Top Pension Questions for Marathon Petroleum Employees
These are the most frequently asked questions for Marathon Petroleum employees from our weekly webinars.
1. Question:
What provisions does Marathon Petroleum Company LP have in place to ensure that employees are adequately informed about their retirement benefits, and how can employees navigate these provisions to optimize their retirement outcomes with Marathon Petroleum Company LP?
Answer:
Marathon Petroleum Company LP ensures that employees are informed about their retirement benefits through detailed documents such as the Summary Plan Description (SPD). Employees can access and review this document, which provides key details about their benefits and options. They can also contact Fidelity, the plan’s recordkeeper, via the NetBenefits website or through a customer service line for personalized support. To optimize their retirement outcomes, employees are encouraged to regularly review benefit estimates and adjust their retirement strategies based on updated information provided by the company.
2. Question:
How does Marathon Petroleum Company LP determine eligibility for participation in its retirement plans, and what specific categories of employees are excluded from participating in the Marathon Petroleum Company LP retirement benefits program?
Answer:
Eligibility for Marathon Petroleum Company LP’s retirement plans is determined based on employment classification. Employees must be classified as full-time or part-time employees of Marathon or another participating employer. Specific categories, such as leased employees, independent contractors, and employees covered by collective bargaining agreements not explicitly granting plan participation, are excluded from the program. Active participation begins automatically once employees meet the eligibility requirements.
3. Question:
In what ways can employees utilize the new In-Service Distribution Feature introduced by Marathon Petroleum Company LP, and what are the implications of this feature for employees approaching retirement age who wish to access their benefits while still actively employed?
Answer:
The new In-Service Distribution Feature allows employees aged 59½ or older to take a distribution from their Legacy Retirement Benefit and Catlettsburg Benefit while still employed. This feature provides flexibility for those who wish to access some of their benefits as they approach retirement without needing to terminate employment. For employees nearing retirement, this feature helps with financial planning by offering early access to benefits(Marathon Petroleum Comp…).
4. Question:
What strategies does Marathon Petroleum Company LP recommend for employees nearing retirement to maximize their benefit calculations, particularly regarding their Cash Balance Retirement Benefit and Legacy Retirement Benefit?
Answer:
Marathon Petroleum recommends that employees nearing retirement regularly use tools like the Fidelity NetBenefits modeling system to estimate their Cash Balance and Legacy Retirement Benefits. Additionally, understanding the interest crediting rates and applying early for benefit commencement can optimize the final benefit calculation. Employees should focus on understanding how their Pay Credits and service years contribute to their final benefit to make informed decisions.
5. Question:
How does Marathon Petroleum Company LP's approach to tax withholding on lump sum distributions reflect the current IRS regulations for 2024, and what are the potential tax implications for employees withdrawing their retirement funds?
Answer:
For lump-sum distributions, Marathon Petroleum adheres to IRS regulations, applying a mandatory 20% withholding on the taxable portion of the distribution unless it is directly rolled over to another tax-qualified plan. Employees under 59½ may be subject to an additional 10% early withdrawal penalty unless specific exceptions apply. These tax implications highlight the importance of careful financial planning when deciding to take lump-sum distributions(Marathon Petroleum Comp…).
6. Question:
How can employees at Marathon Petroleum Company LP designate beneficiaries for their retirement benefits, and what is the importance of maintaining updated beneficiary information throughout their employment?
Answer:
Employees at Marathon Petroleum can designate beneficiaries for their retirement benefits using forms available through the Fidelity NetBenefits website. It is crucial for employees to keep their beneficiary information up to date to ensure that their retirement assets are distributed according to their wishes, particularly in case of significant life changes such as marriage or divorce(Marathon Petroleum Comp…).
7. Question:
What processes are in place at Marathon Petroleum Company LP for employees to file claims and appeals regarding their retirement benefits, and how do these processes align with ERISA regulations?
Answer:
The process for filing claims and appeals regarding retirement benefits is aligned with ERISA regulations. Employees must first contact Fidelity, and if unsatisfied, they can submit a formal claim to the Plan Administrator. If the claim is denied, employees have the right to appeal within 60 days. The Plan Administrator has the final authority to decide on appeals(Marathon Petroleum Comp…).
8. Question:
How does Marathon Petroleum Company LP account for military service in the calculation of retirement benefits, and what are the specific provisions that protect the retirement rights of employees who serve in the military?
Answer:
Marathon Petroleum recognizes military service under the Uniformed Services Employment and Reemployment Rights Act (USERRA), ensuring that service members' retirement benefits are protected. Employees returning from military service receive service credits for their time in the military, ensuring that their retirement benefits are not negatively impacted(Marathon Petroleum Comp…).
9. Question:
What are the features of the spousal consent requirement in relation to the retirement benefits offered by Marathon Petroleum Company LP, and how does it affect the distribution of benefits to employees' spouses?
