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Essential Strategies for Devon Energy Employees Navigating Job Loss: A Guide to Financial Resilience

Healthcare Provider Update: Healthcare Provider for Devon Energy: Devon Energy Corporation partners with Aetna as its healthcare provider. Aetna offers a range of health plans and services to support the wellness needs of Devon Energy employees and their families. Potential Healthcare Cost Increases in 2026: As healthcare costs continue to rise, Devon Energy could see significant increases in employee healthcare expenses in 2026, attributed in part to anticipated premium hikes associated with the Affordable Care Act (ACA). With some states preparing for rate increases of up to 66% and the expiration of enhanced federal premium subsidies, employees may face out-of-pocket premium escalations of over 75%. The confluence of rising medical costs and changes in healthcare policy may necessitate adjustments in how both employers and employees plan for their health coverage, prompting a careful re-evaluation of benefit strategies in the coming year. Click here to learn more

A seasoned interior designer, earning $100,000 annually, found herself unexpectedly jobless in September. At sixty-three, the professional, based in the Minneapolis area and without any current income due to a recent divorce, confronted not just a personal crisis but a severe financial dilemma. As a Devon Energy employee it is important to be financially prepared for any potential job loss.

Immediate Financial Review and Actions

The initial step post-layoff was to conduct a meticulous evaluation of her finances. With her savings dwindling at an alarming rate of $4,500 monthly, urgent measures were needed. Although her mortgage and car payments were fixed, she reduced her monthly expenses to $3,000 by eliminating non-essential spending on travel, dining, home improvements, and charitable donations. She also explored health insurance options through the Affordable Care Act, securing a zero-premium plan in Minnesota once her previous coverage lapsed.

Long-term Financial Strategy Challenges

Choosing a sustainable income source during this period was challenging. She had several options: draw from her pension, tap into her traditional and Roth IRAs, claim Social Security, or seek lower-paying employment. This decision required professional advice due to its implications on her healthcare costs, taxes, and overall financial health.

Financial Guidance

Pension : Opting for a stable $1,000 monthly pension payment, given her good health and expected long life, rather than a higher but less stable $1,350.

IRA Withdrawals : Prioritizing withdrawals from the traditional IRA, considering tax impacts and eligibility for free health insurance, helped her meet her budget needs while keeping her taxable income under $29,160. The Roth IRA’s tax-free growth remained untouched, shielding it against unforeseen expenses.

Employment Opportunities : Securing a job significantly supplemented her pension income, preserving her retirement funds and enabling her to delay Social Security claims, potentially increasing her future benefits by up to 8% annually until age 70.

These three strategic decisions do not just apply to the designer. Devon Energy employees facing job losses should take these decisions into careful consideration when planning how to manage unemployment. Utilizing your resources can make all the difference when faced with unexpected job losses.

Secured Future and Continued Stability

Her proactive financial planning bore fruit when she was hired as a kitchen designer by a home improvement chain, earning around $46,000 annually. This role not only provided her with a stable income and health benefits but also allowed her to continue contributing to her IRAs and defer Social Security benefits, thus securing her financial status.

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The journey of this interior designer underscores the importance of adaptability and financial resilience. Through careful resource management, professional guidance, and exploring job opportunities, she crafted a robust financial plan to navigate the challenges posed by unexpected layoffs.

Additional Resources

Engaging with skilled financial journalists and advisors can provide the tailored support needed to maneuver through complex financial landscapes effectively.

For Devon Energy employees, especially those nearing retirement, diversifying income sources by engaging in part-time consultancy within their fields can significantly reduce financial risks. This approach not only provides a financial shield but also maintains industry relevance, crucial for securing new job opportunities or projects.

Managing finances after a sudden job loss is akin to navigating a ship through a storm. Initially, it's smooth sailing with a steady income, but job loss necessitates immediate fiscal prudence. Leveraging resources like pensions, IRAs, and potential new employment helps chart a course to calmer waters, assisting in a well managed journey toward retirement despite unexpected challenges.

What is the primary purpose of the 401(k) Savings Plan at Devon Energy?

The primary purpose of the 401(k) Savings Plan at Devon Energy is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax or after-tax basis.

How can employees at Devon Energy enroll in the 401(k) Savings Plan?

Employees at Devon Energy can enroll in the 401(k) Savings Plan by logging into the employee portal and completing the online enrollment process during the designated enrollment period.

What types of contributions can employees make to the Devon Energy 401(k) Savings Plan?

Employees at Devon Energy can make pre-tax contributions, Roth (after-tax) contributions, and, if eligible, catch-up contributions to the 401(k) Savings Plan.

Does Devon Energy offer any matching contributions to the 401(k) Savings Plan?

Yes, Devon Energy offers a matching contribution to the 401(k) Savings Plan, which is designed to encourage employees to save for retirement.

