Benefits

1. Benefits Valerie Smith Benefits Administration CITGO Petroleum Corporation

2. Post-Retirement Life InsuranceReduction 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 BenefitsNot 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 Benefitsafter Medicare Eligibility • Medicare becomes primary payor • Medicare carve-out • Not eligible for managed care plan • Prescription drug program

9. Retiree Medical Benefitsafter 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 BenefitsSpouse 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. CITGO Salaried Plan - 2001 (Non-Network Options) Retiree Medical Benefitsafter Medicare Eligibility

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

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

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

16. Example: Part A without Deductible MedicareCITGO Plan Part A ded. $792 Approved $792 Payment balance 80% Benefit 634 Patient Resp. $792 Net 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