Answer:
Marathon Petroleum requires spousal consent for retirement benefit options that do not include a joint and survivor annuity. This requirement ensures that spouses are aware of the distribution method chosen by the employee, which may affect their long-term financial security. The spousal consent must be notarized or signed in the presence of an authorized Plan representative(Marathon Petroleum Comp…).
10. Question:
If employees have questions regarding their retirement benefits, what specific steps should they take to contact Marathon Petroleum Company LP for assistance, and what resources are available to support them in understanding their retirement plans?
Answer:
Employees with questions about their retirement benefits should contact the Marathon Benefits Center at Fidelity by phone or through the NetBenefits website. Fidelity provides a wide range of resources, including benefit modeling tools and personalized assistance, to help employees understand their retirement plans and make informed decisions(Marathon Petroleum Comp…).
11. Question:
How does the Marathon Petroleum Company LP ensure that employees understand the differences between the Cash Balance Retirement Benefit and the Legacy Retirement Benefit in the context of planning for retirement?
Answer:
Marathon Petroleum provides detailed explanations in its Summary Plan Description (SPD) on both the Cash Balance and Legacy Retirement Benefits. The Cash Balance Benefit, introduced for post-2009 employment, offers Pay and Interest Credits, whereas the Legacy Benefit, frozen as of December 31, 2009, is based on a Final Average Pay formula. Employees can access benefit estimates through the Fidelity NetBenefits website to compare payout calculations and understand the factors influencing each benefit(Marathon Petroleum Comp…).
12. Question:
What are the implications for Marathon Petroleum Company LP employees who are considering an in-service distribution of their Legacy Retirement Benefit?
Answer:
Employees aged 59½ or above can take an in-service distribution of their Legacy Retirement Benefit without having to terminate employment, effective November 1, 2022. This allows employees to receive their Legacy Benefit early, potentially aiding in strategic retirement planning(Marathon Petroleum Comp…).
13. Question:
In light of the potential changes to the Marathon Petroleum Company LP’s retirement plans, how can employees stay informed about these changes and engage with management regarding their concerns or suggestions?
Answer:
Marathon Petroleum communicates any updates or changes through Summary of Material Modifications (SMM) documents and the Fidelity NetBenefits platform. Employees are encouraged to regularly review these resources and can contact the Marathon Benefits Center for any concerns or suggestions about retirement plan changes(Marathon Petroleum Comp…).
14. Question:
How can Marathon Petroleum Company LP employees navigate the complexities of determining their vested benefits within the plan, and what resources are available to assist them in this process?
Answer:
Vesting typically occurs after three years of service. Employees can monitor their vesting status and request personalized assistance from the Marathon Benefits Center or Fidelity. Tools like the Fidelity NetBenefits website provide valuable resources for calculating vested benefits(Marathon Petroleum Comp…).
15. Question:
What considerations should Marathon Petroleum Company LP employees keep in mind when designating beneficiaries for their retirement benefits, especially regarding the potential impact on heirs?
Answer:
Employees should carefully consider their choice of beneficiaries and its potential impacts, especially when designating non-spouse beneficiaries. Spousal consent is required for certain designations, and employees can update beneficiary information through Fidelity NetBenefits(Marathon Petroleum Comp…).
16. Question:
How does the Marathon Petroleum Company LP plan protect employee benefits under ERISA, and what rights do employees have if they feel their benefits have not been administered correctly?
Answer:
ERISA ensures that employee benefits are protected, and the Plan Administrator handles claims. Employees who believe their benefits are not being administered correctly can follow the claims and appeals process outlined in the SPD. This includes filing formal claims through Marathon’s Plan Administrator(Marathon Petroleum Comp…).
17. Question:
How can Marathon Petroleum Company LP retirees ensure that they are maximizing their retirement income, particularly in balancing the Cash Balance Retirement Benefit with any additional income sources?
Answer:
Employees are advised to balance their Cash Balance Retirement Benefit with other income sources, including Social Security. The Fidelity NetBenefits tool provides estimations for retirement benefits, allowing employees to develop a comprehensive post-retirement financial plan(Marathon Petroleum Comp…).
18. Question:
What guidelines does Marathon Petroleum Company LP provide regarding the recovery of overpayments in retirement benefits, and how can employees address any discrepancies they believe may have occurred?
Answer:
Marathon Petroleum outlines protocols for addressing overpayments in retirement benefits, including repayment obligations. Employees can report discrepancies to the Plan Administrator, and recovery methods may include reducing future payments or direct repayment(Marathon Petroleum Comp…).
19. Question:
What are the specific requirements for Marathon Petroleum Company LP employees to access their retirement benefits after leaving the company, and how do those requirements differ between the two types of benefits?
Answer:
Employees can begin receiving their vested Cash Balance or Legacy Retirement Benefits after terminating employment. The SPD explains that the timing of payments may vary depending on the benefit type and the employee’s age, with distinctions made between early retirement, lump sum, and annuity options(Marathon Petroleum Comp…).
