MRO » Topics » ARTICLE III. Excess Benefits

These excerpts taken from the MRO 10-K filed Feb 27, 2009.

ARTICLE III. Excess Benefits

 

3.1 Amount of Excess Benefit

The amount of a Participant’s benefit under this Section 3.1 (the “Excess Benefit”) shall be determined as of the Participant’s Separation from Service, as follows:

(a) The amount of Excess Benefit which a Participant or Beneficiary (as defined in Section 3.3(b)) is entitled to receive shall be equal to the excess of (1) over (2) below:

 

  (1) The amount of benefit which such Participant or Beneficiary would be entitled to receive under the Retirement Plan if such benefit were computed without giving effect to the Defined Benefit Limitations and including elected deferred compensation contributions as permitted under the Speedway SuperAmerica LLC Deferred Compensation Plan or any similar plan maintained by the Employer; less

 

  (2) The amount of benefit which such Participant or Beneficiary is entitled to receive under the Retirement Plan.

(b) The following individuals shall be entitled to an additional Excess Benefit equal to the difference between (1) and (2) below (“Special Excess Bonus Recognition”): (i) Eligible Grandfather Employees; and (ii) after November 1, 2006, any Grade 19 and above employee of Speedway SuperAmerica LLC, who is recommended by the Vice President of Human Resources of Marathon Oil Corporation and approved by the President of Marathon Oil Corporation.

 

  (1) An amount calculated under the Retirement Plan benefit formula, without regard to any Code mandated limitations (including, but not limited to, the Defined Benefit Limits) and including elected deferred compensation contributions as permitted under the Speedway SuperAmerica LLC Deferred Compensation Plan or any similar plan maintained by the Employer, and substituting the following Final Average Pay (FAP) definition for the definition of “Final Average Pay” contained in the Retirement Plan:

Final Average Pay shall be the highest pay, excluding bonuses, of a member for any consecutive 36-month period during the last ten years of employment plus the highest three bonuses paid out of the last 10 years (not necessarily consecutive), divided by 36.

 

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  (2) An amount as normally determined under the Retirement Plan, plus any retirement benefit otherwise payable under the Excess Benefit Plan (i.e., exclusive of any benefits attributable to the calculation in Section 3.1(b)(1) above).

For purposes of the calculations in (1) and (2) of this Section 3.1(b) “Eligible Grandfather Employee” means any Speedway SuperAmerica Grade 19 employee eligible for Special Excess Bonus Recognition under Article III, Section A of this Plan prior to November 1, 2006. However, an individual’s Eligible Grandfather Employee status shall permanently cease upon termination, retirement, or death as an employee.

(c) Compensation updates under the provisions of the Retirement Plan (relating to the Petroleum Marketing Retirement Plan which was merged into the Retirement Plan) which are unavailable under the Retirement Plan due to certain Code limitations.

 

3.2 Payment of Excess Benefit

A Participant shall be entitled to a cash distribution of the Participant’s Excess Benefit as provided in this Section 3.2.

(a) Except as otherwise provided in this Section 3.2, a Participant’s Excess Benefit shall be paid in a lump sum within 90 days of Separation from Service for any reason other than death.

(b) In the event of the death of a Participant, the Participant’s Excess Benefit shall be paid to the Participant’s applicable Beneficiary in a lump sum within 90 days of the Participant’s death or, if earlier, within the 90-day period following the Participant’s Separation from Service as described in Section 3.2(a) (or, in the event of a Separation from Service of a Specified Employee (as defined below) not on account of death, the 90-day period described in Section 3.2(c)). The Participant’s “Beneficiary” shall be designated in accordance with guidelines established by the Plan Administrator. Each Participant shall have the right to designate, or to rescind or change the designation of, a primary and a contingent Beneficiary to receive benefits payable in the event of the Participant’s death. Such designation, or rescission or change of designation, shall be made in writing and shall be filed with the Plan Administrator. The designation, rescission, or change of designation shall be effective as of the date filed with the Plan Administrator and shall be controlling over any disposition by will or otherwise. In the event there shall be no Beneficiary so designated by such Participant living at the time of such Participant’s death, then and in either of said events, any such benefits shall be paid to the person or persons comprising the first surviving class of the following classes: (1) the Participant’s surviving spouse; (2) the Participant’s surviving natural born and legally adopted children; (3) the Participant’s surviving parents; (4) the Participant’s surviving brothers and sisters; and (5) the executor or administrator of the Participant’s estate.

