Anyone know how the pension plan works if you leave Chevron before age 60? I'm trying to find an answer and all the pension website says is "Please contact the HR Service Center for more details about what happens to this Plan when you leave Chevron." I'm not interested in calling them to let them know that I'm considering leaving. Thanks in advance.
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If you are vested, you currently have today a qualified year 65 pension benefit value.
If you retire before age 60 and commence your pension at that same date, there is an immediate commencement discount factor that is applied to your qualified year 65 pension value which will reduce your benefit payout (annuity value or lump sum value) accordingly.
If instead, you retire before age 60 and defer the commencement of your pension for any time between retirement date and age 60, you will receive a higher qualified pension benefit based upon the period of time deferred. Once you reach age 60, you will have achieved 100% of your qualified year 65 pension benefit (annuity or lump sum), and your pension value will not grow beyond that with any further deferral of pension commencement date.
yep, doesn't matter age, and you can roll to IRA the lump sum as many do. BTW, if over 55 but younger than 59 1/2 you can tap into 401k early without penalty is you sever with company and CHV 401k is only one you have; google it....
If one retires or is laid off before 60, the pension calculation is reduced by a certain factor. Your pension is not subject to any reduction at age 60, nor is it increased after 60. The ‘early retirement’ reduction factor is the last modifier in the four part formula that determines your pension amount. It’s clearly explained with examples in the Chevron Retirement Plan document. Find it on the HR BenefitsConnect website. Choose the SPD document that pertains to your situation— hired before or after 2008. The formula for each plan has some differences.
There is no issue whatsoever retiring as early as you like. You will get your pension lump sum as per the calculator. Life is short, retire early!
I totally agree @ 5ffb, but those who were laid off before 60 and already older than 55 shouldn’t be blamed for retirement and having difficulty finding employment. Some with the right college degree and experience may find opportunities for employment, but others without will have a very hard time. They’ll have to make fue with their situation. Hopefully most with long term service with Chevron at least did well in their 401k and had a low or no debts when they were let go. I wouldn’t casually call anyone “deadwood”.
If you retire before 60 you become deadwood and no use to anyone
It’s all clearly stated in the Chevron Retirement Plan. Download the SPD from the BenefitsConnect webpage. There are two SPD’s. One for employees hire before 2008 and another for employees hired after 2008. Choose the correct document. It’s downloadable as a PDF file.
I retired at 59 1/2 with over 13 years. The magic number to retire is 59 1/2 before you take your pension, before that time period you will be taxed an extra 10% by the government. As long as you are vested with Chevron you can retire. You can go into the HR website, click on Retirement Benefits and run your numbers for retirement it is spot on with the amount you will get for your monthly pension. Also, if you retire (retire only) after April the year of your retirement you will still get a prorated bonus.
- hlr’s reply is correct. Even if hired in on the 2008 thing.
Just go to HR and use their calculator to model your numbers...no secrets. If you are vested (5 years) you have a specific pension number now, and if you wait to age 60 to take it (lump) or start it (annuity) that’s what you get if terminated today. If you want to take it today (before age 60), then the amount is prorated (the younger you are, the less the full benefit you get). If you work longer, your full benefit will gradually increase. There are no obvious cliffs once vested... work longer and wait longer, you get more. That said, there is no reason to wait past age 60 to take your benefit if you no longer work for Chevron.
It’s my understanding that as long as you are vested you keep the pension benefit and it is fixed at your current amount. You can “retire” or quit at 50 and choose not to activate your pension until later.
OP Here. Forgot to mention I was hired after 1/1/2008, so it's the newer version of the pension plan.