NHO with RAC eff 010110 - Benefits Online

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NHO with RAC eff 010110 - Benefits Online

Welcome to Northrop GrummanNew Hire Benefits Orientation

Today’s Agenda• Northrop Grumman Health Plan• Northrop Grumman Savings Plan• Enrollment• Questions2

Northrop Grumman Health Plan OverviewBasic benefits• Basic Life• Basic Accidental Deathand Dismemberment(AD&D)• Basic Long-TermDisability (LTD)*• Employee AssistanceProgram (EAP)Optional benefits• Medical• Dental• Vision• Optional LTD• Optional life insurance(employee, spouse,children)• Optional AD&D insurance(employee, family)• Flexible Spending Accounts(FSAs)• Group LegalYou mustenroll toselect thesebenefits* 100% paid by some business units3

Who Is Eligible?• Most employees who regularly work 20 or morehours per week• Eligible dependents– Your spouse– Your unmarried child(ren) under age 19 (or underage 25 if full-time students)– Your unmarried child(ren) of any age who aredisabled– Your same-sex or opposite-sex domestic partner andhis or her eligible dependent child(ren)4

If Your Spouse or Domestic Partner Works• For Northrop Grumman:– One of you can enroll as an employee, the other as a dependentOR– Both of you can enroll separately as an employee• Employees may cover one another for spouse life insurance• Only one of you can enroll your eligible dependent childrenin each type of coverage (medical, dental, vision, life, AD&D)• For another employer:– If your spouse or domestic partner’s employer offers medical coverageand pays at least 50% of the cost of the plan, your spouse or domesticpartner must enroll in his/her employer’s medical plan during theirnext annual enrollment to be eligible to enroll in medical coveragethrough the Northrop Grumman Health Plan– If your spouse’s or domestic partner’s employer subsidizes less than50%, he/she is eligible to enroll in medical coverage through theNorthrop Grumman Health Plan without enrolling in his/her employer’splan5

How the Plan Works• You choose the coverage that best meets your needs• Coverage levels for medical, dental, vision– You only– You + spouse– You + child(ren)– You + family• You must make your choices by the deadline shown on yourenrollment letter (within 31 days of your hire date)• Your choices remain in effect for the entire benefit plan year, aslong as you are eligible, July 1, 2010 — June 30, 2011– You cannot make changes until the next enrollment period (May2011) unless you have a qualified life event (e.g., marriage orbirth of a child)– Changes made during Annual Enrollment are effective July 16

Medical Plan Options• Anthem Blue Cross Preferred ProviderOrganization (PPO)• Anthem Exclusive Provider Organization (EPO)• Anthem Consumer-Driven Health Plan (CDHP)• Health Maintenance Organization (HMO) options– Available in some areas only• Aetna Global Benefits (overseas employees)7

Anthem Blue Cross Preferred PPO Option• The PPO option is available in all U.S. locations• You can go to any doctor or hospital– You pay less when you utilize a provider in theAnthem PPO network– You do not need to select a Primary Care Physician(PCP)• Prescription drug coverage through Express Scripts– Network includes most major pharmacy chains– Exclusive Home Delivery Program for long-termmaintenance medications, up to a 90-day supplydelivered to your home– Customer service line available 24/78

The Anthem Blue Cross Preferred PPO OptionBenefit planyeardeductibleOffice visitcopayIn-network$500 perindividual/$1,000 perfamily$20 (specialistvisit: $40)Preferred PPOCoinsurance 10% 40%Benefit planyear out-ofpocketmaximum$3,000 perindividual/$6,000 perfamilyOut-ofnetwork$800 perindividual/$1,600 perfamily40%coinsurance$5,000 perindividual/$10,000 perfamilyFor more details, and to accesscomparison charts for all plans, go toBenefits OnLine athttp://benefits.northropgrumman.com9

Anthem EPO• The Anthem EPO utilizes the same network ofproviders as the Anthem PPO– You do not need to select a primary care physician,nor obtain referrals, but must utilize the Anthemnetwork of providers to receive coverage – there areno out-of-network benefits• No deductibles• Approved charges are covered at 100%, afteryou pay the applicable copay• Prescription drug coverage is provided throughExpress Scripts10

