ExxonMobil Pension Plan
Summary Plan Description
2013
About Pension
- Information Sources
- Introduction
- Plan at a Glance
Participation, Vesting and
Cost
Retiring From ExxonMobil
Pension Plan Basics
Receiving Your Pension
Benefit
ExxonMobil Pension Plan SPD
January 2013
About The Pension Plan
This summary plan description (SPD) provides an explanation of the general plan
provisions applicable to most employees who are eligible to receive benefits provided
under the ExxonMobil Pension Plan. Descriptions of pension benefits provided by
other ExxonMobil sponsored plans or sub-plans of the ExxonMobil Pension Plan are
contained in separate summary plan descriptions for each of those specific plans
including but not limited to the Retirement Plan of Mobil Oil Corporation, Advanced
Elastomer Systems, L.P. Pension Plan for Salaried Employees, and Paxon Hourly and
Salaried Pension plans.
Payment Options
Death Benefits
Administrative and ERISA
Information
Key Terms
This SPD supersedes all previous Pension Plan participant publications. It does not
contain all the details. In determining specific benefits, the full Pension Plan
provisions, as they exist now or in the future, always govern. Copies of Pension Plan
documents are available for your review. The company reserves the right at any time
to change in any way or terminate any benefit.
Eligibility for participation in the Pension Plan by represented employees is governed
by local bargaining requirements.
Information Sources
When you need information or want to begin receiving your benefit, you may contact:
Phone Numbers:
Active Employees, Retirees and Survivors
ExxonMobil Benefits Service Center
Monday – Friday 8:00 a.m. to 6:00 p.m.
(U.S. Eastern Time), except certain holidays
Toll-Free: 1-800-682-2847
or 800-TDD-TDD4 (833-8334) for hearing impaired
Address:
ExxonMobil Benefits
Service Center
PO Box 199540
Dallas, TX 75219-9722
2
ExxonMobil sponsored sites — Provides access to plan-related information for
employees, retirees, and their family members.
ExxonMobil Me, the Human Resources Intranet Site — Can be accessed at
work by current employees.
ExxonMobil Family, the Human Resources Internet Site — Can be
accessed from home by everyone at www.exxonmobilfamily.com.
Retiree Online Community Internet Site — Can be accessed from home by
retirees and survivors only at www.emretiree.com.
ExxonMobil Benefits Service Center Web Site - Can be accessed from
home by everyone at www.exxonmobil.com/benefits.
Introduction
Two pressing questions about retirement are: How much money will I need and where
will I get this money?
Many financial planners believe that in retirement, people need between 70% and
80% of their income just before retirement. The amount you need depends on factors
as unique as you are — including what you want to do when you retire, your health
and your financial obligations. In addition, your retirement income must keep pace with
inflation during your retirement.
The company helps you prepare financially for retirement. ExxonMobil's Pension Plan
and Savings Plan are designed to work with Social Security and personal savings to
provide financial security in retirement for long-term career employees.
The Pension Plan is designed primarily to provide you a monthly benefit from the time
of your retirement until your death. This Plan offers additional flexibility — you can
choose various payment options for your pension. In addition, the Plan may pay
benefits to your survivors in case of your death.
To help you find specific Plan information quickly and easily, this SPD includes these
helpful tools:
Plan at a Glance, a quick user's guide highlighting plan basics.
Charts and tables throughout the booklet providing information, highlights of
plan provisions, etc.
References throughout the SPD to places you can get more information.
A list of Key Terms containing definitions of many words and terms used in
this SPD. If you see a term that is unfamiliar, refer to this section at the end of
the SPD.
A careful reading of this SPD will help you understand how the Plan works. You may
obtain additional information through the sources shown on pages 1 and 2.
3
Plan at a Glance
Participation and Vesting
Regular, full-time employees automatically begin participating upon employment. In
some cases, part-time employees may also participate. You are vested when you
have five years of vesting service or reach age 65, whichever comes first. See page 4.
Retiring From ExxonMobil
While you are eligible to receive a pension if your employment ends after you become
vested, the benefit is enhanced if you are a retiree. Generally, you become a retiree
when you terminate employment as a regular employee and have at least 15 years of
benefit service and are age 55 or older. See page 5.
Pension Plan Basics
Your basic pension benefit is determined by a formula that takes into account your
service, pay and Social Security benefit. See page 7.
When Your Benefit Can Begin
Benefits are available after your employment ends. Benefits can begin as early as age
50. The amount of your benefit may be adjusted to take into account your age when
your benefit begins. See page 10.
How Your Benefit Is Paid
The Plan provides several payment options. Retirees can choose among more
options. See page 13.
What Happens When You Die
The Plan pays death benefits in most cases if you die before you begin receiving your
benefit. If you die after your pension benefit has started, the payment option you chose
determines whether benefits continue and for how long. See page 17.
Administrative and ERISA Information
This Plan is subject to rules of the federal government, including the Employee
Retirement Income Security Act (ERISA). See page 20.
Key Terms
This is an alphabetized list of words and phrases, with their definitions, used in this
SPD. See page 26.
About Pension
Participation, Vesting and Cost
Participation, Vesting and
Cost
Q. How do I participate in this Plan?
- Eligibility
- Vesting
- Cost
A. Once you meet the eligibility requirements, you automatically begin
participating. You do not need to enroll.
Retiring From ExxonMobil
Pension Plan Basics
Receiving Your Pension
Benefit
Payment Options
Eligibility
Most U.S. dollar payroll employees of Exxon Mobil Corporation and participating
affiliates are eligible for this Plan and begin to earn benefits from their first day of
employment. For details, see eligible employee in the Key Terms section.
Vesting
Death Benefits
Administrative and ERISA
Information
Key Terms
Once you are vested, your benefit belongs to you. You are vested in the Plan after five
years of vesting service or when you reach age 65, whichever comes first. If you leave
before you are vested, you receive no plan benefits.
Cost
The company pays the full cost of this Plan.