20. Question:
How can employees of Marathon Petroleum Company LP contact the Human Resources department to learn more about their retirement benefits and the details contained in the Summary Plan Description document?
Answer:
Employees can contact the Marathon Benefits Center at Fidelity at 1-866-602-0595 or access details via the Fidelity NetBenefits website to learn more about retirement benefits and request copies of the SPD or other relevant documents(Marathon Petroleum Comp…).
21. Question:
How does the Marathon Petroleum Retiree Health Plan differ for employees who retire before age 65 compared to those who retire after?
Answer:
Employees retiring before age 65 can enroll in the Pre-65 Retiree Health Plan, with Anthem BlueCross BlueShield administering the plan. Retirees are covered until they turn 65, at which point their coverage ends. For retirees aged 65 or older, coverage transitions to Medicare, and supplemental options are available through Via Benefits. Eligibility is based on years of service and hire date, with special rules applying to those hired after January 1, 2008(Marathon_Petroleum_2021…).
22. Question:
In terms of health savings accounts, what are the guidelines for contributions to the Health Savings Account (HSA) for retirees at Marathon Petroleum?
Answer:
Marathon Petroleum offers an HSA for employees enrolled in the Saver HSA option. Retirees can contribute to their HSA up to the IRS limit ($3,600 for individual coverage and $7,200 for family coverage in 2021, with an additional $1,000 catch-up contribution for those over 55). These funds can be used tax-free for qualified medical expenses(Marathon_Petroleum_2021…).
23. Question:
What options does Marathon Petroleum provide for health plan benefits to retirees who might be covered by Medicare?
Answer:
At age 65, retiree health coverage through Marathon Petroleum ends, and retirees must enroll in Medicare. Via Benefits provides supplemental plans, including Medicare Advantage, Medigap, and Part D options. The company offers a subsidy for legacy employees to help with premiums, which is deposited into a Health Reimbursement Account (HRA)(Marathon_Petroleum_2021…).
24. Question:
For employees considering retirement, what are the financial implications of working an additional year at Marathon Petroleum?
Answer:
Retiring later at Marathon Petroleum can result in lower health plan premiums, as retirees earn 4% of the company subsidy for each year worked after age 30. Additionally, retirement plan benefits and Thrift Plan accruals will increase, maximizing retirement income(Marathon_Petroleum_2021…).
25. Question:
Describe the process and deadlines for enrolling in or waiving coverage in the Pre-65 Retiree Dental and Vision Plans provided by Marathon Petroleum.
Answer:
Retirees under age 65 must enroll in or waive dental and vision plans within 31 days of retirement. Once waived, retirees may re-enroll only during the annual enrollment period, provided they maintain continuous coverage elsewhere(Marathon_Petroleum_2021…).
26. Question:
What procedures should retirees at Marathon Petroleum follow to ensure they can continue their life and accidental death and dismemberment (AD&D) insurance coverage after retirement?
Answer:
Upon retirement, retirees can convert or port their existing life and AD&D insurance policies through MetLife. Retirees receive a packet detailing their options, including purchasing individual life policies without evidence of insurability(Marathon_Petroleum_2021…).
27. Question:
Can you elaborate on the significance of the Marathon Petroleum Thrift Plan and the options available to retirees regarding withdrawals or distributions?
Answer:
Retirees can choose to leave funds in the Thrift Plan, take a lump sum distribution, roll the balance into an IRA, or set up installment payments. Withdrawals may have tax implications, including a potential 10% penalty for early distributions before age 55 or 59½(Marathon_Petroleum_2021…).
28. Question:
How does the COBRA continuation coverage work for employees who are retiring from Marathon Petroleum?
Answer:
Retirees can opt for COBRA continuation coverage for up to 18 months at a higher premium. COBRA is an option for health, dental, and vision plans, but retirees need to assess whether COBRA or the retiree-specific plans offer better value(Marathon_Petroleum_2021…).
29. Question:
In what ways can employees of Marathon Petroleum get assistance if they have questions regarding their retirement benefits?
Answer:
Retirees can contact the MPC Benefits Service Center at 1-888-421-2199 or via email at benefits@marathonpetroleum.com for assistance with health, dental, vision, and life insurance plans. For pension and Thrift Plan questions, retirees should contact Fidelity at 1-866-602-0595(Marathon_Petroleum_2021…).
30. Question:
What are the key components of the retirement benefits checklist provided by Marathon Petroleum, and why is it important for employees to utilize this checklist before their retirement date?
Answer:
Marathon Petroleum provides a checklist to ensure a smooth transition into retirement. The checklist includes contacting the Benefits Service Center, enrolling in or waiving health plans, managing the Thrift Plan, and addressing life insurance portability options. Utilizing this checklist helps retirees ensure all important steps are covered before their retirement date(Marathon_Petroleum_2021…).
