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Benefits: Summary of Lockheed Martin
Benefits: Summary of Lockheed Martin
BENEFITS
2014 Benefits
Employee benefits are an important component of Lockheed Martins Total Reward package which in-
2014 Benefits | 2
cludes outstanding pay and benefits, work environment, career development, and rewards and recogni-
tion. Below is an overview of the voluntary benefit programs available to eligible employees.
A Culture of Health
Lockheed Martin is committed to helping employees and
their families take active steps to enhance their personal
health. In support of this commitment, the company has
created LM HealthWorks, a collection of tools, resources
and programs to help support and improve the health of the
Lockheed Martin community.
This brochure provides highlights of certain Lockheed Martin voluntary benefit programs. It is not a summary plan description, plan document, or
an employment contract. Note that you may not be eligible for all benefit programs listed. Represented employees should refer to their Collective
Bargaining Agreement for plan eligibility. If there is any conflict between this brochure and the official plan documents, the official plan
documents will govern. An offer of employment is at the will of the Company.
Medical The LM HealthWorks Plan medical option provides you access to best-in-class health and
(including wellness resources and one-on-one support from trusted partners that Lockheed Martin
has selected Aetna, the medical plan administrator; Healthways, our wellness and
prescription condition management partner; and ExpressScripts, Inc , our prescription drug benefit
coverage) provider.
Note: TRICARE Supplement is available to employees who are retired military. Local
medical plan options are available for employees in Hawaii and Puerto Rico in lieu of the
LM HealthWorks Plan. An International Indemnity plan is provided for employees on inter-
national assignment.
Dental Choose from two Preferred Provider Organizations (PPOs) that allow you to see any li-
censed dentist, though you save money when you go to a Delta dentist:
Delta Comprehensive PPO Dental Plan: Provides 100% coverage for diagnostic and
preventive services, 80% coverage for basic care, and 60% coverage for major care.
The plan also covers certain orthodontia expenses. A $50 deductible applies for this
plan. Certain limitations apply.
Delta Comprehensive Plus PPO Dental Plan: Provides 100% coverage for diagnostic
and preventive services, 90% coverage for basic care, and 80% coverage for major
care. The plan also covers certain orthodontia expenses. There is no deductible un-
der this plan. Certain limitations apply.
A managed dental plan option is also available in some areas. The plan charges only a
copayment per service, though you generally must see a network dentist to receive bene-
fits.
Short Term Lockheed Martin automatically provides you with Short Term Disability benefits and at no
Disability cost to you. This coverage pays a weekly benefit for up to 26 weeks.
Note: Certain locations are covered by state disability laws or commonwealth plans.
Long Term Choose from two options that begin paying benefits after 180 days of disability:
Disability 50% option replaces 50% of monthly base pay
60% option replaces 60% of monthly base pay
Employee Term The company provides coverage of 2 times your annual base pay at no cost to you; or
Life Insurance you may elect coverage of $15,000, $50,000, 1 times your annual base pay, or 1.5 times
your annual base pay.
A credit is provided for coverage elections that are less than 2 times your annual base
pay.
Group Universal You may elect coverage options ranging from 1 to 8 times your annual base pay, to a
Life (GUL) maximum of $4,000,000.
Insurance GUL includes a Cash Accumulation Fund, which is an interest-bearing fund for the accu-
mulation of your premium payments above the cost of insurance. You must elect GUL in
order to make deposits into the fund.
Dependent For your eligible spouse / same-sex domestic partner You may elect coverage in
Optional Term amounts ranging from 1 to 3 times your annual base pay.
Life Insurance For your eligible children You may elect coverage of $5,000, $10,000, or $25,000.
Employee Tier 1 Coverage You may elect coverage of $15,000, $50,000, $100,000, $200,000,
Special Accident $300,000, $500,000, $750,000 or $1,000,000.
Insurance Tier 2 Coverage Additionally, if you elect $1,000,000 under Tier 1 coverage, you may
be eligible to increase your election to up to $2,000,000 of coverage (certain limitations
apply).
Dependent For your eligible spouse / same-sex domestic partner You may elect coverage of
Special Accident $10,000, $50,000, $100,000, $200,000, $300,000 or $500,000.
Insurance For your eligible children You may elect coverage of $10,000, $25,000 or $50,000.
Flexible Spending Participate in one or both of the tax-favored flexible spending accounts:
Accounts Health Care Spending Account deposit between $100 & $2,500 annually
Dependent Care Spending Account deposit between $100 & $5,000 annually
Business Travel Lockheed Martin provides Business Travel Accident insurance to you automatically at no
Accident cost to you. This coverage pays a benefit if you die or are injured while traveling on Com-
pany business:
Domestic travel $50,000 or 2 times annual base pay, whichever is greater, up to
$1,000,000 for you
Overseas travel $400,000 or 2 times annual base pay, whichever is greater, up to
$1,000,000 for you; $100,000 for your spouse / same-sex domestic partner; $10,000
for each child
2014 Benefits
Plan/Program Overview (non-represented employees)
2014 Benefits | 4
Savings Bonds You may direct payroll funds to a personal TreasuryDirect account. You choose the
amount to direct from your pay. The management of Savings Bonds is done through
TreasuryDirect.
Holidays Each Lockheed Martin location has its own holiday schedule.
