A few more days to go and we'll know how the Legacy Anadarko VSP will be structured. According to the HR meetings, it will be CoC. However, they didn't know about the 70 day rule and some other details. Another unknown is how they will handle the Legacy HRA for less than 175 folks. For those that are not aware - when APC took away the retiree medical, some employees were grandfathered in to receive the medical subsidy if they retired at 55 with 10 years service. Not many of us, so I hope that benefit stays.
2 replies (most recent on top)
For the Legacy HRA - it was asked of them to point out where in the merger agreement it stated that. The merger agreement actually states 'the Effective Time' - not the date the agreement was put together. The 'Effective time' was later defined as the Closing date - Aug 8th. All documents are filed with the SEC, so.... that should be the legal definition of the 'Effective Time' for employee benefits. The date the agreement was put together is nothing - no approvals from SEC or APC shareholders had happened yet - there was no merger until the deal closed.
In addition to that, they left the APC employee benefits in place 'as is' until the end of 2020. For those that turned 55 after Aug 8th, they should still qualify since they would get the benefit that is available and still in place until Jan 2021.
Actually they answered both if those questions at the session I went to
- 70 day rule doesn’t apply under the VSP. It’s strictly a COC thing and technically this is not under the COC plan. If you elect for VSP payment will be made after the revocation period expires which is 8 days after you return the release.
- Legacy HRA will be honored for anyone that qualified as of the date of the deal was signed (May 9th). Sounds like there may have been some language in the agreement to protect it up to that point but if you met the requirements of being grandfathered and turned 55 after the deal was signed you might be out of luck.