It is crucial for Chevron employees, particularly those who reside in Texas, to understand how interest rates can impact your lump-sum.
Chevron interest rates decreased by 0.05% in the most influential segment for those who commence their benefit in December 2021. While rates short-term and medium-term rates rose over the last month, the lower average rate will result in slightly higher lump-sums for those retiring in December. When Chevron employees elect the month they would like to begin their pension, Chevron looks back to the third, fourth, and fifth month's rates to calculate the rates used for the pension disbursement. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship. Through the pandemic, interest rates dropped dramatically which has greatly increased many lump sum payments. This trend culminated in record lows for individuals who commenced their benefits in December of 2020. However, since December, rates have increased, causing a reduction in pension lump-sums.