leaving chevron with severance
how severance affects your benefits
benefits that change with severance
If you are eligible to participate in the SESP Plan, and you’re eligible for and enroll in Chevron COBRA continuation coverage, then Chevron will subsidize your medical and mental health and substance use disorder COBRA coverage for a period of up to 6 months.
COBRA continuation coverage allows eligible employees and their covered dependents to continue to participate in company-sponsored health care plans beyond the time when coverage would normally end, such as when you leave Chevron. In most situations, Chevron does not contribute to (or subsidize) the cost of this coverage and you’re required to pay the full cost, plus a 2% administration fee.
However, if you’re eligible for a qualifying severance program, Chevron may continue to contribute to the cost of medical and mental health and substance use disorder continuation coverage for a set period of time. This is called subsidized COBRA continuation coverage. With subsidized COBRA continuation coverage, you will pay the same monthly premium for your medical COBRA coverage as other similarly enrolled active Chevron employees, plus the 2% administration fee. Please note that the Wellness Credit, if applicable, ends when your employment ends.
- Please visit the COBRA continuation coverage section to learn more.
- You should also visit the main Leaving Chevron section of this website for additional information about what happens to your other active Chevron employee benefits when you leave Chevron, including enrollment instructions, milestones and deadlines, and more.
In most situations, you’re eligible to receive a pension benefit under the Chevron Retirement Plan if you are vested when your employment ends. Generally, in order to be vested in your benefit, you must have at least five years of Vesting and Eligibility Service. However, if you’re eligible for a qualifying severance program, you will be automatically vested in the Chevron Retirement Plan on the date your employment is terminated, even if you haven’t completed five years of service.
Severance only affects vesting; it doesn't change the standard Chevron Retirement Plan eligibility rules, how your benefit is calculated, or the distribution options available to you.
- Learn more about what happens to your pension when you leave Chevron, including the choices you'll need to make, on the main Leaving Chevron section of this website.
benefits that do not change
Leaving Chevron with severance does not affect your eligibility to participate in Chevron retiree health and protection coverage. In addition, severance does not affect the company contribution for which you’re eligible. However, keep in mind that leaving Chevron - whether due to severance or for any other voluntary reason - is an important retiree health benefit enrollment milestone. Be sure to start the decision-making and enrollment process prior to leaving, if possible.
Start exploring your options on the main Leaving Chevron section of this website. This site provides detailed retiree health and protection benefit information, in addition to information about what happens to your other active Chevron employee benefits when you leave Chevron, retiree enrollment milestones and instructions, and more.
Leaving Chevron with severance doesn't affect how your other employee benefit plans and programs will transition when your employment has ended.
Start exploring your options on the main Leaving Chevron section of this website. This site provides detailed information about what happens to your other active Chevron employee benefits when you leave Chevron, important milestones, enrollment instructions, and more.
If you are an LTIP participant and you terminate prior to February 10 of the next year, following the grant date, 100% of the stock options or stock appreciation rights (SARs), performance shares and standard restricted stock units will be forfeited. All high-level restricted stock units, regardless of when they were granted or the reason for termination, will be forfeited upon termination. Your age and service at termination will impact which portions of your remaining LTIP grants will vest, as well as how long you have to exercise vested stock options and/or stock appreciation rights. Terminations due to layoff and/or with severance do not result in enhanced vesting or longer exercise periods. Review the LTIP Termination Rules document or view the LTIP at Termination video on the Chevron intranet for more information.
Stock options or SARs expiration dates will be reflected in your Morgan Stanley account, typically within one week following your termination or retirement. Keep these expiration dates in mind, as you will be responsible for exercising your grants before they expire. If your grant is set to expire on a date when the stock market is closed, such as on a holiday in the United States or on a weekend, you will need to exercise before the plan-defined expiration date.
For more information:
- Long-Term Incentive Plan (LTIP)
- You can also contact the Executive Compensation Group at execplans@chevron.com.
Payments from the Deferred Compensation Plan (DCP), ESIP-Restoration Plan (ESIP-RP) and the Retirement Restoration Plan (RRP) will be based on your distribution elections.
- Your distribution elections can be viewed on your Fidelity NetBenefits account.
- If you wish to change your distribution election, you must do so at least 12 months prior to the first scheduled distribution.
- You are prohibited from accelerating payments and can begin receiving payments no sooner than five years from the previously scheduled payment date. Send an email to execplans@chevron.com for a form to change your election.
- Chevron Incentive Plan (CIP) and Long-Term Incentive Plan (LTIP) deferral elections cannot be amended after your employment ends. If you would like to change or cancel deferral elections, you must do so prior to leaving Chevron.
For more information, send an email to the Executive Compensation Group at execplans@chevron.com.
If you're leaving Chevron October through December, here are open enrollment, health benefit elections and other considerations you should know as you are planning your post-employment benefit decisions:
This communication provides only certain highlights about benefit provisions. It is not intended to be a complete explanation. If there are any discrepancies between this communication and the legal plan documents, the legal plan documents will prevail to the extent permitted by law. Oral statements about plan benefits are not binding on Chevron or the applicable plan. 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. Unless required by applicable law, there are no vested rights with respect to any Chevron health and welfare plan benefit or to any company contributions towards the cost of such health and welfare plan benefits. Some benefit plans and policies described in this document may be subject to collective bargaining and, therefore, may not apply to union-represented employees.
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