 0.858 

80 0.745 0.800 0.855 

81 0.740 0.796 0.852 

82 0.735 0.792 0.849 

83 0.730 0.788 0.846 

84 0.725 0.784 0.843 

85 0.720 0.780 0.840 


based on your age in years and months. Also, the factors in this table assume that your 

spouse or other beneficiary is within five years of your age. 

• Increase the factor by .01 for each year that your spouse or other beneficiary is more 

than five years older than you. For example: If your spouse or other beneficiary is 

67 and you are 60, add 0.02 to the age 60 factor. If you choose the 100% option, the 

factor is 0.865 (0.845 plus 0.02). 

• Decrease the factor by .01 for each year that your spouse or other beneficiary is more 

than five years younger than you. For example: If your spouse or other beneficiary 

is 53 and you are 60, subtract 0.02 from the age 60 factor. If you choose the 100% 

option, the factor is 0.825 (0.845 minus 0.02). 

Keep in mind that your benefit can never exceed 100% of your normal retirement benefit, 

so the factor used to determine your joint and survivor payment can never be greater than 

1.00. 


April 2011 

21

Calculating 75% Joint and Survivor Annuity with Pop-Up Payments 


the joint and survivor annuity with pop-up options. Here is how it works: 


age at which you want to begin payments. The factors in the chart assume that your 

spouse (or other beneficiary) is within 15 years of your age. If your spouse (or other 

beneficiary) is more than 15 years younger than you, see the note after the chart. 

2. Multiply this factor by your monthly straight life annuity amount (see “Calculating 

Your Benefits at Retirement” for details). The result is the monthly payment you will 


To determine the amount your spouse or other beneficiary will receive after you die, 

multiply your monthly payment amount by 75%. 

If your spouse (or other beneficiary) were to pre-decease you, your benefit would pop-up 

to level of the original straight life annuity. 





• Option selected: 75% joint and survivor with pop-up with spouse as the beneficiary 

• Spouse’s age is within five years of the participant’s age 

In the chart, age 65 under the 75% joint and survivor option corresponds to a factor of 

0.8440. 


$185.19 x 0.8440 = $156.30 per month 


75% x $156.30 = $117.23 per month 

If your spouse were to pre-decease you, your benefit will pop-up to $185.19 per month. 

Your Age When 


75% Joint and 


with Pop-up 

55 0.8930 

56 0.8880 

57 0.8840 


April 2011 

22

Your Age When 


75% Joint and 


with Pop-up 

58 0.8790 

59 0.8740 

60 0.8700 

61 0.8640 

62 0.8590 

63 0.8540 

64 0.8480 

65 0.8440 

66 0.8370 

67 0.8320 

68 0.8260 

69 0.8210 

70 0.8150 

71 0.8080 

72 0.8010 

73 0.7950 

74 0.7890 

75 0.7820 

76 0.7760 

77 0.7680 

78 0.7610 

79 0.7540 

80 0.7470 

81 0.7400 

82 0.7340 

83 0.7260 

84 0.7200 

85 0.7130 


April 2011 

23


based on your age in years and months. Also, the maximum adjustment is .99 and a 15- 

year maximum age difference for younger spouses. 

• Increase the factor by .0075 for each year that your spouse or other beneficiary is 

older than you. For example: If your spouse or other beneficiary is 67 and you are 60, 

add 0.0525 to the age 60 factor. 

• Decrease the factor by .0075 for each year that your spouse or other beneficiary is 

younger than you. For example: If your spouse or other beneficiary is 53 and you are 

60, subtract 0.0525 from the age 60 factor. 

• Keep in mind that your benefit can never exceed 100% of your normal retirement 

benefit, so the factor used to determine your joint and survivor payment can never be 

greater than 1.00. 

Calculating Level Income Annuity Payments 

The chart below provides the factors for determining the amount of your monthly 

payments under the level income option. Here is how it works: 

1. In the chart, find the number that corresponds to the age at which you want to begin 

payments and which level income option you want (in other words, when you 

anticipate starting Social Security benefits ⎯ age 62). 

2. Multiply this factor by your estimated Social Security benefit. The result is the level 

income amount that will be added to your Plan monthly straight life annuity pension 

benefit. The sum will be paid to you up to the age Social Security payments are 

estimated to begin (age 62). 

3. Subtract your estimated Social Security benefit from the level income benefit 

calculated in #2. The result is the monthly amount that will be paid starting with the 

date your Social Security payments are estimated to begin (age 62). 


• Age when employment ends: 55 



• Straight life annuity amount (without the level income option): $144.93 per month 

• Estimated Social Security benefit at age 62: $100 per month 

Social Security benefits that start before age 65 are reduced because payments are made 

over a longer period of time. Your actual Social Security benefit may be more or less 

than the estimate used to determine your Plan benefit under the level income option. 

However, your level income payments will not be adjusted if that is the case. 

If you elect the level income option to age 62, the value of your monthly benefits will be: 


April 2011 

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• $144.93 + ($100 x 0.590) = $203.93 per month before age 62 

• $203.93 - $100 = $103.93 per month beginning at age 62. 

Factors for Determining Level Income Payments 

Age Payments Begin 

Level Income Payments To 

Age 62 

55 0.590 

56 0.630 

57 0.680 

58 0.730 

59 0.790 

60 0.850 

61 0.920 

62 1.000 

63 N/A 

64 N/A 

65 N/A 



Calculating 5-, 10- and 15- Year Certain and Continuous Annuity 

Payments 

The following chart provides factors to help you determine your monthly retirement 

benefit, if you elect any of the certain and continuous annuity payment options (5,10 or 

15 year). Here is how it works: 


payments and the period certain you wish to collect that benefit. In this example we 

have selected the 10-year certain and continuous annuity option. 

2. Multiply this factor by your monthly straight life annuity amount. The result is the 

monthly payment you will receive for your lifetime. 






April 2011 

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In the chart, age 65 corresponds to a factor of 0.9420. The monthly amount that the 

retiree will receive for his or her lifetime will be: 

$185.19 x 0.9420 = $174.45 per month. 

If the retiree dies before the end of the 10-year guarantee period, his or her beneficiary 

will receive the same amount ⎯ $174.45 each month ⎯ for the remainder of the 10-year 

period. 

Factors for Calculating Certain and Continuous Annuity Payments 

Your Age When 


5-Year Certain and 

Continuous Annuity 

Factor 

10-Year Certain 

and Continuous 

Annuity Factor 




55 0.9950 0.9810 0.9610 

56 0.9950 0.9790 0.9570 

57 0.9940 0.9770 0.9520 

58 0.9940 0.9740 0.9470 

59 0.9930 0.9710 0.9400 

60 0.9920 0.9670 0.9330 

61 0.9910 0.9630 0.9260 

62 0.9900 0.9590 0.9170 

63 0.9880 0.9540 0.9070 

64 0.9870 0.9490 0.8960 

65 0.9850 0.9420 0.8840 

66 0.9820 0.9350 0.8700 

67 0.9800 0.9270 0.8560 

68 0.9770 0.9190 0.8410 

69 0.9740 0.9100 0.8250 

70 0.9700 0.8990 0.8070 

71 0.9660 0.8880 0.7890 

72 0.9610 0.8750 0.7700 

73 0.9560 0.8610 0.7500 

74 0.9510 0.8460 0.7290 

75 0.9440 0.8300 0.7060 

76 0.9370 0.8130 0.6830 


April 2011 

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Your Age When 


5-Year Certain and 

Continuous Annuity 

Factor 







77 0.9280 0.7950 0.6590 

78 0.9180 0.7760 0.6350 

79 0.9080 0.7560 0.6110 

80 0.8960 0.7350 0.5870 

81 0.8830 0.7140 0.5630 

82 0.8690 0.6930 0.5400 

83 0.8550 0.6720 0.5170 

84 0.8390 0.6510 0.4950 

85 0.8230 0.6300 0.4740 



What Happens to Your Benefit in Special Situations 

This section describes what happens to your benefit in certain special situations. For 

information about situations not described here, call the HIBC at 1-877-216-3222. 

If You Take a Leave of Absence 

In general, if you take a medical or military leave of absence, your benefit will continue 

to earn monthly pay-based and interest credits, and you will continue to earn credited and 

vesting service. 

Different rules apply to other types of leave. The following table provides examples of 

these special rules. 

Type of Approved Leave 

Medical Leave 

Service and Benefits While on Leave 

You will earn eight hours of vesting service for each 

working day of leave, for a maximum of 24 or 30 

consecutive months, as applicable 

You will earn one month of credited service for each 

month during which you are on leave 

Pay-based credits continue based on the pension-eligible 

compensation you would have received had you not 

gone on leave 

Interest credits continue 


April 2011 

27


Qualifying military leave 

of absence (if you return to 

active employment in a 

timely manner) 

Unpaid family medical 

leave 

Union Leave 

Other unpaid leaves of 

absence 



working day of leave 



Pay-based credits continue based on your average 

compensation during the calendar year immediately 

preceding the calendar year in which the military 

service began 


You will receive vesting hours during the first 12 months 

of your leave only to the extent necessary to prevent a 

break in service (see “Breaks in Service” for details) 

You will not receive credited service, vesting service or 

pay-based credits for the duration of the leave 



working day of leave 



Pay-based credits continue based on the pension-eligible 

compensation you received from the Union while on 

leave 


You will not accrue credited or vesting service, except to 

the extent required by law 

You will not accrue pay-based credits 


If you have questions about how a leave of absence may affect your pension benefit, 

please call the HIBC at 1-877-216-3222. Also, refer to the “Breaks in Service” section for 

additional information about leaves of absence. 

If You Die Before Benefit Payments Begin 

If you are married and you die before receiving your benefits, the Plan will provide your 

vested benefit to your spouse at your retirement eligibility date. Your benefit will 

continue to accrue interest credits up to the time payments begin. Your spouse will 

receive the survivor benefit under the Plan’s 100% joint and survivor annuity. If you 

were in active employment status with the Company at the time of your death, you are 

treated as if you survived to age 55 and then terminated employment. The survivor 

benefit may begin as early as your age 55 and if you had 10 or more years of vesting 


April 2011 

28

service, will be calculated as an early retirement from active service using the earnings 

and service earned through the date of your death. If you were not in active employment 

status with the Company at the time of your death, and were not age 55 but had at least 

10 years of service, the survivor benefit may still begin as early as your age 55 early 

retirement date, but will be calculated using the deferred vested early retirement factors 

(see “Calculating Your Benefit at Retirement” for details.) If you have less than 10 years 

of service at the time of your death, the survivor benefits are based on the normal 

retirement benefit and the earnings and service earned through the date of your death. 

Special rules may apply if you die while on disability, medical, or military leave. Please 

call the HIBC for details. 

Note: It is your surviving spouse’s responsibility to call the HIBC and request a 

retirement kit. 

If you are not vested at the time of your death, the Plan pays no survivor benefit. 

If you are not married when you die, the Plan pays no survivor benefit. 

If your spouse is eligible for survivor benefits, your spouse must make an election 

to receive them. If you die before reaching age 55, your spouse will receive a 

monthly benefit beginning on the first day of the month coincident with or next 

following the date you would have reached age 55, but may elect to delay the 

start of such benefit until you would have reached age 65. If you die on or after 

reaching age 55, your spouse will receive a monthly benefit beginning as soon as 

administratively practicable following your death, but may elect to delay the start 

of such benefit until you would have reached age 65. If you have benefits earned 

under the Cash Balance and Pension Earnings Plan features, your spouse will 

make one election to begin beneficiary payments from both plans. 

Heroes Earnings Assistance and Relief Tax Act of 2008 

To the extent permitted under the Heroes Earnings Assistance and Relief Tax Act of 

2008, if you die during a period of qualifying military service, your beneficiary will be 

entitled to any additional benefits, other than benefit accruals, as if you were reemployed 

on the date immediately preceding your death and then terminated employment on the 

date of your death. Further, if you become totally and permanently disabled or die during 

a period of qualifying military service, your benefit will include the service for benefit 

accrual purposes that you would have received if you were reemployed by the Company 

on the date immediately preceding your disability or death, as applicable, and terminated 

employment on the date of your disability or death. 

If You Are Laid Off (Special Layoff Provision) 

If you are laid off for lack of work before you reach age 55, you may elect an early 

retirement benefit to begin at age 55 based on early retirement factors summarized in 

the “Calculating Your Benefit at Retirement” section, if: 


April 2011 

29

• You have 75 points (refer to “Age and Credited Service” to determine your points) on 

the date of your layoff (regardless of your age) 

OR 

• You are age 53 with 10 years or more of vesting service at the time of your layoff. 

If you receive a layoff notice and you qualify for the special layoff provision and you 

then transfer to another entity instead of being terminated, you are no longer eligible for 

the special layoff provision. If you are laid off and you qualify for the special layoff 

provision and you are then rehired by the Company, the special layoff provision no 

longer applies. If you are subsequently laid off and qualify, you would again be eligible 

for the special layoff provision. 

NOTE: If you do not meet the two eligibility requirements listed above but have at least 

10 years of early retirement service, you may still commence your benefit at age 55. In 

that case, your benefit will be calculated using the deferred vested early retirement 

factors (see “Calculating Your Benefit at Retirement” for details.) 

If You Are Rehired 

If you leave the Company, and you are later rehired into a position covered by the Plan, 

the amount of benefit you accrue during your reemployment is affected by a number of 

factors, as explained below. 

• If you were 100% vested when you terminated employment and are rehired before 

you are scheduled to begin receiving benefit payments, you are 100% vested when 

you are rehired. Beginning on your rehire date, you will continue earning a benefit 

under the Plan. Your credited service under your prior employment period will be 

included in your credited service earned under the new employment period to 

determine your points. You are immediately vested in any new benefits you earn. 

• If you were not vested when you terminated employment and returned to the 

Company, the break in service rules apply. See “Break in Service” for details. 

• If you are rehired by the Company after you are scheduled to begin receiving your 

benefit payments, you will continue earning a benefit under the Plan beginning on 

your rehire date. Your credited service under your prior employment period will be 

included in your credited service earned under the new employment period to 

determine your points. You are immediately vested in any new benefits you earn. In 

addition, your benefit payments will continue if you are rehired by the Company as a 

regular employee, and you have not worked for the Company in any way (as a regular 

employee, consultant, or independent contractor) for at least 12 consecutive months. 

If you do not meet this 12-consecutive month break in service rule, your benefit 

payments will stop if you are rehired by the Company as a regular employee. 


April 2011 

30

If You Transfer 

If you transfer to another part of the Company where you are not covered by this Plan, 

you will continue to earn vesting service and interest credits as if you were covered by 

this Plan. You will not earn benefit credits. 

If you have questions about transfers, please call the HIBC at 1-877-216-3222. 

If You Take Medical Leave 

If you take medical leave, you will continue to earn vesting service, credited service, paybased 

credits, and interest credits after the first day of medical leave (up to a maximum of 

24 months or 30 months, as applicable) Your pay-based credits will be determined using 

your monthly imputed earnings, which are based on your daily rate of pay in effect on the 

last day of the month preceding the start of your medical leave. 

You will stop earning medical leave vesting service and pay-based credits at the earliest 

of the following: 

• At the end of the medical leave 

• If you return to active employment (however, you will continue to earn vesting 

service and pay- based credits as an active employee) 

• If you terminate your employment 

• If you die. 

Once your employment ends, your benefit will continue to earn interest credits. Once you 

reach the Plan’s retirement age (early retirement at age 55 with 10 years of service or 

normal retirement at age 65 with 3 years of service or your 5th anniversary of 

participation in the Plan), you may begin receiving your vested benefit under one of the 

Plan’s payment options. 

Breaks in Service 

A break in service is a period during which you complete less than 501 hours of service 

in a calendar year. If you experience five consecutive breaks in service years before you 

are vested: 

• You forfeit your benefit under the Cash Balance Pension Plan, and 

• You will be treated as a new hire under the Plan upon subsequent rehire. You will 

accrue a new benefit under the Plan and your prior service will not be included in 

your service earned under the new employment period. 

The following type of absence may not cause you to incur a break in service: 

• Family and Medical Leave Act (FMLA) Leave of Absence. To keep from 


an approved FMLA leave of absence. Your hours of service for this purpose are equal 

to the amount you would have received if you continued working. If that number 


April 2011 

31

cannot be determined, you receive eight hours for each day you are absent, up to a 

maximum of 501 hours for a calendar year, but you do not earn vesting service, 

credited service, or early retirement service during this period. 



during that year, the hours are credited towards the following calendar year. 


• You work 1,805 hours in 2004, then you go on family leave 

• You are out on family leave for 12 weeks, from December 2004 through March 2005. 

Because you worked more than 501 hours in 2004, you do not incur a break in 

service. When you return to work in March, you are credited with 480 hours (8 hours 

times 5 days times 12 weeks) toward the 501 hours needed to avoid a break in service 

in 2005. However, the 480 hours are not used to calculate vesting, credited, or early 

retirement service and are used only to avoid a break in service. 


April 2011 

32

DETAILS ABOUT THE PENSION EARNINGS PLAN 

This section describes the Plan terms for benefits earned on and after January 1, 2009 

under the Pension Earnings Plan formula. 


Plan Effective Date 

The Pension Earnings Plan applies to W-2 earnings paid on or after January 1, 2009. 

Plan Cost 

The Company pays the entire cost of the Pension Earnings Plan ⎯ you do not make any 

contributions. All contributions are held in a trust for your benefit. 

Earning a Benefit 

You earn a pension benefit based on a formula that is payable after you leave the 

Company and reach the Plan’s retirement age. If you transfer from the Company to 

another company owned entirely or primarily by HII, you must terminate employment 

from that company in order to commence your pension benefit from the Plan. 

Vesting 

You have a non-forfeitable right to the full value of your Pension Earnings Plan benefit 

after completing five years of vesting service or upon attaining age 65 while an active 

employee. Note: if you were hired prior to January 1, 2009 you will be fully vested after 

completing three years of vesting service. 

Starting Your Benefits 

Your retirement date can be the first day of any month. You must call the HIBC to 

request your retirement kit. Please see the “Applying for Your Retirement Benefit” 

section for details. 

Eligibility and Joining the Plan 

Eligibility 

All individuals reported on the Company’s payroll records as active employees who were 

hired on or after June 7, 2004, and are actively employed on or after January 1, 2009, and 

are covered by the Collective Bargaining Agreement between the Company and the 

United Steelworkers, effective January 1, 2009 are eligible to participate in the Plan. 

Individuals not covered by this Pension Earnings Plan include the following: 

• Nonresident aliens 


April 2011 

33

• Individuals hired by an outside agency (e.g., a “job shopper” or a “leased employee”) 

• Individuals covered by special contracts 

• Employees of a classification who are not covered by the Collective Bargaining 

Agreement 

• Individuals who are otherwise ineligible under the rules of the Plan. 

Joining the Plan 

If you are an eligible employee, as described above, you automatically participate in the 

Pension Earnings Plan. There is nothing you need to do to enroll. 

Eligible employees hired on or after January 1, 2009 become participants in the Pension 

Earnings Plan on their first day of employment. Employees of a non-participating unit 

who become eligible for the Pension Earnings Plan as a result of a transfer become 

participants on their date of transfer. 

How the Plan Works 

The Pension Earnings Plan provides you with a benefit that is based on a formula that 

considers your earnings and years of service earned after December 31, 2008. 

Your Benefit 

When you retire at age 65, your Pension Earnings Plan benefit will be calculated using 

the following formula: 

Your Total Contributions 

multiplied by 

25% 

divided by 

12 

Note: Your Total Contributions are 5% of Plan Wages( W-2 wages 

including pre-tax deferrals plus pay credits during certain eligible 

leaves of absence as explained below), all earned on or after 

January 1, 2009. 


April 2011 

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Example 

Let’s assume John retires at age 65 on January 1, 2039. During John’s 30 years of 

employment (beginning January 1, 2009, and ending December 31, 2038), his W-2 wages 

plus his pre-tax deferrals totaled $1.2 million (an average of $40,000 per year). 

John’s monthly pension at normal retirement will be calculated as follows: 

Total Contributions = $60,000 

($1.2 million of wages multiplied by 5%) 

multiplied by 

25% 

divided by 

12 

equals 

$1,250 per month 

John’s monthly pension benefit is $1,250, payable at age 65. The amount of money he 

actually receives will vary based on his age at distribution and the payment option he 

chooses. See page 35 for information about Receiving Your Benefit and page 41 for 

information about Payment Options. 

Pre-2009 Cash Balance Benefit 

Employees who participated in the Cash Balance Plan will receive an additional pension 

as described in the Cash Balance section. See page 4 for full details of this Plan. 

Plan Wages 

Plan Wages equal the W-2 wages you receive from the Company on and after January 1, 

2009 plus amounts deferred to the 401(k) and FSA or other similar pre-tax arrangements 

while you are an active participant in the Pension Earnings Plan. 

Note: The Plan Wages used for determining your Pension Earnings Plan benefits may 

not equal Box 1 on the W-2 you receive from the Company 

Your Total Contributions 

Total Contributions describe the amount of total Plan Wages credited toward your 

pension benefit for calculation purposes. Total Contributions are equal to 5% of your 

total Plan Wages plus any other pay credits that may be deemed to apply during certain 

periods of absence, such as Disability or Military Leave. See the chart in the section 

titled “If You Take a Leave of Absence”. 


April 2011 

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Vesting in Your Benefit 

Vesting means you have earned a non-forfeitable right to your Pension Earnings Plan 

benefit. If you were a participant in the Cash Balance Plan prior to January 1, 2009 and 

you are an active employee on January 1, 2009, you become vested in your Pension 

Earnings Plan benefit after completing three years of vesting service with the Company. 

If you were hired on or after January 1, 2009, you become vested after completing five 

years of vesting service with the Company. In any case, you will become vested in your 

Pension Earnings Plan benefit upon attaining age 65 while an active employee, regardless 

of your completed years of vesting service. 

You earn a year of vesting service for each calendar year in which you are credited with 

1,000 or more hours of vesting service. You are given credit for 200 hours of vesting 

service for each month in which you complete at least one hour of vesting service 

(including annual leave, jury duty, all periods of military service, and, in some cases, 

certain qualified leaves of absence, such as union leave and medical leaves up to two 

years from the beginning of the leave). 


• Date of hire: September 1, 2009 

• Vesting hours as of December 31, 2009 = 800 hours 

• Vesting hours in 2010: 2,400 hours 

In this example, the participant does not have 1,000 or more hours of vesting service in 

2009, so he or she does not earn a year of vesting service for that year. In 2010, the 

participant has 2,400 vesting hours, so he or she does earn one year of vesting service for 

2010. 

Once you become vested, you are always vested. Even if you leave the Company before 

you are eligible to begin receiving a benefit, you are entitled to a retirement benefit from 

the Plan if you are vested. If you leave the Company before you are vested, you forfeit 

your benefit. (However, if you are rehired, you may be eligible to continue earning 

vesting service for your benefit. See “Breaks in Service” for details.) 

Receiving Your Benefit 

If you are a vested participant, you may begin to receive your accrued benefits upon 

attaining retirement age and retiring. The normal retirement age is 65. Vested participants 

may retire as early as age 55 or attaining the Rule of 85 requirements, as described below. 

Alternatively, vested participants may delay retirement beyond normal retirement age. 

After reaching age 65 or your employment ends from the Company or another company 

owned entirely or primarily by HII, your vested Pension Earnings Plan benefit is payable: 

• At age 65, regardless of your years of vesting service 

• As early as age 55, if you are vested 

• Upon attaining the Rule 85 requirements. 


April 2011 

36

Upon reaching age 65 if you continue to be employed by the Company, you will have the 

option of beginning payment of your Pension Earnings Plan benefit at any time you 

choose: 

• If you chose to begin receiving your benefit through one of the Plan’s payment 

options: 

Your benefit will be calculated as if you had retired upon the Start Date chosen. 

Therefore, you will be working for the Company and receiving a monthly pension 

benefit at the same time. 

The receipt of benefits while you continue to work for the Company will not affect 

your right to accrue benefits under the Pension Earnings Plan. 

As long as you continue to work for the Company, on each anniversary of your Start 

Date, the amount paid to you for the past year is compared to the additional benefit 

accrued under the Pension Earnings Plan during the past year. This comparison 

may result in an adjustment of the monthly benefit but your benefit will never be 

reduced. 

• If you chose to delay the start of your benefit beyond age 65 while still actively 

employed: 

The Delayed Retirement Benefit Enhancement will apply. See the “Delayed 

Retirement Benefit” section on page 38 for more information. 

The purpose of this Enhancement is to compensate you for the benefit payments you 

may have lost because of delaying receipt beyond age 65. 

If you terminate employment with the Company before retirement with a vested benefit, 

the HIBC will send you a notice at age 65 informing you that your benefit payments may 

begin immediately. This notice will be sent to the last address you provided to the HIBC. 

Terminated deferred vested participants who first elect to begin receiving benefits after 

age 65 will, with spousal consent if applicable, be paid benefits retroactively to the later 

of age 65 or the last day of your covered employment, in the form of a monthly annuity 

in the amount that would have been payable at age 65, and a lump sum equal to the 

stream of payments the participant would have received beginning at age 65, plus 

interest. 

It is your responsibility to apply for your retirement benefits and keep the HIBC informed 

of your current address. 

Calculating Your Benefit at Retirement 

If you leave the Company with a vested benefit or you chose to start your benefit at age 

65 while actively employed with the Company, your benefit will be calculated when you 

reach retirement age and request a distribution. 

Normal Retirement Benefit 

For retirement at age 65, the monthly benefit payable is the amount described in the How 

the Plan Works: Your Benefit section (see page 33). Basically, 


April 2011 

37

Your Total Contributions multiplied by 25% divided by 12 

Early Retirement Benefit 

If you leave the Company (or another company owned entirely or primarily by HII) with 

a vested benefit, you may choose to begin receiving your Pension Earnings Plan benefit 

as early as age 55. 

If you retire before age 65, your benefit is first calculated in the same manner as 

described above under “Normal Retirement Benefit,” then reduced by ¼% for each 

month of early commencement. The reduction adjusts for the additional payments you 

will receive by starting before age 65. The following table illustrates the factor applied to 

your benefit to take into account the ¼% reduction for each month of early start: 



Early Retirement Factor 

55 70% 

56 73% 

57 76% 

58 79% 

59 82% 

60 85% 

61 88% 

62 91% 

63 94% 

64 97% 

65 100% 



Example: Early Retirement Factors 

Assumptions: 

• Monthly benefit payable at age 65: $1,250 




$1,250 x 70% = $875 per month (straight life annuity)* 


April 2011 

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Early Retirement ⎯ Rule of 85 

The reductions in the benefit for early retirement as well as the minimum age for 

retirement are eliminated if you qualify for the early retirement benefit enhancement 

under the Rule of 85. 

