Aetna Choice POS II (Open Access) Network ACCOUNT (PSA) PLAN

Transcription

1 Summary Plan Description MEDICAL PLAN PERSONAL AETNA SAVINGS BASIC Aetna Choice POS II (Open Access) Network ACCOUNT (PSA) PLAN

2 PERSONAL SAVINGS ACCOUNT CONTENTS HIGHLIGHTS... 1 EASY PSA ACCESS THROUGH OXYLINK... 3 Your OxyLink Password... 3 NOTICE REGARDING TRANSACTION OVERLOAD, SYSTEMS FAILURES, AND FUND VALUATION DELAYS... 4 PSA TRANSACTION SUMMARY... 4 DEFINITIONS... 6 ELIGIBILITY... 7 Who is Eligible... 7 Who is Not Eligible... 7 PARTICIPATION... 8 YOUR CONTRIBUTIONS TO THE PSA... 8 Annual Bonus... 9 Catch-Up Contributions... 9 The Before-Tax Savings Advantage Effect of Before-Tax Employee Contributions on Social Security and Oxy Benefits Changing Your Future Contribution Percentage Suspending and Resuming Your Contributions Involuntary Contribution Suspension Rollover Contributions Contribution Eligibility for Qualified Military Service INVESTING IN THE PSA Available Investment Funds Past Fund Performance Information Making Your Personal Investment Choices Changing the Investment of Your Future Employee Contributions Transferring Your Current PSA Balances Pass-Through Dividend Payment Option Insider Trading Prohibition OXY'S MATCHING COMPANY CONTRIBUTIONS BENEFIT LIMITATIONS Regular Before-Tax Contributions Limit Annual Compensation Limit Maximum Contribution Limit /2013 ii PSA

3 FUND VALUATIONS PARTICIPANT STATEMENTS VOTING YOUR SHARES VESTING Vesting Schedule YOUR PSA BENEFICIARY DESIGNATIONS RECEIVING PSA BENEFITS AS AN ACTIVE EMPLOYEE In-Service Withdrawals PSA Loans RECEIVING PSA BENEFITS WHEN YOU LEAVE OXY Participant Distribution Payment Options How to Request a Distribution DEATH BENEFITS Beneficiary Distribution Payment Options REQUIRED MINIMUM PAYMENTS During the Participant s Lifetime After the Participant s Death OTHER IMPORTANT PROVISIONS OF THE PSA Employment Changes Assignment of Benefits Qualified Domestic Relations Orders Documents Incorporated by Reference Plan Continuation Pension Benefit Guaranty Corporation Plan Documents Mergers, Consolidations, and Transfers Overpayment Data and Records If the Plan Becomes Top Heavy No Implied Promises CLAIMS AND APPEALS PROCEDURES General Information About Claims Time Period for Responding to Initial Claim Information Provided if Initial Claim is Denied Appeal Procedure if Initial Claim is Denied Information Provided if Appeal is Denied Legal Proceedings YOUR RIGHTS AS A PLAN PARTICIPANT Receive Information About Your Plan and Benefits Prudent Action by Plan Fiduciaries /2013 iii PSA

4 Enforce Your Rights Help With Your Questions ADDITIONAL INFORMATION LIST OF ATTACHED APPENDICES APPENDIX A PERSONAL SAVINGS ACCOUNT (PSA) MAXIMUM CONTRIBUTION PERCENTAGES, MATCHING COMPANY CONTRIBUTIONS AND GOVERNMENT LIMITS... A-1 APPENDIX B PERSONAL SAVINGS ACCOUNT (PSA) PARTICIPATING AFFILIATES... B-1 APPENDIX C PERSONAL SAVINGS ACCOUNT (PSA) FUND DESCRIPTIONS... C-1 Stable Value Fund... C-1 Bond Fund... C-1 Inflation-Protected Securities Fund... C-2 High Yield Bond Fund... C-2 Global Convertible Bond Fund... C-3 Diversified Balanced Fund... C-3 S&P 500 Index Fund... C-4 Large Cap Value Fund... C-4 Large Cap Growth Fund I... C-4 Large Cap Growth Fund II... C-4 Mid Cap Index Fund... C-5 Small Cap Value Fund... C-5 International Equity Fund... C-5 REIT Index Fund... C-6 Oxy Stock Fund... C-6 APPENDIX D PERSONAL SAVINGS ACCOUNT (PSA) NOTICE OF FEDERAL AND STATE TAX INFORMATION FOR PLAN PAYMENTS... D-1 APPENDIX E PERSONAL SAVINGS ACCOUNT (PSA) THUMS LONG BEACH COMPANY SAVINGS AND INVESTMENT PLAN MERGER... E-1 The Personal Savings Account Summary Plan Description is effective as of August 1, Please refer to subsequent issues of Benefits News and The Source for any material changes to the Plan made after this date of this document. 08/2013 iv PSA

5 PERSONAL SAVINGS ACCOUNT HIGHLIGHTS The Occidental Petroleum Corporation Savings Plan, also known as the Personal Savings Account or PSA, is a 401(k) that includes an employee stock ownership plan (ESOP). The PSA offers you an excellent opportunity to save before or after taxes through payroll deductions. By participating, you can invest easily and conveniently among different investment funds, earn Matching Company Contributions, and supplement your retirement income. You automatically become a Plan participant (whether or not you contribute to the Plan) on the first day of the month in which you are hired as an eligible employee or become an eligible employee. As a participant, you may contribute a percentage of your Base Pay and up to the first $100,000 of your Annual Bonus to your PSA on a before-tax basis, an after-tax basis or a combination of both. In addition, if you will be at least age 50 before the end of the year, you may make before-tax catch-up contributions up to the government-specified limit for the year. The total amount that you may contribute in any year is shown in APPENDIX A. The Plan offers several different funds in which you may invest your contributions, each offering a different level of risk and potential return. A description of these funds is provided in APPENDIX C. For every dollar you contribute to your PSA up to the first six percent of your Earnings, Oxy will make a matching contribution to your PSA at the rate shown in the Matching Company Contribution Rate Table in APPENDIX A. Oxy's Matching Company Contributions always are made to the Oxy Stock Fund, and active participants with at least three years of service and terminated vested participants may elect to transfer their Matching Company Contributions to other investment funds. The term vesting refers to your nonforfeitable right to receive benefits from your PSA. Generally, your vesting service begins on the first of the month in which you are hired by Occidental Petroleum Corporation (OPC) or any Affiliate and continues through the last day of the month in which you separate from service from OPC and all Affiliates. You always are fully vested in your contributions to the PSA. You will become fully vested in Oxy's Matching Company Contributions after you have three years of service. Regardless of your years of vesting service, you become fully vested in Oxy's Matching Company Contributions: When you attain age 65; When you receive benefits under Oxy s Long-Term Disability (LTD) Plan for more than 24 consecutive months; If you die or the Plan is terminated while you are an employee of OPC or any Affiliate; or If you receive benefits under the Occidental Petroleum Corporation Notice and Severance Pay Plan or an equivalent plan or program for Represented Employees. Also, you are always fully vested in dividends paid on the portion of your Matching Company Contributions account invested in the Oxy Stock Fund regardless of your vesting service. You may request a withdrawal or loan from the Plan while you are employed. In addition, you (or your beneficiary, in the event of your death) may request a distribution of your vested balance after you have left OPC and all Affiliates for any reason. 08/ PSA

6 This SPD summarizes your PSA so that you can understand how the Plan works. Although this booklet covers many of the principal features of PSA, it is only a summary. The PSA s complete provisions are contained in the Plan documents that legally govern the Plan s operation. The Plan documents include the official Plan text, the trust agreement, and other documents and reports that are maintained by the Plan and/or filed with a federal government agency. If you wish, you may request a copy of any of the Plan documents by writing to the Plan Administrator at the address shown in the section entitled Additional Information. Copies of requested documents will be furnished within 30 days at a reasonable charge. All benefits described in this SPD are subject to the terms of the Plan documents and if there is ever a conflict or difference between this booklet and the Plan document, the official Plan document will govern. This SPD reflects the Plan document provisions in effect on August 1, These provisions may not apply to you if your employment ended before this date This SPD and all Appendices constitute part of a prospectus covering securities that have been registered under the Securities Act of / PSA

7 EASY PSA ACCESS THROUGH OXYLINK OxyLink Online Website oxylink.oxy.com OxyLink Employee Service Center (OxyLink) OxyLink Representatives or (from outside the U.S. or Canada) Monday through Friday (except holidays) 8:30 A.M. to 5 P.M. Central Time To ensure the confidentiality of your benefits information and to avoid transaction processing delays, you must enter your Employee ID and your OxyLink password to request transactions through oxylink.oxy.com. Your OxyLink Password You can have a new OxyLink password automatically ed to you if you forget your password, provided you enable this feature in advance by taking the following actions: Go to OxyLink at oxylink.oxy.com and enter your 7-digit Employee ID and password Select My System Profile from the OxyLink Online Menu Select Change or set up forgotten password help under the Password heading. Select a question from the drop-down menu and then type your response. This will serve as your challenge question and answer if you forget your password in the future. After you complete this step, click OK Under the heading, enter your primary address (active employees: please retain or enter your Oxy business address). Click OK, then select Save If you forget your password in the future, go online to the OxyLink Online website and select Forgotten Password? displayed immediately below the OxyLink Login section. Select Continue, enter your Employee ID and select Continue again to answer your challenge question. If you provide the correct response to your preselected question, a new password will be sent immediately to the primary address shown. For security reasons, you will not be able to change your address while using this option. After you receive your new password by , you may then log on to the OxyLink Online website and change it to a new password of your choice. Your new password must contain a combination of at least eight case-sensitive alpha, numeric or special character digits. Passwords will expire every 90 days. For security reasons, passwords are locked after five consecutive attempts to log on with an invalid Employee ID and/or password. Once locked, using the Forgotten Password? link will re-establish your access. If you have lost or forgotten your password and are unable to use Forgotten Password?, click on Contact OxyLink for New Password in the Contact Us menu, or call OxyLink at during normal business hours to request a new password. If you have any questions, contact OxyLink by at [email protected] or by phone (provide your full name and Employee ID number). 08/ PSA

8 NOTICE REGARDING TRANSACTION OVERLOAD, SYSTEMS FAILURES, AND FUND VALUATION DELAYS Neither OPC nor any Affiliate is responsible for the unavailability of information or the delay or non-completion of requested transactions due to high call volume or interruptions to computer connections or phone services. This disclaimer also covers the failure by a fund investment manager to provide the PSA trustee with updated fund values on a timely basis. If, on any Trading Day, one or more of the fund investment managers fails to provide the PSA trustee with fund values by that Trading Day s daily valuation processing deadline, those funds will be processed and valued using the last available Trading Day s closing values and all other funds will be valued using the current Trading Day s closing fund values. PSA TRANSACTION SUMMARY The following chart summarizes the various PSA transactions you may be eligible to request through OxyLink. Transaction How to Do/Frequency Special Notes When Processed Initial Enrollment Enroll online at oxylink.oxy.com See APPENDIX A to determine the amount that you may contribute for the current year (and your matching rate) Processed daily; effective first available pay period Catch-Up Contributions Online anytime You must be at least age 50 by the end of the year; see APPENDIX A for catch-up contribution limit in effect for the current year Processed daily; effective first available pay period Future Contribution Rate/Type Change Online anytime Maximum contribution percentage subject to the PSA Contribution Table; see APPENDIX A First available pay period Contribution Reinstatement: Following Waiver or Voluntary Suspension Online anytime Maximum contribution percentage subject to the PSA Contribution Table; see APPENDIX A Processed daily; effective first available pay period Following Involuntary Withdrawal Suspension Online anytime following minimum six-month suspension period Maximum contribution percentage subject to the PSA Contribution Table; see APPENDIX A Processed daily; effective first available pay period Voluntary Contribution Suspension Online anytime Oxy s matching contributions also cease First available pay period Future Contribution Investment Change Online anytime Investment must be in one percent increments Processed daily; effective first available pay period 08/ PSA

9 Transaction How to Do/Frequency Special Notes When Processed Fund Transfer Oxy Stock Dividend Pass-Through Online anytime, however if more than one fund transfer during a day is made, only the final fund transfer will be processed 24 free fund transfers per calendar year (including transfers from the Oxy Stock Fund) $10 fee will be deducted from your account balance for each fund transfer above 24 Online anytime Processed and valued at same Trading Day s NYSE closing trading price if requested by 1 P.M. Central Time; if requested after 1 P.M. Central Time or on a non-trading Day, processed and valued at end of next Trading Day You may elect to have dividends on Oxy Stock held in your Matching Company Contributions account paid out to you in cash. If you do not make an election, dividends will be reinvested with your Oxy Stock Fund investment Processed daily for each Trading Day Processed daily if election made by 1 P.M. Central Time. Your election must be processed before the ex-dividend date for the dividend to be paid out to you in cash. The exdividend date is the second business day before the date of record In-Service Withdrawal Request 1 (active employees only) Online anytime to request form; only one in any sixmonth period Loan may not be requested in same processing period. Signed withdrawal request must be received by form s expiration date Processed weekly. Valued at end of Trading Day preceding check issuance date Loan Application (active employees only) Loan Prepayment Active Employees Online anytime to request form, except after the Wednesday before the last Friday of the month; only one loan may be outstanding. A $50 loan initiation fee will be deducted from account balance Online anytime to request form In-service withdrawal may not be requested in same processing period. Signed loan form must be received at OxyLink by the last Friday of the month in which the loan application form is printed Prepayment must be received by the prepayment due date on form Processed weekly. Valued at end of Trading Day preceding check issuance date As soon as administratively possible Terminated Employees Call OxyLink Must be received before distribution is processed As soon as administratively possible Spousal Beneficiaries Call OxyLink Must be received before distribution is processed As soon as administratively possible 1 In-service withdrawal requirements vary for money merged into the PSA from the THUMS SIP as described in APPENDIX E. 08/ PSA

10 Transaction How to Do/Frequency Special Notes When Processed Termination Distribution Request Participant Distributions Online anytime following termination date; one partial request allowed in any six-month period Signed distribution form must be received by form s expiration date Processed weekly. Valued at end of Trading Day preceding check issuance date. Spousal/Nonspousal Distributions Rollovers (Incoming) Call OxyLink Online anytime to request form Signed distribution form must be received by form s expiration date Signed rollover form with proceeds check must be received before request will be processed Processed weekly. Valued at end of Trading Day preceding check issuance date. Processed daily Beneficiary Designation Change Online anytime to request form If married, nonspousal designation requires notarized spousal consent Online Statements Online anytime N/A N/A Following receipt and approval by OxyLink If you need assistance, you can contact an OxyLink representative by calling (or from outside the U.S. and Canada), Monday through Friday (except holidays) 8:30 A.M. to 5 P.M. Central Time. DEFINITIONS Before describing the provisions of the PSA, there are a few words and phrases that have special meaning when used in this Summary Plan Description (SPD). Affiliate Any business entity that is more than 80 percent owned, directly or indirectly by OPC, or is in an affiliated service group with OPC, as defined under the Code. After-Tax Employee Contributions Employee contributions that are deducted from your pay after federal, state and local withholding taxes are deducted. Annual Bonus The bonus paid to you during the year under a regular annual incentive compensation plan, such as the Company's Variable Compensation Program or Incentive Compensation Program (but excluding without limitation a special individual or group bonus, a project bonus, and any other special bonus). Contributions related to your Annual Bonus to the PSA are counted in the year in which the Annual Bonus is paid even if the bonus relates to service provided in an earlier year. Base Pay For purposes of determining your contributions and Oxy s matching contribution, your Base Pay shall be determined in accordance with Oxy s standard payroll practices based on how your compensation is determined. Generally, if you are compensated by salary, your regular base pay paid to you during the year is your Base Pay. Also, generally, if you are compensated based on an hourly rate, your base hourly rate multiplied by the number of regularly scheduled hours worked is your Base Pay. Base Pay includes salary or wages received during vacations, paid leaves of absence and periodic notice pay, but does not include overtime, single sum notice pay payments or any severance pay payments. Base Pay also does not include pay in excess of the federal government s annual compensation limit (see APPENDIX A), bonuses, awards and other nonrecurring forms of compensation. 08/ PSA

