Steps on How to Rollover My ExxonMobile Pension Plan (EMPP)
Not all company pensions have a lump sum option like the ExxonMobil Savings Plan. You can take the lump sum option in essentially two ways – cash out or in a rollover. If you simply “cash out," you will be subject to ordinary income tax and, if you are younger than 59½, a 10% early withdrawal penalty. Most people who take the lump sum make a qualified rollover to either a personal IRA account or their 401(k) account to defer taxes on the distribution and continue growing the funds. This is a single payment of the actuarial value of your Basic Annuity. If you elect the lump sum payment option, you will receive your Pre-Social Security Pension as a single payment. The lump sum payment option is generally available only to retirees.
Additional lump-sum payment options are available to retirees who retire on or after December 1, 2015. In addition to the 100% lump sum payment option, such a retiree may elect to receive 25%, 50% or 75% of their pension in the form of a lump sum with the remaining benefit payable as a monthly annuity.
Here are the steps to get started on your pension rollover:
Go to ExxonMobil Benefits Service Center and login
Click on Pension
Click on Collect Tab. This will start initiation process for paperwork.
Choose the Rollover Option. You will then decide what Option you want: 25%, 50%, 75% or 100% lump sum with the remainder if applicable left as annuity.
Choose the name of your custodian of choice.
The paperwork will be ready for download and then you will have to print and complete.
If you were married when the Pension Plan was established you may need to have spousal consent completed. Your spouse will need to sign in the presence of a notary under “Spousal Consent” section.
Once all required signatures are completed you can upload the document by PDF within the ExxonMobil Benefits Service Center.
If you selected a lump sum option of any amount, your check should be processed and then mailed 30-60 days after complete submission of the paperwork. Make sure to be fully aware of all tax and distribution rules of a qualified account such as this pension plan. You may talk to one of our experts by scheduling a call below to ask questions about this process.
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