The Value of a Great Match
If someone offered you $1,000 with no strings attached, would you take it? If you’re not receiving the full company match available to you under the Savings Plan, it’s like saying “no” to that free money.
Company matching contributions are based on your Savings Plan sub-plan and the percentage of your eligible compensation that you contribute to the Savings Plan each pay period. To receive the maximum available company matching contribution, you must contribute enough to qualify each pay period. For example, if you participate in sub-plan A, you must contribute 8% of your pay each pay period to receive the maximum 4% company matching contribution. If you’re not investing enough to receive the full company match, you could be missing out on one of the best investment opportunities available.
Assume your eligible compensation is $50,000 and you are eligible for sub-plan A. The chart below describes your company matching contributions, based on how much you contribute.
Company matching contributions are available only to eligible participants. See the Savings Plan Summary Plan Description for more information about eligibility and contribution amounts. Contributions are subject to annual IRS dollar limits.
Just like the money you contribute into the Savings Plan from your eligible compensation, you have complete investment control over any company matching contributions you receive, and may invest them in the Retirement Path portfolios, core investment funds, or the Schwab Personal Choice Retirement Account® (PCRA).
Remember, if you do not take full advantage of the company match available to you, you are essentially leaving money on the table. Log on to My Benefits Access and access the “Enrollment” page to increase your contribution rate or sign up for “contribution rate escalation”— an option that enables you to automatically increase your future contribution rate. You decide how much you want your contribution rate to increase each year (in 1% increments) and establish a target contribution rate of up to 25%.
This Investment Center includes links to tools and information provided by organizations that are not associated or affiliated with Northrop Grumman. The tools and information provided by these organizations are not the property of Northrop Grumman, and Northrop Grumman is not responsible for their accuracy, completeness, or continued availability. You are solely responsible for the investment and asset allocation decisions you make pertaining to your personal savings and investments, including investments in the Northrop Grumman Savings Plan, Financial Security and Savings Program, and any other savings plans sponsored by Northrop Grumman