Plan Highlights - The Vanguard Group

Plan Highlights

Phillips 66 Savings Plan (099066)

This material has been designed to give you a general description of the main features of the

Phillips 66 Savings Plan. For more information, visit

/sites/phillips66/index.html, refer to the Summary Plan Description (SPD), or contact Vanguard.

Provision

Description

Eligibility and

Enrollment

Generally, you are eligible to participate in the plan on the first day you are employed with the

company. You will be automatically enrolled at a default contribution rate of 3% of your eligible

pay on a before-tax basis. Your contributions will automatically be invested in the Vanguard Target

Retirement Trust with the target date closest to the year you will reach age 65. You are immediately

vested in all amounts contributed 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. An investment in a

Target Retirement Trust is not guaranteed at any time, including on or after the target date.

You are also enrolled in the automatic annual increase feature. This feature automatically

increases your before-tax contribution rate by one percentage point each January and continues to

increase your rate each year until you reach 5% of your eligible pay. You can opt out of this annual

increase feature or change your election percentage at any time by contacting Vanguard.

You may access your account in the following ways:

? Online at retirementplans. You must register for online access to manage your

account. To register, go to register. You will need your plan number, which is

099066. If you have an individual account at Vanguard in addition to your plan account, you will

need your individual account number to register. Once registered you will have 24-hour access

to your account, as well as investment and financial planning information. You can also access

Vanguard through HR Express on the Phillips 66 intranet site.

? By phone at 800-523-1188. Get 24-hour access to your account and investment option

information through the interactive VOICE? Network. Or speak with a Vanguard Participant

Services associate for help with transactions and answers to your questions weekdays from

7:30 a.m. to 8 p.m., Central time.

Provision

Description

Beneficiaries

Be sure to name beneficiaries for your plan account. Properly designating beneficiaries ensures that,

when you die, your hard-earned savings are distributed according to your wishes.

After you register for online access, you can designate beneficiaries online as outlined below.

To designate or update your beneficiary information, follow these simple steps:

1. Log on to your account at retirementplans.

2. Click My Profile. (If you have multiple accounts at Vanguard, you may need to select

Employer plans first.)

3. Click Beneficiaries.

Or go to , download

the beneficiary designation form, and return it to Vanguard. You may also call Vanguard Participant

Services at 800-523-1188 to obtain a copy of the form. Associates are available weekdays from

7:30 a.m. to 8 p.m., Central time.

Your Contributions

and IRS Limits

You can choose from the following contribution types:

?

?

?

?

Before-tax contributions.

Roth 401(k) after-tax contributions.

Traditional after-tax contributions.

Any combination of the above.

IRS Limits

The IRS limits your annual before-tax and Roth after-tax contributions. For the current IRS

contribution limits, go to contributionlimits.

If your total before-tax or Roth contributions under Thrift reach the annual IRS limit before the year¡¯s

end, any additional before-tax or Roth contributions will automatically be converted to traditional

after-tax contributions for the remainder of the year. Before-tax and Roth contributions to Thrift

will resume with your first paycheck in January of the next year. Note: If you stop contributions to

your account after reaching the IRS before-tax or Roth limit, you will have to contact Vanguard

the following January to restart them. Your contributions will not resume automatically.

Thrift

Your Contributions

You can contribute from 1% to 75% of eligible pay on a before-tax, Roth after-tax, or traditional

after-tax basis, or any combination, up to the IRS annual limits. Phillips 66 will contribute $1 to your

account for every $1 you contribute each pay period, up to 5% of your eligible pay. The company

matching contributions will be allocated according to your current investment selection.

Employee Catch-up contributions. Starting the year in which you reach age 50, you can make

additional contributions to the plan over and above certain plan or IRS limits. You can make catch-up

contributions on a before-tax or Roth basis, as part of your overall Thrift contribution.

Calculating Your Contribution Percentage

The example below shows how to calculate your Thrift contribution percentage, assuming $80,000

eligible pay and maximizing your before-tax and/or Roth contributions.

Step 1: Determine the amount you wish to contribute:

Under age 50

Age 50 or older

IRS limit on before-tax and Roth contributions

$17,500

$17,500

IRS limit for catch-up contributions

Not applicable

$5,500

Total contributions

$17,500

$23,000

Step 2: Divide your total contribution amount by your annual pay.

2

Under age 50

Age 50 or older

$17,500 / $80,000 = 0.21875

22%

¡ª

$23,000 / $80,000 = 0.2875

¡ª

29%

Provision

Description

Success Share

Company Contribution

As the name implies, Success Share reflects your potential to share in the Company¡¯s success.

Success Share provides a twice-per-year discretionary cash contribution to your Thrift account.

The contribution percentage will be determined by senior management and will be from 0% to 6%

of eligible pay with a target contribution of 2%. Eligible employees must contribute at least 1% of

eligible pay to Thrift in order to be eligible to receive Success Share contributions. Success Share

contributions will be based only on your eligible pay for those pay periods in which you contributed

to Thrift. You can find more information about Success Share online at

.ekit/sites/phillips66/index.html.