 

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(c) Distribution of the Excess Benefit of a Participant who the Plan Administrator determines is a Specified Employee (other than such Participant’s Grandfathered Accruals) shall be paid in a lump sum within the 90-day period following the first of the month following 6 months after Separation from Service (other than a Separation from Service on account of the death of Participant). In the event of a Separation from Service of a Specified Employee on account of death, payment shall be made pursuant to Section 3.2(b). Payment of a Specified Employee’s Grandfathered Accruals shall be made in accordance with Section 3.2(a).

(d) A Participant must be vested under the Retirement Plan in order for an Excess Benefit to be payable. The amount of any lump sum payment hereunder shall be determined by using the same factors and assumptions which would be used by the Retirement Plan for such Participant or Beneficiary at the Participant’s Separation from Service. The balance of any Excess Benefit not paid at the Participant’s Separation from Service shall accrue interest beginning at the Participant’s Separation from Service at a rate used under the Retirement Plan to determine the actuarial equivalent lump sum of a life only monthly annuity.

(e) Distributions of 409A Accruals prior to January 1, 2009 were made under reasonable good faith interpretations of Code section 409A and transition guidance provided thereunder. Notwithstanding any contrary provisions of this Section 3.2, to the extent the Plan Administrator permitted a Participant to submit an election to receive payment in a form of distribution other than a lump sum and such payment commenced prior to 2009, the distribution of such Participant’s Excess Benefit after 2008 shall be governed by procedures established by the Plan Administrator.

ARTICLE III. Excess Benefits

 





3.1Amount of Excess Benefit

The amount of a Participant’s
benefit under this Section 3.1 (the “Excess Benefit”) shall be determined as of the Participant’s Separation from Service, as follows:

FACE="Times New Roman" SIZE="2">(a) The amount of Excess Benefit which a Participant or Beneficiary (as defined in Section 3.3(b)) is entitled to receive shall be equal to the excess of (1) over (2) below:

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 






 (1)The amount of benefit which such Participant or Beneficiary would be entitled to receive under the Retirement Plan if such benefit were computed without giving effect to the Defined
Benefit Limitations and including elected deferred compensation contributions as permitted under the Speedway SuperAmerica LLC Deferred Compensation Plan or any similar plan maintained by the Employer; less
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 






 (2)The amount of benefit which such Participant or Beneficiary is entitled to receive under the Retirement Plan.
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%">(b) The following individuals shall be entitled to an additional Excess Benefit equal to the difference between (1) and (2) below (“Special
Excess Bonus Recognition”): (i) Eligible Grandfather Employees; and (ii) after November 1, 2006, any Grade 19 and above employee of Speedway SuperAmerica LLC, who is recommended by the Vice President of Human Resources of
Marathon Oil Corporation and approved by the President of Marathon Oil Corporation.

 






 (1)An amount calculated under the Retirement Plan benefit formula, without regard to any Code mandated limitations (including, but not limited to, the Defined Benefit Limits) and
including elected deferred compensation contributions as permitted under the Speedway SuperAmerica LLC Deferred Compensation Plan or any similar plan maintained by the Employer, and substituting the following Final Average Pay (FAP) definition for
the definition of “Final Average Pay” contained in the Retirement Plan:

Final Average Pay shall be the highest pay,
excluding bonuses, of a member for any consecutive 36-month period during the last ten years of employment plus the highest three bonuses paid out of the last 10 years (not necessarily consecutive), divided by 36.

