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Healthcare Provider Update: Healthcare Provider for Occidental Petroleum Occidental Petroleum collaborates with Lyra Health to provide enhanced mental health benefits. This partnership offers employees access to cost-free mental and emotional healthcare, focusing on making effective services convenient and accessible. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs for employees at Occidental Petroleum are expected to rise significantly due to various market pressures. A recent forecast indicates an overall increase of approximately 8.5% in healthcare spending, driven by rising hospital and health system operating costs, along with increased demand for behavioral health services. Additionally, if enhanced federal premium subsidies for ACA marketplace plans are allowed to expire, many employees could face drastic hikes in their out-of-pocket costs. This scenario underscores the need for proactive planning and strategic adjustments in employee healthcare benefits amid a shifting economic landscape. Click here to learn more
For Occidental Petroleum employees and retirees, understanding key investment terms like portfolio, stock, bond and mutual funds is important - and working with an expert like Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement Group, can help you tailor a plan that fits your Retirement goals,' he said.
'Occidental Petroleum employees and retirees should understand risk, return and diversification in investing, and Tyson Mavar, a representative of the Retirement Group, a division of Wealth Enhancement Group, can help structure investments to achieve long-term financial security,' he said.
In this article we will discuss:
1. Typical investment components are stocks, bonds and cash.
2. Describe how mutual funds and ETFs diversify and reduce risk for investors.
3. Understand investment terms such as dividends, yield and market trends.
Just left Occidental Petroleum and started investing? You may have heard unfamiliar terms. We therefore created this glossary to help Occidental Petroleum employees and retirees become more confident investors.
Portfolio
The assets of someone or an organization are called a portfolio. A portfolio contains typically several asset classifications including stocks, bonds and cash. That includes your Occidental Petroleum pension, 401(k), lump sum and annuity payments upon retirement. The asset allocation of a portfolio depends typically on investor risk aversion, time horizon and investment objectives.
Stock
Stocks are instruments that represent ownership in a business. Shares in the benefits package for most Occidental Petroleum employees come with time in the workforce. Any shareholder can get a cut of the company's assets and profits. Shareholders are both beneficiaries and losers of their position - they win if the company succeeds and lose money if it fails.See how principal value and return on investment of stocks fluctuate with respect to market conditions. Shares transferred may have a value greater than or lower than their initial price.
Bond
The government agency or corporation is issuing a bond to raise money for current operations or new projects. Investors buying bonds become the issuer's creditors. Bondholders typically get interest payments periodically. Their amounts depend on the coupon rate, which is a fixed annual interest rate. These interest rates could also affect your Occidental Petroleum settlement sum and annuity. Absent issuer default, bondholders should receive the full par value of the bond at the maturity date specified.The principal of bonds may change depending on market conditions. Prematurely redeemed bonds might be worth more or less than their face value.
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Cash
Another investment or asset is cash. It consists of low-risk and liquid alternatives to money and currency.Typical alternatives to currency include savings accounts, certificates of deposit/CDs, and U.S. Treasury bills.The FDIC insures certificates of deposit (CDs) and bank savings accounts with generally fixed interest rates up to USD 250,000 per depositor per insured institution.T-rex securities are backed to the full faith and credit of the government for timely principal and interest payments.
Mutual Fund
It is a grouping of stocks, bonds and / or other securities purchased and / or managed by an investment company on behalf of many investors. The net asset value (NAV) of the underlying securities determines the price at which shares are purchased from and sold back to the investing company at the end of each trading day. Employees of Occidental Petroleum have access to mutual funds managed by competent people and a broad investment mix. Diversification reduces risk but does not ensure a profit or prevent investment loss. Understand diversity to ensure a stress-free Occidental Petroleum retirement.
Exchange-Traded Fund
A portfolio of assets prepared by an investment firm is called an exchange-traded fund (ETF). Unlike mutual funds however, ETF shares can be traded throughout the day on stock exchanges just like individual equities and the price may be higher or lower than the NAV depending on supply and demand. ETFs usually have low expense ratios but you have to pay a commission to buy or sell them - and your overall costs may be higher if you trade frequently.
The return and principal value of mutual funds and ETFs changes with the market. Shares transferred may have a value greater than or lower than their initial price. Check prospectus carefully before investing to understand fund investment objectives, risks, fees and expenses. Read the document before investing.
Dividends
Dividends are distributions by a company of its earnings to its shareholders - typically quarterly - in cash or additional equity shares. The dividend per share is decided by the board of directors of the corporation. An important tax consideration for buyers of Occidental Petroleum dividends with lump sum payments is often not thought of. Many investors consider dividend payments a sign of a company's health and future prospects.
The yield on a dividend investment is high. Lower volatility and more stable returns mean investors must be prepared for periods when dividend payers detract from a stock portfolio. Profitable economic, market and political factors may affect a company's dividend payout. Generally speaking, dividends are unsecured and can be changed or eliminated.
