Understanding Raytheon’s Retirement Savings Contribution (RSC)
When Raytheon froze its pension plan in 2007, it introduced a new way to help employees save for retirement: the Retirement Savings Contribution (RSC).
But many employees don’t fully understand how the RSC works — or how it fits into their long-term financial plan. If you’re eligible, this benefit can quietly add tens or even hundreds of thousands of dollars to your 401(k) over time.
Keep in Mind.
As of January 1, 2023, Raytheon (now part of RTX) transitioned away from the Retirement Savings Contribution (RSC) for most employees. It introduced a new employer contribution structure that includes a tiered company match (up to 4% of pay) and an age-based retirement contribution (3%–7%).
If you were hired before 2023 and were eligible under the previous RSC structure, you may still see historical RSC contributions in your 401(k). However, all new contributions now follow the updated formula.
Here’s what you need to know about the RSC: who gets it, how much it pays, and how to make the most of it.
What Is the RSC?
The Retirement Savings Contribution is a non-matching employer contribution to your 401(k). It’s Raytheon’s way of continuing to contribute toward your retirement after freezing the pension plan.
Unlike a match, it doesn’t depend on whether you contribute anything yourself. It’s automatic if you’re eligible.
The following information reflects the legacy RSC formula, which was in effect before January 1, 2023. While you may still see these contributions in your 401(k) history, they have been replaced by a new combined company match and retirement contribution system for active employees.
Who’s Eligible?
You’re eligible for the RSC if you were part of the pension plan before it was frozen, and you meet specific age and service criteria.
In general:
You must be a legacy Raytheon employee (hired before the RTX merger).
You must have been eligible for the pension before the freeze date (usually 2007).
You need to be actively employed and meet service requirements.
2025 Reminder: If you were receiving a grandfathered match rate as of December 31, 2022, that enhanced rate will expire on January 1, 2025. At that point, you’ll receive the standard match and contribution levels under the new plan. Please review your updated benefit statement or consult with HR to confirm your current setup.
Note: Employees hired after the pension freeze are not eligible to receive the RSC. They receive standard matching contributions only.
How Much Is It?
The RSC amount depends on your age and years of service, and is calculated as a percentage of your eligible compensation.
Here’s a typical structure (subject to change):
Where Does the RSC Go?
RSC contributions (if applicable in past years) were deposited into your 401(k), formerly managed by Fidelity and now administered through Alight’s ‘Your Gateway’ platform. These contributions were typically made annually in the first quarter of the following year (e.g., your 2022 RSC was deposited in early 2023). You can invest it however you like — target date funds, mutual funds, or a self-directed brokerage option. Even though the structure changed in 2023, the timing of when contributions are deposited — early the following year — has stayed the same.
Why the RSC Matters
If you’re in your 50s or 60s, the RSC can be a significant part of your retirement savings strategy, especially since:
It's guaranteed (if eligible).
It grows tax-deferred inside your 401(k).
It can compound significantly over time.
Let’s look at an example:
Example:
Jane is 58 years old, earns $130,000, and gets a 5% RSC.
Raytheon contributes $6,500 into her 401(k) each year — even if she contributes nothing.
Over 7 years, that’s $45,500 before any growth of the investment.
Common Questions
Can I increase my RSC?
No — it’s calculated and funded by the company based on their formula. You can’t increase it yourself.
Do I have to opt in?
No - it’s automatic if you’re eligible.
Is the RSC affected by how much I contribute?
No — you’ll get the RSC even if you contribute $0 to your 401(k). But contributing yourself is still smart.
Is the RSC subject to vesting?
Yes. Vesting rules vary, but if you leave the company before being vested, you may forfeit part or all of the RSC.
How to Maximize the RSC
Check your eligibility — especially if you were hired before 2007.
Coordinate with your own contributions — don’t rely on the RSC alone.
Invest it wisely — make sure your allocations match your risk profile.
Factor it into your retirement plan — use it as part of your long-term income strategy.
Final Word
The RSC is a hidden gem in Raytheon’s retirement plan — but only if you understand how to use it.
If you’re a legacy employee with pension history, the RSC might be your bridge between pension and 401(k). If you’re not sure whether you’re eligible — or how to factor it into your plan — it’s time to get clarity.
We help RTX employees prepare for retirement with confidence. Whether you need help understanding your benefits or building a full financial plan for you and your family, we’re here for you.
If you're within 5–10 years of retirement and have questions about your plan—or simply want a second opinion—we're here to help. Let's have a no-pressure conversation.
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This material was written in collaboration with artificial intelligence (ChatGPT) and derived from sources believed to be correct.
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