After checking the info on my Benefits Connections/Retirement/Severance page on the advice of a manager, I noticed that the weekly regular earnings figure used to calculate my estimated severance is about 7% lower than my regular weekly salary noted on my pay check stub. This results in a lower estimate of severance than my own calculation, based on my pay statement. The difference is several thousand dollars. Several colleagues I have checked with report the same apparent discrepancy. Has anyone else noticed this, does anyone understand the basis for the difference, or is this an error?
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@2zkl, the ACA (Obamacare) rates indeed are predicated on annual income. The lower the better. But a retiree doesn't have to take the annuity to insure lower annual income. The retiree can opt for direct rollover of his/her pension lump sum into an IRA or the Vanguard ESIP 401k and take small monthly distributions along the amounts an annuity would pay. The retiree can take more or less as needed during the year. This route may be preferred by many, just be cognizant that investing your lump sum and taking distributions as well poses its own risks in that you could out life your retirement balance. I chose the annuity as it fit my circumstances the best and gives me price of mind of a guaranteed income stream. Social Security will kick in 4 years down he road, I have no debts, own my home and my 401k balance is over $1 million with no need to use for basic living expenses. Everyone needs to seek the best advise for their own situation. See a Certified Financial Advisor (or two), talk to a tax specialist, surf trouble sites in the Internet, etc.
If you take the annuity instead of the lump sum, then the ACA rates are comparable to the retiree rates, since you have that income. And the ACA insurance may be fine, but it is questionable, as others have stated. So in many cases the retiree insurance is costly, but still the better option. Now you can try to play the lump sum game with the markets, but do so at your own peril. (Spare me the "I'm an expert market timer/investor" comments, heard them all, watched many crash & burn).
My service was NOT bridged for severance.
Good luck actually using those HMO plans. The networks are extremely limited and the good hospitals are out of network so no coverage. Also, when hospitals are I network the doctors at the hospital rarely are.
To 1uqd: what insurance agent or how do you get covered under Obama care? I was laid off in Dec 2015. My insurance agent told me that I am not eligible for Obama care because my income for this year is too high ( severance plus CIP). I am paying $520 health insurance premium per month for me alone. I do not even afford for dental insurance. The COBRA rate quoted from a Chevron letter was $980 per month for me and 2 children. So, I am wondering under what special terms you are qualifying in Obama care insurance?
Care to share your story?
I am at 65 bucks for me and spouse. 5% of the Chevronites laid off will not have a job in 6 months. Guaranteed....so they must get on Obama Care or pay 2000 a month. You can keep paying your current premium for life to keep your policy.
What about chevron life insurance policies? What happens to an employees' life insurance policy that is through chevron if an employee gets laid off?
I'm on Obamacare since Jan 1. I have a zero-deductible Silver HMO plan with low copayments in the Houston area. Monthly premium is less than $60 and covers me and spouse. The Federal government kicks in $969 per month in subsidy toward my policy. Sweet. Take note the premiums are based on the level of coverage, number of insured, deductible amount, and most importantly, your total annual household income including retirement fund withdrawals or annuity payments. I still think Obamacare would be the best route for over 90% of pre-65 age retirees.
Everyone who went nuts over Obama Care aND get layed off will now be sucking Obama's nuts lol. Seriously, check out coverage during the 6 month period. You can get better coverage with the affordable care act.
GKR is right. The Chevron Retiree pool is soooo much smaller than the active employee pool, thus the pre-65 retiree premiums are a complete ripoff. Chevron will never tell you this until you go through a HR Benefits presentation 5 minutes before they show you the door. The frank truth is achieving 100% only will serve you after age 65. Big Deal.
Go Bernie Sanders!!! He's your only hope for free socialized medicine. Tax the hell out of the 1.5%. (Better raise that to the top 3%).
Esteemed @fse, I feel your pain. I'm not being a smartass, as I too befell the Chevon axe last year. If you already got your pension, it's possible you no longer have online access to the info you want to know (Chevron % contribution) to your medical coverage. I can certify that even if you had a 100 % Chevron contribution, your Chevron medical premiums before age 65 would give your a stroke. The Chevron % contribution on the other hand will be beneficial ONLY after age 65. Only then, when you will be covered under Medicare (if that is still around) will you have a chance at getting a low enough monthly premium. If you are now retired (forceful or voluntary) and have exhausted your 6-month subsidized COBRA medical, your best alternative is Obamacare. Check it out.
