Your HII Sub-Plan Decides Your Match
HII's six 401(k) sub-plans pay wildly different matches. Sub-Plan A gets 5% on 8% deferral. Sub-Plan D gets nothing. Here is how to find yours.
If you work at Huntington Ingalls Industries in Newport News, your 401(k) match is not determined by HII corporate policy alone. It is determined by which of six sub-plans you belong to, and the difference between the best and worst match is the difference between free money and no money at all.
Most HII employees never look past their paycheck stub to figure out which sub-plan governs their Savings Plan account. In our view, that is the single most expensive oversight in Hampton Roads retirement planning.
What Are the Six Sub-Plans?
HII’s Savings Plan is technically one plan under ERISA, but it operates as six distinct sub-plans. Your sub-plan assignment depends on your division, bargaining unit, and hire date. The six are: Sub-Plan A, Sub-Plan CC, Sub-Plan CM, Sub-Plan D, Sub-Plan GG, and AMSEC.
Each sub-plan has its own match formula, its own eligibility rules, and its own ceiling. Here is the full breakdown, drawn from the HII Savings Plan SPD filed with the Department of Labor.
How Much Does Each Sub-Plan Match?
| Sub-Plan | Match Formula | Deferral Needed for Full Match | Effective Match Rate |
|---|---|---|---|
| A | 62.5% of first 8% of pay | 8% | 5.0% of pay |
| CC | 75% of first 4% of pay | 4% | 3.0% of pay |
| CM | 75% of first 4% of pay | 4% | 3.0% of pay |
| D | No employer match | N/A | 0.0% |
| GG | 66.7% of first 3% of pay | 3% | 2.0% of pay |
| AMSEC | Flat dollar: 45% up to $2,500/year | Varies | Up to $2,500/yr |
The gap is enormous. An engineer earning $97,000 in Sub-Plan A who defers 8% receives a match worth $4,850 per year. The same engineer in Sub-Plan D receives $0.
How Do You Find Your Sub-Plan?
Your sub-plan assignment is not listed on your pay stub. To find it:
- Log into UPoint at hiibenefits.com and navigate to your Savings Plan account details.
- Call the HII Benefits Center at 1-877-216-3222 and ask: “Which sub-plan am I in for the Savings Plan?”
- Check your most recent Summary Plan Description, which lists sub-plan assignments by division and bargaining unit.
If you are a salaried, non-represented employee hired at Newport News Shipbuilding, you are most likely in Sub-Plan A. If you are represented by USW Local 8888, your sub-plan depends on your specific collective bargaining agreement. HII operates under nine CBAs at Newport News, and each can assign employees to different sub-plans.
The Vesting Schedule Matters Too
All sub-plans use a 3-year cliff vesting schedule for employer matching contributions. If you leave HII before completing three years of service, you forfeit 100% of the employer match. At three years, you are immediately 100% vested.
Your own contributions (pre-tax, Roth, and after-tax) are always 100% vested immediately.
What About the Mega-Backdoor Roth?
This is where HII’s plan stands out from most employers in Hampton Roads. The Savings Plan allows after-tax contributions up to 75% of eligible compensation, subject to the IRS Section 415(c) limit of $72,000 for 2026.
Here is the math for an employee earning $97,000 who maxes out:
| Contribution Type | Amount | Annual Limit |
|---|---|---|
| Pre-tax or Roth 401(k) | $24,500 | IRS 402(g) limit |
| Employer match (Sub-Plan A) | $4,850 | Plan formula |
| After-tax contributions | $42,650 | Remainder to 415(c) |
| Total annual additions | $72,000 | Section 415(c) |
The after-tax dollars can be converted to Roth through an in-service conversion at age 59 1/2 or rolled to a Roth IRA upon separation. This is the mega-backdoor Roth, and it allows HII employees to shelter substantially more than the standard $24,500 deferral limit.
For employees age 50 or older, add the $8,000 catch-up contribution, bringing total potential deferrals to $32,500 and total annual additions to $80,000.
What About the Pension and RAC?
HII closed its traditional pension plan to new non-represented employees hired after July 1, 2008. If you were hired before that date, you may still be accruing pension benefits. The Retirement Account Contribution (RAC), a cash-balance-style benefit, was closed to new hires as of July 1, 2021. Employees who were already receiving RAC contributions continue to receive them (grandfathered).
If you are a newer hire with no pension and no RAC, the Savings Plan match is your entire employer-funded retirement benefit. That makes knowing your sub-plan even more critical.
The Brokerage Window
HII’s plan offers a Schwab Personal Choice Retirement Account (PCRA) brokerage window. This gives participants access to individual stocks, ETFs, and mutual funds beyond the plan’s core menu. Not every participant knows it exists, and not every sub-plan highlights it in enrollment materials.
What Should You Do With This Information?
This is educational content, not personal advice, but we believe every HII employee should take three steps:
- Confirm your sub-plan through UPoint or the Benefits Center.
- Defer at least to the match ceiling for your sub-plan. Stopping at 3% when your match requires 8% leaves thousands on the table.
- Evaluate after-tax contributions if you have already maxed your pre-tax or Roth deferral and want to accelerate tax-advantaged savings through the mega-backdoor Roth strategy.
If you have questions about how your HII benefits fit into a broader retirement plan, you may want to work with a fee-only fiduciary advisor who understands the sub-plan structure. General guidance from an advisor unfamiliar with HII’s plan design will miss these distinctions.
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Ferrante Capital LLC is a registered investment adviser. Information presented is for educational purposes only and does not constitute investment advice, a solicitation, or a recommendation to buy or sell any security. All investing involves risk, including the possible loss of principal.
FC and its principals may hold positions in HII. This analysis is for educational purposes only and does not constitute a recommendation to buy, sell, or hold any security.
Forward-looking statements reflect Ferrante Capital’s current analysis and involve assumptions and estimates. Actual results may differ materially. Past performance is not indicative of future results.
Please consult a qualified financial professional before making investment decisions.
