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Heritage TRW 
Lump Sum Discount Rates for Retirements

The 30-year U.S. Treasury interest rate is used as the discount rate in the calculation of the lump sum payment option (Part A only) for the Northrop Grumman Space & Mission Systems Corp. Salaried Pension Plan (legacy TRW).

For retirement dates (benefit commencement dates) on April 1, 2008 through March 1, 2009, the discount rate used is the average rate for the month either three or four months prior to the particpant's retirement date that provides a larger lump sum amount (the lower the rate the larger the lump sum amount).

For example:

January 2008 - the average for the month was 4.33%
December 2007 - the average for the month was 4.53%
Therefore, the interest rate used for retirement dates as of April 1, 2008 is 4.33%.

For retirement dates on or after April 1, 2009, this lump sum discount rate will be the average interest rate for the month four months prior to the participant's retirement date.

If you terminate employment by
and retire effective ...
The applicable 30-year
Treasury Rate is ...
December 1, 2009     4.37%
November 1, 2009 4.41%
October 1, 2009 4.52%
September 1, 2009 4.23%
August 1, 2009 3.76%
July 1, 2009 3.64%
June 1, 2009 3.59%
May 1, 2009 3.13%
April 1, 2009     2.87%
March 1, 2009 2.87%
February 1, 2009         4.00%
January 1, 2009 4.17%
December 1, 2008     4.27%
November 1, 2008     4.50%
October 1, 2008             4.57%
September 1, 2008         4.60%
August 1, 2008             4.44%
July 1, 2008             4.39%
June 1, 2008                             4.39%
May 1, 2008 4.33%
April 1, 2008 4.33%
March 1, 2008 4.53%
February 1, 2008 4.52%
January 1, 2008 4.77%

Calculating the Lump Sum Benefit (Part A)

The lump sum amount of the Northrop Grumman Space & Mission Systems Corp. Salaried Pension Plan benefit (Part A only) depends on the participant’s age at retirement, the interest rate used and a mortality table.

The participant’s monthly life only benefit is multiplied by an actuarial present value factor based on his/her age, the applicable discount rate (described above), and a group mortality table published by the Internal Revenue Code (section 417 (e)(3)(A)(i)(1)), which currently is the unisex 1994 Group Annuity Table.

Questions?
Call the Northrop Grumman Benefits Center (NGBC) at:
 
1-800-894-4194 
International:  718-354-1338
 
Monday - Friday
9:00 a.m. - 6:00 p.m. ET
 
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