Retirement plan participants

Welcome to your Phillips 66 Savings Plan

A powerful tool to help you save
Stock photo of a woman working at home.
Phillips 66 wants to help you reach your financial goals by offering you this savings and investment program: The Phillips 66 Savings Plan ("Plan").

The Plan offers many benefits, including automatic enrollment, generous matching contributions (up to 8%!), a wide array of investment choices, automatic payroll contributions, tax deferral (meaning you don’t pay taxes on your pre-tax contributions until you take the money out)1, and much more.

The sooner you start making contributions, the more money you’ll have when you retire. It’s that simple.

Need help?

Call Vanguard Participant Services Monday through Friday at 800-523-1188 from 7:30 a.m. to 8 p.m., Central time.

1 You may need to pay income tax on the money you take from your retirement account. If you’re under age 59½, you may also have to pay a 10% federal penalty tax.

When can I join the Plan?

Generally, you're eligible for the Plan on the first day of your employment with Phillips 66 and you will be enrolled automatically. However, it may take up to five business days for a Vanguard account to be established for you. After the account has been set up, you may register for secure online access at vanguard.com/retirementplans, review account details for contribution rate and investment allocation changes, and monitor activity.

If you don't elect otherwise, your default contribution rate will be 8% of your eligible pay on a pre-tax basis and you'll be invested in the Vanguard Target Retirement Trust Select with the target date closest to the year in which you'll reach age 65. Of course, you can change your contributions and investment choices at any time.

You are also enrolled in the automatic annual increase feature at Vanguard. This feature automatically increases your pre-tax contribution rate by one percentage point each July until you reach 10% of your eligible pay. You can change the timing or opt out of this annual increase feature at any time by logging in to your account.

Investments in Target Retirement Trusts are subject to the risks of their underlying funds. The year in the trust name refers to the approximate year (the target date) when an investor in the trust would retire and leave the workforce. The trust will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. The Income Trust has a fixed investment allocation and is designed for investors who are already retired. An investment in a Target Retirement Trust is not guaranteed at any time, including on or after the target date.

Vanguard Target Retirement Trusts Select are collective trusts, not mutual funds. This type of investment is offered only in retirement plans like yours. Before you invest, get the details. Know and carefully consider the objective, risks, charges, and expenses. Vanguard Fiduciary Trust Company manages the Vanguard collective trusts.

Saving in the Plan and company match

The Phillips 66 Savings Plan has many benefits designed to help maximize your long-term savings—including a company match.

Company match

When you save in the Phillips 66 Savings Plan, you’ll enjoy a company match, that is immediately 100% vested. Phillips 66 will match your contributions dollar for dollar up to 8% of your pay. To get the full company match, you should save at least 8% of your pay in the Plan. You can save as much as 75% of your pay, up to the IRS limit.

Your contributions

There are three types of contributions you can make to the Plan, in any combination (subject to IRS limits). To change your contributions, log in to your account and select Manage my money.

 

  • Pre-tax. This type of contribution comes out of your paycheck before taxes are calculated. You save on taxes now, and you don’t have to pay taxes on your contributions or their earnings until you withdraw the money, usually in retirement (when you may be in a lower tax bracket).1

  • Roth after-tax. Roth contributions are taxed when you make them, but earnings grow tax-free. That means you’ll owe no taxes on the Roth money when you withdraw it, provided you meet certain conditions.2

  • Traditional after-tax. You can also contribute on an after-tax basis. You pay taxes now on the contributions, and earnings grow tax-deferred. You’ll pay taxes on the earnings when you withdraw them. After-tax contributions can be helpful if you’ve reached IRS limits for pre-tax and Roth contributions but still want to grow your savings.

Catch-up contributions. If you’re age 50 or older, you can save an additional amount in the Plan above the maximum pre-tax and Roth limit.

 

View current IRS limits on retirement plan contributions.

Other Plan features

  • You can make exchanges at any time—that is, move money between investments, subject to certain restrictions.
    Just log in to your account and select Manage my money.

  • You can roll over assets from previous employers’ plans into the Phillips 66 Savings Plan at any time. For detailed instructions, log in to your account and select Manage my money and then Transfer money in. You can also contact Vanguard at 800-523-1188 for additional support. 

1 You may need to pay income tax on the money you take from your retirement account. If you're under age 59½, you may also have to pay a 10% federal penalty tax.

 

2 Taxes: Taking money from your retirement account con affect how much you'll have to pay in taxes. You'll owe taxes on pre-tax money. You won't owe taxes on Roth earnings as long as you ore age 59½ or older and it's been at least five years since your first Roth contribution. If required by low, Vanguard will withhold some taxes for you. You may need to pay o 10% federal penalty tax if you toke money out early.