31. Question:
What specific steps must Marathon Petroleum employees take to be eligible for the Retiree Health Plan upon retirement, and what factors influence premium costs associated with this plan?
Answer:
Marathon Petroleum employees must be at least age 50 and have 10 years of service to qualify for the Retiree Health Plan. Premiums are influenced by factors such as the number of years of service after age 30, which contribute to a 4% annual company subsidy toward premiums(Marathon_Petroleum_2022…).
32. Question:
How does the 4% accrual method impact an employee's retirement health plan premiums at Marathon Petroleum, and what strategies can employees employ to maximize this benefit over their career?
Answer:
The 4% accrual method helps employees accumulate company subsidies toward their retiree health premiums for each year worked after age 30. Delaying retirement increases the subsidy, thereby reducing premiums in retirement. Employees can maximize this benefit by working more years beyond age 30(Marathon_Petroleum_2022…).
33. Question:
What options are available to Marathon Petroleum employees for managing their Thrift Plan accounts after retirement, and how do withdrawal strategies affect potential tax implications?
Answer:
Marathon Petroleum employees can manage their Thrift Plan accounts by rolling over to an IRA, leaving the funds in the plan, or withdrawing funds. Withdrawals can trigger tax liabilities, including penalties if made before age 55 or 59½, making a well-considered strategy essential(Marathon_Petroleum_2022…).
34. Question:
Can Marathon Petroleum retirees maintain their existing life insurance coverage after retirement, and how can they ensure that their coverage continues seamlessly?
Answer:
Retirees cannot maintain their existing life insurance through Marathon Petroleum, but they can continue coverage via conversion or portability options through MetLife. They should complete the necessary steps within 31 days of retirement to avoid a gap in coverage(Marathon_Petroleum_2022…).
35. Question:
What are the key differences in coverage and premiums between the Classic Option and the Saver HSA Option under Marathon Petroleum's health plans for retirees?
Answer:
The Classic Option has higher premiums but lower deductibles and out-of-pocket maximums compared to the Saver HSA Option. The Saver HSA Option has a higher deductible but lower premiums, making it more suitable for retirees with fewer healthcare expenses(Marathon_Petroleum_2022…).
36. Question:
How does potential eligibility for Medicare at age 65 influence a retiree's options for health coverage at Marathon Petroleum, and what supplemental plans are available?
Answer:
At age 65, Marathon Petroleum retirees become eligible for Medicare, at which point their Retiree Health Plan coverage ends. Retirees can supplement Medicare with private plans, and the company provides a Health Reimbursement Account (HRA) subsidy for legacy employees(Marathon_Petroleum_2022…).
37. Question:
In what ways can Marathon Petroleum employees maximize their retirement bonuses under the Annual Cash Bonus Plan and the Success Through People Plan?
Answer:
Employees can maximize their Annual Cash Bonus Plan and Success Through People Plan bonuses by strategically timing their retirement. Bonuses for retirements during the performance period are paid at target, while those after the period are based on actual performance(Marathon_Petroleum_2022…).
38. Question:
What is the procedure for Marathon Petroleum employees to file a claim or set up coverage under the COBRA provisions after retirement?
Answer:
Marathon Petroleum retirees can file for COBRA to extend their health, dental, and vision coverage for up to 18 months post-retirement. They should compare COBRA costs with retiree plans to decide which option is best(Marathon_Petroleum_2022…).
39. Question:
How can employees at Marathon Petroleum contact the Benefits Service Center to get personalized assistance regarding their retirement benefits, and what resources are available for effective planning?
Answer:
Marathon Petroleum employees can contact the Benefits Service Center at 1-888-421-2199 or via email at benefits@marathonpetroleum.com for personalized assistance. They can also visit the company’s benefits website for detailed retirement planning resources(Marathon_Petroleum_2022…).
40. Question:
What are the critical considerations for Marathon Petroleum employees who experience a change in marital status post-retirement, especially concerning their health and life insurance benefits?
Answer:
If Marathon Petroleum retirees experience a change in marital status, they must update their health and life insurance benefits accordingly. Spousal eligibility and coverage options may vary, and retirees should ensure their beneficiary designations reflect these changes(Marathon_Petroleum_2022…).
41. Question:
How does the retirement benefit structure at Marathon Petroleum Company differ between the Cash Balance Retirement Benefit and the Legacy Retirement Benefit?
Answer:
The Cash Balance Retirement Benefit at Marathon Petroleum Company is a defined benefit plan where your benefit grows with Pay Credits and Interest Credits. It is presented as a notional account balance, offering a lump sum or annuity payout option upon retirement. The Legacy Retirement Benefit is a frozen pension plan based on a formula involving your years of service, Final Average Pay, and estimated Social Security benefit. It offers monthly pension payments, with reduced payments for early retirement before age 62. The Cash Balance plan offers more flexibility with lump-sum options, while the Legacy plan may provide more predictable monthly income, influencing decisions based on the need for liquidity or stable income streams(Marathon_Petroleum_Comp…).
