Transition to Chevron s Time Off Benefits Your Life.

Transcription

1 Human Energy. Yours. TM Transition to Chevron s Time Off Benefits Your Life. As of January 1, 2012, legacy Atlas employees will accrue and use time off benefits holidays, sick time, vacation and compressed work weeks according to Chevron s policies. What s Included in this Update: Page 2 Chevron Holidays Page 2 Compressed Work Week Schedule Page 3 Chevron Vacation How Vacation is Earned at Chevron: The Basics For Legacy Atlas Employees: Adjusted Vacation Service Date Example One: Joe Example Two: Jill Page 7 Chevron Sick Time Plan Highlights For Legacy Atlas Employees: Sick Time Effective January 1, 2012 Please note: This communication provides only certain highlights of benefits provisions for U.S.-payroll employees. It is not intended to be a complete explanation. If there are any discrepancies between this communication and legal plan documents, the legal documents will prevail to the extent permitted by law. This is not a plan text or a summary plan description. There are no vested rights with respect to Chevron health or welfare plans or any company contributions toward the cost of such plans. Rather, the plan sponsor and Chevron reserve all rights, for any reason and at any time, to amend, change or terminate these plans or policies or to change or eliminate the company contribution toward the cost of such plans. Such amendments, changes, terminations or eliminations may be applicable without regard to whether someone previously terminated employment with Chevron or previously was subject to a grandfathering provision. Some benefit plans and policies described in this document may be subject to collective bargaining and, therefore, may not apply to union represented employees. Atlas Transition to Chevron Time Off Benefits Page 1

2 Chevron Holidays You ll continue to follow the Atlas holiday schedule for the remainder of this year. However, you will also receive an extra holiday on Friday, December 23, 2011, to align with Chevron s 2011 holiday dates. Starting January 1, 2012 you ll receive all of Chevron s scheduled holidays. For employees on a standard five day, 40 hour work week you ll receive nine fixed holidays and one floating holiday of your choosing, called the Personal Choice Holiday. If you re on a compressed work schedule, you ll still receive the same total hours of holiday time off, but the actual number of days may vary because the hours of your work schedule are different. For example, employees on a 9/80 compressed work week schedule have the floating Personal Choice Holiday and eight fixed holidays. Read the Chevron Holiday Policy Compressed Work Week Schedule The Compressed Work Week Guidelines provide for compressed work schedules designed to allow you time to balance your work and personal or family needs. It has been approved for eligible AMBU employees.* However, adoption of a compressed workweek schedule is voluntary at both the department and employee level. Each department will decide whether or not to offer the compressed workweek option. This decision will be based on each department s situation and their ability to meet workload and business requirements. If your department adopts the compressed work week schedule, eligible AMBU employees will be offered the choice to observe the crew A or crew B, every-other-friday-off compressed workweek option (called the 9/80 schedule). Crew A begins the 9/80 Schedule on January 9, Crew B begins the 9/80 Schedule on January 2, If your department adopts the 9/80 work schedule, you will receive detailed instructions for choosing your crew (A or B) and transitioning to the 9/80 work schedule (but only if desired). You should continue to follow your current, standard work schedule until you are notified of any schedule changes. *Note: Although this program is approved by Chevron, it is subject to Pennsylvania state employment regulations and is currently under review by that state. Atlas Transition to Chevron Time Off Benefits Page 2

