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.
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.
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.
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.
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 grandfathered features below.
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