42. Question:
What are the documentation and election requirements that employees need to fulfill in order to initiate their retirement benefits at Marathon Petroleum Company?
Answer:
To initiate retirement benefits at Marathon, employees must submit properly completed election forms, typically starting 45-180 days before the desired commencement date. For both plans, spousal consent is required for certain payout options. The process is critical to avoid delays, as failure to submit forms on time may result in default payment options like annuities(Marathon_Petroleum_Comp…).
43. Question:
As an employee of Marathon Petroleum Company, how can understanding vested benefits impact your financial planning for retirement?
Answer:
Employees at Marathon vest in their benefits after three years of service. Being vested means employees are entitled to benefits even if they leave the company. Understanding this period is crucial, especially when planning to switch employers or retire early, as leaving before being vested may result in forfeiture of benefits(Marathon_Petroleum_Comp…).
44. Question:
In what ways does the recent update regarding in-service distribution for the Legacy Retirement Benefit influence retirement planning for employees at Marathon Petroleum Company?
Answer:
The recent update allows employees aged 59½ and older to take in-service distributions from the Legacy Retirement Benefit. This option provides early access to funds without the need to terminate employment, giving employees more control over their financial planning while still working(Marathon_Petroleum_Comp…).
45. Question:
How can employees at Marathon Petroleum Company effectively navigate the claims and appeals process if their claim for a retirement benefit is denied?
Answer:
If a retirement benefit claim is denied, employees can file a formal written appeal within 60 days. The Plan Administrator reviews the claim and provides a decision within 60 days, with an option to extend the review period to 120 days if necessary. Employees have access to all relevant documents during the appeal(Marathon_Petroleum_Comp…).
46. Question:
What are the implications of the Internal Revenue Code limits on annual benefits and compensation for employees at Marathon Petroleum Company?
Answer:
Marathon Petroleum’s retirement plans are subject to limits on annual benefits and compensation as set by the Internal Revenue Code. These limits may cap high-earning employees' benefits and affect retirement planning by necessitating supplementary savings strategies to ensure comprehensive retirement security(Marathon_Petroleum_Comp…).
47. Question:
How should employees at Marathon Petroleum Company approach beneficiary designation within their retirement plans?
Answer:
Employees must designate beneficiaries for their retirement plans. For married employees, spousal consent is required if the spouse is not the sole beneficiary. Keeping beneficiary information up-to-date is essential for ensuring that benefits are distributed according to the employee's wishes and supports estate planning(Marathon_Petroleum_Comp…).
48. Question:
What role does the Pension Benefit Guaranty Corporation (PBGC) play in providing security to employees of Marathon Petroleum Company regarding their retirement benefits?
Answer:
The Pension Benefit Guaranty Corporation (PBGC) insures the pension benefits under Marathon's retirement plans, offering protection in case the company faces financial difficulties or bankruptcy. This federal backing helps ensure employees can rely on their pension benefits as part of their retirement strategy(Marathon_Petroleum_Comp…).
49. Question:
What should employees of Marathon Petroleum Company know about the spousal consent requirements related to their retirement benefit elections?
Answer:
Spousal consent is needed for employees opting out of joint and survivor annuities. Married employees must have their spouse sign a notarized consent form for any other payout options, ensuring both parties agree on the retirement election, while unmarried employees can choose freely(Marathon_Petroleum_Comp…).
50. Question:
How can employees at Marathon Petroleum Company reach out to learn more about their retirement benefits and the information outlined in the retirement plan document?
Answer:
Employees can reach out to Fidelity, which manages the recordkeeping for Marathon’s retirement plans, via their NetBenefits website or by calling 1-866-602-0595. The Plan Administrator can also provide assistance for more complex inquiries or benefit applications(Marathon_Petroleum_Comp…).
51. Question:
How does Marathon Petroleum Company LP determine the funding status of its pension plan, and what strategies are in place to ensure that the plan remains adequately funded for current and future beneficiaries?
Answer:
Employees can reach out to Fidelity, which manages the recordkeeping for Marathon’s retirement plans, via their NetBenefits website or by calling 1-866-602-0595. The Plan Administrator can also provide assistance for more complex inquiries or benefit applications(Marathon_Petroleum_Comp…).
52. Question:
In what ways can employees at Marathon Petroleum Company LP actively participate in their retirement planning, and what resources are available to assist them in making informed decisions about their future?
Answer:
Employees can contribute to their retirement through the company's 401(k) plan and seek advice from financial advisors. They have access to various investment options, allowing them to tailor their portfolios according to their risk tolerance and retirement goals. Fidelity administers the pension plan, and employees can reach out via the NetBenefits website or by calling the service center for personalized guidance(Marathon_Petroleum_Comp…).
