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2020Huntington Ingalls IndustriesFinancial Security and SavingsProgram (FSSP)Summary Plan DescriptionJanuary 1, 2020
HII Financial Security and Savings Program (FSSP)Table of ContentsA GUIDE TO YOUR HUNTINGTON INGALLS INDUSTRIES FINANCIAL SECURITY ANDSAVINGS PROGRAM (FSSP) . 5PLAN HIGHLIGHTS . 6YOUR FSSP RESOURCES: UPOINT AND THE HIBC . 8YOUR FSSP USER ID AND PASSWORD . 9COMMUNICATION PREFERENCES . 9ELIGIBILITY . 9HOW TO ENROLL IN THE FSSP . 10ENROLLMENT FOR NEW HIRES AND REHIRES . 10AUTOMATIC ENROLLMENT FOR ACTIVE EMPLOYEES TRANSFERRED FROM NORTHROP GRUMMANCORPORATION . 11AUTOMATIC ENROLLMENT FOR NEW HIRES AND REHIRES . 11ENROLLMENT FOR CURRENT EMPLOYEES . 11NAMING YOUR BENEFICIARY . 12YOUR CONTRIBUTIONS TO THE FSSP . 13HOW MUCH YOU CAN CONTRIBUTE . 13RETIREMENT ACCOUNT . 13Saving For the Future .13Earning a Pension Benefit .13SAVINGS ACCOUNT. 132020 IRS PLAN CONTRIBUTION LIMITS . 14How Much Are You Allowed to Save in 2020?.14CATCH-UP CONTRIBUTIONS FOR PARTICIPANTS AGE 50 AND OLDER . 14CONTRIBUTIONS FOR HIGHLY COMPENSATED EMPLOYEES (HCES) . 15IF YOU PARTICIPATED IN ANOTHER EMPLOYER’S SAVINGS PLAN . 15MAKE-UP CONTRIBUTIONS AFTER A MILITARY LEAVE OF ABSENCE . 15ROLLOVER CONTRIBUTIONS. 16CHANGING YOUR CONTRIBUTIONS . 17HUNTINGTON INGALLS INDUSTRIES’ CONTRIBUTIONS TO THE FSSP . 17COMPANY MATCHING CONTRIBUTIONS . 17Company Matching Contributions for Ingalls Shipbuilding, Inc. RepresentedEmployees .17INVESTING YOUR COMPANY MATCHING CONTRIBUTIONS . 18DEFINITION OF ELIGIBLE COMPENSATION . 18HOW YOUR ACCOUNT IS VALUED: UNITS AND UNIT VALUES . 20TRACKING AND MANAGING YOUR ACCOUNT BALANCE . 21VESTING . 21EARNING YEARS OF SERVICE FOR VESTING. 22Forfeitures .221
HII Financial Security and Savings Program (FSSP)LOANS. 23OVERVIEW . 23LOANS TRANSFERRED FROM FSSP . 23IF YOU ARE CONSIDERING A LOAN . 23HOW TO REQUEST A LOAN. 23REQUIRED DOCUMENTATION . 24HOW MUCH YOU CAN BORROW . 24TERMS OF YOUR LOAN . 24INTEREST RATE AND FEES. 24REPAYING YOUR LOAN . 25IF YOU HAVE AN OUTSTANDING LOAN WHILE ON A LEAVE OF ABSENCE. 25IF YOU HAVE AN OUTSTANDING LOAN WHEN YOUR EMPLOYMENT ENDS . 26IF YOU HAVE AN OUTSTANDING LOAN AND YOU TRANSFER. 26IF YOU DEFAULT ON YOUR LOAN. 26WITHDRAWALS. 26OVERVIEW . 26HOW TO REQUEST A WITHDRAWAL . 27ORDER IN WHICH ACCOUNT DOLLARS ARE WITHDRAWN . 27HARDSHIP WITHDRAWALS . 27AGE 591 2 WITHDRAWALS . 30QUALIFIED RESERVIST WITHDRAWALS . 30MILITARY WITHDRAWALS . 30RECEIVING YOUR FSSP BENEFITS . 30WHEN BENEFITS ARE PAID TO YOU . 30OPTIONS FOR RECEIVING YOUR BENEFITS . 30Your Distribution Options .30Your Pension Benefit Based on FSSP Retirement Account Deposits .31MINIMUM REQUIRED DISTRIBUTIONS . 31HOW TO REQUEST A DISTRIBUTION OF YOUR BENEFITS . 