Northrop Grumman Retirement Benefits: Complete Guide
Everything NGC employees and retirees need to know about pension, 401k, and retirement benefits.
Key Takeaways
- 1Northrop Grumman offers both defined benefit pension and 401k plans.
- 2The 401k plan includes company matching contributions.
- 3Pension benefits depend on your hire date and years of service.
- 4Retirees may have access to health insurance and other benefits.
- 5You can roll 401k to an IRA at retirement for more control.
- 6Legacy plans from TRW, Litton, and other acquisitions have different rules.
Northrop Grumman Pension Overview
NGC has transitioned pension offerings over the years:
- **Traditional pension:** Available to employees hired before certain dates
- **Cash balance plan:** Newer employees may have this hybrid plan
- **Frozen pension:** Some legacy plans are frozen (no new accruals)
- **Calculation:** Based on years of service, final average salary, and formula
- **Vesting:** Typically 3-5 years for pension benefits
Check Your Specific Plan
Your pension benefits depend heavily on your hire date, location, and which NGC division you work for. Review your personal benefits statement for exact details.
NGC 401k Savings Plan
The NGC 401k plan offers solid benefits:
- **Maximize the match:** Always contribute enough to get full company match
- **Review investments:** Default may not be optimal for your situation
- **After-tax contributions:** Check if mega backdoor Roth is available
| Feature | Details |
|---|---|
| Employee contribution limit | $23,500 in 2026 ($31,000 if 50+) |
| Company match | Varies by plan; often 4-6% of salary |
| Vesting | Company match typically vests over 3 years |
| Investment options | Multiple funds including target-date, index funds |
| Roth option | Roth 401k contributions available |
| Loans | 401k loans permitted per plan rules |
Retiree Benefits
NGC offers various benefits to qualifying retirees:
- **Retiree medical:** Available to those who meet age/service requirements
- **Pre-65 bridge:** Coverage until Medicare eligibility
- **Medicare supplement:** Options for those 65+
- **Life insurance:** Continued coverage may be available
- **Requirements vary:** Check your specific eligibility based on hire date
Benefits Can Change
Retiree benefits aren't guaranteed for life. Companies can modify or eliminate them. Don't rely solely on company benefits for healthcare planning.
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Rollover Options at Retirement
When you leave or retire, you have choices:
- **Pension:** Usually take as monthly payments; some plans offer lump sum
- **401k options:** Leave in plan, roll to IRA, or roll to new employer plan
- **IRA rollover benefits:** More investment choices, potentially lower fees
- **Gold IRA option:** Roll portion to precious metals for diversification
- **Partial rollover:** Can roll some to IRA, keep some in NGC plan
| Option | Pros | Cons |
|---|---|---|
| Leave in NGC plan | Familiar, no action needed | Limited investment options |
| Roll to Traditional IRA | More investment choices | Lose Rule of 55 access |
| Roll to Gold IRA | Physical asset protection | Storage fees apply |
| Roll to new employer | Consolidation, loan option | Depends on new plan quality |
Legacy Acquisition Plans
NGC has acquired many companies, each with unique plans:
- **TRW employees:** Merged plans may have different calculation methods
- **Litton Industries:** Legacy pension rules may apply
- **Orbital ATK:** Recent acquisition with transition provisions
- **Different vesting:** Legacy plans may have different vesting schedules
- **Contact HR:** For legacy plan specifics, contact NGC benefits directly
Verify Your Benefits Before Retirement
Get an official benefits statement 1-2 years before planned retirement. Verify pension calculation, healthcare eligibility, and 401k balance. Errors happen and are easier to fix before you leave.
Diversify Your NGC Retirement
NGC employees often have significant retirement assets. Consider diversification:
- Roll portion of 401k to Gold IRA at retirement
- Physical gold balances defense industry stock concentration
- Protect against market volatility as you near retirement
- Tax-free rollover maintains your tax-advantaged status
- You control the assets independent of NGC
Frequently Asked Questions
1When can I retire from Northrop Grumman?
Retirement eligibility depends on your specific plan and age/service requirements. Common thresholds are age 55 with 10+ years service, age 62, or "Rule of 85" (age + years = 85). Check your benefits portal for your specific eligibility.
2Can I take my NGC pension as a lump sum?
Some NGC pension plans offer lump sum options; others don't. If available, you can typically choose between monthly payments or lump sum at retirement. Contact NGC Benefits for your specific plan's options.
3What happens to my 401k if I leave before retirement?
Your 401k balance is yours regardless of when you leave (though company match may have vesting requirements). You can leave it in the NGC plan, roll to an IRA, or roll to a new employer's plan.
4Does NGC offer retiree health insurance?
NGC offers retiree medical benefits to qualifying employees, but eligibility requirements vary by hire date and years of service. Those hired more recently may not qualify. Check with NGC Benefits for your specific eligibility.
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