53. Question:
What impact do recent changes in federal legislation have on the retirement benefits provided by Marathon Petroleum Company LP, particularly regarding the minimum required contributions and defined benefit pension plans?
Answer:
Recent federal legislation, such as the American Rescue Plan Act, affects how pension liabilities are calculated by allowing the use of a 25-year average of interest rates, which lowers reported liabilities compared to previous methods. This change reduces the company's minimum required contributions, potentially impacting the long-term sustainability of the pension plan and projected retirement income for employees(Marathon_Petroleum_Comp…).
54. Question:
As an employee of Marathon Petroleum Company LP, what steps should I take to initiate the process of receiving retirement benefits once I retire, and what documentation will be needed?
Answer:
Employees should contact Fidelity, which administers the pension plan, either through the NetBenefits website or by phone. Required documentation will include forms for commencing benefits, personal identification, and proof of eligibility, such as age or years of service. Keeping contact information updated with the plan administrator is critical for a smooth transition into retirement(Marathon_Petroleum_Comp…).
55. Question:
How does the investment policy at Marathon Petroleum Company LP affect the growth of pension plan assets, and what role do fiduciaries play in managing these investments?
Answer:
Marathon Petroleum’s investment policy is designed to manage the volatility of the plan’s funded status and minimize future cash contributions. The investment committee allocates assets between fixed income, which correlates with plan liabilities, and other classes intended to provide higher returns. Fiduciaries manage these investments, carefully balancing risk and return to ensure the growth of pension assets over time(Marathon_Petroleum_Comp…).
56. Question:
What procedures does Marathon Petroleum Company LP follow to keep employees informed about changes to the pension plan, and how can employees provide feedback or express concerns regarding these updates?
Answer:
Effective communication is key to ensuring that employees feel engaged and informed about their retirement benefits. Marathon Petroleum’s investment policy is designed to manage the volatility of the plan’s funded status and minimize future cash contributions. The investment committee allocates assets between fixed income, which correlates with plan liabilities, and other classes intended to provide higher returns. Fiduciaries manage these investments, carefully balancing risk and return to ensure the growth of pension assets over time(Marathon_Petroleum_Comp…).
57. Question:
How are pension benefits guaranteed by the Pension Benefit Guaranty Corporation (PBGC) relevant to employees of Marathon Petroleum Company LP, and what should they know about the limitations of these guarantees?
Answer:
The PBGC guarantees certain vested benefits if the pension plan is terminated, but it has limits. For 2023, the maximum guarantee is $6,750 per month for retirees at age 65. However, early retirement or supplemental benefits may not be fully guaranteed, and benefits such as health insurance or severance pay are not covered(Marathon_Petroleum_Comp…).
58. Question:
In the event that the Marathon Petroleum Company LP pension plan is terminated, what options will be available to employees and how will those options differ depending on the funding status of the plan?
Answer:
If Marathon Petroleum's pension plan is terminated, employees may receive their benefits through an annuity purchased from an insurance company or a lump-sum payment, depending on the plan’s funding status. If the plan is underfunded, the PBGC may step in to pay benefits, but some benefits could be reduced based on legal limits(Marathon_Petroleum_Comp…).
59. Question:
What are the eligibility requirements for early retirement benefits at Marathon Petroleum Company LP, and how do these benefits compare to those available at normal retirement age?
Answer:
Employees at Marathon Petroleum may qualify for early retirement benefits, but these benefits are typically lower than those received at normal retirement age. The reduction accounts for the longer period over which benefits will be paid(Marathon_Petroleum_Comp…).
60. Question:
For employees looking to learn more about their retirement benefits and related inquiries at Marathon Petroleum Company LP, what is the best way to contact the company for comprehensive support?
Answer:
For questions regarding retirement benefits, employees can contact the Fidelity Benefits Service Center via phone or the NetBenefits website. For general pension inquiries, they can also reach out to the Marathon Benefits Service Center(Marathon_Petroleum_Comp…).
61. Question:
How does the vesting schedule within the Marathon Petroleum Retirement Plan impact an employee's long-term financial security, and what steps can employees take to ensure they are fully vested by their intended retirement age with Marathon Petroleum?
Answer:
The vesting schedule within the Marathon Petroleum Retirement Plan generally requires three years of service for an employee to become fully vested. This means that if an employee leaves before completing three years of service, they may forfeit their pension benefits. To ensure full vesting by the intended retirement age, employees should maintain continuous employment with Marathon for at least three years or more. Additionally, employees can consider keeping track of their vesting progress through available resources such as Fidelity’s NetBenefits system to align with their long-term financial security goals.
62. Question:
In what ways do the new in-service distribution features for employees aged 59½ and above alter the landscape of retirement planning for Marathon Petroleum employees, and how should employees consider these options in their overall retirement strategy?
