On December 31, 2019, SABIC froze the existing SABIC Innovative Plastics Pension Plan (the “Pension Plan”), and after this date, benefits stopped accruing in that plan (this is commonly known as a “plan freeze”).

In addition, on January 1, 2020, all employees started participating in a consistent match and contribution arrangement in the SABIC U.S. Employee Retirement Savings Plan (the “Retirement Savings Plan”). This contribution structure includes a 50% company matching contribution, up to 8% of your pay (as much as a 4% matching contribution), along with an automatic contribution from SABIC of 5% of your eligible pay to your Employer Retirement Contribution Account (“ERCA”), regardless of whether you contribute to the Retirement Savings Plan. As part of these changes, for certain eligible employees (described below), SABIC is also contributing a percent of your eligible pay based on your age each year for up to seven (7) years (“special transition credits”).

If you were an employee on the Legacy Core, Delta, or SAI retirement income platforms, these changes affected you.

If you were hired on or after January 1, 2014, these changes did not affect you and you are not eligible for any Special Transition Credits.

Please refer to the Definitions section of these FAQs or the Benefits Handbook, found on the Your SABIC Total Rewards site, for more details on the definition of a Legacy Core, Delta, and SAI employee.

If you were an employee on the Legacy Core or Delta retirement income platforms, your retirement income benefit will consist of your frozen Pension Plan benefit (through December 31, 2019) as well as your vested Retirement Savings Plan balance. Your Retirement Savings Plan balance includes your contributions, SABIC’s contributions, and any investment earnings or losses.

If you were an employee on the Legacy SAI retirement income platform, your retirement income benefit will continue to consist of your vested Retirement Savings Plan balance including your contributions, SABIC’s contributions, and any investment earnings or losses.

When a plan is frozen, participants will no longer accrue any additional benefits in the plan. However, participants retain all benefits earned up to the date of the freeze and will be eligible to commence benefits in accordance with the plan (at separation of employment or retirement subject to the current plan provisions). Additional service will continue to count for limited purposes, such as eligibility for early retirement. Active employees as of December 31, 2019 became fully vested in their Pension Plan benefit.

Similar to SABIC, other employers are transitioning from retirement offerings that include a traditional pension to defined contribution arrangements, such as 401(k) plans. SABIC’s overall commitment to the retirement program remains strong and this redesign ensures SABIC remains competitive in the U.S. as an organization and employer of choice by making costs more predictable.

This change also allows for a more simplified, market‐competitive retirement program that gives you more control to manage to your retirement savings goals. Further, the redesign includes special transition credits for the first seven years based on an employee’s age, which are designed to ensure the easiest transition possible – especially for participants nearing retirement.

Yes, SABIC explored a variety of scenarios and selected this redesigned plan as it offers a retirement program that is financially sustainable for SABIC and its employees, and provides a transition period to assist those employees nearing retirement. These changes represent a shift from a traditional pension plan approach to a more flexible, market-competitive retirement program.

Many employers, both in the not-for-profit and for-profit sectors, have decided to freeze their traditional pension plans. Employers are transitioning from traditional pension plan approaches to 401(k)-type defined contribution plans due to the appeal of visible account balances for employees and greater financial predictability for employers.

No. However, we encourage you to use the resources provided by SABIC to learn more about the changes to the Retirement Savings Plan. In particular, make sure you understand the contribution structure in effect as of January 1, 2020 and consider reviewing your deferral election to be sure you’re taking full advantage of the company matching contribution.

You could also take this opportunity to review your investment elections or consider making a one-on-one appointment with a Fidelity Planning & Advice Professional.

The Pension Plan provides annuity benefits payable at your retirement age, with survivor annuity options for your spouse. SABIC funds this benefit.

The Retirement Savings Plan provides a benefit when you leave or retire from SABIC based on the value of your vested account, which is comprised of your contributions, SABIC’s contributions, and any investment earnings or losses. Under the Retirement Savings Plan, you have both the flexibility and the opportunity to contribute a portion of your annual pay and invest your contributions and any SABIC contributions.

The investment risk in the frozen pension plan will not be transferred to you — it remains the sole responsibility of SABIC. With the Retirement Savings Plan, you decide how your account is invested. This may provide you with more opportunity for growth but also more responsibility for your retirement savings and investments. You can select from a variety of investment options under this plan depending on your risk tolerance and time horizon.

Yes. SABIC has redesigned retirement plans in other countries and is now redesigning its retirement programs in the United States and Canada.

