Notice and Severance Pay Plan. February 2016

Transcription

1 Notice and Severance Pay Plan February 2016

2 AGENDA Notice and Severance Pay Plan (NSPP) Medical, Dental, Retiree Medical, COBRA Flexible Spending Accounts Health Savings Accounts Life Insurance and Disability Coverages Savings Plan Supplemental Retirement Plan II Supplemental Savings Plan Other Retirement Plans Employee Stock Purchase Plan Long-Term Incentive Plan Vacation Health Advocate EAP Health Advocate Advocacy Other Programs Educational Assistance Matching Gifts 2

3 NOTICE AND SEVERANCE Payments on regular paydays in regular base pay amount Payroll deductions continue (i.e., taxes, benefit deductions) Payroll direct deposit continues All benefits continue through Notice; medical and dental through Severance Health Advocate services continue through Severance Employee Assistance Program (EAP) Advocacy 3

4 NOTICE AND SEVERANCE OPTION A Notice (two months) Severance Full vesting in Savings Plan Medical and Dental continue through Severance Enhanced Retiree Medical Eligibility Requires signed Separation Agreement and General Release to receive Severance Service calculation for Severance Based on service through end of Notice Period Rounds to nearest whole year: For example, 4 years + 5 months = 4 years 4

5 NOTICE AND SEVERANCE OPTION A Provides two months Notice Pay plus Severance Pay up to ten months depending on years of CRC service (includes Oxy service) Years of Service Notice Severance Less than 4 years 2.0 months 1.0 month 4 years 2.0 months 1.5 months 5 years 2.0 months 2.0 months 6 years 2.0 months 2.5 months 20 or more 2.0 months 10.0 months 5

6 NOTICE AND SEVERANCE OPTION B Notice only (two months) No Severance Full vesting in Savings Plan Participation in all benefit plans and programs ceases at end of Notice Regular Retiree Medical Eligibility Age 55 with 10 years of service 6

7 MEDICAL AND DENTAL COVERAGE OPTION A ONLY During Severance Payments If you or your covered dependent(s) will not be eligible for Medicare at the end of Severance payments Participation in medical and dental plans continues at employee rates on an after-tax basis May change from HMO to Aetna plan if relocate out of service area 7

8 MEDICAL AND DENTAL COVERAGE OPTION A ONLY During Severance Payments If prior to the end of Severance, you or a dependent will be eligible for Medicare and you will not be eligible for retiree medical and dental coverage Participation in medical and dental plans continues at employee rates on an after-tax basis May change from HMO to Aetna plan if relocate out of service area 8

9 MEDICAL AND DENTAL COVERAGE OPTION A ONLY During Severance Payments If prior to the end of Severance, you or a dependent will be eligible for Medicare and you will be eligible for retiree medical and dental coverage Participation in the dental plan at employee rates continues on an after-tax basis and continues to be deducted from NSPP payments Medical payroll deductions cease at the end of Notice Continued medical coverage will be under the CRC Retiree Medical Plan immediately following Notice Monthly contributions for retiree medical coverage will be sent to PayFlex (CRC s billing administrator) You and/or your Medicare-eligible dependent(s) should enroll in Medicare Part B, to be immediately effective following Notice (or attainment of Medicare eligibility, if later) 9

10 RETIREE MEDICAL AND DENTAL ELIGIBILITY OPTION A ENHANCED ELIGIBILITY Enhanced eligibility 30 or more years of service Age 50 or older with at least 5 years of CRC service, with combined age and service = 65+ Example: Age 51 years, 8 months Age 58 years, 5 months + Service 14 years, 6 months = 66 years, 2 months + Service 7 years, 6 months = 65 years, 11 months 10

11 RETIREE MEDICAL AND DENTAL ELIGIBILITY OPTION B Immediate enrollment (first of the month following Notice) Age 55 with 10 years service If you waive Retiree Medical Coverage at this time, you must show proof of loss of other coverage before you may enroll for CRC Retiree Medical Coverage 11

12 RETIREE MEDICAL COVERAGE Two options available under the CRC Retiree Medical Plan Aetna Option - Plan similar to the Aetna Core medical plan option for active employees Once eligible for Medicare, Medicare becomes your primary coverage and the CRC plan becomes secondary Kaiser Option Traditional Plan (same as the Kaiser plan for active employees) for non-medicare eligible participants, and Senior Advantage Plan (a Medicare Advantage HMO) for Medicare-eligible participants You and/or your spouse must enroll in Medicare Part A (hospital) and Part B (medical) as soon as you become eligible for Medicare. If you do not timely enroll for Medicare Part B, Medicare will impose a lifetime financial penalty You do not need to enroll in a Medicare Part D prescription coverage plan 12

