transition to fidelity
Effective January 1, 2018, Fidelity became the new recordkeeper for the ESIP and executive plans, replacing Vanguard. The information in this section is available if you want to refer back to the transition process.
tools and resources
Fidelity conducted online webinars before and after the transition to talk about what it means for you and to highlight some of the features of their website, NetBenefits. You can view a recorded version of the webinars.
financial wellness tools
Fidelity offers a number of financial resources – from planning for milestones to managing day-to-day expenses. Get started with your personal finance picture. Then, select the option that best describes your current financial situation for more education, tips and tools.
Chevron regularly reviews our benefit plans and vendors to ensure we are getting the most value from our partners. After completing an extensive review of the leading companies who administer 401(k) plans, Fidelity was chosen because they offer the best value and enhanced planning tools, technology and educational resources for participants. While cost was considered as part of the overall review process, it was not the driving factor in the selection of Fidelity.
The investment options are not changing, except for some of the securities offered through the brokerage option. If you do not participate in the brokerage option, you do not need to choose new funds as a result of this transition. The ESIP fund options with Vanguard will transfer to Fidelity – there will be no changes to the funds or their associated cost basis. For example, if you are in the Vanguard PRIMECAP fund today, you will continue to be invested in the same Vanguard PRIMECAP fund with Fidelity. This is because Fidelity can host Vanguard funds.
Participants in the Vanguard Brokerage Option (VBO) will receive more information about Fidelity’s brokerage option, called BrokerageLink, in November. The vast majority (about 92 percent) of VBO securities will transfer to BrokerageLink at Fidelity. If you hold any securities that will not transfer, you will be notified in November of any special action you’ll need to take.
All ESIP and executive plan accounts will transfer to Fidelity as the new recordkeeper and administrator. If you have personal investment accounts at Vanguard, such as IRAs or former employer plans, they will not transfer to Fidelity as part of this transition. Refer to the ESIP summary plan description for withdrawal options.
You will not be able to register online at Fidelity until after the transition is complete in January. Fidelity’s website will look different than Vanguard’s, but has the same functionality, plus more educational tools and resources.
A shell account for your RRP was set up at Fidelity so you can see your distribution election. The final value of the benefit is not determinable until retirement. Therefore, your RRP account value will be zero until you retire and your account is updated with the actual retirement restoration value.
Vanguard will administrator the ESIP and executive plans through the end of the year, and can assist with questions related to your current account(s). Vanguard representatives are not able to answer questions or provide information about the transition to Fidelity.
Fidelity representatives are available to provide information and answer questions about the transition. Fidelity representatives are not able to answer questions or assist with transactions in your current account with Vanguard.
You can reach Vanguard and Fidelity by calling the HR Service Center at 1-888-825-5247. Representatives are available from 5:30 a.m. to 6 p.m. Pacific time (7:30 a.m. to 8 p.m. Central time), Monday through Friday, except on stock market holidays.
This is the period of time when the plan will be transferred from Vanguard to Fidelity. No transactions can be processed during the blackout period, including changing your investments or contribution rates, initiating a loan, or requesting a withdrawal or distribution. The blackout period will start on December 18, 2017, for brokerage accounts and December 26, 2017, for ESIP (non-brokerage) and executive plan accounts, and is expected to end the week of January 7, 2018.
Yes, your contributions will continue to be withheld from your paycheck and deposited to your account, along with any company matching contributions, when the blackout period ends.
The above information provides general information related to the upcoming blackout period. A formal blackout notice, in compliance with applicable law, will be provided in mid-November. This formal blackout notice will provide you with additional details and information related to the impact of the blackout on your plan benefits.
Any outstanding loan balances will transfer to Fidelity and you will continue to repay them according to your existing schedule. If you are an active employee, your loan payments will continue to be made through payroll deductions. If you are not an active employee, bank information on file at Vanguard for ACH loan payments will not transfer to Fidelity. You will need to re-establish your bank information with Fidelity.
The following changes will apply to new loan requests starting January 1, 2018:
- You will be able to have a maximum of two loans at any time. If you currently have three, you will not be required to pay off any of them early.
- There will be a 30-day waiting period after paying off one loan and applying for a new one.
- The interest rate will be calculated using Reuter’s prime rate.
Payments that are scheduled to be paid in December will be paid during the last week of November by Vanguard. Payments that are scheduled to be paid in January will be paid after the blackout ends by Fidelity. If you are receiving payments, you do not need to do anything to ensure they continue. For executive plans, payments will continue to be made by Chevron according to the normal schedule.
Fidelity has a managed account service that offers professional investment management of your plan account, called Fidelity Portfolio Advisory Service at Work (PAS-W). If you are currently enrolled in VMAP, you will be enrolled in PAS-W when your account is transferred to Fidelity, unless you opt out during the enrollment period in early 2018. More information about PAS-W will be sent to VMAP participants in early January, after the transition is complete.
Fidelity has a self-directed brokerage option, called BrokerageLink. Your existing VBO assets will be moved to a BrokerageLink account. However, some securities may not be available through BrokerageLink. If you hold any of these securities, you will be notified in November of any special action you’ll need to take. All current VBO participants will receive more information about BrokerageLink in November. Be sure to review it carefully as you’ll need to complete and return a Participant Acknowledgement Form before you can actively use your Fidelity BrokerageLink account.
Your personal investment accounts will not be affected by this transition – only your ESIP account will move to Fidelity. Any personal investment accounts you have at Vanguard will remain at Vanguard, and you will continue to manage them just as you do now.
If you already have personal investment accounts at Fidelity, they will be maintained separately from your ESIP account. However, once the transition is complete, you will have access to both your personal and ESIP accounts when you log on or call Fidelity. If you manage your account online, you will see all of your Fidelity accounts (ESIP, previous employer, personal) aggregated on the home page when you log in.
The following chart shows where you will access your accounts when the transition is complete:
|After the transition, you will access|
|If you have an ESIP account at Vanguard and…||Your ESIP at…||Your personal investment accounts at…|
No other personal investment accounts at Vanguard or Fidelity
|One or more personal investment accounts at Vanguard||Fidelity||Vanguard|
|One or more personal investment accounts at Fidelity||Fidelity|
No, Fidelity is not able to use your Power of Attorney designation that was made at Vanguard. You will need to complete a new form and return it to Fidelity. If you currently have a Power of Attorney designation, you will receive additional information and a new form in the mail shortly after the transition is complete.