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Q4 ConocoPhillips Lump Sum Payments Likely to Fall, With Interest Rates Continuing to Rise


Company Name For plan years beginning in Year Month First Segment Second Segment Third Segment Plan Type
ConocoPhillips All 2022 August 3.79% 4.62% 4.69%
ConocoPhillips All 2021 August 0.66% 2.5% 3.12%

ConocoPhillips employees considering the lump sum option on their pension payment may have an opportunity to take advantage of lower interest rates in Q3 2022. With Q4 projecting to have higher rates, retiring during Q3 may be the last opportunity to avoid a reduced lump-sum.May's segment rates were just released and they are 3.23%/4.59%/4.69%. These rates increased by about 0.3% (in the second segment) since April, which is a very large increase for a single month. 

Should you desire to take your pension as a lump sum, ConocoPhillips will use interest rates and your age to calculate your lump sum payment. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship (except for Cash Balance Pension Lump Sum payouts).


On average, a 1% decline in interest rates results in roughly an 8%-12% increase to your pension lump sum (varies by age). Conversely, a 1% increase in interest rates results in roughly an 8%-12% drop in your lump sum pension value. Now that the May Corporate Bond Segment Rates are published, we encourage all employees that fall under one of these defined-benefit pension plans to re-run their pension projections to find out whether or not their lump-sum has decreased. We also encourage you to keep an eye on future rates as they seem to be trending upward. This is especially important if you are approaching retirement or already off payroll. You potentially may see a change in your pension lump sum.

Remember, you do not have to commence your pension benefit directly after you retire unless you are age 65 or older at retirement. It may be advisable to defer the election of your pension benefit well beyond your retirement date, although you cannot commence your pension benefit prior to your retirement date in most cases.

ConocoPhillips Retirement Plan


As it turns out, there are 8 different pension plans at ConocoPhillips, called Titles. Most
employees fall under either the Phillips Retirement Income Plan (Title I), the Retirement Plan of Conoco (Title IV), The Burlington Resources Inc. Pension Plan (Title VI), or the ConocoPhillips Cash Balance Plan (Title II). If you don't fall under one of these plans or aren't sure which plan you fall under, please reach out to one of our COP-focused advisors for further guidance.

 

Considering how sensitive Titles I, IV, and VI are to interest rates, The Retirement Group puts an immense amount of effort into tracking these rates and educating employees on how they affect pension lump sums in an effort to help individuals potentially increase their pension benefit when they leave the company.

Full Interest Rate update table for ConocoPhillips employees

Company Name For plan years beginning in Year Month First Segment Second Segment Third Segment Plan Name
ConocoPhillips All 2022 August 3.79% 4.62% 4.69%
ConocoPhillips All 2022 July 3.67% 4.67% 4.73%
ConocoPhillips All 2022 June 3.64% 4.8% 4.78%
ConocoPhillips All 2022 May 3.23% 4.59% 4.69%
ConocoPhillips All 2022 April 3% 4.22% 4.17%
ConocoPhillips All 2022 March 2.44% 3.71% 3.94%
ConocoPhillips All 2022 February 1.88% 3.35% 3.7%
ConocoPhillips All 2022 January 1.41% 3.02% 3.36%
ConocoPhillips All 2021 December 1.16% 2.72% 3.1%
ConocoPhillips All 2021 November 1.02% 2.72% 3.08%
ConocoPhillips All 2021 October 0.87% 2.74% 3.16%
ConocoPhillips All 2021 September 0.7% 2.55% 3.06%
ConocoPhillips All 2021 August 0.66% 2.5% 3.12%
ConocoPhillips All 2021 July 0.63% 2.51% 3.1%
ConocoPhillips All 2021 June 0.63% 2.7% 3.32%
ConocoPhillips All 2021 May 0.61% 2.84% 3.54%
ConocoPhillips All 2021 April 0.67% 2.84% 3.47%
ConocoPhillips All 2021 March 0.69% 2.92% 3.69%
ConocoPhillips All 2021 February 0.51% 2.54% 3.45%
ConocoPhillips All 2021 January 0.5% 2.38% 3.17%
ConocoPhillips All 2020 December 0.51% 2.26% 3.01%
ConocoPhillips All 2020 November 0.53% 2.31% 3.09%
ConocoPhillips All 2020 October 0.54% 2.38% 3.28%
ConocoPhillips All 2020 September 0.51% 2.31% 3.15%

For more information you can reach the plan administrator for ConocoPhillips at P.O. BOX 4783 Houston, Texas 77079; or by calling them at 918-661-6199.

Company:
ConocoPhillips*

Plan Administrator:
P.O. BOX 4783
Houston, Texas
77079
918-661-6199

*Please see disclaimer for more information

Information regarding the lump-sum payout may or may not apply to specific employees based on factors such as mergers, acquisitions, years of service, age, or the date an employee was hired.