Thread regarding Chevron Corp. layoffs

@dfpi - That's exactly why I asked. It seems way to good to be true.

Be careful. He probably also has a good deal on some oceanfront property in New Mexico.

@dddb - Could you be more specific on the "cash-like TIPS inflation protected security and be easily earning 3 to 4 times that amount"? I'd be interested in that if it really exists.

@dswr, the Towers Watson 'OneExchange' is the largest third party administrators of corporate healthcare plans in the United States. They take care of all the administrative duties that Chevron used to handle for their employees and retirees. Farming these services out to Towers Watson for 2017 was a cost saving move for Chevron. Nothing more than that has changed except for the changes in medical plans, which is another cost savings move. The cost of your medical plan will depend on your market. Where you live will determine your net premiums, regardless if you are an employee or retiree. The company medical contribution will remain the same for employees and retirees, with one fixed amount for employees, another amount for pre-65 retirees and another amount ($96) for post-65 retirees.

Very true, dkxz. Actually the 100% company contribution for post-65 retirees is a paultry $96 per month. I know a retiree who lives in Covington, LA and is 68 years old. This year she is paying a monthly premium of around $157 through Humana. Next year, she will be choosing a new provider through OneExchange. The coverage she will get remains the same and she gets to keep her PCP, but now her monthly payment will drop to zero. Yes, Zero. Even though the company contribution is only $96, the Medicare Advantage Plan covers most of the medical services and the private side of the Chevron Plan pays for the other costs not covered by Medicare.

Dull: The medical used to be much better but CVX changed it and now it is what it is. Even for post 65, it's not much. Basically they give you $95 or so a month and make you go buy what you can.

I'm not going anywhere near the CVX Retiree Medical Plan until I hit 65. Way too expensive before then. I hope no one made the mistake of enrolling and later realizing you can't afford it or you end up finding a job and need to drop out. Once in and you decide to leave, that's it for you. And what's up with all that fuss to get 95 points to earn the 100% Chevron Medical Contribution. The contribution amounts for an employee vs retiree are almost polar opposites. Chevron HR doesn't hand out the information on retiree medical while you're still around. No, they play dumb and give everyone "estimates", all in an effort to conceal the truth of the real cost of retiree medical and their contribution amount. You will only find out the truth once you're at home with no way of returning to the office. That's the Chevron Way.

I know quite a few retirees who leave only a smidge of cash laying around. Only about 6month to a years expenses. But they put a certain amount of their portfolio in an investment vehicle which is very stable, not subject to the whims and capriciousness of the general market, and they are not expecting big returns on it. Most actually consider it part of their "cash". in a way. Just keeping up with inflation and maybe a percent or 2. It's quite the much-discussed topic on the retirement boards. But, no, the braggadoccious "Damn, I can get BLAH BLAH BLAH" if I invested it, does not apply to your safe money. The investments sought after are extremely conservative and with the absence of decent interest rates these days, the options left require a lot more creativity and slightly higher risk.

I repeat - It takes a special kind of stupid to compare an FDIC insured interest bearing savings account, CD or backed Treasury to the stock market without consideration of the relative risks involved. I read a lot of posts made by children on this site to that effect. It makes no difference how much other capital that you have, invested or otherwise. If you are that financially illiterate, do yourself a favor and pay for an FA. You need one. If you are simply a naïve noob who just fell off the turnip truck and doesn't have a clue and is plagued with "recency bias" since the market has been recovering from a recession, I apologize. Go out there and learn your lessons on your own and come back in 30 years.

Very good. You make good point. Never mind. :)

-bizb, refer to the post from bwgw.

It takes some kind of stupid to invest in something that can't even keep pace with inflation. If you are that scared, best to go with the annuity that pays 6% and is backed by both CVX and the Federal Govt.

-behd, you missed the point entirely. The $250,000 is after-tax cash that was accumulated in bank savings accounts and CD's over many years. Of course it can be earning a lot more than the 0.5% interest banks pay, but the retiree already stated he/she has around $1.7MM invested in the market. The advantage to having the $250,000 free cash is no longer having to report it on the tax return as new income. The retiree only has to live off a small trickle of reportable income coming from retirement savings, and it's only that amount that gets reported on the annual tax return. Living this way, the retiree is able to rake up on the maximum Obamacare subsidies. The maximum subsidy for a couple reporting $27,150 is around $2,200. Annually, that's $26,400 in subsidies through Obamacare. That equates to about a 10.5% return on a $250,000 investment. Not bad at all. And to top it off, the retiree gets a medical insurance policy for under $80 a month. Do you now see why you missed the point entirely?