To qualify for the Rule of 85: 

• Your age plus the number of years of Covered Servicee you accumulate must add up 

to 85 or more; and 

• During the twenty-four month period preceding the month in which you retire,* you 

must have had at least ten (10) months for which contributions were credited to the 

Plan on your behalf; and 

• The years of Covered Service that count in making this calculation are those calendar 

years in which there were at least five (5) months for which contributions were 

credited to the Plan on your behalf 

Covered Service is earned while a covered participant in the Plan, including any time 

under the Cash Balance Plan formula. However, it excludes: 

• Service earned for periods of employment prior to becoming a participant in the Cash 

Balance or Pension Earnings Plan. 

• Service earned for periods of employment in positions outside of the bargaining unit 

either prior to or after participating in the Cash Balance or Pension Earnings Plan. 

If you meet the Rule of 85 requirements while actively employed, you may retire before, 

on or after attaining age 55 and your monthlybenefit will not be reduced for early 

commencement. 

* A Participant is considered as retired from employment only if he or she has made a 

complete, bona fide severance and termination employment relationship with the 

Company. 

Delayed Retirement Benefit 

If you elect not to begin your benefit at age 65 and delay the start of your pension, your 

benefit is first calculated in the same manner as described above under “Normal 

Retirement Benefit.” Then your benefit is enhanced (increased) by a percentage factor to 

compensate you for delaying the start of your pension beyond age 65. The longer you 

delay the benefit, the greater the increase. Please note that this only applies to an active 

employee. The percentage factors at the various ages at retirement are shown in the table 

on the following page: 


April 2011 

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Delayed Retirement 

Enhancement Factor 

65 100.0% 

66 109.6% 

67 119.2% 

68 128.8% 

69 138.4% 

70 148.0% 

71 157.6% 

72 167.2% 

73 176.8% 

74 186.4% 

75 196.0% 

76 205.6% 

77 215.2% 

78 224.8% 

79 234.4% 

80 244.0% 

81 253.6% 

82 263.2% 

83 272.8% 

84 282.4% 

85 292.0% 



Example: Delayed Retirement Enhancement Factors 

Assumptions: 

• Monthly benefit payable at age 65: $1,250 




April 2011 

40


$1,250 x 148.0% = $1,850 per month (straight life annuity)* 



Applying for Your Retirement Benefit 

Once you decide on your retirement date, call the HIBC at 1-877-216-3222 to provide 

notice of your intent to retire and request information on processing your retirement. 

Although not required, you should give a 60-day notice when you plan to retire and 

inform your supervisor. Your retirement date can be the first day of any month. You must 

also complete and return all of the required forms as described in your retirement kit. 

Otherwise, your retirement date will be delayed. 

As a participant in the Plan, it is your responsibility (or your surviving spouse’s 

responsibility, if applicable) to call the HIBC. 

The actual date your benefit payments begin depends on when you complete and return 

all of the required forms included in your retirement kit. Failure to call the HIBC and/or 

failure to return the required forms as described in your kit may result in a delay in 

payment or even a forfeiture of benefits (benefit payments will not be made 

retroactively). 










If you would like to designate someone other than your spouse as a beneficiary, 

please provide the beneficiary’s name, date of birth, and Social Security number. 

You must also provide your spouse’s information even if you choose to have 

someone other than your spouse as a beneficiary. 

If you are not married, you can name a beneficiary for some payment options. 





April 2011 

41


If you are planning on leaving part of your pension benefit to a non-spouse beneficiary 

after your death, you will also need to provide a legible copy of your non-spouse 

beneficiary’s birth certificate or passport. 


Overview of Available Payment Options 

When you elect a distribution, the Plan offers you the flexibility to select the payment 

option that meets your personal needs. Here is a brief description of each option. 

Following this overview is additional information about how your payments will be 

calculated under each option. Please note: If you also have a benefit under the Cash 

Balance Plan, the payment option you choose for your Pension Earnings Plan benefit will 

also be the payment option that applies to your Cash Balance Plan benefit. 

• Straight Life Annuity ⎯ You receive monthly payments for your lifetime. When you 

die, the Plan does not pay benefits to anyone else. If you are married when you retire, 

your spouse must consent in writing to this form of distribution. If you are single 

when you retire, your benefit normally will be paid as a straight life annuity, unless 

you elect one of the other forms of payment for which you qualify. 

• Joint and Survivor Annuity (50%, 75% or 100%) ⎯ You receive a monthly benefit 

for your lifetime. When you die, your spouse or other named beneficiary receives a 

monthly payment equal to 50%, 75% or 100% of your monthly benefit (whichever 

you selected) for the rest of his or her lifetime. The monthly benefit you receive 

during your lifetime is smaller than the monthly benefit you would receive under the 

straight life annuity option, because benefits are paid over the joint lifetimes of you 

and your beneficiary. If your beneficiary dies before you but after your benefit 

payments are scheduled to begin, the Plan pays benefits for your lifetime only. 


and survivor with pop-up and with your spouse as the designated survivor, unless you 

elect one of the other forms of payment for which you qualify. If you are married 

when you retire and choose a form of payment other than a 75% or 100% joint and 

survivor annuity with your spouse as beneficiary, your spouse must provide written, 

notarized consent. 

If your spouse or beneficiary dies before your benefit payments are scheduled to 

begin, you should notify the HIBC immediately and select a different payment option. 

After the date your benefit payments are scheduled to begin, they will not be 

recalculated for a change in marital/beneficiary status. 

If you elect a beneficiary other than your spouse, IRS rules may limit the level of the 

survivor benefit and may prevent the election of a joint annuitant who is significantly 


April 2011 

42

younger than you for joint and survivor annuity options other than the 50% option. 

Please contact the HIBC for more information. 

• Joint and Survivor Annuity with Pop-Up at 75% ⎯ You receive a monthly benefit 

for your lifetime. When you die, your spouse receives a monthly payment equal to 

75% of your monthly benefit (whichever you selected) for the rest of his or her 

lifetime. The monthly benefit you receive during your lifetime is smaller than the 

monthly benefit you would receive under the straight life annuity option, because 

benefits are paid over the joint lifetimes of you and your spouse. 

If your spouse dies after your benefit payments are scheduled to begin, but before you 

die, the reduced benefit "pops up" to the full straight life annuity and this increased 

amount is paid to you from that point forward for the rest of your lifetime. 

If you and your spouse become divorced, the reduced benefit does not "pop-up.” You 

will continue to receive the reduced benefit, and if you die first, the divorced spouse 

will receive the surviving spouse benefit. 

Note: this option is only available for your spouse. If you are single or want to elect a 

non-spouse beneficiary, this, option will not be available to you. 


and survivor with pup-up and with your spouse as the designated survivor, unless you 

elect one of the other forms of payment for which you qualify. If you are married 

when you retire and choose a form of payment other than a 75% or 100% joint and 

survivor annuity with or without pop-up and with your spouse as beneficiary, your 

spouse must provide written, notarized consent. 

If your spouse dies before your benefit payments are scheduled to begin, you should 

notify the HIBC immediately and select a different payment option. After the date 

your benefit payments are scheduled to begin, they will not be recalculated for a 

change in marital/beneficiary status. 

• Level Income Annuity — You receive a greater monthly payment for the months 

before you reach age 62, the Social Security early retirement age. At age 62, your 

monthly payment amount is reduced by an estimate of your age 62 Social Security 

benefit. If you commence your Social Security benefit at age 62 and it is 

approximately equal to the reduction provided in your retirement benefit calculation, 

this option enables your income to “level out” pre- and post-age 62. If you are 

married when you retire, your spouse must consent in writing to this form of 

distribution. 

Note: The age at which you may begin your Social Security benefits depends on the 

year of your birth. Be sure to confirm your eligible start date with the Social Security 

Administration. Social Security benefits that start before age 65 are reduced, because 

payments are made over a longer period of time. Your actual Social Security benefit 

may be more or less than the estimate used to determine your Plan benefit under the 


April 2011 

43

level income option. However, your level income payments will not be adjusted if that 

is the case. 

• 5-, 10- and 15-Year Certain and Continuous ⎯ You receive a monthly benefit for 

your lifetime. Electing this form of payment means there will be a reduction in the 

amount of your straight life annuity benefit based on your age at retirement. 

If you die before 60, 120 or 180 payments (guaranteed payments) have been made 

(depending on your election), the remainder of the payments will be paid to your 

designated beneficiary. If your beneficiary dies after you but before all guaranteed 

payments have been made, the remainder will be paid to your beneficiary’s estate in a 

lump sum. If your beneficiary predeceases you before all guaranteed payments have 

been made, you may designate another beneficiary, provided you obtain your 

spouse’s consent, if applicable. You may designate your estate or a trust as your 

designated beneficiary for this payment option. If you are married when you retire, 

your spouse must consent in writing to this form of distribution. 

These options are not available in connection with disability benefits. 

• Optional Lump Sum Death Benefit — This option provides you with a postretirement 

lump sum death benefit of 12 times a reduced monthly benefit in 

conjunction with any of the other monthly annuity options described above. The cost 

of providing this option is covered by imposing a reduction factor of 4.5% on the 

straight life annuity otherwise payable to you. Therefore, this optional lump sum 

death benefit is based on 95.5% of the straight life annuity benefit regardless of the 

actual optional annuity election you make. This option is available only for your 

benefit earned under the Pension Earning Plan. 


consent in writing to this form of distribution. 

• Small Lump Sum Benefit — If the present value of your accrued benefit (including 

surviving spouse death benefits) is equal to or less than $5,000, you can elect to 

receive your benefit as a lump sum. 

Electing a lump sum payment means you are electing to receive, in a single payment, 

the actuarial present value of the straight life annuity benefit ⎯ there will be no 



consent in writing to this form of distribution. The lump sum amount will depend on 

your age at retirement, the interest rate used and a mortality table. For a list of the 

applicable interest rates, please access HII Benefits Connect at http://hiibenefits.com, 

or contact the HIBC. 

If you elect the lump sum form of payment for your Plan benefit, you must make a 

direct rollover to an IRA or to another qualified plan in order to defer income taxes on 


April 2011 

44

the payment. Any taxable amount not directly rolled over will have 20% 

automatically withheld for federal income taxes. 


In the event that your designated beneficiary who is not your surviving spouse or former 

spouse becomes eligible to make a direct rollover of his or her eligible rollover 

distribution under the Plan, such beneficiary may elect to make a direct rollover only to 

an individual retirement account described in Section 408(a) of the Internal Revenue 

Code (the “Code”) or an individual retirement annuity described in Code Section 408(b) 

(other than an endowment contract). 

The following sections provide more information, including examples, about how the 

Plan’s payment options are calculated. Examples are for illustrative purposes only and 

may not be relied upon to represent the actual benefits of any employee. 

Calculating Straight Life Annuity Payments 

If you choose the straight life annuity option, the Plan will calculate your monthly 

payments based on the applicable retirement factors, as described in the “Calculating 

Your Benefit at Retirement” section. 

Calculating Joint and Survivor Annuity Payments 


the joint and survivor annuity options. Here is how it works: 

1. The joint and survivor factor is based on the option selected, your age and the age of 

your spouse or other beneficiary. The joint and survivor factors are determined as 

follows: 

100% Joint and Survivor Factor = .8700 +/- .0075 for each year your spouse or other 

beneficiary is older/younger than you. 





Keep in mind that your benefit can never exceed 100% of your normal retirement 

benefit, so the factor used to determine your joint and survivor payment can never 

be greater than 1.0000. 

Multiply this factor by your monthly straight life annuity amount (see “Calculating Your 

Benefits at Retirement” for details). The result is the monthly payment you will 



multiply your monthly payment amount by the percentage of the benefit (50%, 75% 

or 100%) you chose for your spouse or other beneficiary. 


April 2011 

45


• Your age at which payments begin: 65 

• Spouse or other beneficiary age at which payments begin: 60 

• Straight life annuity amount: $1,062.50 per month 


50% Joint and Survivor Factor = .9200 + [(60 – 65) x .0075] = .9200 - .0375 = .8825 

Note: if your spouse or other beneficiary is 5 years older than you, the 50% Joint 

and Survivor Factor = .9200 + (70 – 65) x .0075] = .9200 + .0375 = .9575 


$1,062.50 x 0.8825 = $937.66 per month 


50% x $937.66 = $468.83 per month 

Calculating Joint and Survivor Annuity with Pop-Up Payments 

The following provides factors to help you determine your monthly payments under the 

joint and survivor annuity with pop-up. Here is how it works: 

1. The joint and survivor with pop-up factor is based on the option selected, your age 

and the age of your spouse or other beneficiary. The joint and survivor with pop-up 

factors are determined as follows: 

75% Joint and Survivor with Pop-Up Factor = .8800 +/- .0075 for each year your 

spouse or other beneficiary is older/younger than you. 

Keep in mind that your benefit can never exceed 100% of your normal retirement 

benefit, so the factor used to determine your joint and survivor payment can never 

be greater than 1.0000. 

Multiply this factor by your monthly straight life annuity amount (see “Calculating Your 

Benefits at Retirement” for details). The result is the monthly payment you will 



multiply your monthly payment amount by 75%. 

If your spouse (or other beneficiary) were to pre-decease you, your benefit would pop-up 

to level of the original straight life annuity. 





April 2011 

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75% Joint and Survivor Factor = .8800 + [ (60 – 65) x .0075 ] = .8800 - .0375 = .8425 

Note: if your spouse or other beneficiary is 5 years older than you, the 75% Joint and 

Survivor Factor = .8800 + [ (70 – 65) x .0075 ] = .8800 + .0375 = .9175 


$1,062.50 x 0.8425 = $895.16 per month 


75% x $895.16 = $671.37 per month 

If your spouse were to pre-decease you, your benefit will pop-up to $1,062.50 per month. 

Calculating Level Income Annuity Payments 

The chart below provides the factors for determining the amount of your monthly 

payments under the level income option. Here is how it works: 


payments and which level income option you want (in other words, when you 

anticipate starting Social Security benefits ⎯ age 62). 

2. Multiply this factor by your estimated Social Security benefit. The result is the level 

income amount that will be added to your Plan monthly straight life annuity pension 

benefit. The sum will be paid to you up to the age Social Security payments are 

estimated to begin (age 62). 

3. Subtract your estimated Social Security benefit from the level income benefit 

calculated in #2. The result is the monthly amount that will be paid starting with the 

date your Social Security payments are estimated to begin (age 62). 


• Age when employment ends: 55 


• Straight life annuity amount (without the level income option): $875.00 per month 

• Estimated Social Security benefit at age 62: $1,000.00 per month 

Social Security benefits that start before age 65 are reduced because payments are made 

over a longer period of time. Your actual Social Security benefit may be more or less 

than the estimate used to determine your Plan benefit under the level income option. 

However, your level income payments will not be adjusted if that is the case. 

If you elect the level income option, the value of your monthly benefits will be: 


April 2011 

47

• $875.00 + ($1,000.00 x 0.590) = $1,465.00 per month before age 62 

• $1,465.00 - $1,000.00 = $465.00 per month beginning at age 62. 

Factors for Determining Level Income Payments 

Age Payments Begin 

Level Income Payments To Age 

62 

55 0.590 

56 0.630 

57 0.680 

58 0.730 

59 0.790 

60 0.850 

61 0.920 

62 1.000 

63 N/A 

64 N/A 

65 N/A 



Calculating 5-, 10- and 15- Year Certain and Continuous Annuity 

Payments 

The following chart provides factors to help you determine your monthly retirement 

benefit, if you elect any of the certain and continuous annuity payment options (5, 10 or 

15 year). Here is how it works: 


age at which you want to begin payments. 

2. Multiply this factor by your monthly straight life annuity amount. The result is the 

monthly payment you will receive for your lifetime. 




In the chart, for the 10 year Certain and Continuous Annuity option, age 65 corresponds 

to a factor of 0.9100. The monthly amount that the retiree will receive for his or her 

lifetime will be: 


April 2011 

48

$1,250.00 x 0.9100 = $1,137.50 per month. 

If the retiree dies before the end of the 10-year guarantee period, his or her beneficiary 

will receive the same amount ⎯ $1,137.50 each month ⎯ for the remainder of the 10- 

year period. 


Your Age When 











55 0.9700 0.9100 0.8700 

56 0.9700 0.9100 0.8650 

57 0.9700 0.9100 0.8600 

58 0.9700 0.9100 0.8550 

59 0.9700 0.9100 0.8500 

60 0.9700 0.9100 0.8450 

61 0.9700 0.9100 0.8400 

62 0.9700 0.9100 0.8350 

63 0.9700 0.9100 0.8300 

64 0.9700 0.9100 0.8250 

65 0.9700 0.9100 0.8200 

66 0.9650 0.8950 0.8000 

67 0.9600 0.8800 0.7800 

68 0.9550 0.8650 0.7600 

69 0.9500 0.8500 0.7400 

70 0.9450 0.8350 0.7200 

71 0.9400 0.8200 0.7000 

72 0.9350 0.8050 0.6800 

73 0.9300 0.7900 0.6600 

74 0.9250 0.7750 0.6400 

75 0.9200 0.7600 0.6200 

76 0.9150 0.7450 0.6000 

77 0.9100 0.7300 0.5800 

78 0.9050 0.7150 0.5600 


April 2011 

49


Your Age When 











79 0.9000 0.7000 0.5400 

80 0.8950 0.6850 0.5200 

81 0.8900 0.6700 0.5000 

82 0.8850 0.6550 0.4800 

83 0.8800 0.6400 0.4600 

84 0.8750 0.6250 0.4400 

85 0.8700 0.6100 0.4200 

86 0.8650 0.5950 0.4000 

87 0.8600 0.5800 0.3800 

88 0.8550 0.5650 0.3600 

89 0.8500 0.5500 0.3400 

90 0.8450 0.5350 0.3200 

91 0.8400 0.5200 0.3000 



Calculating Optional Lump Sum Death Benefit 

The following helps you determine your monthly payments if you choose the optional 

lump sum death benefit in conjunction with any of the other monthly annuity options 

described above. 95.5% of straight life annuity is used in determining the monthly 

annuity option you choose and upon death 12 times the 95.5% of the straight life annuity 

is payable as a one time lump sum. 




• Option selected: 50% Joint and Survivor with Optional Lump Sum Death Benefit 


• 95.5 % of Straight life annuity amount: $1,014.69 per month 

• Option selected: 50% Joint and Survivor with Optional Lump Sum Death Benefit 


April 2011 

50

50% Joint and Survivor Factor = .9200 + [ (60 – 65) x .0075 ] = .9200 - .0375 = .8825 


$1,014.69 x 0.8825 = $895.46 per month 

Note: 95.5% of the straight life annuity 

is used because of the optional lump sum death benefit. 

When the retiree dies, his or her spouse will receive 50% of this amount for life plus the 

one-time optional lump sum death benefit: 

50% x $895.46 = $477.73 per month plus 

1,014.69 x 12 = 12,176.28 in a one time payment 

What Happens to Your Benefit in Special Situations 

This section describes what happens to your benefit in certain special situations. For 

information about situations not described here, call the HIBC at 1-877-216-3222. 


In general, if you take a medical or military leave of absence, you will continue to accrue 

Total Contributions, and you will continue to earn Rule of 85, Disability Benefit and 

vesting service. 

Different rules apply to other types of leave. The following table provides examples of 

these special rules. 


Medical or Workers’ 

Compensation Leave 

Qualifying military leave 

of absence (if you return to 

active employment in a 

timely manner) 


You will deem to be paid for each working day of leave 

You will earn 200 hours of vesting, Rule of 85 and 

Disability Benefit service for each complete or partial 

month you are deemed to be paid during which you 

are on leave 

Your Total Contributions can not be less than the 

minimum monthly contribution (equal to 173.33 hours 

x your Standard Hourly Wage x 5%) for any partial or 

complete month you are on leave, for a maximum of 

24 consecutive months 





are on leave 




April 2011 

51


Unpaid family medical 

leave 

Union Leave 

Other unpaid leaves of 

absence 



complete month you are on leave, prorated for months 

in which you earn wages, for a maximum of 60 

consecutive months as long as you meet USERRA 

requirements 

You will receive vesting hours during the first 12 months 

of your leave only to the extent necessary to prevent a 

break in service (see “Breaks in Service” for details) 

You will not receive Rule of 85, vesting or Disability 

Benefit service for the duration of the leave 

You will also not receive the minimum monthly 

contribution for the duration of the leave 





are on leave 




complete month you are on leave 

You will not receive Rule of 85, Disability or vesting 

service for the duration of the leave except to the 

extent required by law 

You will also not receive the minimum monthly 

contribution for the duration of the leave 

If you have questions about how a leave of absence may affect your pension benefit, 

please call the HIBC at 1-877-216-3222. Also, refer to the “Breaks in Service” section for 

additional information about leaves of absence. 

If You Become Disabled 

You will receive a disability benefit if you are actively employed by the Company, have 

at least five years of Disability Service and become disabled within the meaning of the 

federal Social Security Act as documented by the Social Security Administration. 

• Your benefit is calculated based on contributions made on your behalf, and will not 

be reduced for early commencement. 

• Your benefit is paid retroactive to the date of disability, with a maximum of 12 

months of retroactivity from the date your application is received. 


April 2011 

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Disability Benefit 

You are eligible for a disability benefit if, regardless of age, you become disabled within 

the meaning of the Federal Social Security Act while actively employed by the Company 

and have at least five years of Disability Service. 

Disability Service is equal to: 

• Vesting Service only including those periods during which you were an active 

participant in the Cash Balance and Pension Earnings Plan. 

The sole evidence the Plan will consider on the issue of whether an employee is under a 

disability and, if so, when the disability began, are written determinations of the Social 

Security Administration. If an employee qualifies for a disability benefit, the benefit is 

calculated as if you were age 65 and retired as of the date of disability. There is no 

reduction for early commencement, with payment retroactive to date of disability with a 

maximum of twelve months retroactivity from the date notification of intent to retire is 

received by the HIBC. 

The disability benefit is paid until you are no longer disabled, die or the first of the 

calendar month in which you become age 65, whichever occurs first. 

If you survive to age 65, you are treated as if you just retired at the Normal Retirement 

Age. Your Normal Retirement Benefit will be the same amount as your Disability 

Benefit. All options described previously are available to you for your Disability Benefit 

at Normal Retirement Age. You must make these elections at the time you start your 

Disability Benefit and your benefit will be reduced for any options selected. 

Similarly, if you die before reaching age 65, your Disability Benefit will cease and you 

will be treated as a terminated vested participant who dies before retirement and before 

reaching age 65. Your surviving spouse, if any, is entitled to the pre-retirement spousal 

benefit as described below. Note: the Lump Sum Death Benefit and the Surviving 

Dependent Children’s Benefit are not available for participants receiving Disability 

Benefits. 

If You Die Before Benefit Payments Begin 

If you have benefits accrued under both the Cash Balance Plan feature and the Pension 

Earnings Plan feature, your spouse must make separate elections to commence the 

survivor annuity benefits under each feature. 

Surviving Spouse Benefit 

• If you are vested and die before reaching the earliest retirement age under the Plan*: 

If you are married at the time of death, your spouse will receive a monthly benefit. 

Unless your spouse elects otherwise, this monthly benefit will begin to be paid to 

your spouse on the first day of the month coincident with or next following the 

date you would have reached the earliest retirement age under the Plan, and will 

continue to be paid for the rest of your spouse's life. 


April 2011 

53

The amount of your spouse's monthly benefit will be equal to 50% of what you would 

have received if you had lived to the earliest retirement age under the Plan and 

elected a straight life annuity. 

Your spouse may, however, elect to delay the start date of the benefit to anytime after 

when you would have reached the earliest retirement age under the Plan, up until 

the date on which you would have been age 65. 

If your spouse does elect to delay the start date, the amount of the spousal monthly 

benefit as described above is increased ¼% for each month the benefit is delayed. 

The longer the benefit start date is delayed, the greater the amount of the monthly 

benefit. 

* The Earliest Retirement Age under the Plan for purposes of the Surviving Spouse 

Benefit is age 55. 

• If you are vested and die after reaching the earliest retirement age under the Plan, but 

before starting your pension: 

If you are married at the time of death, your spouse will receive a monthly benefit 

which begins immediately and continues for the remainder of your spouse's life. 

Your spouse may, however, elect to delay the start of the benefit to anytime up until 

when you would have been age 65. 

The amount of the spousal benefit is equal to the survivor portion of the 75% joint 

and survivor annuity with pop-up that you would have been eligible for if you 

retired as of your date of death. Refer to the Calculating Joint and Survivor 

Annuity Payments, see page 41. 

If your spouse does elect to delay the start date, the amount of the spousal monthly 

benefit as described above is increased ¼% for each month the benefit is delayed. 

The longer the benefit start date is delayed, the greater the amount of the monthly 

benefit. 

If you are vested and die before retirement while actively employed, 

A lump sum death benefit equal to your Total Contributions is payable immediately 

upon your death. 

If you are married at the time of death, your spouse must choose the lump sum death 

benefit or the applicable annuity described above. Your spouse cannot have both. 

In no event, however, will the lump sum death benefit be less than the actuarial 

equivalent value of the applicable annuity described above. 

If you have no surviving spouse, the lump sum death benefit is paid to the beneficiary 

you designate. If there is no beneficiary designation, then the death benefit shall be 

paid as follows: 

Your surviving children, equally. If none, then 

Your surviving grandchildren, equally. If none, then 

Your surviving parents, equally. If none, then 

No death benefit payable. 


April 2011 

54

Please call the HIBC at 1-877-216-3222 to designate a beneficiary for your lump sum 

death benefit. 

Note: If you are not actively employed by the Company and you die before retirement 

there is no lump sum death benefit payable under the Pension Earnings Plan. In addition, 

the lump sum death benefit does not apply to the Disability Benefit. 

Surviving Dependent Children's Benefit 

If you die while actively employed with at least 12 months of vesting service, whether or 

not you are vested, and leave surviving dependent children* under age 18, a specified 

amount will be payable monthly until your youngest child reaches age 18. The monthly 

specified amount will be divided equally among all your dependent children under the 

age of 18. 

