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Q1 ConocoPhillips Lump Sum Payments Will Drop, 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 2024 January 4.89% 5.14% 5.29%
ConocoPhillips All 2023 January 4.74% 4.98% 4.84%

ConocoPhillips employees will see a reduction in their lump-sum if they retire in Q1 2023 as opposed to Q4 2022. 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.

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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.

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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 2024 January 4.89% 5.14% 5.29%
ConocoPhillips All 2023 December 5.01% 5.13% 5.15%
ConocoPhillips All 2023 November 5.5% 5.76% 5.83%
ConocoPhillips All 2023 October 5.77% 6.14% 6.19%
ConocoPhillips All 2023 September 5.58% 5.66% 5.56%
ConocoPhillips All 2023 August 5.45% 5.52% 5.43%
ConocoPhillips All 2023 July 5.35% 5.28% 5.1%
ConocoPhillips All 2023 June 5.26% 5.23% 5.16%
ConocoPhillips All 2023 May 4.91% 5.15% 5.34%
ConocoPhillips All 2023 April 4.77% 4.97% 5.13%
ConocoPhillips All 2023 March 5% 5.2% 5.15%
ConocoPhillips All 2023 February 4.99% 5.12% 4.96%
ConocoPhillips All 2023 January 4.74% 4.98% 4.84%
ConocoPhillips All 2022 December 4.84% 5.15% 4.85%
ConocoPhillips All 2022 November 5.09% 5.6% 5.41%
ConocoPhillips All 2022 October 5.1% 5.83% 5.68%
ConocoPhillips All 2022 September 4.48% 5.26% 5.07%
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%

For more information you can reach the plan administrator for ConocoPhillips at p.o. box 4783 Houston, TX 77079; or by calling them at 918-661-6199.

Disclaimer: Securities offered through Osaic Wealth Inc, member FINRA/SIPC. Investment advisory services offered through The Retirement Group, LLC. a registered investment advisor not affiliated with Osaic Wealth Inc. *We are not affiliated with or endorsed by ConocoPhillips. This message and any attachments contain information, which may be confidential and/or privileged, and is intended for use only by the intended recipient. Any review, copying, distribution or use of this transmission is strictly prohibited. If you have received this transmission in error, please (i) notify the sender immediately and (ii) destroy all copies of this message. The Retirement Group, LLC is registered to conduct advisory business in the following states:  AZ, CA, CO, FL, ID, IL, IN, LA, MD, MI, MO, NE, NV, NJ, NY, NC, OK, OR, PA, SC, SD, TX, UT, VA, WA. Office of Supervisory Jurisdiction: 5414 Oberlin Dr #220, San Diego CA 92121 (800) 900-5867

Company:
ConocoPhillips*

Plan Administrator:
p.o. box 4783
Houston, TX
77079
918-661-6199

*Please see disclaimer for more information