ExxonMobil is one of the large U.S. employers whose pension plans still add benefits each year. Its 10-K reported $517 million of U.S. pension service cost for 2025.
Where the ExxonMobil pension stands
ExxonMobil's U.S. pension plans are still accruing: they reported $517 million of service cost in 2025. At the end of 2025 the U.S. funded plans had $81 million less in assets than their benefit obligation, and the unfunded U.S. plans had a $1.393 billion obligation. The 10-K doesn't publish the benefit formula.
Lump sums and insurer transfers
In 2025 the ExxonMobil Pension Plan bought a group annuity contract from an insurer for $767 million, transferring the obligation to pay those participants' future benefits. ExxonMobil says the amounts payable to transferred participants didn't change.
What a lump sum is worth in 2026
When a private plan pays a lump sum, it can't be smaller than the IRS 417(e) present value. Plans that use November rates for 2026 apply the November 2025 segment rates: 4.07% for payments in years 1 to 5, 5.15% for years 6 to 20 and 6.01% after that, with the IRS 2026 mortality table from Notice 2025-40. On those inputs, a $3,000 monthly benefit starting at 65 has a minimum lump sum of about $442,500. Your plan's lookback month can differ, so check your Summary Plan Description, and run your own benefit through the lump sum calculator.
PBGC coverage
Benefits still in a private single-employer plan are insured by the PBGC. For a plan that terminates in 2026, PBGC guarantees up to $7,789.77 a month for a straight-life annuity starting at 65, less for earlier starts or survivor forms. Benefits moved to an insurer leave the PBGC system and rely on the insurer and state guaranty associations instead.
Social Security
ExxonMobil jobs paid into Social Security, so the Windfall Elimination Provision never applied to these pensions, and WEP was repealed anyway for benefits payable after December 2023. If the pension covers your basic expenses, delaying Social Security toward 70 raises the one income source that adjusts for inflation. Model it with the Social Security calculator.
The ExxonMobil employer page lists the filings behind every date and dollar figure here.