Full-Time to Part-Time Employment

This Tip Sheet is a summary of how your benefits may be impacted if your status changes from regular full-time to regular part-time. To review the Part-Time Employment Policy, please click here. Please note that your manager must approve your request to change to Part-Time Employment.

  • Health, Dental and Vision: If you are retirement eligible, then you remain eligible for 100% of the Company subsidy amount for regular full-time employees. If you are not retirement eligible, then your premiums will be 50% of the Company subsidy amount for regular full-time employees.
  • Level Life Insurance Premiums: Your coverage and premiums will remain the same. This plan was closed to new participants 6/1/1994.
  • Life Insurance: 
    • Basic Life – Your coverage amount will change based on your new salary.
    • Optional Life- You may want to adjust your coverage during Benefits Open enrollment.
  • Vacation: Your vacation benefit will be based on your vacation eligibility multiplied by a 40 hour work week multiplied by the number of hours scheduled divided by 40 hours.
    • For example: a ten-year employee with four weeks vacation eligibility working 20 hours will have 80 hours of vacation eligibility during the next year. Your accrued vacation during the year you change to part-time employment will not change.
    • Please note that if you are retiring from part-time employment status, your vacation payout may not be as large as retiring from full-time employment status.
  • Sick Benefit: Your sick benefit will be figured based on a formula including your sick benefits and your part-time employment schedule.
    • For example: a ten-year employee with 14 weeks of 100% sick benefit working 20 hours per week will have 280 hours of 100% sick benefit.
      • Note: the 60% benefit will reduce by the same formula
  • Holidays: You remain eligible for all Company holidays including the floating holiday. Your pay for the holiday will be the daily average of your weekly schedule.
  • Retirement Plan: 
    • The Retirement Plan benefit cannot be taken until separating from Marathon Oil. Therefore, a participant will not be able to draw on this benefit to supplement their income in part-time employment.
    • In order to have a vested Retirement Plan benefit, a participant must have 3 years of vesting service. If the participant has not achieved at least 3 years of vesting service prior to switching to part-time employment, the participant’s vesting service will only grow if the participant works at least 1000 hours per calendar year (other situations can apply if there is a termination event during the year). Likewise in order to be retirement eligible as defined in the Retirement Plan, a participant needs to have 10 years of vesting service at termination. If the participant has not achieved at least 10 years of vesting service prior to switching to part-time employment, the participant’s vesting service will only grow if the participant works at least 1000 hours per calendar year (other situations can apply if there is a termination event during the year).
    • Regarding the Cash Balance formula of the Retirement Plan benefit, a participant would continue to be eligible for their 7 -11% annual pay credit after switching to part-time employment. However the pay credit amount is based on a percentage of pensionable earnings, so a participant making less would likewise receive a lower pay credit amount than in previous years. Cash Balance service is used to determine whether a participant receives 7, 9, or 11%. Cash Balance service grows by 1/12 of a point for each month in which a participant works at least one hour. Since all part-time and full-time employees work at least 1 hour per month, there would be no impact to the growth of Cash Balance service.
    • Regarding the legacy formula of the Retirement Plan benefit:
      • Participation in legacy formula of the Retirement Plan benefit was frozen as of 12-31-2009, so there is no impact to this component of the benefit calculation if changing to part-time employment.
      • Final average pay is the highest 36 consecutive months in the last 10 years. Final average pay was frozen as of 07-06-2015 so there is no impact to this component of the benefit calculation if changing to part-time employment.
      • The lump sum interest rate used to calculate the legacy formula of the Retirement Plan benefit will be the rate in effect at the time of the participant’s actual separation from service- not when the participant moves from full-time to part-time employment.
  • Thrift Plan: 
    • There are no impacts to the primary components of the Thrift Plan in that a part-time employee can still participate, receive company matching contributions, take loans, take in-service withdrawals, and utilize other plan features. However a participant’s contribution and the company’s matching contribution are based on eligible earnings (as defined in the Thrift Plan Text); so, a participant making less will likewise see a decrease in their Thrift Plan contributions, assuming they do not change their deferral percentages. Therefore, a participant might want to evaluate their Thrift Plan contribution percentage and the effect it would have on their part-time paycheck as well as the effect this would have on their retirement savings goals.
    • In order to be vested in Thrift Plan company match contribution, a participant must have 3 years of vesting service. If the participant has not achieved at least 3 years of vesting service prior to moving to part-time employment, the participant’s vesting service will only grow if the participant works at least 1000 hours per calendar year (other situations can apply if there is a termination event during the year).
    • If a participant is currently repaying a Thrift Plan loan they should be aware that moving from full-time to part-time employment will reduce their paycheck, yet their loan repayment amount will remain the same.
    • An employee moving from full-time to part-time employment may wish to supplement their reduced pay with retirement savings from the Thrift Plan. As a part-time employee, the Thrift Plan does allow for in-service withdrawals from certain sources (as specified in the Thrift Plan text). However, part-time employees are considered active employees, and thus are not permitted to establish installments.

Questions? Please contact your Human Resources Consultant or the Benefits Office at MROBenefitsHelp@MarathonOil.com

No portion of this benefits summary is intended to change the terms of the plans and policies, or the official texts that control them. If there is any inconsistency between this summary and the official texts of the plans and policies, the official texts will prevail.