13 RETIREE MEDICAL CONTRIBUTIONS Retiree Medical Plan contributions are multiple of the Retiree Medical Base Rate based on a combination of age and service as of the last day of NSPP payments Points Non-Medicare Eligible Medicare Eligible times 2 times times 2 times times 2 times 80 or more 1 times 1 times 2016 Monthly Retiree Medical Base Rates Retiree Only Retiree + One Family Aetna $120 $240 $360 Kaiser $90 $180 $270 13

14 RETIREE DENTAL COVERAGE Aetna is the only available Retiree Dental Plan option Plan similar to the Aetna Dental Plan for active employees Retiree dental coverage is not subsidized, so retirees pay the full cost of coverage 2016 Monthly Retiree Dental Rates Retiree Only Retiree + One Family $47 $94 $141 14

15 MEDICAL AND DENTAL PLANS COBRA COBRA continuation coverage available following NSPP payments Up to 18 months COBRA notice mailed to home at end of NSPP payments Charge is 102% of full cost If you are eligible for retiree dental coverage, you may elect COBRA dental for up to 18 months prior to enrolling in retiree dental coverage 2016 Monthly COBRA Rates Employee Only Employee + One Family Aetna Core $ $1, $1, Aetna High Deductible $ $1, $1, Kaiser $ $ $1, United Healthcare $ $1, $1, Aetna Dental $39.78 $79.56 $

16 FLEXIBLE SPENDING ACCOUNTS Elected 2016 contributions continue through Notice Expenses incurred during the period contributions are made may be submitted for reimbursement Reimbursement rules: Health Care as incurred through end of Notice, up to full election amount Dependent Care as incurred through end of Notice, up to balance in account After Notice, Health Care FSA election may continue (after-tax) through COBRA Ultimate submission deadline for 2016 spending accounts is March 31,

17 HEALTH SAVINGS ACCOUNT Payroll deduction of HSA contributions will cease at end of Notice You may continue to make direct contributions to your HSA on an after-tax basis, as long as you are enrolled in a high deductible health plan You will be responsible for the monthly administration fee beginning after Notice, currently $4.00/month Your account is eligible to be moved to other banking institutions that offer HSA accounts 17

18 LIFE INSURANCE PLANS Basic Life coverage continues through the end of Notice Conversion to individual policy available Contact Prudential within 31 days after coverage ends at Occupational Accidental Death & Dismemberment continues through end of Notice Accidental Death & Dismemberment continues through end of Notice Coverage may be cancelled or reduced at any time by contacting Conversion to individual policy available Contact AC Newman within 31 days after coverage ends at

19 GROUP UNIVERSAL LIFE (GUL) Deductions continue through end of Notice Portable to individual policy Contact Prudential at , to change or arrange continuation of coverage You may cancel your coverage at any time by contacting Prudential 19

20 SHORT-TERM DISABILITY (STD) AND LONG-TERM DISABILITY (LTD) Coverage ceases at the end of Notice Conversion to an individual policy not available 20

21 CRC SAVINGS PLAN Contributions and Match continue through Notice Applies to accrued vacation payout Vesting Employee and Company matching contributions always 100% vested Company retirement contributions 100% vested at the end of Notice 21

22 CRC SAVINGS PLAN LOANS Payroll deductions will continue for loan repayments during Notice Fidelity will send information regarding your loan status approximately 30 to 60 days following Notice You can continue to make monthly loan payments directly to Fidelity If monthly payments not set up at Fidelity, and outstanding balance not paid in full, loan will default and be treated as taxable distribution Non-repayment does not affect your credit score Tidelands savings plan loan payments can also continue, contact Prudential at

23 CRC SAVINGS PLAN DISTRIBUTION You have the option to defer distribution until age 70 ½ Distribution available after end of Notice Request distribution via Fidelity website at or call Distribution Options Cash distribution Partial cash distribution Rollover to IRA, Roth or other qualified plan 23