It takes a special kind of stupid to compare a FDIC insured interest bearing savings account, CD or backed Treasury to the stock market without consideration of the relative risks involved,

As a rule of thumb for Obamacare, if you make less than $46,680 as an individual or $95,400 as a family of four, you make less than 400% FPL and will qualify for some sort of assistance. Note that cost sharing reduction subsidies are only offered on Silver Plans.

Consult www.ObamacareFacts.com.

Yes, he or she is giving up $10,000 a year to "take it from the man" but in reality is shooting them self in the foot. IQ = 00

iajo- So what is the opportunity cost of having $250,000 sitting in a bank collecting 0.5% interest? You could invest in CVX stock and get over $10k per year in dividends - or do even better elsewhere. Even after paying tax on that return, living "income poor" to get subsidized ACA coverage seems to be a questionable financial choice. And then what happens when the ACA is overhauled and you can't get back on the CVX retiree medical plan?

9trc: well said.

@8voq, Yes this is America where the smart ones come out winners and pay their honest fair share of taxes their entire lifetimes and have plenty left over for fun and enjoyment. It's a shame that you were not one of those smart ones and have to resort to cheating the government and be a parasitic dependent mooch on others whom you nurse off of like a pathetic little helpless baby.

-7dhj, it's a tough and cruel world out there, and if you haven't realized it yet, our government's all mighty taxing machine and the IRS is the cruelest of them all. When you are working for an employer, you have nowhere to hide. You will pay your taxes, like it or not. But if you are smart and plan long range, you can gain the upper hand and pay hardly anything at all. This is America, where the smart ones come out winners.

If you want to meet the biggest freeloading bums on this planet it's the old wealthy retards who claim that they have "Paid their Dues" so they are for the rest of their lives permitted to cheat the government and the tax-payers, all of the hard-workers in this country who are struggling to make ends meet and feed their families. Those hard-working tax-payers are honest and are paying their taxes to support all the public services that the parasitic leech sponges use who claim that they have " paid their dues". There's no such thing as being exempt from taxes when you still use public services. The taxes that you paid in the past are the same as other honest people had to pay no different , you're not special. The only difference is the honest people CONTINUE to pay their fair share, to support the public services of all types and the arrogant self centered parasitic sponges on society do not, even some who can afford too, like most all on this forum and in the O& G Industry.

Already gave, huh loser. And now see how easily you turned into a taker. No wonder over 50% of the US are "takers". Each one has his or her reason why and like you, they all feel they are justified. Some of them are; the lame and infirm and those with mental disabilities and such. Not sure you fit in any of those categories except perhaps the mental disability one. You know, the buthurt loser one.

7xyr, you keep on giving and I'll keep on receiving. I've done all the giving I had in my tax paying years.

7rlq: you are no different from anyone who takes advantage of opportunities to get free stuff or at discount rates. You justify it your way and hey justify it in other ways. That way you can all live in peace and feel better about yourselves. The truth is it's better to give than receive so you are welcome.

7vjh, I'm taking a free ride, but make no mistake with me. I more than paid my own way and that of several others over my 40 years of dedicated and hard work. I'm not afraid to admit it, I'm now feeding off the government tete for one reason only... to get even.

7xrs , It's nice to finally get a Hillary supporter on here who admits he prefers to rape his fellow tax-payers and take a free ride than pay his own way and is not afraid to admit it. We know there are plenty, after all, she won the popular parasite democrap vote. There are plenty of gubmint teat-svckers, just afraid to admit it. Hell, The protestors, that Soros hired to protest the election mostly did not even vote!!!! As much as they sponge. I appreciate your honesty in admitting that you are a parasite sponge and that you don't mind admitting that you mooch off of others like a freeloading d---beat bottom-feeder. Bravo!!!

@6gux, Come on, everyone would like to milk the government teat. Your excuse for having too much income is your own failure of not securing enough after-tax cash in banks and now having to withdraw too much from your retirement savings to qualify for a fat Obamacare subsidy. None of us buy that you're not willing to "Pretend I'm Poor" just to get over on the taxpayer. Why hell, nobody is going to know unless you advertise it. I get over on the government and have a wonderful medical plan for a premium under $80. I know it's coming from my neighbors, but then again, I don't like my neighbors so it makes things even more satisfying. I suppose Trump

may eliminate most of those loopholes shortly when they dump the ACA, but until then, I'm on a roll and you're not.

