(hired before january 1, 2008)
This benefit is calculated using a percentage of your Highest Average Earnings, your years of Benefit Accrual Service and a Social Security offset.
The Chevron Retirement Plan is a defined benefit plan – you accrue a benefit simply by working for Chevron. You do not need to enroll in this benefit; you are automatically covered from your first day as an eligible employee and Chevron pays the cost. Your benefit is calculated according to a formula that uses a percentage of your Highest Average Earnings, your years of Benefit Accrual Service and a Social Security offset. Therefore, it increases as your years of service, age and salary (both base pay and Chevron Incentive Plan (CIP) pay) increase. Generally, you are vested after five years of service, which means you can take your benefit with you when you leave Chevron. When you are ready to receive your benefit, you can choose to take it as a single lump sum or in the form of an annuity.