About Pension
Retiring From ExxonMobil
Participation, Vesting and
Cost
Q. Are there advantages for my pension benefit if I retire from the
company?
Retiring From ExxonMobil
- Retirement Eligibility
A. Yes. While you are eligible for a pension benefit after becoming
vested, your benefit may be enhanced in a number of ways if you leave
employment as a retiree.
Pension Plan Basics
Receiving Your Pension
Benefit
Payment Options
Retirement Eligibility
To become a retiree, you must first complete 15 years of benefit service, and then
leave the company as a regular employee after:
Death Benefits
Administrative and ERISA
Information
Attaining age 55; or
Becoming entitled to long-term disability benefits under the ExxonMobil
Disability Plan
Key Terms
Retirement Eligibility - Age and Service Examples
Turning Age 55
For purposes of applying these eligibility provisions, an employee is considered to
attain age 55 on the first of the month in which he turns 55. Thus, a person who has
already accrued 15 years of benefit service would be eligible to retire as of the first day
of the month in which his 55th birthday occurs.
Example 1:
An employee turns 55 years old on October 15. Because of the special retirement
eligibility provision, the employee is considered to be 55 years of age as of October 1,
which is the earliest day the employee could retire (assuming he already has 15 years
of Benefit Service).
Because an employee's retirement date is the first day after his last day of
employment, the employee in this example would have to continue in employment
until at least September 30 in order to retire. If his last day of employment is earlier
than September 30, he would not be eligible for retirement.
Example 2:
Rather than working through September 30, the employee in the above example
terminates his employment a day earlier, on September 29. Since the person's
"retirement date" (September 30) occurs before he is considered to have attained age
55 (October 1), he would not be eligible for retirement under the ExxonMobil plans.
6
Attaining 15 Years of Benefit Service
There is no "first of the month" rule when it comes to attaining 15 years of Benefit
Service. Benefit Service is measured for this purpose to the closest day, and a person
must have actually accrued 15 years of Benefit Service in order to retire.
Example 3:
An employee's 55th birthday is November 11, but will not have accrued 15 years of
Benefit Service until November 25. Even though for benefit purposes the employee is
considered 55 years old on November 1, she must continue in employment through
November 25 in order to be eligible for retirement. If her last day of employment is
November 24, she would not be eligible for retirement.
(Note: A person who is not eligible for retirement is considered a "terminee" and would
not be eligible for continued health and welfare benefits or a lump sum under the
ExxonMobil Pension Plan)
If you retire from the company, you have up to four advantages that are
Your benefit is not reduced as much if you begin receiving it early (see page
10).
You have additional payment options, including a lump sum (see page 13).
Your Social Security offset may be less (see page 8).
You may be eligible to receive a Pre-Social Security Pension (see page 9).
About Pension
Pension Plan Basics
Participation, Vesting and
Cost
Q. What is the Pension Plan, and how is the benefit calculated?
Retiring From ExxonMobil
A. The Pension Plan is a defined benefit plan. This means that the Plan
specifies, or defines, a formula for calculating the benefit that will be
paid to you.
Pension Plan Basics
- Pension Formula
- Other Offsets
The Plan's formula for determining the amount of your pension benefit includes:
Receiving Your Pension
Benefit
Payment Options
Death Benefits
Administrative and ERISA
Information
Key Terms
Your years of pension service.
Your pensionable pay.
Your estimated Social Security benefit.
Once your employment ends, you can elect (within limits) when you want payments to
begin and how you want your benefit to be paid to you. Typically, the amount of your
benefit is adjusted to take into account your elections.
Pension Formula
Your basic pension benefit is determined by this formula:
1.6% x years of pension service x final average pensionable pay
minus
your Social Security offset
Your basic pension benefit is a monthly amount payable to you starting at age 65 as a
Basic Annuity (see page 13). If you elect to begin your benefit before age 65 or elect a
different payment option, the basic pension benefit may be adjusted.
Example — Basic Pension Benefit:
Here is an example of how the basic pension benefit is calculated.
Pat has 30 years of pension service, final average pensionable pay of $7,000 a month
and a Social Security offset of $662 a month.
1.6% x 30 years x $7,000
$ 3,360
Less Social Security offset
- 662
Pat's monthly basic pension
benefit
$ 2,698
8
These terms, used in the pension formula, will help you understand the formula.
Refer to Key Terms for details about these terms:
Pension Service — Generally, all your service while participating in this Plan.
Final Average Pensionable Pay — The highest average of 36 consecutive
months of your pensionable pay during the last 10 years of your employment.
Social Security Offset — The part of your estimated Social Security benefit
that is used as an offset in the pension formula. The offset is equal to 1.5% of
your estimated Social Security benefit multiplied by your pension service, up to
33-1/3 years, which is a maximum of 50%.
This offset reflects the fact that while you work for ExxonMobil, the company
pays half of your Social Security tax and Social Security benefits make up part
of your total retirement income.
Example — Social Security Offset:
Pat's estimated Social Security benefit is $1,471.
Since Pat has 30 years of pension service, her offset is 1.5% x 30 years x
$1,471 = $662.
For retirees, the Pre-Social Security Pension — explained on page 9 — replaces the
Social Security offset until age 62.
Key Facts About the Social Security Offset
Only your Social Security retirement benefit is included in determining the
offset. Any other Social Security payments (such as spouse's benefits or
children's benefits) are not included.
The estimated Social Security benefit used for purposes of the Social Security
offset is calculated using the following assumptions:
The Social Security benefit is calculated using your actual Social
Security earnings history, if you provide it; otherwise, a governmentprescribed formula is used to estimate the earnings history. If you elect
to provide your actual Social Security earnings history, the Plan must
use them even if they result in a lower basic pension benefit.
All calculations are based on Social Security law in effect when you
leave the company. Changes in your Social Security benefit after you
leave the company do not affect your payments from the Pension Plan.
