notice and severance pay plan - myinfo documents/nspp presentation...notice and severance pay plan...

NOTICE AND SEVERANCE PAY PLAN

October 4, 2019

Character Responsibility Commitment | 2

AGENDA

Notice and Severance Pay Plan (NSPP) Supplemental Savings Plan

Medical, Dental, Vision, Retiree Medical, COBRA Other Retirement Plans

Flexible Spending Accounts Employee Stock Purchase Plan

Health Savings Accounts Long-Term Incentive Plan

Life Insurance and Disability Coverages Vacation

Savings Plan Other Programs

Supplemental Retirement Plan II


NOTICE AND SEVERANCE PAYMENTS

• Payments on regular paydays in regular base pay amounts

• Payroll deductions continue (i.e., taxes, benefit deductions)

• Payroll direct deposit continues (unless stop form submitted)

• All benefits continue through Notice; medical, dental, and vision continue through Severance

• Aetna Resources For Living (EAP) continue through Severance


NOTICE AND SEVERANCE – OPTION A

• Notice (two months)

• Severance

• Full vesting in Savings Plan

• Medical, Dental and Vision continue through Severance

• Enhanced Retiree Medical Eligibility

• Requires a 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


NOTICE AND SEVERANCE – OPTION A

• Provides two months Notice Pay plus Severance Pay up to ten months depending on years of CRC service

Years of Service Notice Severance

Less than 4 years 2.0 months 1.0 month

4 years 2.0 months 1.5 months



… … …

20 or more 2.0 months 10.0 months


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


MEDICAL, DENTAL AND VISION – OPTION “A” ONLY

• During Severance Payments

• If you will not be eligible for the CRC Retiree Medical Plan at the end of Severance Payments

• Participation in medical, dental and vision plans continues at employee rates on an after-tax basis

• May change from an HMO to Aetna plan if relocate out of service area

• Note: If you are or will be eligible for Medicare during Severance, you should enroll in Medicare Part B as soon as you are eligible for Medicare

• If prior to the end of Severance, you or a covered dependent will be eligible for Medicare and you will be eligible for Retiree Medical coverage

• Participation in dental and vision plans 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)


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 service credit, with combined age and service = 65+

• Examples:

Age 51 years, 8 months

+

Service 14 years, 6 months

= 66 years, 2 months

Age 58 years, 5 months

+

Service 7 years, 6 months

= 65 years, 11 months


RETIREE MEDICAL AND DENTAL ELIGIBILITY – OPTION B

• Immediate enrollment (first of the month following Notice)

• Age 55 with 10 years of service

• If you waive Retiree Medical coverage at this time, you must show proof of loss of other coverage before you may enroll from CRC Retiree Medical coverage.


RETIREE MEDICAL COVERAGE

• Two options available under the CRC Retiree Medical Plan

• Both options are similar to the plan option for active employees

• Aetna PPO – available nationally

• Once eligible for Medicare, Medicare becomes your primary coverage and the CRC plan becomes secondary

• Kaiser HMO – available in California

• Traditional Plan 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


RETIREE MEDICAL CONTRIBUTIONS

• Retiree Medical Plan contributions are a 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

65 – 69 4 times 2 times



80 or more 1 times 1 times

2019 Monthly Retiree Medical Base Rates

Retiree Only Retiree + One Family

Aetna $147 $294 $441

Kaiser $116 $232 $348


RETIREE DENTAL COVERAGE

• Aetna is the only available Retiree Dental option

• Plan is similar to the Aetna Dental Plan for active employees

• Retiree Dental coverage is not subsidized, so retirees pay the full cost of coverage

2019 Monthly Retiree Dental Rates

Retiree Only Retiree + One Family

$49 $98 $147


MEDICAL, DENTAL AND VISION PLANS - COBRA

• COBRA continuation coverage available following NSPP payments

• Up to 18 months

• COBRA notice mailed to home at end of NSPP

• 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

2019 Monthly COBRA Rates

Employee Only Employee + One Family

Aetna Core $769.08 $1,538.16 $2,307.24

High Deductible Medical $645.66 $1,291.32 $1,936.98

Kaiser $498.93 $997.87 $1,596.59

United HealthCare $755.77 $1,511.49 $2,433.56

Dental $40.80 $81.60 $141.78

Vision Basic $3.69 $7.03 $10.31

Vision Plus $9.56 $18.17 $26.67


FLEXIBLE SPENDING ACCOUNTS

• Elected 2019 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 2019 spending accounts is March 31, 2020