Answer:
The new in-service distribution feature, effective November 1, 2022, allows employees aged 59½ and above to take distributions from their Legacy Retirement Benefit without having to retire or terminate employment. This option can alter retirement planning by providing more flexibility for accessing funds while still employed. Employees should evaluate whether taking distributions early aligns with their financial goals, considering potential tax implications and the impact on their remaining retirement balance(Marathon_Petroleum_Comp…).
63. Question:
Employees working for Marathon Petroleum Company often have questions regarding their benefits when considering early retirement. How do the options for Cash Balance Retirement Benefits at Marathon compare to traditional pension plans, and what factors should employees weigh when deciding which option aligns best with their retirement goals?
Answer:
Marathon’s Cash Balance Retirement Benefit offers a lump-sum option based on accumulated pay and interest credits, differing from traditional pension plans that typically provide a fixed monthly annuity. When comparing these options, employees should consider factors like their need for liquidity, risk tolerance, and life expectancy. The Cash Balance option may offer more flexibility, while traditional pensions provide a predictable, lifelong income stream. Employees should also factor in the availability of early retirement benefits and how these options align with their retirement objectives(Marathon_Petroleum_Comp…).
64. Question:
What specific processes must a Marathon Petroleum employee follow to initiate the application for their retirement benefits, and are there specific documents that need to be prepared and submitted to the Plan Administrator to avoid delays in this process?
Answer:
To initiate the application for retirement benefits, Marathon Petroleum employees must contact the Marathon Benefits Center at Fidelity, ideally 45 to 180 days before their desired retirement date. Required documents include properly completed benefit election forms and spousal consent if applicable. Submitting all necessary paperwork in advance helps avoid delays. Employees should also review benefit estimates through Fidelity to ensure accurate calculations(Marathon_Petroleum_Comp…).
65. Question:
Given the importance of spousal consent in the Marathon Petroleum Retirement Plan, what are the legal implications of not obtaining this consent before electing certain payment options, and how can employees ensure compliance with these requirements while planning their retirement with Marathon?
Answer:
Spousal consent is a critical legal requirement in the Marathon Petroleum Retirement Plan, particularly when electing non-survivor options like a lump sum. Failing to obtain consent can invalidate certain payment elections. To ensure compliance, employees should submit a notarized spousal consent form during the retirement application process to avoid legal disputes and ensure a smooth transition to retirement(Marathon_Petroleum_Comp…).
66. Question:
What are the rights and responsibilities of Marathon Petroleum employees under the Employee Retirement Income Security Act (ERISA), particularly concerning the enforcement of retirement benefits, and how does this legislation protect employees' interests within the Marathon Petroleum Retirement Plan?
Answer:
Under ERISA, Marathon Petroleum employees have rights such as receiving plan information, benefiting from fiduciary oversight, and accessing grievance procedures. ERISA ensures employees’ retirement benefits are protected and can be enforced if disputes arise. Employees can rely on ERISA to safeguard their interests, including ensuring fair treatment and timely payment of their pension benefits(Marathon_Petroleum_Comp…).
67. Question:
How do the contributions and funding mechanics of the Marathon Petroleum Retirement Plan serve to benefit its employees, and what assurances do employees have that the benefits will be available to them upon retirement?
Answer:
Marathon Petroleum funds the Retirement Plan through employer contributions, held in a trust fund to secure future benefits. Employees are assured that their benefits are backed by this trust, and the Plan is subject to federal insurance through the Pension Benefit Guaranty Corporation (PBGC) for additional security. The plan’s mechanics, including pay and interest credits, ensure steady growth of employees’ retirement funds(Marathon_Petroleum_Comp…).
68. Question:
In cases of military service, what provisions does the Marathon Petroleum Retirement Plan offer to employees on leave, and what steps must these employees take to ensure their service time is credited toward their benefits with Marathon upon their return?
Answer:
Employees on military leave are protected under USERRA, ensuring their service time is credited toward their benefits when they return to Marathon Petroleum. To ensure service time is recognized, employees must provide proper notice before leave and return to work within the timeframes outlined by USERRA. Military service credit helps preserve and enhance retirement benefits for these employees(Marathon_Petroleum_Comp…).
69. Question:
What options do Marathon Petroleum employees have if they experience a denial of their retirement benefits claims, and what steps can they take to appeal these decisions effectively within the guidelines set forth by the Marathon Petroleum Retirement Plan?
Answer:
If a Marathon Petroleum employee's retirement benefits claim is denied, they can follow the plan’s formal appeals process, starting with submitting a written claim to the Plan Administrator. If denied again, they may file an appeal, which will be reviewed by the Plan Administrator. Employees must adhere to deadlines and ensure they provide all necessary documentation for their appeal(Marathon_Petroleum_Comp…).
70. Question:
How can Marathon Petroleum employees get in touch with the Plan Administrator or utilize available resources to obtain more information about their retirement benefits, including pension calculations and plan details, ensuring they have the most accurate and current information to aid in their retirement planning?