If you are a Legacy Core or Legacy Delta employee, then as an eligible employee in the Pension Plan, you were affected by the freeze.

If you are a Legacy SAI employee or were hired on or after January 1, 2014, you are not eligible for the pension and thus were not affected by the freeze.

Please refer to the Definitions section of these FAQs or the Benefits Handbook, found on the Your SABIC Total Rewards site, for more details on the definition of a Legacy Core, Delta, and SAI employee.

Your Pension Plan accrued benefit (expressed as an annuity payable at your normal retirement date) will be calculated based on compensation and service as of the freeze date (December 31, 2019). You will no longer earn any future accruals under the plan after the freeze date.

No, your vested benefit accrued as of December 31, 2019 will not be reduced or eliminated. Pension benefits are also protected under federal law through the Pension Benefit Guarantee Corporation (PBGC).

The Pension Plan is designed to provide income for retirement. As such, the Plan does not allow benefits to be paid before you terminate employment with SABIC and satisfy retirement eligibility requirements defined in the Plan. When your employment with SABIC ends, you can request information about benefit payment options and timing. For more information, contact the SABIC Benefits Service Center at 877-SABIC-US (877-722-4287), and select option 2.

If you have any questions on the current Pension Plan provisions, please review the Summary Plan Description. You may also contact the SABIC Benefits Service Center at 877-SABIC-US (877-722-4287), and select option 2.

Yes, the plan freeze will not affect the payment options available when you meet the plan’s retirement eligibility criteria. For more information about retirement eligibility and payment options, contact the SABIC Benefits Service Center at 877-SABIC-US (877-722-4287), and select option 2.

If you are a Legacy Core employee, you can receive an unreduced pension benefit starting at age 60. Because your monthly benefit is not reduced for commencement prior to age 65, your pension benefit is subsidized for early retirement (i.e., there is no reduction in the benefit to account for the longer payment period).

When deferring benefit commencement past age 60, you will likely notice a decrease in lump sum value estimates. Since a lump sum represents the present value of the expected stream of future monthly payments (calculated with assumed interest rates and life expectancies), a deferred retirement effectively shortens the period of time for which payments will be received. In other words, the lump sum value decreases when retirement is deferred since you are receiving the same monthly payments for a shorter period of time.

For a simplified example, assume a Legacy Core employee with a monthly pension of $500 is presumed to live until age 85. Since the benefit is unreduced at age 60, this employee would receive the full $500 monthly pension benefit from age 60 to age 85 (assuming commencement at the earliest possible age). The lump sum represents the present value of 25 years of payments in this case. If this employee defers commencement to age 65 (and is still presumed to live until age 85), he would still receive $500 per month – but only for 20 years. Therefore, the lump sum is lower as a result of the later commencement.

Redirecting employer contributions to the Retirement Savings Plan rather than to the Pension Plan will help ensure that our retirement program remains financially sustainable. Doing so provides you with more control over your retirement savings and opportunity to invest for your unique retirement goals. We realize that with added control and opportunity come additional responsibilities for your retirement savings elections and investment choices. SABIC provides you with tools and resources to help you maximize your retirement savings.

On January 1, 2020, all employees started participating under the same contribution structure, which includes the following features:

• Your Contributions – You can contribute up to 80% of your eligible pay each pay period with pre‐tax, Roth, and after‐tax contributions, or a combination of the three, subject to IRS contribution limits.

• Company Matching Contributions – SABIC makes a 50 cent matching contribution for every dollar you contribute, up to 8% of your pay (as much as a 4% matching contribution).
• Employer Retirement Contribution Account (ERCA) – SABIC automatically contributes 5% of your eligible pay per pay period, regardless of whether you contribute to the Retirement Savings Plan.
• Special Transition Credits – SABIC will contribute special transition credits starting in 2020 and ending in 2026. These credits will be a percentage of eligible pay based on your age each year while you are a plan participant and your current legacy organization. These credits will be made regardless of whether you contribute to the Retirement Savings Plan.

For purposes of the Retirement Savings Plan, your eligible pay is pay you receive while you’re an active Plan participant as defined by the Plan, limited to $285,000 for the 2020 Plan Year (subject to IRS changes). The definition of eligible pay is not changing as part of this transition.

If you have questions about eligible pay, please review the Summary Plan Description. You may also contact the SABIC Benefits Service Center at 877-SABIC-US (877-722-4287), and select option 2.

No. The vesting schedule under your current legacy organization will continue after the transition.