11 Before-Tax Employee Contributions Employee contributions that are deducted from your pay before federal withholding taxes and, in most cases, state and local withholding taxes are deducted. Before-Tax Employee Contributions are subject to applicable Social Security taxes. Your annual Before-Tax Employee Contributions may not exceed the annual before-tax contribution limit set by the federal government each year (see APPENDIX A). The annual before-tax employee contribution limit is an individual limit and applies to the combined amount of before-tax employee contributions you make to all qualified employer-sponsored plans during a calendar year. Code The Internal Revenue Code of 1986, as amended. Earnings The sum of your Base Pay and the first $100,000 of your Annual Bonus paid in the current year. ERISA The Employee Retirement Income Security Act of 1974, as amended. ESOP Dividend Account The recordkeeping account which evidences the value of the eligible dividends attributable to the Matching Company Contributions including related investment gains and losses. Matching Company Contributions The amount Oxy contributes to your PSA that matches your before-tax and/or after-tax contributions. See APPENDIX A for the matching contribution rate that applies to you. OPC Occidental Petroleum Corporation, a Delaware corporation. Oxy Occidental Petroleum Corporation and all participating Affiliates. Oxy Stock The Common Stock, $0.20 par value, of Occidental Petroleum Corporation. Plan Occidental Petroleum Corporation Savings Plan, also known as the Personal Savings Account (PSA). PRA Personal Retirement Account, formally known as the Occidental Petroleum Corporation Retirement Plan. PSA Personal Savings Account, formally known as the Occidental Petroleum Corporation Savings Plan. Rollover Contributions Taxable contributions rolled into your PSA from another employer's qualified plan. THUMS SIP The THUMS Long Beach Company Savings and Investment Plan. The THUMS SIP was merged into the PSA effective as of October 31, 2011, as further described in APPENDIX E. Trading Day Any business day that the New York Stock Exchange is open for trading. ELIGIBILITY Who is Eligible Generally, you are eligible to participate in the PSA if you are an Oxy employee, as described here. An employee is any person employed by OPC or any Affiliate, whether or not it is an Affiliate participating in the PSA. You are an Oxy employee if you are employed by OPC or any Affiliate designated by the OPC Board of Directors or its delegate as a participating employer under the Plan. The Affiliates who are participating employers under the Plan are listed in APPENDIX B. Together, OPC and participating Affiliates under the Plan are referred to as Oxy. Who is Not Eligible You are not eligible to participate in the PSA if: Your employment with Oxy is covered by a collective bargaining agreement, unless such agreement expressly provides for your participation in the PSA; represented employees whose collective bargaining 08/ PSA

12 agreement provides for their participation in the PSA are shown in the Matching Company Contribution Rate Table in APPENDIX A; You are employed by an Affiliate that is not a participating employer under the PSA (i.e., the Affiliate does not come within the defined term Oxy described above); or You are a nonresident alien employee who receives no U.S.-source earned income from Oxy, unless the PSA has been expressly made applicable to you (in which case, this has previously been communicated to you). No individual is eligible to participate in the PSA if such individual is not classified as a common-law employee in Oxy s employment records, without regard to whether the individual is subsequently determined to have been a common-law employee of Oxy. The exclusion of the individual from eligibility to participate in the PSA shall apply even if a determination is subsequently made by the Internal Revenue Service, another governmental agency, a court or other tribunal, after the individual is engaged to perform such services, that the individual is an employee for purposes of pertinent provisions of the Code, or for any other purpose. The determination that the individual is an employee shall apply prospectively only. PARTICIPATION You automatically become a participant on the first day of the month in which you are hired by Oxy as an eligible employee or on the first day of the month in which you become an eligible employee. PSA enrollment materials and instructions will be mailed to you by OxyLink within a few days after you become eligible to contribute. If you decide to make contributions, you may make your contribution and investment elections at OxyLink Online. Call OxyLink if you need assistance. You will be asked to: Authorize Oxy to deduct your elected contribution percentage from your Earnings on a before-tax and/or after-tax basis, and Make your employee contribution fund investment choices (in one-percent increments), and Name your beneficiary to receive your vested benefits in the event you die while you are a participant. A written confirmation of your enrollment elections will be mailed to you. PSA contributions will start being deducted from your pay in the first available payroll period following your enrollment. Until you enroll, you are waiving your right to contribute and receive Matching Company Contributions to the PSA. You may cancel your waiver at a later date and elect to begin making contributions to the PSA by enrolling online. The PSA beneficiary designation form will be sent with your enrollment materials. The PSA beneficiary designation form is also available to you online. The completed, signed, original form (with notarized spousal consent, if applicable) should be mailed to OxyLink at the address shown on the form. See the section entitled YOUR PSA BENEFICIARY DESIGNATIONS for more information concerning beneficiary designations under the PSA. YOUR CONTRIBUTIONS TO THE PSA You may contribute to the PSA on a before-tax basis, an after-tax basis or a combination of both in one-tenth percent increments, subject to a one percent minimum contribution percentage. Your combined before-tax and aftertax contribution percentage may not exceed your maximum contribution percentage shown on the PSA Contribution Table for the year in which deductions are taken. The current PSA Contribution Table is contained in APPENDIX A. The PSA Contribution Table for each year is published and distributed to eligible employees each December and is incorporated into this SPD by reference. You may also obtain a copy of the table for the current year at OxyLink Online or by calling OxyLink. The table shows the maximum amount you may contribute based on your Earnings. If your elected combined before-tax and after-tax contributions percentage exceeds the maximum contribution amount shown for your category in the table, your contributions will automatically be reduced to the allowable maximum (in whole 08/ PSA

13 percentage increments). First, your after-tax contributions will be reduced or eliminated, if necessary; then, if an additional reduction is necessary, your before-tax contributions will be reduced. You are not eligible to subsequently make retroactive employee contributions for any period during which you waived participation, during any period in which your elected contribution percentage was less than your maximum contribution category on the PSA Contribution Table, or during any period in which your contributions were voluntarily or involuntarily suspended. Your contributions are deducted from your Base Pay each pay period, deposited with the Plan trustee under the taxexempt trust established for the PSA, and credited to the Plan into the account set up in your name as soon as reasonably practicable after the payroll payment date. Annual Bonus The percentage that you elect to contribute to the PSA, both before-tax and after-tax, will automatically apply to the first $100,000 of your Annual Bonus, except that the maximum contribution percentage for bonuses is capped at six percent. Your contributions are deducted from your Annual Bonus in the pay period when the bonus is paid, deposited with the Plan trustee under the tax-exempt trust established for the PSA, and credited to the Plan into the account set up in your name as soon as reasonably practicable after the payroll payment date. Catch-Up Contributions If you will be at least age 50 or older on or before December 31 st, you are eligible to make additional before-tax catch-up contributions to the PSA during the year up to an annual maximum as specified in the Government Limits Table in APPENDIX A. If you are eligible to make catch-up contributions, these contributions may be made in addition to the PSA Contribution Table limits described above. Catch-up contributions are deposited with the Plan trustee at the same time and in the same manner as your regular before-tax contributions. If you made PSA catch-up contributions in a prior year, the same amount you contributed as catch-up contributions each pay period during that year will continue to be deducted in the following year unless you elect to increase, change or stop your catch-up contributions. How to Elect Catch-Up Contributions: If you are eligible to make catch-up contributions, you may elect to make contributions through OxyLink Online. To do so, determine the amount of before-tax catch-up contributions that you want to make to your PSA for each remaining pay period in the calendar year (up to the specified maximum in the Government Limits Table in APPENDIX A). This is the dollar amount that you will specify for catch-up contributions when you make your election at OxyLink Online. You may start, stop or change the amount of catch-up contributions deducted each pay period for the remainder of the year at any time. Your new election will take effect in the next available pay period. Catch-Up Contribution Considerations: You should consider making a separate election for catch-up contributions if you intend to contribute regular PSA before-tax contributions of at least the government s limit for regular before-tax contributions in effect for the year, as shown in the Government Limits Table in APPENDIX A. The regular before-tax contributions limit applies to all regular before-tax contributions that an individual may make to all employer-sponsored 401(k) plans like the PSA. If you intend to contribute less than this amount, catch-up contributions you make will be classified as regular PSA before-tax contributions up to the government limit. For example, if your regular PSA Before-Tax Employee Contributions in 2013 are $14,000 and you also make $5,500 in additional catch-up contributions, a portion of your catch-up contributions will be considered as regular before-tax contributions to reach the $17,500 limit. Therefore your total 2013 regular PSA Before-Tax Employee Contributions will be $17,500 and your total 2013 catch-up contributions will be $2,000. To assure that you maximize Oxy s Matching Company Contributions, you should not make catch-up contributions unless you are also contributing at least six percent of your Earnings in regular contributions to the PSA. This is 08/ PSA

14 because Oxy makes matching contributions on your regular before-tax and/or after-tax contributions to the PSA up to six percent of Earnings that you receive each pay period. Catch-up contributions are not matched regardless of your regular PSA contribution percentage. Retroactive catch-up contributions are not permitted. The Before-Tax Savings Advantage When you choose to contribute to the PSA on a before-tax basis rather than an after-tax basis, you are directing Oxy to contribute a percentage of your Earnings before it is taxed. While your income remains the same, the amount that is subject to immediate taxation is reduced by the amount of your before-tax contributions to the Plan. Lower taxable income means that you decrease your federal income taxes for the year in which your before-tax contributions are made. You will not pay federal or state (if applicable) income tax on your before-tax contributions until you take them out of the Plan. The advantages of before-tax savings provide a valuable incentive to save in the PSA and work toward your longterm financial goals. Keep in mind that while you remain actively employed at OPC or any Affiliate, your after-tax savings are available for withdrawal before age 59½, but your before-tax savings are not. Unless you are eligible and elect to make catch-up contributions (as discussed above), your annual before-tax contributions may not exceed the regular before-tax contribution limit for the year as shown in the Government Limits Table in APPENDIX A. When your year-to-date before-tax contributions equal the annual government limit, your contributions for the remainder of the year will automatically be deducted from your Earnings on an after-tax basis. The government s annual, regular before-tax contribution limit is an individual limit. Your combined before-tax contributions to all employer-sponsored 401(k) savings plans may not exceed the annual limit in any tax year, and it is your responsibility not to exceed it. If you have exceeded the limit, you must notify the administrator of one or more of the plans (by March 1 following the close of the taxable year in which you exceeded the limit) of the amount by which your before-tax contribution exceeded that limit. By April 15 in the same year, the administrator(s) of the plan(s) you notified must distribute to you the excess before-tax contributions and any investment income attributable to those contributions. The amount of your excess before-tax contributions will be included in your gross income for the year in which the limit was exceeded. Any investment income on the excess before-tax contributions that is refunded to you will be treated as earned and received in the tax year in which the payment is made to you. In the year you begin employment with Oxy, if you made before-tax contributions to another employer s 401(k) plan and your combined before-tax contributions under both plans will cause you to exceed the individual annual limit, notify OxyLink. If you provide OxyLink with the total amount you contributed on a before-tax basis at your previous employer s plan, Oxy will limit your contributions so that you will not exceed your individual before-tax limit in the year you are hired by Oxy. Effect of Before-Tax Employee Contributions on Social Security and Oxy Benefits PSA Before-Tax Employee Contributions will not reduce the amount of your Earnings that are reported for Social Security purposes. In some states, certain other statutory benefits for which you may become eligible (such as unemployment insurance, workers' compensation and state disability insurance) are based on taxable Base Pay or, in some cases, Earnings. Therefore, any benefit payments from these sources could be slightly reduced. Your pay for purposes of determining pay-related Oxy benefits, such as Oxy's retirement, pretax spending program, disability and life insurance plans, will continue to be based on your Base Pay before PSA Before-Tax Employee Contributions, including catch-up contributions, if any, are deducted. 08/ PSA

15 Changing Your Future Contribution Percentage Generally, you may change the amount of your contribution percentage in the first available payroll period following your election. You may also change your election to make your contributions on a before-tax and/or aftertax basis. You may request a change at OxyLink Online. A written confirmation of your election will be mailed to you within a few days. Suspending and Resuming Your Contributions Generally, you may stop or resume making contributions in the first available pay period following your election. If you suspend your contributions, the suspension will continue indefinitely until you request that your contributions be resumed at OxyLink Online. A written confirmation of your election will be mailed to you within a few days. Involuntary Contribution Suspension In some cases, your contributions may be suspended involuntarily. For example, your contributions will generally be suspended involuntarily for six months if you withdraw all or part of your Matching Company Contributions account before age 59½, as described in the section entitled In-Service Withdrawals. You may resume your contributions any time after the six-month suspension at OxyLink Online. The suspension generally begins in the first pay period of the second month following the end of the month in which the withdrawal is requested. Rollover Contributions If you are an active employee who is eligible to participate in the PSA, you may be able to roll over into your PSA all or part of the taxable money you receive in an eligible rollover distribution from another employer s tax-qualified retirement plan. If you rolled over your money from that plan to an individual retirement arrangement (IRA) before you participated in the PSA and you made no other contributions to that IRA, you may be able to roll over the taxable value of that rollover IRA to your PSA. Your rollover contribution must be received by the Plan Administrator within 60 days after you receive payment from your former employer's plan or from the IRA. If the qualified status of your rollover contribution cannot be determined, the Plan Administrator may require you to provide satisfactory evidence that the rollover is from a qualified plan or from an IRA that qualifies as a rollover (conduit) IRA. The rollover contribution will not be accepted until the Plan Administrator receives such proof. Upon acceptance, your rollover contribution will be deposited with the Plan trustee, credited to a Rollover Contributions account under your PSA, and will be invested among the PSA funds based on your rollover contribution investment election. If no rollover contribution investment election is received, the rollover contribution will automatically be invested in the Diversified Balanced Fund. You may obtain a rollover contribution application at OxyLink Online. Contribution Eligibility for Qualified Military Service If you serve in the uniformed services (as described in Chapter 43 of Title 38 of the United States Code) and are entitled to reemployment rights under that chapter with respect to such service, then you will be eligible to make additional before-tax or after-tax contributions to your PSA (up to the amount you would have been permitted to contribute to the Plan during your period of military service). If you make such contributions, Oxy will make the associated Matching Company Contributions in the same amount that would have been matched on your contributions during your period of military service. Fund earnings on such contributions will begin accruing on the date the contributions are credited to your PSA. The period over which you may make the before-tax or after-tax contributions described above begins on your Oxy reemployment date and continues for the lesser of (i) five years, or (ii) the product of three multiplied by your period of qualified military service that resulted in your reemployment rights. For example, if you had six months of qualified military service, you would have a period of 18 months (6 months x 3 = 18 months) from your Oxy reemployment date to make the before-tax or after-tax contributions that you would have been eligible to make 08/ PSA

16 during your period of qualified military service, which is less than the maximum 5-year period. If you qualify to make such contributions and wish to do so, call OxyLink. INVESTING IN THE PSA Available Investment Funds Subject to the restrictions noted here, in APPENDIX C or as may be imposed by the individual investment fund, you may invest your contributions among the investment funds described in the PSA Fund Descriptions contained in APPENDIX C. You may make this election at OxyLink Online under Employee Self Service > Link to PSA/PRA Information. Individual descriptions of each current PSA investment fund are also contained in the publication entitled PSA Fund Descriptions which is available at OxyLink Online under Forms, Publications & Info. This online document is updated quarterly and when necessary. You may also request a printed copy by sending an request to [email protected] or by calling OxyLink. The PSA Fund Descriptions document, by this reference, constitutes part of the PSA prospectus covering securities that have been registered under the Securities Act of Trustee and record keeping fees are paid by Oxy. Investment management fees under each fund are netted out of that fund s earnings. Each fund s total annual operating expenses are contained in the publication entitled PSA Fund Descriptions which is available at OxyLink Online under Forms, Publications & Info. You may also request a printed copy by sending an request to [email protected] or by calling OxyLink. Any fees that are rebated to the PSA trust by any of the investment managers will be credited to the respective fund as income and will be reflected in that fund s earnings. Past Fund Performance Information A fund performance summary showing annualized returns over the past one-, five- and ten-year periods along with a comparison of each investment fund s benchmark(s) performance over the same time periods is contained in the publication entitled PSA Fund Descriptions which is available at OxyLink Online under Forms, Publications & Info. This online document is updated quarterly and when necessary. You may also request a printed copy by sending an request to [email protected] or by calling OxyLink. Making Your Personal Investment Choices It is up to you to decide how to invest your PSA account balance. All investments involve the risk of loss as well as the possibility for gain. Historical performance is not indicative of the future performance of any PSA investment fund. Performance depends on a number of variables, including the future performance of Oxy Stock, the performance of other companies and markets in which investments are made and the actual time frame of the investment. Oxy does not guarantee the performance of any PSA fund nor does it assume any obligation to make up for any losses that you may experience. You may want to consult with an independent financial advisor regarding the PSA investment options that may best help you achieve your personal investment goals. Changing the Investment of Your Future Employee Contributions You may change your fund investment election for future employee contributions at any time at OxyLink Online. Your election must be in one-percent increments and total 100 percent. You may invest up to 55 percent of your future contributions (including, if applicable, catch-up contributions) in the Oxy Stock Fund. Your new election will take effect on the first available pay period after making the change at OxyLink Online. A written confirmation of your election will be mailed to you within a few days. Elections are processed daily and are effective as of the first available pay period. 08/ PSA