Investment options

You get to choose how to invest your money. You can choose a mix of investments on your own—or you can choose a single Target Retirement Trust.


Target Retirement Trusts
Target Retirement Trusts offer the simplicity of a complete portfolio composed of a mix of stocks and bonds. It also handles most regular maintenance for you. It will automatically rebalance over time to become more conservative as you approach retirement. If you don’t choose investments after you are enrolled in the Plan, your contributions will be invested in the Vanguard Target Retirement Trust Select with a target date closest to the year in which you’ll reach age 65.

Investments in Target Retirement Trusts are subject to the risks of their underlying funds. The year in the trust name refers to the approximate year (the target date) when an investor in the trust would retire and leave the workforce. The trust will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. The Income Trust has a fixed investment allocation and is designed for investors who are already retired. An investment in a Target Retirement Trust is not guaranteed at any time, including on or after the target date.

Other investment options

The Phillips 66 Savings Plan offers several different types of investments if you wish to build your own portfolio. These include index investments, actively managed and specialty investments, and Phillips 66 company stock funds.

Company stock investments

The Plan offers company stock investments that provide you with an opportunity to share in your Company’s financial success. And from your employer’s perspective, an investment in its stock creates a shared commitment.

 

However, a disproportionately large investment in any single stock puts your retirement savings at increased risk. In general, owning a fund that invests in just one stock is considered riskier than owning a diversified stock mutual fund, which may own hundreds or thousands of stocks. Even if a few of a diversified stock mutual fund’s holdings perform poorly, other stocks in the fund may do better, helping to offset the losses. Diversifying means having different types of investments. It doesn't guarantee you'll make a profit or that you won't lose money. 

 

Consider owning a diversified mix of investments with no more than 20% of your retirement savings in company stock. When more than 20% of your retirement savings is invested in company stock, the risks of owning an individual stock may outweigh any potential benefits.

Open to new investments:

Closed to new investments:

The performance of a company stock fund depends on the price of a single stock, which can move up or down dramatically. So this type of fund can be riskier than a stock mutual fund, which may own hundreds or thousands of stocks.

 

Vanguard Target Retirement Trusts Select are collective trusts, not mutual funds. This type of investment is offered only in retirement plans like yours. Before you invest, get the details. Know and carefully consider the objectives, risks, charges, and expenses. Vanguard Fiduciary Trust Company manages the Vanguard collective trusts.

Get help with investing

You have several options for getting advice, guidance, or even full account management in the Phillips 66 Savings Plan. Here are your choices:

 

Investor questionnaire
If you just want a suggested asset mix, fill out this short investor questionnaire. It will give you a starting point for choosing your own mix of investments.

 

Personal Online Advisor, powered by Edelman Financial Engines
If you want online guidance, investment recommendations, and goal forecasting, Personal Online Advisor could be right for you. It’s available in your Plan at no cost to you.

 

Vanguard Managed Account Program (VMAP™), powered by Edelman Financial Engines
VMAP provides ongoing professional management for your investments in the Plan. The service will select your investments, invest your money, and periodically make changes to your asset mix to suit your goals.

You’ll pay an annual fee based on your account balance. Look for information in the mail and online containing the fee schedule.
 

Vanguard Situational Advisor™
A financial advisor can help you work through your questions about choosing investments, saving for college, and retiring—or any financial situation that’s on your mind. Best of all, you can speak with an advisor at no cost if you’re age 50 or older.

 

If you are under age 50, you can still get a financial consultation for a fee.

The Vanguard Group has partnered with Financial Engines Advisors L.L.C. (FEA) to provide subadvisory services to the Vanguard Managed Account Program and Personal Online Advisor. FEA is an independent, federally registered investment advisor that does not sell investments or receive commission for the investments it recommends with respect to the services which it is engaged in as subadvisor for Vanguard Advisers, Inc. (VAI). Advice is provided by Vanguard Advisers, Inc. (VAI), a federally registered investment advisor and an affiliate of The Vanguard Group, Inc. (Vanguard). Vanguard is owned by the Vanguard Funds, which are distributed by Vanguard Marketing Corporation, a registered broker-dealer affiliated with VAI and Vanguard. Neither Vanguard, FEA, nor their respective affiliates guarantee future results. Vanguard will use your information in accordance with Vanguard’s Privacy Policy.

Edelman Financial Engines® is a registered trademark of Edelman Financial Engines, L.L.C. All rights reserved. Used with permission.

Vanguard Situational Advisor is provided by Vanguard Advisers, Inc. (VAI), a registered investment advisor. Eligibility restrictions may apply.