The Special Transition Credits will be a percentage of your eligible pay. The percentage is based on your current legacy organization and your age on January 1st of each calendar year, which means your credits could grow over time as you reach different age brackets. The special transition credits will be contributed starting in 2020 and ending in 2026.

The special transition credit schedule is shown in the table below.

Age 1	Legacy Core Employee 2	Legacy Delta Employeee 2	Legacy SAI Employee 2
Under 30	0%	0%	3%
30-34	0%	0%	3%
35-39	1%	0%	3%
40-44	3%	1%	3%
45-49	5%	2%	3%
50-54	9%	5%	3%
55-59	13%	8%	3%
60 and over	13%	12%	3%

¹ Age as of January 1st of applicable year
² The Special Transition Credit is expressed as a percentage of eligible pay

No. SABIC automatically contributes 5% of your eligible pay to your Employer Retirement Contribution Account each pay period.

However, keep in mind that contributing to the Retirement Savings Plan allows you to take advantage of the company matching formula under the contribution structure (50 cents up to 8% of your pay, as much as a 4% matching contribution).

Since employee contributions and SABIC contributions have the potential to grow with investment returns over time, it is generally a good idea to contribute at least the percentage of pay that allows you receive the full SABIC matching contribution under the contribution structure. The matching contribution formula is 50 cents up to 8% of your pay (as much as a 4% matching contribution). Accordingly, you would need to contribute at least 8% of your pay to receive the full matching contribution.

Visit the Take-Home Pay Calculator on NetBenefits® to see the impact of Retirement Savings Plan contributions on your paycheck.

Keep in mind that many financial experts suggest you save at least 15% of your annual pay to be financially prepared for retirement.

For 2020, the maximum annual amount of pre-tax contributions you can make to the plan is $19,500 (up to $26,000 if you are age 50 or older). The maximum total contributions, including your contributions and SABIC’s contributions (but excluding catch-up contributions if you are age 50 or older), cannot exceed $57,000. For purposes of calculating your contributions to the Retirement Savings Plan, compensation is limited to $285,000, and therefore any pay over $285,000 is not considered. These limits are subject to adjustments by the IRS.

On January 1, 2020, the coverage level in the SABIC Basic Retiree Life Insurance Plan became $15,000. Please note that this change only impacts the Retiree Life Plan for Legacy Core employees and current Core retirees.

There are no changes to the coverage level in the Retiree Life Plan for Legacy Delta employees and current Delta retirees at this time.

SABIC did not make any changes to Retiree Medical Benefits Plan in connection with the retirement plan redesign. However, the right is reserved to change this plan at any time in the future.

The all-employer-paid portions of the DC plan design which include up to a 4% SABIC match on an 8% employee contribution and an additional 5% SABIC contribution is market competitive in Canada or US, as appropriate. In fact as you may know, this is the plan design that SABIC offers to all of new hires and re-hires since January 1, 2014. For pension-eligible employees, the special transition credits were designed to provide a comparable benefit to the accruals of the pension plan throughout the transition period. The value of your pension benefit increases as you approach retirement. As such, the special transition credit schedule also increases with age. The combination of your frozen pension benefit, and the accumulated value of the 5% additional SABIC contribution and special transition credits, is intended to deliver a similar value to what you would have earned in the pension plan through the end of the transition period.

It is premature to answer Compensation and Benefit (C&B) questions related to an intended transaction at this point. The decision to freeze the Canadian or US, as appropriate DB Pension plans was independent of the Specialties project, and is connected to the broader C&B strategy both globally and regionally. Of course with any transaction SABIC will seek to assure that employees are treated equitably.

The date of calculation will be as of January 1st of every year. Transition credits will be applied to your retirement account beginning in the first quarter of 2021 and will follow this pattern throughout the 7-year transition period.

SABIC is providing education and support to help you take the maximum advantage of the redesigned Retirement Savings Plan.

You can view a timeline of upcoming events and communications on the homepage.

You can view many resources available to you on the Resources page.