17 If no future investment election is on file, your future contributions will automatically be invested in the Diversified Balanced Fund. Transferring Your Current PSA Balances You may transfer the following accounts among the PSA s investment funds on any Trading Day at OxyLink Online, subject to the restrictions described below: Your Before-Tax Employee Contributions account (including, if applicable, catch-up contributions), Your After-Tax Employee Contributions account, Your Rollover Contributions account, and If you have at least three years of service, your Matching Company Contributions account. Subject to the restrictions in APPENDIX C or as may be imposed by the individual investment fund, the following additional requirements apply to fund transfers: You may not transfer account balances out of and into the same investment fund. If you elect to transfer less than the entire balance from a fund, the amount transferred will be taken proportionately from each eligible account balance you have invested in that fund. The amount transferred from each eligible account within each fund will be transferred to the same account in the new fund or funds that you select for investment. Your fund transfer investment elections must be in one-percent increments and total 100 percent. Transfers into the Oxy Stock Fund will be limited to 55 percent of your total PSA account balance. If you request a fund transfer by 1 P.M. Central Time, your transfer will be processed and valued at that same day s closing trading prices. If you request a fund transfer after 1 P.M. Central Time or on a non- Trading Day, your transfer will be processed and valued at the end of the next available Trading Day. If you make more than one fund transfer in a transfer period (after 1 P.M. Central Time until 1 P.M. Central Time on the next available Trading Day), only the final fund transfer you made during that period will be processed. A written confirmation of your election will be mailed to you after it is processed. Fund Transfer Fee: In any calendar year, you may make up to 24 fund transfer requests free of charge. Transfers from the Oxy Stock Fund to another PSA fund count as a fund transfer. For each additional fund transfer you request above 24 in any calendar year, a $10 fund transfer fee will be deducted from your PSA and will be used to pay for administrative Plan expenses. Excessive Trading Policy Restrictions: Under the Securities and Exchange Commission (SEC) Rule 22(c)-2, the Plan may be required to provide mutual fund companies with a participant s identification and transactions information. In addition, the Plan may be required to execute instructions from a mutual fund to restrict or prohibit any additional fund transfers by a participant who has been identified by the fund as having violated its excessive trading policies as described in the fund s prospectus. The SEC adopted this rule to help curtail frequent trading and market timing. Some of the PSA investment funds have entered into information-sharing agreements with the Plan Administrator or the recordkeeper to help identify Plan participants who may be trading in violation of the shortterm trading restrictions adopted by the fund. Pass-Through Dividend Payment Option Participants may elect to have their Oxy Stock Fund dividends immediately paid to them in a quarterly taxable cash payment. If you do not elect this option, dividends will continue to be reinvested under the Oxy Stock Fund and will be tax deferred. If you elect the pass-through dividend payment option, the payments you receive are: Taxable to you as ordinary income in the year you receive them and will be reported to you and the IRS on form 1099-R R income recipients may not file tax returns using form 1040EZ. Not eligible to be rolled over to an IRA or another qualified plan. 08/ PSA

18 Not subject to federal or state withholding tax when payment is made, but you may be responsible for taxes owed when you file your personal tax return. You can elect or revoke the pass-through dividend payment option at any time on OxyLink Online under Employee Self Service > Link to PSA/PRA Information. Insider Trading Prohibition OPC s Code of Business Conduct and U.S. securities law prohibit an employee from purchasing or selling Oxy Stock or other securities for personal profit based on information not available to the public but known to an employee because of his or her employment with OPC or any subsidiaries or entities controlled by it. Always remember to keep this policy in mind when making your investment decisions. (For detailed information, refer to Corporate Policy No. 21:50:01, Federal Securities Laws.) OXY'S MATCHING COMPANY CONTRIBUTIONS Oxy will make Matching Company Contributions to your PSA for each payroll period in which you contribute on a before-tax and/or after-tax basis, up to six percent of your Base Pay and the first $100,000 of your Annual Bonus (four percent for Ludington USW, Local 12273). To determine the matching rate that applies to you, see the Matching Company Contribution Rate Table in APPENDIX A. For example, assume you are a salaried employee with monthly Base Pay of $4,000. If you elect to contribute eight percent, your monthly contribution would be $320 of your Base Pay. Oxy's matching contribution will be 100 percent of the first six percent of your Base Pay, or $240. In addition, if your Annual Bonus is $10,000, you will contribute $600 of your bonus to the PSA when it is paid because the deferral percentage on your Annual Bonus is capped at six percent. You will also receive an additional Oxy matching contribution allocation to your PSA of $600. All Matching Company Contributions are invested in the Oxy Stock Fund regardless of your employee contribution investment choices. Active participants with at least three years of service and terminated vested participants may elect to transfer their Matching Company Contributions to other investment funds. Your Matching Company Contributions are deposited with the Plan trustee and credited to the Plan into the account set up in your name as soon as reasonably practicable after the payroll payment date. BENEFIT LIMITATIONS The federal government sets limits each year on the amount of: (i) annual Before-Tax Employee Contributions, (ii) Earnings which are taken into account in determining Plan benefits, and (iii) contributions you and Oxy may make to your PSA and PRA. See the Government Limits Table in APPENDIX A for the limits described below. Regular Before-Tax Contributions Limit As described earlier, your annual Before-Tax Employee Contributions may not exceed the annual before-tax contribution limit which applies to the combined amount of Before-Tax Employee Contributions you make to all qualified employer sponsored plans during a calendar year. When your year-to-date Before-Tax Employee Contributions equal the annual before-tax contribution limit, your contributions for the remainder of the year will automatically be deducted from your Earnings on an after-tax basis, unless you elect otherwise. You will automatically resume Before-Tax Employee Contributions January 1st of the following year (assuming you did not subsequently stop your election or change your PSA contribution election to After-Tax Employee Contributions). Annual Compensation Limit The Code limits the amount of Earnings which are taken into account in determining Plan benefits. Before-Tax and After-Tax Employee Contributions and Oxy s Matching Company Contributions may not be made based on Earnings above the annual compensation limit. 08/ PSA

19 Maximum Contribution Limit The maximum contribution limit applies to the total amount of annual contributions to the PSA and PRA. The amounts included in the maximum addition limit are: annual Before-Tax and After-Tax Employee Contributions to the PSA (excluding catch-up contributions), Oxy s annual Matching Company Contributions to the PSA, and Oxy s annual contributions to the PRA. Your PSA employee contributions will stop when the maximum contribution limit has been reached. FUND VALUATIONS All PSA funds are valued each Trading Day under the unit value accounting method. A unit is a standard measurement of a portion of a fund. Each unit has a dollar value that is calculated by dividing the total market value of each PSA fund by the total number of units held under that fund. A new per-unit value is calculated at the end of every Trading Day. All fund balances are expressed at their market value at the end of the last Trading Day. The market value of each participant account within each fund is determined by multiplying the number of units in each participant s account within each such fund by the per-unit value. A fund s per-unit value changes each Trading Day with gains and losses in the value of the fund s underlying investments. You purchase additional units under a fund when money is added to the fund through contributions, loan payments, and amounts transferred from the other investment funds. If you have a balance under the Oxy Stock Fund on the ex-dividend date, additional units are also purchased and credited to your Oxy Stock Fund balance on that date. You sell units under a fund when you request a payment or transfer money to another investment fund. To provide liquidity for fund transfers and payments, approximately one to three percent of the value of the Oxy Stock Fund is invested in short-term cash investments and the remainder is invested in shares of Oxy Stock. Cash payments for loans, in-service withdrawals and distribution payments from each fund are valued through the Trading Day preceding the check issuance date. For in-kind payments from the Oxy Stock Fund, the number of shares issued is determined by dividing the market value of the participant s Oxy Stock Fund balance by the closing market value for Oxy Stock on the Trading Day preceding the date the payment is processed. If on any Trading Day one or more of the fund investment managers fails to provide the PSA trustee with fund values by that Trading Day s daily valuation processing deadline, those funds will be processed and valued using the last available Trading Day s closing values, and all other funds will be valued using the current Trading Day s closing fund values. PARTICIPANT STATEMENTS You will receive quarterly statements showing your PSA fund balances as of March 31, June 30, September 30 and December 31. Statements are issued 30 to 45 days following the end of each statement period. On-demand statements are also available at OxyLink Online under Employee Self Service > Link to PSA/PRA Information. VOTING YOUR SHARES Your balance under the Oxy Stock Fund makes you a part-owner of OPC. As a stockholder under the PSA, you are entitled to full voting rights for your pro rata portion of shares held by your investment in the Oxy Stock Fund. Prior to any meeting of OPC's stockholders, the trustee will provide you with the information provided to stockholders and a form to instruct the trustee how to vote. If the trustee does not receive your instructions, the trustee will vote the pro rata portion of your shares held under the PSA trust in accordance with instructions from the PSA's Pension and Retirement Plan Administrative Committee (Administrative Committee). Your voting instructions are held in confidence and may not be divulged to OPC or any Affiliate. 08/ PSA

20 VESTING Vesting refers to your nonforfeitable right to receive benefits from the PSA. Your vesting service begins on the first day of the month in which you are hired by OPC or any Affiliate, whether or not it is an Affiliate participating in the PSA, and ends on the last day of the month in which you separate from service from OPC and all Affiliates. You always are fully vested in your before-tax, after-tax and rollover contributions accounts. You are also always fully vested in dividends paid on the portion of your Matching Company Contributions account invested in the Oxy Stock Fund. You will be fully vested in Oxy's Matching Company Contributions upon the earliest occurrence of one of the following events: You earn three years of vesting service; You attain age 65 while you are an active employee; You receive benefits under Oxy s Long-Term Disability (LTD) Plan for more than 24 consecutive months; You qualify to receive disability benefits from the Social Security Administration for a disability that commenced while you were an active employee; You receive benefits under the Occidental Petroleum Corporation Notice and Severance Pay Plan, an equivalent plan or program for Represented Employees, or you are entitled to receive severance benefits under an individual agreement; You die while you are an active employee; or The Plan is terminated. Vesting Schedule You vest in Matching Company Contributions according to the following schedule * : Years of Vesting Service Vesting Percentage Less than 3 years 0% 3 years or more 100% You earn one year of vesting service credit for each full year of service with OPC or any Affiliate, whether or not it is an Affiliate participating in the PSA. For vesting purposes, a year of vesting service generally is the 12-month period beginning on the first day of the month in which you are hired and each 12-month period thereafter, minus separations from service greater than 12 months. If you are rehired on or before the first anniversary of your separation-from-service date, your service will be considered continuous for vesting purposes. If you terminate employment with OPC and all Affiliates before you are fully vested, you will forfeit the nonvested portion of your Matching Company Contribution account. * Employees first hired before 2007 were vested 0% with less than one year of vesting service, 20% from one to two years of vesting service, 40% from two to three years of vesting service and 100% with three or more years of vesting service. 08/ PSA

21 YOUR PSA BENEFICIARY DESIGNATIONS Under the PSA, you may designate two types of beneficiaries: Primary Beneficiary: An individual or trust you name to receive your vested PSA in the event of your death. Contingent Beneficiary: An individual or trust you name to receive your vested PSA in the event of your death if all of your designated primary beneficiaries die before you. If you are unmarried or if you are married and age 35 or older, you may designate anyone as your primary or contingent beneficiary(ies). However, if you are married and you do not designate your spouse as your sole primary beneficiary, you must obtain your spouse's notarized written consent to do so. If you are married and under age 35, your sole primary beneficiary must be your spouse. If you die and are married on your date of death, your vested PSA balance will automatically be paid to your spouse unless he or she has provided notarized written consent to pay all or a portion of your vested balance to another primary beneficiary(ies) you designate. If you are unmarried when you make your beneficiary designation, and you subsequently marry and do not submit a new designation, the spouse to whom you are married on your date of death will automatically receive your vested PSA balance, unless he or she has provided his or her notarized written consent to pay all or a portion of your vested balance to the other primary beneficiary(ies) you designate. If any of your designated primary beneficiaries die before you and you do not change your designation, the percentage a deceased primary beneficiary would have received will be divided equally among your surviving primary beneficiaries in the event of your death. If all of your designated primary beneficiaries die before you and you do not change your designation, your vested PSA will be paid to your designated contingent beneficiaries in the event of your death. In this case, if any of your designated contingent beneficiaries die before you and you do not change your designation, the percentage a deceased contingent beneficiary would have received will be divided equally among your surviving contingent beneficiaries. If you do not designate a beneficiary or all of your designated primary and contingent beneficiaries die before you, payment will be made in the following order in the event of your death: Your surviving spouse Your surviving children (equally) Your surviving parents (equally) Your surviving brothers and sisters (equally) Your estate To designate your beneficiary or change your previous designation, you must complete a PSA Beneficiary Designation form (beneficiary designations submitted on other forms or in any other format will not be accepted) and mail the original to OxyLink at the address shown on the form. Upon acceptance, your designation will cancel all previous designations. Your PSA beneficiary designation will not affect your designation under any other Oxy benefit plan. The Plan Administrator reserves the right to require you or your beneficiary(ies) to provide satisfactory evidence of marital status or age. You should consider submitting a new beneficiary designation if: (1) your marital status changes, (2) any of your previously designated primary or contingent beneficiaries die before you, or (3) you acquire or lose dependents. Also, consider the tax consequences to your survivors and/or your estate if you designate a trust. To determine these tax consequences, it is recommended that you consult with a qualified tax advisor or estate planner. You may request a PSA Beneficiary Designation form at OxyLink Online under Employee Self Service > Link to PSA/PRA Information or by calling OxyLink. 08/ PSA

22 RECEIVING PSA BENEFITS AS AN ACTIVE EMPLOYEE You may take an in-service withdrawal or request a loan while you are an employee of OPC or any Affiliate, subject to the provisions described below. In-Service Withdrawals As an active employee, you may receive one in-service withdrawal during any six-month period. For example, if you receive an in-service withdrawal that is processed on January 15, you may request another withdrawal on or after July 15. You may not request a withdrawal and a loan within the same weekly processing period. The amount you may withdraw depends on your age, your vesting percentage and the value of your PSA on the Trading Day preceding the date your withdrawal request is processed. The following withdrawal options are available under the PSA: Option A: Your remaining nontaxable After-Tax Employee Contributions that you made to the Plan before January 1, This option is payable only in the form of cash. Amounts withdrawn under this option do not create a taxable event. Option B: If you are under age 59½, all or a portion of your After-Tax Employee Contributions account, then your Rollover Contributions account. If you are age 59½ or older, this option then will include all or a portion of your Before-Tax Employee Contributions account. This option will create a taxable event. Option C: You may request this option if you are 100 percent vested. This option will create a taxable event and will pay all or part of your Matching Company Contributions and ESOP Dividend Account in addition to your After-Tax Employee Contributions account, your Rollover Contributions account and, if you are age 59½ or older, your Before-Tax Employee Contributions account. Unless you have attained age 59½, you will be involuntarily suspended from making contributions to your PSA for a period of six months if you withdraw any portion of your Matching Company Contributions and ESOP Dividend Account. The order in which your accounts are depleted to pay your withdrawal is preset as follows: After-Tax Employee Contributions account, Rollover Contributions account, Before-Tax Employee Contributions account (if you are age 59½ or older), then Matching Company Contributions and ESOP Dividend Account (if you are 100 percent vested). If less than the entire balance of any account is needed to fulfill your withdrawal request, your fund balances within the account will be depleted on a pro rata basis among all funds. The balances you withdraw from your PSA will be valued as described in the section entitled Fund Valuations as of the Trading Day immediately preceding the check issuance date. If you request an Option B or Option C withdrawal, the amount withdrawn from the Oxy Stock Fund is paid in shares of Oxy Stock unless you elect to receive cash. Amounts withdrawn from the other investment funds are paid in cash. For information about the tax consequences of an in-service withdrawal, please refer to the Notice of Federal and State Tax Information for Plan Payments, which is attached as APPENDIX D and also available at OxyLink Online. You may download and print an in-service withdrawal packet at OxyLink Online. After you have carefully reviewed the information and instructions contained in the packet, complete your withdrawal request form and mail the original to OxyLink at the address shown on the form. Your withdrawal request form must be received by the form expiration date printed on the withdrawal request form. Withdrawals are processed on a weekly basis. Generally, your withdrawal will be included for processing in the weekly cycle in which it is received by OxyLink and 08/ PSA