Severance If you lose your job because of a reduction in force or layoff, you may be eligible for sev-
erance payments based on your years of service with the Company.
Other Benefits & Regardless of whether you enroll in medical and other benefits, there are LM Health-
Resources Works programs and services available to help you take action for better health. These
include:
You may also be eligible for additional benefit programs, such as these:
availableas of January 2014. Benefits offered to SSP eligible participants are described in plan
documents. If there is a discrepancy between this brochure and the plan documents, the plan doc-
uments will be the final authority. The Corporation reserves the right to amend, modify or termi-
nate any benefit plan at any time.
Immediate Eligibility
Generally, eligible salaried employees in participating business units are immediately eligible to participate
in the SSP and can join at any time. You must be designated on the Companys payroll as a regular, sala-
ried employee in a participating business unit.
Automatic Enrollment
If you do not enroll in the SSP within your first 30 days of eligibility, you will be automatically enrolled. If
you are automatically enrolled, 3 percent of your eligible compensation will be automatically contributed to
the plan on a before-tax basis. If you reach the IRS required limit in a calendar year for before-tax contri-
butions, your remaining contributions for that year will automatically be made on an after-tax basis. Unless
you designate otherwise, this amount will be invested in the Plans Target Date Fund corresponding to the
year beginning on the date closest to your estimated retirement age of 65. If you want to contribute a dif-
ferent amount to the Plan, or if you do not wish to contribute at all, you can opt out of automatic enrollment
or change your contribution percentage by accessing the Savings Plan Web Tool or by calling the Savings
Plan information line. You have 30 days from your date of eligibility to opt out before your contributions will
automatically begin.
Automatic Escalation
If you are automatically enrolled in the SSP and have not elected to opt-out of the plan or change your
participation in the plan, your contribution rate will automatically increase 1 percentage point annually until
your contribution rate reaches the Plans automatic escalation rate maximum of 8 percent.
Participants can contribute up to 25 percent (a total of 25 percent on a before-tax, Roth - and/or after-tax
basis) of base pay to their SSP account subject to IRS limitations. After an employee joins the SSP, if he/
she wishes to change the amount contributed to the SSP, it can be done as often as weekly. If you are a
new hire or a rehire, you are responsible for monitoring the IRS limit across all plans (of all employers) to
which you have contributed during the year. If you are considered a highly compensated employee, your
contributions may be limited.
Company Contributions
The Company will match 50 percent of participant contributions up to 8 percent of base pay, giving a maxi-
mum Company match of 4 percent of base pay on a weekly basis. The Company match is automatically
invested in Lockheed Martin common stock in the Employee Stock Ownership Plan (ESOP) Fund of the
SSP. You can immediately transfer (diversify) all or some of your Company Matching Contributions made
to the ESOP into other investment options.
Immediate Vesting
Participants are immediately vested in their savings contributions and the Company match. This means
that no matter when a participant leaves the Company, he/she is entitled to the full pay out of his/her ac-
count balance.
Salaried Savings Plan Highlights
Catch-Up Contributions
Salaried Savings Plan Highlights | 6
Participants age 50 or older may be eligible to make additional Before-Tax Contributions to the SSP in
excess of the annual before-tax IRS limit. These contributions are referred to as Catch-Up Contributions.
Participants can elect or change their Catch-Up Contributions at any time during the year in which they are
eligible. The catch-up maximum allowable amount may change each year. Catch-Up Contributions are not
eligible for the Company match.
Before-Tax Contributions
SSP participants can save up to 25 percent of eligible pay before most taxes are deducted from their pay.
This means paying fewer taxes since less of the participants income is taxed. (The maximum allowable
contribution is subject to IRS limitations.) Also, SSP participants may not have to pay any taxes on SSP
before-tax contributions and any earnings as long as the money stays in the participants account. Taxes
become due only when the money is taken out of the account.
Annual Statements
Participants will receive an annual statement in the mail detailing their account information. Participants
also have the flexibility to create their own customized statement at any time by accessing the Savings
Plan Web Tool. This feature allows participants to view, save and print a statement containing any desired
sections of their account information for a date range of their choice within the past 24 months. Partici-
pants can also receive a paper statement covering the most recent quarter free of charge by calling the
Savings Plan Information Line.
Withdrawal Circumstances
Although the SSP is intended for long-term retirement savings, participants may make withdrawals under
certain circumstances. In most cases, the IRS requires a participant who takes an early withdrawal to pay
a 10 percent early withdrawal penalty and pay taxes on any taxable amount that is withdrawn. Other re-
strictions and penalties may apply.
Loan Availability
Participants may borrow from their SSP account by applying for a loan. The minimum loan amount is
$500. A participant may borrow as much as 50 percent of his/her account balance or $50,000 less the par-
ticipants highest outstanding loan balance during the last 12 months, whichever is less. The minimum
loan repayment amount is $40 per month. There is a $25.00 non-refundable application fee. Only one loan
is available at a time.
Rollovers
Participants with a balance in a former employers plan or a conduit IRA may be able to roll the money
over to the SSP. Participants can also roll over after-tax and Roth 401(k) money from a former employers
plan or conduit IRA into the SSP. The Company does not match this amount. Participants do not have to
pay taxes on rollover money or its associated earnings until it is taken out of the SSP.