STYLE="margin-top:0px;margin-bottom:0px"> 


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 (2)An amount as normally determined under the Retirement Plan, plus any retirement benefit otherwise payable under the Excess Benefit Plan (i.e., exclusive of any benefits
attributable to the calculation in Section 3.1(b)(1) above).

For purposes of the calculations in (1) and
(2) of this Section 3.1(b) “Eligible Grandfather Employee” means any Speedway SuperAmerica Grade 19 employee eligible for Special Excess Bonus Recognition under Article III, Section A of this Plan prior to November 1, 2006.
However, an individual’s Eligible Grandfather Employee status shall permanently cease upon termination, retirement, or death as an employee.

SIZE="2">(c) Compensation updates under the provisions of the Retirement Plan (relating to the Petroleum Marketing Retirement Plan which was merged into the Retirement Plan) which are unavailable under the Retirement Plan due to certain Code
limitations.

 





3.2Payment of Excess Benefit

A Participant shall be entitled to a
cash distribution of the Participant’s Excess Benefit as provided in this Section 3.2.

(a) Except as otherwise provided in this
Section 3.2, a Participant’s Excess Benefit shall be paid in a lump sum within 90 days of Separation from Service for any reason other than death.

FACE="Times New Roman" SIZE="2">(b) In the event of the death of a Participant, the Participant’s Excess Benefit shall be paid to the Participant’s applicable Beneficiary in a lump sum within 90 days of the Participant’s death or, if
earlier, within the 90-day period following the Participant’s Separation from Service as described in Section 3.2(a) (or, in the event of a Separation from Service of a Specified Employee (as defined below) not on account of death, the
90-day period described in Section 3.2(c)). The Participant’s “Beneficiary” shall be designated in accordance with guidelines established by the Plan Administrator. Each Participant shall have the right to designate, or to
rescind or change the designation of, a primary and a contingent Beneficiary to receive benefits payable in the event of the Participant’s death. Such designation, or rescission or change of designation, shall be made in writing and shall be
filed with the Plan Administrator. The designation, rescission, or change of designation shall be effective as of the date filed with the Plan Administrator and shall be controlling over any disposition by will or otherwise. In the event there shall
be no Beneficiary so designated by such Participant living at the time of such Participant’s death, then and in either of said events, any such benefits shall be paid to the person or persons comprising the first surviving class of the
following classes: (1) the Participant’s surviving spouse; (2) the Participant’s surviving natural born and legally adopted children; (3) the Participant’s surviving parents; (4) the Participant’s surviving
brothers and sisters; and (5) the executor or administrator of the Participant’s estate.

 


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(c) Distribution of the Excess Benefit of a Participant who the Plan Administrator determines is a
Specified Employee (other than such Participant’s Grandfathered Accruals) shall be paid in a lump sum within the 90-day period following the first of the month following 6 months after Separation from Service (other than a Separation from
Service on account of the death of Participant). In the event of a Separation from Service of a Specified Employee on account of death, payment shall be made pursuant to Section 3.2(b). Payment of a Specified Employee’s Grandfathered
Accruals shall be made in accordance with Section 3.2(a).

(d) A Participant must be vested under the Retirement Plan in order for an
Excess Benefit to be payable. The amount of any lump sum payment hereunder shall be determined by using the same factors and assumptions which would be used by the Retirement Plan for such Participant or Beneficiary at the Participant’s
Separation from Service. The balance of any Excess Benefit not paid at the Participant’s Separation from Service shall accrue interest beginning at the Participant’s Separation from Service at a rate used under the Retirement Plan to
determine the actuarial equivalent lump sum of a life only monthly annuity.

(e) Distributions of 409A Accruals prior to January 1,
2009 were made under reasonable good faith interpretations of Code section 409A and transition guidance provided thereunder. Notwithstanding any contrary provisions of this Section 3.2, to the extent the Plan Administrator permitted a
Participant to submit an election to receive payment in a form of distribution other than a lump sum and such payment commenced prior to 2009, the distribution of such Participant’s Excess Benefit after 2008 shall be governed by procedures
established by the Plan Administrator.

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Feb 27, 2009

RELATED TOPICS for MRO:

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