Your estimated Social Security benefit is calculated using the actual
Social Security benefit formula. Each year, Social Security grants an
annual cost of living increase that is factored into the formula. In
calculating your estimated Social Security benefit, the full amount of
these annual increases is phased in over a nine-month period. This has
the effect of reducing the initial impact of any increase in the Social
Security formula, which, in turn, potentially reduces your Social
Security offset that is used at the time of termination or retirement.
9
The Social Security benefit is determined when your employment ends.
If you are eligible to retire when you leave, the amount is
determined as though you are 62 (or your actual age if you retire after
age 62) on the date of retirement.
If you leave without meeting the requirements for retirement, the
amount is determined as though you are 65 (or your actual age if you
terminate employment after age 65) on the date of termination.
An age-62 offset is smaller than an age-65 offset.
Learn more about your Social Security benefits by calling the Social Security
Administration or by accessing www.ssa.gov.
Pre-Social Security Pension for Retirees
Although the Pension Plan may pay benefits as early as age 50 (see page 10), the
earliest you can begin your Social Security retirement benefit is age 62. The Plan
provides a temporary additional benefit if you retire and start your pension benefit
before becoming eligible to receive a Social Security benefit.
This additional benefit, called a pre-Social Security pension, equals the amount of the
Social Security offset in your basic pension benefit calculation. The Pre-Social
Security Pension starts when your pension benefit starts and continues until age 62
(or when you are first eligible for Social Security).
Example:
Pat starts her benefit (which we calculated in earlier examples) at age 60. Her Social
Security offset is $662. She starts payments of her basic pension benefit of $2698
each month plus a pre-Social Security pension benefit of $662 until age 62, for a total
plan benefit of $3360 until she reaches age 62.
Other Offsets
Additional offsets to the basic pension benefit will likely apply if you participated in a
separate pension plan, including sub-plans of this Plan or an affiliate-sponsored
pension plan, and your service in that plan is also included in pension service used to
calculate your ExxonMobil basic pension benefit. Other offsets may be deducted if you
are eligible to receive a non-U.S. governmental pension or non-U.S. separation
payment.
About Pension
Receiving Your Pension Benefit
Participation, Vesting and
Cost
Q. When can I begin receiving my pension?
Retiring From ExxonMobil
A. After you leave the company, you can begin receiving your vested
pension benefit as early as age 50.
Pension Plan Basics
Receiving Your Pension
Beginning Your Benefit
Benefit
- Beginning Your Benefit
- Adjustments for Early
When your benefit begins depends on these circumstances:
Commencement
- Retirees
- Terminees
Payment Options
Death Benefits
Administrative and ERISA
Information
After your employment ends, you may choose to begin your vested pension
benefit as early as age 50 and as late as age 65.
If you retire from the company after reaching age 64, you may delay the start
of your benefit up to one year, but no later than age 70.
If you terminate employment after reaching 65 without being a retiree, or if you
leave employment after attaining age 70, your benefit begins immediately.
You should access the ExxonMobil Benefits Service Center (EMBSC) Web site or
call 1-800-682-2847 at least 90 days but not more than 120 days before you want
benefits to begin.
Key Terms
For information about receiving your benefit, refer to Retirement Process Steps from
the Pension Plan section on ExxonMobil Me, the Human Resources Intranet Site
that can be accessed at work by employees.
Adjustments for Early Commencement
Your basic pension benefit calculated under the formula (shown on page 7) is reduced
if you choose to receive your benefit earlier than:
Age 60 as a retiree; or
Age 65 as a terminee.
The reduction, if any, depends on your age when you start your benefit and whether
you are a retiree or terminee.
11
Retirees
If you are a retiree and begin your benefit before age 60, both your basic pension and
your pre-Social Security Pension will be adjusted according to this schedule:
If your benefit starts in the month you … You receive this percentage of your
reach …
basic pension benefit
60 or older
100%
59
95%
58
90%
57
85%
56
80%
55
75%
54
70%*
53
65%*
52
60%*
51
55%*
50
50%*
*Applies to disability retirements only.
Note: Special provisions apply for participants who had overseas service before 1985.
12
Terminees
If you terminate employment without becoming a retiree, your basic pension benefit is
actuarially adjusted if you start your pension at any time before age 65. The following
table shows the percentage of the benefit received at different ages:
If your benefit starts in the month you … You receive this percentage of your
reach …
basic pension benefit
65 or older
100%
64
90%
63
81%
62
73%
61
67%
60
60%
59
55%
58
50%
57
45%
56
41%
55
38%
54
34%
53
31%
52
29%
51
26%
50
24%
Example:
Carlos leaves the company with 10 years of pension service, final average
pensionable pay of $5,000 a month, and a Social Security offset of $260 a month.
His basic pension benefit, using the formula on page 6, is $540 a month, payable at
age 65, as a Basic Annuity.
If, Carlos began receiving his benefit at age 60, he would receive $324, which is 60%
of $540.
As a terminee, Carlos does not receive a pre-Social Security pension.
About Pension
Participation, Vesting and
Cost
Retiring From ExxonMobil
Pension Plan Basics
Receiving Your Pension
Benefit
Payment Options
- Basic Annuity
- Qualified Joint and Survivor
Annuity (QJSA)
- Joint Annuity
- Extended Period Certain
Payment Options
Q. How can I receive my benefits?
A. The Plan calculates your basic pension benefit as a Basic Annuity,
but gives you choices about how your benefit is paid. The options
available to you depend on your marital status and whether you are a
retiree.
Retirees may choose from any of the payment options described in this section. In
addition, the Pre-Social Security Pension is paid monthly until you are eligible for a
Social Security benefit or as a lump sum if you elect a lump sum payment for your
pension.
If you are not a retiree, but are vested in the Pension Plan when you leave the
company, you may choose only a Basic Annuity, a Qualified Joint and Survivor
Annuity or a Joint Annuity.
Annuity
- Lump Sum
- Choosing a Payment Option
- Projections
- Tax Treatment of Pension
Payments
The amount of your benefit is adjusted if you elect to receive your pension benefit as
any option other than a Basic Annuity.
If you are married at the time your benefit begins, your benefit can only be paid as a
Qualified Joint and Survivor Annuity — see page 14 — unless you and your spouse
agree to another payment option.
