Someone explain to me how the pension plan works please? Got hired in 2018. No manager has ever broken it down clearly and my understanding is it also different based on the year you are hired. I know there is a projection chart somewhere but I’m curious to hear an explanation not from the website. Thank you!
18 replies (most recent on top)
@kw, Correct. Wise decision. whether or not you will fare better taking the lump sum is different for every retiree. The case that you described, where the CVX pension is small compared to your other active investments is a good example. The future guaranteed annuity that you get is just a back up plan, funny money. And if you take the 100% joint/survivor then your spouse is better off and there's less risk of it getting spent foolishly.
Sure, all the (non and wannabe investor ) knuckleheads will chime in and act like they know something, and accuse you of being scared or everything else. Meanwhile, you are over there sitting on more invested assets than they will ever see.
There's nothing new under the sun.
Pull up the policy and then copilot and ask all the questions you have and it will answer.
@em unfortunately your AI response is wrong. The post-2008 SPD on our HR2 site (public site) shows the formula for the post-2008 pension as: Highest 5-year average earnings × applicable age-based percentage × years of Benefit Accrual Service.
It’s not a cash balance account with company funded credits and interest as your response stated.
I am not taking the lump sum. Invested in tech stocks last 25 years and its my dry powder if there is a collapse. Pro tip; if you Chevron pension is significant compared to your other holdings you are doing it wrong
@j4 Not necessarily. It’s a risk reward deal.
It's not rocket science bro
You ALWAYS take the lump sum
This post is baloney. I can't believe you work at CVX since 2018 and have no clue how to look at your benefits on line. Delete this nonsense.
lets say someone has 15 years post 2008. would they take the annuity or lump sum if they were exiting without something lined up?
As a 2018 hire at Chevron, your pension falls under the cash-balance account balance structure of the Chevron Retirement Plan (CRP) rather than the traditional highest-average-earnings formula given to pre-2008 hires.
Plan BasicsType:
Defined benefit (pension) plan.
Enrollment: Automatic on your first day of eligible employment (no sign-up required).
Funding: 100% paid by Chevron; you do not contribute any money from your paycheck.
How the Benefit Works
Cash Balance Design: Your account grows with company-funded credits and interest over time as you gain years of service and your pay increases.
Vesting: You must complete five years of service to vest. Once vested, you officially earn the right to keep and take your accrued benefit if you leave the company.
Post-2008 Rules: For hires after January 1, 2008, lump-sum calculations and account values operate differently and are less volatile against shifting IRS interest rates compared to traditional legacy formulas.
Go to the HR site and download the pension document (PDF file). Read the post 2008 plan. If you visit BenefitConnect, you can go to the Pension menu to see your lump sum value.
@OP managers or babysitters ?
Inside info? It’s all public information on hr2… lol
@OP
you can login to the Fidelity webisite and the information is available there. you can use the tools to project your pension.
@af
isn't that called "social engineering" in our security training?
@OP my manager spends 1 hour every week explaining to me how it works. You need a new manager LOL
@a4, I strongly disagree, this is the perfect place for trolls who don't work for Chevron to find out inside info about all things CVX that our naïve always online workforce is ready and willing to leak.
@OP Call HR or look at hr. chevron.com i think. It’s all layed out for you. This ain’t the place.