The amount of benefit is calculated using the “Final Monthly Rate,” which is the monthly 

average of your Total Contributions during the twelve consecutive months immediately 

preceding the month of death, but counting only the months in which you had accrued 

contributions. This amount is then multiplied by a factor of 5%. Months for which no 

contributions are accrued are not included in the calculation. This is to allow for the 

situation in which an employee becomes chronically ill and is unable to work full time 

prior to death. 

Vesting service for purposes of the Surviving Dependent Children’s Benefit only 

included periods of employment during which you were an active participant in the Cash 

Balance and Pension Earnings Plan. 

* A person qualifies as a surviving dependent child of a Covered Employee if such 

person is a dependent of the Covered Employee when the Covered Employee dies, and 

if such person is under age 18 and is entitled to Child Insurance Benefits under the 

Federal Social Security Act. 

Example: 

You have more than 12 months of vesting service and you die in July 2010. Your base 

year is then July 2009 through June 2010. 

During that base year, you were unable to work regularly, and as a result, you accrued 

contributions for only five (5) of the months included in the base year. 

The Final Monthly Rate would be determined by dividing the total contributions received 

during the base year by 5. 

The monthly benefits schedule is as follows: 

Final Monthly Rate 

From Through Monthly Benefit 

$0.00 $33.32 $0.00 

$33.33 $41.66 $100.00 


April 2011 

55

Final Monthly Rate 

From Through Monthly Benefit 

$41.67 $49.99 $125.00 

$50.00 $58.32 $150.00 

$58.33 $66.66 $175.00 

$66.67 $74.99 $200.00 

$75.00 $83.32 $225.00 

$83.33 $91.66 $250.00 

$91.67 $99.99 $275.00 

$100.00 $108.32 $300.00 

$108.33 $116.66 $325.00 

$116.67 $124.99 $350.00 

$125.00 $133.32 $375.00 

$133.33 and over $400.00 

This benefit was designed to offer some protection to the families of younger employees 

who pass on prematurely. This benefit has a potentially great value, especially if the 

surviving children are very young. For instance, if the children's benefit were $200 per 

month and the youngest child was age 1, the total of the monthly payments could be as 

much as $40,800 ($200 x 204 months). 

Note: It is your surviving spouse’s responsibility to call the HIBC and request a 

retirement kit. 

Heroes Earnings Assistance and Relief Tax Act of 2008 

To the extent permitted under the Heroes Earnings Assistance and Relief Tax Act of 

2008, if you die during a period of qualifying military service, your beneficiary will be 

entitled to any additional benefits, other than benefit accruals, as if you were reemployed 

on the date immediately preceding your death and then terminated employment on the 

date of your death. Further, if you become totally and permanently disabled or die during 

a period of qualifying military service, your benefit will include the service for benefit 

accrual purposes that you would have received if you were reemployed by the Company 

on the date immediately preceding your disability or death, as applicable, and terminated 

employment on the date of your disability or death. 

If You Are Rehired 

If you leave the Company, and you are later rehired into a position covered by the Plan, 

the amount of benefit you accrue during your reemployment is affected by a number of 

factors, as explained below. 


April 2011 

56

• If you were 100% vested when you terminated employment and are rehired before 

you are scheduled to begin receiving benefit payments, you are 100% vested when 

you are rehired. Beginning on your rehire date, you will continue earning a benefit 

under the Plan. Your vesting service earned during your prior employment period will 

be included in your vesting service earned under the new employment period to 

determine your. You are immediately vested in any new benefits you earn. 

• If you were not vested when you terminated employment and return to the Company, 

the break in service rules apply. See “Breaks in Service” for details. 

• If you are rehired by the Company after you are scheduled to begin receiving your 

benefit payments, you will continue earning a benefit under the Pension Earnings 

Plan beginning on your rehire date. Your vesting service earned during your prior 

employment period will be included in your vesting service earned under the new 

employment period. You are immediately vested in any new benefits you earn. In 

addition, your benefit payments will continue if you are rehired by the Company as a 

regular employee, and you have not worked for the Company in any way (as a regular 

employee, consultant, or independent contractor) for at least 12 consecutive months. 

If you do not meet this 12-consecutive month break in service rule, your benefit 

payments will stop if you are rehired by the Company as a regular employee. 


If you transfer to another part of the Company where you are not covered by this Plan, 

you will continue to earn vesting service as if you were covered by this Plan. You will 

not earn Rule of 85 or Disability Benefit service. 

If you have questions about transfers, please call the HIBC at 1-877-216-3222. 

Breaks in Service 

A break in service is a period during which you complete less than 501 hours of service 

in a calendar year. If you experience five consecutive breaks in service years before you 

are vested: 

• You forfeit your benefit under the Pension Earnings Plan, and 

• You will be treated as a new hire under the Plan upon subsequent rehire. You will 

accrue a new benefit under the Plan and your prior service will not be included in 

your service earned under the new employment period. 

The following type of absence, however, may not cause you to incur a break in service: 

• Family and Medical Leave Act (FMLA) Leave of Absence. To keep from 


an approved FMLA leave of absence. Your hours of service for this purpose are equal 

to the amount you would have received if you continued working. If that number 

cannot be determined, you receive eight hours for each day you are absent; up to a 

maximum of 501 hours, but you do not earn vesting, Rule of 85 or Disability Benefit 

service. 


April 2011 

57



during that year, the hours are credited towards the following calendar year. 


You work 1,805 hours in 2009, then you go on family leave 

You are out on family leave for 12 weeks, from December 2009 through March 2010. 

Because you worked more than 501 hours in 2009, you do not incur a break in service. 

When you return to work in March, you are credited with 480 hours (8 hours times 5 days 

times 12 weeks) toward the 501 hours needed to avoid a break in service in 2010. 

However, the 480 hours are not used to calculate vesting, Rule of 85 or Disability Benefit 

service, and are used only to avoid a break in service. 


April 2011 

58

GENERAL INFORMATION THAT APPLIES TO THE CASH BALANCE AND 

PENSION EARNINGS PLANS 

Tax Considerations 

Maximum Benefits for Tax Purposes 

Plan benefits are limited to an annual maximum by federal law. In addition, federal tax 

law limits the amount of compensation that may be used to calculate your benefits. Those 

limits may be raised in accordance with Internal Revenue Service (IRS) regulations. 

When You Pay Taxes 

Generally, when you receive your monthly retirement benefit payments, you are subject 

to federal income tax and, in some states, state and local income tax. 

General Plan Information 

Assignment of Benefits 

Your benefits belong to you and, except in the case of a qualified domestic relations order 

(QDRO), Internal Revenue Service (IRS) levy, or garnishment orders under the Federal 

Debt Collection Procedures Act or the Mandatory Victims Restitution Act, may not be 

sold, assigned, transferred, pledged, or garnished. See “Payment of Benefits to Alternate 

Payees” for details about QDROs. 

Facility of Payment 

If you (or your beneficiary) are unable to manage your own affairs, any payments due 

may be paid to someone who is legally authorized to conduct your affairs, or deposited in 

your bank account or directly or indirectly paid for your comfort, support, and 

maintenance. 

Payment of Benefits to Alternate Payees 

The Employee Retirement Income Security Act (ERISA) requires the plan administrator 

to obey qualified domestic relations orders (QDROs). A QDRO is a legal judgment, 

decree, or order that recognizes the rights of someone other than the Plan participant 

(namely, an alternate payee) under the Plan with respect to child or other dependent 

support, alimony, or marital property rights. 

If you become legally separated or divorced, a portion of your benefits under the Plan 

may be assigned to someone else to satisfy a legal obligation you may have to a spouse, 

former spouse, child, or other dependent. These payments may begin while you are still 

employed, but only after meeting the specific retirement eligibility requirements. 


April 2011 

59

There are specific requirements that a QDRO must meet to be accepted by the plan 

administrator. In addition, there are specific procedures regarding the amount and timing 

of payments. 

The HII Domestic Relations Group administers QDROs. If you are subject to such an 

order, call the Domestic Relations Group at 1-877-216-3222 to request a copy of the 

Plan’s QDRO procedures and a model QDRO for your use. Issues pertaining to the 

qualified status of a domestic relations order may be pursued in federal court. 

Top Heavy Rules 

Certain tax rules ⎯ called “top heavy” rules ⎯ apply if a large percentage of the Plan’s 

benefits accrue in favor of key employees, as key employees are defined by the Internal 

Revenue Code. The administrator will notify you if your benefits are affected by top 

heavy rules. 


Certain circumstances result in a loss or delay of benefits, such as, among others, those 

described below: 

• If you terminate employment with the Company before becoming vested, you receive 

no benefits from the Plan. See “Vesting” for more details. 

• If you are rehired after your pension benefit payments begin, your payments under the 

Plan may be suspended, in certain cases, until your period of reemployment ends. 

You will be immediately vested in any new benefit you earn. See the “If You are 

Rehired” section for more information. 

• If you move and do not notify the HIBC of your new address, you will not receive 

benefits until you contact the plan administrator. If you fail to notify the plan 

administrator of your new address and you cannot be located, in some cases you may 

forfeit your benefit. However, your benefit will be reinstated if you provide your new 

address to the plan administrator. 

• Failure to notify the HIBC in a timely manner before your retirement date (as 

described in the “Applying for Your Benefits” section) may result in a delay in 

payment or even a forfeiture of benefits. 

• If the Plan is terminated before you retire, you are unable to earn benefits after the 

date of plan termination. If there are not enough funds to pay all benefits at 

termination, the Pension Benefit Guaranty Corporation (PBGC) guarantees all or a 

portion of the benefit you earned before the Plan terminated. 

• If you die before commencing benefit payments under the Plan, any benefits you had 

earned will be forfeited unless it is payable to a qualifying spouse. 


April 2011 

60

Assistance With Your Questions 

If you have any questions about the Plan, you should call the HIBC at 1-877-216-3222 

between the hours of 9:00 a.m. and 6:00 p.m. Eastern Time. If you have any questions 

about your rights under ERISA or about this statement outlining your rights, or if you 

need assistance in obtaining documentation from the Plan Administrator, you should 

contact the nearest regional office of the Employee Benefits Security Administration, 

U.S. Department of Labor, listed in your telephone directory. You also may contact the 

Division of Technical Assistance and Inquiries, Employee Benefits Security 

Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, 

DC 20210. You may also obtain certain publications about your rights and 

responsibilities under ERISA by calling the publications hotline of the Employee 

Benefits Security Administration at 1-866-444-3272. 

Claims and Appeals Processes ⎯ Applicable to the Cash Balance 

and Pension Earnings Plan 

Claiming Benefits 

You must file written notice with the plan administrator to claim your benefits under the 

Plan. Your written notice should be sent to: 

Plan Administrator, HII Benefit Plans 

Bldg 500-1, Huntington Ingalls Industries, Inc. 



You will receive notice of the plan administrator’s decision on your claim for benefits 

generally within 90 days after the plan administrator receives your claim. In special 

cases, the plan administrator may require an additional 90 days to consider your claim. 

You will be notified if extra time is required. 

If your claim for a benefit is denied, in whole or in part, you (or your beneficiary) must 

receive a written explanation of the reason for the denial from the plan administrator. 

This written notice will include: 



• A description of additional materials or information that are necessary 

• Procedures for appealing the decision. 

You or your authorized representative may review all documents related to any denial of 

benefits. 


April 2011 

61

Appealing Claims Decisions 

If you disagree with the plan administrator’s decision regarding your benefits claim, you 

have 65 days from the receipt of the original denial to request a review (or from the 

expiration of the review period if the plan administrator failed to make a decision or 

notify you of an extension). This request should be made in writing and sent to the plan 

administrator at the following address: 

Plan Administrator, HII Benefit Plans 

Bldg 500-1, Huntington Ingalls Industries, Inc. 



Your request should state all the grounds on which your request for a review is based. 

You should state any facts, address any issues, and make any comments that support your 

request. Besides having the right to appeal, you or your authorized representative also 

have the right to examine and have copies of certain plan documents and information 

relevant to your claim, at locations and times convenient to the plan administrator. 

The claim appeal will be reviewed by the plan administrator and ordinarily you will be 

notified of a decision within 60 days. In special cases, the plan administrator may require 

an additional 60 days to consider your appeal. You will be notified if extra time is 

required. 

The final decision will be sent to you in writing, together with an explanation of how the 

decision was made. The decision of the plan administrator is final and conclusive. 

If your claim appeal is denied, you may bring legal action in court provided you exhaust 

the claims procedures under the Plan and abide by certain time limitations. Specifically, 

you may not bring legal action against a party under the Plan after the later of: 

• One year from the time the claim arises, or 



otherwise applicable statute of limitations expires, whichever comes first. For details on 

when a claim arises, see the plan document. 

Pension Benefit Guaranty Corporation (PBGC) 

If the Plan is terminated, benefits under this plan are insured by the Pension Benefit 

Guaranty Corporation (PBGC), a federal government agency. Generally, the PBGC 

guarantees most vested normal age retirement benefits, early retirement benefits, and 

certain survivors’ pensions. However, the PBGC does not guarantee all types of benefits 

under covered plans, and the amount of benefit protection is subject to certain limitations. 

The PBGC guarantees vested benefits at the level in effect on the date of plan 

termination. However, if a plan was in effect for less than five years before it terminates, 


April 2011 

62

or if benefits were increased within the five years before plan termination, not all of the 

Plan’s vested benefits or the benefit increase may be guaranteed. In addition, there is a 

ceiling on the amount of monthly benefit that the PBGC guarantees, which is adjusted 

annually. 

You can receive more information on PBGC insurance protection and its limits from the 

plan administrator. You can also contact the PBGC directly at: 

Office of Communication 

Pension Benefit Guaranty Corporation 

1200 K Street, N.W. 

Washington, DC 20005-4026 

202-326-4000 

Funding and Plan Assets 

The cost of the Plan is paid by the plan sponsor. All plan sponsor contributions are 

actuarially determined. 

All assets of each legal pension plan are held in a master trust. Plan assets are held for the 

exclusive benefit of the Plan participants. The assets of the master trust can become the 

property of the Company only after all Plan obligations have been satisfied. 

Contributions to a plan may be returned to the Company if the Internal Revenue Service 

(IRS) fails to issue a favorable determination letter concerning the Plan, if the 

contributions were made in error, or if the IRS determines that the contributions are not 

deductible. 

About This Guide and the Plan Documents 

In accordance with the disclosure requirement of ERISA, this guide serves as a summary 

plan description (SPD) of the Plan. As such, it is intended to provide you with a brief 

explanation of your pension plan. It is not an official plan document and neither the plan 

documents nor this guide constitutes an implied or expressed contract of employment. 

The actual terms of the Plan are contained in the plan documents, which are available 

from the HIBC for a fee. 

The official plan text and trust agreement govern the operation of the Plan and payment 

of all benefits. In the event of any ambiguity in or omission from this guide, or any 

conflict between this guide and the official plan text and trust agreement, the official plan 

text and trust agreement govern. 

Future of the Plan 

This Plan may be amended, suspended or terminated at any time by the Company, written 

resolution of the Board or its delegate, subject to the provisions of the Collective 

Bargaining Agreement. 


April 2011 

63

When plan amendments are made that materially affect benefits, a summary of the 

changes will be communicated to affected plan participants. If the Plan is terminated, 

plan benefits will immediately become vested for affected participants. 

Your Rights 




April 2011 

64

TERMS YOU SHOULD KNOW 

Break in service ⎯ A period during which you complete less than 501 hours of service 

in a calendar year ⎯ due to certain leaves of absence, for example. 

Covered Service — Service during the periods you are employed by the Company in a 

position covered by the bargaining unit and a participant in the Cash Balance Plan or the 

Pension Earnings Plan receiving contribution credits to the plan. 

Credited service ⎯ The service that you accumulate while working at the Company, 

used as a factor in determining the amount of your pay-based credit under the Cash 

Balance Plan. After your Plan effective date, you accrue one month of credited service 

for each month you are paid for one or more hours of work with the Company in a 

position covered by the bargaining unit. 

Huntington Ingalls Benefits Center (HIBC) ⎯ A dedicated resource designed to 

provide you with information about your Plan benefit. The HIBC also maintains 

participant records for the Plan. The toll-free telephone number for the HIBC is 1-877- 

216-3222. 

Interest credit ⎯ Interest credited to your benefit each month. The interest rate for the 

Cash Balance Plan is updated monthly, using the 30-year Treasury bond rate in effect 

four months before the interest credit is allocated. 

Pay-based credit ⎯ The amount as a percentage of your pension-eligible compensation 

that the Company credits to your Cash Balance Plan benefit each month. 

Pension-eligible compensation ⎯ Pensionable earnings used to determine pay-based 

credits. 

Points ⎯ For the Cash Balance Plan: The sum of your age on the first day of the month 

and credited service on the last day of the prior month (rounded down to a whole 

number). Points determine the amount of pay-based credit that the Company allocates to 

your Cash Balance Pension Plan benefit. 

Social Security Wage Base (SSWB) ⎯ The maximum amount of pay subject to Social 

Security (OASDI portion of FICA) tax each year. Both you and the Company pay the 

OASDI portion of FICA taxes on your pay up to the Social Security Wage Base (SSWB), 

which is updated each year by the Internal Revenue Service (IRS). The Cash Balance 

Plan provides an additional pay-based credit, if you have pension-eligible compensation 

above the SSWB. 

Vested benefits ⎯ Accrued benefits that you own. 

Year of vesting service ⎯ A year of service with the Company that accumulates to meet 

the Plan’s vesting requirement. 


April 2011 

65

COMMONLY USED ACRONYMS 

Following are commonly used acronyms that you will find throughout this SPD. 

ERISA 

IRS 

FMLA 

HIBC 

PBGC 

QDRO 

SMM 

SPD 

SSWB 

Employee Retirement Income Security Act of 1974, as 

amended 

Internal Revenue Service 

Family and Medical Leave Act 


Pension Benefit Guaranty Corporation 

Qualified Domestic Relations Order 

Summary of Material Modifications 

Summary Plan Description (including any applicable 

SMMs) 

Social Security Wage Base 


April 2011 

66










Plan Description .................................................................................................................. 1 

Eligibility ............................................................................................................................ 1 

Cost for Coverage ............................................................................................................... 1 

Participating Providers ........................................................................................................ 1 

Claims Administrator .......................................................................................................... 2 

Member ............................................................................................................................... 2 

Co-payment ......................................................................................................................... 2 

What Is Covered ................................................................................................................. 2 

What Is Not Covered .......................................................................................................... 3 

How to Use the Vision Plan ................................................................................................ 4 

Overview of the Vision Plan ............................................................................................... 5 

Fiduciary Responsibility ..................................................................................................... 6 

Denied Claims ..................................................................................................................... 6 

Appealing Denied Claims ................................................................................................... 7 

Additional Information about the Appeals Process ............................................................ 8 

Your Rights ......................................................................................................................... 8

This summary plan description ("SPD") describes the Huntington Ingalls Industries, Inc. 

Newport News Operations Vision Plan for Employees Covered by United Steel, Paper 

and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers 

International (United Steelworkers), Local 8888 Collective Bargaining Agreement (the 

"Plan"), as amended and restated pursuant to the Collective Bargaining Agreement (the 

"CBA") effective October 27, 2008, through March 10, 2013. This plan was established 

consistent with the provisions of the previous and current collective bargaining 

agreements. This SPD is the Plan Document for ERISA purposes. 

Plan Description 

Employees and their eligible dependents can enroll in the vision plan, which is 

administered by Vision Service Plan (VSP), effective on the first day following the 

completion of three months of continuous active employment, provided the employee is 

actively at work on that day. The vision plan helps you pay for vision exams and 

corrective eyewear. Huntington Ingalls Industries, Inc. reserves the right to change or 

cancel this plan at any time (subject to contractual agreements) and to determine who is 

eligible to participate. 

Eligibility 

All active, full-time employees covered by the collective bargaining agreement between 

Huntington Ingalls Industries, Inc. Newport News Operations and United Steelworkers, 

Local 8888 (bargaining unit) are eligible to participate. 

Cost for Coverage 

If you enroll in the vision plan, you generally contribute to the cost of coverage with 

before-tax dollars. The amount of your contribution depends on your coverage category. 

Contributions are deducted from your paychecks throughout the year. 

Participating Providers 

You may choose to see a provider in the Vision Service Plan (VSP) network or a provider 

outside the network. However, when you use a network provider, you will receive a 

higher level of coverage, which means you pay less for your care. Select and contact a 

VSP provider by calling VSP at 1-800-877-7195 or by going to the VSP Web site, which 

is accessible from the Provider List at HII Benefits Connect (http://hiibenefits..com). 


April 2011 

-1-

Claims Administrator 

Vision Service Plan (VSP) is the current administrator of the vision plan. The Huntington 

Ingalls Benefits Center provides VSP with the names of employees and their eligible 

dependents who are covered under this program. Call VSP at 1-800-877-7195 or go to 

the VSP Web site, accessible from the Provider List at HII Benefits Connect 

(http://hiibenefits.com) 

Member 

Any person eligible to receive benefits from this program, including eligible employees 

and their eligible dependents. 

Co-payment 

The amount that a Member is required to pay for a Covered service or supply. When you 

visit a VSP provider, you pay the applicable Co-payment and any additional costs not 

covered by the plan directly to the provider. When you visit a non-VSP provider, you pay 

the full cost of your services to the provider at the time of service and keep a copy of the 

itemized receipt to submit for reimbursement from the plan. 

What Is Covered 

The following items are covered under this plan: 

• Comprehensive eye exam once every benefit plan year, which may include the 

following related services: 

⎯ Case history review 

⎯ Visual system evaluation using ophthalmoscopy (retina, optic nerve head, and 

blood vessels) 

⎯ External and internal exams, including direct and/or indirect ophthalmoscopy 

− Extraocular muscle assessment 

− Analysis of pupillary reflexes 

− Cornea, lens, iris, conjunctive, lids, and lashes observation 

− Visual fields screening test 

− Tonometry test 

⎯ Refractive evaluation 

⎯ Binocular function 

⎯ Diagnosis and treatment plan. 


April 2011 

-2-

• Eyeglass lenses 1 (single vision, lined bifocal, or lined trifocal), once every benefit 

plan year, and related necessary professional services, such as: 

⎯ Prescribing and ordering proper lenses 

⎯ Assisting in the selection of frames 

⎯ Verifying the accuracy of finished lenses 

⎯ Proper fitting and adjustment of frames 

⎯ Subsequent adjustments to frame to maintain comfort and efficiency 

⎯ Progress or follow-up work, as necessary. 

In addition: 

⎯ Blended lenses are covered at 100% in-network. The plan pays up to $60 for 

blended lenses obtained out-of-network 

⎯ Progressive lenses are covered at 100% in-network. The plan pays up to $80 for 

progressive lenses obtained out-of-network. 

• Eyeglass frame 1, 2 , once every other benefit plan year 

• Contact lenses 1 of any kind, excluding cosmetic lenses, once every benefit plan year. 

1 You may choose coverage for either eyeglasses or contact lenses, but not both, during any benefit plan year. If you 

choose contacts, you will be eligible for eyeglass lenses and frames the next benefit plan year. 

2 You can purchase frames every other benefit plan year, even if you purchased contact lenses in lieu of frames in 

any given year. 

What Is Not Covered 

The following items are not covered under this plan: 

• Coating of the lens or lenses 

• Oversize lenses 

• Corrective vision treatment of an experimental nature 

• Cosmetic lenses 

• Cosmetic processes that are optional 

• Eye exams as a condition of employment 

• The cost of frames that exceeds the plan allowance 

• Medical or surgical treatment 

• Non-prescription (plano) lenses (less than +.38 dioptic power) 

• Non-prescription contact lenses 

• Orthoptics or vision training and any associated supplemental training 

• Photochromatic lenses; tinted lenses except Pink #1 and Pink #2 

• Replacement/repair of lost or broken lenses or frames 

• Services or materials covered under workers’ compensation 

• Two pairs of glasses instead of bifocals 

• The additional cost of adding UV (ultraviolet) protection to lenses 

• Certain limitations on low vision care. 


April 2011 

-3-

How to Use the Vision Plan 

If you want to access services from a VSP provider, follow these steps: 

1. Select and contact a VSP provider by calling VSP at 1-800-877-7195 or by going to 

the VSP Web site, which is accessible from the Provider List at HII Benefits Connect 

(http://hiibenefits. .com). 

2. When you go to the provider’s office, identify yourself as a VSP member. Your 

provider will verify your eligibility directly with VSP. (You will not receive a VSP 

ID card.) 

3. Pay the applicable Co-payment (see the overview table on page 5) and any additional 

costs not covered by the plan directly to the provider. 

If you want to access services from a vision care provider who does not participate in the 

VSP network, follow these steps: 

1. Pay the full cost of your services to the provider at the time of service and keep a 

copy of the itemized receipt. 

2. For reimbursement of your eligible expenses, complete and file a VSP claim form 

with VSP within six months of receiving the services. You can do this electronically 

at the VSP Web site, which is accessible from the Provider List at HII Benefits 

Connectat http://hiibenefits..com (at the VSP site, go to “My Forms” and select “Outof-Network 

Reimbursement Form”). 

If you do not have Internet access, send the following to VSP: 

• An itemized receipt listing the services received 

• The name, address and phone number of the out-of-network provider 

• The covered member’s ID number, name, address, phone number, and employer 

(Huntington Ingalls Industries, Inc.) 

• The patient’s name, date of birth, address, and phone number 

• The patient’s relationship to the covered member, such as “self,” “spouse,” “child.” 

Keep a copy of the claim information and send the originals to: VSP, P.O. Box 997105, 

Sacramento, CA 95899-7105. 


