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 oxylink@oxy.com 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 oxylink@oxy.com 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 oxylink@oxy.com 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 oxylink@oxy.com 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