Getting Ready for Retirement (Following reaching Age 50 with 10 years vesting service)

In general, you are eligible for benefits under the Retirement Plan provided you are at least age 50 and have 10 or more years of vesting service. However, note that all employees with at least three years of vesting service have a vested benefit in the Retirement Plan. The value of this benefit, however, can vary based on your employment history including, but not limited to, your age, years of service with the Company, and your pay.

Note: Depending on your personal situation, it might “pay to delay” your retirement from one to several years. A delay could help lower your retiree Health Plan premiums, continue the Company match in the Thrift Plan, potentially grow your benefit in the Retirement Plan and more!

Below are important considerations if you end employment with Marathon Oil and are retirement eligible. If you are uncertain as to whether you qualify to be a retiree, please contact the Marathon Oil Benefits Department at 1-855-652-3067.

  • Contact the Fidelity Benefits Center at 1-800-841-0213 at least 45 days, but not more than 180 days, prior to your desired “benefit commencement date.” generally the same as your retirement date. (Note: the benefit commencement date does not refer to the actual disbursement date of retirement monies. See the “Retirement Plan” section below.)
    • Retirements are effective only on the first day of any month.
  • When contacting Fidelity, you should ask to be assigned to a Retirement Benefits Coordinator (RBC). The RBC will serve as a single point of contact throughout the retirement process, from answering initial questions and starting the process through the actual payment of benefits.
  • Fidelity’s RBC will walk you through the benefit election process over the phone. If you are not ready to make your benefit elections at that time, the RBC will initiate a benefit modeling statement (which will be mailed to you) to assist you in the benefit election process.
  • Once your benefit elections have been communicated (via telephone) to Fidelity you will receive a Pension Benefit Election Authorization statement outlining your benefit elections to sign. Note: This mailing may include additional forms to complete, depending on your form of benefit election (e.g. a spousal consent form).
  • Fidelity must receive your signed Pension Benefit Election Authorization statement (along with any other forms, e.g. spousal consent) in good order prior to your benefit commencement date. To ensure there is no delay in processing your request, return your completed forms promptly (two to four weeks prior to your retirement date) in order to allow Fidelity adequate time for review and processing.
    • Note: If you are contemplating retirement effective January 1, but your final decision will be based on the lump sum interest rate determined the previous December 15, you should still request forms for the January 1 benefit commencement date at least 45 days in advance. You can then wait to return the completed forms after the December 15 date when the new interest rate is determined. Please keep in mind that the January 1 retirement lump sums are paid out at the “lower of” the current interest rate or the following year’s rate (determined December 15.)
  • Contact the Marathon Oil Benefits Department at 1-855-652-3067. The Marathon Oil Benefits Department can provide you with information to consider regarding the effect of your retirement on other benefit plans.
  • Typically, employees notify organizational management one to three months prior to their planned retirement date. Management will contact Human Resources, who will then make arrangements with you for an exit interview.
    • Since the company considers retirement discussions confidential, Fidelity will not notify Marathon Oil of your intention to retire until your signed forms are received by them.
    • Officers have different notification requirements.
  • Remember to update Marathon Oil with your contact information (including your address and phone number) throughout your retirement by calling the Marathon Oil Benefits Department at 1-855-652-3067.
  • Please note that if you have a retirement benefit payable from outside of Marathon Oil’s control group (i.e. Ashland / USS), you will need to contact them directly to begin their retirement process.

Benefits

Most of your Marathon Oil benefits cease as of your retirement date. Below is a brief summary of the benefits that will continue upon retirement. For more detailed information on how your benefits are affected by your upcoming retirement, go to www.MRObenefits.com and choose “Retiree Benefits.”

  • Thrift Plan: As a retired member, you can...
    • rollover your Retirement Plan benefit into the Thrift Plan
    • transfer assets between funds
    • change beneficiaries
    • maintain loans/take new loans
    • initiate retired member withdrawals
    • initiate installment withdrawals
    • contact Fidelity for additional information regarding your Thrift Plan and options available to you.
  • Retirement Plan: Retirement benefit payments will commence approximately 5 weeks from your benefit commencement date. This timing ensures that all of your pay can be appropriately included in the calculation of your final benefit.
    • Note: Although you are not required to take distribution of your retirement plan benefits at retirement, please be aware that should you die after you have retired, but prior to returning properly completed paperwork to Fidelity, benefits will be paid as follows: if married, your spouse will receive 50% of the monthly amount that you would have been eligible to receive had you elected a Single Life Annuity, to be effective the first of the month in which you died. If single, no benefit will be payable unless you had made employee contributions to the Plan.
  • Stock Options, Restricted Stock, and Annual Cash Bonus Plan: The following table describes the provisions associated with Stock Options, Restricted Stock, and Annual Cash Bonus based on Termination status for Non-Officers:

    Termination Stock Options Restricted Stock Annual Cash Bonus Plan
    Retirement Forfeit unvested; exercise vested for up to earlier of 3 years from retirement or option expiration date Forfeit unvested Consult the Administrative Guidelines posted for current plan year.

  • Health Plan: If you are eligible for Health Plan coverage at retirement, you will need to fill out the Pre-Age 65 Retiree, Spouse, and Dependents Benefit Enrollment form to retain health coverage in retirement. You have the option to waive and/or change coverage upon your retirement date. If you or your spouse are age 65 or older at the time you retire, your coverage must be changed to the Marathon Oil Medicare Supplement Plan administered by One Exchange. Your Health Reimbursement Account subsidy will be based on the percent that you have accrued as of your last day of employment.
  • Life Insurance Coverage - Level Premium Plan Only. (This plan was closed to new members on June 1, 1994): Coverage continues after retirement at no cost to the retiree. Coverage will be reduced in equal amounts over 40 months (including the first month of retirement) to 25% of the amount of insurance in force immediately prior to retirement, but not less than $2,000. For information regarding accessing your current beneficiary designation, click here.
  • Pre-65 Retiree Dental Plan and Pre-65 Retiree Vision Plan: You are eligible to enroll in these plans if you are a retiree under age 65, and you were eligible for Health Plan coverage at the time of retirement. If interested, enrollment must be made within 31 days of retirement.

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.