23 approved by the Plan Administrator. Your withdrawal payment will be mailed 5-7 days following the end of the weekly processing period in which it is received and approved. PSA Loans The PSA allows employees to borrow money from their vested balance and repay it through payroll deductions. Eligibility To apply for a loan from your PSA, you must: Be an active employee of OPC or any Affiliate, and Have a minimum vested PSA balance of $2,000. You may have one loan outstanding at a time. After you repay a loan, you may apply for another loan as soon as the full repayment of your previous loan has been processed and updated. You may not request a loan and an in-service withdrawal in the same weekly processing period. Loan Amount The maximum PSA loan amount is the lesser of: $50,000 (reduced by your highest outstanding principal loan balance(s) in the PSA and any other plan of Oxy or an Affiliate during the past 12 months), or 50 percent of your vested PSA balance. Within these limits, the following restrictions also apply: Your monthly loan payment may not exceed 25 percent of your monthly base pay. The minimum loan amount is $1,000, and the principal loan amount must be in $100 increments. Your maximum loan amount is calculated based on the market value of your vested PSA on the Trading Day before the day you model and print your loan request form. Loan Type and Term General Purpose Loan: You may request a general purpose loan for any reason from a minimum period of one year to a maximum period of five years (in full year increments only). Primary Residence Loan: If the entire loan proceeds are used to acquire, construct, reconstruct or substantially rehabilitate your current or intended primary residence, you may request a primary residence loan from a minimum period of six years to a maximum period of ten years (in full year increments only). Loan Initiation Fee A $50 loan initiation fee will automatically be deducted proportionately from your remaining PSA fund balances when your loan request is processed. This nonrefundable fee will be used to pay administrative Plan expenses. 08/ PSA

24 Funds for Loans Your loan proceeds check will be valued as described in the section entitled Fund Valuations as of the Trading Day immediately preceding the check issuance date. Your PSA accounts will be liquidated automatically in the following order: first, your Before-Tax Employee Contributions account, then your Rollover Contributions account, then your After-Tax Employee Contributions account, then your vested Matching Company Contributions and ESOP Dividend Account. If less than an entire account balance is needed to fulfill your loan request, your account fund balances will be depleted on a pro rata basis among all funds. Repayment Terms Your loan term begins on the first day of the second month following the end of the month in which your loan is requested. The interest rate you pay will be based on the Wall Street Journal Prime Rate, as described in The Wall Street Journal on the first day of the month prior to the calendar month in which the loan is requested. The rate in effect when your loan is approved will remain the same for your entire loan term. The principal and interest portion of your loan-payment payroll deductions is computed on a monthly pay-back basis and credited to your PSA. Loanpayment payroll deductions are irrevocable and are deducted from your after-tax pay. Payroll deductions will begin in the first pay period of the second month following the end of the month in which your loan is requested. Payroll deductions are generally made each pay period depending on your pay frequency. The following number of deductions will be taken during each year of your loan term from the paycheck shown: Pay Frequency Weekly 48 Semimonthly/biweekly 24 Monthly 12 Number of Annual Deductions Generally, the amount of your loan payments will remain the same throughout your entire loan term unless your pay frequency changes or your loan must be re-amortized because of missed payments. Contact OxyLink if your loan payment stops, your pay is less than the loan payment, your pay frequency changes or you begin or return from an approved leave of absence. Loan repayments first are credited to your outstanding loan balance in your Matching Company Contributions and ESOP Dividend Account. Depending on which employee accounts were borrowed, the remainder of your payments will be credited to your employee accounts in the following account repayment order: your After-Tax Employee Contributions account, your Rollover Contributions account, then your Before-Tax Employee Contributions account. The payments to your employee accounts are credited to your PSA fund balances based on your current fund investment election for employee contributions. If no election is on file, payments are credited to your employee accounts under the Diversified Balanced Fund. Your loan repayments are invested in your PSA and valued as described in the section entitled Fund Valuations. If you are an active employee of OPC or any Affiliate, you may prepay the entire principal balance of your loan at any time. The amount of your prepayment will be the outstanding principal loan balance as of the end of the month in which your prepayment is received and processed. If you wish to prepay your loan, you may request a prepayment statement at OxyLink Online or by calling OxyLink. To be accepted, your prepayment must be made pursuant to the instructions outlined in your prepayment statement. Otherwise, your loan will remain outstanding. Loan Delinquency Under current law, you owe no taxes on the amount you borrow as long as you repay your loan in accordance with the Plan's Loan Rules, which are incorporated by reference into the Plan and into this SPD. If you do not repay your loan pursuant to its terms, or if you declare bankruptcy while you are an active employee of OPC or any Affiliate, your outstanding loan will be subject to the provisions of the Plan's Loan Rules. The Administrative Committee 08/ PSA

25 reserves the right to amend the Loan Rules at any time. A copy of the current Loan Rules is available at OxyLink Online when you model and apply for a loan. If you separate from service with OPC and all Affiliates for any reason and do not repay your outstanding principal balance within two months following the date in which your separation from service occurs (or at the time you submit a PSA distribution request, if sooner), your loan will automatically be considered a Plan distribution and subject to taxation. For information about the tax consequences of a distribution due to loan delinquency, please refer to the Notice of Federal and State Tax Information for Plan Payments, which is attached as APPENDIX D and also available at OxyLink Online. How to Apply for a Loan You may model and request a loan through OxyLink Online. After you have modeled the loan you desire, you may then print the loan application. You then sign, date and mail the completed original application to OxyLink at the address shown on the form. Your completed loan application must be received at OxyLink by the last Friday of the month in which the loan application form was printed. Plan loan applications are processed on a weekly basis. Generally, your loan application will be included for processing in the weekly cycle in which it is received by OxyLink and approved by the Plan Administrator. Your loan proceeds will be mailed 5-7 days following the end of the weekly processing period in which it is received and approved. RECEIVING PSA BENEFITS WHEN YOU LEAVE OXY You (or your designated beneficiary, in the event of your death) are eligible to request a distribution of your vested balance when you separate from service from OPC and all Affiliates for one of the reasons described below. Termination of Employment: If you terminate for reasons other than retirement, permanent and total disability or death, you will be eligible to request the full value of your employee accounts and the vested portion of your Matching Company Contributions account. Retirement: If you terminate at age 55 or older with three or more years of vesting service or after you attain age 65, you will be 100 percent vested in your Matching Company Contributions account and eligible for a retirement distribution. Permanent and Total Disability: You will be considered permanently and totally disabled and eligible for a disability distribution upon the earliest occurrence of one of the following events: You receive benefits under Oxy s Long-Term Disability Plan for more than 24 consecutive months. Note that if you were disabled prior to January 1, 2010, your LTD benefit may be affected by your distribution if you do not elect a direct rollover to an Individual Retirement Account (IRA). You qualify to receive benefits from the Social Security Administration (SSA) for a disability that commenced while you were an active employee. A copy of your disability benefits approval letter from the SSA must accompany your distribution request form. To qualify for a disability distribution, you must meet one of the disability requirements described above at the time you submit your PSA distribution request. Death: If you die while you are an active employee, your PSA will be 100 percent vested and your designated beneficiary will be eligible for a distribution. If you die after you separate from service with a deferred vested balance, your designated beneficiary will be eligible to receive your remaining deferred balance. Please refer to the section entitled Death Benefits for death benefit distribution information. 08/ PSA

26 Participant Distribution Payment Options Under the PSA, the normal form of payment is a lump-sum payment. You may also select one of the other payment options described below. If you are married when you are eligible to request a distribution, and elect to purchase an annuity, your spouse s notarized consent will be required if you select other than a joint and survivor annuity with your spouse as joint annuitant. The Plan Administrator reserves the right to require satisfactory evidence of your marital status. Total Lump-Sum Payment A single payment of your vested balance. The portion of your balance invested in the Oxy Stock Fund will be distributed in shares of Oxy Stock unless you request it in cash. Your balances in the other funds will be distributed in cash. The cash payment can be rolled over to an IRA or to a qualified employer plan. Partial Cash Distribution A request for a specified dollar portion of your vested balance. You may request one partial cash distribution in any six-month period. The partial cash payment can be rolled over to an IRA or to a qualified employer plan. If you receive a partial cash distribution, you must wait until the next weekly processing period before you may request a subsequent lump-sum payment or total annuity distribution. Under this option, your fund balances will automatically be depleted on a pro rata basis in the following account depletion sequence: first your After-Tax Employee Contributions account, then your Rollover Contributions account, then your Before-Tax Employee Contributions account, then your Matching Company Contributions and ESOP Dividend Account. Your remaining balance will continue to participate in the fund investment performance. Special Distribution This option takes two processing weeks to complete. In the first processing week, all of your non-oxy Stock Fund balances are rolled over to the institution you designate to receive the direct rollover. This rollover is not taxable to you until you take payment from that institution. In the second processing week, your Oxy Stock Fund balance is paid to you in shares of Oxy common stock. This option is provided in the event you want to take tax advantage of the unrealized cost basis of your Oxy Stock Fund balance described in the Notice of Federal and State Tax Information for Plan Payments, which is attached as APPENDIX D. Immediate Straight Life Annuity Provides a fixed monthly payment for your life. No monthly payments will be made after your death. Immediate Joint and Survivor Annuity Provides fixed monthly payments for your life. Upon your death, the elected percentage of the monthly payment will continue for the life of your joint annuitant. You may elect that 50 percent, 75 percent or 100 percent of your monthly payment be continued for the life of your joint annuitant. If you die, joint annuitant payments are payable only to the individual you name when you select this option. You may not change your joint annuitant designation after annuity payments begin. If you name your spouse as your joint annuitant, it is payable only to that spouse not to anyone else you may marry at a later date. Immediate Ten-Year Term Certain and Continuous Annuity Provides fixed monthly payments for your life with a guarantee by the insurance company that a minimum of 120 payments will be made even if you die before receiving all of them. Your designated beneficiary under the annuity will receive the remaining payments. Total Deferral Defers distribution of your vested balance, but not beyond the end of the year in which you attain age 70½. You may revoke your deferral election at any time by submitting another distribution request. All of the annuity payment options described above require a vested PSA balance of more than $5,000. If you are interested in purchasing one of the annuity options, you may request estimates of the monthly annuity payment amounts under each option from an OxyLink representative. If you purchase an annuity, your actual monthly 08/ PSA

27 payment amount will be calculated by the insurance company using the annuity rate quoted on your estimate, provided you return your signed distribution form on or before the rate expiration date as shown on your estimate. When you request the PSA to purchase an annuity on your behalf, your monthly annuity payments are guaranteed by the insurance company from which the annuity is purchased with the balance of your PSA. This guarantee is based on the ability of the insurance company to fulfill its obligation under the annuity contract. It is important to note that your payments under the contract are not guaranteed by the Pension Benefit Guaranty Corporation, as described in the section entitled Pension Benefit Guaranty Corporation, or by OPC or any Affiliate. The taxable portion of your annuity payments paid by the insurance company will be subject to ordinary income taxes in the tax year in which you receive the payments. For information about the tax consequences of a distribution, please refer to the Notice of Federal and State Tax Information for Plan Payments, which is attached as APPENDIX D and also available at OxyLink Online. How to Request a Distribution You are eligible to request a distribution after your separation from service has been processed by OPC or the Affiliate that you worked for last. You may download and print a distribution packet at OxyLink Online. After you have carefully reviewed the information and instructions contained in the packet, complete your distribution request form and mail the original to OxyLink at the address shown on the form. Your distribution request form must be received by the form expiration date printed on the distribution request form. Distributions are processed on a weekly basis. Generally, your distribution request will be included for processing in the weekly cycle in which it is received by OxyLink and approved by the Plan Administrator. Your distribution payment will be mailed 5-7 days following the end of the weekly processing period in which it is received and approved. DEATH BENEFITS If you die while you are a participant, your PSA will be paid to your surviving designated primary beneficiary(ies). To receive a distribution, each of your primary beneficiaries must complete a PSA Beneficiary Distribution Request. Forms, instructions and information about the distribution options available to beneficiaries are available from OxyLink. Beneficiary Distribution Payment Options For a Spousal Beneficiary If the surviving spouse of a deceased participant is the only designated primary beneficiary, the surviving spouse may elect one of the PSA distribution payment options described below. Total Lump-Sum Payment A single payment of the deceased participant's PSA balance. This option is the normal form of payment for a spousal beneficiary. The portion of the PSA distributed from the Oxy Stock Fund will be distributed in shares of Oxy Stock, unless the beneficiary elects to receive it in cash. All other funds are distributed in cash. The cash payment can be rolled over to an IRA or to a qualified employer plan. Partial Cash Distribution A request for a specified dollar portion of the deceased participant s vested balance. The spousal beneficiary may request one partial cash distribution in any six-month period. The partial cash payment can be rolled over to an IRA or to a qualified employer plan. If the spousal beneficiary receives a partial cash payment, he or she must wait until the next weekly processing period before requesting a subsequent lump-sum payment or annuity distribution. Under this option, the fund balances will automatically be depleted on a pro rata basis in the following account depletion sequence: first, the After-Tax Employee Contributions account, then the Rollover Contributions account, then the Before-Tax Employee Contributions account, then the Matching Company Contributions and ESOP Dividend Account. Balances remaining in the PSA will continue to participate in the fund investment performance. 08/ PSA

28 Immediate Straight Life Annuity Provides a monthly payment for the life of the beneficiary. No payments are made after the beneficiary's death. Immediate Ten-Year Term Certain and Continuous Annuity Provides monthly payments for the life of the beneficiary with a guarantee by the insurance company that a minimum of 120 payments will be made even if the beneficiary dies before receiving all of them. The designated beneficiary under the annuity will receive the remaining payments. Total Deferral Defers distribution of the vested balance, but not beyond the end of the year in which the deceased participant would have attained age 70½. A deferral election may be revoked at any time by submitting another PSA Beneficiary Distribution Request. For a Nonspousal Beneficiary A nonspousal beneficiary who is the deceased participant's only designated primary beneficiary may elect one of the distribution payment options described below. If the deceased participant designated other primary beneficiaries, all beneficiaries are eligible for immediate lump-sum payments only, as described in the paragraph for Multiple Beneficiaries shown below. Immediate Total Lump-Sum Payment A single payment of the beneficiary's designated portion of the deceased participant's vested balance. This option is the normal form of payment for a nonspousal beneficiary. The portion of the PSA distributed from the Oxy Stock Fund will be distributed in shares of Oxy Stock, unless the beneficiary requests it in cash. All other funds are distributed in cash. The cash payment can be rolled over to an IRA or to a qualified employer plan. Immediate Straight Life Annuity Provides a monthly payment for the life of the beneficiary. No payments are made after the beneficiary's death. Immediate Ten-Year Term Certain and Continuous Annuity Provides monthly payments for the life of the beneficiary with a guarantee by the insurance company that a minimum of 120 payments will be made even if the beneficiary dies before receiving all of them. A designated beneficiary under the annuity will receive the remaining payments. The annuity payment options described above require a vested PSA balance of more than $5,000. If the eligible beneficiary is interested in purchasing one of the annuity options, he or she may request estimates of the monthly annuity payment amounts under each option by calling OxyLink. If the eligible beneficiary purchases an annuity, the actual monthly payment amount will be calculated by the insurance company using the annuity rate quoted on the estimate, provided the signed distribution form is returned on or before the rate expiration date as shown on the estimate. If the eligible beneficiary requests the PSA to purchase an annuity on his or her behalf, the monthly annuity payments are guaranteed by the insurance company from which the annuity is purchased with the balance in the PSA. This guarantee is based on the ability of the insurance company to fulfill its obligation under the annuity contract. It is important to note that payments under the contract are not guaranteed by the Pension Benefit Guaranty Corporation, as described in the section entitled Pension Benefit Guaranty Corporation, or by OPC or any Affiliate. The taxable portion of the annuity payments paid by the insurance company will be taxable ordinary income to the beneficiary in the tax year in which he or she receives the payments. If a nonspousal beneficiary does not submit his or her distribution request within 60 days of when the form is mailed to them by OxyLink, that beneficiary will automatically be paid in a lump sum, 10% federal income tax will be withheld, and the balance in the Oxy Stock Fund will be paid to the nonspousal beneficiary in shares of Oxy Stock. For Multiple Beneficiaries If the deceased participant designated more than one primary beneficiary, each designated primary beneficiary may elect only an immediate total lump-sum payment of the designated portion of the deceased participant's PSA balance. The cash payment can be rolled over to an IRA or to a qualified employer plan. 08/ PSA