3 Chevron Vacation Your current Atlas PTO bank and the way your time off is used will remain unchanged for the remainder of this year. You ll be allowed to carry over a maximum of five unused days from your Atlas PTO bank into These carry over days (if any) will be automatically added as additional vacation days in your 2012 Chevron vacation bank. Starting January 1, 2012, you ll earn and use vacation time according to Chevron s Vacation policy. Atlas provided a Paid Time Off (PTO) program that combines time off for vacation, personal reasons, and sick days. PTO programs like this often provide higher annual time off banks because this time is intended for a variety of purposes, not just vacation. At Chevron, your paid time off for vacation and sick time is divided into two separate banks. These banks have separate amounts and grow at different rates. When you take vacation, the time is deducted from your vacation bank. More information about how to schedule and report vacation time will be shared later this year. How Vacation is Earned at Chevron: The Basics The amount of your annual vacation will continue to be based on your length of service with the company, including your years of service with Atlas. Your years of service are used to calculate a vacation service date. Your vacation service date is used to determine how much vacation you re eligible to take each year under the policy. Your annual vacation amount increases when you reach certain vacation service milestones: Years of Vacation Service Regular Work Schedule (5/40) Compressed Work Schedule (9/80) 0 thru 4 years 10 days (80 hours) 9 days (~80 hours) 5 thru 9 years 15 days (120 hours) 14 days (~120 hours) 10 thru 19 years 20 days (160 hours) 18 days (~160 hours) 20 thru 29 years 25 days (200 hours) 23 days (~200 hours) 30 years and beyond 30 days (240 hours) 27 days (~240 hours) For Legacy Atlas Employees: Adjusted Vacation Service Date Chevron has the discretion to adjust vacation service dates. Your vacation service date may be adjusted to help ease the transition to Chevron s vacation amounts. You ll receive your specific personal vacation service date in your transition letter in September. Your Chevron vacation service date will be the earliest of the following calculations: A. B. C. The date used by Atlas to determine your annual Atlas PTO bank. A date that equals special minimum Atlas vacation amounts. A date that recognizes certain eligible prior work experience. Atlas Transition to Chevron Time Off Benefits Page 3

4 A. Your Service Date From Atlas This is the date that was used by Atlas to determine the amount of your annual Atlas PTO bank. B. Atlas Special Minimum Vacation Amounts Effective January 1, 2012, Chevron will ensure your vacation bank will be at least the amounts listed in the chart below. Your vacation service date will be adjusted so that you start with these minimum amounts. But, remember that if your service date from Atlas (A) or a service date based on prior work experience (C) provides a better vacation amount, that date will be used to determine your vacation bank. If your 2012 Atlas PTO allocation would be Your annual Chevron vacation bank will be at least*: adjusted to equal this many years: Less than 200 hours 15 days (120 hours) 5 years of service 200 hours 20 days (160 hours) 10 years of service Greater than 200 hours 25 days (200 hours) 20 years of service *These allocations are for full-time employees on a 5/40 work schedule. Employees on a compressed work schedule will receive an equivalent number of hours/days in their vacation bank. Part-time employees will receive a prorated amount based on actual hours worked. C. Additional Adjustment for Experienced Employees The Experienced Hire clause of the Chevron Vacation Policy provides for recognition of certain prior directly related service. As an example, suppose you were an accountant with another company prior to working the same role at Atlas. You might be eligible for a vacation adjustment under the Experienced Hire clause. To be eligible for this vacation service date adjustment: You must be an exempt employee. Your prior experience must have been as a full time, exempt employee. Your prior experience must have been essentially the same job functions and responsibilities as you have today. If your prior service is eligible, then your vacation service date will be based on the table below. Chevron will review any resumes already on file and award an initial credit for prior directly related experience; if you re eligible and receive credit, this will be reflected in your September transition letter. If you have this many years of directly related experience: adjusted to equal this many years*: And your annual Chevron vacation bank starts at: 5 thru 9 5 years 15 days (120 hours) 10 thru years 20 days (160 hours) 20 thru years 25 days (200 hours) 30 and beyond 30 years 30 days (240 hours) *Note that your vacation service date will be adjusted just enough to provide you with the minimum years of service for each level on the Chevron vacation amount table. For example, if your prior experience was 16 years, your vacation service date will adjusted to equal the minimum of the Year 10 through 19 amount, or 10 years of vacation service. You d have to work an additional 10 years to achieve the next level, Year 20 thru 29. Atlas Transition to Chevron Time Off Benefits Page 4

