What happens to our supplemental Retirement money incase of bankruptcy?
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You’re only eligible for the SRP if your base salary is over $160,000. That’s why a lot of folks here have no idea what it is.
Not sure what the RSP is, but Oxy has a 401k ( a defined contribution plan) and a retirement plan that is a also a defined compensation plan. Both are probably qualified. You should not lose the money you have in either. Both are separate plans with their own funding, so not tied to Oxy's balance sheet. The only way you could loose anything in either account is if you choose stocks or mutual funds that don't perform well.
@ywo+14uPK4V3 save for CHK doing a 200 to 1 reverse split, there aren't a lot of things that scream desperate more than a 12% stock dilution to pay an investor.
We are a long way from Bankruptcy.
Sorry if this is a stupid question, but is the SRP the same as your Oxy Retirement account in Voya? My Voya account has my 401K and then a separate Oxy Retirement account. I can move around investments in the Oxy Retirement account, so I would think that would be real cash that I am vested in.
What happens to LAPCers who took the package last November? What happens to their stock?
SRPII you will lose it. Non guarantee
The SRP has nothing to do with Oxy Stock or selling Oxy stock. . It is a unqualified retirement program. Your SRP balance earns interest at the monthly equivalent of the Five-Year U.S. Treasury Bill rate plus 2% determined on the last day of the previous month. Interest is allocated daily.
@lgr+14uPK4V3 I think you are referring to the 401k match, not the SRP.
Anything vested balances in your 401k or Retirement Plan are yours. But you are correct, if you hold any Oxy shares in your 401k, those will likely be worth nothing in a bankruptcy. Any LTI's will also be worthless.
The SRP is different. I believe it is considered a Non-Qualified Deferred Compensation Plan. It doesn't actually belong to you yet. There is no cash in an account with your name on it. It's just an amount that Oxy says they will pay you in the future. In a bankruptcy, it will be treated as an unsecured promise to pay. In other words, get in line with all the other creditors and see what you get.
The other bad news: Even if you elected the lump sum, they don't pay it until the first quarter of the following year. So you could quit today and still not be paid your lump sum if Oxy files before then.
Oxy is the only company I have ever worked for that pays the 401k match in company stock instead of your investment elections. After Enron, this should be illegal. I have made a habit of trading everything out of the Oxy stock fund every so often, but I bet a ton of people didn't even know they should do this. I feel horrible for them, especially the people that spent their entire career with Oxy and just retired with a mountain of worthless Oxy shares. It makes me sick to think about it.
I try to sale my shares in my 401K when can. The same for the Retirement Account if I have any stock in there, but I usually deposit that into the Target 2025 fund. With that said both the 401K and Retirement money is in your Voya account, and I am pretty sure that is separate from Oxy. I had a Fidelity account at Anadarko and just kept all my money there when Oxy bought Anadarko.
Goes to zero unless you actively sold out of your Oxy shares periodically.
I used to liquidate that and the LTI as soon as I could.