Thread regarding Chevron Corp. layoffs

@Oisn, if you took $10 from your paper route and put it in the market in 2016 and let it ride through Trump's booming economy it would have more than doubled before now. Your point???????

The lump sum and it's rabid fans are indicative of a lack of basic math skills and absence of any financial acuity. It's wooed over and stupefying to those who have never had anything before in their lives. It's bewildering to learn how many who failed basic math in the public schools that they attended are hired by Chevron, those who end up choosing their tiny lump, blowing it and cannot even balance their own checkbooks.

The annuity demonstrates financial illiteracy. It goes down in value every single year.

Not saying that it is not the better choice in some cases but more people with no financial expertise take the lump sum. The lump sum is taken by people who are not good at managing their money and in the majority of those cases they spend away their lump sum down to nothing. In some cases they just need to pay off debt, but in many it's just a result of poor money management and they end up broke. People who think it through and take the one that is more suitable, including the annuity tend to be those with good money skills, plenty of savings and high net worth to show for it.

If you took the lump sum at the huge 2016 layoff round and simply purchased a total stock index fund you would have more than doubled your money by now. I know quite a few who did exactly this. Their $1.5 million lump is now $3 million and growing.

My pension actually tripled in value. That’s right, I’m the retiree who chose the pension annuity in 2017 and subsequently the company has been paying me about triple the amount I was supposed to get. I’m still receiving the larger amount every month in one payment and having a wonderful rich life. I have no reason to doubt their calculations, they are not sending me an obviously erroneous extra check that would make it seem like something is wrong. Life is good!

My pension actually doubled in value. That’s right, I’m the retiree who chose the pension annuity in 2016 and which the company has been paying me double the amount I was supposed to get. I’m still receiving the duplicate amount every month and setting the extra aside in a separate bank account for safe keeping.

Mailed in my pension rollover paperwork over 2 months ago, they say they don't have all the pages needed, so having to start over. I asked what pages specifically, but they said my submission was already archived, so need to start over. Frustrating.

Oops again sorry, no it's the February RECEIPT of your lump sum. Had to recheck. If you made the mistake and received a reduced lump in December, it's because you will have experienced the anemic rates prior to the best ones. Sorry for the confusion. Hope none of you readers experienced the pathetic rates by taking your smaller little tiny lump of coal in December.

Oops, I meant to type Dec 2020 was highest. That was the alltime low for rates, as shown on the IRS web site. Your pension will continue to shrivel as rates rise.

Irs Segment rates are what are used to calculate pensions (lump sum only, annuity is not interest based) and it’s the 3rd 4th and 5th month preceding the starting payment month. Because of that , February 2021 was the highest lump sum payout in the history of all payouts.
FIFY

I called the HR Benefits Center to find out more about the pension calculation. They changed from speaking gibberish to talking in tongues. I couldn’t understand anything.

Your pension value has not dropped 25%. You are, or previously, entered wrong numbers into the estimate system. As interest rates rise, your lump some can decrease, but interest rates have so far only changed a little off their lows. The will be more interest rates increases in the future.

My Chevron Pension is down 23% from the high. Not getting answers from Benefits on why so much, seems like it should be down, but not this much. Anyone else?

Irs Segment rates are what are used to calculate pensions (lump sum and annuity) and it’s the 3rd 4th and 5th month preceding the starting payment month. December was the highest lump sum payout in the history of all payouts. Other months have decreased from then. Future Calculations are using the existing segment rate numbers since there isn’t a way for CVX to check how rates will change in the future. Suggest everyone Check frequently to determine if you should leave soon. And also social security offset is a rip off. Many I know provided their actual SS numbers because the CVX offset was ripping most people off for thousands of dollars!

Stock indices have averaged nearly 12% annual return the last 15 years so waiting for 5% would have been quite a loss. That’s why those who like to work cash out now, invest, and work elsewhere or as a consultant.

@3xrn, I agree with what you say, however age 60 and beyond with 25+ years of service is really the sweet spot. The Chevron Retirement Plan for employees hired before January 1, 2008 eliminates the early retirement discount factor at age 60. Any age before that will reduce the pension amount by 5% per year.

The pension is just icing on the cake. You shouldn’t pay much attention to it until you are over 50 (59 is the sweet spot $$$) or have 20-25 years of service. Your young, focus putting money your into the 401k/Roth…just my 2cents.

Is that all? Expect it to come down more as interest rates rates rise (which it will!)

The Chevron Retirement Plan pension for post-2008 employees is not as good as the one for employees hired before that date. Chevron watered down their pension plan somewhat for the newbies.

Yes pension is tied to the interest rate. Go look at the pension calculator. Post ~ 2007 employees (forget the exact year). Have a fairly simple calculation.

I considered expressing interest last round but in the end decided to stay around. My pension is currently higher than it was last October by a little bit (inflows cancelling interest induced reductions), but you are right that I missed a period of 20% growth.

Pension down $19k? You tipped your hand - you don't have much of a pension. Work for the Company for 25+ years and a move of $19k in your pension won't even raise an eyebrow.

I took the lump with the December rate and invested it in a popular index fund. It is up around $300,000. If I took the lump Aug 1 it would be $50,000 less than December, for a total of $350,000 less if I waited and missed both the rate bottom and 2021 stock run up.

Add in the generous severance and it is quite a nice total package, almost a year later.

And we are still collecting more than $500/week in unemployment which is fun money. That party will finally end in September.

Still 5+ years from truly retiring, elected to raise my hand at last year’s accelerated EOI and roll mine into self directed IRA. Doubled my lump sum value in the last year making smart investments in the market

Additionally, found new job for software company, they gave me stock awards (RSA value equals CVX lump sum value) as a sign-on bonus. Plus provide health care insurance (Cigna) at no cost for family coverage.

The grass is really green outside of CVX

Like that voice said in the Amityville horror” said.....GET OUT!

The only thing that matters for your pension payout is how long you worked, your three years of highest pay, and interest rates the day you take your lump sum. Higher interest rates lower the lump payout. If you take the pension (monthly payments), then interest does not matter. Market returns have nothing to do with it! Interest rate is defined by three rates (short, mid, and long) that are defined by the market (not Chevron). The equation is fixed and well known by all that care enough to look it up!

Interest rates have been climbing since hitting historic lows in December. Higher rates means lower payouts.

Just checked my pension. I was only there 6 years, but still down in value almost $2,000 in 18 months. Stock market doing well, what is going on?