5 Example One: Joe Joe s vacation service date at Chevron is the earliest of the following dates: A. The date used by Atlas to determine Joe s annual Atlas PTO bank. B. A date that equals special minimum Atlas vacation amounts. C. A date that recognizes Joe s eligible prior work experience (if any). A. The date used by Atlas to determine Joe s annual Atlas PTO bank. Joe s service date from Atlas is May 1, As of January 1, 2012 he has 15 years of vacation service. B. A date that equals special minimum Atlas vacation amounts. On January 1, 2012 Joe is eligible for 240 hours of annual PTO under Atlas policy. According to the conversion chart below, Joe s annual Chevron vacation bank will start at 25 days (200 hours). This means his vacation service date will be adjusted to equal 20 years of vacation service. Under this calculation, his vacation service date is May 1, 1992 ( years = 1992). If your 2012 Atlas PTO allocation would be Your annual Chevron vacation bank will be at least*: adjusted to equal this many years: Less than 200 hours 15 days (120 hours) 5 years of service 200 hours 20 days (160 hours) 10 years of service Greater than 200 hours 25 days (200 hours) 20 years of service C. A date that recognizes Joe s eligible prior work experience (if any). Joe does not have prior related work experience, so the credit under the Experienced Hire clause of the Chevron Vacation Policy does not apply to him. Results: The calculation for B is the earliest date, so Joe s Chevron vacation service date is May 1, 1992 (or 20 years). This date is applied to Chevron s annual vacation amounts below. Joe is a full-time employee and will work the 9/80 compressed work schedule, so he is eligible for 23 days (~200 hours) of annual vacation time under Chevron s policy. Joe needs to work an additional 10 years to be eligible for the next level, 240 hours. Years of Vacation Service Regular Work Schedule (5/40) Compressed Work Schedule (9/80) 0 thru 4 years 10 days (80 hours) 9 days (~80 hours) 5 thru 9 years 15 days (120 hours) 14 days (~120 hours) 10 thru 19 years 20 days (160 hours) 18 days (~160 hours) 20 thru 29 years 25 days (200 hours) 23 days (~200 hours) 30 years and beyond 30 days (240 hours) 27 days (~240 hours) Atlas Transition to Chevron Time Off Benefits Page 5

6 Example Two: Jill Jill s vacation service date at Chevron is the earliest of the following dates: D. The date used by Atlas to determine Jill s annual Atlas PTO bank. E. A date that equals special minimum Atlas vacation amounts. F. A date that recognizes Jill s eligible prior work experience (if any). A. The date used by Atlas to determine Jill s annual Atlas PTO bank. Jill s service date from Atlas is July 1, As of January 1, 2012 she has 6 years of vacation service. B. A date that equals special minimum Atlas vacation amounts. On January 1, 2012 Jill is eligible for 200 hours of annual PTO under Atlas policy. According to the conversion chart below, Jill s annual Chevron vacation bank will be at least 20 days (160 hours). This means her vacation service date will be adjusted to equal 10 years of vacation service. Under this calculation, her vacation service date is July 1, 2002 ( years = 2002). If your 2012 Atlas PTO allocation would be Your annual Chevron vacation bank will be at least*: Less than 200 hours 15 days (120 hours) 5 years of service 200 hours 20 days (160 hours) 10 years of service Greater than 200 hours 25 days (200 hours) 20 years of service adjusted to equal this many years: C. A date that recognizes Jill s eligible prior work experience (if any). Chevron reviewed Jill s resume already on file and determined she met the eligibility requirements to have her previous related work experience considered under the Experienced Hire clause of the Chevron Vacation Policy. Jill had 25 years of directly related experience. According to the conversion chart below, Jill s annual Chevron vacation bank will be at least 25 days (200 hours). This means her vacation service date will be adjusted to equal 20 years of vacation service, so her vacation service date is July 1, 1992 ( years = 1992). If you have this many years of directly related experience: adjusted to equal this many years*: And your annual Chevron vacation bank starts at: 5 thru 9 5 years 15 days (120 hours) 10 thru years 20 days (160 hours) 20 thru years 25 days (200 hours) 30 and beyond 30 years 30 days (240 hours) Results: The calculation for C is the earliest date, so Jill s Chevron vacation service date is July 1, 1992 (or 20 years). This date is applied to Chevron s annual vacation amounts below. Jill is a full-time employee and will work the regular 5/40 work schedule, so she is eligible for 25 days (200 hours) of annual vacation time under Chevron s policy. Jill needs to work an additional 10 years to be eligible for the next level, 240 hours. Years of Vacation Service Regular Work Schedule (5/40) Compressed Work Schedule (9/80) 0 thru 4 years 10 days (80 hours) 9 days (~80 hours) 5 thru 9 years 15 days (120 hours) 14 days (~120 hours) 10 thru 19 years 20 days (160 hours) 18 days (~160 hours) 20 thru 29 years 25 days (200 hours) 23 days (~200 hours) 30 years and beyond 30 days (240 hours) 27 days (~240 hours) Atlas Transition to Chevron Time Off Benefits Page 6