Rollovers

You may roll over before-tax, Roth after-tax, and traditional after-tax money from a former

employer¡¯s 401(k) or other eligible plan, as well as before-tax money from an IRA, into the plan at

any time. Contact Vanguard for instructions. Note: If you do not make an investment election for

your rollover contribution, your money will be invested in the Vanguard Target Retirement Trust with

the target date closest to the year you will reach age 65.

Investment Options

You may choose funds from the plan¡¯s current investment options. For brief descriptions of each

investment option, refer to your plan¡¯s funds in the ¡°Invest Your Savings¡± section of the plan¡¯s online

enrollment kit at .

Advice Services

No matter what your retirement investing needs are, Vanguard¡¯s advice, education, and all-in-one

investment options can help. We can even do most of the work for you.

Follow these steps to view your plan¡¯s advice, education, and all-in-one investment options online:

1. Log on to your account at retirementplans.

2. On your homepage, click the Review my performance tab and select Get help planning

for retirement.

3. Select Let Vanguard Help or Do It Yourself and review your options.

Note: If you have multiple accounts at Vanguard, you may need to select Employer plans after you

log on. If you have multiple employer plan accounts, select the plan you¡¯d like to view.

Dividend Distribution

Options for the

Phillips 66

Stock Fund*

Dividends are payments to shareholders and are distributed from current earnings or

accumulated profits.

Dividends received from Phillips 66 stock are automatically reinvested to purchase additional shares

of Phillips 66 stock. The money will remain tax-deferred and help your account grow.

Dividend pass-through: If you wish to receive stock dividends in cash, you may contact Vanguard up

to three days before a dividend payment date to elect a cash distribution. You will receive a check

and the amount of the dividend will be reported on a Form 1099-R. Your election to receive a cash

distribution for dividends, if declared, will continue each quarter unless you revoke your election

at least three business days before any dividend payment date.

Because the Phillips 66 Stock Fund concentrates on a single stock, it is considered riskier than

a diversified stock fund.

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Provision

Description

Changing Your

Investments or

Contributions

Contact Vanguard online or by phone to make the following changes:

Loans

Although the plan is designed for long-term savings, you can borrow from your account.

? Exchanges. Generally, you may make exchanges into or out of any investment fund at any

time, subject to established trading policies. Please refer to ¡°Important information about

fund restrictions¡± on page 6, the fund prospectus, or the SPD for more information on

exchange policies.

? Investment allocation changes. You can change how new contributions are invested at any

time. Allocation changes are effective immediately.

? Payroll deduction percentage changes. You can change the amount you contribute anytime.

Changes will be reflected in your paycheck as soon as administratively practicable.

Following are some of the loan provisions:

? Minimum amount: $1,000.

? Maximum amount: 50% of your account balance up to $50,000 (or less if you have had an

outstanding plan loan in the past 12 months).

? Maximum outstanding loans: three.

? Repayment: up to 58 months for a general purpose loan; up to 238 months for a loan taken

to purchase a principal residence.

? Application fee:

>> $35 for each loan initiated through retirementplans or the VOICE Network.

>> $85 for each loan initiated through a Vanguard Participant Services associate.

? Maintenance fee: $20 per year.

? Interest rate: prime rate plus 1%.

To request a loan, contact Vanguard online or by phone.

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Provision

Description

Withdrawals*

You may withdraw money from your account under certain circumstances:

? Anytime¡ªYou can withdraw your traditional after-tax contributions and company contributions.

? Upon reaching age 59? or becoming totally disabled¡ªYou may withdraw all of your

account assets when you reach age 59? or become totally disabled. You must have a physician¡¯s

certification or Social Security Administration determination of total disability.

? Upon termination of employment¡ªYou may withdraw your entire account.

? In the event of a hardship (as defined by the plan)¡ªYou may withdraw before-tax and Roth

contributions as needed to satisfy your hardship.

>> Hardship withdrawals will result in a six-month suspension from making contributions

or receiving company contributions.

>> You must first exhaust other options, including plan loans.

To make a withdrawal, contact Vanguard online or by phone. For more information about the types

of withdrawals available, contact Vanguard or refer to the SPD.

Distributions*

You are eligible to receive your account balance upon retirement, termination of employment,

or total and permanent disability. You may do any of the following:

? Leave it in the plan if your balance is more than $1,000. You must begin taking required minimum

distributions by April 1 following the year you turn age 70?.

? Receive it as a single-sum cash payment.

? Roll it over to another employer¡¯s eligible plan or an IRA.

? Receive it in installments (monthly, quarterly, semiannually, or annually) based on your

life expectancy.

There are important factors to consider when rolling over assets to an IRA or employer-sponsored

plan or leaving assets in an employer retirement plan account. These factors include, but are not

limited to, investment options in each type of account, fees and expenses, available services,

potential withdrawal penalties, protection from creditors and legal judgments, required minimum

distributions, and tax consequences of rolling over employer stock to an IRA.

*Tax implications: You will be responsible for paying any federal, state, local, or foreign taxes on a distribution or withdrawal from pre-tax accounts.

A distribution or withdrawal of Roth 401(k) earnings is usually also taxable unless the initial Roth contribution was made more than five years ago and you

are at least age 59?. Early withdrawals may be subject to a 10% federal penalty tax. To the extent required by law, Vanguard will make the appropriate

withholding for tax purposes.

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