Yield
Usually, the yield on an investment represents the current income received. Yield for a stock equals the sum of all annual dividends divided by the current share price. Yield on a bond: divide the annual interest rate by the current pricing. The return is comprised of price appreciation and depreciation and is not related to yield. Investments with a higher yield target involve more risk.
Index
A statistical composite called an index tracks the long-term evolution of economic conditions (like inflation) or financial markets. Many different indices are available for assessing how an asset performed. The S&P 500 Index is considered representative of the U.S. equity market overall.An unmanaged index does not necessarily reflect investment performance. No one can own an index directly. Past performances do not indicate future results. The real results could be different.
Bear/Bull Market
Typically a bear market involves falling asset prices that drop 20% or more in several major market indexes over a period of months or more. A bull market is a period of rising prices and investor optimism that lasts for months or years. All these market fluctuations could affect investor attitudes and actions.
Added Fact:
Occidental Petroleum employee or retiree looking to learn more about investing should know about required minimum distributions (RMDs). RMDs are the minimum amounts that people must take out of retirement accounts - 401(k)s and traditional IRAs - by age 72, the IRS said in 2023 (IRS, updated 2023). Withdrawing the RMD may be punishable. Occidental Petroleum employees and retirees need to understand RMDs when planning investments and preparing for retirement to avoid IRS penalties and interest rates.
Added Analogy:
Knowing investment terms for Occidental Petroleum employees and retirees is like having an organized toolbox for a craftsman. All terms are tools that help investors navigate the maze of financial markets. Just as a craftsman needs a hammer and a wrench to drive in nails and a wrench to tighten bolts, understanding terms like portfolio, stock, bond, cash, mutual fund, ETF, dividends, yield, index and bear/bull market provides investors with the tools to build a secure and prosperous financial future. Familiarizing themselves with these terms allows Occidental Petroleum employees and retirees to invest like craftsmen - picking the right tool for the job and building a long-term portfolio (Author, Date).
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Sources:
1. Johns Hopkins University Human Resources. Retirement Choice Glossary . 2019, hr.jhu.edu/wp-content/uploads/2019/06/RetirementChoiceGlossary.pdf?utm_source=chatgpt.com .
2. Protective Life. 'Retirement Glossary: Terms You Should Know.' Protective Life , 2023, protective.com/learn/retirement-glossary-terms-you-should-know?utm_source=chatgpt.com .
3. Carbon Collective. 'Retirement Planning Glossary | 20 Retirement Terms You Should Know.' Carbon Collective , 2023, carboncollective.co/sustainable-investing/retirement-planning-glossary?utm_source=chatgpt.com .
4. Internal Revenue Service. 'Retirement Topics - Required Minimum Distributions (RMDs).' IRS , 2023, irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds?utm_source=chatgpt.com .
5. Charles Schwab. 'IRA Withdrawals: Required Minimum Distributions.' Charles Schwab , 2023, schwab.com/ira/traditional-ira/withdrawal-rules/required-minimum-distributions?utm_source=chatgpt.com .
What are the key provisions of the Occidental Petroleum Corporation Retirement Plan that employees should understand to maximize their benefits, and how does the company structure its contributions relative to employees' earnings? As employees of Occidental Petroleum Corporation consider their retirement planning, it's vital to grasp how the company's contributions function, particularly concerning the wage base and annual earnings limits.
Key Provisions of the Occidental Petroleum Corporation Retirement Plan: The Occidental Petroleum Corporation Retirement Plan is fully funded by the company, with contributions based on an employee's annual earnings. The company contributes 7% of annual earnings up to the Social Security wage base ($137,700 in 2020) and 12% on earnings above the wage base. This structure is designed to help employees build substantial retirement savings. The plan's benefit limits align with IRS regulations, and employees should be aware of how these contributions are applied based on annual earnings limits to maximize their benefits(Occidental_Petroleum_Co…).
How can Occidental Petroleum Corporation employees manage their investment options within the Retirement Plan, and what resources does the company provide to help them make informed decisions? The investment options available through the Occidental Petroleum Corporation Retirement Plan serve as a significant tool for employees wishing to tailor their retirement savings according to their financial goals and risk tolerance. Understanding these options can be complex and requires an in-depth exploration of available funds, associated risks, and projected performance.
Managing Investment Options: Occidental Petroleum employees have control over how contributions to their Retirement Plan are invested. The plan offers various investment funds, including bond and stock market index funds, and target date funds. Employees can manage their investment elections through the online platform, oxy.voya.com, which also provides fund performance data and advice resources, such as Online Advice and Professional Management services, to assist employees in making informed decisions(Occidental_Petroleum_Co…).
