Northrop Grumman Corporation · NYSE:NOC

Northrop Grumman — Investor Presentation (March 2008)

13 slides from Northrop Grumman's investor presentation, March 2008

  1. Slide 1: Pension Plan Changes: What You Need to Know

    Pension Plan Changes What You Need to Know February/March 2008 1 Copyright 2005 Northrop Grumman Corporation

  2. Slide 2: Five Things to Remember

    Five Things to Remember 1. The pension benefit you have already earned will not be impacted – the only change is to future benefit accruals under the cash balance formula 2. All other plan provisions stay the same 3. The change is effective at the end of your 5-year transition period (or, if you don

  3. Slide 3: 1. The pension benefit you have already earned will not be impacted

    1. The pension benefit you have already earned will not be impacted * The historical plan benefit you earn during your transition period (your Part B benefit) is based on a formula similar to the one under your historical plan and is subject to modifications in the way your service and compensation

  4. Slide 4: 1. The only change is to future benefit accruals under the cash balance formula

    1. The only change is to future benefit accruals under the cash balance formula ƒ Change in the pay-based credit is for future benefit accruals ƒ All pay = total pension-eligible compensation ƒ Excess pay = eligible compensation over the Social Security wage base Heritage Standard New Excess Excess

  5. Slide 5: Percentage of Age 65 Benefit: Standard to New Schedule

    1. The only change is to future benefit accruals under the cash balance formula Standard to New Schedule of Pay-based Credits Benefit Accrual Patterns 120% Benefits Already Earned – Not Changing Future Benefits to be Earned 100% Percentage of Age 65 Benefit 80% Age 45 with 20 Years of Service 60% 40

  6. Slide 6: Percentage of Age 65 Benefit: Heritage to New Schedule

    1. The only change is to future benefit accruals under the cash balance formula Heritage to New Schedule of Pay-based Credits Benefit Accrual Patterns 120% Benefits Already Earned – Not Changing Future Benefits to be Earned 100% Percentage of Age 65 Benefit 80% Age 45 with 20 Years of Service 60% 40

  7. Slide 7: 2. All other plan provisions stay the same

    2. All other plan provisions stay the same ƒ Including: ƒ Early retirement annuity conversion factors ƒ Three-year vesting ƒ Optional payment forms ƒ Go to Benefits OnLine for details 7 Copyright 2005 Northrop Grumman Corporation

  8. Slide 8: 3. The change is effective at the end of your 5-year transition period

    3. The change is effective at the end of your 5-year transition period 5-year transition period Change effective July 1, 2008 7/1/2003 6/30/2008 „ Grumman Pension Plan „ Northrop Grumman Electronic Systems Pension Plan „ Northrop Grumman Retirement Plan „ Northrop Grumman Retirement Plan ⎯ Rolling M

  9. Slide 9: 4. You do not need to retire before the end of the transition period

    4. You do not need to retire before the end of the transition period to retain your current benefit ƒ Pension benefits you have already earned are not impacted ƒ Only future benefit accruals are changing (Part D) ƒ You cannot preserve the prior schedule of pay-based credits by retiring ƒ The longer

  10. Slide 10: 5. Over 90% of employees will see a 10% or less reduction in age 65 benefits (Standard)

    5. Over 90% of employees will see a 10% or less reduction in age 65 benefits Employees currently accruing a benefit under the Standard schedule of pay-based credits YEARS OF SERVICE AGE 0-4 5-9 10-14 15-19 20-24 25-29 30-34 Over 34 0-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 Over 64 15% - 2

  11. Slide 11: 5. Over 90% of employees will see a 10% or less reduction in age 65 benefits (Heritage)

    5. Over 90% of employees will see a 10% or less reduction in age 65 benefits Employees currently accruing a benefit under the Heritage schedule of pay-based credits YEARS OF SERVICE AGE 0-4 5-9 10-14 15-19 20-24 25-29 30-34 Over 34 0-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 Over 64 15% - 2

  12. Slide 12: Five Things to Remember

    Five Things to Remember 1. The pension benefit you have already earned will not be impacted – the only change is to future benefit accruals under the cash balance formula 2. All other plan provisions stay the same 3. The change is effective at the end of your 5-year transition period (or, if you don

  13. Slide 13: More Information is Available

    More Information is Available ƒ Benefits OnLine contains an “Important Pension Information” page, which includes: ƒ Copies of charts in this presentation, as well as additional pension benefit examples ƒ Electronic copy of the Benefits Bulletin recently mailed to your home ƒ Frequently asked questio

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