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 appended to the SPD for more information on what features apply to you. If information on this website conflicts with the Plan Document, the Plan Document will govern. From the MyRetirement website, go to your 401(k) Plan “Account Overview.” From the navigation list on the left go to “Plan Information” > “Plan Forms,” and select the appropriate document.
Access personalized, actionable solutions that may help you reduce financial stress, take control of your finances, and stay on track to reach your goals. From the MyRetirement website simply click on the “Planning” tab in the top navigation bar and select “My Financial Path” to access financial tools.
Select the Learning Center to get the help you need with retirement, savings, and investing, with access to financial education resources, including on-demand videos, articles, tools, calculators and more. You can also get help with Student Debt Solutions and Financial Wellness. Or explore additional topics from the Planning menu, depending on your information needs.
You can contribute up to 75% (exceptions may apply) of your eligible salary on a before-tax and/or Roth basis per paycheck. Your maximum before-tax and Roth contributions are subject to IRS limits each year: $23,000 for 2024 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 2024 for a total before-tax/Roth contribution of $30,500.
The IRS also sets limits for eligible wages and combined contribution limits each year. For 2024, the Annual Compensation Limit is $345,000. The Annual Additions Limit (415 Limit) is $69,000 for participants under age 50 and $76,500 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%. Union members are not eligible for automatic enrollment, except for employees at the Fort Wayne, Indiana, and Coralville, Iowa locations who are covered by a collective bargaining agreement and who are subject to certain automatic enrollment provisions as described in the relevant supplement to the 401(k) Savings Plan. 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 employee contribution limit mentioned above.
You can enroll in the 401(k) Savings Plan or change your contribution percentage or investment elections at any time on MyRetirement.
BAE Systems matching contributions
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.
You are always 100% vested in the value of your own contributions and any earnings on your own 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.
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.
Online Advice and My Total Retirement
BAE Systems has made a third-party provider, Empower Advisory Services, available to offer two services, Online Advice and My Total Retirement.
Online Advice tools and resources are available at no cost to you. With My Total Retirement, you will have access to a team of investment advisors to assist you with managing your 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. For more information please click on “Planning” in the top navigation bar and select the appropriate topic.
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. From the MyRetirement website, go to your 401(k) Plan “Account Overview.” From the navigation list on the left go to “Plan Information” > “Plan Forms,” and select the appropriate document.