In what ways do vesting schedules impact employees' retirement benefits at Occidental Petroleum Corporation, and what rights do employees have under the Employee Retirement Income Security Act (ERISA) regarding these benefits? Navigating the vesting schedule can make a profound difference in the go-forward retirement landscape for employees. Occidental Petroleum Corporation offers a structured approach to vesting, impacting when benefits are owned outright, and understanding the implications of ERISA for retirement planning is essential for all employees.
Impact of Vesting Schedules: Occidental Petroleum's Retirement Plan vests fully after three years of service. Employees are always fully vested in any Rollover accounts. Vesting schedules impact when employees can fully claim their retirement benefits, with protections under ERISA that guarantee the right to earned benefits. Employees who leave before vesting forfeit the nonvested portion of the company’s contributions(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
What are the distribution options available for employees of Occidental Petroleum Corporation when they reach retirement age, and how do these options affect their financial planning? The variety of distribution options at Occidental Petroleum Corporation can create a much more personalized retirement plan, allowing employees to consider how best to receive their benefits while factoring in tax implications and future income needs.
Distribution Options at Retirement: Employees reaching retirement age (60) have multiple distribution options from the Retirement Plan, including lump sum payments and annuity options. These choices impact financial planning, as each option has different tax and income implications, allowing employees to tailor their benefits to their future financial needs(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
How does Occidental Petroleum Corporation support employees who experience disability, and what provisions are in place for continuing retirement contributions during such periods? Understanding the support structure provided by the company, specifically in relation to short-term and long-term disability, is crucial for employees who may find themselves in unexpected circumstances. It’s important for them to know whether retirement contributions will continue during their disability or if they might need to make adjustments to their financial planning.
Disability and Retirement Contributions: Occidental Petroleum continues to contribute to the Retirement Plan if an employee is receiving short-term disability benefits. The contributions are based on the employee's actual pay during the disability period. This provision ensures that retirement savings can continue during times of temporary disability, supporting long-term financial planning(Occidental_Petroleum_Co…).
How can employees at Occidental Petroleum Corporation ensure their beneficiary designations remain current and what are the implications of these designations for estate planning? The process of maintaining accurate beneficiary designations is critical for the smooth transition of retirement benefits, and employees must be aware of how changes in personal circumstances can impact these designations.
Beneficiary Designations: Employees should regularly update their beneficiary designations to ensure their retirement benefits are directed as desired upon their death. Changes in personal circumstances such as marriage, divorce, or the death of a previously designated beneficiary should prompt an update. Failure to do so may result in unintended allocations(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
What are the specific eligibility requirements for the Occidental Petroleum Corporation Retirement Plan, and how do these requirements differ for various employee categories, such as full-time versus part-time employees? Recognizing the nuances of eligibility criteria within the retirement plan is essential for employees to understand when they can begin to participate and what contributions may apply, especially if they transition between roles.
Eligibility Requirements: Full-time and part-time non-union employees and some union-represented employees are eligible to participate in the plan. Contributions begin automatically on the first day of the month of employment or eligibility. Understanding the specific eligibility requirements, especially for employees transitioning between full-time and part-time roles, ensures accurate participation and benefit accumulation(Occidental_Petroleum_Co…).
How can employees reach out to Occidental Petroleum Corporation for assistance regarding their Retirement Plan benefits, and what are the best practices for ensuring their inquiries are addressed promptly? Effective communication with the company is key during the retirement planning process. Employees should know how to navigate company channels to maximize their understanding of benefits available to them.
Contacting Occidental Petroleum for Assistance: Employees can manage their retirement plan and address inquiries through the Oxy Retirement Service Center and the oxy.voya.com platform. Best practices for ensuring prompt responses include using the appropriate online tools and staying informed about plan updates and changes(Occidental_Petroleum_Co…).
What are the tax implications of distributions from the Occidental Petroleum Corporation Retirement Plan, and how can employees plan accordingly to minimize their tax burden during retirement? Having a comprehensive understanding of how taxes will impact withdrawals is crucial for employees as they strategize their retirement income, and these tax considerations can play a significant role in long-term financial planning.
Tax Implications of Distributions: Distributions from the Occidental Petroleum Retirement Plan are subject to standard federal and state taxes, including required minimum distributions (RMDs) starting at age 72. Employees should consider consulting a tax advisor to minimize tax burdens and maximize retirement income by understanding the specific tax consequences of various distribution options(Occidental_Petroleum_Co…).
How does Occidental Petroleum Corporation's retirement plan structure address the needs of employees transitioning from active service to retirement, particularly in terms of investment performance and management of existing accounts? As employees consider retirement, they should be well-informed about how the company manages contributions already made, ensuring that their investment strategy aligns with their anticipated retirement lifestyle and goals.
Transition from Active Service to Retirement: Occidental Petroleum supports employees transitioning to retirement by continuing contributions and offering a range of investment options that align with long-term financial goals. This structure allows employees to manage their investments effectively during retirement, ensuring that the plan remains aligned with their financial objectives(Occidental_Petroleum_Co…).
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