Part A Supplement to the Northrop Grumman ... - Benefits Online

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Northrop Grumman Retirement PlanPart A Benefit DescriptionJanuary 2008Deferred Vested BenefitsEligibility for Deferred Vested BenefitsYou are eligible to receive a deferred vested benefit if you terminate employment with avested benefit before normal retirement age and do not meet the eligibility requirements forearly retirement at that time. If you have less than 10 years of vesting service, you can beginreceiving your deferred vested benefit when you reach normal retirement age (age 65). Yourbenefit will be calculated as a normal retirement benefit.You may begin receiving your deferred vested benefit in a reduced amount as early as age55 if you have at least 10 years of vesting service (see the table below for reductionamounts).You must commence your benefit no later than April 1 following the year in which you reachage 70½.Benefit Amount for Deferred Vested BenefitsDepending on when you elect to have your benefit payments begin, your benefit will becalculated as follows:• Benefit at or after age 65 — If you begin payments at or after age 65, your Part Adeferred vested benefit is calculated as a normal retirement benefit.• Benefit between ages 55 and 65 — If you elect to begin payments between ages 55and 65, your Part A deferred vested benefit will be a percentage of the normal retirementbenefit based on the table below.Age on benefitcommencementdatePercentage of yournormal retirementbenefit you will receive65 100%64 92%63 85%62 78%61 72%60 67%59 62%58 57%57 53%56 49%55 46%The table is shown in percentagesfor whole ages. Partial years will beprorated in years and months.Deferred Vested Benefit ExamplesSee the examples that follow. Although these illustrations use full years of age and service,your retirement benefit will be based on your actual years and months of age and service atthe time of your retirement. These examples are based on the “straight life annuity” form ofpayment.19
Northrop Grumman Retirement PlanPart A Benefit DescriptionJanuary 2008Example A ⎯ Deferred Vested BenefitLet’s assume you elect to begin payments at age 65. Also assume your Part A annualnormal retirement benefit is $10,500.21. The Part A deferred vested benefit you receive atage 65 is unreduced, as shown below:• $10,500.21 X 100% (deferred vested reduction) = $10,500.21To determine your monthly benefit, divide your annual benefit by 12.Example B ⎯ Deferred Vested BenefitLet’s assume you elect to begin payments at age 60. Also assume your Part A annualnormal retirement benefit is $10,500.21. Your Part A deferred vested benefit is determinedas follows:• $10,500.21 X 67% (deferred vested reduction) = $7,035.14To determine your monthly benefit, divide your annual benefit by 12.20
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