Thread regarding Chevron Corp. layoffs

Companies with pension plans prefer their retirees to jump at the lump sum payout. It gets the financial monkey off their back. As for me, on the other hand, I'm a tick up the company's a$$ with the annuity they must continue to pay me for another 40+ years. That's right, my family tree and that of my spouse both have long lives. No cancer, diabetes, high blood pressure or heart attacks. We live into our mid to late 90's. Pay up, Chevron.

Another thing to consider... The mortality tables that the PPA uses are old and outdated. The new tables (that may take effect starting in 2018) have us living longer and thus our annuities (and lump sums derived from them) will be worth more. The expected increase in liability for companies that provide pensions is anywhere from 5-10%. I could see Chevron offering another 'early retirement' package this year and hoping those folks opt for an immediate lump sum.

I am thinking that we will need feed stock to generate electricity and cheap natural gas will be competitive in that space. Chevron is in the business of finding and producing natural gas, so why do you guys think it will totally disappear? It could become a smaller company but that can happen gradually as we continue on the path of adopting electric cars more and more. What do you guys think?

Per PBGC.gov, the 2016 maximum monthly guarantee for a 65-year-old retiree is $5,011.36 which amounts to about $60,136 per year. But as you stated, your maximum guaranteed amount is based, in part, on your age on the plan termination date (or the date the sponsor entered bankruptcy, if applicable) or, if you were not in pay status on that date, the date you begin receiving benefits from PBGC. Your maximum guaranteed amount also will reflect the age of your designated beneficiary if your benefit provides payments to a survivor.

The problem with PBGC, if politicians don't eliminate it, is that the monthly limit is a bit low. About $2400 if you are age 55. Not much of a safety net for those of us expecting more than that.

Very interesting information, 1vvv. Thanks for posting the website. The main culprit for the lower funding ratios are the less than desirable market investment returns. I for one chose the annuity instead of the lump sum for this reason. I was fairly certain the returns I needed to make my lump sum last were simply not going to be there unless I invested the money in riskier funds. I already have my 401k money (a large amount) in the market, so I opted for the guaranteed monthly income the annuity provides (plus social security). I understand the article and the website data points to somewhat of an underfunding situation for Chevron, but the PPA rules are rather strict. The Chevron pension fund should be fine, but if it runs into trouble, I know I can count on the PBGA federal agency to provide the safety net. Everything in life is a risk, but I think the choice I made was a well calculated one.

The problem with Hydrogen as a transportation fuel is it takes 5-10 times the tank size for the same energy storage and it must be a very heavy walled tank pressure tank at that....so guess at the cost per mile and the display on collision. As another poster said, do not give up on your day job just yet. Maybe after fusion electricity becomes so cheap that hydrogen is just about free or a better battery is discovered I might worry... just now, not so much.

http://m.pionline.com/article/20160418/PRINT/304189988/largest-corporate-db-plans-see-no-gains-in-funding

Chevron is not good maybe just bottom quartile of all large companies, average underfunding is 15% in large companies these days it's a general big corporate problem.. seems like better than Exxon though

Hydrogen powered cars would be a great if not if built by Samsung. Don't trust their exploding batteries around hydrogen gas. Remember the Hindenburg.

That's a neat idea for your great-great grandson. tjy. Today, 95% of hydrogen is produced from natural gas.

Don't quit your day job quite yet.

Hydrogen powered cars. Electricity is used for electrolysis to break water to oxygen and hydrogen. A car operating on hydrogen only has water vapor coming out of exhaust pipe. No carbon dioxide, no carbon monoxide, no pollution. No changes in the car engines are required and no real major changes in the infrastructure for fueling except for a switch from liquid to compressed gas.