April 2011 

-4-

Overview of the Vision Plan 

Here is how the plan provides coverage: 

Service In-Network Out-of-Network 1 

Exam 

After you pay a $10 co-payment, You pay the full cost, and the plan 

(1 every benefit plan year) then the plan pays 100% 

will reimburse up to $40 

Prescription eyeglass lenses 2 

(1 pair every benefit plan year) 

Eyeglass frame 2 

(1 every other benefit plan 

year) 

Prescription contact lenses 2 

(every benefit plan year) 

Low vision care 5 

• Supplementary testing 

• Supplemental care aids 

Additional complete sets of 

prescription eyeglasses 

Laser VisionCare Program 

(PRK and LASIK) 

After you pay a $10 co-payment 3 , 

the plan pays 100% for single 

vision, lined bifocals and lined 

trifocals 

(VSP member preferred prices 

available on lens options) 

After you pay a $10 co-payment 3 , 

the plan pays up to $120 (you 

receive 20% discount on remaining 

cost, if any) 

The plan pays up to $105 if elected 

instead of glasses 4 

• The plan pays 100% 

• You pay 25% of the approved 

cost, and the plan pays 75% 

You receive a 20% discount (from 

the same VSP provider within 12 

months of your last exam) 

You receive an average 10% - 20% 

discount on contracted laser center’s 

fees or 5% on promotional prices, 

whichever gives you the lesser cost 

You pay the full cost, and the plan 

will reimburse: 

• Up to $40 for single vision 

• Up to $60 for lined bifocals 

• Up to $80 for lined trifocals 


will reimburse up to $45 


will reimburse up to $105 if elected 

instead of glasses 

• You pay the full cost, and the 

plan will reimburse up to $125 

• You pay 25% of the approved 

cost, and the plan pays 75% 

Not applicable 

Not applicable 

1 

2 

3 

4 

5 

Out-of-network benefits do no guarantee full payment. Services obtained through out-of-network 

providers are subject to the same timeframes and co-payments as services obtained through VSP 

providers. 

You may choose coverage for either eyeglasses or contact lenses, but not both, during any benefit plan 

year. If you choose contacts, you will be eligible for eyeglass lenses and frames the next benefit plan 

year. 

You pay one $10 co-payment for lenses and/or frames. 

Your allowance applies to the cost of your contact lens exam and your contact lenses. You will receive 

15% savings off the cost of your contact lens exam from a VSP provider. Your contact lens exam is 

performed in addition to your routine eye exam to check for eye health risks associated with improper 

wearing or fitting of contacts. VSP providers also offer savings on certain brands of contact lenses. 

Low vision is visual impairment not correctable by standard eyewear. You must obtain 

preauthorization from VSP to obtain this coverage. The plan pays low vision benefits up to a maximum 

of $1,000 every two years (less any amount paid for supplemental testing). 


April 2011 

-5-

Fiduciary Responsibility 

The Plan Administrator has the discretionary authority to interpret and apply plan terms 

and to make factual determinations in connection with its review of claims under the 

plan, including discretionary authority to perform a full and fair review, as required by 

ERISA, of each claim which has been appealed. All claims determinations by the Plan 

Administrator shall be final. 

Denied Claims 

If a claim for benefits is wholly or partially denied, the claims administrator will send you 

a written explanation of why the claim was denied. In the case of an urgent claim, this 

can include oral notification, as long as you are provided with a written notice within 

three days. 






• A specific description of the plan’s review procedures and applicable time limits, 

including a statement of your rights to bring a lawsuit under the Employee Retirement 



information: 



request 



the terms of the plan to the medical circumstances, or state that such an explanation 





April 2011 

-6-

Appealing Denied Claims 

If your claim for benefits is denied, you have the right to make an appeal. 

Call the claims administrator and ask why your claim was denied. You may discover that 

a simple error was made. If so, you may be able to correct the problem on the telephone. 

If your claim is still denied, the employee or an authorized representative may submit a 

request in writing for a review of the denial within 180 days of the written denial notice. 

Be sure to explain why you think your claim should be paid and provide all relevant 

details. The request for review should be addressed and sent to: 

VSP 

333 Quality Drive 

Rancho Cordova, CA 95670 

The request for review will be considered by VSP, who will provide a written response, 

usually within 30 days, including specific reasons for the decision. If the claim is denied 

on review, the written response will include: 






rights to bring suit under ERISA. 

If the claim for benefits is again wholly or partially denied, the applicant, within 180 days 

after the date of the notification, may submit a request in writing for a further and final 

review to: 

VSP 



VSP will consider the claim as promptly as possible, based upon the claim itself and the 

record of the previous review, and will issue its decision, in writing, within 30 days after 

receipt of the request for review. 

During the entire review process, an employee or beneficiary, or the authorized 

representative of either, may review pertinent documents at the Employee Benefits 

Office, during regular business hours. 


April 2011 

-7-











In the case of appeals of vision benefit claims: 

• The decision on the appeal will be made by a person or persons at the claim 


not a subordinate of that person 

• In making the decision on the appeal, the claims administrator will give no deference 

to the initial claim decision 

• If the determination is based in whole or part on a medical judgment, the claims 


and experience in the field of medicine involved in the medical judgment. The health 

care professional will not be the same individual who was consulted (if one was 

consulted) with regard to the initial claim decision and will not be a subordinate of 

that person. 






review panel. 

Your Rights 




April 2011 

-8-




Group Legal Plan 






Plan Description .............................................................................................................. 1 

Eligibility ........................................................................................................................ 2 

How The Group Legal Plan Works ................................................................................ 2 

WEB SITE ..................................................................................................................... 2 

CLIENT SERVICE CENTER ............................................................................................. 3 

What Services Are Covered ............................................................................................ 3 

Group Legal Plan Options .............................................................................................. 4 

BASIC PLAN – DEFINITION OF COVERED SERVICES ...................................................... 4 

ADVANTAGE PLAN - DEFINITION OF COVERED SERVICES ............................................ 6 

Exclusions ..................................................................................................................... 16 

When Coverage Ends .................................................................................................... 16 

Amendment Or Termination ......................................................................................... 16 

Administration And Funding ........................................................................................ 16 

Cost Of The Plan ........................................................................................................... 17 

Plan Confidentiality, Ethics And Independent Judgment ............................................. 17 

Other Special Rules ...................................................................................................... 17 

Denial Of Benefits And Appeal Procedures ................................................................. 18 

DENIALS OF ELIGIBILITY ............................................................................................ 18 

DENIALS OF COVERAGE ............................................................................................. 18

This Summary Plan Description (SPD) describes the Huntington Ingalls Industries, Inc. Newport News 

Operations Group Legal Plan for employees covered by United Steel, Paper and Forestry, Rubber, 

Manufacturing, Energy, Allied Industrial and Service Workers International Union (United 

Steelworkers), Local 8888 Collective Bargaining Agreement effective October 27, 2008, through 

March 10, 2013. This plan was established consistent with the provisions of the previous and current 

collective bargaining agreements. This SPD is the Plan Document for purposes of the Employee 

Retirement Income Security Act of 1974, as amended (ERISA). 

PLAN DESCRIPTION 

The Group Legal Plan provides you and your eligible dependents access to legal assistance. You pay 

for your Group Legal Plan coverage through automatic after-tax payroll deductions. Once you elect 

this coverage, you can change your election only during the next annual enrollment period. (Your 

coverage automatically will roll over in the next benefit plan year unless you change your election.) 

The level of benefit you receive depends on the option you choose ⎯ Basic or Advantage. When you 

face a situation that has legal implications, the Hyatt Legal Plans’ web site, www.legalplans.com, 

provides instant access to information about your legal plan benefits and more. You can locate 

attorneys, obtain a case number and contact an attorney by e-mail. You will need your Membership 

Number on your Group Legal membership card to access the web site. 

You may also call Hyatt Legal Plans’ Client Service Center at 800-821-6400, Monday through Friday 

8 am to 7 pm, Eastern Time. A Client Service Representative will assist you in locating a Plan 

Attorney near your home or workplace and will answer any questions you may have about the plan. 

When you use an attorney outside the network, the plan will reimburse your legal fees up to a 

maximum amount. 

The level of benefit you receive depends on the option you choose ⎯ Basic or Advantage. 

Here are some of the services fully covered by the plan: 

• Administrative Hearing Representation 

• Adoption and Legitimization 

• Civil Litigation Defense 

• Consumer Protection Matters 

• Criminal Matters 

1

• Debt Collection Defense 

• Document Review and Preparation 

• Restoration of Driving Privileges 

• Traffic Ticket Defense (No DUI) 

• Estate Matters 

• Juvenile Court Defense 

• Divorce, Dissolution and Annulment (Contested and Uncontested) 

• Enforcement of Modification of Support Order 

• Misdemeanor Defense 

• Real Estate Matters 

• Wills, Living Wills, and Powers of Attorney 

ELIGIBILITY 

You can choose to participate in the Group Legal Plan each year during annual enrollment. When you 

select group legal coverage, you automatically cover yourself and your eligible dependents. Your 

eligible dependents include: 


• Your unmarried children under age 19, or age 25 if a full-time student or performing missionary 

service. 

Please keep in mind that once you select group legal coverage, you can change your election only 

during the next annual enrollment period. Your coverage automatically will roll over in the next 

benefit plan year, unless you change your election. There are no exceptions. 

HOW THE GROUP LEGAL PLAN WORKS 

WEB SITE 

To use Group Legal Plan® visit the Hyatt Legal Plans’ web site at legalplans.com. Once there, click 

on the “Members Log in” icon at the top of the page. You will be taken to a secure page that will 

require you to enter your Social Security Number. After you enter your Social Security Number you 

will jump to a page that is specific for member services. On this page you can choose the following 

options: 

‣ How Do I Use the Plan 

‣ Covered Services 

2

‣ Attorney Locator 

‣ Obtain Case Number 

‣ Life Guide 

‣ Self-Help Documents/Forms 

CLIENT SERVICE CENTER 

You may also use Group Legal Plan®, by calling Hyatt Legal Plans' Client Service Center at 1-800- 

821-6400. Client Service Representatives are available Monday through Friday from 8 a.m. to 7 p.m., 

Eastern Time. Be prepared to give your Social Security Number. If you are a spouse or an eligible 

dependent child of an eligible person, you will need the Social Security Number of the employee 

through whom you are eligible. The Client Service Representative who answers your call will: 

‣ Verify your eligibility for services; 

‣ Make an initial determination of whether and to what extent your case is covered (the Plan Attorney 

will make the final determination of coverage); 

‣ Give you a Case Number which is similar to a claim number (you will need a new Case Number for 

each new case you have); 

‣ Give you the telephone number of the Plan Attorney most convenient to you; and 

‣ Answer any questions you have about the Legal Plan. 

You then call the Plan Attorney to schedule an appointment at a time convenient to you. Evening and 

Saturday appointments are available. 

If you choose, you may select your own attorney. Also, where there are no Participating Law Firms, 

you will be asked to select your own attorney. In both of these circumstances, Hyatt Legal Plans will 

reimburse you for these non-Plan attorneys' fees in accordance with a set fee schedule. 

For services to be covered, you or your eligible dependents must have obtained a Case Number, 

retained an attorney and the attorney must begin work on the covered legal matter while you are an 

eligible member of the legal plan. 

WHAT SERVICES ARE COVERED 

Group Legal Plan® entitles you and your eligible dependents to receive certain personal legal services. 

The available benefits are very comprehensive, but there are limitations and other conditions, which 

must be met. Please take time for yourself and your family to read the description of benefits carefully. 

All benefits are available to you and your spouse and dependents, unless otherwise noted. 

3

The Group Legal Plan gives you access to a national network of attorneys who can provide a wide 

range of legal services for you and your eligible dependents. When you face a situation that has legal 

implications, the web site, www.legalplans.com, provides instant access to information about your 

legal plan benefits and more. 

GROUP LEGAL PLAN OPTIONS 

There are two Group Legal Plan options to choose from ― the Basic Plan and the Advantage Plan. 

BASIC PLAN – DEFINITION OF COVERED SERVICES 

ADVICE AND CONSULTATION 

Office Consultation 

This service provides the opportunity to discuss with an attorney any personal legal problems that are 

not specifically excluded. The Plan Attorney will explain the Participant's rights, point out his or her 

options and recommend a course of action. The Plan Attorney will identify any further coverage 

available under the Plan, and will undertake representation if the Participant so requests. If 

representation is covered by the Plan, the Participant will not be charged for the Plan Attorney's 

services. If representation is recommended, but is not covered by the plan, the Plan Attorney will 

provide a written fee statement in advance. The Participant may choose whether to retain the Plan 

Attorney at his or her own expense, seek outside counsel, or do nothing. There are no restrictions on 

the number of times per year a Participant may use this service; however, for a non-covered matter, 

this service is not intended to provide the Participant with continuing access to a Plan Attorney in order 

to seek advice that would allow the Participant to undertake his or her own representation. 

Telephone Advice 










4


to seek advice that would allow the Participant to undertake his or her own representation 

DOCUMENT PREPARATION 

Demand Letters 

This service covers the preparation of letters that demand money, property or some other property 

interest of the Participant, except an interest that is an excluded service. It also covers mailing them to 

the addressee and forwarding and explaining any response to the Participant. Negotiations and 

representation in litigation are not included. 

Document Review 

This service covers the review of any personal legal document of the Participant, such as letters, leases 

or purchase agreements. 

ELDER LAW MATTERS 

This service covers counseling the Participant over the phone or in the office on any personal issues 

relating to the Participant’s parents as they affect the Participant. The service includes reviewing 

documents of the parents to advise the Participant on the effect on the Participant. The documents 

include Medicare or Medicaid materials, prescription plans, leases, nursing homes agreements, powers 

of attorney, living wills and wills. The service also includes preparing deeds involving the parents 

when the Participant is either the grantor or grantee; and preparing promissory notes involving the 

parents when the Participant is the payor or payee. 

PERSONAL INJURY 

Personal Injury (25% Network Maximum) 

Subject to applicable law and court rules, Plan Attorneys will handle personal injury matters (where 

the Participant is the plaintiff) at a maximum fee of 25% of the gross award. It is the Participant's 

responsibility to pay this fee and all costs. 

5

WILL AND ESTATE MATTERS 

Probate (10% Network Discount) 

Subject to applicable law and court rules, Plan Attorneys will handle probate matters at a fee 10% less 

than the Plan Attorney's normal fee. It is the Participant's responsibility to pay this reduced fee and all 

costs. 

Wills and Codicils 

This service covers the preparation of a simple or complex will for the Participant. The creation of any 

testamentary trust is covered. The benefit includes the preparation of codicils and will amendments. It 

does not include tax planning. 

ADVANTAGE PLAN - DEFINITION OF COVERED SERVICES 

ADVICE AND CONSULTATION 

Office Consultation 











to seek advice that would allow the Participant to undertake his or her own representation. 

Telephone Advice 









6



to seek advice that would allow the Participant to undertake his or her own representation 

CONSUMER PROTECTION 

Consumer Protection Matters 

This service covers the Participant as a plaintiff, for representation, including trial, in disputes over 

consumer goods and services where the amount being contested exceeds the small claims court limit in 

that jurisdiction and is documented in writing. This service does not include disputes over real estate, 

construction, insurance or collection activities after a judgment. 

Personal Property Protection 

This service covers counseling the Participant over the phone or in the office on any personal property 

issue such as consumer credit reports, contracts for the purchase of personal property, consumer credit 

agreements or installment sales agreements. Counseling on pursuing or defending small claims actions 

is also included. The service also includes reviewing any personal legal documents and preparing 

promissory notes, affidavits and demand letters 

Small Claims Assistance 

This service covers counseling the Participant on prosecuting a small claims action; helping the 

Participant prepare documents; advising the Participant on evidence, documentation and witnesses; and 

preparing the Participant for trial. The service does not include the Plan Attorney's attendance or 

representation at the small claims trial, collection activities after a judgment or any services relating to 

post-judgment actions. 

DEBT MATTERS 

Debt Collection Defense 

This service provides Participants with an attorney's services for negotiation with creditors for a 

repayment schedule and to limit creditor harassment, and representation in defense of any action for 

personal debt collection, tax agency debt collection, foreclosure, repossession or garnishment, up to 

and including trial if necessary. It does not include vacating a judgment; counter, cross or third party 

claims; bankruptcy; any action arising out of family law matters, including support and post-decree 

7

issues; or any matter where the creditor is affiliated with the Sponsor or Employer. 

Identity theft Defense 

This service provides the Participant with consultations with an attorney regarding potential creditor 

actions resulting from identity theft and attorney services as needed to contact creditors, credit bureaus 

and financial institutions. It also provides defense services for specific creditor actions over disputed 

accounts. The defense services include limiting creditor harassment and representation in defense of 

any action that arises out of the identity theft such as foreclosure, repossession or garnishment, up to 

and including trial if necessary. The service also provides the Participant with online help and 

information about identity theft and prevention. It does not include counter, cross or third party 

claims; bankruptcy; any action arising out of family law matters, including support and post-decree 

issues; or any matter where the creditor is affiliated with the Sponsor or Employer. 

Tax Audits 

This service covers reviewing tax returns and answering questions the IRS or a state or local taxing 

authority has concerning the Participant's tax return; negotiating with the agency; advising the 

Participant on necessary documentation; and attending an IRS or a state or local taxing authority audit. 

The service does not include prosecuting a claim for the return of overpaid taxes or the preparation of 

any tax returns. 

DEFENSE OF CIVIL LAWSUITS 

Administrative Hearing Representation 

This service covers Participants in defense of civil proceedings before a municipal, county, state or 

federal administrative board, agency or commission. It includes the hearing before an administrative 

board or agency over an adverse governmental action. It does not apply where services are available 

or are being provided by virtue of an insurance policy. It does not include family law matters, post 

judgment matters or litigation of a job-related incident. 

Civil Litigation Defense 

This service covers the Participant in defense of an arbitration proceeding or civil proceeding before a 

municipal, county, state or federal administrative board, agency or commission, or in a trial court of 

general jurisdiction. It does not apply where services are available or are being provided by virtue of an 

insurance policy. It does not include family law matters, post judgment matters, matters with criminal 

penalties or litigation of a job-related incident. Services do not include bringing counterclaims, third 

party or cross claims. 

8

Incompetency Defense 

This service covers the Participant in the defense of any incompetency action, including court hearings 

when there is a proceeding to find the Participant incompetent. 

DOCUMENT PREPARATION 

Affidavits 

This service covers preparation of any affidavit in which the Participant is the person making the 

statement. 

Deeds 

This service covers the preparation of any deed for which the Participant is either the grantor or 

grantee. 

Demand Letters 

This service covers the preparation of letters that demand money, property or some other property 

interest of the Participant, except an interest that is an excluded service. It also covers mailing them to 

the addressee and forwarding and explaining any response to the Participant. Negotiations and 

representation in litigation are not included. 

Document Review 

This service covers the review of any personal legal document of the Participant, such as letters, leases 

or purchase agreements. 

Elder Law Matters 

This service covers counseling the Participant over the phone or in the office on any personal issues 

relating to the Participant’s parents as they affect the Participant. The service includes reviewing 

documents of the parents to advise the Participant on the effect on the Participant. The documents 

include Medicare or Medicaid materials, prescription plans, leases, nursing homes agreements, powers 

of attorney, living wills and wills. The service also includes preparing deeds involving the parents 

when the Participant is either the grantor or grantee; and preparing promissory notes involving the 

parents when the Participant is the payor or payee. 

9

Mortgages 

This service covers the preparation of any mortgage or deed of trust for which the participant is the 

mortgagor. This service does not include documents pertaining to business, commercial or rental 

property 

Notes 

This service covers the preparation of any promissory note for which the Participant is the payor or 

payee. 

FAMILY LAW 

Adoption and Legitimization (Contested And Uncontested) 

This service covers all legal services and court work in a state or federal court for an adoption for the 

Plan Member and spouse. Legitimization of a child for the Plan Member and spouse, including 

reformation of a birth certificate, is also covered. 

Divorce, Dissolution and Annulment (Contested and Uncontested) 

This service is available to the Plan Member only, not to a spouse or dependents, for the first fifteen 

hours of service. This service includes preparing and filing all necessary pleadings, motions and 

affidavits, drafting settlement or separation agreements, and representation at the hearing or trial, 

whether the Plan Member is a plaintiff or a defendant. This service does not include disputes that arise 

after a decree is issued. It is the Plan Member’s responsibility to pay fees beyond the first fifteen hours. 

Enforcement of Modification Of Support Order 

This service is available to the Plan Member and spouse, and covers representation after a judgment 

has been entered to enforce or modify a court's award of support or alimony, whether the Plan Member 

or spouse is a plaintiff or a defendant. This service does not cover transfer of a divorce decree from one 

state to another, the division of property, or collection activities after a judgment. 

Name Change 

This service covers the Participant for all necessary pleadings and court hearings for a legal name 

change. 

10

Prenuptial Agreement 

This service covers the preparation of an agreement by a Plan Member and his or her fiancé/partner 

prior to their marriage or legal union (where allowed by law), outlining how property is to be divided 

in the event of separation, divorce or death of a spouse. Representation is provided only to the Plan 

Member. The fiancé/partner must have separate counsel or must waive representation. 

Protection from Domestic Violence 

This service covers the Plan Member only, not the spouse or dependents, as the victim of domestic 

violence. It provides the Plan Member with representation to obtain a protective order, including all 

required paperwork and attendance at all court appearances. The service does not include 

representation in suits for damages, defense of any action, or representation for the offender. 

Uncontested Change or Establishment of Custody Order 

This service is available to the Plan Member and spouse, and covers preparation of petitions, consent 

forms and waivers, and representation at any court hearings provided all parties are in agreement to 

establish or modify a child custody order. 

Uncontested Guardianship or Conservatorship 

This service covers establishing an uncontested guardianship or conservatorship over a person and his 

or her estate when the Plan Member or spouse is appointed guardian or conservator. It includes 

obtaining a permanent and/or temporary guardianship or conservatorship, gathering any necessary 

medical evidence, preparing the paperwork, attending the hearing and preparing the initial accounting. 

If the proceeding becomes contested, the Plan Member or spouse must pay all additional legal fees. 

This service does not include representation of the person over whom guardianship or conservatorship 

is sought, or any annual accountings after the initial accounting. 

Immigration 

Immigration Services 

This service covers advice and consultation, preparation of affidavits and powers of attorney, review of 

any immigration documents and helping the Participant prepare for hearings. 

11

INSURANCE MATTERS 

Insurance Claims 

This service provides the Participant with assistance in making insurance claims with the Participant's 

own carrier, provided the carrier is not affiliated with the Plan Member’s Sponsor or Employer. 

Litigation of coverage issues is included. Litigation of damages is not included. 

PERSONAL INJURY 

Personal Injury (25% Network Maximum) 

Subject to applicable law and court rules, Plan Attorneys will handle personal injury matters (where 

the Participant is the plaintiff) at a maximum fee of 25% of the gross award. It is the Participant's 

responsibility to pay this fee and all costs. 

REAL ESTATE MATTERS 

Boundary or Title Disputes (Primary Residence) 

This service covers negotiations and litigation arising from boundary or title disputes involving a 

Participant's primary residence, where coverage is not available under the Participant's homeowner or 

title insurance policies. 

Eviction and Tenant Problems (Primary Residence – Tenant Only) 

This service covers the Participant as a tenant for matters involving leases, security deposits or disputes 

with a residential landlord. The service includes eviction defense, up to and including trial. It does not 

include representation in disputes with other tenants or as a plaintiff in a lawsuit against the landlord, 

including an action for return of a security deposit. 

Home Equity Loans (Primary Residence) 

This service covers the review or preparation of a home equity loan on the Participant’s primary 

residence 

Property Tax Assessment (Primary Residence) 

12

This service covers the Participant for review and advice on a property tax assessment on the 

Participant's primary residence. It also includes filing the paperwork; gathering the evidence; 

negotiating a settlement; and attending the hearing necessary to seek a reduction of the assessment. 

Refinancing Of Home (Primary Residence) 

This service covers the review or preparation, by an attorney representing the Participant, of all 

relevant documents (including the mortgage and deed, and documents pertaining to title, insurance, 

recordation and taxation), which are involved in the refinancing of or in obtaining a home equity loan 

on a Participant's primary residence. This benefit includes obtaining a permanent mortgage on a newly 

constructed home. It does not include services provided by any attorney representing a lending 

institution or title company. The benefit does not include the refinancing of a second home, vacation 

property, rental property or property held for business or investment. 

Sale or Purchase of Home (Primary Residence) 

This service covers the review or preparation, by an attorney representing the Participant, of all 

relevant documents (including the construction documents for a new home, the purchase agreement, 

mortgage and deed, and documents pertaining to title, insurance, recordation and taxation), which are 

involved in the purchase or sale of a Participant's primary residence or of a vacant property to be used 

for building a primary residence. The benefit also includes attendance of an attorney at closing. It does 

not include services provided by any attorney representing a lending institution or title company. The 

benefit does not include the sale or purchase of a second home, vacation property, rental property, 

property held for business or investment or leases with an option to buy. 

Zoning Applications 

This service provides the Participant with the services of a lawyer to help get a zoning change or 

variance for the Participant's primary residence. Services include reviewing the law, reviewing the 

surveys, advising the Participant, preparing applications, and preparing for and attending the hearing to 

change zoning. 

TRAFFIC AND CRIMINAL MATTERS 

Felony Defense 

This service covers representation for Participants in defense of any criminal felony charge. 

Representation includes court hearings, negotiation with the prosecutor and trial. 

13

Juvenile Court Defense 

This service covers the defense of a Plan Member and a Plan Member's dependent child in any juvenile 

court matter, provided there is no conflict of interest between the Plan Member and child. In that event 

this service provides an attorney for the Plan Member only, including services for Parental 

Responsibility. 

Misdemeanor Defense 

This service covers representation for Participants in defense of any criminal misdemeanor charge 

except those relating to traffic or driving under influence charges. Representation includes court 

hearings negotiation with the prosecutor and trial. It does not include representation of a felony charge 

that is subsequently reduced to a misdemeanor. 

Restoration of Driving Privileges 

This service covers the Participant with representation in proceedings to restore the Participant's 

driving license. 

Traffic Ticket Defense (No Dui) 

This service covers representation of the Participant in defense of any traffic ticket including traffic 

misdemeanor offenses, except driving under influence or vehicular homicide, including court hearings, 

negotiation with the prosecutor and trial. 

WILLS AND ESTATE MATTERS 

Trusts 

This service covers the preparation of revocable and irrevocable living trusts for the Participant. It does 

not include tax planning or services associated with funding the trust after it is created. 

Living Wills 

This service covers the preparation of a living will for the Participant. 

Powers Of Attorney 

This service covers the preparation of any power of attorney when the Participant is granting the 

power. 

14

Probate (10% Network Discount) 

Subject to applicable law and court rules, Plan Attorneys will handle probate matters at a fee 10% less 

than the Plan Attorney's normal fee. It is the Participant's responsibility to pay this reduced fee and all 

costs. 

Wills And Codicils 

This service covers the preparation of a simple or complex will for the Participant. The creation of any 

testamentary trust is covered. The benefit includes the preparation of codicils and will amendments. It 

does not include tax planning. 

MAJOR TRIAL 

Major Trial – In Network 

All covered matters that require a trial are covered through completion with no hour limits or dollar 

caps when service is provide by a plan attorney. 

