U.S. Benefits
New Hire Overview
January 2012
May 2012
1
Total Compensation and Benefits
 Compensation
 Base Salary
 Variable Cash Incentive Program (VCIP)
 Long-term Incentive (LTI)
 Special Recognition Award (SRA)
 Benefits
 Health & Welfare
 Phillips 66 Savings Plan
 Phillips 66 Retirement Plan
 Time-off & others
May 2012
2
Health – Medical & Dental Plans
 Medical Plan
 Coverage options assist with health care needs from prevention to
catastrophic events
 Options include:
 Consumer Plan with or without a Health Savings Account (HSA)
 PPO Plan
 HMO – in certain locations
 If enrolled in the Consumer Plan with HSA, Phillips 66 will contribute $500
(you only) or $750 (all other coverage levels) to your Chase HSA
 Prescription drug coverage through Express Scripts (Medco) includes retail
and home delivery options (for Consumer and PPO plans)
 Estimated 80 / 20 premium cost sharing between Phillips 66 & employees
(Phillips 66 contribution to HMOs capped at PPO contribution)
May 2012
3
Health – Medical & Dental Plans
 Medical Plan
 Coordinated health improvement programs (Health Coaching, 24 hour
Nurseline) to enhance medical outcomes
 Modeling tools available to help employees decide which options are right
for their personal situation
 Dental Plan
 Comprehensive Dental –through MetLife with projected 80 / 20 cost sharing
between Phillips 66 & employees
 Preventive Dental – through MetLife at a zero ($0) monthly cost to
employees
May 2012
4
Medical Option Highlights (Network)
Network Coverage
Consumer
PPO
Monthly Costs
Individual/Family After Wellness Incentive
$0 - $33
$65 - $272
Annualized Costs
Individual/Family
$0 - $396
$780 - $3,264
Health Savings Account Company
Contribution
$500 / $750
$0
Deductible
$1,400 (you only)
$2,800 (you + more)
$600 (you only)
$1,200 (you + more)
(includes all medical and
prescription drug costs)
(does not include physician visit or
prescription drug copays/coinsurance)
$4,000 (you only)
$8,000 (you + more) 100% coverage
thereafter
$3,000 (you only)
$6,000 (you + more)
100% coverage thereafter
(Out-of-pocket max. includes all
participants medical and prescription
drug costs)
(does not include physician visit or
prescription drug copays/coinsurance
which are ongoing)
Out-of-pocket Costs Maximum
(includes deductible)
May 2012
5
Medical Option Highlights (Network)
Network Coverage
Consumer
Network
Preventive Medical Care
Physician Visits (non-preventive)
PPO
Networks are the same.
No deductible. Preventive Network services covered at 100%
(annual wellness exam, mammogram, colonoscopy, etc.)
20% after deductible
$25 copay (PCP);
$50 copay (specialist)
Outpatient Surgery
20% after deductible
Inpatient Hospitalization
20% after deductible
May 2012
6
Prescription Drug Benefits
Network Coverage
Consumer
PPO
Preventive Prescription Drugs
No deductible
No cost up to $1,500 / person / year;
thereafter 20% coinsurance up to the
annual out-of-pocket maximum
No special benefits for preventive
prescription drugs.
Non-Preventive Prescription Drugs
 Pay the negotiated / discounted full cost
until you meet the deductible (combined
with medical expenses) ($1,200 /
$2,400)
 After deductible, you pay 20%
coinsurance until you meet the out-ofpocket costs maximum (combined with
medical expenses) ($4,000/$8,000)
 Thereafter, 100% paid by Company for
prescription drugs and medical services
Network Retail – up to 30 day
supply:
 Generic: $10 copay
 Brand Preferred: 40% coinsurance
($30 minimum and $125 maximum)
 Brand Non-Preferred: 50%
coinsurance ($60 minimum and
$250 maximum)
May 2012
Home Delivery (Medco Pharmacy) –
up to a 90 day supply:
 Generic: $20 copay
 Brand Preferred: 40% coinsurance
($60 minimum and $250 maximum)
 Brand Non-Preferred: 50%
coinsurance ($120 minimum and
$500 maximum)
7
Welfare – Life Insurance
 Life Insurance
 Basic - One times annual pay; Company paid
 Supplemental - Up to eight times annual pay; employee paid
 Dependent – Spouse: $40,000 / $75,000; Child: $15,000 / $25,000;
employee paid
 Occupational Accidental Death (OAD)
 Benefit of $500,000 – company paid
 Accidental Death and Dismemberment (AD&D)
 Coverage of $20,000 to $1 million; employee paid
 Family coverage available; employee paid
May 2012
8
Welfare – Disability
 Short-Term Disability (STD)
 52 weeks; Maximum benefit available with 10 years of service:
 First 26 weeks at 100 percent pay
 Next 26 weeks at 60 percent pay
 Company paid
 Long-Term Disability (LTD)
 Basic benefit – 50 percent of pay; nontaxable
 Enhanced benefit –60 percent of pay; nontaxable
 Employee paid
May 2012
9
Wealth Accumulation: Phillips 66 Savings
Plan (P66SP)
 The P66SP is one of the best and most convenient resources you have
for accumulating wealth and securing a comfortable retirement
 The P66SP consists of two parts:
 Thrift Feature
 Success Share
 Generally, you are immediately eligible if you are an employee on the
direct U.S. dollar payroll of a Phillips 66 company that has adopted the
plan
 Eligible to participate immediately upon employment
 100% vested immediately, including Company contributions
 Loans and withdrawals available
 Vanguard is the record keeper
 You are immediately vested in all amounts contributed to your account.
