Not all benefits described below may pertain to all retirees. 401(k) plans are generally qualified plans under Section 401(k) of the Internal Revenue Code (IRC). Such 401(k) plans allow capital accumulation for eligible employees who contribute money though voluntary payroll deductions (employee contributions) and receive a company match on eligible contributions (employer match). The amount of the company match is determined by the terms of the plan in effect at the time the company match is made and is dependent upon contributions made to the plan by the employee. For information regarding 401(k) plan benefits, please refer to the Retiree Financial Benefits Handbook.
Generally, 401(k) plans are designed to assist employees to save for long-term goals, including retirement. Retirees with a plan balance greater than $1,000 may leave their account balance in their 401(k) plan and continue to invest in available funds offered by the plan until age 70½. Transfers among investment funds may be made at any time. A retiree may also elect to take a total distribution anytime before age 70½. Following age 70½, retirees will receive required minimum distribution (RMD) payments. Retirees wishing to view their 401(k) account or initiate transfers and/or distributions may contact the recordkeeper for their plan:
Loan Balance & Payments
Retirees with an outstanding loan balance must continue to make monthly payments or pay off the loan. Failure to make timely payments will result in the default of the loan amount to include accrued interest. Loans are defaulted on the last day of the calendar quarter following the quarter in which a missed installment payment is due and will become taxable to the retiree (except for assets borrowed from after-tax sources) including a 10% excise tax if the retiree is under the age of 59½. To continue making monthly payments, retirees must sign up for direct debit through Automated Clearing House (ACH) by contacting the appropriate 401(k) recordkeeper. To pay off a loan, retirees must either use ACH or send in a certified or cashier’s check for the loan payoff along with the appropriate form: Merrill Lynch Loan Payoff Check Deposit Form or Premcor Retirement Savings Plan Manual Loan Repayment Form.
Marriages, Death, Divorces & Qualified Domestic Relation Orders (QDROs)
Retirees should contact Valero’s 401(k) Department when they experience a qualified status change. Proper documentation will be required for Valero to make the status change. In the event of a divorce, a certified QDRO is required if an alternate payee has been awarded a portion of the 401(k) benefit. A QDRO will specify any amounts a former spouse or other dependent(s) is entitled to. QDRO instructions and forms can be obtained from the Valero 401(k) Department.
A retiree with a plan balance is entitled to a distribution upon separation from employment. A request for a distribution can be made by contacting the appropriate recordkeeper. Retirees have several distribution options that include: a one-time lump sum cash payment, equal monthly installment payments over a certain period as specified by the appropriate plan, direct rollover to another qualified plan or direct rollover to an Individual Retirement Account (IRA). Detailed payment options can be reviewed in the 401(k) section of the Retiree Financial Benefits Handbook.
Forms may be obtained from the Financial Benefits Department at (800) 333-3377 extension 4808 or by selecting the following links.
Unless instructions on the form specify otherwise, mail forms to:
Valero Energy Corporation
Financial Benefits Department - MS: E1L
PO Box 696000
San Antonio, TX 78269-6000
Fax forms to: (210) 345-3063