NOVEMBER 2011VILLAGE NEWSFrankfort Public Library Hosts Winter EventsBy Nicole Suarez, Reference LibrarianWoody Allen as a neuroticcomedian and Diane Keaton as hison again off again girlfriend, AnnieHall.Library personnel enact a scene from last year’s Fairy Tale Trail event,“Treasure Quest with Peter Pan.”There are exciting programs andannouncements this winter fromthe Frankfort Public Library! TheLincoln-Way East Madrigal Singersreturn to the library on Monday,November 28. Please join us for afestive evening of holiday musicand cheer.The Reference Department of theFrankfort Library is excited to hosta new Winter Film discussionseries for adults featuring past andpresent Oscar winners. Afterviewing the film, a discussion willbe led by film critic Josh Larsen,formerly a movie reviewer for theSun-Times Media Corporation. TheWinter Film series will take placeafter the library closes one Fridayper month and kicks off on Friday,December 16, at 6:30 p.m. Take abreak from the hectic holidayseason and join us for lightrefreshments and a discussion ofan award winning film starringFrankfort Kindle owners havebeen clamoring for a chance totry out Media on Demand, thedownloadable e-book serviceavailable to all Frankfort librarycardholders. As of September,Kindles became compatible withthis popular service. Visitwww.frankfortlibrary.org orwww.mediaondemand.org todownload ebooks and audiobookstoday.The Youth Services department hasannounced the date for theirannual premier event, The FairyTale Trail. The interactive storytour will take place on Friday, April13, 2012, to coincide with SpringBreak. We’ve had pirates,princesses, and runawaygingerbread men...who will youencounter on the 2012 Fairy TaleTrail? ■Keep the Wreath RedAs the holiday season begins, you will notice a large holiday wreath on thefront of each of our fire stations. Each of the wreaths will be decorated withlarge red bulbs that will be illuminated during the holiday season. Should afire occur during the holiday season that is determined to have been directlycaused by a holiday decoration, a white bulb will replace a red bulb. Thiswill happen every time there is a holiday decoration caused fire.The idea is for the residents of the Frankfort Fire Protection District to beexceptionally safety conscious during the holiday season. From all of us toall of you, a safe and happy holiday season. ■11

Prescription Drug Coverage:Anthem PPO and Anthem EPO Options• Generics preferred:– Your prescriptions automatically will be filled with a chemically equivalentgeneric drug, if available and as appropriate.– If you or your doctor requests a brand-name drug when a genericequivalent is available, you will pay your copayment, plus the differencein cost between the generic drug and the brand-name drug.• Exclusive Home Delivery Program:– If you take a maintenance prescription drug to treat an ongoing medicalcondition, you must fill your prescription using the mail-order service.• In order to allow for time to set up the mail-order service, new prescriptionsmay initially be filled 2 times at a retail pharmacy.– You will receive up to a three–month supply of your prescription drug,typically for less than you would pay for the same amount of your drugat a retail pharmacy, and your medication is delivered to you.• Step Therapy– Designed to promote the use of lower-cost, and equally effective, genericdrugs before participants “step up” to higher-cost brand name drugs.– Designed for people who take maintenance prescription drugs on a regularbasis to treat an ongoing medical condition.– Step Therapy will apply even if your doctor writes “Dispense as Written” onyour prescription.12

Anthem CDHP OptionThe Anthem CDHP ProgramPreventiveCare• 100% coveragefor nationallyrecommendedservices• No deductionsfrom the HRAPreventive Care 100% CoverageHealthReimbursementAccountTraditionalHealthCoverage• Benefit plan year allocation fromNorthrop Grumman• Plan pays 100% when funds areavailable• Use it on HRA ExtrasBridge • Employee’s responsibility if expensesexceed the benefit plan year HRAallocation• Paid only as expenses are incurred• Can be reduced or eliminated by HRArollover• Additional protection covers theservices allowed by NorthropGrumman• You pay coinsurance for coveredservices• 100% coverage once out-of-pocketmaximum is met for the plan year13

Anthem CDHP Plan Year AmountsNote: HRA and Bridge amountsmay be prorated if youparticipate for less than the fullplan yearEmployeeEmployee +SpouseEmployee+Child(ren)FamilyPreventive Care 100%Health ReimbursementAccount (HRA)BridgeTraditionalHealth CoverageCoinsurance out-ofpocketmaximum$1,000 $1,500 $1,500 $2,000$800 $1,200 $1,200 $1,60090% covered for providers who participate in theAnthem network60% of R&C for providers who do not participate in theAnthem Network$4,200 $6,300 $6,300 $8,400Mental Health/Substance Abuse and prescription drug benefitsare covered under the plan.14

HMO Options• HMO medical plan options– In most plans, you and your covered family membersselect a primary care provider (PCP) to coordinate care– You access services from HMO providers only (except inan emergency)– When you access covered services, you pay a copay,and the plan pays the rest — there is no deductible• HMO availability varies by state and/or ZIP code– If an HMO is available in your area it will be listed as amedical plan option on your enrollment worksheet• HMO benefits summaries are available onlinethrough Benefits OnLine and My Benefits Access15