31HOW TO REQUEST A ROLLOVER OUT OF THE PLAN . 32WHAT HAPPENS TO YOUR BENEFIT WHEN YOU DIE . 32TAXES AND YOUR FSSP BENEFITS . 32PAYING TAXES ON YOUR FSSP BENEFITS . 32TAXES ON WITHDRAWALS WHILE YOU ARE WORKING . 32TAXES ON DISTRIBUTIONS AFTER YOUR EMPLOYMENT ENDS . 33TEN-YEAR AVERAGING RULES . 34IMPORTANT NOTE ABOUT TAXES . 34FSSP INVESTMENTS . 34RETIREMENT ACCOUNT . 34SAVINGS ACCOUNT. 35YOUR SAVINGS ACCOUNT INVESTMENT CHOICES . 35ALLOCATING YOUR INVESTMENTS. 35Allocating New Contributions .35Rebalancing Your Account .35Restrictions on Fund Transfers .352
HII Financial Security and Savings Program (FSSP)Example: Core Investment Fund Transfer .36Certain Transactions Are Not Affected .36CHANGING YOUR INVESTMENT ELECTIONS . 36FIDUCIARY INVESTMENT RESPONSIBILITY. 37Information You Must Receive .37Information You May Request .38Confidentiality of Information Regarding the Huntington Ingalls Industries StockFund .38BASICS OF INVESTING . 39OVERVIEW . 39DIVERSIFICATION. 39SAVING REGULARLY . 39TAX-DEFERRED COMPOUNDING. 39RISK AND RETURN . 39ASSET CLASSES . 40BONDS . 40STOCKS . 41PASSIVELY MANAGED VS. ACTIVELY MANAGED FUNDS . 41YOUR SAVINGS ACCOUNT INVESTMENT OPTIONS . 41THE RETIREMENT PATH PORTFOLIOS INVESTMENT OPTIONS . 41YOUR RETIREMENT PATH PORTFOLIO OPTIONS AT A GLANCE . 42IS A RETIREMENT PATH PORTFOLIO RIGHT FOR YOU? . 43THE CORE INVESTMENT FUND OPTIONS . 43Overview of the Core Investment Fund Options .43YOUR CORE INVESTMENT FUNDS AT A GLANCE . 45STABLE VALUE FUND . 46U.S. FIXED INCOME FUND . 47BALANCED FUND. 47U.S. EQUITY FUND . 47INTERNATIONAL EQUITY FUND . 47SMALL CAP FUND. 48EMERGING MARKETS EQUITY FUND. 48HUNTINGTON INGALLS INDUSTRIES STOCK FUND . 48How the Huntington Ingalls Industries Stock Fund Works .48Dividends .49Diversifying Your Huntington Ingalls Industries Stock Fund Account Balance .49Distributions .49Voting and Sale of Huntington Ingalls Industries Stock .49A CLOSER LOOK: BENCHMARKS . 50OVERVIEW . 50FTSE 3-MONTH TREASURY BILL INDEX . 50BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX . 50MORGAN STANLEY CAPITAL INTERNATIONAL EAFE — EUROPE, AUSTRALASIA, FAR EAST — INDEX(MSCI EAFE ) . 50MSCI ACWI EX USA INDEX. 50RUSSELL SMALL CAP COMPLETENESS INDEX . 50MSCI EMERGING MARKETS INDEX (ND) . 513
HII Financial Security and Savings Program (FSSP)BALANCED CUSTOM INDEX . 51GENERAL PLAN INFORMATION . 51ADMINISTRATIVE FEES. 51FUTURE OF THE PLAN . 51PLAN ASSETS . 51PENSION BENEFIT GUARANTY CORPORATION (PBGC) . 51TOP HEAVY RULES. 51ASSIGNMENT OF BENEF
former employees of Northrop Grumman Corporation were transferred to this Plan. If you were an active employee at Northrop Grumman Corporation and your account balance under the Northrop Grumman Financial Security and Savings Program (FSSP) was transferred to this Plan within