What is the vesting schedule for employer contributions in the Devon Energy 401(k) Savings Plan?

The vesting schedule for employer contributions in the Devon Energy 401(k) Savings Plan typically follows a graded vesting schedule, meaning employees gradually earn ownership of the company's contributions over time.

Are there any fees associated with the Devon Energy 401(k) Savings Plan?

Yes, there may be administrative fees associated with the Devon Energy 401(k) Savings Plan, which are disclosed in the plan documents provided to employees.

Can employees at Devon Energy take loans against their 401(k) Savings Plan balance?

Yes, employees at Devon Energy may be able to take loans against their 401(k) Savings Plan balance, subject to the plan's terms and conditions.

What investment options are available in the Devon Energy 401(k) Savings Plan?

The Devon Energy 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to diversify their retirement savings.

How often can employees change their contribution amounts to the Devon Energy 401(k) Savings Plan?

Employees at Devon Energy can change their contribution amounts to the 401(k) Savings Plan at any time, subject to the plan's guidelines.

What is the minimum age requirement to participate in the Devon Energy 401(k) Savings Plan?

The minimum age requirement to participate in the Devon Energy 401(k) Savings Plan is typically 21 years old, but employees should refer to the plan documents for specific details.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Devon Energy Pension Plan Devon Energy does not specifically offer a traditional defined benefit pension plan but provides retirement benefits through their 401(k) plan, which includes additional company contributions. The company contributes a percentage of the employee's eligible compensation to their 401(k) account each quarter, regardless of whether the employee contributes. This contribution is designed to supplement the employees' savings, ensuring they have a robust retirement fund. Devon Energy 401(k) Plan The Devon Energy 401(k) Incentive Savings Plan allows employees to contribute 1% to 50% of their eligible pay on a pre-tax basis, Roth after-tax basis, or a combination of both, up to the IRS limits. Employees aged 50 or older can make additional catch-up contributions. Devon Energy matches 100% of the employee contributions up to 6%, based on years of service, making it a significant part of the retirement savings strategy for employees.

Devon Energy announced the layoff of approximately 300 employees, representing around 9% of its workforce, as part of a broader effort to reduce general and administrative costs by $150 million to $200 million by 2024. This restructuring follows a challenging period for the energy sector, despite recent increases in oil prices. The layoffs are part of a strategy to streamline operations, focus on core assets, and enhance the company's financial stability. Additionally, Devon Energy has continued its disciplined cash-return business model, focusing on generating free cash flow and returning capital to shareholders. They have also announced preliminary plans for 2024, including the continuation of their fixed-plus-variable dividend strategy, which has been a key component of their financial approach since their merger with WPX Energy.

Stock Options and RSUs: Devon Energy offers a combination of stock options and RSUs to its employees under the Long-Term Incentive Plan (LTIP). This plan has been in place and was amended as of 2024. Employees eligible for these awards typically include executive officers, directors, and other key employees within the company. The awards are designed to vest over a period, usually tied to continued employment and performance metrics. RSUs (Restricted Stock Units) at Devon Energy are granted as part of the LTIP and typically vest over a multi-year period. The RSUs represent a promise to deliver shares of Devon Energy stock to employees upon meeting specific vesting conditions. For example, RSUs granted in 2022, 2023, and 2024 usually vest after three years, encouraging employees to stay with the company long-term. These RSUs do not require employees to purchase the shares; instead, they are given shares once the units vest.

Devon Energy offers a comprehensive set of health benefits to its employees, focusing on ensuring both physical and mental well-being. For the years 2022, 2023, and 2024, the company's health benefits package includes medical, dental, and vision coverage, all starting from the first day of employment for regular full-time, part-time employees, and interns. Healthcare-Related Terms and Acronyms: PPO (Preferred Provider Organization): Employees can choose between PPO and Premier plans, with differences in deductible amounts and coverage percentages for services like preventive care and major services. UBreathe Program: A tobacco cessation program that helps employees avoid a tobacco surcharge on their medical insurance if they meet specific requirements. VSP (Vision Service Plan): Administers the vision coverage, offering annual exams and allowances for lenses and frames. Recent Employee Healthcare News: Devon Energy has placed significant emphasis on wellness through various programs and facilities. For example, "The Well," a wellness center at their Oklahoma City headquarters, provides access to state-of-the-art fitness equipment, group classes, and wellness resources. The company also offers a near-site primary care clinic, "The Doc," which provides advanced medical care, behavioral health services, and physical therapy. Additionally, Devon Energy's commitment to employee wellness is evident in their support for flexible spending accounts and comprehensive dental and vision coverage options, designed to cater to a wide range of employee needs

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For more information you can reach the plan administrator for Devon Energy at 333 W Sheridan Ave Oklahoma City, OK 73102; or by calling them at (405) 235-3611.

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