You are on the Legacy Core Retirement Platform if you are not a Legacy SAI employee (see the What does it mean to be a Legacy SAI employee? question below) and you satisfy any of the following eligibility criteria:

• You are an exempt employee or non-exempt non-manufacturing employee who was hired by the General Electric Company (GE) before January 1, 2005 and transferred to SABIC Innovative Plastics on October 22, 2007 (or were on leave from GE on that date and transferred to SABIC Innovative Plastics upon the expiration of your leave) and maintained your continuous Service between January 1, 2005 and the date of your transfer to SABIC Innovative Plastics; or
• You are a non-exempt manufacturing employee hired by SABIC Innovative Plastics or its predecessor General Electric Company before January 1, 2008 and if this hire date was before October 22, 2007 you transferred to SABIC Innovative Plastics on that date (or were on leave from GE on that date and transferred to SABIC Innovative Plastics upon the expiration of your leave) and maintained your continuous Service between October 22, 2007 and January 1, 2008; or
• You are an hourly employee hired by SABIC Innovative Plastics or its predecessor General Electric Company before January 1, 2008 and if this hire date was before October 22, 2007 you transferred to SABIC Innovative Plastics on that date (or were on leave from GE on that date and transferred to SABIC Innovative Plastics upon the expiration of your leave) and maintained your continuous Service between October 22, 2007 and January 1, 2008; or
• You are an employee re-hired by SABIC Innovative Plastics after October 22, 2007 and before January 1, 2014, and you were classified as a Core employee during a previous period of employment by the Company, and you did not take a lump-sum payment from the SABIC-IP Pension Plan.

Please also note the following:

• If you were a Legacy Core retirement platform employee prior to January 1, 2014, and you subsequently transferred directly to another Participating Company (see Section 10.8 of the Retirement Savings Plan Summary Plan Description, “Which SABIC Affiliates Are Participating Companies?”), you will remain a Legacy Core retirement platform employee and may continue to be eligible for participation in the Savings Plan as a Legacy Core retirement platform employee following such transfer. SABIC is providing education and support to help you take the maximum advantage of the redesigned Retirement Savings Plan.
• Your classification as a Legacy Core employee under the Savings Plan may not determine your classification under other retirement and benefit programs. Please see the applicable summary plan description for such other programs for more information.

You are on the Legacy Delta Retirement Platform if you are not a Legacy SAI employee (see the What does it mean to be a Legacy SAI employee? question below) and you satisfy any of the following eligibility criteria:

• You are a non-exempt manufacturing or hourly employee hired by SABIC Innovative Plastics on or after January 1, 2008 and before January 1, 2014, and you were not previously classified as a Core employee during a previous period of employment by the Company; or
• You are an exempt employee or non-exempt non-manufacturing employee hired by SABIC Innovative Plastics on or after October 22, 2007; or
• You are an exempt employee or non-exempt non-manufacturing employee hired by the General Electric Company (GE) on or after January 1, 2005 and you transferred to SABIC Innovative Plastics on October 22, 2007 (or were on leave from GE on that date and transferred to SABIC Innovative Plastics upon the expiration of your leave) and maintained your continuous Service; or
• You are an employee re-hired by SABIC Innovative Plastics after April 1, 2011 and before January 1, 2014, and you were classified as a Core employee during a previous period of employment by the Company, but you took a complete lump-sum payment from the SABIC-IP Pension Plan.

Please also note the following:

• If you were a Legacy Delta retirement platform employee prior to January 1, 2014, and you subsequently transferred directly to another Participating Company (see Section 10.8 of the Retirement Savings Plan Summary Plan Description, “Which SABIC Affiliates Are Participating Companies?”), you will remain a Legacy Delta retirement platform employee and may continue to be eligible for participation in the Savings Plan as a Legacy Delta employee following such transfer.
• Your classification as a Legacy Delta employee under the Savings Plan may not determine your classification under other retirement and benefit programs. Please see the applicable summary plan description for such other programs for more information.

You are on the Legacy SAI Retirement Platform if you are an employee who satisfies either of the following eligibility criteria:

• You were an active employee of SABIC Americas, Inc. as of April 1, 2013, or you were on an approved leave of absence from SABIC Americas, Inc. as of April 1, 2013 and returned directly to work for a Participating Company (see Section 10.8 of the Retirement Savings Plan Summary Plan Description, “Which SABIC Affiliates Are Participating Companies?”) following such leave of absence; or
• You were hired by SABIC Americas, Inc. after April 1, 2013 and before December 31, 2013, and were not employed by another Participating Company – either as an active employee, on an approved leave of absence, or on layoff status – immediately prior to your hire date.

Please also note the following:

• If you were a Legacy SAI retirement platform employee prior to January 1, 2014, and you subsequently transferred directly to another Participating Company, you will remain a Legacy SAI retirement platform employee and may continue to be eligible for participation in the Savings Plan as a Legacy SAI retirement platform employee following such transfer.