Beneficiary Designation and Spousal Consent Form

Transcription

1 Beneficiary Designation and Spousal Consent Form Lockheed Martin Corporation Salaried Savings Plan Qualified Pre-Retirement Survivor Notice This notice explains certain rights you have with respect to the Money Purchase Component of the Salaried Savings Plan (the SSP or the Plan ). Part 1 Important Information for Participant and Spouse Regarding Qualified Pre-Retirement Survivor What is the Money Purchase Component of the Plan? The Money Purchase Component of the Plan generally consists of Company Matching Contributions and associated earnings, made after January 1, 1997, or the date you entered the Plan, if later, which are not invested in the ESOP Fund. For Heritage Lockheed Participants, the Money Purchase Component may also include Company Matching Contributions and the associated earnings made between January 2, 1992 and January 1, 1997, which are not invested in the ESOP Fund. Any balances from the ORINCON Corporation International 401(k) Profit Sharing Plan are also considered part of the Money Purchase Component. What happens with the Money Purchase Component upon my death? If you die before your benefits under the SSP commence, the Money Purchase Component (if any) of your SSP account will be used to purchase a Pre-Retirement Survivor (often called a QPSA ) for your surviving spouse, unless you have waived with spousal consent. If you are not married at the time of your death, or have been married less than one year at the time of your death, no QPSA is payable, and the Money Purchase Component, if any, will be paid in accordance with your Beneficiary Designation Form for the non- Money Purchase Component. Note: Death benefits under the non-money Purchase Component of the SSP will be paid in accordance with Plan provisions to the beneficiary(ies) designated on your Beneficiary Designation Form for the SSP. What is QPSA? The QPSA is an annuity providing for a level monthly payment for the life of your surviving spouse. The Plan will purchase this annuity from a commercial insurance company using the Money Purchase Component (if any) of your account. All costs associated with the purchase of the annuity are charged against your account. The size of each annuity payment depends on your spouse s age, the amount of your vested benefit in the Money Purchase Component, the insurance company s annuity purchase interest rates and the mortality tables used. Payment of will commence within a reasonable time after you would have reached normal retirement age (or your date of death, if later), unless your spouse consents to an earlier commencement. S09FOR230

2 Are there other payment options available to my surviving spouse? Your surviving spouse may elect to receive an alternative form of distribution permitted under the Plan, such as a lump sum. This election can only be made after your death. For example, the spouse of a deceased Participant who is entitled to may elect to receive the balance in the Money Purchase Component, if any, in a lump sum instead of an annuity under. If your total account balance in the Plan (including any non- money purchase components) does not exceed $5,000, the Plan will pay in a lump sum, even without the spouse s consent. How does compare to other payment methods available under the Plan? Let s assume that your account balance in the Money Purchase Component is $165,760 at your death and your surviving spouse who has just attained age 55 wants to begin payments at age 55. The insurance company who assumes a QPSA uses an interest rate assumption of 5.5% and the applicable mortality table under Section 417(e)(3) of the Internal Revenue Code. For this purpose, let s assume the Plan earns an investment return of 6% a year. Here is a comparison of to other payment forms in the Plan: Lump Sum Benefit $165,760 Approximately the same value as 300 Months (Installment Method) $1,000 per month Approximately the same value as QPSA 50% Joint and Survivor $946 per month N/A 75% Joint and Survivor $921 per month Approximately the same value as If your spouse didn t start taking any benefits until age 60, and assuming the Money Purchase Component grew to $221,824, here is what the comparison would look like: Lump Sum Benefit $221,824 Approximately the same value as 300 Months (Installment Method) $1,338 per month Approximately the same value as QPSA 50% Joint and Survivor $1,366 per month N/A 75% Joint and Survivor $1,322 per month Approximately the same value as If your spouse didn t start taking any benefits until age 65, and assuming the Money Purchase Component grew to $296,851, here is what the comparison would look like: Lump Sum Benefit $296,851 Approximately the same value as 300 Months (Installment Method) $1,791 per month Approximately the same value as QPSA 50% Joint and Survivor $2,011 per month N/A 75% Joint and Survivor $1,934 per month Approximately the same value as 2