Diversification

Diversification can be an important safeguard in investing. The idea is simple: You avoid putting all your eggs in one basket. Instead, you build your portfolio with different types of assets. When one type of investment is doing poorly, another may be doing well. This may help prevent dramatic swings in your account balance. Keep in mind that you also may diversify your company stock holdings as explained in the Diversification Notice. Diversifying means having different types of investments. It doesn’t guarantee you’ll make a profit or that you won’t lose money.

While there's no one-size-fits-all answer when it comes to diversification, finding the right asset mix doesn't have to be complicated.

 

Complete Vanguard's Investor Questionnaire for a suggested asset mix.

 

Playing it safe can leave you short
On the surface, short-term reserves—such as your 401(k) plan's stable value fund—appear to be no-risk options because they seek to maintain a steady value. But many people overlook their hidden risk: inflation.

 

Over time, inflation can greatly reduce the returns you receive. Here's how: Over the past century, short-term reserves have earned an average annual return of 3.4%. During this time, inflation has eaten up about 2.9% of that return each year. With an annual return of just 05% after inflation, you may not reach your investment goals.*

 

While an investment with plenty of high returns and zero risk would be ideal, it just doesn't exist. So you should consider choosing something that balances risk and return. Finding the right balance can be challenging: You don't want a volatile investment portfolio that keeps you up at night, but you need to make sure you accumulate enough money to last throughout your retirement. Because your Plan offers a wide range of fund options, you can create a portfolio with just the right combination of risk and potential return to suit your investment style.

 

As its name suggests, a stable value investment tries to keep its share price constant. But this is not guaranteed, and it’s possible to lose money with an investment like this. Unlike bank savings accounts, this investment is not insured by the U.S. government. It’s also not insured by your employer or Vanguard.

*The fact that any type of investment has done well in the past doesn't mean it will do well in the future. For U.S. short-term reserves, we use the Ibbotson U.S. 30-Day Treasury Bill Index from 1926 to 1977, and the Citigroup 3-Month Treasury Bill Index thereafter. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest. Index performance is not illustrative of any particular investment because you cannot invest in an index.

 

Source: Vanguard

Access your money

If you need access to your money, there are options.
 

  • Loans. You can borrow from your account, subject to terms and conditions. Borrowing from your retirement plan does have long-term consequences, so be sure you understand the impact before you move forward.

 

  • In-service withdrawals. You can withdraw from your account balance under certain circumstances. These include verifiable financial hardship, after age 59 ½ withdrawals, after-tax withdrawals as well as company contributon, rollover, and disability withdrawals. To learn more, log in to your account and select Access my money.1

 

  • Separation from service. If you leave your employer, you can withdraw all or part of your balance. You may have several options for doing so—you’ll receive notification. Remember, if you take money from your Plan, you may need to pay taxes and, if you’re under age 59 ½, potential penalties.1

  • Upon retirement. When you’re ready to retire, you can take your money as a lump sum or as installments. Or, you can roll it over to an IRA or leave it in the Plan.2 Vanguard has resources to help you decide - just call Vanguard at 800-523-1188 for additional support or log in to your account and select Access my money. You also have the option to rollover your Defined Benefit plan account (Pension) to the Phillips 66 Savings Plan at Vanguard.  After informing the Phillips 66 Benefits Center of your intention, call Vanguard or log in to your account and select Manage my money and then Transfer money in to complete the rollover form.  


If you're not actively working and have reached age 73 or older, you generally must begin taking Required minimum distributions (RMDs) from your plan account balance, according to IRS rules.

1 Taxes: Taking money from your retirement account can affect how much you'll have to pay in taxes. You'll owe taxes on pre-tax money. You won't owe taxes on Roth earnings as long as you are age 59½ or older and it's been at least five years since your first Roth contribution. If required by law, Vanguard will withhold some taxes for you. You may need to pay a 10% federal penalty tax if you take money out early.

2 Whether you keep your money where it is, move it to an IRA, or move it to another employer’s plan depends on your situation and preferences. Some things to consider are available investments and services, fees and expenses, and protection from creditors. Also consider withdrawal penalties, required distributions, and the tax effects of moving company stock to an IRA. There are other factors too. Weigh the pros and cons before you make your decision.

Name a beneficiary

It’s your beneficiary designation, not your will, that determines where your Plan account balance goes when the time comes. It’s very important that you name one or more beneficiaries, and that you review them periodically to make sure they’re up to date.

 

If you’re married, your spouse is automatically your primary beneficiary.

To name or check your beneficiaries, log in to your account, select Profile at the top of the page, and scroll down to Beneficiary

You can access important Plan documents here:

Can I get help with all of this?

No matter what your retirement investing needs are, we can help. Just join your plan to get started.

 

For short and engaging lessons that can help with retirement planning and your other financial goals, check out the articles on the Vanguard Education site.

 

Whenever you invest, there's a chance you could lose the money.