What Are My Beneficiary Designation, Death Benefit, and Spousal Options?

Beneficiary Designations

It is important that you name beneficiaries for all of your Phillips 66 retirement accounts. 

Additionally, you should review those beneficiaries at least annually, and after a major life event, such as getting married, having a child, divorce, the death of a spouse, or a career change. 

Making sure that your loved ones are cared for according to your wishes is an important step towards using your Real Wealth to secure a lasting legacy. 

• • Designations must be made or updated online through the Phillips 66 Benefits Center (formerly UPoint)
  • The Benefits Center uses the last valid designation filed prior to the commencement of the benefit.

• • Married Participants: Federal law generally requires the spouse to be the primary beneficiary for retirement benefits.
  • To name anyone other than the spouse as the primary beneficiary for retirement benefits, the participant must obtain the spouse’s consent in writing, witnessed and certified by a notary public.
  • The spouse must also agree in writing if the participant selects a Single Life Annuity or a Lump Sum option.
  • For the Phillips Retirement Income Plan (Title I), the participant may name contingent beneficiaries who would receive a benefit if the spouse dies before the participant.

Default Beneficiary Order

The default beneficiary order for a retirement plan applies if a participant dies without a valid beneficiary designation on file, or if all named beneficiaries predecease the participant.

Phillips 66 Retirement Plan (Titles I, II, and III)

1. The participant's surviving spouse.

2. The participant’s surviving children in equal shares.

3. The participant’s surviving parents in equal shares.

4. The participant’s surviving sisters and brothers in equal shares.

5. The participant’s estate.

Phillips 66 Retirement Plan (Titles IV and VI)

1. The participant's surviving spouse.

2. The participant’s estate (if there is no surviving spouse).

Phillips 66 Savings Plan

1. The participant’s surviving spouse.

2. The participant’s surviving natural or legally adopted children in equal shares.

3. The participant’s estate.

Death Benefits

Pre-Retirement Death Benefits

A participant's beneficiary is eligible for death benefits if the participant dies after becoming vested but before commencing benefits. If the participant was not vested in the Phillips 66 Cash Balance Account (Title II), no benefit is payable.

• • Small Account Balance: If the beneficiary's account balance is $1,000 or less, the amount must be paid out automatically as a distribution, minus income tax withholding.
  • Spousal Beneficiary: If the surviving spouse is the designated beneficiary and the account balance is more than $1,000, the spouse can choose to:
    • Delay distribution until the later of December 31 of the year the participant would have reached age 73, or December 31 of the year following the participant's death.
    • Request a distribution of all or part of the account at any time.

• • The entire account balance generally must be paid within 10 years of death.
  • This 10-year requirement does not apply to certain eligible non-spouse beneficiaries, such as a minor child, a disabled beneficiary, a beneficiary less than 10 years younger than the participant, or a chronically ill beneficiary.
  • The beneficiary may request a distribution of all or part of the account at any time.

Title I (Phillips Retirement Income Plan) & Title III (Tosco Pension Plan)

• • Survivor's Benefit is equal to the actuarial value of the entire plan benefit.
  • Payout Options: The spouse may elect either a lump-sum survivor’s benefit or a single life pre-retirement survivor’s annuity.
  • Annuity Details: The annuity is equal to 100% of the participant's retirement benefit (adjusted for age and early payment reduction).
    • For Title I, the annuity is payable as early as the participant's age 55.
    • For Title III, the spouse may begin payments as early as age 55, provided the participant had at least 10 years of service at death.
  • Contingency (Title III): If the spouse declines the annuity, contingent beneficiaries are eligible for a single lump-sum payment.

If Single: A single lump-sum cash payment equal to the actuarial value of the entire retirement benefit.

Title II (Phillips 66 Cash Balance Account)

• • The spouse receives 100% of the account value.
  • The spouse may choose a monthly annuity or lump-sum cash payment.
  • The spouse can commence payments immediately or postpone them up to the participant's normal retirement date.

• • The beneficiary receives an automatic lump-sum payment of 100% of the vested account value.
  • This payment may not be deferred.

• • A lump-sum survivor benefit is paid to the spouse or designated beneficiary.
  • This benefit is equal to the amount the participant would have received if they had remained employed until death and commenced payment immediately.

Title VI (Burlington Resources Inc. Pension Plan) - Cash Balance Participants

If Beneficiary is not the Spouse: The Cash Balance Account balance is paid to the beneficiary in a lump sum.

• • If the account balance is $5,000 or less, it is paid as a lump sum.
  • If the balance is more than $5,000, the spouse may choose a lump-sum payment or an actuarially equivalent single life annuity.

Title VI (Burlington Resources Inc. Pension Plan) - FAE Participants

• • If the value is $5,000 or less, a lump sum is paid automatically.
  • Otherwise, the spouse may elect a monthly annuity or a lump sum.
  • The annuity is reduced if paid before the participant would have attained age 65.

Non-Spousal Beneficiary (Unmarried): The beneficiary receives the vested accrued benefit as a lump sum only, payable as soon after death as administratively feasible.

Post-Retirement Death Benefits

If the participant dies after they have begun receiving retirement payments, survivor benefits depend on the form of payment the participant chose at retirement:

Joint and Survivor Annuity (J&S): The surviving spouse or joint annuitant will receive a continuing monthly benefit equal to the specified percentage of the reduced retirement benefit the participant was receiving, paid until the survivor's death.

Single Life Annuity or Lump Sum: No further survivor benefit is payable upon the participant's death.

• • Title III (Tosco) 10-Year Certain and Life Annuity: If the participant died before 120 monthly payments were made, payments continue to the joint annuitant or beneficiary until a combined total of 120 payments have been made. If the beneficiary also dies before the total 120 payments are made, any remaining payments will be paid to the beneficiary’s estate.
  • Titles I (PRIP) and IV (Conoco) Employee Contributions: If the recipient received annuity payments, a cash death benefit may be payable if the annuity payments already made do not exceed the refund value of those contributions.

Spousal Options and Consent Rules

• • If Single: The benefit is paid as a Single Life Annuity.
  • If Married: The benefit is paid as a 50% Joint and Survivor (J&S) Annuity, with the spouse as the named beneficiary.

Spousal Consent Requirements

• • A Single Life Annuity.
  • A Lump-Sum Payment (if available and the benefit is over $1,000).
  • A Joint and Survivor Annuity providing less than 50% (such as the 25% J&S option).
  • To name a primary beneficiary who is not the spouse.
  • The 10-Year Certain and Life Annuity (if accrued before the cutoff date).

Consent is not required  if the participant selects a J&S annuity option of 50% or more (50%, 75%, or 100%), provided the spouse is the named survivor.

Real Wealth Questions

• Last Will and Testament
• Power of Attorney
• Healthcare Directive
• Living Will

Are your current beneficiaries on file with Phillips 66 up to date? Are they the same as beneficiaries in your other accounts? If not, why?
Have you talked to your spouse or designated beneficiary about the benefit options available to them and how they work?
Would naming a trust or contingent beneficiary create complications for your estate or opportunities to secure and grow your Real Wealth for future generations?
How do your survivor’s benefits complement the rest of your legacy plan?
What survivor options should you elect for your pension to balance lifetime income and spouse protection?
Should you consider life insurance to complement your survivor benefits?

Questions? Visit the Philips 66 Benefits Glossary.