Major Trial – Out Of Network 

This service covers up to $10, 000 for a covered matter when using a non-network attorney. 

15

EXCLUSIONS 

Excluded services are those legal services that are not provided under the plan. No services, not 

even a consultation, can be provided for the following matters: 

• Employment-related matters, including company or statutory benefits 

• Matters involving the employer, MetLife ® and affiliates, and plan attorneys 

• Matters in which there is a conflict of interest between the employee and spouse or 

dependents in which case services are excluded for the spouse and dependents 

• Appeals and class actions 

• Farm and business matters, including rental issues when the Participant is the 

landlord 

• Patent, trademark and copyright matters 

• Costs or fines 

• Frivolous or unethical matters 

• Matters for which an attorney-client relationship exists prior to the Participant 

becoming eligible for plan benefits 

WHEN COVERAGE ENDS 

Your ability to receive legal services under the Plan ends if you are no longer an eligible 

employee or if you choose not to enroll during future annual enrollment periods. 

If you cease to be eligible to participate in the plan or your employment with the Company ends, 

the Plan will cover the legal fees for those covered services that were opened and pending during 

the period you were enrolled in the plan. Of course, no new matters may be started after you 

become ineligible. 

AMENDMENT OR TERMINATION 

While your employer expects to continue to offer participation in the Legal Service Plan, it 

reserves the right to amend, or terminate the Plan at any time. If the Plan is terminated, all 

covered services then in process will be handled to their conclusion under the Plan. 

ADMINISTRATION AND FUNDING 

The Legal Service Plan is provided for and administered through a contract with Hyatt Legal 

Plans, Inc. Hyatt Legal Plans makes all determinations regarding attorneys' fees and what 

constitutes covered services. All contributions collected from employees electing this coverage 

are paid to Hyatt Legal Plans, Inc. 

16

COST OF THE PLAN 

You pay the cost of the Plan through after-tax payroll deductions, based on your enrollment 

choice. 

PLAN CONFIDENTIALITY, ETHICS AND INDEPENDENT JUDGMENT 

Your use of the Plan and the legal services is confidential. The Plan Attorney will maintain strict 

confidentiality of the traditional lawyer-client relationship. Your employer will know nothing 

about your legal problems or the services you use under the Plan. Plan administrators will have 

access only to limited statistical information needed for orderly administration of the Plan. 

No one will interfere with your Plan Attorney's independent exercise of professional judgment 

when representing you. All attorneys' services provided under the Plan are subject to ethical rules 

established by the courts for lawyers. The attorney will adhere to the rules of the Plan and he or 

she will not receive any further instructions, direction or interference from anyone else connected 

with the Plan. The attorney's obligations are exclusively to you. The attorney's relationship is 

exclusively with you. Hyatt Legal Plans, Inc., or the law firm providing services under the Plan 

is responsible for all services provided by their attorneys. 

You should understand that the Plan has no liability for the conduct of any Plan Attorney. You 

have the right to file a complaint with the state bar concerning attorney conduct pursuant to the 

Plan. You have the right to retain at your own expense any attorney authorized to practice law in 

this state. 

Plan attorneys will refuse to provide services if the matter is clearly without merit, frivolous or 

for the purpose of harassing another person. If you have a complaint about the legal services you 

have received or the conduct of an attorney, call Hyatt Legal Plans at 1-800-821-6400. Your 

complaint will be reviewed and you will receive a response within two business days of your 

call. 

You have the right to retain at your own expense any attorney authorized to practice law in the 

state. You have the right to file a complaint with the state bar concerning attorney conduct 

pursuant to the plan. 

OTHER SPECIAL RULES 

In addition to the coverages and exclusions listed, there are certain rules for special situations. 

Please read this section carefully. 

What if other coverage is available to you If you are entitled to receive legal representation 

provided by any other organization such as an insurance company or a government agency, or if 

you are entitled to legal services under any other legal plan, coverage will not be provided under 

17

this Plan. However, if you are eligible for legal aid or Public Defender services, you will still be 

eligible for benefits under this Plan, so long as you meet the eligibility requirements. 

What if you are involved in a legal dispute with your dependents You may need legal help 

with a problem involving your spouse or your children. In some cases, both you and your child 

may need an attorney. If it would be improper for one attorney to represent both you and your 

dependent, only you will be entitled to representation by the plan attorney. Your dependent will 

not be covered under the Plan. 

What if you are involved in a legal dispute with another employee If you or your 

dependents are involved in a dispute with another eligible employee or that employee's 

dependents, Hyatt Legal Plans will arrange for legal representation with independent and 

separate counsel for both parties. 

What if the court awards attorneys' fees as part of a settlement If you are awarded 

attorneys' fees as a part of a court settlement, the Plan must be repaid from this award to the 

extent that it paid the fee for your attorney. 

DENIAL OF BENEFITS AND APPEAL PROCEDURES 

DENIALS OF ELIGIBILITY 

Hyatt verifies eligibility using information provided by theHuntington Ingalls Benefits Center. 

When you call for services, you will be advised if you are ineligible and Hyatt Legal Plans will 

contact the Huntington Ingalls Benefits Center for assistance. If you are not satisfied with the 

final determination of eligibility, you have the right to a formal review and appeal. Send a letter 

within 60 days explaining why you believe you are eligible to: 


P.O. Box 563912 


Within 30 days, you will be provided with a written explanation. 

DENIALS OF COVERAGE 

If you are denied coverage by Hyatt Legal Plans or by any Plan Attorney, you may appeal by 

sending a letter to: 

Hyatt Legal Plans, Inc. 

Director of Administration 

18

Eaton Center 1111 Superior Avenue 

Cleveland, Ohio 44114-2507 

(For Florida plans contact Hyatt Legal Plans of Florida, Inc. at the above address.) 

The Director will issue Hyatt Legal Plans' final determination within 60 days of receiving your 

letter. This determination will include the reasons for the denial with reference to the specific 

Plan provisions on which the denial is based and a description of any additional information that 

might cause Hyatt Legal Plans to reconsider the decision, an explanation of the review procedure 

and notice of the right to bring a civil action under Section 502(a) of ERISA. 

Throughout the review process, the employee or authorized representative may review pertinent 

documents at the Employee Benefits Office during regular business hours 

19


(Supplement to the Medical Plan Summary Plan Description) 



Medicare Premium 

Reimbursement Program 

For Retirees Formerly Covered by 





Program Description ........................................................................................................... 1 

Eligibility ............................................................................................................................ 1 

Reimbursement Amount ..................................................................................................... 2 

Program Administrator ....................................................................................................... 2 

Member ............................................................................................................................... 2 

Retroactive Reimbursement ................................................................................................ 2 

What is not Covered............................................................................................................ 2 

Administrative..................................................................................................................... 3 

Program Name .................................................................................................................... 3 

Name and Address of Employer (Plan Sponsor) ................................................................ 3 

Type of Plan ........................................................................................................................ 3 

Plan Administrator .............................................................................................................. 3 

Type of Funding .................................................................................................................. 3 

Agent for Service of Legal Process .................................................................................... 3 

Statement of ERISA Rights ................................................................................................ 3 


Claims Appeal ..................................................................................................................... 4 

Questions............................................................................................................................. 4

Medicare Premium Reimbursement Program for Huntington Ingalls Industries, Inc. 

Newport News Operations Hourly Retirees and their Eligible Spouses 

(This is a supplement to the Medical Plan Summary Plan Description) 

Program Description 

Hourly retirees and eligible spouses are reimbursed a portion of their monthly Medicare 

premium. Reimbursements are paid to eligible members on a monthly basis. Participation 

in the Medicare Premium Reimbursement Program is contingent on payment of all 

Medicare premiums in a calendar year. Each year, members will need to submit a copy of 

their Social Security check stub and year-end Medicare premium bill, confirming that all 

Medicare premiums were paid in the prior year. If the member is disabled, a copy of 

Form SSA 1099 must be submitted as proof of enrollment in and payment for Medicare 

Part B coverage. Each year, members will receive a letter from the Huntington Ingalls 

Industries, Inc. Plan Administrator requesting this documentation. 

As soon as the above mentioned letter is received, documentation must be sent to the 

address noted in the letter. Monthly Medicare reimbursement payments will continue 

unless documentation is not returned. If proper documentation is not returned to 

Huntington Ingalls Industries, Inc., participation in the Medicare Premium 

Reimbursement Program will be cancelled. A letter will be sent to the member notifying 

him or her that participation has been cancelled. 

If payment of all Medicare premiums was not made in the prior year, coverage will not 

be cancelled. However, you must return any reimbursement amount that may have been 

paid to you for the month(s) of Medicare premium you did not pay. 

The Company reserves the right to change or cancel this program and modify eligibility 

at any time. 

Eligibility 

(Eligibility for this program is different than for medical plan) All retirees who retired as 

an hourly employee of Huntington Ingalls Industries, Inc. Newport News Operations and 

their eligible spouses are eligible to participate. An eligible spouse is the spouse legally 

married to the retiree on the date of retirement from NNS. Upon divorce, the divorced 

spouse is no longer eligible to participate in this program. Upon death of the retiree, the 

eligible surviving spouse may continue to participate in this program. Coverage ceases 

upon remarriage of surviving spouse. No coverage is provided to children. 


April 2011 

-1-

Reimbursement Amount 

Reimbursement for all hourly retirees, and eligible spouses and eligible surviving 

spouses, is $20.00 each per month. 

Program Administrator 

Huntington Ingalls Industries, Inc. (the Company) administers the program. 

Member 

Any person eligible to receive benefits from this program, including eligible retirees and 

their eligible spouses. 

Retroactive Reimbursement 

Should any member or their representative contact the Company and claim a benefit is 

due to the member from prior years, the Company will review the claim to determine if 

the member qualified for a benefit. If the claim is verified, the Company will make 

payment for reimbursement up to a maximum of three months. 

What is not Covered 

The following are not covered or eligible under this program: 

• Reimbursement for any month for which proof of purchase of Medicare Part B 

coverage is not provided to the Company 

• Reimbursement to a surviving spouse upon remarriage (even if remarriage is to an 

eligible retiree) 

• Reimbursement to a spouse who was not the legal spouse on the retiree's date of 

retirement from the Company 

• Reimbursement to a spouse effective on and after the date of divorce from the retiree 

• No coverage for any month in which a Medicare premium was not paid by the 

member 

• Cannot be covered as a retiree and a spouse for the same period of time 

• Coverage ceases upon death of the retiree and/or spouse or surviving spouse 

• No coverage upon discontinuance of this Plan 

• No interest is paid on delayed or retroactive reimbursements 

• Terminated vested employees are not covered 

• No coverage for any active employee and/or their spouse 

• No coverage for children 

• Retroactive payments of more than three months. 


April 2011 

-2-

Administrative 

This summary plan description (SPD) shall also operate as the Plan Document for ERISA 

purposes. 

Program Name 

Medicare Premium Reimbursement Program for Huntington Ingalls Industries, Inc. 

Newport News Operations Hourly Retirees and their Eligible Spouses 

Name and Address of Employer (Plan Sponsor) 


4101 Washington AvenueNewport News, VA 23607 

Type of Plan 

Employee welfare benefit plan 

Plan Administrator 

Huntington Ingalls Industries, Inc, 

Type of Funding 

Self-insured 

Agent for Service of Legal Process 


Statement of ERISA Rights 

Refer to statement in Administrative Information section of this Handbook 


The Plan Administrator has the discretionary authority to interpret and apply plan terms 

and to make factual determinations in connection with its review of claims under the 

plan, including discretionary authority to perform a full and fair review, as required by 

ERISA, of each claim which has been appealed. All claims determinations by the Plan 

Administrator shall be final. 


April 2011 

-3-

Claims Appeal 

If you are denied the right to obtain benefits under this program and you feel you are 

eligible to obtain these benefits in accordance with plan provisions, you may send a 

written appeal to: 


P.O. Box 563912 


The appeal must be postmarked within 180 days of the denial. You may provide any 

documentation that you feel will support your claim. You will receive a response within 

30 days of the HIBC’s receipt of the appeal. 

Questions 

If you have questions about the Medicare Premium Reimbursement Program, please call 

the Huntington Ingalls Benefits Center (HIBC) at 1-877-216-3222 (overseas: 408-916- 

9765). Benefits service representatives are available to assist you Monday through Friday 

from 9:00 a.m. to 6:00 p.m. Eastern time, excluding holidays. If you are hearing 

impaired, you will need to use a relay service through your TTY/TDD service provider. 


April 2011 

-4-




Retiree Prescription Drug Plan 

For Retirees Formerly Covered by 





Plan Description .................................................................................................................. 3 

Eligibility ............................................................................................................................ 3 

Participating Pharmacies ..................................................................................................... 3 

Claims Administrator .......................................................................................................... 4 

Definitions........................................................................................................................... 4 

Maximum Benefit ............................................................................................................... 4 

Dispensing Limitation ......................................................................................................... 4 

What is Covered .................................................................................................................. 5 

What is not Covered............................................................................................................ 5 

Generics vs. Brand Name ................................................................................................... 6 

Effect of Medicare Prescription Drug Coverage ................................................................ 6 

How to Use the Pharmacy Plan If You Are NOT Enrolled In Medicare Part D: ............... 7 

How to Use the Pharmacy Plan If You Are Enrolled In Medicare Part D: ........................ 7 

Statement of ERISA Rights ................................................................................................ 8 


Denied Claims and Appeal Procedure ................................................................................ 8 

Additional Information about the Appeals Process .......................................................... 11 

Appendix I: List of Participating Pharmacies .................................................................. 13


Newport News Operations Retiree Prescription Drug Plan For Retirees Formerly 

Covered by United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied 

Industrial and Service Workers International Union (United Steelworkers) , Local 8888 

Collective Bargaining Agreement (the “Plan”). This SPD is the Plan Document for 

ERISA purposes. 

Plan Description 

Retirees and eligible spouses can purchase prescription drugs from any Participating 

Pharmacy. The Plan replaces the Newport News Shipbuilding in-house pharmacy and is 

designed to serve the same area and population who used or would have used the inhouse 

pharmacy. The Company reserves the right to change or cancel this plan at any 

time (subject to contractual agreements) and to determine who is eligible to participate. 

Eligibility 

All hourly formerly represented retirees of Huntington Ingalls Industries, Inc. Newport 

News Operations and their eligible spouses are eligible to participate. (Eligibility for the 

Plan is different than for the medical plan, the Anthem Keycare 150 Health Plan). An 

eligible spouse is the spouse legally married to the retiree on the date of retirement from 

the Company and any subsequent spouse married to the retiree after retirement. Upon 

divorce, the divorced spouse is no longer eligible to participate in this plan, except under 

the continuation coverage provisions under a Federal law generally referred to as 

“COBRA.” COBRA continuation coverage rights are described in the “Administrative 

Information” section of this handbook. Upon death of the retiree, the surviving spouse at 

the time of death may either elect to purchase COBRA continuation coverage or may 

choose to waive COBRA rights and continue to participate in the Plan as a surviving 

spouse. If the spouse chooses to waive COBRA and participate as a surviving spouse, 

coverage ceases upon remarriage of surviving spouse. No coverage is provided to 

children. 

Participating Pharmacies 

Only those pharmacies designated by the Company as a Participating Pharmacy are 

covered under the Plan. The Company will make available a list of Participating 

Pharmacies and may add or delete pharmacies at any time based solely at the Company’s 

discretion. The current list of Participating Pharmacies is shown on 

Appendix I. 


April 2011 

3

Claims Administrator 

Express Scripts, Inc. is the current administrator of the claims. The Company provides 

Express Scripts, Inc. with the names of retirees and their eligible spouses who are 

covered under this plan. Call Express Scripts, Inc. at 1-877-498-4161 with questions 

about prescription drugs or to order replacement I.D. cards. 

Definitions 

Member — Any person eligible to receive benefits from this plan, including eligible 

retirees and their eligible spouses. 

Co-payment — The amount that a Member is required to pay directly to a Participating 

Pharmacy for a Covered Medication. Members currently have a co-payment of 50% of 

the cost of the prescription drugs to the Company, including any discount provided to the 

Company. For example, if a prescription drug cost to the Company is $50.00 (including 

dispensing fees and other administrative costs), the Member’s co-payment would be 

$25.00. There is a minimum co-payment of $4.00 per prescription. Note, your copayment 

is not eligible to be filed for reimbursement under any Company-sponsored 

medical or prescription drug plan. 

Maximum Benefit 

For employees who retired after July 26, 1999, the Company's composite prescription 

drug costs (maximum benefit) will be limited to an annual average of $1,200.00 per 

retiree family unit. A family unit is defined to include 1) retiree and spouse or 2) retiree 

only (single) or 3) surviving spouse. Upon reaching an annual average cost per family 

unit of $1,200 ($100 monthly) to the Company, the retirees' 50% co-payment for 

prescription drugs will be increased to reflect any excess over the maximum annual cost 

of $1,200. This amount will be determined by calculating the percent plan cost increase 

from the prior year to the most recent year and use that annual rate of cost increase to 

project the expected monthly plan cost for the upcoming year. For example, depending 

on the results of the calculations of the projected cost, a retiree's co-payment may be 

increased to 52%, 55%, etc., of the cost of the prescription drug. Employees who retired 

on or before July 26, 1999, are not affected by this provision. 

Dispensing Limitation 

The amount of prescription drugs that may be dispensed under this plan is limited to the 

quantity prescribed by the doctor or a 90-day supply, which ever is less. 


April 2011 

4

What is Covered 

The following items are covered under this plan: 

• All medications which, by Federal Law, can be dispensed only according to a 

prescription and which are required to bear the legend, "Caution: Federal Law 

Prohibits dispensing without a prescription," and is not under the "What is not 

covered" section of this SPD. 

• Injectible Drugs, including Insulin 

• Growth Hormones 

• AIDS (H.I.V.) specific medication 

• Compounds 

• Legend vitamins (Require prescription) 

• Immunosuppresants, such as Cyclosporine (Sandimmune and Imuran) 

If a drug or item is covered by Medicare, the Plan will pay 50% of the amount not 

covered by Medicare (depending on the Medicare Part D plan in which you may be 

enrolled), provided that the drug or item is purchased at a Participating Pharmacy and all 

other provisions of the Plan are met. See “Effect of Medicare Prescription Drug 

Coverage” for a complete description of how the Plan works with Medicare. 

What is not Covered 

The following items are not covered under this plan: 

• Medications that can be purchased without a doctor's prescription 

• Retin A, regardless of intended use 

• Specific diabetic supplies 

• Disposable needles/syringes 

• Smoking deterrents 

• Fertility medications 

• Experimental injectibles (refer to experimental definition in medical plan SPD) 

• Weight loss drugs/supplies 

• Cosmetic medications, such as Rogain or Minoxidil 

• Contraceptives/Contraceptive Devices 

• Medical equipment, devices, supplies, or diagnostics 

• Over-the-counter medications 

• Dietary and food supplements 

• Experimental drugs not approved for general use by FDA (refer to definition in 

medical plan SPD) 

• Prescription drugs purchased at pharmacies other than Participating Pharmacies 

• Agents, extracts & blood products 

• Excessive fills or refills 

• Administrative charges 

• Institutional pharmacy services - Dispensing drugs at a facility such as hospital or 

nursing home 

• Mail order drugs 


April 2011 

5

• Any drug or item covered by Medicare* or a Company-sponsored medical plan under 

which the member is covered. 

* If a drug or item is covered by Medicare, the Plan will pay 50% of the amount not covered by 

Medicare (depending on the Medicare Part D plan in which you may be enrolled), provided the drug 

or item is purchased at a Participating Pharmacy and all other provisions of the Plan are met. See 

“Effect of Medicare Prescription Drug Coverage” for a complete description of how the Plan works 

with Medicare. 

Generics vs. Brand Name 

A generic drug is a drug that is chemically equivalent to the original brand name drug. 

The only difference is that the patent on the brand name medication has expired allowing 

other manufacturers to sell the drug. As a result, the generic manufacturer does not incur 

research costs and is able to charge significantly less for the drug. Recently, many 

antibiotics and other widely used drugs have become available as generics. The result is 

tremendous cost savings for you and your prescription drug plan. If you have any 

questions about generics, ask for advice from your physician or pharmacist. Normally, 

you can save a significant amount of money by using generic drugs. 

Effect of Medicare Prescription Drug Coverage 

Effective January 1, 2006, prescription drug coverage was available to everyone with 

Medicare through Medicare prescription drug plans. All Medicare prescription drug plans 

will provide at least a standard level of coverage set by Medicare. Some plans might also 

offer more coverage for a higher monthly premium. Under Medicare rules, this Plan is 

not considered “creditable coverage,” which means that, on average for all plan 

participants, this Plan coverage is not expected to pay out as much as the standard 

Medicare prescription drug coverage will pay. Because the Plan is not creditable 

coverage, an eligible retiree or spouse who does not enroll in Medicare prescription drug 

coverage by the later of May 16, 2006 or the date they are first eligible for Medicare, will 

pay an increased premium for Medicare prescription drug coverage if they later enroll. 

However, if the participant had continuous coverage under another plan that provided 

prescription drug coverage that is considered “creditable,” the late enrollment penalty 

may not be applied. 

This Plan will coordinate with Medicare if plan participant enrolls for Medicare Part D. 

This means that for covered individuals who enroll in Medicare Part D coverage, the Plan 

will pay 50% of the amount not covered by Medicare prescription drug coverage. The 

following example illustrates coordination between this plan and a Medicare Part D plan: 

Example 

A 66-year-old retiree enrolls in a Medicare Part D plan providing standard coverage 

effective January 1, 2009. In January, the retiree fills a prescription for a drug covered 

under the Plan, with a total cost of $125.The standard Medicare prescription drug plan 

would pay $0, because the standard plan has a $250 deductible. This Plan would pay 

$62.50, 50% of the $125. In February, the retiree fills the same prescription. Medicare 


April 2011 

6

would pay $0, so the Plan would pay $62.50. In March, the retiree fills the same 

prescription. Because the retiree has satisfied the $250 standard Medicare prescription 

drug plan deductible, the standard Medicare plan pays 75% of the next $2,000 in covered 

costs. For the March prescription, Medicare would pay $93.75, leaving a balance of 

$31.25. The Plan would pay $15.63, 50% of the $31.25 balance. 

How to Use the Pharmacy Plan If You Are NOT Enrolled In Medicare Part 

D: 

1. Take your prescription(s) to any of the Participating Pharmacies. 

2. At the pharmacy, identify yourself as a Huntington Ingalls Industries, Inc. Newport 

News Operations retiree or eligible spouse by presenting your pharmacy plan ID card 

to the pharmacist with your prescription(s). 

3. Your prescription plan will pay for up to a 90-day supply of a prescription drug as 

prescribed by your physician. 

4. Upon receiving the medication from the pharmacist, you will be required to pay the 

appropriate Co-payment for each prescription or refill. 

5. You may phone the pharmacy and request a refill to be picked up at a later time; 

however, you must inform the pharmacist that you are a Huntington Ingalls 

Industries, Inc. Newport News Operations retiree or eligible spouse. When you go to 

the pharmacy to pick up the prescription, you may be required to show your ID card 

to the pharmacist. 

6. Your Co-payment is not eligible for reimbursement under other Company-sponsored 

plans. Filing for reimbursement under another Company-sponsored plan could result 

in your disqualification to use this plan. 

How to Use the Pharmacy Plan If You Are Enrolled In Medicare Part D: 

1. Present your Medicare Part D coverage card and your Express Scripts, Inc. coverage 

card at any of the Participating Pharmacies and tell the pharmacy that your Medicare 

Part D coverage is primary. 

2. The pharmacy will submit an online claim for the Medicare Part D coverage. The 

claim will be paid or rejected based on the Medicare Part D plan’s benefit guidelines 

and the payment information is returned to the pharmacy. If the Medicare Part D plan 

is aware of your Express Scripts, Inc. coverage, a message is sent to the pharmacy 

indicating such. 

3. The pharmacy then submits an online claim for the member’s cost share amount to 

the secondary payer (Express Scripts, Inc.). 

4. Express Scripts, Inc. pays or rejects the claim according to this plan’s benefit 

guidelines and returns the information online to the pharmacy. 

5. The member pays the amount due and receives his/her medication. 

If the pharmacy is able to process both claims online, there is no need for the member to 

file a manual claim for payment. However, if for some reason the pharmacy has difficulty 

submitting the secondary claim online, the member can take their receipt, which shows 

the amount of the Medicare D payment, and file a paper claim for the secondary 

reimbursement Express Scripts, Inc. through the normal paper claim process. 


April 2011 

7

Statement of ERISA Rights 


the Administrative Information section of this Handbook. 


The Claims Administrator has the discretionary authority to interpret and apply plan 

terms and to make factual determinations in connection with its review of claims under 

the plan, including discretionary authority to perform a full and fair review, as required 

by ERISA, of each claim which has been appealed. All claims determinations by the 

Claims Administrator shall be final. 

Denied Claims and Appeal Procedure 

If a claim for benefits is wholly or partially denied, the claims administrator will send you 

a written explanation of why the claim was denied. In the case of an urgent claim, this 

can include oral notification, as long as you are provided with a written notice within 

three days. 






• A specific description of the plan’s review procedures and applicable time limits, 

including a statement of your rights to bring a lawsuit under the Employee Retirement 



information: 



request 



the terms of the plan to the medical circumstances, or state that such an explanation 





April 2011 

8

If services under the Plan are denied and you feel they should be covered, you should 

follow the following appeal procedure. (For denied services under the medical plan, refer 

to the medical plan appeal procedure.) 

• Call the claims administrator and ask why your claim was denied. You may discover 

that a simple error was made. If so, you may be able to correct the problem right over 

the telephone. If your claim is still denied, you or your authorized representative may 

request in writing a review of the denial within 180 days of a written denial of 

coverage notification. The request, containing facts supporting the claim for benefits 

and reasons why it should not have been denied, should be addressed to the claims 

administrator as follows: 

Express Scripts, Inc.(appeals determinations) 

Attn: Pharmacy Appeals 

6625 West 78 th Street Mail Route BL390 

Bloomington, MN 55439 

• If your claim is denied once again, ask the claims administrator to submit your claim 

to the claims administrator’s level 1 appeals review committee. 

• If your claim is denied by the level 1 appeals review committee, ask the claims 

administrator to submit your claim to the claims appropriate level 2 appeals review 

committee. 