Death Benefits
Administrative and ERISA
Information
Key Terms
Basic Annuity
When your basic pension benefit is calculated under the formula (see Pension Plan
Basics on page 6), it is calculated as a Basic Annuity. The Basic Annuity provides the
largest monthly benefit payable from the Plan. It is a monthly benefit paid to you for
your lifetime with guaranteed payments for five years. If you die before the five years
are completed, payments continue to your beneficiary until this five-year period is
completed. The Basic Annuity is also called a "five-year certain and life" annuity. All
other payment options are derived from the Basic Annuity.
14
Qualified Joint and Survivor Annuity (QJSA)
A Qualified Joint and Survivor Annuity is a monthly benefit paid to you for your lifetime.
After your death, 50% of the monthly amount you were receiving continues to your
surviving spouse (who was your spouse when benefits began) for the rest of his or her
life. If you are married at the time your benefit begins, by law you will automatically
receive your pension benefit in the form of a QJSA. However you may elect a different
payment option, but only if your spouse consents to your election in writing, and that
consent is notarized or witnessed
Electing a QJSA After Your Pension Benefit Has Already Commenced
Ordinarily, once you have commenced your pension benefit as an annuity, you are
locked in to the specific payment option you have selected, and cannot elect a new
one. An exception applies, however, if you are a retiree who becomes married after
commencing your pension benefit in the form of an annuity. In that case, you may
elect to convert your benefit into a QJSA, with your new spouse designated to
receive any survivor benefits. If you elect this conversion, the amount of your benefit
will be adjusted so that your new form of benefit is the actuarial equivalent of your
old annuity. You have twelve months following your marriage to elect to convert your
benefit to a QJSA. This conversion option is not available to those who elected to
receive their pension benefit as a lump sum.
Joint Annuity
This is a monthly benefit paid to you for your lifetime. You may choose an annuity that
pays 1%, 25%, 50%, 75% or 100% of your monthly amount as a survivor's benefit to
your designated joint annuitant after your death. Monthly payments continue to your
surviving joint annuitant for the remainder of his or her life. Payments under the Joint
Annuity are guaranteed at the amount you were receiving for five years (or longer if an
Extended Period Certain Annuity is elected in connection with the Joint Annuity)
before changing to the survivor's benefit.
Qualified Joint and Survivor Annuity versus 50% Joint Annuity
A Qualified Joint and Survivor Annuity — while a little larger each month — does not
offer the five years of guaranteed payments that the Joint Annuity does, but rather
the payment immediately reduces to the 50% QJSA benefit. Additionally, the joint
annuitant for the QJSA must be your spouse.
Extended Period Certain Annuity
This form of payment is identical to the Basic Annuity, see page 14, except that you
can choose a 10-, 15- or 20-year guarantee period. This option is available only to
retirees. The Extended Period Certain Annuity may be combined with the Joint Annuity
Option.
Lump Sum
This is a single payment of the actuarial value of your Basic Annuity. If you elect the
lump sum payment option, you will receive your Pre-Social Security Pension as a
single payment. The lump sum payment option is available only to retirees.
Calculating the Lump Sum
As a retiree, you can receive the pension benefit either as an annuity consisting of
monthly payments or as a lump sum.
Mortality and interest assumptions are used to convert the stream of annuity payments
to a lump sum.
15
Lump sum assumptions vary depending upon your particular circumstances. To
determine what assumptions apply to you, you should access the ExxonMobil
Benefits Service Center (EMBSC) Web site or call 1-800-682-2847 at least 90 days
but not more than 120 days before you want benefits to begin.
For information about receiving your benefit, refer to Retirement Process Steps from
the Pension Plan section on ExxonMobil Me, the Human Resources Intranet Site
that can be accessed at work by employees.
Additional information is available in the Pension/Retirement section on ExxonMobil
Me, the Human Resources Intranet Site that can be accessed at work by employees.
Choosing a Payment Option
All of the monthly payment options are actuarially derived from the Basic Annuity. If
you elect a monthly payment option other than the Basic Annuity, the amount of your
basic pension benefit is reduced because these payments are guaranteed for two lives
and/or for a longer period of time.
Example:
To understand how the benefits vary according to the payment option you select,
return to Pat's example (see page 7).
As explained earlier, Pat retires at age 60 with a basic pension benefit of $2698 each
month payable as a Basic Annuity (5-year certain and life). The monthly amount Pat
would receive if she elected one of the other annuity payment options is shown in the
following table. This example assumes that Pat's husband is the joint annuitant for the
QJSA or any joint annuity she selects, and that he is also age 60 when Pat's pension
benefit commences.
Pat's Basic Annuity (5-year certain and life) = $2698 each month
If Pat elects ...
Her monthly benefit would be ...
10-year certain
$2,649
15-year certain
$2,582
20-year certain
$2,506
Qualified Joint and Survivor Annuity
$2,571
Joint Annuity — 1%
$2,685
Joint Annuity — 25%
$2,627
Joint Annuity — 50%
$2,555
Joint Annuity — 75%
$2,501
Joint Annuity — 100%
$2,441
Projections
There are several ways to obtain a pension estimate. Refer to Projections from the
Pension Plan section on ExxonMobil Me, the Human Resources Intranet Site that can
be accessed at work by employees; for additional information access the ExxonMobil
Benefits Service Center (EMBSC) Web site or call 1-800-682-2847.
16
Tax Treatment of Pension Payments
Pension benefits are generally taxable as ordinary income for federal income tax
purposes. Many states also tax pension benefits. Before you begin your pension
benefit, you should consult a personal tax advisor for more help.
If you are eligible for and elect to receive a lump sum payment, the taxable amount
may be subject to special tax treatment and may be eligible to be rolled over to an
Individual Retirement Account (IRA) or another tax-qualified employer plan. The
taxable amount is the total lump sum value less amounts on which tax has been
previously paid.
