1. Benefits Valerie Smith Benefits Administration CITGO Petroleum Corporation

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

3. 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

4. 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

5. 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

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

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

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

9. 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

10. 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

11. 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

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

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

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

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

16. Example: Part A without Deductible MedicareCITGO Plan Part A ded. $792Approved $792 Payment balance80% Benefit 634 Patient Resp. $792Net Patient Resp. $158 Applied to OOP$158

17. 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

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

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