7 Chevron Sick Time Your current Atlas PTO bank and the way your time off is used for sick time will remain unchanged for the remainder of this year. Starting January 1, 2012, you ll accrue and use sick time according to Chevron s policy. At Chevron, your paid time off for vacation and sick time is divided into two separate banks. These banks have separate amounts and grow at different rates. When you are sick, time is deducted from your sick time bank. More information about how to report sick time will be shared later this year. Plan Highlights Sick time at Chevron generally falls under the Chevron Short-Term Disability (STD) Plan. More information about the Short- and Long-Term Disability Plans will be shared later this year. Until then, here are some highlights of the STD plan: You have two benefit accounts one for on-the-job disabilities and one for off-the-job disabilities. Benefits (or your banks ) accumulate as you complete years of service. The maximum benefit you can accrue under the plan is 26 weeks of full-pay and 26 weeks of half-pay (52 total weeks). Plan benefits are based on your regular pay. In general, your regular pay is your base wage, including regularly scheduled overtime and certain shift differentials. Your regular pay doesn t include special payments (Chevron Incentive Plan (CIP) or other bonuses or incentives) or any pay you may receive for work you do outside your regular work schedule. Full-pay benefits equal 100 percent of your regular pay half-pay benefits equal 50 percent of your regular pay. You receive half-pay benefits when your full-pay benefits are used up. Each time you receive benefits from the plan, your account is reduced by the benefits used. The plan also includes a benefit restoration feature when you meet time and work requirements after using sick time off. Long-Term Disability benefits begin when your STD benefits end or after 180 days of disability, whichever is later. Here are some key changes to the way you use sick time when you transition to Chevron: You aren t required to use time from your vacation bank when you are sick. There is no waiting period when you are sick. You receive full-pay (100% of regular pay) on the first day of illness. You do not lose the time in your bank if you don t use it. You will be eligible to use sick time as early as January 1, The six month waiting rule under the plan will not apply to legacy Atlas employees. Atlas Transition to Chevron Time Off Benefits Page 7

8 For Legacy Atlas Employees: Sick Time Effective January 1, 2012 On-the-Job Bank On-the-job injuries are handled differently than those that occur off the job. Your on-the-job bank (for when you re injured at work) will be the maximum available: 26 weeks of full-pay and 26 weeks of half-pay (52 total weeks). Off-the-Job Bank Your off-the-job bank amount (for example when if you get the flu or break an arm) is based on your vacation service date. Because you re a legacy Atlas employee, you will receive at least 11 weeks of fullpay and 11 weeks of half-pay to start. You ll receive your specific personal vacation service date in your transition letter in September. Your vacation service date is then applied to the table below to determine the amount of time in your off-the-job bank. You ll continue to earn an additional three weeks of full-pay and three weeks of half-pay each year until you reach the maximum available benefit under the plan. To start, all Atlas employees will receive a minimum of 11 weeks of full-pay and 11 weeks of halfpay (the benefit for the five year service level). If your vacation service date provides for a better benefit accrual, you ll receive that amount. Short-Term Disability Plan Off-the-Job Disability Amounts on January 1, 2012 For Legacy Atlas Employees Years of Vacation Service Full Regular Pay Half Regular Pay 5 years 11 weeks 11 weeks 6 years 14 weeks 14 weeks 7 years 17 weeks 17 weeks 8 years 20 weeks 20 weeks 9 years 23 weeks 23 weeks 10 or more years 26 weeks 26 weeks Example If your vacation service date is January 1, 2006, then you would have 6 years of vacation service on January 1, You would be eligible for 14 weeks of full-pay and 14 weeks of half-pay off-the-job disability benefits. Atlas Transition to Chevron Time Off Benefits Page 8