About Pension
Participation, Vesting and
Cost
Retiring From ExxonMobil
Pension Plan Basics
Receiving Your Pension
Benefit
Payment Options
Death Benefits
-
If You Die as an Active
Employee
-
With Less than 15 Years of
Service — Surviving Spouse
Annuity
-
With 15 or More Years of
Service — Pension Death Benefit
- If You Die as a Retiree
- If You Die as a Terminee
Administrative and ERISA
Information
Key Terms
Death Benefits
Q. Are any benefits paid from the Plan when I die?
A. Under certain circumstances, benefits from the Plan may be payable
or continue after your death.
Retirees may choose from any of the payment options described in this section.
If You Die as an Active Employee
Your survivors may be entitled to the following benefits from the Pension Plan if you
die as an active employee with a vested benefit.
With Less than 15 Years of Service —
Surviving Spouse Annuity
If you have less than 15 years of benefit service or are a non-regular or extended parttime (enhanced non-regular) employee when you die, the Pension Plan will pay a
Surviving Spouse Annuity. The government requires that the Surviving Spouse
Annuity provide a lifetime income to your surviving spouse if you have been married
for at least one year.
A Surviving Spouse Annuity is half of your basic pension benefit earned up to the date
of your death, payable under the Qualified Joint and Survivor Annuity option (see page
14).
Your surviving spouse may begin receiving the Surviving Spouse Annuity as early as
the month in which you would have attained age 50, and as late as the time you would
have attained age 65. The adjustments for early commencement for terminees (see
page 12), apply to the Surviving Spouse Annuity.
If you have no surviving spouse eligible to receive the Surviving Spouse Annuity, there
is no benefit payable from the Plan upon your death.
18
With 15 or More Years of Service —
Pension Death Benefit
If you have 15 or more years of benefit service and you are not a non-regular
employee (including an extended part-time employee) on your date of death, the
Pension Plan will pay a Pension Death Benefit, which is significantly larger than the
Surviving Spouse Annuity.
How It Is Calculated
The Pension Death Benefit is based on your total basic pension benefit plus your PreSocial Security Pension earned under the Plan. The Pension Death Benefit is
calculated as if you had retired as of the date of your death and had elected the lump
sum payment option to be paid at age 50 or actual age if older at time of death. If you
die before age 50, the Pension Death Benefit is the present value of the age-50 lump
sum.
When It Is Paid
The Pension Death Benefit is paid as soon as practical after your death.
Who Receives It
The Plan pays the Pension Death Benefit to the beneficiary designated on the special
beneficiary designation form (which you can print from the HR Intranet).
To comply with the government requirement for surviving spouse benefits, your
spouse must consent if you want to name someone other than your spouse as the
primary beneficiary.
If you have not designated a Special Beneficiary prior to your death, the beneficiaries
are determined by a standard order, explained in the Standard Beneficiary definition in
the Key Terms section.
Special Note about Special Beneficiary Designation:
If you are married and less than 35 years of age when you execute a Special
Beneficiary Designation and you do not name your spouse as your primary
beneficiary, then your special designation will become invalid when you attain age 35.
Another beneficiary designation (with spousal consent) is required upon attaining age
35.
How It Is Paid
Your beneficiary can elect to receive the Pension Death Benefit either as a lump sum
or as monthly payments for life.
The monthly payments are the lump sum Pension Death Benefit actuarially converted
to the Basic Annuity (five-year certain and life), see page 13, using the interest rate in
effect at time of your death.
19
If You Die as a Retiree
If you become a retiree and:
Elect to begin your pension payments as soon as possible but die before
that payment starts — The benefit will be paid in accordance with your
election, as illustrated in the following example:
Examples:
If you elected a ...
Then ...
Basic Annuity or Extended Period
Certain
Your beneficiary will receive the monthly
benefit you would have received for 5
years or for the extended period certain.
Lump sum payment
The lump sum amount you would have
received (including any Pre-Social
Security amount you would have
received) is paid to your estate.
Qualified Joint and Survivor Annuity
Your spouse will receive 50% of the
monthly benefit you would have
received.
50% Joint Annuity
Your joint annuitant will receive the
monthly benefit you would have received
and, after five years the amount is
reduced to 50%.
Do not elect to begin your pension payments as soon as possible and die
before your benefits begin — The death benefit payable from the Pension
Plan is the Pension Death Benefit, see page 18.
Die after pension payments begin — The payment option that you chose
determines whether any future benefits are paid.
If You Die as a Terminee
If you are a terminee and you die after pension payments begin, the form of payment
that you chose determines whether any further benefits are paid.
If you are a terminee with a vested pension benefit and you die before pension
payments begin but after being married at least one year, then your surviving spouse
may be eligible for the Surviving Spouse Annuity (see page 17 for description).
Otherwise, no benefit is payable.
When Payments or Benefits Begin
References to the date when payments or benefits begin mean the date your
pension benefit is scheduled to begin under the terms of the Plan. This date may not
be the same as the date you actually receive your first payment.
About Pension
Administrative and ERISA Information
Participation, Vesting and
Cost
Q. Is there other information I need to know about the Plan?
Retiring From ExxonMobil
A. This section provides information about the administration of this
Plan and your rights under law.
Pension Plan Basics
Receiving Your Pension
Benefit
Payment Options
Death Benefits
Administrative and ERISA
Information
- Basic Plan Information
- Benefit Claims Procedures
- No Implied Promises
- Assignment of Benefits
- If the Pension Plan Is Amended
The formal name of the Plan is the ExxonMobil Pension Plan.
Basic Plan Information
Plan Administrators
Administration of the Pension Plan is handled by the Administrator-Benefits, the
Administrator-Finance and the Administrator-Accounting. The Administrator-Benefits is
the Manager, Global Benefits Design, Human Resources, Exxon Mobil Corporation.