Answer:
Employees can contact the Plan Administrator through Fidelity’s NetBenefits system or the Marathon Benefits Center for assistance with pension calculations and plan details. These resources provide up-to-date information and tools, such as benefit estimates, to help employees plan their retirement strategy. Employees can also obtain plan documents for more in-depth information(Marathon_Petroleum_Comp…).
71. Question:
What are the specific eligibility requirements for the Marathon Petroleum Company's retirement plans, and how do these requirements vary based on factors like age and years of service with Marathon Petroleum?
Answer:
Eligibility Requirements for Retirement Plans: Marathon Petroleum requires employees to be at least age 50 with 10 years of actual service to be eligible for retirement benefits. The eligibility can vary based on specific factors such as date of hire and whether the employee is a legacy Andeavor employee. Employees should review their personal employment history and service under the company to determine eligibility(MPC_2024_Retirement_Ben…).
72. Question:
How does the retirement benefit calculation work for Marathon Petroleum employees, particularly in relation to the Thrift Plan and the traditional retirement benefits?
Answer:
Retirement Benefit Calculation: Marathon Petroleum employees' retirement benefits are calculated based on both the Thrift Plan and traditional retirement benefits. The Thrift Plan offers flexibility, allowing employees to leave funds, roll them over, or take lump-sum distributions. The traditional retirement benefit may include a portion based on the Final Average Pay (FAP)-based formula or a cash balance account(MPC_2024_Retirement_Ben…).
73. Question:
In what ways can employees make the most of their Health Savings Account (HSA) options once they retire from Marathon Petroleum, and how do these choices affect their long-term health care expenses?
Answer:
Health Savings Account (HSA) in Retirement: Employees can maximize their HSA contributions even after retirement by using the account to cover eligible health expenses tax-free. The HSA rolls over year-to-year and provides significant tax advantages, including on contributions, earnings, and withdrawals for qualified medical expenses(MPC_2024_Retirement_Ben…).
74. Question:
What considerations should retirees at Marathon Petroleum take into account regarding their Medicare options when they reach age 65, and how does this interact with the retiree health plan?
Answer:
Medicare and Retiree Health Plan Interaction: When Marathon Petroleum employees reach age 65, their Retiree Health Plan ends and they transition to Medicare. Supplemental or replacement plans can be obtained through Via Benefits, ensuring continued health coverage. Employees should carefully plan for this transition, considering the impact on their retiree health benefits(MPC_2024_Retirement_Ben…).
75. Question:
How can Marathon Petroleum employees effectively manage their retirement plan distributions to minimize tax liabilities?
Answer:
Managing Retirement Plan Distributions: Marathon Petroleum retirees can manage tax liabilities by considering installment payments or direct rollovers to IRAs. Early withdrawals may incur penalties unless structured correctly, especially if retirees are under the age of 59½(MPC_2024_Retirement_Ben…).
76. Question:
What options do Marathon Petroleum retirees have when it comes to vision and dental care once retired, and how do these plans evolve post-65?
Answer:
Vision and Dental Care Post-65: Once retirees reach age 65, they lose eligibility for the pre-65 retiree dental and vision plans, but they can opt for COBRA coverage or explore options for supplemental dental and vision insurance through private plans offered via Via Benefits(MPC_2024_Retirement_Ben…).
77. Question:
What steps should Marathon Petroleum employees follow to ensure successful contact with the benefits service center for assistance regarding their retirement plans?
Answer:
Contacting the Benefits Service Center: To manage their retirement plans, employees should contact Fidelity and the MPC Benefits Service Center for detailed guidance. A Retirement Benefits Coordinator (RBC) from Fidelity will assist with managing benefit elections, forms, and payment processing(MPC_2024_Retirement_Ben…).
78. Question:
How does the long-term incentive award program at Marathon Petroleum work for retirees, and what action should they take to understand their entitlements upon retirement?
Answer:
Long-Term Incentive Award Program: Marathon Petroleum’s long-term incentive awards are provided based on individual eligibility and program guidelines. Retirees should contact Fidelity to understand their award entitlements, as these can be an important part of their retirement package(MPC_2024_Retirement_Ben…).
79. Question:
How can a Marathon Petroleum retiree ensure they continue receiving important updates about their retirement benefits, especially if they need to update their contact information?
Answer:
Updating Contact Information for Benefit Updates: Retirees must update their contact information through Workday or by contacting HR Data to ensure they continue to receive important communications about their retirement benefits(MPC_2024_Retirement_Ben…).
80. Question:
What are the potential implications of retiring with unused vacation or floating holidays at Marathon Petroleum, and how is this compensated in a final paycheck?
Answer:
Unused Vacation or Floating Holidays: Any unused vacation is compensated in the final paycheck, but floating holidays are not paid unless required by state law. Retirees should plan to use their floating holidays before retirement to avoid losing them(MPC_2024_Retirement_Ben…).