Benefits Valerie Smith Benefits Administration CITGO Petroleum Corporation

Post-Retirement Life Insurance Reduction Example 5 th Anniv. and Beyond 4 th Anniv. 3 rd Anniv. 2 nd Anniv. 1 st Anniversary Initial Reduction Before Retirement

Dental Coverage • Same as active employees • May continue to age 65 • Coverage ends at age 65 – May continue dental for dependents under 65 – COBRA coverage available

Retiree Medical Benefits Eligibility 10 Years Continuous Plan Participation AND • Age plus Service equals 70 points OR • Retire under Company retirement plan OR • Age 55 or older and eligible to retire from the Pension Plan

Retiree Medical Benefits Eligibility • Can waive and re-enroll later – No pre-existing condition exclusions – Enroll at Annual Election or Change in Status • Other coverage primary

Retiree Medical Benefits Not Medicare Eligible • • Same as active employees May continue in managed care plan Prescription drug program HMO (where available)

Terms Carve-Out Supplement Coordination of Benefits (COB) Crossover or Rollover Coinsurance

Retiree Medical Benefits after Medicare Eligibility • • Medicare becomes primary payor Medicare carve-out Not eligible for managed care plan Prescription drug program

Retiree Medical Benefits after Medicare Eligibility • Medicare carve-out • Generally, no CITGO plan payment until deductible and out-of-pocket maximum met • Prescription coverage not subject to deductible or out-of-pocket limit

Retiree Medical Benefits Spouse Coverage • Retiree becomes Medicare eligible before spouse – Not eligible for managed care plan – Coverage changes to 80% in options I or II • Spouse becomes Medicare eligible before retiree – Coverage remains the same – Medicare becomes primary payer • Retiree dies before spouse – Coverage continues – Eligibility for managed care depends on spouse’s age

Medicare 2001 Medicare Deductibles/Coinsurance Part A (hospital) Days 1 - 60 $792 Days 61 - 90 $198/Day Days 91 - 150 $396/Day Part B (doctor) $100 annually CITGO plan assumes you have enrolled in Medicare if you are eligible

Retiree Medical Benefits after Medicare Eligibility CITGO Salaried Plan - 2001 (Non-Network Options)

Example: Deductibles Not Medicare CITGO Plan Approved $500 Part B Ded. 100 Payment 320 Patient Resp. $ 80 Approved Deductible Benefit Balance $500 0 $ 0 Net Patient Resp. $180 Applied to Plan ded. 500 Applied to OOP 0

Example: Deductibles Met Medicare CITGO Plan Approved $500 Payment 400 Patient Resp. $100 Approved Plan Benefit Less Medicare Net Plan Ben. $500 400 -400 0 Net Patient Resp. Applied to OOP $100

Example: Deductibles and OOP Met Medicare CITGO Plan Approved $500 Payment 400 Patient Resp. $100 Approved Plan Benefit Less Medicare Net Plan Ben. Net Patient Resp. $500 -400 $100 $0

Example: Part A without Deductible Medicare CITGO Plan Part A ded. $792 Payment balance Patient Resp. $792 Approved 80% Benefit Net Patient Resp. $792 634 $158 Applied to OOP $158

Prescription Drug Coverage • Retirees have same coverage as actives – 70% at retail – $25 generic mail copay – $50 brand name mail copay • No Network/No Rx Option does not have prescription drug coverage

Annual Election • Each year – About two weeks – 1 st part of November • Change options, waive or re-enroll • Critical that you read annual election material

Communications • CITGO Benefits Bulletin • The Spearhead • Benefits Help. Line – Phone: 1 -888 -443 -5707 – E-mail: Benefits@citgo. com – Fax: 1 -918 -495 -5007