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Oct 20, 2020 Moe Allain MBA, CPWA®, AAMS®, RMA® - Vice President

ConocoPhillips (COP) and Phillips 66 (P66) Retirement Plan Interest Rate Information

Social Security


Table 1. (updated quarterly)

Post-Pension Protection Act (PPA) - Lump Sum Corporate Bond Segment Interest Rates (quarterly)

Quarter

1st Segment

2nd Segment

3rd Segment

1st Qtr. 2021

0.51%

2.31%

3.15%

4th Qtr. 2020

 0.74%

2.57%

 3.32%

3rd Qtr. 2020

2.22%

3.08%

3.73%

2nd Qtr. 2020

2.03%

3.06%

3.59%

1st Qtr. 2020

 2.13%

 3.07%

3.65%

The rates in Table 1 are used for lump sum calculations of the benefit accrued on or after January 1, 2009, in the Phillips Retirement Income Plan, Retirement Plan of Conoco and the Final Average Earnings (FAE) Component plan of the Burlington Resources Inc. Pension Plan. There are three segment rates. The 1st segment is used in determining the lump sum value of the single life annuity payments that would otherwise be made in the first 5 years after benefit commencement. The 2nd segment is used for the period after the first 5 years up through 20 years and the 3rd segment is used for periods after 20 years.

Table 2. (updated quarterly)

Pre-Pension Protection Act (PPA) - Lump Sum 30-year TSR (quarterly) Interest Rates

Quarter

Interest Rate

1st  Quarter 2021

1.42%

4th Quarter 2020

1.49%

3rd Quarter 2020

1.46%

2nd  Quarter 2020

2.30%

1st  Quarter 2020

2.16%

4th Quarter 2019

2.57%

The 30-year Treasury Securities Rate (TSR) in Table 2 is the Effective annual interest rate from which the monthly interest credit rate is determined for the ConocoPhillips Cash Balance Account. The 30-year TSR is also used in the lump sum calculations for 1) the benefit accrued through 12/31/08 under the Phillips Retirement Income Plan, 2) the benefit accrued from 1/1/00 through 12/31/08 Under the Retirement Plan of Conoco and 3) the benefit accrued through 12/31/08 under the Burlington Resources Inc. Plan-FAE Formula.

The quarterly TSR listed above is based on the monthly TSR per the following schedule:

September monthly rate:    1st quarter of the following year         (BCD for 1/1, 2/1, 3/1)

December monthly rate:     2nd quarter of the following year      (BCD for 4/1, 5/1, 6/1)

March monthly rate:            3rd quarter of the same year              (BCD for 7/1, 8/1, 9/1)

June monthly rate:              4th quarter of the same year             (BCD for 10/1, 11/1, 12/1)

 

 

Table 3. (updated monthly)

Pension Benefit Guaranty Corp (PBGC) - Lump Sum (monthly) Interest Rates

BCD

Interest Rate

November 1, 2020

0.00%

October 1, 2020

0.00%

September 1, 2020

0.00%

August 1, 2020

0.00%

July 1, 2020

0.00%

June 1, 2020

0.00%

May 1, 2020

0.50%

April 1, 2020

0.00%

March 1, 2020

0.00%

February   1, 2020

0.25%

The rates in Table 3 are used for Retirement Plan of Conoco calculations for benefit accruals prior to January 1, 2000. This rate is published monthly. As you must request your pension paperwork by the 15th of the month before you want to start your pension benefit (BCD), using the PBGC interest rate for planning purposes is very difficult, as the PBGC interest rate is most oftentimes published on the 15th of the month, or later.

Effective 1/1/2020, Fidelity (formerly Alight/YBR) became the administrator of the ConocoPhillips Retirement Plan.

The ConocoPhillips Retirement Center can now be reached at (833) 637–4015, Monday-Friday, 7:30 a.m. to 7:30 p.m. (Central time). The Fidelity NetBenefits website can be accessed at www.netbenefits.com.

The new online modeler for the ConocoPhillips Retirement Plan benefit will be available through Fidelity’s NetBenefits website. More information will be provided to participants at a later date.

Robert W. Baird and Baird Retirement Management (BRM) are not endorsed by or affiliated with ConocoPhillips (COP) and Phillips 66 (P66) Company.

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