29 Amounts distributed to beneficiaries from the PSA will be valued as described in the section entitled Fund Valuations. Distributions are processed on a weekly basis. Generally, your distribution request will be included for processing in the weekly cycle in which it is received by OxyLink and approved by the Plan Administrator. Your distribution payment will be mailed 5-7 days following the end of the weekly processing period in which it is received and approved. For information about the tax consequences of a death benefit distribution, please refer to the Notice of Federal and State Tax Information for Plan Payments, which is attached as APPENDIX D and also available at OxyLink Online. REQUIRED MINIMUM PAYMENTS This section describes the latest date that benefits can start or be paid under the Plan and current law. Required Minimum Distribution rules are in place unless waived by the Federal government. You should note, however, that other provisions of the Plan may require that benefits start or be paid at an earlier time as described elsewhere in this SPD. During the Participant s Lifetime If you leave OPC and all Affiliates in or after the year you attain age 70½, you will be required to receive a required minimum payment and a total lump-sum payment of your entire remaining PSA balance by December 31 of that year. If you leave OPC and all Affiliates before you attain age 70½ and have a deferred vested PSA balance, you will be required to receive a required minimum payment and a total lump-sum payment of your entire remaining balance by December 31 of the year in which you attain age 70½. After the Participant s Death If you die before commencing benefits and your spouse is the sole beneficiary, your spouse will be required to receive a required minimum payment and a total lump-sum distribution by December 31 following the year you died or, if later, the year in which you would have attained age 70½. If you die before commencing benefits and your beneficiary is other than your spouse, your beneficiary must commence benefit payments by December 31 following the year in which you died. As required by law, a required minimum payment must be paid to you directly (or to your designated beneficiary, in the event of your death) and may not be rolled over to an IRA or to another employer s qualified plan. However, if you elect one of the annuity payment options, the entire balance, including the required minimum payment, will be used to purchase the annuity. The annuity payments will be taxable income to you in the year you receive your payments. If you are subject to the PSA s required minimum payment provisions, you (or your designated beneficiary, in the event of your death) will receive detailed information directly from the Plan Administrator during the first half of the year you attain age 70½. OTHER IMPORTANT PROVISIONS OF THE PSA Employment Changes If You Are Rehired by Oxy: If you separate from service and later are rehired and meet the Plan's eligibility requirements, you may start contributing to the PSA in the first available pay period following your reenrollment. The vesting service credit you had when you terminated will be restored to you. If you were not fully vested when you originally separated from service, you forfeited the nonvested portion of your Matching Company Contributions account. When you are rehired, that amount is reinstated to your account. 08/ PSA

30 If You Transfer to an Ineligible Status: If you transfer to an Affiliate that is not a participating employer, or, for any reason, you no longer meet the PSA's eligibility requirements, your PSA will be placed in an inactive status. While your account is in an inactive status: Your employee contributions and Matching Company Contributions will stop Your PSA accounts will remain in the Plan and continue to be credited with investment fund earnings and losses You will continue to earn vesting service credit You will be eligible to request withdrawals, loans and fund transfers. If You Are Hired by Oxy After Being a Leased Employee: If you are hired by Oxy after being a leased employee of OPC or any Affiliate, and you become a participant in the PSA, service during the time you were a leased employee will be credited for eligibility and vesting purposes. Generally, the term leased employee means any person other than a common law employee of OPC or any Affiliate who has worked substantially full-time for at least one year through an agreement between OPC or any Affiliate and a leasing organization. Assignment of Benefits Your PSA benefit belongs to you and generally may not be sold, assigned, transferred, pledged or garnished under most circumstances. A participant or beneficiary may disclaim all or a portion of his or her PSA benefit subject to prescribed rules. If you (or your beneficiary) are unable to care for your own affairs, any elections may be made by, and any payments due may be paid to, someone who is authorized to conduct your affairs. This may be a relative, a court-appointed guardian, or some other person. In addition, the Plan is required to comply with IRS tax levies and with court-issued Qualified Domestic Relations Orders, as described in the next section. Qualified Domestic Relations Orders If you become divorced or separated, are required to pay child support, or are involved in a court proceeding dividing marital property, certain court orders could require that part of your benefit be paid to someone else your spouse or children, for example. This is known as a Qualified Domestic Relations Order (QDRO) and could affect the Plan benefit paid to you as well as to any beneficiary. For a court order to qualify under the Plan, certain procedures must be followed and certain legal requirements must be met. The Plan s QDRO Administrator determines whether these legal standards are met. A booklet containing QDRO guidelines and model forms under the PSA is available upon request free of charge. To obtain this booklet or to submit correspondence regarding a QDRO, please contact: Oxy Qualified Order Team Post Office Box 6300 Newport Beach, CA You may be able to speed up court proceedings and save on legal fees by getting a copy of the Plan s QDRO guidelines for review by your attorney before any order is presented to a court awarding someone else a share of your PSA benefit. By following the QDRO procedures, you reduce the risk that the order will be rejected by the QDRO Administrator. If your order is rejected, you or your attorney will need to get the court to issue a revised order. 08/ PSA

31 Documents Incorporated by Reference The following documents, which have been filed by OPC or the Plan with the Securities and Exchange Commission, are incorporated by reference in the Plan prospectus: OPC's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, OPC's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, OPC's Current Report on Form 8-K, filed January 8, 2013, OPC's Current Report on Form 8-K, filed January 31, 2013, OPC's Current Report on Form 8-K, filed February 15, 2013, OPC's Current Report on Form 8-K, filed March 18, 2013, OPC's Current Report on Form 8-K, filed April 8, 2013, OPC's Current Report on Form 8-K, filed April 25, 2013, OPC's Current Report on Form 8-K, filed April 29, 2013, OPC's Current Report on Form 8-K, filed April 29, 2013, OPC's Current Report on Form 8-K, filed May 3, 2013, OPC's Current Report on Form 8-K, filed May 3, 2013, OPC's Current Report on Form 8-K, filed May 3, 2013, OPC's Current Report on Form 8-K, filed May 8, 2013, OPC's Current Report on Form 8-K, filed May 17, 2013, OPC's Current Report on Form 8-K, filed July 16, 2013, OPC's Current Report on Form 8-K, filed July 26, 2013, OPC's Current Report on Form 8-K, filed July 30, 2013, OPC's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, The Plan's Annual Report on Form 11-K for the fiscal year ended December 31, 2012, The descriptions of Oxy Stock contained in Registration Statement on Form 8-B, dated June 26, 1986 (as amended by Form 8, dated December 22, 1986, Form 8, dated February 3, 1988, Form 8-B/A, dated July 12, 1993, Form 8-B/A, dated March 21, 1994, and Form 8-B/A, dated November 2, 1995 and any amendment or report filed for the purpose of updating such descriptions subsequent to the date of the Plan Prospectus), and All other documents subsequently filed by OPC pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act of 1934 (the 1934 Act) prior to the filing of a post-effective amendment which indicates that all securities offered have been sold or which deregisters all securities remaining unsold, shall be deemed to be incorporated into this prospectus. These documents (other than exhibits to such documents, unless such exhibits are specifically incorporated by reference into the document the prospectus incorporates), as well as all documents required to be delivered to Plan participants pursuant to Rule 428(b) under the 1934 Act, are available without charge by contacting the Assistant Corporate Secretary, Occidental Petroleum Corporation, Wilshire Boulevard, Los Angeles, California 90024, telephone number / PSA

32 Plan Continuation OPC expects and intends to continue the PSA but reserves the right to modify, suspend, change or terminate the Plan, or any features of the Plan, at any time or for any reason. Any amendment to the PSA will be effected through a resolution of the Board of Directors of OPC or, in certain circumstances, by the Plan Administrator. OPC does not guarantee the continuation of this Plan during any periods of active employment, inactive employment, disability or retirement, nor does it guarantee any specific level of future benefits. The Plan is purely voluntary on the part of the company, and OPC reserves the right to terminate it at any time by action of its Board of Directors. Benefits under this Plan are provided at the company's discretion and do not create a contract of employment. If material changes that affect Plan participants are made in the future, you will be notified. If you are an employee when the Plan is terminated, or if there is a partial termination of the Plan that affects you, you will immediately become vested in your Plan benefit as of the termination date. Distributions of Plan benefits will be made in accordance with the terms of the Plan and as directed by OPC or the Plan Administrator. Pension Benefit Guaranty Corporation The Pension Benefit Guaranty Corporation (PBGC) is a governmental agency created by ERISA. PSA benefits are not insured by the PBGC. This Plan is one of the types of plans not covered by the PBGC and is exempt from PBGC insurance requirements. For more information about the PBGC and the benefits it guarantees, ask your Plan Administrator (for contact information see the section entitled Additional Information) or contact the PBGC s Technical Assistance Division, 1200 K Street N.W., Suite 930, Washington, D.C or call TTY/TDD users may call the federal relay service at and ask to be connected to Additional information about the PBGC s pension insurance program is available through the PBGC s website at Plan Documents This SPD summarizes the key features of the PSA. Complete details can be found in the official Plan documents that legally govern the operation of the Plan. All statements made in this SPD are subject to the provisions and terms of those documents. Plan documents include the official Plan text, the trust agreement, the documents described under the section entitled Documents Incorporated by Reference that are incorporated in the prospectus and such other documents and reports that are maintained by the Plan and/or filed with a federal government agency. You may request copies of any Plan documents by writing to the Plan Administrator at the address shown in the section entitled Additional Information. Copies will be furnished within 30 days at a reasonable charge. Mergers, Consolidations, and Transfers If the Plan is merged or consolidated, or if Plan assets are transferred to another plan, the benefit you have accrued at the time of the merger, consolidation, or transfer will be protected. Your account under the new plan, if the plan were to terminate immediately after the change, would at least equal the amount that you would have been entitled to receive if the current Plan had terminated just before the change. Overpayment The Plan Administrator makes every effort to ensure that benefit payments are correct. If a mistake is made when your account is distributed, the Plan Administrator reserves the right to recover any overpayment. 08/ PSA

33 Data and Records If you do not keep your most recent address on file and Oxy cannot locate you, benefit payments may be delayed. Also, if you do not provide necessary information, such as copies of valid driver licenses or birth certificates, in a timely manner, then payment of your benefit will be delayed. If the Plan Becomes Top Heavy A qualified retirement plan is considered top heavy when 60 percent or more of the benefits from the Plan are payable to key employees. It is unlikely that this Plan will become top heavy, but if it does, you will be notified. Special rules apply for any period of time the Plan is top heavy. No Implied Promises Nothing in this booklet says or implies that participation in this Plan is a guarantee of continued employment with OPC or any Affiliate. Neither is it a guarantee that the Plan s current benefit formula will remain unchanged in future years. Oral representation or promises will not be binding on the Plan. Participants and beneficiaries should not rely on any oral description of the Plan because the written terms of the Plan document will always govern. CLAIMS AND APPEALS PROCEDURES General Information About Claims The Plan sponsor is OPC. OPC has designated the Pension and Retirement Plan Administrative Committee as the named fiduciary of the Plan and Plan Administrator for purposes of ERISA. In other words, the Plan Administrator administers the Plan for the Plan sponsor. It is the Plan Administrator s responsibility to interpret the Plan and make final decisions on such things as eligibility and payment of benefits. In exercising its fiduciary responsibilities, the Plan Administrator has discretionary authority to determine whether and to what extent participants, surviving spouses, and beneficiaries are eligible for benefits, and to construe disputed or doubtful Plan terms. The Plan Administrator shall be deemed to have exercised such authority properly unless it has abused its discretion by acting arbitrarily and capriciously. All decisions of the Plan Administrator are binding on participants, beneficiaries, alternate payees, and all other persons claiming benefits under the Plan. A claim for benefits is a formal request by you (or your spouse or beneficiary) for the payment of benefits due under the terms of the PSA. You (including your spouse or beneficiary) have a right to file a formal claim for a benefit from the PSA if you believe that you are not receiving all benefits to which you are entitled under the terms of the Plan. For example, you may believe that you are entitled to a larger benefit or different payment terms (e.g., payment form or payment starting date) than is indicated in response to your application for your benefit. Also, if in response to your application, the Plan Administrator indicates that you are due no benefit under the terms of the Plan, you may file a formal claim for benefits. All formal claims for benefits must be submitted in writing to the Plan Administrator no later than eighteen months after the date that the transaction occurred or should have occurred at the address indicated in the section entitled Additional Information. The Plan Administrator is the named fiduciary with responsibility for deciding your claim. The submission should indicate that it is a formal claim for benefits. An authorized representative may represent you when you file your initial claim or you appeal the initial denial of your claim. The Plan Administrator may require that the person you select provide evidence (such as a signed authorization) that you have authorized him or her to represent you in connection with your claim for benefits. 08/ PSA

34 Time Period for Responding to Initial Claim Generally, the Plan Administrator will provide a response to your claim within 90 days after receiving your claim. The Plan Administrator may notify you in writing before the end of the normal 90-day review period that it needs up to an additional 90 days to review your claim because of special circumstances. That notification will indicate the special circumstances requiring the extension (such as not receiving required information) and when the Plan Administrator expects to be able to respond to your claim. If you do not receive a response within the applicable time period, please contact OxyLink. Alternatively, you may assume that the claim has been denied and submit an appeal. However, in that case you will not have as much information to help you prepare a successful appeal. If the claim is a claim that you are disabled, the following timing rules will apply instead of those stated in the preceding paragraph. The Plan Administrator will provide a response to your claim within 45 days after it receives your claim. The Plan Administrator may notify you in writing before the end of the normal 45-day review period that it needs an additional 30 days to review your claim because of special circumstances beyond the control of the Plan Administrator. If special circumstances beyond the control of the Plan Administrator justify extending the claim period up to an additional 30 days, you will be given written notice of this extension within the original 30-day period. Each extension shall set forth the special circumstances beyond the control of the Plan Administrator and the date a decision is expected. Information Provided if Initial Claim is Denied If your claim is denied in whole or in part, you (or your spouse or beneficiary) will receive a written response from the Plan Administrator. The Plan Administrator s response will include the following information: The specific reasons for the denial; Reference to the specific Plan provisions upon which the denial was based; A description of any additional material or information that is necessary for your claim to be successful, and an explanation of why this information is necessary; An explanation that a full and fair review by the Plan Administrator of the decision denying the claim may be requested by you or your authorized representative by filing with the Plan Administrator, within 60 days (or, if the claim for benefits is based on your disability, 180 days) after such notice has been received, a written request for such review; A statement that you or your authorized representative have a right to receive, upon request and free of charge, reasonable access to or copies of documents, records, and other information relevant to your claim for benefits, other than legally privileged documents, and to submit issues and comments in writing within the period specified above; and A statement that you have a right to bring a civil action under ERISA, following an adverse determination on any appeal you file after the initial denial of your claim. If the Plan Administrator s response does not include all of this information, please contact OxyLink and request the missing information. Appeal Procedure if Initial Claim is Denied If your initial claim is denied, you (or your spouse or beneficiary) may appeal the denial and request that the Plan Administrator further review your claim. You must submit your appeal in writing to the Plan Administrator at the address noted in the section entitled Additional Information within 60 days (or, if the claim for benefits is based on your disability, 180 days) after you receive the notice denying your initial claim. If you do not submit your appeal by this deadline, you will lose the opportunity to make an appeal and you may lose the right to bring a lawsuit challenging the denial of benefits. In connection with your appeal, you may submit written comments, documents, records, or other information relating to your claim. Upon request, the Plan Administrator will provide you with reasonable access to and copies 08/ PSA

