When am I eligible to participate in the Plan?
Generally, you are eligible to participate in the Plan if you are at least age 21 and have completed 12 months of employment.
When will I be 100% vested in the Plan?
Once you have satisfied the eligibility requirements (above), you will be 100% vested if you meet one of the following requirements:
- Complete at least five years of employment,
- If you are determined by the Plan Administrator to be totally and permanently disabled while in employment, or
- You reach age 55 while employed with the Company.
Can I contribute to my retirement plan?
No, employee contributions are not allowed. The Retirement Plans are funded completely by contributions made by the Company.
What is an accrued benefit?
An accrued benefit is your pension benefit you have earned based on the retirement formula, your years of service, age at the time of retirement, and salary.
How much does the Company contribute to the plan?
The amount of contributions is based on a review made by outside actuaries who look at both how much is in the trust (assets) and future obligations for benefits (liabilities).
What is Benefit Credit Service (BCS)?
After you become a Plan participant, you receive Benefit Credit Service (BCS) for every month in which you receive pay from the Company. Your Benefit Credit Service is part of the formula used to determine your pension benefit.
What does Final Average Pay mean?
Final Average Pay is the annual average of your highest 36 consecutive months of Base Pay during your last 10 years of employment.
How is my benefit calculated?
The Plan is a “defined benefit” plan. This means the amount of your benefit is figured using a specific – or defined – formula. Please refer to your Plan’s Summary Plan Description (SPD) for details on how your benefit is calculated.
Pension Estimator (this tool is available after you complete 14 months of employment with CITGO Petroleum Corporation)
The Pension Estimator is an online tool that lets you model your pension benefit using various retirement dates and assumptions. You can calculate and print estimates for as many different scenarios as you want, all based on real-time information.
Pension Estimator Registration and Log In Instructions
Access CITGO Pension Estimator
How do I get retirement information?
For general information, contact the Benefits Helpline at 1-888-443-5707 or email benefits@citgo.com. You can also refer to the current Retirement or Pension Plan Summary Plan Description (SPD) through the CITGO Intranet/Benefits Connection.
When should I start the retirement process?
To initiate the retirement process, active employee’s need to contact your Human Resource Consultant or Business Partner at least 45 days, but not more than 90 days, prior to your proposed retirement date to request your Retirement Benefit Summary and Pension Kit. You are also encouraged to contact the Benefits Helpline at 1-888-443-5707 or email benefits@citgo.com.
Do I have to notify my manager or human resources department?
If you have decided to retire, you must notify your Human Resources Representative at least 45 days, but not more than 90 days, prior to your proposed retirement date.
What documentation is required if I am ready to retire?
A copy of your birth certificate or passport (proof of your birth), and if you’re married, a copy of your marriage license along with a copy of your spouse’s birth certificate or passport.
What information is required if I am ready to retire?
The Benefits Helpline will need to verify your name, date of birth, social security number, current address, marital status, spouse’s date of birth and spouse’s social security number before your retirement papers are generated.
What payment options are available?
There are several payment options offered under CITGO’s Retirement Plans. They consist of Single Life Annuity, Joint & Survivor Annuities, Cashout, Single Lump Sum, Ten Year Certain and Continuous, and Level Income. Please click here to select your plan to see how benefits are paid under your plan.
Which payment option should I choose?
Selecting an option is a personal decision in which you need to consider your family’s finances, your and your spouse’s health, and other factors. Be sure to review each payment option closely. If you have any questions regarding the payment options, please contact the Benefits Helpline at 1-888-443-5707 or email benefits@citgo.com.
When I retire, can I take a lump sum payment?
- For all retirement plans - If the actuarial present value of your vested accrued benefit is $5,000 or less when you terminate employment, you will be eligible to receive a cashout (a single lump sum payment) as soon as administratively possible.
- For the Salaried Plan Only - If the actuarial present value of your vested accrued benefit is greater than $5,000 but less than $10,000 and you are at least age 55 when you elect to receive your pension benefit, you may elect to receive a single lump sum payment rather that a monthly annuity.