May 2012
10
Wealth Accumulation: Phillips 66 Savings
Plan (P66SP)
Thrift Feature
 Employee may contribute up to 75% of eligible pay
 Eligible pay includes base salary and overtime
 Before-tax, after-tax, Roth 401(k) or a combination
 “Catch-Up” before-tax contributions allowed if age 50 or older
 Withdrawals, exchanges and loans allowed
 Company matches $1 for $1 up to 5.0% of eligible pay
 You have a choice of funds to choose from for investing your contributions
 Company matching contributions follow the employee’s contribution
investment election
 New hires are automatically enrolled with a 3% before-tax contribution
 Annual increase in your election of 1% until your contribution reaches 5%
 You can increase, decrease or stop your deferral, annual increase election or
investments at any time
May 2012
11
Wealth Accumulation: Phillips 66 Savings
Plan (P66SP)
Success Share
 As the name implies, it reflects your potential to share in the Company’s
success
 Discretionary profit sharing contribution of 0% to 6% of eligible pay with
a target pay out of 2%
 Semi-annual cast contributions invested according to your Thrift
contribution investment elections
 You must have participated in the Thrift Feature for all or part of the
measurement period in order to receive a Success Share contribution
 The contribution will be based only on your eligible pay for the time
period in which you actually made contributions to Thrift
May 2012
12
Wealth Accumulation: Phillips 66 Savings
Plan (P66SP)
Contact Vanguard to enroll or make changes
 www.vanguard.com (Plan # 099066)
 Call Vanguard at 800-523-1188
 Access Vanguard through HR Express
May 2012
13
Wealth Accumulation: Phillips 66
Retirement Plan (P66RP)
Phillips 66 Cash Balance Account
 Access Vanguard through HR Express
 Pay credits recognize both age and service (one “point” per year of
service plus age equals total points)
 Under 44 points: 6%
 44 through 65 points: 7%
 66 or more points: 9%
 Bonus (VCIP) is part of eligible compensation used to calculate cash
balance pay credit
 Interest credits based on 30 year Treasury rate
 Cash Balance Account vests in 3 years
 Company paid
 Eligible month following hire date
May 2012
14
Time Off Policies – Vacation
May 2012
Years of Service
Eligible Days of
Vacation
Maximum Vacation
Limit
1-4
10
20
5-9
15
25
10 - 19
20
30
20 - 29
25
35
30 +
30
40
15
Additional Time Off Policies












Holidays
Serious Illness in Family
Death in Family
Personal Leave/Sabbaticals
Flexible core working hours
19/30 work schedule
Part-time regular work schedules
Family and Medical Leave (FMLA)
Disability Leave
Military Leave
Community Service Leave
Excused Leave with Pay and Hardship Assistance
NOTE: Some policies may not be applicable to sites under a collective bargaining unit Agreement (CBA). Such sites
should consult their HRBP or CBA.
May 2012
16
Other Benefits and Programs
 Flexible Spending Accounts (FSA)
 Health Care Account (maximum of $2,500)
 Dependent Care Account (maximum of $5,000)
 Employee Assistance Plan (EAP) – ValueOptions
 5 face-to-face visits per family member / problem / year
 Company paid
 Matching Gift Program for contributions to charitable organizations or schools
 Employees are matched $1 for $1 up to $15,000 annually
 Eligible recipients include 501(c)(3) charitable organizations
 Educational Assistance / Tuition Refund
 Assists in furthering higher education in fields of mutual interest to the employee and
Company
 Pays 90% of tuition and mandatory enrollment fees up to annual maximums of
$8,500 for advanced degrees and $4,000 for all other formal education (subject to
applicable approvals)
 Phillips 66 Severance Pay Plan
 Up to 60 weeks of pay based on years of service, if eligible
May 2012  Education reimbursement up to $2,000
17
Additional Support
For questions about plans, policies and programs:





Call Phillips 66 Benefits Center
800-965-4421 or 646-254-3467 (international callers)
8 a.m. - 6 p.m. Central time
Monday through Friday
Visit Your Benefits Resources (YBR) website through HR Express or at:
http://resources.hewitt.com/phillips66
 Call Vanguard at 800-523-1188 or access through HR Express
 Visit Phillips 66 public HR website at http://hr.phillips66.com
May 2012
18