Both plans offer a number of similar payment options. However there are a few differences. The table below shows the different options under which you can receive each part of your benefit.

In the future, Northrop Grumman expects to be able to provide you with an estimate of your pension benefits — including the cash balance portion of your benefit, your historical SPP benefit, and any pension benefit accrued under a prior pension plan that merged with the SPP. You will receive more information as this service becomes available.

As required by law, the SPP currently uses the government’s 30-year Treasury rate. Even though 30-year Treasury Bonds are no longer issued, the government continues to publish 30-year Treasury rates. You can find 30-year Treasury rates posted here.

Congress and the Department of Treasury are considering replacing the 30-year Treasury rate for purposes of calculating pension plan lump sums. We will communicate any required rate change to participants as soon as the government announces its decision.

When you become eligible to receive your pension benefits and request that benefit payments begin, the total lump sum value of all of your pension benefits from a single pension plan (Part A, Part B or C, and Part D) will be calculated. If the total lump sum value is $5,000 or less, it will be paid to you in a single lump sum.

However, if you have benefits under more than one pension plan, each plan benefit is considered separately for determining the $5,000 automatic lump sum distribution.

Keep in mind that you are not changing pension plans on January 1, 2005. Your current pension plan is being amended to adopt the features of the Northrop Grumman Pension Program.