Definitions 

Urgent claims: Medical care is "urgent" if a longer time could seriously jeopardize the 

participant’s life, health, or ability to regain maximum function. Also, care may be urgent 

if, in a doctor’s opinion, it would subject the participant to severe pain if care or treatment 

were not provided. If you require care that is classified as being urgent, but do not submit 

enough information for the claims administrator to make a determination, the claims 

administrator will notify you within 24 hours. You have 48 hours after that time to supply 

any additional information. Until you supply this information, the time limits that apply 

for the review are suspended (or “tolled”). 

Concurrent care decisions: These are decisions involving an ongoing course of 

treatment over a period of time or a number of treatments. If you or your dependent is 

undergoing a course of treatment, or is nearing the end of a prescribed number of 

treatments, you may request extended treatment or benefits. If the course of treatment 

involves urgent care and you request at least 24 hours before the expiration of the 

authorized treatments, the claims administrator will respond to your claim within 24 

hours. If you reach the end of a pre-approved course of treatment before requesting 

additional benefits, the normal “pre-service” or “post-service” time limits will apply, as 

described below. 

Pre-service determinations: A “pre-service” determination requires the receipt of 

approval of those benefits in advance of obtaining the medical care. If you request a 


April 2011 

9

eview for pre-service benefits, but do not submit enough information for the claims 

administrator to make a determination, the claims administrator will notify you within 15 

days. You have 45 days after that to supply any additional information. Until you supply 

this information, the time limits that apply to the claims administrator are tolled. 

Post-service claims: A “post-service” determination is made for benefits after you have 

already received care or treatment. A “post-service” determination does not require 

advance approval of benefits. 

In the case of pre-service determinations and urgent claims, if you fail to follow the 

specified procedure for filing your claim, the claims administrator will notify you of the 

failure and of the proper procedure. This notice will be provided to you no later than five 

days after your incorrectly filed claim is received (24 hours in the case of an urgent 

claim). The notice from the claims administrator may be an oral notice unless you 

specifically request written notice. 

Example #1: If you have an urgent situation, the claims administrator must respond to 

your initial request for benefits within 72 hours, and no extensions are permitted. If the 

claims administrator needs more information from you to make a determination, you will 

have 48 hours from the time you are notified to supply that information. The time period 

during which you are gathering that additional information does not count toward the 

time limits that apply to the claims administrator. 

Type of Claim 

Time to Appeal from 

Date Claim is Denied 

Time for Decision on 

Appeal 

Urgent claims 180 days 72 hours None 

Pre-Service claims 

None 

Post-Service claims 


of appeal 


of appeal 

Pre-Service Claims. There are two levels of appeal: 



receipt of the appeal for 

each level 



receipt of the appeal for 

each level 

Extensions for Claims 

Administrator 

None 

• Level 1 appeal: You may file a level 1 appeal with the claims administrator within 

180 days if your initial claim for benefits is denied and you would like to appeal that 

denial. Your appeal must be considered within 15 days, with no extensions. 

• Level 2 appeal: If your first appeal is denied by the claims administrator, you may 

file a level 2 appeal with the claims administrator within 180 days, and your appeal 

must be considered within an additional 15 days, with no extensions. 


April 2011 

10

Post-Service Claims. There are two levels of appeal: 

• Level 1 appeal: You may file a level 1 appeal with the claims administrator within 

180 days if your initial claim for benefits is denied and you would like to appeal that 

denial. Your appeal must be considered within 30 days, with no extensions. 

• Level 2 appeal: If your first appeal is denied by the claims administrator, you may 

file a level 2 appeal with the claims administrator within 180 days, and your appeal 

must be considered within an additional 30 days, with no extensions. 












administrator who is not the person who made the initial claim decision and who is not a 

subordinate of that person 

In making the decision on the appeal, the claims administrator will give no deference to 

the initial claim decision 






If benefits are still denied on appeal, the notice that you receive from the final review 

level (level 2 review) will provide: 

• The specific reasons for the denial 

• Reference to the plan provisions on which the decision was based 




rights to bring suit under ERISA (Employee Retirement Income Security Act of 

1974). 


April 2011 

11

Depending on the type of claim, the notice that you receive from the final review level 

will also contain the following information: 


and state that you can obtain a copy of the rule, etc., free of charge upon request 


the denial will explain the scientific or clinical judgment for determination, applying 

the terms of the Retiree Prescription Drug Plan to the medical circumstances, or state 

that such an explanation will be provided upon request, free of charge. 






review panel. 

In deciding appeals, the claims administrator acts as the named fiduciary for purposes of 

deciding appeals and has discretionary authority to interpret the Retiree Prescription Drug 

Plan and to make factual determinations as to whether you are entitled to benefits. The 

claims administrator’s disposition of the claim shall be final. 

Throughout the review process, the employee or authorized representative may review 

pertinent documents at the Employee Benefits Office during regular business hours. 


April 2011 

12

Appendix I: List of Participating Pharmacies 

Below are the addresses of participating Rite Aid Pharmacies: 

6908 Main Street 

Gloucester Exchange Shopping Center 

White Marsh, VA (804) 693-2160 

2460 George Washington Mem. Hwy. 

Rt. 17 and Rt. 216 

Hayes, VA (804) 642-2115 

1109 Benns Church Rd. 

Smithfield, VA (757) 356-0083 

515 Main Street 

Suffolk, VA (757) 539-9992 

227-2 Fox Hill Road 

Willow Oaks Shopping Center 

Hampton, VA (757) 851-0660 

1533 E. Pembroke Ave. 

Hampton, VA (757) 851-8314 

30 S. Armstead Ave. 

Hampton, VA (757) 850-1667 

14260 Warwick Blvd. 

Warwick Denbigh Village Shopping Center 

Newport News, VA (757) 874-1924 

10818 Warwick Blvd 

Warwick Center 


671 J. Clyde Morris Blvd 


5500 George Washington Mem. Hwy. 

Intersection of Dare Road and Rt. 17 

Grafton, VA 

(757) 898-5466 


April 2011 

13

4813 W. Mercury Blvd. 

Hampton, VA 

(757) 826-2792 

5601-B Richmond Road 

Ewell Station Shopping Center 

Williamsburg, VA (757) 565-6407 


April 2011 

14










Introduction ...................................................................................................................... 1 

Employee Retirement Income Security Act of 1974 (ERISA) .................................................. 2 

Health Insurance Portability and Accountability Act (HIPAA) ................................................ 5 

Enrolling During Annual Enrollment ................................................................................. 10 

Health Plan ―Qualified Life Events‖ Rules .......................................................................... 11 

What Happens to Your Benefits in Special Situations ........................................................... 13 

COBRA Continuation of Coverage .................................................................................... 27 

Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) ............. 33 

Continuing Health Coverage under the Family Medical Leave Act (FMLA) ........................... 34 

Amendment and Termination of Plans ................................................................................ 34 

Payment of Benefits ......................................................................................................... 35 

Employment Status .......................................................................................................... 35 

Information Specific to the Huntington Ingalls Industries, Inc. Newport News Operations Cash 

Balance and Pension Earnings Plan, Pension Plan and Target Benefit Plan for Employees 

Covered the United Steelworkers Collective Bargaining Agreement, and the Huntington Ingalls 

Industries, Inc. Newport News Operations Company Savings (401(k)) Plan for Union Eligible 

Employees ...................................................................................................................... 35 

Contact and Plan Information ............................................................................................ 35

Introduction 

The benefit plans described in this Employee Handbook are provided as part of your total 

compensation from Huntington Ingalls Industries, Inc. Newport News Operations. This 

Employee Handbook was prepared to explain those benefits; each section is known as a 

"Summary Plan Description" (SPD). As a participant in the plans either as an 

employee or as the eligible dependent of an employee you have the right to 

information about the plan, such as how it operates, and an explanation of the benefits to 

which participants are entitled under the terms of each plan. 

All plans were established consistent with the provisions of previous and current 

collective bargaining agreements. All plans are included in the current agreement 

between Huntington Ingalls Industries, Inc. Newport News Operations and the United 


Workers International Union (United Steelworkers), Local Union 8888, the bargaining 

agent, which is effective October 27, 2008 through March 10, 2013. A copy of the 

collective bargaining agreement pursuant to which these plans are maintained and may be 

obtained and examined by participants and beneficiaries upon written request to: 



Labor Relations Office O21 



1-757-380-2000 

Plan Documents Control 

Plans are administered in accordance with the formal, legal documents or insurance 

contracts governing each plan, as well as applicable laws such as the Employee 

Retirement Income Security Act of 1974, as amended (ERISA). The Summary Plan 

Descriptions in this Employee Handbook are designed to give brief explanations of how 

the plans operate and should be read as a whole without taking statements out of context. 

In the event of any inconsistency between these SPDs or any other communication 

regarding the plans and the plan documents or insurance contracts themselves, the plan 

documents or insurance contracts control in all cases. Subsequent changes to the plans 

may be communicated in newsletters, flyers, postings, etc., pending a revised Handbook. 

The Company has responsibility for the operation and administration of each Plan 

(collectively referred to as the Program). Such responsibility includes, but is not limited 

to, the power to construe the terms of the plan and resolve questions that arise in the 

operation and administration of the plans, including questions of fact relating to such 

questions. Any contracts entered into by the Company with respect to benefits of the 

Program shall be consistent with Article 38 of the 2008 Labor Agreement between 

Huntington Ingalls Industries, Inc. Newport News Operations and the USW. 


April 2011 

-1-

The Company may establish reasonable rules for the administration of the Program and 

the transaction of its business subject to the other provisions of the Program and any 

requirements of law. Article 38 of the 2008 Labor Agreement and the rules referred to 

above form the basis on which the Program is administered, but if there is any 

inconsistency, Article 38 of the 2008 Labor Agreement shall govern. 

Any difference which shall arise between an employee and the Company as to an 

employee’s claim for a benefit shall be subject to resolution according to a claims 

procedure established by the Company, which will include each Plan’s appeals 

procedure. Subject to Article 38 of the 2008 Labor Agreement and each Plan’s appeals 

procedure, all actions or determinations of the Company are final, conclusive, and 

binding on all persons 

Note: Information about the benefits provided under the Anthem Keycare 150 Health 

Plan for eligible employees and retirees is not included in this handbook, but is described 

in the SPD provided by Anthem Blue Cross and Blue Shield. Please refer to the Keycare 

150 Health Plan SPD for medical plan information. 

Employee Retirement Income Security Act of 1974 (ERISA) 

What Is ERISA 

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that 

governs employee benefit plans. 

What ERISA Means to You 

ERISA sets standards that a plan sponsor must follow if it maintains a covered employee 

benefit plan. With some exceptions, covered employee benefit plans include plans 

sponsored by an employer to provide employees with certain pension, savings, and health 

and welfare benefits. 

ERISA does not require any company to offer an employee benefit plan and generally 

does not specify the benefits you should receive. However, if a plan is offered, ERISA 

provides you with certain rights as a participant, and requires that employers who offer 

covered employee benefit plans follow certain standards related to the plan’s operation. 

What ERISA Does 

You and your beneficiaries have basic rights and protections under ERISA, which: 

• Requires the plan administrator to provide you with information about the plans, 

including important information about the plans’ features and how they are funded. In 

certain circumstances, the plan administrator may request a small fee to cover 

copying costs. 

• Requires that fiduciaries of your benefit plans operate the plans prudently and in the 

interest of all plan participants. 


April 2011 

-2-

• Gives you the right to sue for benefits or for breaches of fiduciary duty. 

What Is a Fiduciary 

A fiduciary is a person or organization whose duty is to operate your benefit plans 

prudently and in the interest of all plan participants and beneficiaries. Fiduciaries may 

include employees who make certain discretionary decisions about the management or 

administration of a benefit plan, or employees who make decisions about funding plan 

benefits. They also may include outside investment advisors, trustees, and certain others. 

Your ERISA Rights 

As a plan participant under ERISA, you have the right to: 

• Examine all plan documents without charge at the plan administrator’s office or at 

other specified locations. This includes plan documents, trust agreements, insurance 

contracts and collective bargaining agreements. Copies of all documents filed on 

behalf of the plan with the U.S. Department of Labor, such as annual reports and plan 

descriptions, are also available for you to review at the plan administrator’s office. 

• Obtain, upon written request to the plan administrator, copies of documents 

governing the operation of the plan, including insurance contracts and collective 

bargaining agreements, and copies of the latest annual report and updated summary 

plan description. The plan administrator may charge a reasonable fee for the copies. 

• Receive a summary of the plan’s annual financial reports. You do not have to ask for 

your copy of the summary; the plan administrator sends you a Summary Annual 

Report (SAR) each year. 

• Continue health care coverage for yourself, your spouse, or your dependents if there 

is a loss of coverage under the plan as a result of a qualifying event. You or your 

dependents may have to pay for such coverage. Review ―COBRA‖ and the 

documents governing the plan for the rules governing your COBRA continuation of 

coverage rights. 

• Receive a reduction or elimination of the exclusionary periods of coverage for 

preexisting conditions under your group health plan, if you have creditable coverage 

from another plan. You should be provided a certificate of creditable coverage, free 

of charge, from your group health plan or health insurer when you lose coverage 

under the plan, when you become entitled to elect COBRA continuation coverage, 

when your COBRA continuation ceases, if you request it before losing coverage, or if 

you request it up to 24 months after losing coverage. Without evidence of creditable 

coverage, you may be subject to a preexisting condition exclusion for 12 months (18 

months for late enrollees) after the date you enroll in your coverage. 

In addition to creating rights for plan participants, ERISA imposes duties on the plan 

fiduciaries — the people responsible for operating the plan. At Huntington Ingalls 


April 2011 

-3-

Industries, Inc., plan fiduciaries may include employees who make certain discretionary 

decisions about the management or administration of the plan. Fiduciaries also may 

include outside investment advisors and trustees. 

Fiduciaries have a duty to operate the plan prudently and in the sole interest of plan 

participants and beneficiaries. Fiduciaries who violate ERISA may be removed and/or 

required to reimburse the plan for losses that they have caused. 

No one, including Huntington Ingalls Industries, Inc. or any other person, may fire you or 

otherwise discriminate against you in any way to prevent you from obtaining a benefit or 

exercising your rights under ERISA. 

Enforcing Your ERISA Rights 

Under ERISA, there are several steps you can take to enforce your rights. For instance, if 

you request plan materials and you do not receive them within 30 days, you may file suit 

in federal court. In such a case, the court may require the plan administrator to provide 

the materials and pay you up to $110 a day until you receive the materials, unless the 

materials were not sent for a reason beyond the control of the plan administrator or the 

plan administrator otherwise had a reasonable basis for not providing them. 

If you have a claim for benefits that is denied or ignored — in whole or in part — and 

you have satisfied all of the plan’s appeals procedures, then you may file suit in a state or 

federal court. If a fiduciary misuses the plan’s assets, or if you are discriminated against 

for asserting your rights, you may seek assistance from the U.S. Department of Labor, or 

you may file suit in federal court. 

In addition to deciding what damages, if any, should be awarded, the court will decide 

who should pay court costs and legal fees. If you are successful, the court may order the 

person you sued to pay them. If you lose, the court may order you to pay these costs and 

fees (for example, your claim is frivolous). 

Questions 

If you have any questions about the Plan (except the Huntington Ingalls Industries, Inc. 

Newport News Operations Savings (401(k)) Plan for Union Eligible Employees), you 

should call the Huntington Ingalls Benefits Center (HIBC) at 1-877-216-3222 Monday 

through Friday from 9:00 a.m. to 6:00 p.m. Eastern time, excluding holidays. If you have 

any questions about the Huntington Ingalls Industries, Inc. Newport News Operations 

Savings (401(k)) Plan for Union Eligible Employees, you should call Wells Fargo 

Retirement Service Center at 1-800-377-9188 Monday through Friday from 7:00 a.m. to 

11:00 p.m. Eastern time, excluding holidays. 

If you have any questions about your rights under ERISA or about this statement 

outlining your rights, you should contact the nearest regional office of the Employee 

Benefits Security Administration (formerly known as the Pension and Welfare Benefits 

Administration), U.S. Department of Labor, listed in your telephone directory. You also 

may contact the Division of Technical Assistance and Inquiries, Employee Benefits 


April 2011 

-4-

Security Administrator (formerly known as the Pension and Welfare Benefits 

Administration), U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, 

D.C. 20210. 

Health Insurance Portability and Accountability Act (HIPAA) 

What Is HIPAA 

The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that 

sets standards for employee benefit plans specifically related to your ability to obtain 

new coverage, the opportunity to select or change coverage after certain qualified life 

events, and health information privacy. 

Obtaining New Medical Coverage Under HIPAA 

The Health Insurance Portability and Accountability Act (HIPAA) can help you and your 

family obtain new medical coverage if your coverage ends under the Huntington Ingalls 

Industries, Inc. Newport News Operations Anthem Keycare 150 Plan. For example, if 

you terminate your Huntington Ingalls Industries employment to take a new job with 

another company, you most likely will request coverage under your new employer’s 

health care plan. 

Specifically, HIPAA limits your new employer’s health plan’s ability to exclude you 

from coverage due to a pre-existing condition. 

By using pre-existing condition exclusions, a health care plan could avoid covering 

expenses for medical conditions that existed prior to a person’s participation in that plan. 

Because of these exclusions, employees with pre-existing conditions had difficulty 

changing jobs, since such a change generally resulted in a change in health care plans. 

Under HIPAA, health plans are required to cover the pre-existing conditions of a new 

member immediately upon enrollment — as long as the new member provides proof that: 

• He or she previously was enrolled in another health plan for 12 months or more, and 

• That coverage had not ended more than 63 days before the new coverage began. 

HIPAA requires employers to provide terminating employees with proof of their medical 

coverage — called a Certificate of Creditable Coverage. Therefore, when you or your 

dependents stop participating in the Huntington Ingalls Industries, Inc. Newport News 

Operations Anthem Keycare 150 Plan, Huntington Ingalls Industries, Inc. must provide 

you with a Certificate of Creditable Coverage. The certificate is sent to you within 45 

days of the date Huntington Ingalls Industries, Inc. is notified of your termination. 


April 2011 

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You can present your Certificate of Creditable Coverage to a new health care plan to 

prove that you previously had coverage. This can reduce the length of time pre-existing 

conditions affect your new coverage. Your Certificate of Creditable Coverage states: 

• The date the certificate was issued 

• The name of the Huntington Ingalls Industries, Inc. medical plan option you or your 

dependents were covered under 

• The period of time you or your dependents were enrolled in the medical plan option 

• The name, address, and telephone number of the issuer of the certificate 

• Whom to contact for further information. 

Certificates of Creditable Coverage are issued to you: 

• Automatically, when your coverage under the plan ends — whether or not you elect 

COBRA 

• Automatically, when your COBRA coverage ends, if you elected COBRA coverage 

• On request within 24 months of the date your coverage ends. 

If you need to request a Certificate of Creditable Coverage, or if you are interested in 

more information about HIPAA, call the Huntington Ingalls Benefits Center (HIBC) at 

1-877-216-3222. 

Special Enrollment Periods Provided Under HIPAA 

If you waive medical coverage for yourself or your spouse or eligible dependents during 

enrollment because you or they have other health insurance coverage, and then you or 

they lose that coverage, you may be able to enroll yourself or your dependents in the 

Huntington Ingalls Industries, Inc. Newport News Operations Anthem Keycare 150 Plan 

before the next annual enrollment. Specifically, you may enroll in the Huntington Ingalls 

Industries, Inc. Newport News Operations Anthem Keycare 150 Plan within 31 days of 

the date you or your dependents: 

• Lose eligibility for coverage under another group health plan, 

• Lose the employer contribution toward another group plan’s coverage, or 

• Exhaust COBRA coverage (your COBRA coverage ends, but not because you failed 

to make the premium payment). 

Once you enroll, your coverage is effective retroactive to the date you lost coverage. 

In addition, if you have a new dependent as a result of marriage, birth, adoption, or 

placement for adoption, you may be able to enroll yourself and your dependents, 

provided that you request enrollment within 31 days after the marriage, birth, adoption, or 

placement for adoption. Coverage for new dependents due to marriage will be effective 

no later than the first month following the date of enrollment. Coverage for new 

dependents as a result of birth, adoption, or placement for adoption will be effective on 

the date of the event. 


April 2011 

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HIPAA Privacy Rights 

Title II of the Health Insurance Portability and Accountability Act of 1996 (―HIPAA‖) 

imposes numerous requirements on employer health plans concerning the use and 

disclosure of individual health information. This information, known as protected health 

information, includes virtually all individually identifiable health information held by the 

Huntington Ingalls Industries, Inc. Newport News Operations Anthem Keycare 150 Plan 

— whether received in writing, in an electronic medium, or as an oral communication. 

The privacy rights under Title II of HIPAA are effective April 14, 2003. 

Permitted Uses and Disclosures of Protected Health Information 

The HIPAA privacy rules generally allow the use and disclosure of your health 

information without your permission for purposes of health care treatment, payment 

activities, and health care operations. The amount of health information used or disclosed 

will be limited to the ―minimum necessary‖ for these purposes, as defined under the 

HIPAA rules. 

The Huntington Ingalls Industries, Inc. Newport News Operations Anthem Keycare 150 

Plan, or its health insurer, may disclose your health information without your written 

authorization to Huntington Ingalls Industries, Inc. for plan administration purposes. 

Huntington Ingalls Industries, Inc. may need your health information to administer 

benefits under the plan. Huntington Ingalls Industries, Inc. agrees not to use or disclose 

your health information other than as permitted or required by the plan documents and by 

law. Personnel within the following areas of responsibility are the only Huntington 

Ingalls Industries, Inc. employees who will have access to your health information for 

plan administration functions: 

• Huntington Ingalls Industries, Inc. HIPAA Privacy Official 

• Corporate Benefits Director 

• Corporate Benefits Manager, Executives and Gulf Coast Operations 

• Benefits Manager, Newport News OperationsBenefits Analyst, Health and Welfare 

Programs 

• . 

Here’s how additional information may be shared between the Huntington Ingalls 

Industries, Inc. Newport News Operations Anthem Keycare 150 Plan and Huntington 

Ingalls Industries, Inc. as allowed under the HIPAA rules: 

• The Huntington Ingalls Industries, Inc. Newport News Operations Anthem Keycare 

150 Plan, or its Insurer, may disclose ―summary health information‖ to Huntington 

Ingalls Industries, Inc. if requested, for purposes of obtaining premium bids to 

provide coverage under the plan, or for modifying, amending, or terminating the plan. 

Summary health information is information that summarizes participants’ claims 

information, but from which names and other identifying information has been 

removed. 


April 2011 

-7-

• The Huntington Ingalls Industries, Inc. Newport News Operations Anthem Keycare 

150 Plan, or its Insurer, may disclose to Huntington Ingalls Industries, Inc. 

information on whether an individual is participating in the plan, or has enrolled or 

disenrolled in an insurance option offered by the plan. 

In addition, you should know that Huntington Ingalls Industries, Inc. cannot and will not 

use health information obtained from the plan for any employment-related actions. 

However, health information collected by Huntington Ingalls Industries, Inc. from other 

sources, for example under the Family and Medical Leave Act, Americans with 

Disabilities Act, disability income programs, or workers’ compensation is not protected 

under HIPAA (although this type of information may be protected under other federal or 

state laws). 

In certain cases, your health information can be disclosed without authorization to a 

family member, close friend, or other person you identify who is involved in your care or 

payment for your care. 

Information describing your location, general condition, or death may be provided to a 

similar person (or to a public or private entity authorized to assist in disaster relief 

efforts). You’ll generally be given the opportunity to agree or object to these disclosures 

(although exceptions may be made: for example if you’re not present or if you’re 

incapacitated). In addition, your health information may be disclosed without 

authorization to your legal representative. 

Except as described in the Huntington Ingalls Industries, Inc. Newport News Operations 

Anthem Keycare 150 Plan Privacy Notice (―Privacy Notice‖) and plan document, other 

uses and disclosures will be made only with your written authorization. You may revoke 

your authorization as allowed under the HIPAA rules. However, you cannot revoke your 

authorization if the plan has taken action relying on it. 

Default Procedure 

It is the plan’s procedure, upon request for assistance, to disclose your health information 

to your spouse, and his or her health information to you, and to disclose the health 

information of your over-age enrolled dependent (for example, your child who is over 

age 21) to you or your spouse, unless the person whose health information would 

otherwise be disclosed chooses to opt out of this default procedure. You may request the 

plan not share your health information with your spouse by opting out of this default 

procedure. To opt out, you must contact the Huntington Ingalls Benefits Center (HIBC) 

at 1-877-216-3222. Your spouse and/or your over-age enrolled dependent may also opt 

out of this procedure by contacting the HIBC at 1-877-216-3222. Once an individual has 

opted out of this default, the plan generally will not disclose any of his or her health 

information to family members, unless some other part of the HIPAA regulations permits 

or requires it (for example, that individual becomes incapacitated). Any individual may 

change his or her opt-out election at any time by contacting the HIBC at 1-877-216-3222. 


April 2011 

-8-

Your Rights Under HIPAA 

You have the following rights with respect to your health information the Huntington 

Ingalls Industries, Inc. Newport News Operations Anthem Keycare 150 Plan maintains. 

These rights are subject to certain limitations, as discussed below. 

• Right to request restrictions on certain uses and disclosures of your health information 

and the plan’s right to refuse: 

You have the right to ask the plan to restrict the use and disclosure of your health 

information for treatment, payment, or health care operations, except for uses or 

disclosures required by law. In addition, you have the right to ask the plan to 

restrict the use and disclosure of your health information to family members, 

close friends, or other persons you identify as being involved in your care or 

payment for your care. You also have the right to ask the plan to restrict use and 

disclosure of health information to notify those persons of your location, general 

condition, or death — or to coordinate those efforts with entities assisting in 

disaster relief efforts. If you want to exercise this right, your request to the plan 

must be in writing. 

The plan is not required to agree to a requested restriction. However, if the plan 

does agree, a restriction may later be terminated by your written request, by 

agreement between you and the plan (including an oral agreement), or unilaterally 

by the plan for health information created or received after you’re notified that the 

plan has removed the restrictions. The plan may also disclose health information 

about you if you need emergency treatment, even if the plan has agreed to a 

restriction. 

• Right to receive confidential communications of your health information: 

If you think that disclosure of your health information by the usual means could 

endanger you in some way, the plan will accommodate reasonable requests to 

receive communications of health information from the plan by alternative means 

or at alternative locations. 

