managing your contributions
is CIP included in my ESIP deductions?
A portion of your CIP payout will be included in your usual paycheck deduction to the ESIP, unless you change your ESIP paycheck deduction in advance of your CIP payment. It can take up to two pay periods for your change to take effect. See the CIP payouts and your ESIP deductions section below for more information.
Chevron Incentive Plan (CIP) award payouts are considered part of your regular pay* in the Chevron Employee Savings Investment Plan (ESIP). This means a portion of your CIP payout will automatically be included in your usual paycheck deduction to the ESIP (up to IRS limits); you do not need to do anything. But, if you’d rather save more or less of your upcoming CIP towards retirement, you can change your ESIP paycheck deduction in advance of your CIP payout.
- If you change your ESIP paycheck deduction to a lower contribution percentage, less of your regular pay (and your CIP payout) will go into your ESIP account.
- If you change your ESIP paycheck deduction to a higher contribution percentage, more of your regular pay (and your CIP payout) will go into your ESIP account.
If you want to make a change, you must take action in advance of your CIP payout. Keep in mind that it can take up to two pay periods for your changes to take effect. If you change your deduction ahead of the CIP pay period, don't forget to change it back for future pay periods. Again, please keep in mind, the timing may work out such that it takes more than one pay period for a change to take effect. U.S. Payroll will not be able to make any payroll adjustments as a result of your ESIP contributions.
The ESIP Contribution Calculator can help you determine how to maximize your contributions throughout the year.
Remember – to receive the company match (also known as company contributions), you must contribute a minimum of 1 percent of your pay.
- If you contribute 1%, the company match is 4%.
- If you contribute 2% or more, the company match is 8%.
*Note: If you are a PSG 28 or higher, then only non-deferred CIP is considered regular pay in the ESIP.
If you have questions, talk to Fidelity by calling the HR Service Center and choosing the menu option for the ESIP.
The 2024 limits are as follows:
- You can contribute on regular pay up to $345,000. Once your regular pay for the year has reached $345,000, all contributions - employee and employer - to the ESIP automatically stop. Keep in mind regular pay includes your Chevron Incentive Plan (CIP) payment (if any).
- You can contribute up to $23,000 (or $30,500 if you are age 50 or older) on a before-tax and Roth 401(k) combined basis.* This is also called the IRS 402(g) limit.
- Your total annual employee and company contributions into the ESIP cannot be more than $69,000 ($76,500 if you are age 50 or older) or 100% of pay, whichever is less. This is also called the IRS 415(c) limit or Annual Additions.
* If you reach the combined before-tax and Roth 401(k) limit, the first 2% of your contribution will convert to basic after-tax contributions so that you continue to receive the company match. Your before-tax and Roth 401(k) supplemental contributions will stop.
If you prefer to calculate on your own and want to contribute the maximum "total" amount, make sure you account for the company match when deciding how much you should contribute. The company match is fixed at 8% of your pay if you contribute at least 2% of your pay. If you subtract 8% of your pay from $69,000 ($76,500 if you are age 50 or older) in 2024, the remaining is approximately the maximum you can contribute each year.
There are two ways you can change your ESIP contribution percentage:
- Log on to NetBenefits and select Contribution Amount.
- Call the HR Service Center and choose the menu option for the ESIP to talk to Fidelity.
It can take up to two pay periods for your changes to take effect. Keep this in mind when planning any changes to your contributions (for example, in advance of your CIP payment).
This web page provides only certain highlights about changes of 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. There are no vested rights with respect to Chevron health care plans or any company contributions towards 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.