No, the Dividend is not next. That won't go away since it's for the shareholders. What's next to go is our Pension. It's likely our private pension will be the next thing to take a hit. As Chevron reduces the pension payout or eliminates it, the company will shift the burden to the employee and the 401k plan. You can also expect the 8% match to be reduced. We may even go back to a profit sharing plan, where when company profits decline, so does your 401k match. Get ready for more changes. This is not the same Chevron anymore.
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Funny one 127446. Only one problem: it's called federal age discrimination law. If chevron was to try a blanket dump-you-at-60 rule, they'd have the Feds all over them. This one doesn't pass the sanity test and will not happen.
That's a funny one, Anonymous127436. But you may be close... it's more likely that by 60, all employees under PSG 26 may be forced to retire.
The new Chevron pension plan has been leaked. Once you hit 60, you will be transitioned into a customer service role at Chevron and Texaco service stations at well above minimum wage, $15 to $18 depending on which region you are in. You serve the corporation there until you decide to quit at age 66 or 67.
To answer your question - YES, our pension could be next next to go. The operative word is "could". If not completely eliminated, it could be tweaked. The pension is a benefit aimed to attract and retain the best employees. However, I disagree that employees would jump ship en made if it goes away. Chevron would replace the pension with something else of value, and in exchange for getting the monkey of its back, it might do something like increase the match from 8% to 10% or 11%. Who knows, maybe not even that. Keeping a high paying job may just be incentive enough for most people. You can wish for the status quo, but don't count on Chevron giving handouts anymore. We are entering a new period - even if oil prices start going up next year.
You really think the pension will be next c'mon! It's a retention incentive. Without it, do you know what kind of attrition you would have with opportunity jumpers? True, some companies have done away with them but keep in mind the revenue of our company in healthy economic times. We don't know what's going to happen with the price of oil In the short term but pension elimination would be a knee jerk reaction. Additionally, Any changes would likely have some sort of grandfather clause as in past retirement modifications (90 pts)
The Chevron Retirement Plan (pension) will likely be tweaked or eliminated as soon as January next year. The IRS will be adopting the new 2014 Mortality Tables, effective Jan 2016. This will increase the funding liability on all pension plans (public and private) because it will reflect the population is living 2-3 years longer than the previously used mortality tables. The few employers left who offer pensions to their employees are quickly replacing it with slightly more generous 401k plans, taking the burden off their backs and placing it on the employee to invest the money themselves. But in these hard times, don't expect to net out equal to better when Chevron makes the change. Expect less from the company.