High level gossip coming out of San Ramon on Thursday, Nov 19 suggests the Chevron Pension Benefits and the ESIP 401k company match will be reduced if by the beginning of the 2nd quarter 2016, our cash flow position is still at risk. All this to not cut the dividend. Wait for breaking news at the February 2016 Worldwide Employee Town Hall.
20 replies (most recent on top)
A new pension plan was introduced for new hires as of Jan 1, 2008. For all employees hired before that date, the same pension plan remains today. So nothing changed. Chevron only has two separate plans now, that's all.
If you were hired after 2008 you get the lump same basis pension (11% X years of service) instead of the monthly benefit basis pension (1.6% X years of service). Also, the rule for retiree medical was changed to 90 points. Both are benefit reductions, although they didn't impact existing employees.
You must have worked for a different Chevron than me in 2008.
Benefits were cut in 2008 when the pension program was modified.
Wish they would just pay good money for talent. Fire the waste and we wouldn't need adjustments like this
37 years and 7 layoffs later. I have never seen benefits cut. People have been laid off, but benefits have never been cut.
If you work for a company for 37 years and poor performers are getting it wouldn't you wait it out for retirement and a package. Do the math.
The vast majority take the lump sum, but I do agree that many are holding on hoping for a 1 year bonus severance package.
That's assuming all long timers are opting for the lump sump, actually quite a few are hanging waiting FOR the fed to raise interest rates so that their annuity payments can rise, plus is waiting brings a nice package, that's a little bit extra.
The Fed raising interest rates will reduce the lump sum value. Chevron doesn't have to do anything. Many near-retirees will basically be working for free if they don't retire very soon.
That's a novel idea, Jed. You should bring this idea to John Watson & Company. He will make you VP of Human Resources and Total Renumeration on the spot. You sure have a devious mind for these kind of things. I'm glad I'm out already after 36 years. I left in April with a juicy severance check and a mountain of a lump sum pension so high, I've been swatting off the wealth management companies who call me 3 times a week looking to get my business. Best of luck to you. I hope your idea doesn't come back to bite you one day.
Reducing the pension lump sum benefit would be a huge incentive to long-timers to retire. It is sort a reverse enhanced severance. It costs CVX nothing but people will run for the exits to get the highest lump sum possible.
I haven't heard of changes to the Pension Plan, but I heard from several managers of possibly reducing the 401k match to 6%.
Better yet, steal your damn supervisor's badge for a few minutes and go swipe it back and forth a thousand times inside the stairwell. Be sure to hear his remarks after he gets his direct deposit the following pay period.
I love the last cost-savings idea of deducting $1.25 from an employee's paycheck each time they swipe their badge while moving through the building. I can only imagine the counter measures most employees will employ to thwart the charges; piggy backing on shoulders of others going through turnstiles and entry doors, plain ole jumping over the turnstiles like they do in the NY Subway, temporarily swiping a co-worker's badge to run an errand on another floor.
Anon368, yes Chevron is maximizing the benefit from the layoffs in the following ways 1) We will no longer be paying $60 a month/ employee to IT to support these employees email addresses and software product licenses. The greatest cost savings will be from those employees who had the largest inbox capacity. 2) Energy efficient lightbulbs will all be replaced with even lower wattage lightbulbs. 3) Will further reduce energy costs by running only 50% - 60% of the elevators in the buildings. 4) employee productivity will be increased thanks to our new touch screen room booking panels! 5) last but not done ( I've been postponing my workpace break for too long now and my health is more important) The company will no longer supply coffee in the break rooms, we will begin stocking recycled 8.5" x 11" paper in bathroom stalls, and $1.25 will be deducted from an employee's paycheck each time they swipe their badge while moving through the building.
359, Are you serious? All this shit and you want to know about excess furniture and pencil sharpeners? On that topic, does anyone still use pencils anymore? I think we all now use mechanical pencils, so I suppose your concern is only about excess furniture, not the pencil sharpeners?
Is Chevron doing anything to maximize the benefit from the people being laid off? What are they doing with all the excess furniture, pencil sharpeners, staplers, etc.? Surely they can do more to protect the dividend.
Dividend is more important to me as a Chevron investor. Cut everything else. Fire half the work force. Company will be more productive.
Oil traders are preparing for another downward turn in prices by March 2016, market data suggests, as what is expected to be an unusually warm winter dents demand just as Iran's resurgent crude exports hit global markets after sanctions are ended. Mild winter weather over the coming months could see weak heating demand in the U.S. and Europe. This would likely be the trigger for adjustments through the physical market, pushing oil prices down to cash costs, which are estimated are likely around $20 per barrel. Next year is not good for the oil industry.