HEALTH SAVINGS ACCOUNT

• Payroll deduction of HSA contributions will cease at the 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 $5.00/month

• Your account is eligible to be moved to other banking institutions that offer HSA accounts


LIFE AND DISABILITY INSURANCE

Coverages/participation stop on last day of Notice

• Life insurance

• Conversion to an individual policy available – Contact Prudential within 31 days following your last day of Notice at 800-778-3827

• Group Universal Life Insurance (GUL)

• Portable to an individual policy – contact Prudential at 800-562-9874

• Accidental Death and Dismemberment (AD&D)

• Conversion to an individual policy available – Contact AC Newman within 31 days following your last day of Notice at 877-226-8711

• Occupational Accidental Death and Dismemberment (OAD&D)

• No conversion available

• Short-term disability

• Long-term disability


CRC SAVINGS PLAN

• Your contributions, the Company’s matching contributions and the Company’s retirement contributions cease as of last day of Notice

• All contributions and Company Matching applied to vacation payout

• Vesting

• Employee and Company matching contributions – always 100% vested

• Company retirement contributions – 100% vested at end of Notice

• Eligible for distribution following last day of Notice


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

• Can make loan payments directly to Fidelity to continue to pay off outstanding loans

• If monthly payments not set up at Fidelity, and outstanding loan balance not paid in full, loan will default and be treated as taxable distribution

• Non-repayment does not affect your FICO score

• Contact Fidelity at 800-835-5097 to discuss repayment options


CRC SAVINGS PLAN – DISTRIBUTION

• You have the option to defer distribution until age 70 ½

• Distribution available following Notice

• Request distribution via Fidelity website at 401k.com or call 800-835-5097

• Distribution Options

• Cash distribution

• Partial cash distribution and defer balance

• Rollover to IRA, Roth or other qualified plan

• If you take a distribution from your 401k with an outstanding loan balance, the outstanding loan balance will be declared a partial and will be taxable in the year in which the distribution occurred


CRC SAVINGS PLAN – DISTRIBUTION TAX CONSIDERATIONS

• 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 mandatory state withholding in some states

• Special tax treatment may be available

• Consult with a qualified tax advisor regarding your best alternatives, considering your personal situation

• Contact Fidelity for more information


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 termination date occurs

• Annual Installments – the first installment will occur in the first 90 days of the year following the year in which your termination date occurs

• 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 employment ends

• Interest allocations will continue to accrue monthly at the prevailing rate of return (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


SUPPLEMENTAL SAVINGS PLAN (SSP)

• This is a non-qualified plan to provide company matching and retirement contributions missed due to the IRS qualified plan limits

• 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 termination date occurs

• Annual Installments – the first installment will occur in the first 90 days of the year following the year in which your termination date occurs

• If your balance is $50,000 or less or if you did not submit a distribution election within the first 30 days of your SSP plan entry date, you will receive a total cash payment in the first 90 days of the year following the year in which your employment ends

• 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


OTHER RETIREMENT PLANS

• Former Tidelands and THUMS employees may have a vested benefit under either the Tidelands Oil Production Company Employees’ Pension Plan or the THUMS Long Beach Company Pension Plan

• For information regarding your THUMS or Tidelands pension benefit, contact CRC Pension Service Center at 888-909-4156


EMPLOYEE STOCK PURCHASE PLAN

• Contributions cease as of last day of Notice

• Accumulated contributions will be paid out following Notice

• Purchased stock remains in your account


LONG-TERM INCENTIVES PLAN

• All outstanding long-term incentive awards will be reduced on a prorated basis and become payable following Notice

• Proration is based on the number of days employed during the vesting period

• Payment will be processed by CRC payroll as soon as practicable following Notice


VACATION

• Vacation accruals cease as of your last day of Notice

• Accrued and unused vacation paid as soon as practicable


OTHER PROGRAMS

• Employee Assistance Program – services are provided through Aetna Resources for Living 800-342-8111 or resourcesforliving.com; Username: CRC; Password: eap

• Up to 5 face-to-face sessions

• Obtain help for a variety of situations

• Services remain available through the end of Severance payments

• Health Advocate – 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 Severance payments


NEXT

• Transition Assistance – a Representative from Lee Hecht Harrison will be presenting information following this presentation

• Employment Development Department – a Representative will be presenting information following the Lee Hecht Harrison presentation


QUESTIONS

Send questions to:

[email protected]

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