Can someone explain the significance of 90 points? Do they matter only for the company contribution towards healthcare premiums or do the 90 points come into play for other benefits?
26 replies (most recent on top)
@k2+1: "$1000/mo" (for a couple) is Medicare + supplement + prescription plan + dental + vision. Medicare alone (akin to high deductible obamacare) is roughly $200/mo per person, without any IRMAA.
In some cases, the retirees who "play poor" gave away a chunk of their 401K to an Ex or the cute young thang they couldn't live without.
Experience sounds similar. Same access to same plans as EE. However, more expensive and company contribution as "retiree" is less than that as EE. And per "points proration"... % of company contribution will vary. Definitely a different vibe paying via a "paycheck deduction" vs. "net outflow" (i.e., no paycheck).
Note though... "company contribution" at one point could go to 0%... thus, need for company to succeed for this benefit to retain value.
I was laid off last year in my mid 50s after about 19 years with the company. I had acquired a total of 71 points. What that got me was about $350 discount off the pre-65 high deductible health insurance, which includes vision and that I also pay about 40 bucks a month for dental.
It’s basically the same when I was an employee at Chevron as well as the same coverage that I had when I was on cobra for six months but now it cost me about 800 bucks a month.
Still much better than what I could find on healthcare.gov, those plans skinny for to pay.
Even though I’m paying more, I’ve got pretty rock solid medical health insurance until I get covered by Medicare in about 10 years. It’s a good bit of peace of mind.
You also need 10 years of service, or get nothing
@qd, Common misconception to who, you? Or the many people who know how to manage their finances in tax-deferred accounts and Roths and live off of cash savings until Medicare? That's not an incredibly difficult task for people with no debt, you do realize that, don't you? "Common Misconception" lmao. you make a funny!
@qh This is Olympic gold medal level for dummest comment of the year, and perhaps the decade.
Not sure why you even try to have health insurance, just go to the doctor or hospital and do not pay, nothing would happen. The health insurance costs are high because many go through this path and so the cost is carried over to people who are willing to have health insurance, you dont pay for your health care but for your neighbors on all directions [5 or more]
It is a common misperception to can "play poor" when retired. Most retirees have substantial income in the form of interest, dividends, capital gains, etc. We have been in the 35% bracket every year since retiring with no end in sight.
We have the CVX provided retiree insurance, pay for it and prefer it to the ACA offerings. Depending on your income, not being able to play poor, like many people, the ACA for comparable coverage is about the same. So considering everything, you are getting better insurance for about the same cost as ACA marketplace. You will pay more for ACA also if you want a decent plan and can't claim low income when you retire. A decent plan is important for people who use it, like those with any condition, heart, bones, skin, gastro, diabetic, you name it. Many very healthy looking people are dealing with these costly conditions and need care and medication and it gets worse the older you get. If you are super lucky and healthy and don't mind rolling the dice, sure play poor and get a minimal plan. That's the last thing I would want to skimp on after working all those years.
@db, that is depressing. I have to work 3 extra YEARS just to be able to offset the Medicare premiums you say. Healthcare in the USA is so fu--ing expensive!!!
$1000/month for Medicare premiums that we've been paying into for decades?? Seriously? That's messed up! That's on par with ACA coverage. If that is the case, what's the point? Healthcare in the USA is me$$ed up!
People do retire at less than age 65 with 90 points or greater. Benefit is full contribution to pre-65 healthcare - essentially you pay out of pocket what an employee pays out of pocket - not cheap. You also get full vesting of options and other bonus acronym plans (PSU, RSU, etc) - these are not relevant for a lot of folks. Not aware of any other benefits of the 90 points. Other pearl - if you retire with 89 points, your portion of retirement health coverage (pre-65) increases by 5% - not massive.
I was thinking of getting hired briefly when I turn 90 so I'll have 90 points.
@e3, What do you mean "Don’t plan on CVX doing a thing for you"? In particular, with regards to health insurance premiums when you are retired and on Medicare, and a medigap or other plan. CVX has always provided close to the same measly ~ $100 that goes toward your premium and it is a small percentage and not tied to the insurance market. This tiny amount has been roughly the same for many years as far back as I know. Do you think that a corp. like CVX should provide full insurance or similar to employees benefits for retirees til death like some public institutions? There's a reason that retirees/older folks are not fully covered. Who pays for that? The employees? Shareholders? Please spare us the high brass should give up something for us comments. That's not happening and not relevant to the question.
OP here - thanks everyone
If you have 90 Points or Age 65+, you are generally considered to have met the criteria for retirement, and 100% of your outstanding Performance Shares, RSUs, and SARs will typically vest. At 75–89 Points or Age 60-64 (Pro-rata Vesting), a portion of your Performance Shares and RSUs may vest based on the time worked during the performance period (pro-rata), rather than 100%. Essentially prorated based on the years worked since awarded the shares. And below 75 Points/Under Age 60, unvested LTIP awards are generally forfeited. It's all in BenefitsConnect if you want to delve deeper.
A downside of Medicare Advantage plans is you are restricted to doctors and facilities in their network. Medicare and a gap plan provides flexibility and are widely accepted. If you have a complex health issue and you want to go to a top ranked specialist- say at MD Anderson- you might be out of luck, ditto if you do much traveling out the area covered by the network.
FYI. In the 5 years since I retired, my cost (premiums) for CVX retiree medical has gone up 80%. Don’t plan on CVX doing a thing for you.
I think 90 points also lets you keep a propotional share of your bonus even if you are not on payroll when it is issured (April). If you are lucky enough to get stock options it has vesting implications.
@cd+1, my spouse and I are paying a little less than that, but $1000 per month is a good ballpark figure and will get you coverage similar to your prior Chevron medical insurance.
To answer OP's question, 90 points gets you full Chevron contribution to retirement medical. About $100/mo, for your spouse as well. Not much, but it's free money. Caveat is that in order to get the money, you have to go through Via Benefits for your post-65 medical plans, good news is they are competitive and generally helpful. Yes, good chance you'll end up paying IRMAA. Some key advice: never, ever consider a Medicare Advantage plan unless you intend on being healthy the rest of your life. Advantage is basically Obamacare for retirees. $0 premiums, but they hit you with co-pays on everything, and you have to get permission for anything more than a wellness check. Worst of all, if you decide to switch from Advantage to a regular (supplement) plan, you WILL have to pass a medical exam.
The CVX post retirement medical contribution is about $100. At 65, you are required to be in Medicare and the Part B and IRMAA (can be several hundred dollars) will be automatically deducted from your Social Security, and you will also have to buy a Medicare gap plan. All in, it could easily exceed $1,000 for a couple.
Many retirees pay far more for monthly Medicare /gap plan premiums than they did while they were working. Once you are on Medicare, if the combined total of your Social Security, pension, dividends, etc., on line item 11 of your tax return exceeds $109,000 then you are forced to also pay an additional monthly penalty/surcharge monthly for being a "high earner". You can find your estimated monthly Medicare premium plus the penalty surcharge amount by searching for "2026 IRMAA tables". The 90 points monthly rebate helps with your Medicare premiums but it's no where near enough to cover the IRMAA surchages. Your financial planner can provide some guidance.
But is it worth it?
Yes it’s for retirement premiums. BUT your post-65 premiums are WAY less than during earlier years. Example: there are Advantage plans with zero premiums. And there is Medicare Part B with a wide variety of premiums. Something for everyone.
The thing no one talks about are the IRMA monthly assessments added to your cost if you were a high earner. I was a PG 19 and I pay it!!! So that’s an add-on.