EXXONMOBIL SUPPLEMENTAL PENSION PLAN

Exhibit 10(iii)(c.2)

 

EXXONMOBIL SUPPLEMENTAL PENSION PLAN

(Including Key Employee Supplemental Pension Plan)

 

 

1. Purpose

 

The purpose of this Plan is to provide payments of equivalent value from the general assets of Exxon Mobil Corporation (“Corporation”) to those participants in the ExxonMobil Pension Plan (“Pension Plan”) who, because of the application of United States Internal Revenue Code (“Code”) sections 415 and 401(a)(17), are precluded from receiving from Pension Plan funded assets all the payments to which they would otherwise be entitled under the Pension Plan's formula.  

 

 

2. Benefits

 

2.1

Benefit Formula

(A)

In General

Except as provided in paragraph (B) below with respect to former Mobil employees, as defined in the ExxonMobil Common Provisions, (“Former Mobil Employees”), as to any Pension Plan participant eligible for payment under this Plan, the value of the payments under this Plan is an amount that when added to the normal form amount that can be paid to the participant from the Pension Plan's qualified funded assets, produces a sum equal to the total normal form amount to which the participant would be entitled computed under the Pension Plan formula applicable to that participant disregarding any reductions, restrictions, or limitations brought about by the application of Code sections 415 and 401(a)(17), reduced, but not below zero, by the following amounts:

(1)

the amount, if any, payable to the participant under the ExxonMobil Key Employee Supplemental Pension Plan, and

 

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(2)

the amount, if any, payable to the participant under the ExxonMobil Key Employee Additional Payments Plan that is not applied as an offset against the participant's benefit under the ExxonMobil Additional Payments Plan.

Where relevant, this computation is performed after taking into account any entitlement the participant may have under the Overseas Contributory Annuity Plan.  The resulting benefit is expressed in the form of a monthly five-year-certain and life annuity for the life of the participant commencing at the participant’s age 65 (“Normal Retirement Age”).

(B)

Benefit Formula for Former Mobil Employee

The payments under this Plan for Former Mobil Employees who retire with eligibility for Incentive Pension Benefits under the ExxonMobil Additional Payments Plan shall be the amounts determined under paragraph (1) below and, if applicable, paragraph (2) below.

(1)

In General

The amount benefit determined under this paragraph (1) shall be the lesser of:

(a)

the amount of the person’s benefit otherwise determined under paragraph (A) above, or

(b)

the excess if any of the person’s Overall Benefit Objective as described in section 2.3(B) of the ExxonMobil Additional Payments Plan, over the sum of the person’s benefit under the ExxonMobil Pension Plan (including any Pre-Social Security Benefit) and the person’s Incentive Pension Benefit and Nonqualified PSSP Benefit, if any, as determined under the ExxonMobil Additional Payments Plan,

expressed in the form of a monthly five-year-certain and life annuity for the life of the participant commencing at the participant’s Normal Retirement Age.

 

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(2)

Nonqualified PSSP Benefits

The amount of a person’s benefit determined under this paragraph (2) shall be the amount, if any, of any Nonqualified PSSP Benefit determined for such person under the terms of the ExxonMobil Additional Payments Plan.

2.2

Offsets for Other Pension Benefits

A person’s benefit determined under section 2.1 shall be offset, but not below zero, by any benefit payable to the person under (A) an offsetting pension that is not qualified under the terms of the U.S. Internal Revenue Code, (B) a separation payment offset, or (C) a non-U.S. governmental pension offset, as such terms are defined under the ExxonMobil Pension Plan.

2.3

Plan Administrator Discretion

The procedure for calculating the benefit for former Mobil employees under section 2.1 above, and for determining the application of the offsets for other pension benefits under section 2.2 above, shall be determined in the sole and exclusive discretion of the Plan Administrator.

 

 

3. Payment of Benefits

 

3.1

Timing of Payment

(A)

In General

Except as provided in paragraph (B) or (C) below, payment of the benefit described in article 2 above shall occur as soon as practicable following the later to occur of the following:

(1)

the person’s termination of employment or retirement from ExxonMobil;

(2)

in the case of a person who, immediately prior to his or her termination or retirement, has a Classification Level of 37 or above (“Key Employee”), the six-month anniversary of the person’s termination of employment or retirement;

 

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(B)

Retirement Prior to Age 55

In the case of a person who retires from ExxonMobil on account of long-term disability prior to the first of the month in which the person attains age 55, payment of the benefit described in article 2 above shall occur on the first of the month in which the person attains age 55, or as soon as practicable thereafter.

(C)

Termination Prior to Age 50

In the case of a person who terminates employment from ExxonMobil prior to the first of the month in which the person attains age 50, payment of the benefit described in article 2 above shall occur on the first of the month in which the person attains age 50, or as soon as practicable thereafter.

3.2

Reduction for Early Commencement

If payments under this Plan commence prior to the month in which the person reaches Normal Retirement Age, they are reduced by applying the early commencement factors specified under the Pension Plan for a benefit commencing at the person’s then age.  

3.3

Form of Payment

Payment of the benefit described in article 2 above shall be made in a lump sum that is the actuarial equivalent of the five-year-certain and life annuity calculated under section 2.1(A) or 2.1(B)(1) or the actuarial equivalent of the PSSP benefit calculated under 2.1(B)(2).  For this purpose, actuarial equivalence shall be determined by the Plan Administrator using the factors and procedures that are used for the calculation of the lump-sum payment option under the Pension Plan.

3.4

Adjustment for Key Employees

If payment of a Key Employee’s Incentive Pension Benefit and/or Overseas Makeup Benefit is delayed for six months following retirement because of the requirement set out in section 3.1(A)(2) above, then instead of the lump-sum benefit calculated under section 3.3 above, the person shall receive a lump-sum benefit equal to the greater of the following:

(A)

The lump-sum payment that would otherwise have been calculated for the person under section 3.3 above as if he were not a Key Employee, based

 

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on the payment date that would have applied to the individual if he were not a Key employee and on the actuarial factors applicable as of such date under the ExxonMobil Pension Plan, plus interest for the period of delayed payment; or

(B)

A lump-sum that is the actuarial equivalent of the person’s five-year-certain and life annuity calculated as of the delayed payment date and using the actuarial factors applicable as of such date under the ExxonMobil Pension Plan.

Interest shall be credited under paragraph (A) above, at a rate equal to the Citibank prime lending rate in effect on the date the person separates from employment.

 

 

4. Death Benefit

 

4.1

Benefits Payable On Account of Death

(A)

In General

In the event a portion of a pension death benefit or a “career annuity subject to deferred commencement that commences by reason of death” that becomes payable under the terms of the Pension Plan on account of the death of a participant cannot be paid from the Pension Plan because of the application of Code sections 415 and 401(a)(17), a lump-sum death benefit of equivalent value shall be paid