Aetna Global Benefits• Available only for employees located overseas• Dental coverage is included (no separateelection needed)• Offers coverage both overseas as well aswithin the U.S.• Coverage offered is based on whether serviceswere incurred overseas or within U.S:– Overseas– In-network within U.S.– Out-of-network within U.S.– Out-of-area within U.S.16

Best Doctors• Provides you with the opportunity to have a worldrenowneddoctor review your medical case andensure you have the right diagnosis• Available to employees and their covereddependents who are enrolled in a medical planthrough the Northrop Grumman Health Plan• Included in the cost of your health plan – you donot pay any additional cost17

Tobacco Cessation Program –Quit for Life• Personalized quit program• Confidential phone based treatment sessions• Delivery of recommended nicotinereplacement products (e.g. the patch, gum)• Available, at no cost, to employees and theirdependents over the age of 18 enrolled in aNorthrop Grumman medical plan option18

Employee Assistance Program (EAP)Work/Life Solutions• Confidential counseling, support and resources, at no cost, forall Northrop Grumman employees and their eligible familymembers• Designed to help with personal and work-related issues• Work/Life benefits include information, resources and referralsfor child and elder care, adoption assistance, relocationinformation and much more• Provides 8 free sessions, (per person per issue per plan year),with a licensed clinician who is close to work or home1-800-982-816124 hrs a day, 7 days a week19

Dental Plan Options• Three Delta Dental Preferred Provider Organization(PPO) Plan Options– Dental Care Plan Option– Dental Care Plus Plan Option (includes orthodontia)– Preventive Care Plan Option• CIGNA Dental Health Maintenance Organization(DHMO) Option (in some areas)– You must select a CIGNA DHMO primary dentist– No coverage if you access care without a referralfrom your CIGNA DHMO primary dentist– You pay a copay and the plan pays the rest– Includes orthodontia20

Comparing the Delta Dental PPO Plan OptionsDental Care Dental Care Plus Preventive CareDeductiblePlan Year Maximum(per person)$50/$100 Preferred$100/$200 Premier$150/$250 Out-of-Network$1,500 Preferred$1,250 Premier$1,000 Out-of-network$50/$100 Preferred$100/$200 Premier$150/$250 Out-of-Network$2,000 Preferred$1,500 Premier$1,000 Out-of-network$0(in- and out-of-network)$500(in- and out-of-network)CoveragePreventive 100% 100% 100%BasicRestorative80% Preferred75% Premier70% Out-of-network80% Preferred75% Premier70% Out-networkNot coveredMajor50% 50% Not coveredRestorativeOrthodontia Not covered 50% up to a lifetimemaximum of $2,000Not covered21

Vision Plan Option• Northrop Grumman Vision Plan– Administered by Vision Service Plan (VSP)– You can see any vision provider, but will save money whenyou visit a provider in the VSP network• In-network coverage includes:– Exams and lenses each benefit plan year ($10 copay)– Frames every two benefit plan years ($10 copay)• Plan pays up to $120– Contact lenses (instead of eyeglasses) every benefit planyear• Plan pays up to $105• Includes disposable lenses22

Flexible Spending Account (FSA)OptionsHealthCare FSADescription– Allows you to set aside pre-taxmoney to pay for eligible health careexpenses (e.g. deductibles,copays, coinsurance, orthodonticsand some over-the-counter supplies)– Elections are made on an annual basisMaximum AnnualContribution$5,000DependentDay Care FSA– You can set aside pre-tax dollars fromyour paycheck to pay for eligibledependent day care expenses– Elections are made on an annual basis$5,000**If you earn $105,000 or more, your annual contribution limit to the Dependent Care FSA is $2,500.You must use all the dollars in your FSA accounts,or lose them at the end of the grace period (incur expenses by September 15, 2011and file them by December 31, 2011), so estimate your expenses carefully!23

Health Care FSAs and Over-the-Counter(OTC) Medications in 2011• Currently, Health Care FSAs reimburse participants for coveredOTC medications and supplies.• The recently enacted health care reform law prohibits healthcare flexible spending accounts from reimbursing for OTC drugexpenses for taxable years beginning after December 31, 2010.• The Northrop Grumman Health Care Flexible Spending Account(FSA) will not be permitted to reimburse for OTC drug expensesthat you incur on or after January 1, 2011, unless you have aprescription for the drug or the drug is insulin.• Eligible OTC supplies will continue to be a reimbursable expense• You should consult www.benesyst.net for a complete list ofeligible OTC expenses beginning January 1, 201124