The Administrator-Finance is the Manager, Benefits Finance and Investment,
Treasurers, Exxon Mobil Corporation. The Administrator-Accounting is the Manager,
Financial Reporting, Controllers, Exxon Mobil Corporation. You may contact these
plan administrators at the following address. Legal process may be served upon the
Administrator-Benefits c/o Exxon Mobil Corporation by serving the Corporation's
Registered Agent for Service of Process, Corporation Service Company (CSC).
or Terminated
- Insured Benefits
- Your Rights Under ERISA
Key Terms
Administrator-Benefits
For appeals:
P.O. Box 2283
Houston, TX 77252-2283
For service of legal process:
Corporation Service Co.
211 East 7th Street, Suite 620
Austin, Texas 78701-3218
Administrator-Finance
Administrator-Accounting
Exxon Mobil Corporation
5959 Las Colinas Blvd
Irving, TX 75039-2298
Pension Plan Trustee
The assets of the Pension Plan are held in a master trust. The Trustee is:
The Northern Trust Company
50 South LaSalle St
Chicago, IL 60675
21
Certain accrued benefits under the Plan are secured by group annuity contracts
issued by the following insurance companies:
Aetna Life Insurance
Company
151 Farmington Avenue
Hartford, CT 06156-9260
The Equitable Life
Assurance Society
of the United States
200 Plaza Drive
Secaucus, NJ 07094-3689
The Prudential Asset Management
Company
1 Hanover Road
Florham Park, NJ 07932-1597
Metropolitan Life Insurance Company
200 Park Avenue
New York, NY 10166
Type of Plan
The Pension Plan is a defined benefit pension plan under ERISA.
Plan Numbers
The Pension Plan is identified with government agencies under two numbers: the
Employer Identification Number, 13-5409005, and the Pension Plan Number (PN),
001.
Plan Year
The Plan year is the calendar year.
Plan Sponsor and Participating Affiliates
The Pension Plan is sponsored by:
Exxon Mobil Corporation
5959 Las Colinas Blvd.
Irving, TX 75039-2298
All of Exxon Mobil Corporation's divisions and major U.S. affiliates participate in the
Pension Plan. A complete list of participating affiliates is available from the
Administrator-Benefits upon written request.
Benefit Claims Procedures
Filing a Claim
If you believe you are being denied a benefit, in whole or in part, to which you are
entitled under the Pension Plan, you may file a claim for the benefit with the
ExxonMobil Benefits Service Center (EMBSC) at Xerox. All claims must be filed in
writing.
The EMBSC will review your claim and respond to you within a reasonable period of
time, normally within 90 days after receiving your claim. If your claim is denied
completely or partially, you will receive written notice of the decision. The notice will
describe:
The specific reasons for the denial and the provisions upon which they are
based.
Any additional information or material that is needed to validate the claim and
the reason that information is required.
The process for requesting an appeal.
22
If EMBSC needs additional time to decide on your claim because of special
circumstances, you will be notified within the original 90-day period. You will receive a
response no later than 180 days after your claim was received initially.
Filing a Mandatory Appeal
If your claim has been denied, in whole or in part, you or your designated
representative may appeal the decision to the Administrator-Benefits. Such an appeal
is required in order for you to preserve your right to bring a civil action in court, as
described below. Your written appeal must be made within 60 days after you
receive the initial notice of denial. You should include the reasons why you believe
the benefit should be paid and information that supports, or is relevant to, your
request. You may also request reasonable access to, and copies of, information
relevant to your claim. If you do not file the appeal within 60 days, your appeal will
not be considered.
Within 60 days of receiving a request for review, the Administrator-Benefits will make a
decision. If additional time is needed, you will be notified in writing of the special
circumstances that require an extension. In any event, you will receive a decision no
later than 120 days after receipt of your request for review. The decision will be written
in plain language and will refer to the pertinent plan provisions on which it is based. If
your appeal is denied, you or your representative may review any plan documents,
records, or information reviewed in making the determination.
Filing a Voluntary Appeal
A denied appeal may be reconsidered, but only if you have other information that is
relevant to your claim and was not considered in your previous appeal. If this is the
case, you or your designated representative may send such information in writing to
the Administrator-Benefits within 30 days of the appeal denial. Providing such
information is strictly voluntary and is not necessary to preserve your right to bring a
civil action in court. Please include in your voluntary appeal letter the reason(s) you
believe the mandatory appeal was improperly denied and include the new information
that supports and is relevant to your request. If you do not file a voluntary appeal
within 30 days, your voluntary appeal will not be considered.
You will be notified within 15 days of receipt if your voluntary appeal is not accepted
because no new pertinent information is included or your voluntary appeal was not
timely filed.
After reviewing the additional information submitted with your voluntary appeal
request, the Administrator-Benefits will make a decision within 60 days. As with the
mandatory benefit appeal, if your voluntary appeal is denied, you will be informed of
the pertinent plan provisions on which the denial is based, and you or your
representative may review any plan documents, records, or information reviewed in
making the determination.
Your decision to submit a benefit dispute to a voluntary appeal will not affect your
rights to any other plan benefits.
Statute of Limitations
After you have received the response of the mandatory appeal, you may bring a civil
action in Federal Court under section 502(a) of ERISA. Any lawsuit must be filed no
later than one year from the date your mandatory appeal was denied. This
deadline is extended for any period during which a voluntary appeal is pending.
23
Authority of Administrator-Benefits
The Administrator-Benefits (and those to whom the Administrator-Benefits has
delegated authority) has the discretionary authority to determine eligibility for benefits,
to construe and interpret the terms of the Pension Plan in its application to any
participant or beneficiary, and to decide any and all claim appeals.
No Implied Promises
Nothing in this booklet says or implies that participation in the Pension Plan is a
guarantee of continued employment with the company.
Assignment of Benefits
You cannot use your Pension Plan benefit as collateral for a loan. In addition, it cannot
be pledged to another person or organization in any way except as provided by a
Qualified Domestic Relations Order.
If the Pension Plan Is Amended or
Terminated
Although the Pension Plan is expected to be continued indefinitely, the company may
at any time and for any reason amend or terminate the Pension Plan or any of its
provisions. If any material changes are made in the future, you will be notified.