If you want to exercise this right, your request to the plan must be in writing and 

you must include a statement that disclosure of all or part of the information could 

endanger you. 

• Right to inspect and copy your health information: 

With certain exceptions, you have the right to inspect or obtain a copy of your 

health information in a ―Designated Record Set.‖ This may include medical and 

billing records maintained for a health care provider; enrollment, payment, claims 

adjudication, and case or medical management record systems maintained by a 

plan; or a group of records the plan uses to make decisions about individuals. 

However, you do not have a right to inspect or obtain copies of psychotherapy 


April 2011 

-9-

notes or information compiled for civil, criminal, or administrative proceedings. 

In addition, the plan may deny your right to access, although in certain 

circumstances you may request a review of the denial. 

If you want to exercise this right, your request to the plan must be in writing. 

• Right to amend your health information that is inaccurate or incomplete: 

With certain exceptions, you have a right to request that the plan amend your 

health information in a designated record set. The plan may deny your request for 

a number of reasons. For example, your request may be denied if the health 

information is accurate and complete, was not created by the plan (unless the 

person or entity that created the information is no longer available), is not part of 

the designated record set, or is not available for inspection (e.g., psychotherapy 

notes or information compiled for civil, criminal, or administrative proceedings). 

If you want to exercise this right, your request to the plan must be in writing, and 

you must include a statement to support the requested amendment. 

• Right to receive an accounting of disclosures of your health information: 

Complaints 

You have the right to a list of certain disclosures the plan has made of your health 

information. This is often referred to as an ―accounting of disclosures.‖ You 

generally may receive an accounting of disclosures if the disclosure is required by 

law, in connection with public health activities, or in similar situations listed in 

the Privacy Notice. 

If you want to exercise this right, your request to the plan must be in writing. 

If you believe your privacy rights have been violated, you may file a complaint with the 

Secretary of Health and Human Services and or with the plan. You will not be retaliated 

against if you file a complaint. To file a complaint with respect to a violation of your 

privacy rights, please contact the Privacy Official or its designee. 

Enrolling During Annual Enrollment 

Each year you have an opportunity to reassess your medical and vision plan option 

elections and make changes during annual enrollment. Your annual enrollment benefit 

elections are effective for the following benefit plan year — from July 1 through the 

following June 30. Several weeks before annual enrollment, Huntington Ingalls 

Industries, Inc. sends you a packet with information about your benefit options and their 

costs and instructions on how you can enroll. 

Generally, you need to enroll during annual enrollment if you want to make changes to 

your benefit elections. If you do not enroll, your current coverage (if available) will carry 

over to the following benefit plan year. 


April 2011 

-10-

If you are on a leave of absence during the annual enrollment period and currently 

enrolled in benefits, you will also receive a packet of information about making changes 

to your medical and/or vision coverage. If you are on a leave of absence at the start of the 

benefit plan year (July 1), your benefit elections generally will take effect at the start of 

the benefit plan year. 

Health Plan “Qualified Life Events” Rules 

Normally, you cannot change your medical or vision plan election or your dependent 

coverage until the next general election period (annual enrollment), which is typically 

held during a two-week period in May and/or June each year, with changes effective July 

1. However, the IRS has issued regulations setting forth governing rules for determining 

when employees whose family or employment circumstances change can be allowed to 

change their coverage elections without waiting for the next annual enrollment. This is 

called a ―qualified life event.‖ The change in coverage must be consistent with the 

change in the person's family or employment status. Only those qualified life events that 

fit within these regulations will be permitted at any time other than annual enrollment. 

If an employee has a qualified life event, the employee must contact the Huntington 

Ingalls Benefits Center (HIBC) at 1-877-216-3222 within 31 days following the date 

of the event. If an employee does not contact the HIBC within this time period, no 

election change can be made until the next annual enrollment period or until another 

qualified life event occurs, whichever is sooner. 

As stated above, an election change will be allowed only if it is consistent with the 

change in family or employment status. The IRS has a general consistency rule that states 

the event must affect coverage eligibility of the employee, spouse or dependent under an 

employer's plan. In addition to the general consistency rule, there are special consistency 

rules that may apply. If there is an overlap in the general and special consistency rules, 

then the special consistency rule's standard must be followed. Because of these complex 

rules, each status change request submitted will be reviewed to determine if a change in 

coverage is permitted by the IRS regulations. 

The tables on the following pages shows permissible qualified life events for the medical and 

vision plan options. 

Event 

Within 31 days of the qualified life event, you can do the following (as long as the change is 

consistent with the life event): 

• Marriage, birth or adoption 


April 2011 

-11-

Event 



Employee may enroll himself, spouse and a newly acquired dependent child. 

Employee may drop coverage if enrolled for coverage under spouse's plan. 

Employee may change current medical plan option 

• Death of dependent, divorce, or annulment 

Employee may drop coverage only for the dependent who loses eligibility 

Employee may newly elect coverage, if not previously enrolled 

• Change in the employment status of employee, spouse or dependent that affects eligibility 

for coverage 

Employee may add/drop coverage 

• Dependent loses benefit eligibility (e.g., marries, reaches age limit, loses student status) 

Employee may drop affected dependent's coverage. 

• Loss of other coverage by employee, spouse or dependent 

Employee may enroll in the plan if other coverage lost due to exhaustion of COBRA, 

loss of eligibility, or termination of employer contributions 

• Change in cost 

Plan may automatically change employees’ elections to reflect increase or decrease in 

cost. 

• Coverage under a benefit option is significantly curtailed 

Employee may revoke election. 

Note: Coverage considered significantly curtailed only if there is an overall reduction in 

coverage to participants generally. Loss of a preferred provider does not qualify. 

• New benefit option is offered or benefit option is eliminated 

Employee may revoke election and elect coverage under the new option. 

• Change in coverage of spouse or dependent under other employer’s plan (No changes 

permitted for change in non-employer-sponsored coverage) 

Employee may make election change corresponding to change in coverage under other 

plan if spouse or dependent makes election change pursuant to qualifying change in 

status, cost, etc. 

• Enrollment period for coverage under spouse or dependent’s plan occurs while employee’s 

elections are in effect 

Employee may make election changes that correspond with coverage elections made 

under other employer’s plan. 

• Termination and rehire within 31 days 


April 2011 

-12-

Event 



Prior elections at termination will automatically be reinstated unless another event has 

occurred that allows a change. 

• Termination and rehire after 31 days 

Employee may make new elections 

• Employee’s commencement of FMLA leave 

Refer to the section ―Continuing Health Coverage Under the Family and Medical Leave Act 

(FMLA)‖ 

What Happens to Your Benefits in Special Situations 

This section describes how certain career changes affect each benefit plan option, and 

what, if anything, you need to do. The situations described in this section are: 

• If you take a leave of absence 

• If you transfer 

• If your employment ends 

• If you are rehired or recalled 

• If you are on a temporary off-site assignment. 

While the following section is a summary of the impact on each plan option, please refer 

to the specific exclusions in each plan’s summary plan description. 

For information about what may happen to your benefits when you experience a personal 

life change, including marriage or the birth of a child, refer to ―Qualified Life Events.‖ 


If you take a leave of absence, how your benefits will be affected depends on the type of 

leave: 

• Medical leave of absence 

• Personal or educational leave of absence 

• Family leave of absence 

• Military leave of absence/military mobilization. 

While you are on leave, you are required to make contributions for certain benefits. Your 

contributions will continue through automatic payroll deductions for as long as you are 

receiving a paycheck. If your paychecks stop, you will be billed. Failure to make required 

payments may result in loss of coverage. 


April 2011 

-13-

Reinstatement of Your Benefits After a Leave 

If you experience a leave of absence, your benefits will be reinstated when you return to 

work, assuming that you continue to be eligible. Generally, if you return from leave in the 

same benefit plan year, your benefits in effect when you began your leave will be 

reinstated. 

If you return from leave in a following benefit plan year, you will have the opportunity to 

select new medical and/or vision benefits during the annual enrollment period, effective 

on the first day of the new benefit plan year or on your first day back to work, if earlier, if 

you are eligible. 

If You Take an Approved Medical Leave of Absence 

If you take a leave of absence for medical reasons, here is how your benefits will be 

affected: 

Benefit Option 

Medical, Vision 

Health Care Flexible 

Spending Account (FSA) 

What Happens During a Medical Leave of Absence 

Coverage continues for the duration of your approved leave, 

provided you pay the required premiums for the coverage. 

If you are receiving a paycheck from Huntington Ingalls 

Industries, Inc. during your leave, your contributions continue 

on a before-tax basis. 

Dependent Day Care Flexible 


Weekly Disability Insurance 



(employee, spouse, child) 

If you are on an unpaid leave, your contributions stop. You 

can be reimbursed for eligible expenses incurred only during 

the time you made contributions. Expenses that you incur 

after the last day of the last pay period in which you made 

contributions are not eligible for reimbursement unless you 

elect COBRA. Once you no longer receive a paycheck, if you 

want to continue your FSA, you can choose to continue with 

after-tax contributions through COBRA for the balance of the 

plan year. 




If you are on unpaid leave, your contributions stop. You can 

be reimbursed for eligible expenses incurred during the 

balance of the plan year. 

Coverage continues for the duration of your approved leave. 



up to the two-year maximum, as long as you continue to pay 

the required premium. 


April 2011 

-14-


What Happens During a Medical Leave of Absence 

Business Travel Accident 

Insurance 

Basic Accidental Death and 

Dismemberment (AD&D) 

Optional Accidental Death 

and Dismemberment (AD&D) 

Group Legal 

When coverage ends, you may choose conversion or 

portability within 31 days. 




up to the two-year maximum, provided you make required 

contributions. When coverage ends, you may choose to 

convert to an individual policy within 90 days. 


provided you pay the required premiums for the coverage. 

If You Take a Personal Leave of Absence 

If you take a leave of absence for personal reasons, here is how your benefits will be 

affected: 







What Happens During a Personal Leave of Absence 

Coverage terminates the end of the month 30 days after your 

leave begins. When coverage ends, you may choose COBRA. 



on a before-tax basis to the end of the month plus one month 

from the day that your leave begins. 



the time you made contributions. Expenses that you incur 

after the last day of the last pay period in which you made 



wish to continue your FSA, you can choose to continue with 

after-tax contributions through COBRA for the remainder of 

the plan year. 



on a before-tax basis to the end of the month plus one month 

from the day that your leave begins. 


can be reimbursed for eligible expenses incurred during the 


April 2011 

-15-







Insurance 





Group Legal 

What Happens During a Personal Leave of Absence 


Coverage terminates on the day your leave begins. 


leave begins. When coverage ends, you may choose 

conversion within 31 days. 

Coverage continues to the end of the month plus one month 

from the day that your leave begins, provided you make 

required contributions. When coverage ends, you may choose 

conversion or portability within 31 days. 

Coverage terminates on the day your leave begins. 




Coverage continues for up to one month from the day your 

leave begins, provided you make required contributions. 

When coverage ends, you may choose to convert to an 

individual policy within 90 days. 


leave begins. 

If You Take an Educational Leave of Absence 

If you take a leave of absence for educational reasons, here is how your benefits will be 

affected: 







What Happens During an Educational Leave of Absence 

Coverage terminates the end of the month the leave begins. 

When coverage ends, you may choose COBRA. 

Your contributions stop. You can be reimbursed for eligible 

expenses incurred only during the time you made 

contributions. Claims that you incur after the last day of the 

last pay period in which you made contributions are not 

eligible for reimbursement unless you elect COBRA. Once 

you no longer receive a paycheck, if you wish to continue 

your FSA, you can continue with after-tax contributions 

through COBRA for the remainder of the plan year. 


expenses incurred during the balance of the plan year. 


April 2011 

-16-







Insurance 





Group Legal 

What Happens During an Educational Leave of Absence 

Coverage ends on the day your leave begins. 

Coverage terminates the end of the month your leave begins. 

When coverage ends, you may choose conversion within 31 

days. 

Coverage continues to the end of the month plus one 

additional month from the day your leave begins, provided 

you make required contributions. When coverage ends, you 

may choose conversion or portability within 31 days. 




days. 

Coverage continues for up to one month from the day your 

leave begins, provided you make required contributions. 

When coverage ends, you may choose to convert to an 

individual policy within 90 days. 


If You Take a Family Leave of Absence 

If you take a leave of absence for family reasons for example, to care for a sick family 

member here is how your benefits will be affected: 








What Happens During a Family Leave of Absence 

Coverage continues for the duration of your approved leave of 

absence, provided you make required contributions. 


expenses incurred only during the time you made 

contributions. Claims that you incur after the last day of the 

last pay period in which you made contributions are not 

eligible for reimbursement unless you elect COBRA. Once 

you no longer receive a paycheck, if you wish to continue 

your FSA, you can continue with after-tax contributions 

through COBRA for the remainder of the plan year. 


expenses incurred during the balance of the plan year. 


absence. 


April 2011 

-17-






Insurance 





Group Legal 

What Happens During a Family Leave of Absence 


absence. 

Coverage continues to the end of the month plus four 

additional months from the day your leave begins, provided 


may choose conversion or portability within 31 days. 


absence. 


absence. 

Coverage continues to the end of the month plus four 

additional months from the day your leave begins, provided 


may choose to convert to an individual policy within 90 days. 

Coverage continues, provided you pay the required premiums 

for the coverage. 

Your contributions will continue through automatic payroll deductions for as long as you 

are receiving a paycheck. If your paychecks stop, you will be billed for continued 

coverage. Failure to make required arrangements and payments may result in loss of 

coverage. 

If You Take a Military Leave of Absence/Military Mobilization 

Huntington Ingalls Industries, Inc. complies with specific plan and contract provisions, as 

well as federal and state laws regarding military leaves. If you take a military leave of 

absence, are called to active military duty, or are reassigned to another military duty 

station, here is how your benefits will be affected: 





What Happens During a Military Leave of Absence 


leave begins. When coverage ends, you may choose COBRA. 






the time you made contributions. Claims that you incur after 

the last day of the last pay period in which you made 




April 2011 

-18-








Insurance 

Basic Accidental Death & 




Group Legal 

wish to continue your FSA, you can continue with after-tax 

contributions through COBRA for the remainder of the plan 

year. 











Coverage continues as long as you make the required 

contributions. 

Coverage terminates the day your leave begins. 




Coverage stops on the day your leave begins. When coverage 

ends, you may choose to convert to an individual policy 

within 90 days. 


leave begins. 


April 2011 

-19-












Insurance 

Basic Accidental Death & 




Group Legal 

What Happens During a Military Mobilization 

Coverage continues, provided you pay the required premiums 







the time you made contributions. Claims that you incur after 

the last day of the last pay period in which you made 



wish to continue your FSA, you can continue with after-tax 


year. 









absence. 

Coverage continues as long as you make the required 

contributions. 





Coverage stops on the day your leave begins. When coverage 

ends, you may choose to convert to an individual policy 

within 90 days. 

Coverage continues provided you pay the required premiums 


For more information about a military leave of absence or military mobilization, you can 

call the Huntington Ingalls Benefits Center (HIBC) at 1-877-216-3222 or contact your 

local human resources office. 


April 2011 

-20-


If you transfer from one business unit of Huntington Ingalls Industries, Inc. to another, 

how your benefits are affected depends on the type of transfer. 

If You Transfer From Huntington Ingalls Industries, Inc. Newport News Operations 

as a Represented Employee to a Business Unit that Participates in the Huntington 

Ingalls Industries, Inc. Health Plan 

You are treated as a new employee for purposes of the Huntington Ingalls Industries, Inc. 

Health Plan. 

If You Transfer From a Business Unit that Participates in the Huntington Ingalls 

Industries, Inc. Health Plan To Huntington Ingalls Industries, Inc. Newport News 

Operations as a Represented Employee 

Here is how your benefits are affected: 



Health Care and 

Dependent Day Care 

Flexible Spending 

Accounts (FSAs) 

All Other Benefits 

What Happens to Your Benefits 

Coverage ends on your transfer date. You can select new coverage 

under your new benefit program, if available. If coverage is not 

available, you can choose COBRA. 

Coverage ends on your transfer date. If you want to continue your 

previous FSA, you can continue with after-tax contributions 

through COBRA for the remainder of the plan year. You have 

until December 31 following the end of the benefit plan year to 

file claims for eligible expenses incurred during the benefit plan 

year. 

Coverage ends on your transfer date. You may be eligible for 

benefits under your new benefit program. 

If Your Employment Ends 

If your employment with Huntington Ingalls Industries, Inc. ends, how your benefits will 

be affected depends on whether: 

• You voluntarily quit or are discharged 

• Your employment ends due to a layoff/reduction in force 

• You retire 

• Your employment ends due to disability 

• You die while actively employed. 


April 2011 

-21-

If You Voluntarily Quit or Are Discharged 

If your employment ends because you voluntarily quit, or you are discharged, here is 

what happens to your benefits: 






Flexible Spending 

Account (FSA) 

Weekly Disability 

Insurance 





Insurance 

Basic Accidental Death 

and Dismemberment 

(AD&D) 

Optional Accidental 

Death and 

Dismemberment 

(AD&D) 

Group Legal 


Coverage ends the end of the month you quit or are discharged 

from the Company. You can select COBRA continuation within 

60 days from the date you would lose coverage under the plan or 

the date you receive a COBRA continuation notice, whichever is 

later. 

Your contributions stop on your termination date, and you can 

submit eligible expenses incurred through your termination date 

(unless you choose to continue with after-tax contributions 

through COBRA within 60 days of your termination date). 

Your contributions stop on your termination date. You can be 

reimbursed for eligible expenses incurred through the end of the 

plan year. 

Coverage ends on the date you quit or are discharged from the 

Company. 

Coverage ends 30 days after your last day of work. When 

coverage ends, you may choose conversion within 31 days. 

Coverage stops on your termination date. You have 31 days to 

choose to convert coverage to an individual whole life policy, or 

choose portability. 

Coverage ends on the date you quit or are discharged from the 

Company. 

Coverage ends 30 days after your last day of work. You have 31 

days to convert to an individual policy. 


convert to an individual policy. 

Coverage ends the end of the month you quit or are discharged. 


April 2011 

-22-

If Your Employment Ends Due to a Layoff/Reduction in Force 

If your employment ends due to a layoff/reduction in force, the following chart describes 

how your benefits may be affected. 






Flexible Spending Account 

(FSA) 






Insurance 





(AD&D) 

Group Legal 


Coverage continues to the end of the month plus one month 

from your termination date, provided you pay the required 

premiums for the coverage. You can elect COBRA 

continuation within 60 days from the end of coverage. 


submit eligible expenses incurred through your termination 

date (unless you choose to continue your FSA with after-tax 


year). 

Your contributions stop on your termination date. You can file 

claims for eligible expenses incurred during the benefit plan 

year. 

Coverage ends on your layoff date. 

Coverage continues to the end of the month, plus one month 

from your termination date. When coverage ends, you may 

choose conversion within 31 days. 


choose to convert coverage to an individual whole life policy, 

or choose portability. 

Coverage ends on your layoff date. 

Coverage continues to the end of the month, plus one month 

from your termination date. When coverage ends, you may 

choose conversion within 31 days. 



Coverage continues to the end of the month of your 

termination date, provided you pay the required contributions 



April 2011 

-23-

If You Retire 

Here is what happens to your benefits if you retire: 







(FSA) 






Insurance 





(AD&D) 

Group Legal 


Coverage under the plans for active employees continues to 

the end of the month in which you terminate employment. You 

may elect retiree medical coverage until you turn age 65 or 

become eligible for Medicare, whichever occurs first. 

You can elect vision coverage through COBRA within 60 days 

of your termination date for the vision plan. 


submit eligible expenses incurred through your termination 

date (unless you choose to continue your FSA with after-tax 


year). 

Your before-tax contributions stop on your termination date. 

You can file claims for eligible expenses incurred during the 

benefit plan year. 

Coverage ends on your termination date. 

Coverage terminates 30 days after your last day of work. 


days. 


convert coverage to an individual whole life policy, or choose 

portability. 


Coverage terminates 30 days after your last day of work. You 

have 31 days to convert to an individual policy. 



Coverage terminates the end of the month in which you 

terminate employment. 


April 2011 

-24-

If Your Employment Ends Due to Disability 

If your employment ends because you become disabled, here is what happens to your 

benefits: 



Health Care and Dependent 

Day Care Flexible Spending 

Accounts (FSAs) 






Insurance 





(AD&D) 


If you retire from a ―disability‖ status, your medical coverage 

under the medical plan for active employees ends at the end of 

the month of your termination date and you can elect to enroll 

in the retiree medical plan until you turn age 65 or become 

eligible for Medicare, whichever occurs first. Your vision 

coverage terminates the end of the month in which you 

terminate employment. You can elect COBRA continuation 

for vision coverage. 

Not applicable. By the time a disability termination occurs, 

your contributions would have stopped. 


Coverage ends the earliest of: 

• The date you are no longer permanently and totally 

disabled 

• The date you reach age 65, if your total disability starts 

prior to age 60 

• If your disability commenced on or after age 60, coverage 

ends on the date you reach the following ages: 

Age 60 – 64, coverage continues for 5 additional years 

Age 65 – 69, coverage continues to age 70 

Age 70 and over, coverage continues for 3 additional 

months 

When coverage ends, you have 31 days to convert to an 

individual policy 

Coverage terminates 24 months after you become disabled or 

upon retirement, whichever occurs first, as long as you have 

continued the appropriate premium payments. When coverage 

ends, you may choose conversion within 31 days. 

Coverage ends 30 days after your last day of work. 

Coverage ends on your termination date. You have 31 days to 





April 2011 

-25-


Group Legal 


Coverage terminates the end of the month in which you 

terminate. 

If You Die While Actively Employed 

If you die while actively employed, here is what happens to your benefits: 


Medical*, Vision 





(FSA) 




(employee) 


(spouse, child) 


Insurance 





(AD&D) 

Group Legal 


Dependent coverage terminates the end of the month in which 

the employee dies, provided premiums for this coverage are 

paid. Your dependents can then elect COBRA continuation 

within 60 days from the end of coverage. 

Contributions stop on the date of your death. Your dependents 

can file claims for eligible expenses incurred before your 

death. Your dependents also have the option to continue the 

FSA with after-tax contributions through COBRA for the 

remainder of the plan year. 

Contributions stop on the date of your death. Your dependents 

can file claims for eligible expenses incurred through the end 

of the plan year. 

Coverage terminates upon death. 

Coverage terminates upon death. Your beneficiary receives the 

amount of your life insurance. 

Your named beneficiary receives the amount of your life 

insurance. 

Coverage continues for 31 days from the date of your death, 

during which time your dependent(s) can convert to an 

individual policy. 

Coverage terminates upon death. 

If you die in an accident, your beneficiary receives the amount 

of your AD&D insurance, otherwise ends on the date of your 

death. 

If you die in an accident, your named beneficiary receives the 

amount of any optional AD&D insurance you selected. 

Coverage stops on the date of your death unless you chose 

family coverage, which continues to the end of the month plus 

one year from the date of your death. 

Coverage terminates the end of the month the employee dies. 

* If your death is due to a job-related accident or illness while you are actively employed 

and under age 65, your spouse’s and/or qualifying dependent(s)’s medical coverage 


April 2011 

-26-

continues provided the required premiums are paid. Your spouse’s coverage will 

continue up to the time he or she turns age 65, becomes eligible for Medicare, or 

remarries whichever happens first. Your qualifying dependent(s)’s coverage will 

continue for as long as he or she continues to qualify as an eligible dependent. 

If You Are Rehired or Recalled 

If you are rehired (after you were terminated) and you return to employment with 

Huntington Ingalls Industries, Inc., or you are recalled (you were terminated for lack of 

work or a reduction in workforce) and you return to work, how your benefits are affected 

depends on when you return to work: 

• If you are rehired or recalled during the same benefit plan year: Your prior benefit 

choices are reinstated on the date you return to work. Please call the Huntington 

Ingalls Benefits Center (HIBC) at 1-877-216-3222 to confirm your reinstatement is 

in place, or, if you have experienced a qualified life event, to verify or change your 

coverage. 

• If you are rehired or recalled in a different benefit plan year: You are treated as a new 

employee for purposes of the Plan. Please call the Huntington Ingalls Benefits Center 

(HIBC) at 1-877-216-3222 for details. 

COBRA Continuation of Coverage 

What Is COBRA 

According to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), 

as amended, you and your enrolled family members are eligible to pay for continued 

group health care coverage if you lose your benefits under certain circumstances, 

including termination of employment (unless due to gross misconduct). Continued 

coverage rights apply only to health care coverage (medical, vision, Employee Assistance 

Plan, Retiree Prescription Drug Plan and health care flexible spending account), not to 

other types of benefits (dependent day care flexible spending account, life insurance and 

weekly disability insurance). 

You and your enrolled family members will be considered qualified beneficiaries and can 

continue coverage for a maximum of 18, 29, or 36 months, depending on the reason your 

coverage ended, as shown in the chart below. If multiple circumstances occur, the 

maximum period is a total of 36 months. For the health care flexible spending account, 

you can continue participation until the end of the benefit plan year in which you lose 

your benefits. 

You and your eligible dependents have 60 days from the date coverage ends or the date 

of receipt of your COBRA notice, whichever is later, to elect continued participation 

under COBRA. (Each family member who is a qualified beneficiary may make a separate 


April 2011 

-27-

COBRA election.) You have an additional 45 days from the date of your election to pay 

your first COBRA premium. After that time, your premium payments are due as of the 

first of the month, with a 30-day grace period. If you do not make a timely election, 

COBRA rights are waived. 

If you elect COBRA continuation: 

• Initially, you and your dependents will keep the same type of plan coverage you were 

enrolled in while an active employee. 

• You may keep the same coverage category you had as an active employee or choose a 

different category. For example, if your spouse and all of your dependents were 

enrolled under the Huntington Ingalls Industries, Inc. Newport News Operations 

Anthem Keycare 150 Plan, you could choose to enroll all, some or none under 

COBRA. 

• Coverage is effective on the date of the event that qualified you for COBRA 

coverage, unless you waive COBRA coverage and subsequently revoke your waiver 

within the 60-day election period. In that case, your coverage begins on the date you 

revoke your waiver. 

• You may change plan coverage and coverage category (including adding eligible 

dependents) during the annual enrollment period or if you have a qualified life event. 

• You may add newly acquired dependents during the benefit plan year. 

• You can enroll your newly eligible spouse or child under the same guidelines that 

apply to active employees. 