@fse, the answer given by @qdv is correct. Chevron giveth and Chevron can taketh away. If they do, it applies to everyone. I doubt they will do this however. The worst they will do is discontinue the benefit for new hires. As far as knowing what your Chevron medical contribution percentage is, just call the HRSC at 1-888-TALK2HR and request they send this information to you in writing.
@fse - If I understand your question correctly you are concerned about the percent of retirement health care premium that the company will pay you when you retire. This is not affected by the retirement release that you sign. It specifically does not waive claims concerning any "other employee benefit plan." However, you should know that that the retirement health care benefit can be revoked by the company at any time for everyone without notice, you have no vested interest in it. So by the time you retire, or even after you've retired, Chevron can decide to do away or change it. Many large companies have done away with or drastically changed retirement health care coverage in recent years, so it's not that unlikely that Chevron might follow suit.
PLEASE, if someone can shed light on my question below.
I have 70 wellness medical points (I cannot remember exactly what the term is but it is related to the medical insurance payment when I retire from Chevron). Now that I am laid off and after I signed the severance package, does that means in future, time come for me to take the retirement distribution, I would not be entitled to participate in the reduced insurance premium with the points I earned.
I was thinking that the intend of the severance package was waving of lawsuit but also meant to cut off all ties and benefits (such as this accused medical point).
HELP.... please.... answer is no where to be found from HR communication (if there is any).
@pcj and @kqm - The date used for severance calculations is NOT always the same as the other benefit dates. If you look at the SESP documents it refers to the SESP health and welfare eligibility date, which can be different from the dates used for other benefits. The date is defined int the SESP FAQ and is based on your "Most Recent Date of Hire". This can be found at the top right of the retirement overview & status page in the Benefits Connections website . If you have a complicated working history, i.e. left Chevron, Texaco, Unocal, etc. and then came back to one of them this could be less generous than your Benefit Accrual Service, Vesting and Eligibility Service, or Health and Welfare Service (it was for me).
You are paid bi-monthly not weekly. Divide your yearly salary by 52 instead of 48 to get weekly pay.
Under the Retirement Plan tab, I know for sure it says "Benefit Accrual Service". In other documents Chevron uses the acronym BAS. But to be sure you are referencing the correct info, get the answer from your HRBP.
Pretty sure is says health and welfare eligibility service...not BAS
It depends on your specific situation but in general they will bridge your service
kqm, your answer is found on the Chevron benefits connection website. Sign-in at work or the external webpage at hr2.chevron.com. Under the Retirement Plan tab, select Overview & Status. Scroll down to Service and there you will see your Benefit Accrual Service (aka, BAS). That number with 4 digits past the decimal are your years of service used to determine not only your pension, but your severance benefit. If it doesn't agree with what you recall or figured, please see your HR Business Partner immediately. Always make sure you understand Chevron calculates your years of service for all your benefits. If there's a mistake, follow up diligently until it's corrected. Never rely on verbal commitments, get it in writing. Memories fade and HR employees move on.
In calculating your time of service, if you have a couple of years of a break in service, are you given credit for all of the time or just the last continuous period
duj is in the know. Check the dates to protect yourself while you're still employed just in case you get caught in the crossfire might be worth getting your facts straight beforehand. If you find a discrepancy and are unable to get anywhere with HR, a friend of mine suggested getting in touch with Brent Rasted for any questions regarding severence discrepancies.
Doesn't hurt to look out for yourself.
Great advise, duj. Everyone who has worked for Chrvron as a contractor then hired in as an employee or was part of Gulf, Texaco, Unocal before the merger, please get this important matter confirmed in writing. Not verbal. One you are out, you will won't be screwed, but like duj just said, you will face lengthy delays and worry.
On a related note, on that benefits page the OP mentions you can also see your years of service. Several people who have checked have found big errors that seem to relate service years they were guaranteed post merger or acquisition by Gulf, Unocal, Tenneco etc. If you see a problem, contact your HR Business Partner immediately while you are still on the payroll. Everyone that faces a potential layoff should be checking these things asap. After you are debadged, then later taken off the payroll, the appeals process is long and protracted (6-12 months or more) as some have found out the hard way folling the RAE.
No, the petrotech bonus is not part of your salary, if you get one. It is listed as a seperate item below the regular salary amount.
Is it the Petrotech bonus? That is currently 8% and is NOT part of your income when determining weekly wage for severance calculation.