24 CRC SAVINGS PLAN DISTRIBUTION TAX CONSIDERATIONS Distributions of before-tax account balances are subject to taxation unless rolled over to an IRA or another employer s qualified plan 10% additional federal early withdrawal penalty generally applies unless: Payments for life or life expectancy (annuities) You leave employment in the year you attain age 55 or later After attainment of age 59 ½ Direct transfer to an IRA or another employer s qualified plan Taxable amounts not directly transferred to an IRA or another employer s qualified plan are generally subject to a mandatory 20% federal withholding and a 2% California state withholding Special tax treatment may be available Consult with a qualified tax advisor Contact Fidelity for more information 24

25 SUPPLEMENTAL RETIREMENT PLAN II (SRP II) All SRP II participants are fully vested in account balance Distribution According to your previously elected option Total Cash Payment made in the first 90 days of the year following the year in which your Notice ends Annual Installments the first installment will occur in the first 90 days of the year following the year in which your Notice ends If your balance is $50,000 or less or if you did not submit a distribution election within the first 30 days of your SRP II plan entry date, you will receive a total cash payment in the first 90 days of the year following the year in which your Notice ends Interest allocations will continue to accrue monthly at the prevailing rate of return specified in the SRP II (currently 5-year Treasury Bills plus 2%) through the end of the processing month prior to the month in which a payment is processed Your payments will be taxable to you as ordinary income and are not eligible to be rolled over to an IRA or another employer s qualified or nonqualified plan 25

26 SUPPLEMENTAL SAVINGS PLAN (SSP) This is a new non-qualified plan to provide company matching and retirement contributions missed due to the IRS qualified plan limits Eligible participants were sent information in January. If you become eligible during 2016, information will be sent to you during the first quarter of Distribution option If your balance is $50,000 or less, you will receive a total cash payment in the first 90 days of the year following the end of Notice Your payments will be taxable to you as ordinary income and are not eligible to be rolled over to an IRA or another employer s qualified or nonqualified plan 26

27 OTHER RETIREMENT PLANS Tidelands and THUMS employees may have a vested benefit under either the Tidelands Oil Production Company Employees Pension Plan or the THUMS Employees Pension Plan Participants will be eligible to take distributions following Notice For information regarding your THUMS or Tidelands pension benefit contact CRC Pension Service Center at

28 EMPLOYEE STOCK PURCHASE PLAN Contributions cease at the end of Notice If you are age 65 or over at end of Notice, accumulated contributions will be utilized to purchase stock at the end of the quarter If you are under age 65, accumulated contributions will be paid out following end of Notice You can withdraw from the quarterly purchase at any time during the quarter Purchased stock remains in your account 3 month hold still apples 28

29 LONG-TERM INCENTIVE PLAN All outstanding long-term incentive awards will be reduced on a prorated basis and become immediately payable following the end of Notice Proration is based on the number of days employed during the vesting period Payment will be processed by Morgan Stanley and CRC payroll 29

30 VACATION Vacation earned through end of Notice Accrued and unused vacation paid as soon as practicable following end of Notice 30

31 EMPLOYEE ASSISTANCE PROGRAM (EAP) EAP services remain available to employees and their dependents through the end of Notice and Severance payments and while on COBRA continuation coverage Company-paid, confidential counseling resource Up to 8 face-to-face sessions Obtain help for a variety of situations Stress, depression, anxiety Marital relationships, family/parenting issues Anger, grief and loss Addiction, eating disorders Elder care assistance and much more Available if enrolled in the CRC Retiree Medical Plan EAP services are provided through Health Advocate 24/7 By phone at , or Online at HealthAdvocate.com/members, enter California Resources Corporation 31

32 HEALTH ADVOCATE - ADVOCACY Health Advocacy Provides help with a full range of health care issues including, Finding network providers Untangling insurance claims Navigating Medicare Assisting with elder care issues Scheduling appointments with specialists Health condition coaching Assisting with special needs Advocacy services remain available to you and your family members through the end of Notice and Severance payments If enrolled in retiree medical coverage, advocacy services remain available to you and your family 32

33 OTHER PROGRAMS Educational Assistance expenses applied for and approved for reimbursement prior to Notice will be eligible for reimbursement (even if course of study is completed during or after the end of your Notice and Severance payments) Matching Gifts Company will match all eligible gifts submitted prior to end of Notice 33

34 QUESTIONS Following this meeting send questions to: 34