NHO 2011-2012 Main - Benefits Online - Northrop Grumman ...

Welcome to Northrop GrummanNew Hire Benefits Orientation

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 child(ren) under age 26– Your unmarried child(ren) of any age who aredisabled– Your same-sex or opposite-sex domestic partner andhis or her eligible dependent child(ren) who areunder age 19 (or under age 25 if full-time students)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/Domestic Partner– You + Child(ren)– You + Family• You must make your choices by the deadline shown on your NewHire Logon 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, 2011 — June 30, 2012– You cannot make changes until the next enrollment period (May2012) 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)For more details, and to access comparison charts for all plans, go toBenefits OnLine at http://benefits.northropgrumman.com7

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

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 Scripts9

Prescription Drug Coverage in the AnthemPPO and Anthem EPO OptionsYour cost varies depending on the type of prescription drug you purchaseType of Drug Network Retail Pharmacy(30-day supply)Mail Service Pharmacy(up to 90-day supply)Generic$5 copay or 10% coinsurance,whichever is greaterPreferred Brand $20 copay or 10%coinsurance, whichever isgreaterBrand $40 copay or 10%coinsurance, whichever isgreater$10 copay or 10%coinsurance, whicheveris greater$40 copay or 10%coinsurance, whicheveris greater$80 copay or 10%coinsurance, whicheveris greaterOut-of-network pharmacy coverage under the PPO only: 50% of the eligible cost.The annual out-of-pocket maximum for prescription drugs is:• In the PPO – $2,000/individual and $4,000/family• In the EPO – $1,500/individual and $3,000/family10

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.11

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% of covered services(e.g. medical, prescription drugs)when funds are available• 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 year12

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 maximum allowed amount for providers who donot participate in the Anthem Network$4,200 $6,300 $6,300 $8,400Mental Health/Substance Abuse and prescription drug benefitsare covered under the plan.13

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 Access14

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.15

TRICARE Supplement• Available through ASI Corporation to full-time active or retiredmilitary, and their eligible dependents, who are eligible forand enrolled in TRICARE• You pay the full cost of this coverage through pre-tax payrolldeductions• Northrop Grumman provides limited administrative andrecordkeeping services by collecting the premiums throughcafeteria plan payroll deductions and forwarding the paymentsto ASI• Northrop Grumman Corporation will not receive anycompensation, direct or indirect, for offering theseadministrative and recordkeeping services• For additional information on the benefits provided by the ASITRICARE Supplement go to http://www.asicorporation.comNeither Northrop Grumman Corporation nor the Northrop GrummanHealth Plan endorses, recommends, or sponsors the TRICARESupplement16

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 costContact Best Doctors at 1-866-904-0910 oronline at http://www.bestdoctors.com/members.aspx17

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 optionAdditional information and registration isavailable by calling 1-866-784-845418

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) OptionsDescriptionMaximum AnnualContributionHealthCare FSADependentDay Care FSA– 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 basis– 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$5,000*You should consult www.benesyst.net for a complete list of eligible expenses*If you earn $110,000 or more, your annual contribution limit to the Dependent Care FSA is $3,500.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, 2012and file them by December 31, 2012), so estimate your expenses carefully!23

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.24

Pharmacy Benefits Card for Health Care FSA• Health Care FSA participants will receive a Pharmacy BenefitsCard to be used for prescription (retail and mail-order) andeligible over-the-counter (OTC) purchases– The card cannot be used for the purchase of any OTC drugs,whether or not you have a prescription.• Any eligible items or co-pays will be automatically charged toyour FSA account (as long as there is a sufficient 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 participating merchants25

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 units26

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 deductions27

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 carrier28

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 deductions29

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 NGBC30

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: 622001031

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®33

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 plan34

2011 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 2011 to beeligible to make catch-up contributions in 2011.35

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 stage36

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 than4,000 mutual fundsand individualsecurities (e.g., stocksand bonds)37

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)38

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 cycle40

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 disabled41

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 savedNeed Benefits Assistance?• 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.43

Benefits OnLinehttp://benefits.northropgrumman.com44

New Hire Enrollment Page45

My Benefits Access Log On46

My Benefits Access -Registration as a New User47

My Benefits Access – Welcome Screen48

My Benefits Access – Enrollment Steps49

My Benefits Access – Adding a dependent

My Benefits Access – Enrolling in Your Benefits51

My Benefits Access – Enrolling in Medical Example

My Benefits Access – Reviewing yourdependent coverage

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 Plan54

Questions?55