If the Pension Plan is terminated and no successor plan is established, you will be
100% vested immediately, regardless of your years of service.
Insured Benefits
Most benefits earned under the Pension Plan are insured by the Pension Benefit
Guaranty Corporation (PBGC) if the Plan terminates. Benefits earned by Exxon
participants before August 1986 are insured under a contract issued by Aetna Life
Insurance Company. Generally, the PBGC guarantees most vested normal age
retirement benefits, early retirement benefits, and certain disability and survivor's
pensions. However, the PBGC does not guarantee all types of benefits under covered
plans, and the amount of benefit protection is subject to certain limitations.
The PBGC guarantees vested benefits at the level in effect on the date of plan
termination. However, if a plan has been in effect less than five years before it
terminates, or if benefits have been increased within the five years before plan
termination, the whole amount of the Plan's vested benefits or the benefit increase
may not be guaranteed. In addition, there is a ceiling on the amount of monthly benefit
that the PBGC guarantees, which is adjusted periodically.
24
For more information on the PBGC insurance protection and its limitations, contact the
office administering your benefits or the PBGC. Inquiries to the PBGC should be
addressed to:
PBGC
Technical Assistance Branch
1200 K Street, NW
Washington, DC 20005-4026
Telephone: (202) 326-4400
Internet: www.pbgc.gov
Your Rights Under ERISA
As a participant in the ExxonMobil Pension Plan, you have certain rights and
protections under the Employee Retirement Income Security Act of 1974 (ERISA).
ERISA provides that as a Plan participant, you shall be entitled to:
Receive Information About Your Plan and Benefits
Examine, without charge, at the office of the Administrator-Benefits and at
other specified locations, such as worksites and union halls, all documents
governing the Pension Plan, including collective bargaining agreements, and a
copy of the latest annual report (Form 5500 Series) filed by the Pension Plan
with the U.S. Department of Labor and available at the Public Disclosure Room
of the Employee Benefits Security Administration.
Obtain, upon written request to the Administrator-Benefits, copies of
documents governing the operation of the Pension Plan, including collective
bargaining agreements, and copies of the latest annual report (Form 5500
Series) and updated summary plan description. The Administrator-Benefits
may require a reasonable charge for the copies.
Receive a summary of the Pension Plan's annual financial report. The
Administrator-Benefits is required by law to furnish each participant with a copy
of this summary annual report.
Obtain a statement telling you whether you have a right to receive a pension at
normal retirement age (age 65) and if so, what your benefits would be at
normal retirement age if you stop working under the Pension Plan now. If you
do not have a right to a pension, the statement will tell you how many more
years you have to work to get a right to a pension. This statement must be
requested in writing and is not required to be given more than once every
twelve months. The Pension Plan must provide the statement free of charge.
25
Prudent Actions by Pension Plan Fiduciaries
In addition to creating rights for Pension Plan participants, ERISA imposes duties upon
the people who are responsible for the operation of the employee benefit plan. The
people who operate your Pension Plan, called "fiduciaries" of the Pension Plan, have
a duty to do so prudently and in the interest of you and other Pension Plan participants
and beneficiaries. No one, including your employer, your union, or any other person,
may fire you or otherwise discriminate against you in any way to prevent you from
obtaining a plan benefit or exercising your rights under ERISA.
Enforce Your Rights
If your claim for a pension benefit is denied or ignored, in whole or in part, you
have a right to know why this was done, to obtain copies of documents relating
to the decision without charge, and to appeal any denial, all within certain time
schedules.
Under ERISA, there are steps you can take to enforce the above rights. For
instance, if you request a copy of Pension Plan documents or the latest
summary annual report from the Pension Plan and do not receive them within
30 days, you may file suit in a Federal court. In such a case, the court may
require the Administrator-Benefits to provide the materials and pay you up to
$110 a day until you receive the materials, unless the materials were not sent
because of reasons beyond the control of the administrator.
If you have a claim and an appeal for benefits, which are denied or ignored, in
whole or in part, you may file suit in a state or Federal court. In addition, if you
disagree with the Pension Plan's decision or lack thereof concerning the
qualified status of a domestic relations order, you may file suit in Federal court.
If it should happen that Pension Plan fiduciaries misuse the Plan's money, or if
you are discriminated against for asserting your rights, you may seek
assistance from the U.S. Department of Labor, or you may file suit in a Federal
court. The court will decide who should pay court costs and legal fees. If you
are successful, the court may order the person you have sued to pay these
costs and fees. If you lose, the court may order you to pay these costs and
fees, for example, if it finds your claim is frivolous.
Assistance with Your Questions
If you have any questions about your Pension Plan, you should contact the
ExxonMobil Benefits Service Center (EMBSC) at Xerox. If you have any questions
about this statement or about your rights under ERISA, or if you need assistance in
obtaining documents from the Administrator-Benefits, you should contact the nearest
office of the Employee Benefits Security Administration, U.S. Department of Labor,
listed in your telephone directory or the Division of Technical Assistance and Inquiries,
Employee Benefits Security Administration, U.S. Department of Labor, 200
Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain
publications about your rights and responsibilities under ERISA by calling the
publications hotline of the Employee Benefits Security Administration.
About Pension
Participation, Vesting and
Cost
Retiring From ExxonMobil
Key Terms
Beneficiary
The person or entity that receives benefits when you die. The Plan
provides a standard list of beneficiaries but you may name another
beneficiary if you wish.
Close Window
Benefit Service
Generally, all the time from the first day of employment until you leave the
company's employment. Excluded are: unauthorized absences; leaves of
absence of over 30 days (except military leaves or leaves under the
Federal Family and Medical Leave Act); certain absences from which you
do not return; periods when you work as a non-regular employee, as a
special agreement person, in service station, car wash, or car-care center
operations, or when you are covered by a contract that requires the
company to contribute to a different benefit program, unless a special
authorization credits the service.
Close Window
Dependent Child
An unmarried person who was born before your death, who is not
employed on a regular and full-time basis, not reached the end of the
month in which age 24 is attained provided the child is chiefly dependent
on the covered person for support and maintenance.