• If you or a covered dependent is Medicare eligible, Medicare pays primary for that 

individual, regardless of whether the individual enrolls in Medicare Parts A and/or B. 

COBRA Continuation Period 

Qualifying Event 

You lose coverage because you reduce your 

work hours or take unpaid leave 

You terminate employment for any reason 

(except gross misconduct) 

You or your dependent is disabled (as defined 

by Title II or XVI of the Social Security Act) 

during the first 60 days after COBRA begins 

Maximum Continuation Period 

Employee Spouse Child 

18 months 18 months 18 months 



You die N/A 36 months 36 months 

You and your spouse legally separate or 

divorce 

You are already on COBRA and become 

disabled and entitled to Medicare, which 

causes your dependents to lose coverage 

N/A 36 months 36 months 

N/A 18 months 18 months 

Your child no longer qualifies as a dependent N/A N/A 36 months 


April 2011 

-28-

Newly Eligible Child 

If you, the former Huntington Ingalls Industries, Inc. employee, elect continuation 

coverage and then have a child (either by birth, adoption, or placement for adoption) 

during the period of continuation coverage, the new child is also eligible to become a 

qualified beneficiary. In accordance with the terms of the Huntington Ingalls Industries, 

Inc.-sponsored group health plan and the requirement of the federal law, these qualified 

beneficiaries can be added to COBRA coverage by providing your local human resources 

representative with notice of the new child’s birth, adoption or placement for adoption. 

This notice must be provided within 30 days of birth, adoption, placement for adoption, 

or appointment as a legal guardian. The notice must include the name of the new 

qualified beneficiary, date of birth or adoption of new qualified beneficiary, and birth 

certificate or adoption decree. 

If you fail to notify Huntington Ingalls Industries, Inc. in a timely fashion regarding your 

newly acquired child, you will not be offered the option to elect COBRA coverage for 

that child. Newly acquired dependent child(ren) (other than children born to, adopted by, 

or placed for adoption with the employee) will not be considered qualified beneficiaries, 

but may be added to the employee’s continuation coverage, if enrolled in a timely 

fashion, subject to the plan’s rules for adding a new dependent. 

Cost for COBRA 

COBRA participants pay monthly premiums for their coverage on the following basis: 

• For health care coverage (medical, vision, Employee Assistance Plan, Retiree 

Prescription Drug Plan), premiums are based on the full group rate per enrolled 

person set at the beginning of the benefit plan year, plus 2% for administrative costs. 

Your spouse or child who is a qualified beneficiary making a separate election is 

charged the same rate as a single employee. 

• Health care flexible spending account contributions can be continued through the end 

of the benefit plan year on an after-tax basis, plus the 2% administrative charge. 

If you or your enrolled dependent is disabled, as defined by Social Security, COBRA 

premiums for months 19 through 29 may be increased to reflect 150% of the full group 

cost per person. 

Premium payments for COBRA Continuation Coverage must be mailed to the 

Huntington Ingalls Benefits Center at the address below: 


P.O. Box 563912 



April 2011 

-29-

Notification 

You are notified by mail of your COBRA election rights and enrollment instructions 

when you qualify due to a reduction in hours or termination of employment (other than 

for gross misconduct). Your spouse and dependent children are notified of their COBRA 

election rights when they lose health coverage with Huntington Ingalls Industries, Inc. as 

a result of your death or Medicare entitlement. 

If your dependents lose coverage due to divorce, legal separation, or loss of dependent 

status, you (or a family member) must notify the Huntington Ingalls Benefits Center 

(HIBC) at 1-877-216-3222 within 60 days of the event so that COBRA can be offered 

and information on election rights can be mailed. Also, to extend coverage beyond 18 

months because of disability, you must provide notice of the Social Security 

Administration’s determination during the initial 18-month period and within 60 days of 

the date you receive your determination letter. 

Your Duties Upon a Second Qualifying Event 

If an employee or covered family member experiences a second qualifying event that 

would entitle him or her to additional months of continuation coverage, he or she must 

notify the Huntington Ingalls Benefits Center. This notice must be provided in writing 

and must include the name of the employee, the name of the qualified beneficiary 

receiving COBRA coverage, and the type and date of second qualifying event. 

This notice must be provided within 60 days from the date of the second qualifying event 

(or, if later, the date coverage would normally be lost because of the second qualifying 

event). In addition, the employee or covered family member may also be required to 

provide a copy of a death certificate, divorce decree, separation agreement, and 

dependent child(ren)’s birth certificate(s). 

When Huntington Ingalls Industries, Inc. is notified that one of these events has 

happened, the covered family member will automatically be entitled to the extended 

period of continuation coverage. If an employee or covered family member fails to 

provide the appropriate notice and supporting documentation to Huntington Ingalls 

Industries, Inc. during this 60-day notice period, the covered family member will not be 

entitled to extended continuation coverage. 

Special Rules for Disability 

The 18 months of COBRA coverage may be extended for up to 29 months if the 

employee or covered family member is determined by the Social Security Administration 

to be disabled (for Social Security disability purposes) at the time of the qualifying event 

or at any time during the first 60 days of COBRA continuation coverage. This 11-month 

extension is available to all family members who are qualified beneficiaries due to 

termination or reduction in hours of employment, even those who are not disabled. To 

benefit from the extension, the qualified beneficiary must notify the Huntington Ingalls 

Benefits Center, within 60 days of the Social Security determination of disability and 


April 2011 

-30-

efore the end of the original 18-month continuation coverage period. The notice must be 

provided in writing and must include the name of the employee or qualified beneficiary 

receiving COBRA coverage, information about his or her disability, and a copy of a letter 

from the Social Security Administration indicating a disability determination. 

If, during continued coverage, the Social Security Administration determines that the 

qualified beneficiary is no longer disabled, the individual must notify the Huntington 

Ingalls Benefits Center of this determination within 30 days of the date it is made, and 

COBRA coverage will end. The notice must be provided in the same manner as, and 

include the same information required for, a notice of disability as described above. 

If a qualified beneficiary is disabled and another qualifying event occurs within the 29- 

month continuation period, then the continuation coverage period is 36 months from the 

termination of employment or reduction in hours. 

Medicare 

If you experience a qualifying event due to termination of employment or reduction of 

hours within 18 months after you have enrolled in Medicare, your spouse and dependent 

children who are qualified beneficiaries may elect COBRA for medical and/or 

dental/vision coverage for up to 18 months measured from the date of your Medicare 

enrollment. 

Trade Reform Act of 2002 

The Trade Reform act of 2002 created a special COBRA right applicable to employees 

who have been terminated or experienced a reduction of hours and who qualify for a 

―trade readjustment allowance‖ or ―alternative trade adjustment assistance.‖ These 

individuals can either take a tax credit or get advance payment of 65% of premiums paid 

for qualified health insurance coverage, including COBRA continuation coverage. These 

individuals are also entitled to a second opportunity to elect COBRA coverage for 

themselves and certain family members (if they did not already elect COBRA coverage). 

This election must be made within the 60-day period that begins on the first day of the 

month in which the individual becomes eligible for assistance under the Trade Reform 

Act of 2002. However, this election may not be made more than six months after the date 

the individual’s group health plan coverage ends. 

When COBRA Ends 

COBRA coverage ends before the maximum continuation period ends if one of the 

following occurs: 

• You or your dependent becomes covered under another group health plan not offered 

by Huntington Ingalls Industries, Inc. after the date of your COBRA election (unless 

the plan has pre-existing condition limitations that affect the enrolled person) 

• You or your dependent becomes enrolled in Medicare after the date of your COBRA 

election (if you or your dependent is not entitled to or enrolled in Medicare, you or 


April 2011 

-31-

your dependent can continue coverage under COBRA until the maximum 

continuation period ends) 

• You or your dependent fails to make a timely monthly payment. After the initial 

COBRA premium payment, payments are due on the first day of each month and, if 

your payment is not received within 31 days after the first day of the month (the 

―grace period‖), coverage will be terminated effective as of the last day of the period 

for which payment was made. For example, if payment for May coverage is due 

May 1, and you fail to make the applicable payment by May 31, your coverage will 

be terminated retroactive to April 30. 

• After your initial 18-month period, you or your dependent ceases to be considered 

disabled for Social Security purposes and is not otherwise eligible for a longer 

continuation coverage period 

• Huntington Ingalls Industries, Inc. ceases to provide medical benefits to any 

employee. 

COBRA and FMLA 

For purposes of a Family and Medical Leave Act (FMLA) leave, you will be eligible for 

COBRA, as described above, only if: 

• You or your dependent is covered by the plan on the day before the leave begins (if 

you or your dependent becomes covered during the FMLA leave); and 

• You do not return to employment at the end of the FMLA leave. 

A leave that qualifies under the Family and Medical Leave Act (FMLA) does not make 

you eligible for COBRA coverage. However, regardless of whether you lose coverage 

because of nonpayment of premium during an FMLA leave, you are still eligible for 

COBRA on the last day of the FMLA leave if you decide not to return to active 

employment. Your COBRA continuation coverage will begin on the earliest of the 

following to occur: 

• When you definitively inform Huntington Ingalls Industries, Inc. that you are not 

returning at the end of the leave, or 

• The end of the leave, assuming you do not return to work. 

Questions About COBRA 

If you have any questions about COBRA coverage or the application of the law, please 

contact your local human resources representative or contact the nearest Regional or 

District Office of the U.S. Department of Labor’s Employee Benefits Security 

Administration (EBSA). Addresses and phone numbers of Regional and District EBSA 

Offices are available through EBSA’s website at www.dol.gov/ebsa. 

Keep Your Plan Informed of Address Changes 

In order to protect your and your family’s rights, you should keep your local human 

resources representative informed of any changes in your or your family members’ 

addresses. You should also keep a copy, for your records, of any notices you send. 


April 2011 

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Uniformed Services Employment and Reemployment Rights Act of 1994 

(USERRA) 

If you have taken leave to perform service in the uniformed services, you may also 

qualify to purchase continuation coverage for yourself and any covered dependents 

pursuant to the Uniformed Services Employment and Reemployment Rights Act of 1994 

(―USERRA‖). Continuation coverage rights under USERRA are similar to COBRA 

continuation coverage rights. 

In order to qualify for USERRA continuation coverage, you must be performing duty on 

a voluntary or involuntary basis in a uniformed service (see below) under competent 

authority. Service includes active duty, active and inactive duty for training, National 

Guard duty under federal law and a period for which you are absent for an examination to 

determine your fitness to perform those duties. Service also includes a period for which 

you are absent to perform funeral honors duty as authorized by law and services as an 

intermittent disaster-response appointee of the National Disaster Medical System. 

Uniformed services means the following: Armed Forces; Army National Guard; Air 

National Guard when engaged in active duty for training, inactive duty training, or 

fulltime National Guard duty; the commissioned corps of the Public Health Service; and 

any other category of persons designated by the president in time of war or national 

emergency. 

Duration of Coverage 

If you qualify to continue coverage under USERRA, you may continue coverage for 

yourself and any covered dependents for whom you elect coverage for up to 24 months 

from the date your coverage would end because of your leave. Your USERRA coverage 

will end earlier than the end of the 24-month period if: 

• You fail to pay the required premiums on a timely basis as described in the ―COBRA 

Continuation of Coverage‖ section of this summary plan description and the COBRA 

election and payment materials that will be provided to you when you experience a 

COBRA qualifying event 

• You fail to return to work within the time required under USERRA 

• You lose your USERRA rights because you are dishonorably discharged or because 

of other conduct specified in USERRA. 

COBRA coverage and USERRA coverage begin at the same time and run concurrently. 

As noted in the ―COBRA Continuation of Coverage‖ section, COBRA coverage can 

continue for up to 18 months and is subject to extension and early termination in certain 

circumstances that do not apply under USERRA. 

If you elect COBRA coverage on a timely basis and are eligible for USERRA 

continuation coverage, your COBRA election will also be treated as an election of 

USERRA. All of the rules and procedures regarding COBRA coverage apply to 

USERRA coverage, except that the deadline for electing continuation coverage will not 

apply to USERRA coverage if under the circumstances it was unreasonable or impossible 

for you to make a timely election of coverage (for example, emergency military 


April 2011 

-33-

deployment). Also, if your military leave is for less than 31 days, you will be required to 

pay only the normal employee contribution for the level of coverage you continue. 

Continuing Health Coverage under the Family Medical Leave Act (FMLA) 

Under the Family and Medical Leave Act of 1993, you may be eligible to take up to 12 

work-weeks of unpaid leave during any 12-month period for any one of the following 

reasons: 

• To care for your child after birth, placement for adoption or foster care 

• To care for your spouse, child or parent with a serious health condition. or 

• For your own serious health condition. 

To be eligible for leave you must have been a full-time employee for at least 12 months 

and have provided at least 1,250 hours of service during this 12-month period. 

Individuals who work for a business that has less than 50 employees within 75 miles of 

the worksite are excluded from coverage under the Family and Medical Leave Act. Your 

employer can provide specific information on your company’s policies regarding the 

Family and Medical Leave Act, and explain any steps required for having an unpaid 

leave approved. 

Health plan coverage can be maintained during an approved unpaid leave at the same 

level and under the same conditions you had during active employment. This includes 

any opportunities to make changes in health program options or coverage levels as 

available to active employees. 

If you elect to maintain health plan coverage during unpaid leave, you must continue to 

make the same contribution payments toward that coverage as would be required of an 

active employee or coverage will lapse. Under certain circumstances, if an employee does 

not return to work, Huntington Ingalls Industries Inc. Newport News Operations may 

recover any contributions for health plan coverage made on the employee’s behalf for 

health coverage during the leave period. 

If you elect not to continue health plan coverage during your leave, your coverage will be 

reinstated when you return to active employment on the same terms available to other 

active employees. 

Amendment and Termination of Plans 

Huntington Ingalls Industries, Inc. Newport News Operations expect to continue the 

benefit plans described herein, but retain the right to terminate, amend or end 

participation in any plan as set forth in the individual Plan documents or SPDs. An 

amendment or termination of any plan may affect not only the coverages of active 

employees (and their covered dependents) but also of participants with COBRA coverage 

and former employees who retired, died or otherwise terminated employment. 

Huntington Ingalls Industries, Inc. Newport News Operations also reserves the right to 


April 2011 

-34-

change the amount of required employee contributions in connection with annual 

enrollment periods. 


Benefits under these plans will be paid only if the Plan Administrator (including any 

third-party claims administrator to whom the company has delegated claims processing 

responsibility) decides in their discretion that the applicant is entitled to them. 

Your rights and benefits under these plans cannot be assigned, sold, transferred or 

pledged by you or reached by your creditors or anyone else except under limited 

circumstances (e.g., qualified domestic relations order). 

Employment Status 

The plans are not a contract of employment nor a consideration for your employment. 

The plans do not give you the right to be retained as an employee. All employees remain 

subject to termination, layoff, or discipline as if the plans had not been put into effect. 

Information Specific to the Huntington Ingalls Industries, Inc. Newport News 

Operations Cash Balance and Pension Earnings Plan, Pension Plan and 

Target Benefit Plan for Employees Covered the United Steelworkers 

Collective Bargaining Agreement, and the Huntington Ingalls Industries, Inc. 

Newport News Operations Company Savings (401(k)) Plan for Union Eligible 

Employees 

Plan Assets 

All assets of the above Plans are held in one or more trusts. Plan assets are held for the 

exclusive benefit of plan participants. All benefit payments are made directly from the 

trust fund. 

Unclaimed Benefits 

A delay in applying for benefits may cause a delay in your payment. If you move and do 

not notify the Plan Administrator of your new address, your benefit payment may be 

delayed until the Plan Administrator locates you. Likewise, you should notify the Plan 

Administrator when your beneficiary moves and his or her address changes. 

Under state law, if the Plan Administrator cannot locate you for a specified period of 

time, you may forfeit your benefits to a state government. If this is the case, you must 

apply to the state to receive your benefit. 

Contact and Plan Information 

The charts on the following pages contain plan contact information, provided in 

accordance with ERISA (Employee Retirement and Income Security Act). All plans were 


April 2011 

-35-

established consistent with the provisions of previous and current collective bargaining 

agreements. All plans are included in the current agreement between Huntington Ingalls 

Industries, Inc, Newport News Operations and the United Steelworkers, Local Union 

8888, the bargaining agent, which agreement is effective October 27, 2008 through 

March 10, 2013. 

The agent for service of legal process for all plans is: 


c/o Corporate Secretary 




Service of legal process may also be made upon the Plan Administrator or the Trustee. 


April 2011 

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Contact Information: Vision Plan 

ERISA Plan Name: 


Vision Plan for Employees Covered by the United 

Steelworkers, Local 8888, Collective Bargaining Agreement; 

the Plan is a component plan under the Huntington Ingalls 

Industries, Inc. Group Benefits Plan 

Employer: 

Employer Identification 

Number (EIN): 

Type of Plan: 

Type of Administration: 

Plan Administrator: 

Agent for Service of Legal 

Process: 




90-0607005 

Welfare benefit plan 

Self-Insured 

Employee Welfare Benefits Committee 









Benefit Plan Year: July 1 – June 30 

Plan Number: 

Claims Administrator: 

Service of process may also be made to the plan 

administrator. 

The Plan is a component plan under the Huntington Ingalls 

Industries, Inc. Group Benefits Plan; plan 501 

Vision Service Plan (VSP) 



Source of Contributions: 

Employee contributions 


April 2011 

-37-

Contact Information: Health Care Flexible Spending Accounts 



Health Care Flexible Spending Accounts for Employees 

Covered by the United Steelworkers, Local 8888, Collective 

Bargaining Agreement; the Plan is a component plan under 

the Huntington Ingalls Industries, Inc. Group Benefits Plan 

Employer: 


Number (EIN): 





Process: 




90-0607005 


Huntington Ingalls Industries, Inc. self-insures the Health Care 

Flexible Spending Account Plan 













Service of process may also be made to the plan administrator. 

. The Plan is a component plan under the Huntington Ingalls 


Benesyst Inc. 


Minneapolis, MN 55401 




April 2011 

-38-

Contact Information: Dependent Care Flexible Spending Account 



Dependent Care Flexible Spending Account Plan for 

Employees Covered by the United Steelworkers, Local 8888, 

Collective Bargaining Agreement; the Plan is a component 

plan under the Huntington Ingalls Industries, Inc. Group 

Benefits Plan 

Employer: 


Number (EIN): 





Process: 




90-0607005 





Huntington Ingalls Industries, Inc. self-insures the Dependent 

Care Flexible Spending Account Plan 










Service of process may also be made to the the plan 



Industries, Inc. Group Benefits Plan; plan 501. 

Benesyst Inc. 


Minneapolis, MN 55401 




April 2011 

-39-

Contact Information: Life Insurance 



Life Insurance Plan for Employees Covered by the United 

Steelworkers, Local 8888, Collective Bargaining Agreement; 

the Plan is a component plan under the Huntington Ingalls 


Employer: 




Employer Identification 90-0607005 

Number (EIN): 



Type of Administration: Insured 

Plan Administrator: Employee Welfare Benefits Committee 




Agent for Service of Legal Huntington Ingalls Industries, Inc. 

Process: 










Insured by: 

MetLife 

One Madison Avenue 

New York, NY 10010 

Claims Administrator: MetLife 


5950 Airport Road 



Insurance premiums are paid by Huntington Ingalls Industries, 

Inc. and participants. Benefits are paid through an insurance 

contract. 


April 2011 

-40-

Contact Information: Business Travel Accident Insurance 



Business Travel Accident Insurance Plan for Employees 

Covered by the United Steelworkers, Local 8888, Collective 

Bargaining Agreement; the Plan is a component plan under 

the Huntington Ingalls Industries, Inc. Group Benefits Plan 

Employer: 


Number (EIN): 





Process: 




90-0607005 


Insured 










Benefit Plan Year: January 1 – December 31 


Insured by: 






Life Insurance Company of North America (LINA) 


Philadelphia, PA 19192-2235 

1-800-238-2125 


1600 West Carson Street, Suite 300 


1-800-238-2125 

Insurance premiums are paid by Huntington Ingalls Industries, 

Inc. Benefits are paid through an insurance contract. 


April 2011 

-41-

Contact Information: Accidental Death and Dismemberment (AD&D) Insurance 


Employer: 


Number (EIN): 





Process: 

Huntington Ingalls Industries, Inc. Newport News 

Operations Accidental Death and Dismemberment Insurance 

Plan for Employees Covered by the United Steelworkers, 

Local 8888, Collective Bargaining Agreement; the Plan is a 

component plan under the Huntington Ingalls Industries, Inc. 

Group Benefits Plan 

. 


Operations 



90-0607005 


Insured 



Insured by: 















Life Insurance Company of North America (LINA) 


Philadelphia, PA 19192-2235 

1-800-238-2125 


1600 West Carson Street, Suite 300 


1-800-238-2125 


April 2011 

-42-


Premiums are paid by Huntington Ingalls Industries, Inc. and 

participants. 


April 2011 

-43-

Contact Information: Weekly Disability Insurance Plan 



Weekly Disability Insurance Plan for Employees Covered by 

United Steelworkers, Local 8888 Collective Bargaining 

Agreement Effective October 27, 2008 through March 10, 

2013; the Plan is a component plan under the Huntington 

Ingalls Industries, Inc. Group Benefits Plan 

Employer: 


Number (EIN): 





Process: 




90-0607005 


Self-insured 












Benefit Plan Year: Plan records are maintained on a policy year basis (June 1 

through May 31). 





Industries, Inc. Group Benefits Plan; plan 501.. 

Aetna Life Insurance Company 

PO Box 14554 

Lexington, Kentucky 40512-4554 

1-877-465-0424 

Premiums are paid by Huntington Ingalls Industries, Inc. 


April 2011 

-44-

Contact Information: Employee Assistance Plan 



Employee Assistance Plan for Employees Covered by United 

Steelworkers, Local 8888 Collective Bargaining Agreement 

Effective October 27, 2008 through March 10, 2013; the Plan 

is a component plan under the Huntington Ingalls Industries, 

Inc. Group Benefits Plan 

Employer: 


Number (EIN): 





Process: 




90-0607005 


Insured 



Insured by: 















ValueOptions 

340 Golden Shore Avenue 

Beach, CA 90802 

ValueOptions 

340 Golden Shore Avenue 

Long Beach, CA 90802 

(800) 982-8161 


Huntington Ingalls Industries, Inc. pays the premiums. 


April 2011 

-45-

Contact Information: Target Benefit Plan 

Plan Sponsor/Employer 

Plan Sponsor/Employer EIN 90-0607005 



Plan Number 112 

Plan Name 



Process 

Plan Trustee 





Defined contribution pension plan 

Under a trust 

Plan Year End December 31 

Source of Contributions 


Operations Pension Plan for Employees Covered by the 

United Steelworkers, Local 8888, Collective Bargaining 

Agreement 


Huntington Ingalls Industries,Inc. Newport News 

Operations Target Benefit Plan for Employees Covered by 

the United Steelworkers, Local 8888, Collective 

Bargaining Agreement 

Northrop Grumman Corporation 



Corporate Secretary 




Service of process may also be made to the plan trustee or 

the plan administrator. 

Wells Fargo 

1021 East Cary Street, 6th Floor 


Contributions are made by Huntington Ingalls Industries, 

Inc. Newport News Operations. No employee contributions 

are permitted. 

Contact Information: Pension Plan 




April 2011 

-46-








Process 





Defined benefit pension plan 

Under a trust 




Operations Pension Plan for Employees Covered by 


Agreement 



Operations Pension Plan for Employees Covered by 


Agreement 


1840 Century Park East 

Los Angeles, CA 90067 







State Street Bank and Trust Company 

Master Trust Client Services 

One Enterprise Drive - W6C 

North Quincy, MA 02171 

Contributions are made by Huntington Ingalls Industries, 

Inc. Newport News Operations. No employee contributions 

are permitted. 

Contact Information: Cash Balance and Pension Earnings Plan 







April 2011 

-47-








Process 


Defined benefit pension plan 

Under a trust 




Operations Cash Balance and Pension Earnings Plan for 

Employees Covered by United Steelworkers, Local 8888 




Operations Cash Balance and Pension Earnings Plan for 

Employees Covered by United Steelworkers , Local 8888 











State Street Bank and Trust Company 

Master Trust Client Services 

One Enterprise Drive - W6C 

North Quincy, MA 02171 

Contributions are made Huntington Ingalls Industries, Inc. 

Newport News Operations. No employee contributions are 

permitted. 

Contact Information: Savings (401(k)) Plan 

Plan Sponsor/Employer: 


EIN: 


Type of Funding: 




90-0607005 

401(k) 

Under a Trust 


April 2011 

-48-

Plan Number: 107 

Plan Name: 



Process: 

Plan Trustee: 

Plan Year End: December 31 

Sources of Contributions: 














Service of process may also be made to the plan trustee or the 

plan administrator. 

Wells Fargo 

1021 East Cary Street, 6 th Floor 



and participant contributions 


April 2011 

-49-

Contact Information: Medicare Reimbursement Plan 

Plan Name: 

Employer: 


Number (EIN): 





Process: 

Benefit Plan Year: 




Medicare Premium Reimbursement Program for Huntington 

Ingalls Industries, Inc. Newport News Operations Hourly 

Retirees and their Eligible Spouses; 


Industries, Inc. Retiree Welfare Benefits Plan 





90-0607005 

Welfare Benefit Plan 

Self-insured and self-administered 












January – December 


Industries, Inc. Retiree Welfare Benefits Plan; plan 502 

. 


P.O. Box 563912 


1-877-216-3222 



April 2011 

-50-

Contact Information: Retiree Prescription Drug Plan 



Operations Retiree Prescription Drug Plan for Retirees 

Formerly Covered by United Steelworkers, Local 8888 

Collective Bargaining Agreement; 


Industries, Inc. Retiree Welfare Benefits Plan 

Employer: 


Number (EIN): 





Process: 





90-0607005 


Self Insured 















Industries, Inc. Retiree Welfare Benefits Plan; plan 502 


Express Scripts 

P.O. Box 66773 

St. Louis, MO 63166-6773 


Huntington Ingalls Industries, Inc. and participant 

contributions 


April 2011 

-51-

Contact Information: Group Legal Plan 



Group Legal Plan for Employees Covered by United 

Steelworkers, Local 8888 Collective Bargaining Agreement 



Employer: 


Number (EIN): 





Process: 




90-0607005 

Group legal plan 

Fully insured 












Insured by: 














April 2011 

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HII Newport News Operations Summary Plan ... - Benefits Connect

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