Automatic FSA Claims Reimbursement• Your carriers will submit claims on your behalf if youcontribute to the Health Care FSA and enroll in:– Anthem PPO– Anthem EPO– Anthem CDHP– Delta Dental PPO• Benesyst (the FSA claims administrator) willautomatically reimburse you for eligible expenses suchas copays and deductibles through your health care FSA• You are automatically enrolled in this feature and mustcall the Northrop Grumman Benefits Center to opt out.25

Pharmacy Benefits Card for Health Care FSA• Health Care FSA participants will receive a PharmacyBenefits Card to be used for prescription (retail andmail-order) and eligible over-the-counter (OTC)purchases• Any eligible items or co-pays will be automaticallycharged to your FSA account (as long as there is asufficient balance)• If you utilize mail order service for delivery of yourprescriptions, be sure to provide your carrier with yourPharmacy Benefits Card account number• Visit www.benesyst.net for a list of participatingmerchants26

Long-Term Disability (LTD) Benefits• Basic LTD*– 50% of your monthly base salary• Optional LTD– Your options are:• Additional 10% for total coverage of 60% of yourmonthly base salary• Additional 20% for total coverage of 70% of yourmonthly base salary– No evidence of insurability (EOI) is required if youenroll when newly eligible• Maximum monthly benefit of $15,000 (reduced byany other disability income you receive)* 100% paid by some business units27

Life Insurance• Basic life– Greater of: 1 X your annual base salary or $50,000– Can limit to $50,000 to avoid imputed income– 100% company-paid• Optional life– You may choose to purchase additional coverage foryourself, your spouse/domestic partner, and your children• Employee: 1, 2, 3, 4, 5, 6, 7, or 8 x your base salary,up to $1.25 million• Spouse/domestic partner: 1, 2, 3, or 4 x your coverageamount, $25,000, $50,000 (up to a maximum of the lesser of 50%of your total coverage — basic and optional — or $500,000)• Child: $10,000, $20,000, or $30,000– You pay for coverage with after-tax payroll deductions28

Evidence of Insurability (EOI) forLife Insurance• No EOI required when you are first eligible, unlessyou:– Select optional employee life insurance coveragegreater than 5 x annual base pay or $600,000,whichever is less– Select optional spouse coverage greater than$50,000– Enroll after your initial eligibility period expires• If you are required to submit EOI, your additionalcoverage will not go into effect until the EOI isapproved by the carrier29

Accidental Death andDismemberment (AD&D) Insurance• Basic AD&D– Greater of $50,000 or 1 x your annual base salary– 100% company-paid• Optional AD&D– Employee only• You may purchase coverage from 1 up to 10 x your annual basesalary, up to a maximum of $1 million– Employee + family• You may purchase coverage from 1 up to 10 x your annual basesalary, up to a maximum of $1 million• Family coverage amounts vary depending on who’s covered– You pay for coverage with after-tax payroll deductions30

Beneficiary Designations• You must select a beneficiary for your life andAD&D insurance• Electing a beneficiary is easy and important– You can review and update your beneficiarydesignations on My Benefits Access available throughBenefits OnLine– If you do not have online access, you can designateyour beneficiary by calling the NGBC31

Group LegalHyatt Legal Plans• Two plan options — Advantage and Basic• Both plans provide coverage for legal services, such as:– Legal telephone advice and consultations– Document preparation– Personal injury– Will and Estate matters• For plan details visit www.legalplans.com and select“Thinking About Enrolling”– Password for the Basic Plan: 6210010– Password for the Advantage Plan: 622001032

Northrop Grumman Savings Plan

Northrop Grumman Savings PlanEmployee ContributionsInvestment options• You may contribute between 1%and 75% of eligible compensationin 1% increments• Tax-deferred , Roth 401(k) and/orafter-tax contributions• Age 50 catch-up contributions• If you are considered a highlycompensated employee, yourcontributions may be limited in asubsequent year• Retirement Path Portfolios• Core investment funds• Schwab Personal ChoiceRetirement Account®34

Northrop Grumman Savings PlanLoansOther features• Up to two loans at one time• Maximum of $50,000• Company match andcompany basic contributions(depending on businessunit)• 100% immediate vesting incompany-matching andbasic contributions• Optional automatic annualescalation of contributions• Incoming rollovers acceptedfrom a qualified plan35