Close Window
Eligible Employee
Most U.S. dollar payroll employees of Exxon Mobil Corporation and
participating affiliates. Regular employees are eligible their first day of
employment. Non-regular employees are eligible retroactive to the first
day of the first 12-month period during which they work at least 1,000
hours (for this purpose, the 12-month period begins on the person's date
of employment and each anniversary thereafter).
Close Window
Pension Plan Basics
Receiving Your Pension
Benefit
Payment Options
Death Benefits
Administrative and ERISA
Information
Key Terms
The following are not eligible to participate in the Plan: employees who
work at company operated retail stores (CORS employees), or leased
employees, barred employees or special agreement persons as defined
in the Plan document.
Extended Part-Time Employee
An employee who is classified as a non-regular employee, but who has
been designated as an Extended Part-Time (Enhanced Non-Regular)
Employee under his or her employer's employment policies relating to
flexible work arrangements.
Close Window
27
Final Average Pensionable Pay
Generally, is determined by reviewing your monthly pensionable pay for
the 10 years preceding termination of employment and selecting the 36
consecutive months which produce the highest average monthly amount.
For most employees, this will be the final 36 months of their career with
the company.
Note: the government sets a limit on the amount of pay that can be used
to determine pension benefits for certain higher-paid employees.
Close Window
Leased Employee
A person who provides services on a substantially full-time basis for at
least a year to Exxon Mobil Corporation or a participating affiliate
pursuant to a third-party services agreement, if the services are
performed under the primary direction or control of ExxonMobil.
Close Window
Non-Regular Employee
Temporary or part-time employee of Exxon Mobil Corporation or
participating affiliates. Non-regular employees include extended part-time
employees. Non-regular employees do not include employees designated
by their employer as part-time regular.
Close Window
Pensionable Pay
Generally, pensionable pay is the sum of:
Close Window
(1) Your pay attributable to your monthly base
compensation and
(2) Your supplemental compensation (for example,
overtime and shift/relief pay) that you receive as part of
the Company’s established wage and salary system
The total pensionable pay amount may not exceed 120% of your monthly
pay associated with your regular work schedule and rate of pay. Regular
work schedule and rate of pay do not include those related to temporary
job assignments, regardless of how long an employee has filled a
temporary job assignment. (For SeaRiver fleet employees, the rate of pay
is the rate of pay in effect for pay purposes as of the end of the month.)
Pension Formula
The procedure for calculating the amount of money payable from the
Pension Plan to a participant (see page 7).
Close Window
Pension Service
Generally, your vesting service with ExxonMobil or any affiliate
participating in the Pension Plan. Pension service may include your
service while you were participating in a predecessor plan (such as the
Mobil Retirement Plan) or in a pension plan whose benefit is coordinated
with the ExxonMobil Pension Plan.
Close Window
There are some exceptions in calculating pension service. For example,
you do not receive service for any period as a leased employee or during
which you chose not to participate in past annuity plans that required
participant contributions. Certain periods of non-regular service are also
excluded if you did not meet the requirements for crediting such service
as pension service.
If you are a non-regular employee, pension service is granted only for
those years in which you worked at least 1,000 hours. (For this purpose,
years are measured from the date of employment and each anniversary
thereafter.) If you work less than 1,800 hours in a year, you are credited
with a fraction of a year of service, proportionate to 1,800 hours.
28
Regular Employee
An employee of a participating employer, whether or not the person is a
director, who, as determined by the participating employer, regularly
works a full-time schedule, and is not employed on a temporary basis.
The definition includes a person who regularly works a full-time schedule
but who, for a limited period of time, is approved for a part-time regular
work arrangement under the participating employer's work rules relating
to part-time work for regular employees.
Close Window
Retiree
Generally, a person at least 55 years old who retires as a regular
employee with 15 or more years of benefit service. Retiree status may
also be attained by someone who is retired by the company as a regular
employee and entitled to long-term disability benefits under the
ExxonMobil Disability Plan after 15 or more years of service, regardless
of age.
Close Window
An employee who terminates as a non-regular employee (including
extended part-time employee) is not eligible for retiree status regardless
of age or service.
Close Window
Social Security Offset
The part of your estimated Social Security benefit that is used as an
offset in the pension formula.
Close Window
The offset is equal to 1.5% of your estimated Social Security retirement
benefit for each year of pension service, up to 33-1/3 years. The
maximum offset is 50% (1.5% x 33-1/3) of your Social Security retirement
benefit.
Standard Beneficiary
The order of beneficiaries is:
Close Window
Paying all to your spouse.
Dividing equally among your children, who are born prior to your
date of death, who either survive you or who die before you
leaving children of their own who survive you and, in the case of
each child who dies before you leaving children who survive you,
subdividing his or her share equally among those children.
Dividing equally between your surviving parents.
Dividing equally among your brothers and sisters who either
survive you or die before you leaving children of their own who
survive you and, in the case of each brother or sister who dies
before you leaving children who survive you, subdividing his or
her share equally among those children.
Paying all to your executors or administrators.
The term child means one's son or daughter by legitimate blood
relationship or legal adoption. Parent means one's father or mother by
legitimate blood relationship or legal adoption. One's brother or sister
means another child of either or both parents.
Surviving Spouse Annuity
A government-required survivor annuity provided to the surviving spouse
of a deceased participant if certain conditions are met.
Close Window
29
Terminee
A person who separates from service without becoming a retiree.
Close Window
Vested
Refers to a participant's right to receive a benefit. You become vested in
the Pension Plan upon the earlier of one of the following events:
completion of five years of vesting service or the first day of the month in
which you reach age 65.
Close Window
Vesting Service
Determines when you are vested. May include service as a leased
employee.
Close Window
For regular employees, all service with the company, including absences
without pay of up to one year are included.
Non-regular employees earn a year of vesting service for each
anniversary year of employment in which they complete at least 1,000
hours of service.
30
Page left intentionally blank
31
Page left intentionally blank
32
Page left intentionally blank