NOC » Topics » Pension Plans

This excerpt taken from the NOC DEF 14A filed Apr 12, 2006.

Pension Plans

The individuals named in the Summary Compensation Table (“Executives”) participate in the Northrop Grumman Pension Plan (“NG Pension Plan”). Each of the Executives also participates in the Northrop Grumman ERISA Supplemental Plan (“ERISA 1”), and the Northrop Grumman Supplemental Program 2 (“ERISA 2”). The NG Pension Plan is a plan qualified under Internal Revenue Code (“Code”) section 401. ERISA 1 is a nonqualified plan which provides benefits in excess of the Code section 415 limit and ERISA 2 is a nonqualified plan which provides benefits in excess of the Code section 401(a)(17) limit.

Each of the Executives also participates in the CPC Supplemental Executive Retirement Program (“CPC SERP”). Dr. Sugar also actively participates in the Supplemental Retirement Income Program for Senior Executives (“SRI”). In addition, as explained below, Dr. Sugar, Mr. Iorizzo, and Dr. Winter each have certain frozen plan benefits.

Except as otherwise provided, the amount of the Executives’ pension benefits are calculated below by projecting the Executives’ service and compensation forward to normal retirement age under the plans. For the Executives, compensation will be projected assuming that their annual base salary will increase at an annual rate of 4%. In addition, annual bonuses will be assumed equal to the target amount of 120% for Dr. Sugar, 60% for Mr. Terry, and 70% for the other Executives. Under each of the plans identified below, normal retirement age is age 65.

This excerpt taken from the NOC DEF 14A filed Apr 12, 2005.

Pension Plans

 

The individuals named in the Summary Compensation Table (“Executives”) participate in the Northrop Grumman Pension Plan (“NG Pension Plan”). Each of the Executives, except Mr. Noski, also participate in the Northrop Grumman ERISA Supplemental Plan (“ERISA 1”), and the Northrop Grumman Supplemental Program 2 (“ERISA 2”). The NG Pension Plan is a plan qualified under Internal Revenue Code (“Code”) section 401. ERISA 1 is a nonqualified plan which provides benefits in excess of the Code section 415 limit and ERISA 2 is a nonqualified plan which provides benefits in excess of the Code section 401(a)(17) limit.

 

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Each of the Executives, except Mr. Noski, also participates in the CPC Supplemental Executive Retirement Program (“CPC SERP”). Dr. Sugar also actively participates in the Supplemental Retirement Income Program for Senior Executives (“SRI”). In addition, as explained below, Dr. Sugar, Mr. Iorizzo, and Dr. Winter each have certain frozen plan benefits.

 

Mr. Noski participates in the NG Pension Plan and the Charles H. Noski Executive Retirement Plan. As a result of Mr. Noski’s termination of employment effective March 4, 2005, he will vest in neither plan and receive no Company pension benefits.

 

Except as otherwise provided, the amount of the Executives’ pension benefits are calculated below by projecting the Executives’ service and compensation forward to normal retirement age under the plans. With the exception of Dr. Sugar, the Executives’ compensation will be projected assuming that their annual base salary will increase at an annual rate of 4% and that they will receive annual bonuses equal to the target amount of 50% of annual base salary. Dr. Sugar’s annual base salary will also be projected to increase at an annual rate of 4%, but the projections assume annual bonuses equal to the target amount of 100% of annual base salary. Under each of the plans identified below, normal retirement age is age 65.

 

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