2010 Savings Contribution LimitsYour Tax-Deferredand/or Roth 401(k)Contribution LimitLimit on TotalContributions (yourcontributions plusNorthrop Grumman’scontributions)If you are UnderAge 50Maximum of $16,500100% of annual pay or$49,000 or whichever isless*If you are age50 or olderAdditional $5,500 incatch-up contributions,for a maximum of up to$22,000100% of annual pay or$54,500 ($49,000 +$5,500 in catch-upcontributions),whichever is less* You must be at least 50 years old by the end of 2010 to beeligible to make catch-up contributions in 2010.36

Investment OptionsRetirement Path Portfolios• Five investment options– Target Retirement Path– 2020 Retirement Path– 2030 Retirement Path– 2040 Retirement Path– 2050 Retirement PathFor participants who are retiredor approaching retirementFor participants who arebeginning their careers• You select a portfolio based on your expectedretirement date (typically age 65)• Each portfolio is well diversified and designed to meetyour investment goals prior to and beyond retirement• As you get closer to your expected retirement date, theinvestment manager adjusts the portfolio mix tomaximize return for the level of risk appropriateat each life stage37

Investment Options (cont’d)Build and Monitor Your Own Portfolio• Core Investment Funds– Stable Value Fund– U.S. Fixed Income Fund– Balanced Fund– U.S. Equity Fund– International Equity Fund– Small Cap Fund– Emerging Markets Equity Fund– Northrop Grumman Fund• Schwab PersonalChoice RetirementAccount® (PCRA)– Self-directedbrokerage account– Invest among aselection of more than3,200 mutual fundsand individualsecurities (e.g., stocksand bonds)38

Automatic Enrollment• If you have not enrolled in the Northrop Grumman SavingsPlan within approximately 45 days of your date of hire, you willbe automatically enrolled at a contribution rate of 2%• Your contributions will be deducted on a tax-deferred basis andinvested in the Retirement Path portfolio that most closelytargets the year in which you will attain age 65• After you are enrolled, you may change your contribution rateand investment choices at any time• If you do not want to enroll at this time, log on to My BenefitsAccess or call the Northrop Grumman Benefits Center todecline enrollment• By declining, you may miss the benefit of receiving companymatching contributions (if applicable)39

Northrop Grumman Savings Plan ─Retirement Account Contribution

Retirement Account Contributions• Eligibility is based on your business unit and your pastemployment with Northrop Grumman (if applicable)• No enrollment is necessary and you contributenothing• Northrop Grumman’s contributions will be based onyour age at the end of the calendar year and youreligible compensation:– Less than age 35: 3%– Age 35 – 49: 4%– Age 50 and older: 5%• Contributions will be made with each pay cycle41

Retirement Account Contributions• You decide how your Retirement Account contributions will beinvested.– You may choose to invest these contributions in any of theRetirement Path portfolios, the core investment funds, or SchwabPersonal Choice Retirement Account® (PCRA).• Unless you change the investment direction, contributions willbe invested in the Retirement Path Portfolio that most closelytargets the year in which you will attain age 65• Contributions will be vested after three years of service• Beneficiary is the same as for the Savings Plan• Retirement Account contributions are not available for loans• You may only withdraw vested Retirement Account contributionswhen you– reach age 59 ½ or– after separation from employment or– become disabled42

Enrolling in Your Benefits

Enrollment Steps• Go to Benefits OnLine athttp://benefits.northropgrumman.com and click on the “NewHire Enrollment” link• Review highlights of the Northrop Grumman Benefits Program andenroll in the Health and Savings Plans through My Benefits Access• Print a confirmation statement once enrollment has beencompleted and savedNo Web Access?• Call the Northrop Grumman Benefits Center (NGBC) at1-800-894-4194 Monday through Friday, 9:00 a.m. to 6:00 p.m.Eastern time (excluding holidays)• Outside the United States call 718-354-1338• Hearing impaired participants will need to use a relay servicethrough service provider.44

Benefits OnLinehttp://benefits.northropgrumman.com45

New Hire Enrollment Page46

My Benefits Access Log On47

My Benefits Access -Registration as a New User48

My Benefits Access – Welcome Screen49

My Benefits Access – Enrollment Steps50

My Benefits Access – Enrolling in Your Benefits51

My Benefits Access – Enrolling in Medical Example52

Final Reminders• You must enroll in optional Health Plan benefits if youwant coverage for the benefit plan year– Enroll by the deadline shown on your enrollmentletter (within 31 days of date of hire)– Even if you do not want optional coverage, go onlineor call to elect “no coverage”– If you do not enroll, you will not have optionalbenefits for yourself or your family• Enroll in the Savings Plan– If you do not want to participate, you must declineenrollment• Elect your beneficiaries for basic and optional life andAD&D insurance, and for the Savings Plan53


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