3 Note: If your spouse decides to take the Money Purchase Component in an optional form other than, all Plan benefits must be taken in that form. Upon request, the Plan Administrator will provide your surviving spouse with the approximate size of the annuity payment. Can I waive? If you are married, you may waive and name a non-spouse beneficiary (with spousal consent) any time after the first of the year in which you turn age 35. You may also do this at an earlier time, but in that event the waiver and beneficiary designation will become void on the first day of the year in which you turn age 35. If you terminate from service before the first day of the year in which you turn age 35, you may waive and name a non-spouse beneficiary (with spousal consent) at any time after your termination of service. A waiver of and designation of a non-spouse beneficiary will not be valid unless your spouse consents. If you waive (with spousal consent) and retain your spouse as beneficiary, then the vested balance of the Money Purchase Component (if any) will be paid in a lump sum to your spouse if you die before retirement benefits have commenced under the Plan. If you waive and name a beneficiary other than your spouse, and your spouse consents, then no QPSA is payable, and the vested balance in the Money Purchase Component (if any) will be paid to a beneficiary(ies) you designated (and to which your spouse has consented) if you die before retirement benefits have commenced under the Plan. If you remarry, your previous spouse s consent will no longer apply. If you become legally separated or divorced, your previous spouse might be able to get a court order (which is called a Qualified Domestic Relations Order or QDRO ) that specifically protects your spouse s rights to receive or that gives your spouse other benefits under this plan. What is Spousal Consent? A Participant s spouse can give written consent to the Participant s designation of a non-spousal beneficiary and waive his or her rights to. The spouse must give the consent on the attached form. The spouse s signature must be witnessed by a notary public. The consent is valid only for the beneficiary designation for which it was given. If the Participant makes a subsequent beneficiary designation, a new spousal consent will be required to give effect to the new designation. If the Participant waives or designates a non-spouse beneficiary and the Participant will not attain age 35 by the last day of the year in which the designation is made, then the spousal consent given with respect to this designation shall become void on the first day of the year in which the Participant attains age 35 and a new spousal consent must be obtained to give full effect to the waiver and beneficiary designation. A participant may revoke a waiver of by simply naming his or her spouse as beneficiary. However, a spouse cannot revoke his or her consent to a non-spouse beneficiary. How do I waive? If you want to waive and designate a beneficiary other than your spouse, you should complete Parts 2 and 3 of this form and return to Voya at the address provided at the bottom of Part 3. This form, S09FOR230, is also available on the Savings Plan Web Tool at Whatever you do with respect to the QPSA, your Beneficiary Designation Form for the non-money Purchase Component will remain in effect unless you submit a new Beneficiary Designation Form with spousal consent. It is important you understand your rights and obligations under. Failure to follow proper procedures could result in serious consequences to you and the Plan. Please contact the Plan Administrator with any questions. The foregoing notice is intended only as a summary of certain provisions of the Plan. In all cases where this notice may be interpreted to conflict with the Plan, the provisions of the Plan will control. 3

4 Part 2 - Money Purchase Component Beneficiary Designation and Election to Waive QPSA (to be completed by the participant) I have read Part 1 of this form, and I understand the information therein, including the terms and conditions of the Qualified Pre-Retirement Survivor ( ). I wish to waive and name the following beneficiary(ies) to receive the balance (if any) in the Money Purchase Component of my SSP account if I die before I begin receiving retirement benefits under the SSP: Beneficiary: Name/Organization Address Social Security Number or Tax ID Number Relationship Code* %** * P= Primary Beneficiary C= Contingent Beneficiary ** If you list more than one beneficiary, the total for all the Primary Beneficiaries (Code P) must equal 100% and the total for all the Contingent Beneficiaries (Code C) must equal 100%. I understand that if I have named my spouse as beneficiary above, the Money Purchase Component (if any) will be paid to my surviving spouse in a lump sum, unless he/she chooses another form permitted under the Plan, if I die before retirement benefits have commenced under the Plan. I understand that if I am married and have named a beneficiary above who is not my spouse (and my spouse has consented) then the Money Purchase Component (if any) will be paid in a lump sum to that beneficiary(ies) if I die before retirement benefits commence under the Plan. I understand that I cannot impede my spouse s right to without his or her consent, and that a nonspouse beneficiary designation above is invalid and will not be effective unless my spouse has consented to my waiver of and designation of a non-spouse beneficiary by completing Part 3 of this form and having his or her signature witnessed by a notary public. I understand that any such consent is limited to the beneficiary designation made in this Part 2. I further understand that if I am not married at my death, or have been married less than one year at my death, no QPSA is payable, and the vested balance of the Money Purchase Component will be paid in accordance with my Beneficiary Designation Form for the non-money Purchase Component if I die before retirement benefits commence under the Plan. If I am making an election to waive during a year in which I have not attained or will not attain age 35, I understand that this election and beneficiary designation will become invalid as of the first day of the year in which I reach age 35. I will have to make a new election at that time, if I desire, and obtain my spouses consent. Participant s name (Please Print): Participant s Social Security Number: Participant s signature: Date: 4

5 Part 3 - Spousal Consent (must be completed by participant s spouse) I, _, am the spouse of. I have read and understand Part 1 of this form. I understand that if my spouse dies before retirement benefits commence under the Salaried Savings Plan, the Money Purchase Component (if any) of his/her SSP account will be used to purchase a Pre-Retirement Survivor (or QPSA ) for me, unless he/she has waived with my consent. I understand the terms and conditions of as described in Part 1 of this form. I have also read and understand Part 2 of this form, where my spouse has elected to waive and has named a beneficiary(ies) to receive the Money Purchase Component (if any) of his/her SSP account if he/she dies before retirement benefits have commenced under the Plan. I agree to give up my right to benefit, and instead have the Money Purchase Component (if any) of my spouse s SSP account paid to the beneficiary or beneficiaries specified in Part 2 of this form if my spouse dies before retirement benefits have commenced under the Plan. I understand that my spouse cannot select a different beneficiary for the Money Purchase Component than that specified in Part 2 unless I agree to the change. I understand that by signing this Part 3, I may receive less money than I would have received under the special QPSA payment form and I may receive nothing from the Money Purchase Component after my spouse dies. I understand that I do not have to sign this Part 3, and I am signing this form voluntarily. I understand that if I do not sign this form, then the vested portion of the Money Purchase Component, if any, of my spouse s SSP account will be used to purchase benefit for me (or, if I so choose, paid to me in a lump sum) should my spouse die before his/her retirement benefits have commenced under the Plan. I also understand that if the value of the benefit is $5000 or less, the Plan will pay the benefit to me in one lump sum payment (provided my spouse did not waive with my consent). Spouse s Signature: Spouse s Social Security No. Date Signed: Notary (print name): Notary s signature: Date signed: (Notary stamp/seal) Complete and return to: Voya, Attn: Lockheed Martin Savings Plan Information Center, P.O. Box Jacksonville, FL