before-tax vs. after-tax elections
pros and cons
In general, most U.S.-payroll employees benefit by making health plan contributions on a before-tax basis. But, before-tax contributions limit your ability to make changes to your health plan enrollment during the year. When you make after-tax contributions, you miss the opportunity for any possible tax savings, but you have more flexibility during the year to drop coverage for yourself or an eligible dependent. Also, since before-tax contributions are exempt from Social Security tax, your Social Security benefits could be reduced slightly if you earn less than the Social Security wage base. However, the advantages of current tax savings may outweigh the possible reduction in your Social Security benefits at retirement.
how to make a change
To change the tax basis of your contributions for next year, you must call the HR Service Center during open enrollment. This change cannot be made online. Any changes to your tax basis will remain in effect until you request another change during the next open enrollment period.
Please note: This page applies to U.S.-payroll employees. This page provides only certain highlights of benefits or program provisions. It is not intended to be a complete explanation. If there are any discrepancies between this communication and legal plan documents, the legal documents will prevail to the extent permitted by law. This is not a plan text or a summary plan description. There are no vested rights with respect to Chevron health care plans or any company contributions toward the cost of such health care plans. Rather, Chevron Corporation reserves all rights, for any reason and at any time, to amend, change or terminate these plans or to change or eliminate the company contribution toward the cost of such plans. Such amendments, changes, terminations or eliminations may be applicable without regard to whether someone previously terminated employment with Chevron or previously was subject to a grandfathering provision. Some benefit plans and policies described in this document may be subject to collective bargaining and, therefore, may not apply to union represented employees.