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Information for
Participants Who Worked for Mobil Corporation
- How this Applies to You
- Grandfathered Features
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Information for Participants Who Worked for Mobil Corporation
Q. What do I need to know about the heritage Mobil grandfathered features?
A. Other sections of this
publication describe the plan benefits and features applicable to your
entire account balance. However, some features that you had as a heritage
Mobil participant are grandfathered and will continue to apply, but
only to a portion of your Savings Plan account.
These grandfathered features relate specifically to
withdrawals and
distributions from this
portion of the Savings Plan.
Some of the features you had as a heritage Mobil participant
are grandfathered. The grandfathered features only apply to any heritage Mobil protected
balance you have in your Savings Plan account. Here is how protected and
non-protected balances are determined:
- "Protected" Balance
is the market value of the Mobil portion of your Savings Plan account
at harmonization. The harmonization date was May 1, 2003. This balance may be
reduced by withdrawals and distributions. If the total market value
of your Savings Plan account falls below your protected balance, your
protected balance will be limited to the market value.
- "Non-Protected" Balance is
the amount of your Savings Plan account balance in excess of your protected
balance. Generally, it includes the ExxonMobil portion of your Savings
Plan account, if any, plus post-harmonization contributions, or any
post harmonization earnings across your entire account (including post-harmonization
earnings on the heritage Mobil protected balance).
Please remember that all of the Savings Plan provisions
discussed in this publication and the grandfathered features on the next pages
apply to these protected balances.
| ExxonMobil Savings Plan Balance |
| Protected Balance |
Non-Protected Balance |
| Heritage Mobil balance as a dollar amount
at harmonization. Most withdrawals/distributions will reduce your
protected balance. |
All earnings on protected
balance post harmonization. |
Existing ExxonMobil Savings
Plan balance at harmonization and all earnings post harmonization. |
Future contributions and all
earnings on those contributions. |
How this Applies to You
The grandfathered features apply only to your protected balance.
Most withdrawals or distributions you take will reduce this balance.
Once your protected balance is depleted, the grandfathered features
will no longer be available to you. Please note that your protected
balance in the Savings Plan may be embedded in any or all of the
four Savings Plan accounts.
If you only had a balance in the Mobil portion of
the Savings Plan at harmonization, any post-harmonization earnings
on this heritage Mobil protected balance will create a non-protected
balance.
Grandfathered Features
Withdrawals
Heritage Mobil participants may make cash or stock
withdrawals of
their protected balance from any account. Participants may access
any contributions, including company contributions. These withdrawals
are available twice per year, with a third available for a total
withdrawal.
Distributions
Heritage Mobil participants may request two partial distributions
from their protected balances each calendar year with no minimum
amount required.
Heritage Mobil
terminated employees may defer distribution
on the protected balances past age 65. If you reach age 70-1/2 and
your account is still deferred, minimum required distributions will
be made as required by law. Your non-protected balance, however,
will be distributed to you at age 65.
If you receive a partial distribution (or any post-separation
withdrawal or distribution) in any year before the year in which
you receive your entire Savings Plan balance, this partial distribution
will not be a lump-sum distribution eligible for favorable lump-sum
tax treatment. Favorable lump-sum treatment also may not be available
to you when you subsequently elect a total distribution in another
tax year.
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All grandfathered features supersede any conflicting Savings
Plan provisions. For example, the Savings Plan allows one
partial distribution per year ($5,000 minimum) for
retirees.
The grandfathered feature allows all former Mobil employees
two partial distributions per year from protected balances
with no minimum amount required. A retiree who has a protected
balance can only have two, not three, partial distributions
in a year, and no minimum amount is required.
See summary on page 42-43.
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The following chart highlights the grandfathered features of your protected
balance. Use of these features generally will reduce your protected balance.
Suspensions, if applicable, will include both your contributions and the
company match.
| Heritage
Mobil Grandfathered Features |
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| Withdrawals |
| Maximum Without Suspension |
Eligible group: |
Active employees, terminated employees,
and retirees. |
Funds available: |
Pre-1987 after-tax employee contributions,
plus post-1986 after-tax employee contributions and earnings,
transferred 1988 ESOP after-tax employee contributions and
earnings, and rollover contributions. |
Suspension: |
None. |
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| Maximum With Three-Month Suspension |
Eligible group: |
Active employees. |
Funds available: |
Funds available in the Maximum Without Suspension
withdrawal type, plus up to 50% of your After-Tax Account,
General Account
and Stock Match Account remaining protected
balances. |
| Suspension: |
Three-month suspension applies. |
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| Maximum With Six-Month
Suspension |
Eligible group: |
Active employees. |
Funds available: |
Funds available in the Maximum With Three-Month
Suspension withdrawal type, plus greater than 50% of your
After-Tax Account, General Account and Stock Match Account
remaining protected balances. Funds available also include
your Before-Tax Account protected balance if you are at least
age 59-1/2. |
| Suspension: |
Six-month suspension applies. |
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| Total Protected
Benefit with Six-Month Suspension |
Eligible group: |
Active employees. |
Funds available: |
100% of funds available in the Maximum With Six-Month
Suspension withdrawal type. |
| Suspension: |
Six-month suspension applies. |
Requirements: |
Must take 100% of available funds. |
| Other: |
Available as a third withdrawal in the same year. |
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| 59-1/2 Without Suspension |
Eligible group: |
Active employees. |
Funds available: |
Before-Tax Account protected balances. |
| Suspension: |
None. |
Requirements: |
Available only if age 59-1/2 or older. |
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| Distributions |
| Partial Distributions |
Eligible group: |
Terminated employees (non-retirees). |
Funds available: |
Up to entire remaining protected balance available. |
| Frequency: |
Twice in a calendar year. |
Other: |
No minimum amount; can defer distribution past
age 65 to 70-1/2. |
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| Eligible group: |
Retirees. |
| Funds available: |
Up to entire remaining protected balance available. |
| Frequency: |
Twice in a calendar year. |
| Other: |
No minimum amount. |
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The
Savings Plan Web site at http://xomsavings.ingplans.com
and the Savings Telephone
Service (STS) at 877-966-4015 are available for account information and
transactions.
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