35 of documents, records, and other information relevant to your claim for benefits. However, certain documents, records, and other information may not be available to you (such as information protected by privacy laws). Generally, you will receive a response within 60 days (or, in the case of a disability claim, 45 days) after the Plan Administrator receives your appeal. The Plan Administrator may notify you in writing before the end of the normal 60-day review period that it needs an additional 60 days (or, in the case of a disability claim, 45 days) to review your claim because of special circumstances. That notification will indicate the special circumstances requiring the extension (such as not receiving required information) and when the Plan Administrator expects to be able to respond to your claim. If you do not receive a response within the applicable time period, please contact the Plan Administrator. The Plan Administrator will consider your appeal, taking into account all comments, documents, records, and other information submitted, including information not submitted or considered in the initial decision on your claim. Any decision made by the Plan Administrator on appeal will be final and conclusive. Information Provided if Appeal is Denied If your appeal is denied in whole or in part, you will receive a written response from the Plan Administrator. The Plan Administrator s response will include the following information: The specific reasons for the denial; Reference to the specific Plan provisions upon which the denial was based; A statement that, upon request, you or your authorized representative is entitled to receive, free of charge, reasonable access to and copies of documents, records, and other information relevant to your claim for benefits; however, certain documents, records, and other information may not be available to you (such as information protected by attorney-client privilege); and A statement that you have a right to bring a civil action under ERISA following the adverse determination on your appeal. If the Plan Administrator s response does not include all of this information, please contact OxyLink and request the missing information. All decisions made by the Plan Administrator under this benefits claims procedure are final and there shall be no further right of appeal. Legal Proceedings You (or your spouse or beneficiary) may have a right to bring a lawsuit under ERISA, challenging the denial of an appeal of your claim for benefits. If you do not fully utilize the claims procedures outlined previously, including the right to appeal the initial denial of your claim, the Plan Administrator expects to assert that any lawsuit you file attempting to recover on your claim for benefits should be dismissed because you have not fully exhausted the available administrative remedies. A number of courts have ruled that lawsuits brought by participants or beneficiaries seeking Plan benefits will be dismissed in these circumstances. You should discuss this point with your legal advisor because there are differences in how courts address this issue under various circumstances. Also, the Plan has a special rule to promote a prompt resolution of any disagreement that you or your beneficiaries may still have about your benefit. In addition to any earlier deadlines that may apply for filing a lawsuit, the Plan document provides that no lawsuit challenging the claim denial may be filed with a court after the later of (i) 180 days after receiving the written response of the Plan Administrator to an appeal, or (ii) 365 days after an applicant's original application for benefits (bearing in mind that if you do not receive a response to your appeal by the deadline outlined above, then you may treat your appeal as having been denied). 08/ PSA

36 YOUR RIGHTS AS A PLAN PARTICIPANT As a participant in this Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA) as follows: Receive Information About Your Plan and Benefits Examine, without charge, at the Plan Administrator s office and at other specified locations, all documents governing the Plan, including insurance contracts and collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series) that is filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. Obtain, upon written request to the Plan Administrator, copies of all documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series), and an updated summary plan description. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report. Obtain a statement telling you whether you have a right to receive a pension at normal retirement age (age 65) and if so, what your benefit would be at normal retirement age if you stop working under the Plan now. If you do not have a right to a pension, the statement will tell you how many more years you have to work to get a right to a pension. This statement must be requested in writing and is not required to be given more than once every 12 months. The Plan must provide the statement free of charge. Prudent Action by Plan Fiduciaries In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or exercising your rights under ERISA. Enforce Your Rights If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Plan s decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in a federal court. If it should happen that Plan fiduciaries misuse the Plan s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. 08/ PSA

37 Help With Your Questions If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance with obtaining documents from the Plan Administrator, you should contact: The nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory; or The Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. 08/ PSA

38 ADDITIONAL INFORMATION Outlined below is additional information about the PSA and the persons who have assumed responsibility for its operation. Plan Name: Plan Sponsor s Employer Identification Number: Occidental Petroleum Corporation Savings Plan Plan Number: 001 Plan Year Ends: December 31 Plan Administrative Services Provided by: Plan Administrator: Occidental Petroleum Corporation OxyLink Service Center 4500 S. 129 th East Avenue Tulsa, OK (918) Occidental Petroleum Corporation Pension and Retirement Plan Administrative Committee 5 Greenway Plaza, Suite 110 Houston, Texas (713) Plan Sponsor: Occidental Petroleum Corporation 5 Greenway Plaza, Suite 110 Houston, Texas Employers: Named Fiduciary: Plan Trustee: Plan Type: Address for Legal Process: Occidental Petroleum Corporation and participating Affiliates as listed in APPENDIX B The Occidental Petroleum Corporation Pension and Retirement Plan Administrative Committee (same address as above) The Bank of New York Mellon Trust Company, N.A. 700 S. Flower Street, Suite 200 Los Angeles, California The PSA is intended to be a tax-qualified defined contribution plan containing a qualified cash or deferred arrangement and employee stock ownership plan. Service for legal process related to the PSA may be made upon the Plan Trustee or the Plan Administrator at the addresses listed above. 08/ PSA

39 Funding: Employees may make before-tax contributions (including, if eligible, catch-up contributions) and may also make after-tax contributions. These contributions are described in the section entitled Your Contributions to the PSA. The Plan sponsor makes matching contributions in the section entitled Oxy s Matching Company Contributions. 08/ PSA

40 LIST OF ATTACHED APPENDICES Current versions of these appendices are available online at OxyLink Online (oxylink.oxy.com) Appendix Description Dated A Maximum Contribution Percentages, Matching Company Contributions and Government Limits January 2013 B Participating Affiliates January 2013 C Fund Descriptions August 2013 D Notice of Federal and State Tax Information for Plan Payments January 2013 E THUMS Long Beach Company Savings and Investment Plan Merger January / PSA

41 APPENDIX A PERSONAL SAVINGS ACCOUNT (PSA) MAXIMUM CONTRIBUTION PERCENTAGES, MATCHING COMPANY CONTRIBUTIONS AND GOVERNMENT LIMITS (As of January 2013) This Appendix A constitutes part of a prospectus covering securities that have been registered under the Securities Act of PSA Contribution Table If Your Annual Base Pay is: Your Employee Contribution Percentage* on Base Pay is: Under $115, to 30.0% $115,000, up to $255,000 annual compensation limit 1.0 to 15.0% If You Receive an Annual Bonus: Your Employee Contribution Percentage* on Annual Bonus is: First $100,000 of eligible Annual Bonus 1.0 to 6.0% *Employee Contribution Percentage is combined before-tax and after-tax Matching Company Contribution Rate Table (up to the first 6% of Earnings contributed) (As of January 1, 2013) Salaried and Hourly Non-Represented Employees 100% Represented Employees United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local hired before January 1, 2009 United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local hired after December 31, 2008 United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local % 50% 100% International Brotherhood of Teamsters, Local % Niagara Hooker Employees Union 100% United Food and Commercial Workers, Local 72D hired before January 1, % United Food and Commercial Workers, Local 72D hired, re-hired or transferred after December 31, 2008 International Association of Machinists and Aerospace Workers, Lodge 27 hired before January 1, 2010 International Association of Machinists and Aerospace Workers, Lodge 27 hired, re-hired or transferred after December 31, % 100% 50% 08/2013 A-1 PSA

42 United Association of Journeyman and Apprentices of the Plumbing and Pipefitting Industry, Local 502 hired before January 1, 2010 United Association of Journeyman and Apprentices of the Plumbing and Pipefitting Industry, Local 502 hired, re-hired or transferred after December 31, 2009 International Brotherhood of Electrical Workers, Local 369 hired before January 1, 2010 International Brotherhood of Electrical Workers, Local 369 hired, re-hired or transferred after December 31, 2009 United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local % 50% 100% International Union of Operating Engineers, AFL-CIO, Local % International Union of Operating Engineers, AFL-CIO, Local % Teamsters Union, Affiliated with International Brotherhood of Teamsters, Local % United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local % 50% 75% Matching Company Contribution Rate Table (up to the first 4% of Earnings contributed) (As of January 1, 2013) Represented Employees United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local % 2013 Government Limits Table Regular Before-Tax Contributions $17,500 Age 50+ Catch-Up Contributions $5,500 Maximum Earnings Taken Into Account for PSA $255,000 (annual compensation limit) Maximum Contribution Limit (to all defined contribution plans) $51,000 08/2013 A-2 PSA

43 APPENDIX B PERSONAL SAVINGS ACCOUNT (PSA) PARTICIPATING AFFILIATES (As of January 2013) This Appendix B constitutes part of a prospectus covering securities that have been registered under the Securities Act of Centurion Pipeline GP, Inc. Glenn Springs Holdings, Inc. INDSPEC Chemical Corporation Occidental Chemical Corporation Occidental Energy Marketing, Inc. Occidental Energy Transportation LLC Occidental Energy Ventures Corp. Occidental International Corporation Occidental of Elk Hills, Inc. Occidental Oil and Gas Corporation OXY USA Inc. Phibro Services LLC OXY Support Services, LLC Oxy Midstream Strategic Development, LLC Oxy Energy Services, Inc. OXY Inc. 08/2013 B-1 PSA

44 APPENDIX C PERSONAL SAVINGS ACCOUNT (PSA) FUND DESCRIPTIONS (As of August 2013) This Appendix C constitutes part of a prospectus covering securities that have been registered under the Securities Act of Individual descriptions of each current PSA investment Fund, as of August, 2013 are shown below. The current PSA investment Funds are also available online at OxyLink in the document called PSA Fund Descriptions. This document is updated quarterly and when necessary. Stable Value Fund This fund is designed to provide stable, predictable returns. Your contributions are invested in fixed income securities and are paired with stable value investment contracts which guarantee the repayment of principal and accumulated interest. It is important to note that the stable value investment contracts are not guaranteed by the federal government or by Oxy. The guarantee is based solely on the ability of the contract providers to fulfill their obligations under these contracts. As a participant in this fund, you will earn a return that reflects the combined earnings for all investment contracts held under the fund. Direct Transfer Policy. Direct transfers from the Stable Value Fund to the Inflation-Protected Securities Fund are not permitted. In addition, 90 days must elapse between transfers from the Stable Value Fund into any other fund before that amount can be transferred to the Inflation-Protected Securities Fund. A more detailed explanation is available online at oxylink.oxy.com > Forms, Publications & Info > Retirement and Savings > Investment Funds Information > Inflation-Protected Securities Fund. This fund is individually managed on behalf of the PSA by INVESCO of Louisville, Kentucky. An individual prospectus is not published for this fund. Bond Fund The Fund seeks maximum total return, consistent with preservation of capital and prudent investment management. The Fund seeks to achieve its investment objective by investing under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. Fixed Income Instruments include bonds, debt securities and other similar instruments issued by various U.S. and non-u.s. public- or private-sector entities. The average portfolio duration of this Fund normally varies within two years (plus or minus) of the portfolio duration of the securities comprising the Barclays U.S. Aggregate Index, as calculated by Pacific Investment Management Company LLC ( PIMCO ), which as of June 30, 2012 was 4.58 years. Duration is a measure used to determine the sensitivity of a security s price to changes in interest rates. The longer a security s duration, the more sensitive it will be to changes in interest rates. The Fund invests primarily in investment-grade debt securities, but may invest up to 10% of its total assets in high yield securities ( junk bonds ) rated B or higher by Moody s Investors Service, Inc. ( Moody s ), or equivalently rated by Standard & Poor s Ratings Services ( S&P ) or Fitch, Inc. ( Fitch ), or, if unrated, determined by Pacific Investment Management Company LLC ( PIMCO ) to be of comparable quality (except that within such limitation, the Fund may invest in mortgage-related securities rated below B). The Fund may invest up to 30% of its total assets in securities denominated in foreign currencies, and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers. The Fund may invest up to 15% of its total assets in securities and instruments that are economically tied to emerging market countries. The Fund will normally limit its foreign currency exposure (from non-u.s. dollar-denominated securities or currencies) to 20% of its total assets. 08/2013 C-1 PSA

45 The Fund may invest, without limitation, in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities, subject to applicable law and any other restrictions described in the Fund s prospectus or Statement of Additional Information. The Fund may purchase or sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may invest up to 10% of its total assets in preferred stock, convertible securities and other equity-related securities. The Fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). The total return sought by the Fund consists of income earned on the Fund s investments, plus capital appreciation, if any, which generally arises from decreases in interest rates, foreign currency appreciation, or improving credit fundamentals for a particular sector or security. This fund is invested in the PIMCO Total Return Fund (Institutional Class Shares) (Ticker Symbol: PTTRX), an institutional mutual fund managed by Pacific Investment Management Company (PIMCO) of Newport Beach, California. Inflation-Protected Securities Fund This fund seeks to provide inflation protection and income consistent with investment in inflation-indexed securities. The fund is actively managed and invests at least 80% of its assets in inflation-indexed bonds issued by the U.S. government, its agencies and instrumentalities, and corporations. The fund may invest up to 20% of assets in nominal Treasury and corporate bonds, although this option is generally not used. At a minimum, all bonds purchased by the fund will be rated investment-grade or, if unrated, will be considered by the advisor to be investment grade. The average maturity is expected to be in the range of 7 to 20 years. This fund is an option for investors seeking a bond fund that also provides inflation protection. It offers portfolio diversification due to its low correlations with nominal Treasury bonds and stocks. The fund may invest in derivative investments including futures contracts, fixed income options, interest rate swaps, total return swaps, credit default swaps or other derivatives. Direct Transfer Policy. Direct transfers from the Stable Value Fund to the Inflation-Protected Securities Fund are not permitted. In addition, 90 days must elapse between transfers from the Stable Value Fund into any other fund before that amount can be transferred to the Inflation-Protected Securities Fund. A more detailed explanation is available online at oxylink.oxy.com > Forms, Publications & Info > Retirement and Savings > Investment Funds Information > Inflation-Protected Securities Fund. Frequent-Trading Policy. Participants who transfer balances out of the Inflation-Protected Securities Fund will not be permitted to transfer any balances back into the Inflation-Protected Securities Fund for 60 days. This fund is invested in the Vanguard Inflation-Protected Securities Fund Institutional Class (Ticker Symbol: VIPIX), an institutional mutual fund managed by The Vanguard Group of Valley Forge, Pennsylvania. High Yield Bond Fund The Fund seeks maximum total return, consistent with preservation of capital and prudent investment management. The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in a diversified portfolio of high yield securities ( junk bonds ), which may be represented by forwards or derivatives such as options, futures contracts or swap agreements, rated below investment grade by Moody s Investors Services, Inc. ( Moody s ), or equivalently rated by Standard & Poor s Ratings Services ( S&P ) or Fitch, Inc. ( Fitch ) or, if unrated, determined by Pacific Investment Management Company LLC ( PIMCO ) to be of comparable quality. The Fund may invest up to 20% of its total assets in securities rated Caa or below by Moody s, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. The remainder of the Fund s assets may be invested in investment grade Fixed Income Instruments. Fixed Income Instruments include bonds, debt securities and other similar instruments issued by various U.S. and non-u.s. public- or private-sector entities. The average portfolio duration of this Fund normally varies within one year (plus or minus) of the portfolio duration of the securities comprising the BofA Merrill Lynch U.S. High Yield BB-B 08/2013 C-2 PSA

