Friday, May 16, 2008

Northrop Grumman Closing Pension Plan

Northrop Grumman will stop offering its cash balance plan to new employees (generally effective 7/1/2008) but instead is moving them into an existing defined contribution plan with a matching contribution. New employees will receive an automatic company contribution of 3% to 5% of base pay per pay period based on age to a retirement account in the Northrop Grumman Savings Plan. Existing employees still have the cash balance plan, but the company is decreasing the pay-based credit component of the payout formula depending on the employee’s age.

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