401(k) Savings Plan

What you need to know

A 401(k) plan can be an important part of your future financial security, as it offers you an easy and convenient way to save for retirement. Eligible employees can participate in the BAE Systems Employees’ Savings and Investment Plan (401(k) Savings Plan or the Plan) at any time, recognizing that saving and investing during your working years will likely represent a significant portion of your retirement savings.

Specific features of the 401(k) Savings Plan can vary among BAE Systems business units. Please see the Summary Plan Description (SPD) and the Plan Supplement for more information on what features apply to you. If information on this website conflicts with the Plan Document, the Plan Document will govern. Visit BenefitsNavigator, then click on the “Plan Documents” tile.

Financial education resources

BenefitsNavigator offers tools and resources to assist you with financial learning and planning. Tutorials, videos, tools, and calculators are available to help you expand your financial knowledge and wellness. Topics range from budgeting and retirement planning to buying a home, saving for college, and protecting your assets through life, disability, and other insurance coverages.

Visit BenefitsNavigator and select the “Financial Education Center” tile, or select “Savings and Retirement” and click on the “Financial Education” drop down button to view these valuable financial wellness resources.

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Your contributions

You can contribute up to 50% (exceptions may apply) of your eligible salary on a before-tax, Roth, and/or after-tax basis per paycheck.

Your maximum before-tax and Roth contributions are subject to IRS limits each year: $22,500 for 2023 and any future annual updates the IRS makes. If you are or will be age 50 or older during the year, you can make additional catch-up contributions of $7,500 for 2023 for a total before-tax/Roth contribution of $30,000.

The IRS also sets limits for eligible wages and combined contribution limits each year. For 2023, the Annual Compensation Limit is $330,000. The Annual Additions Limit (415 Limit) is $66,000 for participants under age 50 and $73,500 for participants who are age 50 or older.

New employees: You will be automatically enrolled at a 3% before-tax contribution level, which will increase by 1% each year, up to 6%. You may choose to opt out of automatic enrollment at any time or to enroll in the Plan using different elections; however, you must take action soon after your hire date in the event you wish to reverse any automatic contributions. You may only opt out and withdraw initial automatic contributions (adjusted for any gains and losses to the date of distribution) within 90 days of the first day of the pay period that is considered for your first automatic contribution to the Plan. Keep in mind that any before-tax and Roth contributions you made to a prior employer’s plan count toward the annual IRS limits mentioned above.

You can enroll in the 401(k) Savings Plan or change your contribution percentage or investment elections at any time on BenefitsNavigator.

Visit BenefitsNavigator

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BAE Systems matching contributions

If your business unit offers a company match, your Plan Supplement will describe those matching contributions in more detail. To review the relevant Plan Supplement, visit the 401(k) Savings Plan section on BenefitsNavigator.

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The term vesting is commonly used to describe when money contributed to a benefit plan is yours to keep even if your employment with the company ends. Vesting schedules are used to describe when you obtain full ownership of your benefit account. In the BAE Systems 401(k) Savings Plan, vesting timing can range from immediately or on a ‘cliff’ schedule (such that you become 100% vested once you reach a certain number of years of employment), to an incremental or graduated schedule (such that you vest in increments over a specified number of years). Vesting provisions at BAE Systems vary by business and contribution type.

Employee contributions

You are always 100% vested in the value of your own contributions and any earnings on your own contributions.

Employer contributions

You will be vested in any employer contributions based on the vesting schedule described in your Plan Supplement. There are a few instances in which you may become 100% vested in your company matching contributions as described in more detail in the Plan’s Summary Plan Description (SPD).

Contributions rolled over from a previous employer

You are always 100% vested in any contributions (including any earnings) that you transfer to your BAE Systems 401(k) Savings Plan account from a previous employer's plan.

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Investment options

When you save in the 401(k) Savings Plan, you’re also an investor. The Plan offers a comprehensive investment lineup that includes core funds, premixed portfolios, and a Self-Directed Brokerage Account, which allows you to invest funds from your 401(k) Savings Plan outside of the BAE Systems core investment offerings. Remember, if your investment needs change, you may adjust your investment elections in the Plan at any time.

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Online investment tools and Professional Management services

BAE Systems has made a third-party provider, Alight Financial Advisors, available to offer two services: Online Advice and Professional Management Services.

Online Advice tools and resources are available at no cost to you. With Professional Management Services, you have a team of investment advisors looking after your retirement account. If you enroll in this service, a fee will be charged to your account. Please note that any investment advice provided is being provided by a third party and is neither being endorsed or provided by BAE Systems.

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Qualified domestic relations order

In the event you divorce and need to divide your retirement benefits as part of divorce proceedings, you are required under state law to submit a qualified domestic relations order (QDRO) to the BAE Systems QDRO Service Center. A QDRO is a court order/document that recognizes an alternate payee’s right to receive all or a portion of your retirement benefits. The QDRO is typically entered by a court of appropriate jurisdiction.

Learn more about QDROs at dol.gov, or visit the BAE Systems Resource Center for more information. From the Resource Center, go to Benefits & Financial Wellness > QDRO Guide. You must be on the BAE Systems network to access the Resource Center portal. Once your draft QDRO is ready, submit it to the QDRO Service Center at BAEqdro@groom.com before you submit the final document to the court.

401(k) Savings Plan Terms and Definitions

BAE Systems Employees’ Savings and Investment Plan: Formal name of the benefit plan that is more commonly referred to as the 401(k) Savings Plan.

Eligible Employee: An individual who is eligible to participate in the Plan by being employed with BAE Systems and being credited with at least one hour of service. You are not an eligible employee if you are:

  • Covered by a collective bargaining agreement that was bargained in good faith but does not provide for your coverage under the Plan
  • A contract employee (as described in the Plan document and SPD) 
  • A leased employee
  • A non-resident individual (non U.S. citizen or U.S. national) who doesn’t receive U.S.-source income
  • A member of a group of employees specified under the Plan as not being eligible to participate

Enrollment Date: The first day of a payroll period following your election to participate in the Plan.

Plan Supplement: Describes certain features of the Plan as they apply to you based on your current Employer and Plan participation directions. Find the Plan Supplement posted on BenefitsNavigator. Go to the 401(k) Savings Plan “Account Summary” page and select the “Plan Information” link. From the Summary Plan Descriptions list, select the “401(k) Plan Information” and click on the “Plan Supplement” option.

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