46 Rated Constrained Index, as calculated by PIMCO, which as of June 30, 2012 was 3.62 years. Duration is a measure used to determine the sensitivity of a security s price to changes in interest rates. The longer a security s duration, the more sensitive it will be to changes in interest rates. The Fund may invest up to 20% of its total assets in securities denominated in foreign currencies and may invest without limit in U.S. dollar denominated securities of foreign issuers. The Fund will normally limit its foreign currency exposure (from non-u.s. dollar denominated securities or currencies) to 20% of its total assets. The Fund may invest up to 15% of its total assets in securities and instruments that are economically tied to emerging market countries. The Fund may invest, without limitation, in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities, subject to applicable law and any other restrictions described in the Fund s prospectus or Statement of Additional Information. The Fund may purchase or sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). The total return sought by the Fund consists of income earned on the Fund s investments, plus capital appreciation, if any, which generally arises from decreases in interest rates, foreign currency appreciation, or improving credit fundamentals for a particular sector or security. The Fund may also invest up to 10% of its total assets in preferred stocks. The value of the fund's fixed income securities holdings responds to economic developments, especially changes in interest rates, as well as to perceptions of the creditworthiness of individual issuers. The fund's investments in high yield securities expose it to a substantial degree of credit risk. These investments are considered speculative under traditional investment standards. Prices of high yield securities will rise and fall primarily in response to changes in the issuer's financial health, although changes in market interest rates also will affect prices. Generally, fixed income securities decrease in value as interest rates rise and vice versa. High yield securities may experience reduced liquidity and sudden and substantial decreases in price during certain market conditions. This fund is invested in the PIMCO High Yield Fund (Ticker Symbol: PHIYX), an institutional mutual fund managed by Pacific Investment Management Company (PIMCO) of Newport Beach, California. Global Convertible Bond Fund This fund invests in convertible securities such as convertible bonds, convertible preferred stocks, synthetic and structured convertible securities and bonds or preferred stock with warrants issued by U.S. and foreign companies. An allocation of 25% to 75% of the fund assets shall be invested in foreign securities. Convertible bonds are debt instruments that are issued by companies to generate capital. The convertible bonds can be converted to the issuing company s stock at the manager s option. Depending on the particular issue, these hybrid investments can offer some of the upside potential returns of stocks and the lower volatility of bonds. Convertible bonds can potentially provide higher risk-adjusted total returns relative to other asset classes. The fixed income portion of a convertible bond provides downside protection, while the underlying common stock s performance can generate significant upside returns; in other words, stock-like return with bond-like risk. The strategy seeks to select issues that will return 75-85% of the upside if the underlying stock rises and expose us to no more than 50% of the downside if the stock declines. The portfolio may use derivatives for currency hedging purposes and is expected to be fully hedged to U.S. dollars at all times. The portfolio typically maintains a weighted-average credit quality of BB. This fund is individually managed exclusively for the PSA by Advent Capital Management LLC of New York, New York. An individual prospectus is not published for this fund. Diversified Balanced Fund This fund is a balanced growth and income fund that seeks regular income, conservation of principal and an opportunity for long-term growth of principal and income. The fund invests in a diversified portfolio of common stocks, preferred stocks and fixed-income securities. Stocks include those of companies that, in the manager s opinion, are temporarily undervalued by the stock market but have a favorable outlook for long-term growth. Fixedincome securities primarily include investment grade: U.S. government obligations, mortgage and asset-backed securities, corporate and municipal bonds, collateralized mortgage obligations and other fixed income securities. To 08/2013 C-3 PSA

47 a lesser extent, the fund may also invest in below investment-grade fixed income securities, commonly referred to as high-yield or junk bonds, if they have a minimum rating of B by Moody s, Standard & Poor s (S&P) or Fitch, or are equivalently rated by any nationally recognized statistical rating organization. The fund may also invest in interest rate derivatives such as U.S. Treasury futures. Under normal circumstances no more than 75% (and no less than 25%) of total assets will be invested in equity securities. The fund may also invest up to 20% of its total assets in U.S. dollar-denominated securities of foreign issuers traded in the U.S. that are not included in the S&P 500. Dodge & Cox of San Francisco, California manages the fund, which is invested in its Balanced Fund (Ticker Symbol: DODBX), a mutual fund. S&P 500 Index Fund This fund employs an indexing investment approach designed to track the performance of the Standard & Poor s 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Frequent-Trading Policy. Participants who transfer balances out of the S&P 500 Index Fund will not be permitted to transfer any balances back into the S&P 500 Index Fund for 60 days. This fund is invested in the Vanguard Institutional Index Fund, Institutional Plus Class, (Ticker Symbol: VIIIX), an institutional mutual fund managed by The Vanguard Group of Valley Forge, Pennsylvania. Large Cap Value Fund This fund seeks long-term total return and current income by investing in dividend-paying stocks that fund management believes will increase in value over the long term, as well as provide current income. Under normal circumstances, the fund will invest at least 80% of its assets in equity securities and at least 80% of its assets in dividend paying securities. The fund may invest in securities of companies with any market capitalization, but will generally focus on large cap securities. The fund may also invest in convertible securities and nonconvertible preferred stock. The fund may invest up to 25% of its total assets in securities of foreign issuers from any country and may invest in securities denominated in both U.S. dollars and non-u.s. dollar currencies. This fund is invested in the BlackRock Equity Dividend Fund (Ticker Symbol: MADVX), an institutional mutual fund managed by BlackRock Investments, LLC of New York, New York. Large Cap Growth Fund I This fund seeks capital appreciation by investing in securities of companies whose value the manager believes is not fully recognized by the public. The fund s assets are invested primarily in common stocks. Currently, the fund is invested primarily in large cap growth stocks. At any given time, the fund may buy growth stocks or value stocks, or a combination of both types. In buying and selling securities for the fund, the manager relies on fundamental analysis of each issuer and its potential for success in light of factors including its financial condition, earnings outlook, strategy, management, industry position, and economic and market conditions. The fund may invest in securities of foreign issuers in addition to securities of domestic issuers. This fund is invested in the Fidelity Contrafund (Ticker Symbol: FCNTX), a mutual fund managed by Fidelity Management & Research Company of Boston, Massachusetts. Large Cap Growth Fund II This fund seeks capital appreciation by investing in securities of companies the manager believes have above average earnings growth potential compared to other companies. The fund normally invests at least 80% of its assets in stocks. Stocks include common stocks, preferred stocks, securities convertible into stocks, equity interests in real estate investment trusts (REITs), and depositary receipts for such securities. The fund manager may invest the 08/2013 C-4 PSA

48 fund s assets in companies of any size, but generally focuses on companies with large capitalizations. The manager may invest the fund s assets in foreign securities. The fund manager uses a bottom-up investment approach to buying and selling investments for the fund. Investments are selected primarily based on fundamental analysis of individual issuers. Quantitative models that systematically evaluate issuers may also be considered. Frequent-Trading Policy. Participants who make two transfers out of the fund during a calendar quarter, each in an amount of $5,000 or more, will not be permitted to transfer any balances back into the Large Cap Growth Fund II during that calendar quarter. This fund is invested in the MFS Massachusetts Investors Growth Stock Fund Institutional Class (Ticker Symbol: MIGNX), an institutional mutual fund managed by Massachusetts Financial Services Company (MFS) of Boston Massachusetts. Mid Cap Index Fund This fund employs an indexing investment approach designed to track the performance of the Morgan Stanley Capital International (MSCI ) US Mid Cap 450 Index, a broadly diversified index of stocks of medium-sized U.S. companies. The fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Frequent-Trading Policy. Participants who transfer balances out of the Mid Cap Index Fund will not be permitted to transfer any balances back into the Mid Cap Index Fund for 60 days. This fund is invested in the Vanguard Mid Cap Index Fund Institutional Plus Class (Ticker Symbol: VMCPX), an institutional mutual fund managed by The Vanguard Group of Valley Forge, Pennsylvania. Small Cap Value Fund This fund seeks to maximize total returns by investing in equity securities of small capitalization companies considered to be undervalued by the market. The objective of the fund is to outperform the Russell 2500 Index over full market cycles. The fund holds 60 to 125 of the most attractively valued stocks within broad sectors by using rigorous research to identify U.S. companies priced below their long-term earnings power. This fund is permitted to use stock index options and futures as a temporary method of investing new cash flow into the fund. This fund is individually managed exclusively for the PSA by Alliance Bernstein of New York, New York. An individual prospectus is not published for this fund. International Equity Fund This fund is an international equity fund that seeks long-term growth of capital and income by investing primarily in common stocks of companies in developed countries located outside the U.S. Normally, the fund invests at least 80% of its total assets in stocks in at least 10 foreign markets and invests the majority of its total assets in companies that pay dividends or repurchase their shares. There is no limit on investments in any one country. The fund may invest up to 10% of its total assets in companies in emerging markets. When investing the fund s assets, the manager follows a value style. This means that the manager buys stocks that it believes are currently undervalued by the market and thus have a lower price than their true worth. The fund may also invest in derivatives including forward currency contracts, futures, swaps and options. There are significant associated risks when investing in the securities of foreign companies. These include, but are not limited to, market and selection risk, foreign market risk, currency exchange rate risk, liquidity risk and political risk. This fund is invested in the Causeway International Value Fund (Ticker Symbol: CIVIX), an institutional mutual fund managed by Causeway Capital Management LLC of Los Angeles, California. 08/2013 C-5 PSA

49 REIT Index Fund The fund seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of a benchmark index that measures the performance of publicly traded equity Real Estate Investment Trusts (REITs). The fund employs an indexing investment approach designed to track the performance of the Morgan Stanley Capital International (MSCI) US REIT Index. The fund attempts to replicate the index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Frequent-Trading Policy. Participants who transfer balances out of the REIT Index Fund will not be permitted to transfer any balances back into the REIT Index Fund for 60 days. This fund is invested in the Vanguard REIT Index Fund Institutional Class (Ticker Symbol: VGSNX), an institutional mutual fund managed by The Vanguard Group of Valley Forge, Pennsylvania. Oxy Stock Fund The PSA Trustee invests your contributions, Oxy s Matching Company Contributions, dividends on Oxy shares held in the fund and short-term investment income in shares of Oxy common stock in this very aggressive risk Oxy Stock Fund. To meet liquidity requirements, the Trustee holds 1-3% of the fund in the BNY Mellon EB Temporary Investment Fund, a collective trust fund that is invested in short-term investment instruments. Shares may be purchased in the open market or directly from Oxy or any other individual. Currently all shares are purchased from Oxy and no commissions are paid on Oxy common stock purchases. As of December 31, 2012, 919,199 shares of Oxy common stock were available for purchase by the PSA Trustee directly from Oxy. If the total purchase price is $10 million or more, shares will be purchased at a per share price that does not exceed the average of the closing sales prices for the last five trading days preceding the date of the purchase. If the total purchase price is less than $10 million, shares will be purchased at a per share price that does not exceed the average of the closing sales prices for the last three trading days preceding the date of the purchase. In both cases, the per share price may not exceed the average closing sales prices reported by the consolidated transaction reporting system established pursuant to Section 11A(c) of the Securities Exchange Act of Voting Company Stock. Your balance under the Oxy Stock Fund makes you a part-owner of Occidental Petroleum Corporation (OPC). As a stockholder under the PSA, you are entitled to full voting rights for your pro rata portion of shares held in the Oxy Stock Fund. Prior to any meeting of OPC s stockholders, the PSA Trustee will provide you with the information provided to other stockholders and a form by which you may instruct the PSA Trustee how to vote your shares. If the PSA Trustee does not receive your instructions, the PSA Trustee will vote your shares held under the PSA in accordance with instructions from the PSA s Administrative Committee. Your voting instructions are held in confidence and may not be divulged to OPC or any Affiliate. Tender Rights. You are also entitled to tender rights for your pro rata portion of shares held in the Oxy Stock Fund. In the event of a tender or exchange offer for shares of Company stock held by the Trustee in the Oxy Stock Fund, the PSA Trustee will provide you with the information it has regarding the tender offer and how you may direct the Trustee, in writing, to tender or not to tender some or all of the shares that you hold in the Oxy Stock Fund. The PSA Trustee will tender only the shares that you direct to be tendered. If the PSA Trustee does not receive direction from you, none of your shares will be tendered. Your individual tender instructions are held in confidence. Only the total number of shares tendered on behalf of the Oxy Stock Fund will be disclosed. The fund s investment manager is the Plan s Trustee, The Bank of New York Mellon of New York, New York. An individual prospectus is not available for this fund. 08/2013 C-6 PSA

50 APPENDIX D PERSONAL SAVINGS ACCOUNT (PSA) NOTICE OF FEDERAL AND STATE TAX INFORMATION FOR PLAN PAYMENTS (As of January 1, 2013) NOTICE OF FEDERAL AND STATE TAX INFORMATION FOR PSA OR PRA PLAN PAYMENTS This Appendix D constitutes part of a prospectus covering securities that have been registered under the Securities Act of YOUR ROLLOVER OPTIONS This notice explains how you can continue to defer federal income tax on your retirement savings under the Occidental Petroleum Corporation (Oxy) Savings Plan (the "PSA" or "Plan") and/or the Oxy Retirement Plan (the "PRA" or "Plan"). You are receiving this notice because all or a portion of a payment you are receiving from the Plan is eligible to be rolled over to an IRA or an employer plan. This notice is intended to help you decide whether to do such a rollover. Under the PSA and PRA, generally, you may choose to delay the commencement of your benefit until the end of the year in which you attain age 70 ½, at which time you must take a full distribution. Please see the Summary Plan Documents for additional information. If you have additional questions after reading this notice, you may call the Plan Administrator through the OxyLink Employee Service Center ( OxyLink ) at (or if you call from outside the U.S. or Canada). Rules that apply to most payments from a plan are described in the General Information About Rollovers section. Special rules that only apply in certain circumstances are described in the Special Rules and Options section. REQUIRED 30-DAY WAITING PERIOD IRS regulations require that you have at least 30 days from the date of this notice to make a decision about the payment of all or a portion of your PSA or PRA benefits. Thus, unless you waive your right to this 30-day waiting period, the Plan Administrator will not process your payment request before the 30 th day after the date of this notice. You can waive this 30-day waiting period and receive a payment from the PSA or PRA within this 30-day waiting period by signing and dating the Signature section of the payment request form and mailing your completed form to OxyLink within the 30-day period. Please note that your election to waive the 30-day waiting period does not obligate the Plan Administrator to make payment to you within 30 days. The time in which a payment is made depends not only on whether or not you waive the 30-day waiting period, but also on the form of payment that you elect and when your payment request form is received by OxyLink and approved by the Plan Administrator. You may revoke your payment election in writing until your payment is processed or until the expiration of a seven-day period that begins the day following the date of this notice, whichever is later. GENERAL INFORMATION ABOUT ROLLOVERS How can a rollover affect my taxes? You will be taxed on a payment from the Plan if you do not roll it over. If you are under age 59½ and do not do a rollover, you will also have to pay a 10% additional income tax on early distributions (unless an exception applies). However, if you do a rollover, you will not have to pay tax until you receive payments later, and the 10% additional income tax will not apply if those payments are made after you are age 59½ (or if an exception applies). Where may I roll over the payment? You may roll over the payment to either an IRA (an individual retirement account or individual retirement annuity) or an employer plan (a tax-qualified plan, section 403(b) plan, or governmental section 457(b) plan) that will accept the rollover. The rules of the IRA or employer plan that holds the rollover will determine your investment options, fees, and rights to payment 08/2013 D-1 PSA

51 from the IRA or employer plan (for example, no spousal consent rules apply to IRAs and IRAs may not provide loans). Further, the amount rolled over will become subject to the tax rules that apply to the IRA or employer plan. How do I do a rollover? There are two ways to do a rollover. You can do either a direct rollover or a 60-day rollover. If you do a direct rollover, the Plan will make the payment directly to your IRA or an employer plan. A direct payment includes a check distributed to you but made payable to the IRA or employer plan for your benefit. You should contact the IRA sponsor or the administrator of the employer plan for information on how to do a direct rollover. If you do not do a direct rollover, you may still do a rollover by making a deposit into an IRA or eligible employer plan that will accept it. You will have 60 days after you receive the payment to make the deposit. If you do not do a direct rollover, the Plan is required to withhold 20% of the payment for federal income taxes (up to the amount of cash and property received other than employer stock). This means that, in order to roll over the entire payment in a 60-day rollover, you must use other funds to make up for the 20% withheld. If you do not roll over the entire amount of the payment, the portion not rolled over will be taxed and will be subject to the 10% additional income tax on early distributions if you are under age 59½ (unless an exception applies). How much may I roll over? If you wish to do a rollover, you may roll over all or part of the amount eligible for rollover. Any payment from the Plan is eligible for rollover, except: Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the lives or joint life expectancy of you and your beneficiary) Required minimum distributions after age 70½ (or after death) Dividends paid on Oxy Stock held in the Oxy Stock Fund Corrective distributions of contributions that exceed tax law limitations Loans treated as deemed distributions (for example, a PSA loan in default when your employment ends) The Plan Administrator can tell you what portion of a payment is eligible for rollover. If I don t do a rollover, will I have to pay the 10% additional income tax on early distributions? If you are under age 59½, you will have to pay the 10% additional income tax on early distributions for any payment from the Plan (including amounts withheld for income tax) that you do not roll over, unless one of the exceptions listed below applies. This tax is in addition to the regular income tax on the payment not rolled over. The 10% additional income tax does not apply to the following payments from the Plan: Payments made after you separate from service if you will be at least age 55 in the year of the separation Payments that start after you separate from service if paid at least annually in equal or close to equal amounts over your life or life expectancy (or the lives or joint life expectancy of you and your beneficiary)* Payments made due to disability Payments after your death Payments of dividends on Oxy Stock held in the Oxy Stock Fund Corrective distributions of contributions that exceed tax law limitations Payments made directly to the government to satisfy a federal tax levy Payments made under a qualified domestic relations order (QDRO) Payments up to the amount of your deductible medical expenses Certain payments made while you are on active duty if you were a member of a reserve component called to duty after September 11, 2001, for more than 179 days If I do a rollover to an IRA, will the 10% additional income tax apply to early distributions from the IRA? If you receive a payment from an IRA when you are under age 59½, you will have to pay the 10% additional income tax on early distributions from the IRA, unless an exception applies. In general, the exceptions to the 10% additional income tax for early distributions from an IRA are the same as the exceptions listed above for early distributions from a plan. However, there are a few differences for payments from an IRA, including: There is no exception for payments after separation from service that are made after age 55. The exception for qualified domestic relations orders (QDROs) does not apply (although a special rule applies under which, as part of a divorce or separation agreement, a tax-free transfer may be made directly to an IRA of a spouse or former spouse). 08/2013 D-2 PSA

