Retirement Legislation Awaits Further Action for Marathon Oil Employees

Legislation that could benefit Marathon Oil employees and retirees with individual retirement accounts (IRAs) and retirement plans such as employees in Marathon Oil companies, is currently moving through Congress. The Securing a Strong Retirement Act of 2022 has passed almost unanimously in the House. A similar bill (with some differences), the Enhancing American Retirement Now Act, has been drafted in the Senate but will have to wait until Congress is back in session in November for further consideration. If the Senate passes its bill, the House and the Senate would need to reconcile the two bills, and then each would vote on the reconciled bill.

Some significant provisions in the proposed legislation that may aid in your Marathon Oil retirement planning are summarized below.

Contributions
House	Senate
The $1,000 IRA catch-up contribution limit for individuals aged 50 and older would be indexed for inflation, starting in 2024.	The $1,000 IRA catch-up contribution limit for individuals aged 50 and older would be indexed for inflation, starting in 2023.
For workplace retirement plans such as a 401(k), the catch-up contribution limit would be increased to $10,000 (indexed for inflation) for eligible participants aged 62 to 64, starting in 2024.	For workplace retirement plans such as a 401(k), the catch-up contribution limit would be increased to $10,000 (indexed for inflation) for eligible participants aged 60 to 63, starting in 2025.

For SIMPLE plans, the catch-up contribution limit would be increased to $5,000 (indexed for inflation) for eligible participants aged 62 to 64, starting in 2024. For SIMPLE plans, the catch-up contribution limit would be increased to $5,000 (indexed for inflation) for eligible participants aged 60 to 63, starting in 2025. An employer would be able to make matching contributions to a defined contribution plan such as a 401(k) on behalf of an employee who is making qualified student loan payments, starting in 2023. An employer would be able to make matching contributions to a defined contribution plan such as a 401(k) on behalf of an employee who is making qualified student loan payments, starting in 2024.

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Distributions
House	Senate
The current starting age of 72 for required minimum distributions (RMDs) from retirement accounts would be increased to age 73 starting in 2023, age 74 starting in 2030, and age 75 starting in 2033.	The current starting age of 72 for required minimum distributions (RMDs) from retirement accounts would be increased to age 75 for calendar years after 2031.
The penalty for failing to make an RMD would be reduced from 50% to 25%, starting in 2023. In addition, the penalty would be reduced to 10% if the taxpayer corrects an RMD shortfall and submits a corrected tax return before the earlier of (a) when the IRS demands payment or (b) the end of the second taxable year after the taxable year in which the penalty is imposed.	The penalty for failing to make an RMD would be reduced from 50% to 25%, starting in 2023. In addition, the penalty would be reduced to 10% if the taxpayer corrects an RMD shortfall and submits a corrected tax return before the earlier of (a) when the IRS demands payment or (b) the end of the second taxable year after the taxable year in which the penalty is imposed.
Qualified charitable distributions (QCDs) for individuals aged 70½ and older would be expanded to allow a one-time election to be made for a QCD of up to $50,000 (to be adjusted for inflation) to a charitable remainder unitrust, a charitable remainder annuity trust, or a charitable gift annuity.	Qualified charitable distributions (QCDs) for individuals aged 70½ and older would be expanded to allow a one-time election to be made for a QCD of up to $50,000 (to be adjusted for inflation) to a charitable remainder unitrust, a charitable remainder annuity trust, or a charitable gift annuity.
An exception to the penalty for early distributions from a retirement plan would be available for up to $10,000 of distributions to a domestic abuse victim after the date of enactment.	An exception to the penalty for early distributions from a retirement plan would be available for up to $10,000 of distributions to a domestic abuse victim after the date of enactment.

Other
House	Senate
SIMPLE and SEP Roth IRAs would be allowed starting in 2023.	SIMPLE and SEP Roth IRAs would be allowed starting in 2024.
If a retirement plan permits it, an employee would be able to elect to have employer-matching contributions treated as Roth contributions, starting with contributions made after the date of enactment.	If a retirement plan permits it, an employee would be able to elect to have employer-matching contributions treated as Roth contributions, starting with contributions made in 2023.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Marathon Oil offers both a pension plan and a 401(k) plan to its employees. The pension plan is a cash balance-type plan provided entirely by the company, with no need for employee enrollment. Eligible employees include full-time, part-time, and casual workers who automatically join upon starting employment. The pension plan credits a percentage of the employee’s eligible pay annually based on a combination of age and years of service. For employees under 50 years old, the credit is 7%; for those aged 50 to 69, it increases to 9%; and employees aged 70 or older receive 11%. Employees become vested in the pension plan after three years of service, and the plan is administered by Fidelity. Source: Marathon Petroleum Company LP Retirement Plan Summary (2024), page 12 (MyMPCBenefits). Marathon Oil also provides a 401(k) plan with a company match. The company matches employee contributions up to 7%, making it a highly competitive offering. This 401(k) plan is available to all employees upon hire, and contributions grow tax-deferred. Employees are encouraged to take full advantage of the company's matching contributions to maximize their retirement savings. The plan is also administered through Fidelity, with various investment options available to employees.

Restructuring: Marathon Oil confirmed plans to lay off around 5% of its U.S. workforce in early 2023. These layoffs were part of broader restructuring efforts to align with the company's cost-cutting measures. Additionally, the announcement of the ConocoPhillips acquisition in 2024 will result in further organizational changes (Marathon Oil) (MyMPCBenefits).

Marathon Oil offers stock options and Restricted Stock Units (RSUs) as part of its employee compensation packages. These options and RSUs are typically awarded to key employees as part of long-term incentive programs aimed at aligning their interests with the company’s financial performance and shareholder value. The company's stock options, represented by the ticker symbol MRO, allow employees to purchase shares at a predetermined price after a specified vesting period. These options are generally available to senior-level employees and executives as a part of their performance-based compensation. In terms of RSUs, Marathon Oil grants these units as a way to give employees actual stock after a vesting period, usually contingent upon continued employment. RSUs are often distributed to a broader group of employees, beyond just executives, as part of Marathon Oil’s incentive to retain talent. For instance, the company has emphasized its commitment to ESG (Environmental, Social, Governance) principles, and RSUs have been linked to performance metrics such as safety performance and greenhouse gas reduction goals in their executive compensation scorecards.

Marathon Oil has a comprehensive healthcare benefits program designed to meet the diverse needs of its employees, with a particular emphasis on modernizing and personalizing healthcare offerings from 2022 through 2024. Key healthcare-related terms and acronyms used by Marathon Oil include Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and Employee Assistance Programs (EAPs). These programs are part of their broader strategy to offer flexible and accessible healthcare options to employees. Marathon Oil has emphasized virtual healthcare services to increase accessibility and reduce barriers to care, particularly in areas like mental health and chronic disease management. This includes virtual behavioral health services, which have seen significant engagement, helping reduce stigma and improve access to care. Additionally, they have implemented a "click and mortar" strategy that allows employees to choose between virtual and in-person appointments, enhancing convenience and flexibility (Marathon Oil) (Marathon Oil). Moreover, the company has made efforts to improve communication about their health benefits. Recognizing that underutilization of benefits often stems from a lack of awareness, Marathon Oil has adopted an omnichannel communication strategy. This includes emails, text messages, webinars, and even physical signage at work sites to ensure that all employees are fully informed about their healthcare options (Marathon Oil).