Yes, I wish I could milk the Government Teat and be an Obuma Parasite like some of you but I simply have too much income and I am not willing to "Pretend I'm Poor" just to get over on the Tax/premium payers. That's where the money comes from. Your neighbors. Because you think you are better than them. Wealth redistribution. Hopefully most of those loopholes will be eliminated shortly when they dump the Abortion that is the ACA.

I totally agree with you, 1fsg. I'm lucky to be in the position I've found myself, although I would much prefer to be drawing additional annual income to live my retirement at a level I had planned for myself. For now, I will need to keep a low income profile in order to get a high subsidy and low premiums through Obamacare. I'm in a Catch 22 position of having to choose between paying for affordable healthcare or burning through my hard earned retirement funds. I'm hoping for a quick and equitable reform of the ACA with the next Administration and I don't mind paying a bit more for healthcare insurance, so long as everyone has to pay for their own healthcare or not be penalized by the IRS to forego coverage. For the time being, I need to keep my current lifestyle and spending levels to a minimum for another 4 years until I get social security.

-1qku, sorry to tead the ACA medical premiums you looked up are sky high for your situation. I'm retired on the Chevron annuity. It's my only source of declarable annual income at $27,150. My 401k and IRA balances surpass $1.7MM, but I'm not drawing off those funds right now, nor am I getting Social Security. That will be 4 years down the road. What I'm fortunate to have is $250,000 in the bank. I already paid taxes on that. I draw on some of that to help with my living expenses over and above the annuity income. My Obamacare medical plan in Houston is just as good as Chevron's but with my low income, is heavily subsidized.

OP, feast yourself on the first poster's comments on the thread "2017 Chevron Retiree Healthcare Plans". Here's the link| Post ID: @Km3hsz9-mlu

If the plan costs are that high in Houston, you'll split your sides laughing when Chevron gives you the figures for the Bay Area in California.

@gnm - Wow. Do you just enjoy being an a**hole? The OP is clearly interested in knowing what his options will be and is not asking your advice on which you think is best. What @gjy said was completely correct, and your advice may or may not prove to be good (who knows what the relative cost of Chevron plan vs. whatever is available when his spouse loses their insurance years from now?) Checking with the CVX before making any decision like this is never going to be bad advice. Are you actually advising the OP not to check with HR, and doing that would be a bad thing? Jeez! And by the way who is @gly? I don't see any post from them, only from @gjy.

-ibx I wish I could manage my income below $40,000 as suggested, but I am not in that situation. I have 2 kids in college, a house mortgage and wife and household expenses I need to pay for. "Unfortunately" I have significant savings which are not in an IRA, generating income to pay for these expenses. Of course this means I have to pay income and capital gain taxes, and it means I cannot take advantage of Obamacare subsidizes. Because I saved for my retirement I have to pay full cost for my healthcare.

@gjy, you say "Of course, you should check with Chevron HR just to be sure", but begin your post with "The previous poster is wrong". Are you even sure if anything?

OP, there are 3 milestones that allow you to join the Chevron Medical Plan. As @gly cited, you or your spouse losing coverage is one of those milestones. My point is the cost of pre-65 Retiree Medical will be too high to pay. It's best you wait until the last milestone to present itself, which is at age 65. Anything you decide to do should be done with full disclosure. Once you get into Chevron Medical and then get out, you will never be able to get back in.

OP - The previous poster is wrong. Loss of coverage under another group plan (such as your wife's) is considered a milestone event that qualifies you to enroll in the Chevron plans again. You have 31 days from the time you lose coverage from your wife's employer. Of course, you should check with Chevron HR just to be sure.

OP, I'm afraid that's correct... if you get into the Chevron Retiree Medical Plan, then leave it, you will never be able to return to it. That was the major change made to the rules. There are 3 milestones you have for enrollment in the Retiree Medical. If you missed or opted to not enroll during any of these milestone events, your last milestone is at age 65. In my opinion, this is the most affordable time to get in. Try to hang on until then and get insurance through your wife's employer or your own new job. Maybe you can qualify for Obamacare for 2017 only. It will depend on your estimated income for that year, albeit it will have to be ideally below $40,000. Good luck.