52 The exception for payments made at least annually in equal or close to equal amounts over a specified period applies without regard to whether you have had a separation from service. There are additional exceptions for (1) payments for qualified higher education expenses, (2) payments up to $10,000 used in a qualified first-time home purchase, and (3) payments after you have received unemployment compensation for 12 consecutive weeks (or would have been eligible to receive unemployment compensation but for self-employed status). Will I owe State income taxes? See the Notice of State Tax Information below regarding State income tax rules (including withholding rules). SPECIAL RULES AND OPTIONS If your payment includes after-tax contributions After-tax contributions included in a payment are not taxed. If a payment is only part of your benefit, an allocable portion of your after-tax contributions is generally included in the payment. (If you have pre-1987 after-tax contributions maintained in a separate account, a special rule may apply to determine whether the after-tax contributions are included in a payment.) You may roll over to an IRA a payment that includes after-tax contributions through either a direct rollover or a 60-day rollover. You must keep track of the aggregate amount of the after-tax contributions in all of your IRAs (in order to determine your taxable income for later payments from the IRAs). If you do a direct rollover of only a portion of the amount paid from the Plan and a portion is paid to you, each of the payments will include an allocable portion of the after-tax contributions. If you do a 60-day rollover to an IRA of only a portion of the payment made to you, the after-tax contributions are treated as rolled over last. For example, assume you are receiving a complete distribution of your benefit which totals $12,000, of which $2,000 is after-tax contributions. In this case, if you roll over $10,000 to an IRA in a 60-day rollover, no amount is taxable because the $2,000 amount not rolled over is treated as being after-tax contributions. You may roll over to an employer plan all of a payment that includes after-tax contributions, but only through a direct rollover (and only if the receiving plan separately accounts for after-tax contributions and is not a governmental section 457(b) plan). You can do a 60-day rollover to an employer plan of part of a payment that includes after-tax contributions, but only up to the amount of the payment that would be taxable if not rolled over. If you miss the 60-day rollover deadline Generally, the 60-day rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under certain extraordinary circumstances, such as when external events prevented you from completing the rollover by the 60- day rollover deadline. To apply for a waiver, you must file a private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). If your payment includes Oxy Stock that you do not roll over (May Apply to PSA only) If you do not do a rollover, you can apply a special rule to payments of employer stock (Oxy Stock) that are either attributable to after-tax contributions or paid in a lump sum after separation from service (or after age 59½, disability, or the participant s death). Under the special rule, the net unrealized appreciation on the Oxy Stock will not be taxed when distributed from the PSA and will be taxed at capital gain rates when you sell the stock. Net unrealized appreciation is generally the increase in the value of the stock after it was acquired by the Plan. If you do a rollover for a payment that includes Oxy Stock (for example, by selling the stock and rolling over the proceeds within 60 days of the payment), the special rule relating to the distributed employer stock will not apply to any subsequent payments from the IRA or employer plan. The Plan Administrator can tell you the amount of any net unrealized appreciation. If you have an outstanding loan that is being offset (May Apply to PSA only) If you have an outstanding loan from the PSA, your plan benefit may be offset by the amount of the loan, typically when your employment ends. The loan offset amount is treated as a distribution to you at the time of the offset and will be taxed (including the 10% additional income tax on early distributions, unless an exception applies) unless you do a 60-day rollover in the amount of the loan offset to an IRA or employer plan. If you were born on or before January 1, 1936 If you were born on or before January 1, 1936, and receive a lump sum distribution that you do not roll over, special rules for calculating the amount of the tax on the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income. If you roll over your payment to a Roth IRA If you roll over the payment to a Roth IRA, a special rule applies under which the amount of the payment rolled over (reduced by any after-tax amounts) will be taxed. However, the 10% additional income tax on early distributions will not apply (unless you 08/2013 D-3 PSA

53 take the amount rolled over out of the Roth IRA within five years, counting from January 1 of the year of the rollover). For payments from the Plan during 2010 that are rolled over to a Roth IRA, the taxable amount can be spread over a two-year period starting in If you roll over the payment to a Roth IRA, later payments from the Roth IRA that are qualified distributions will not be taxed (including earnings after the rollover). A qualified distribution from a Roth IRA is a payment made after you are age 59½ (or after your death or disability, or as a qualified first-time homebuyer distribution of up to $10,000) and after you have had a Roth IRA for at least five years. In applying this five-year rule, you count from January 1 of the year for which your first contribution was made to a Roth IRA. Payments from the Roth IRA that are not qualified distributions will be taxed to the extent of earnings after the rollover, including the 10% additional income tax on early distributions (unless an exception applies). You do not have to take required minimum distributions from a Roth IRA during your lifetime. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). You cannot roll over a payment from the Plan to a designated Roth account in an employer plan. SURVIVING SPOUSES, ALTERNATE PAYEES, AND OTHER BENEFICIARIES Payments after death of the participant If you receive a distribution after the participant s death that you do not roll over, the distribution will generally be taxed in the same manner described elsewhere in this notice. However, the 10% additional income tax on early distributions does not apply and the special rule described under the section If you were born on or before January 1, 1936 applies only if the participant was born on or before January 1, If you are a surviving spouse If you receive a payment from the Plan as the surviving spouse of a deceased participant, you have the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to do a rollover to an IRA, you may treat the IRA as your own or as an inherited IRA. An IRA you treat as your own is treated like any other IRA of yours, so that payments made to you before you are age 59½ will be subject to the 10% additional income tax on early distributions (unless an exception applies) and required minimum distributions from your IRA do not have to start until after you are age 70½. If you treat the IRA as an inherited IRA, payments from the IRA will not be subject to the 10% additional income tax on early distributions. However, if the participant had started taking required minimum distributions, you will have to receive required minimum distributions from the inherited IRA. If the participant had not started taking required minimum distributions from the Plan, you will not have to start receiving required minimum distributions from the inherited IRA until the year the participant would have been age 70½. If you are a surviving beneficiary other than a spouse If you receive a payment from the Plan because of the participant s death and you are a designated beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to an inherited IRA. Payments from the inherited IRA will not be subject to the 10% additional income tax on early distributions. You will have to receive required minimum distributions from the inherited IRA. Payments under a qualified domestic relations order If you are the spouse or former spouse of the participant who receives a payment from the Plan under a qualified domestic relations order (QDRO), you generally have the same options the participant would have (for example, you may roll over the payment to your own IRA or an eligible employer plan that will accept it). Payments under the QDRO will not be subject to the 10% additional income tax on early distributions. If you are a nonresident alien If you are a nonresident alien and you do not do a direct rollover to a U.S. IRA or U.S. employer plan, instead of withholding 20%, the Plan is generally required to withhold 30% of the payment for federal income taxes. If the amount withheld exceeds the amount of tax you owe (as may happen if you do a 60-day rollover), you may request an income tax refund by filing Form 1040NR and attaching your Form 1042-S. See Form W-8BEN for claiming that you are entitled to a reduced rate of withholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for Aliens, and IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. Other special rules If a payment is one in a series of payments for less than 10 years, your choice whether to make a direct rollover will apply to all later payments in the series (unless you make a different choice for later payments). If your payments for the year are less than $200, the Plan is not required to allow you to do a direct rollover and is not required to withhold for federal income taxes. However, you may do a 60-day rollover. 08/2013 D-4 PSA

54 FOR MORE INFORMATION You may wish to consult with the Plan Administrator for questions about the Plan, or with a professional tax advisor for tax advice, before taking a payment from the Plan. You may call the Plan Administrator through OxyLink at (or if you call from outside the U.S. or Canada). Also, you can find more detailed information on the federal tax treatment of payments from employer plans in: IRS Publication 575, Pension and Annuity Income; IRS Publication 590, Individual Retirement Arrangements (IRAs); and IRS Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). These publications are available from a local IRS office, on the web at or by calling TAX-FORM. NOTICE OF STATE TAX INFORMATION The portion of a Plan payment that represents a return of nontaxable after-tax contributions is not taxable. However, the taxable portion of a PSA or PRA payment in excess of $200 may be subject to state income taxation except if you reside in AK, FL, NV, NH, SD, TN, TX, WA or WY. Consult a tax advisor or your state taxing authority for more information about the state income tax requirements where you reside. If you roll over nontaxable after-tax contributions, also determine if your state of residence permits you to defer paying state income tax on the earnings on after-tax contributions that you elect to roll over. In certain states, a taxable Plan payment in excess of $200 that is not directly rolled over to a traditional IRA or another employer's qualified plan also is subject to state income tax withholding (SITW). If you reside in AR, DE, IA, KS, MD, ME, MA, NC, NE, OK, VT, or VA, applicable SITW is mandatory and automatically will be withheld from the taxable portion of a payment paid to you. If you reside in AL, AZ, CA, CO, CT, DC, GA, HI, ID, IL, IN, KY, LA, MI, MN, MO, MS, MT, ND, NJ, NM, NY, OH, OR, PA, PR, RI, SC, UT, WV or WI, the withholding of applicable SITW is voluntary. Because state tax regulations change from time to time, consult with your tax advisor or the state taxing authority in your state of residence for information about the most current state tax regulations that may apply to a payment you receive from the PSA or PRA. 08/2013 D-5 PSA

55 APPENDIX E PERSONAL SAVINGS ACCOUNT (PSA) THUMS LONG BEACH COMPANY SAVINGS AND INVESTMENT PLAN MERGER Effective October 31, 2011 (Merger Date), the THUMS Long Beach Company Savings and Investment Plan (SIP) was merged into the PSA. The PSA established the following accounts (SIP Accounts) for former participants of the SIP who held SIP account balances as of the Merger Date: SIP Discretionary Contribution Account SIP Pre-1999 Matching Account SIP After-Tax Contribution Account SIP Pretax Deferral Account SIP Matching Account SIP Rollover Account Certain benefits are protected for the merged SIP Accounts as summarized in this APPENDIX E. In-Service Withdrawals of SIP Accounts As an active employee who was a prior SIP participant and whose SIP balance was merged into the PSA, you may request an in-service withdrawal of your SIP Accounts subject to the following: You may withdraw all or a portion of your SIP Rollover Account, SIP After-Tax Contribution Account, SIP Pre-1999 Matching Account, SIP Discretionary Contribution Account and, if you are age 59½ or older, your SIP Matching Account and SIP Pretax Deferral Account. You must withdraw a minimum of $1,000 from each SIP Account unless the account balance is less than $1,000, in which case you must withdraw the entire amount. You may withdraw funds from one or multiple SIP Accounts with each withdrawal. There are no limits on the number of withdrawals allowed and no suspension from making contributions to your PSA. In-service withdrawals from your SIP Matching Account and SIP Pretax Deferral Account prior to age 59½ are not available. Prior to attainment of age 59½, the order in which your accounts are depleted to pay your withdrawal is preset as follows: SIP Rollover Account, SIP After-Tax Contribution Account, SIP Pre-1999 Matching Account and SIP Discretionary Contribution Account. If you are age 59½ or older, the order in which your accounts are depleted to pay your withdrawal is preset as follows: SIP Rollover Account, SIP After-Tax Contribution Account, SIP Pre-1999 Matching Account, SIP Pretax Deferral Account, SIP Discretionary Contribution Account and SIP Matching Account. If less than the entire balance of any SIP account is needed to fulfill your withdrawal request, your fund balances within the SIP account will be depleted on a pro rata basis among all funds. The balances you withdraw will be valued as described in the section entitled Fund Valuations as of the Trading Day immediately preceding the check issuance date. An amount withdrawn from the Oxy Stock Fund is paid in shares of Oxy Stock unless you elect to receive cash. Amounts withdrawn from the other investment funds are paid in cash. For information about the tax consequences of an in-service withdrawal, please refer to the Notice of Federal and State Tax Information for Plan Payments, which is attached as APPENDIX D and also available at OxyLink Online. 08/2013 E-1 PSA

56 You may download and print an in-service withdrawal packet at OxyLink Online. After you have carefully reviewed the information and instructions contained in the packet, complete your withdrawal request form and mail the original to OxyLink at the address shown on the form. Your withdrawal request form must be received by the form expiration date printed on the withdrawal request form. Withdrawals are processed on a weekly basis. Generally, your withdrawal request will be included for processing in the weekly cycle in which it is received by OxyLink and approved by the Plan Administrator. Your withdrawal payment will be mailed 5-7 days following the end of the weekly processing period in which it is received and approved. SIP Loans On and after October 31, 2011, loan repayments of outstanding loans obtained under the SIP will be made to the PSA. The loan repayments will be credited in the order in which the SIP Accounts were liquidated. The payments will be credited to PSA fund balances based on your current fund investment election for employee contributions. If no election is on file, payments are credited to your account under the Diversified Balance Fund. PSA Loans Taken on or after October 31, 2011 For PSA loans taken on or after October 31, 2011, your accounts will be liquidated automatically in the following order: first, your Before-Tax Employee Contributions account, then your Rollover Contributions account, then your After-Tax Employee Contributions account, then your vested Matching Company Contributions and ESOP Dividend Account, except liquidation from your SIP account balances will be included on a pro rata basis based on the following schedule: SIP Account SIP Pretax Deferral Account PSA Account Before-Tax Employee Contributions SIP Rollover Account Rollover Contributions SIP After-Tax Contribution Account SIP Discretionary Contribution Account SIP Pre-1999 Matching Account SIP Matching Account After-Tax Employee Contributions Matching Company Contributions If less than an entire account balance is needed to fulfill your loan request, your account fund balances will be depleted on a pro rata basis among all funds. Loan repayments first are credited to your outstanding loan balance in your Matching Company Contributions and ESOP Dividend Account. Depending on which employee accounts were borrowed, the remainder of your payments will be credited to your employee accounts in the following account repayment order: your After-Tax Employee Contributions, your Rollover Contributions, then your Before-Tax Employee Contributions, except that repayment shall be applied to the SIP Accounts and PSA accounts on the same pro rata basis as the accounts were liquidated. The payments will be credited to your PSA fund balances based on your current fund investment election for employee contributions. If no election is on file, payments are credited to your account under the Diversified Balanced Fund. Your loan repayments are invested in your PSA and valued as described in the section entitled Fund Valuations. 08/2013 E-2 PSA

57 Beneficiary Designation of SIP Accounts If you have an approved SIP beneficiary designation form, it is valid for your SIP Accounts, unless you make a beneficiary designation change. If you do not have a form on file, your SIP Accounts will be paid to your spouse, if married, and if not married, to your estate. If you complete a beneficiary designation form after October 31, 2011 and you are older than age 35, the new designation will apply to your entire PSA balance including your SIP Accounts. If you are under age 35, you may change your beneficiary designation for your SIP Accounts only. Contact OxyLink for the SIP beneficiary designation form. Required Minimum Distribution of SIP Accounts Your SIP Accounts are subject to the PSA required minimum distribution rules as described in the section entitled Required Minimum Payments, except you are not required to receive a total lump-sum payment of your remaining SIP account balance by December 31 of the year in which you attain age 70½, even if you are terminated or retired. Instead, your required minimum distributions will begin on your required beginning date and continue once a year until your SIP accounts are completely withdrawn. 08/2013 E-3 PSA