- For the UNO-VEN Retirement Plan Only - If you are an active employee eligible for early or normal retirement benefits, you may elect to receive either an immediate single lump sum payment or a monthly annuity when you terminate from CITGO. The lump sum must be elected to be paid immediately upon retirement—payment may not be deferred. Your lump sum payment will include the value of any Pre-Social Security Annuity to which you may be entitled.
When will I receive my retirement payments?
Retirement payments are paid on the 1st of each month. Your first payment will be paid one month after your annuity start date. This means you will receive two payments in the second month of retirement and one payment each month thereafter.
Will there be taxes taken out of my retirement payment?
The Federal and State (if applicable) amount withheld varies depending on taxable income, marital status and number of dependent exemptions claimed. Your retirement package will contain a W-4P form and the applicable State tax withholding form to complete and return. If you need help completing these forms, we suggest you contact a professional tax person for advice.
Will I get a check or is it direct deposited like our pay checks?
Your net payments will be direct deposited to the same bank account(s) you currently have in place with CITGO payroll.
What happens to my retirement if I die after I retire?
- If you are receiving retirement payments at the time of your death, any survivor benefits will depend on the form of payment you made at the time of retirement.
- If you are not receiving benefit payments at the time of your death and you are:
- Single - There is nothing payable from the Plan.
- Married - Your surviving spouse is entitled to a survivor’s benefit.
- Refer to your Plan’s Summary Plan Description for more detailed information.
What happens to my retirement if I die before I retire?
- If you die before you are 100% vested, there is nothing payable from the Plan.
- If you are actively employed at the time of your death, 100% vested and married, your surviving spouse is entitled to a survivor’s benefit.
- If you are actively employed at the time of your death, 100% vested and single, there is nothing payable from the Plan.
- Refer to your Plan’s Summary Plan Description for more detailed information.
What happens to my benefit if I leave the Company before age 55 and I am vested?
If you are vested when you leave the Company after age 55, you are entitled to an accrued benefit that is payable to you between the ages of 55 to 65 (your Normal Retirement age). If you elect to start your benefit prior to age 65, your benefit will be reduced by the Early Retirement Reduction factors. Refer to your Summary Plan Description to review the Early Retirement reduction table.
What is Early Retirement?
If you are vested when you leave the Company before age 55, you are entitled to an accrued benefit that is payable to you between the ages of 55 to 65 (your Normal Retirement age).. If you elect to start your benefit prior to age 65, your benefit will be actuarially reduced according to plan provisions. Refer to your Summary Plan Description to review the actuarial reduction table.
What is Normal Retirement?
If you are vested in the Plan, the normal retirement age is age 65.
What is Disability Retirement?
If you are an hourly employee and the Plan Administrator or its designee determines that you have become totally and permanently disabled while in employment with the Company, you may be eligible for Disability Retirement. Under Disability Retirement, your benefit will be based on your earnings and years of service, with no reduction due to your age at retirement even though payments begin before your Normal Retirement Date.
What if the Company is sold or goes bankrupt, what happens to my benefit?
Your Pension benefits under the Plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency. If the Plan terminates without enough money to pay all benefits, the PBGC will step in to pay pension benefits. Many people receive all of the pension benefits they would have received under their Plan, but some people may lose certain benefits.
How does the Company “fund” the Plan?
In order to ensure sufficient funds exist to pay for future retirement benefits, CITGO makes contributions to a trust fund. That money is set aside for plan benefits and invested based on established investment guidelines. The timing of contributions is determined by federal guidelines. The amount of contributions is based on a review made by outside actuaries who look at both how much is in the trust (assets) and future obligations for benefits (liabilities). The Company is required to provide employees an Annual Funding notice for each Plan that addresses the financial status of the plan with regard to funding requirements.
I received an Annual Funding Notice. What does it mean?
The Pension Protection Act (PPA), enacted in 2006, requires sponsors of defined benefit pension plans to provide plan participants with certain information about the funding status of their plan. The notice is simply informing you of the funding status of your pension plan.