Plan Administrator:
p.o. box 5546
Concord, CA
94524
925-349-2517
How Oil Volatility Affects Your PG&E Retirement
Oil prices between $50 and $120 per barrel with 80% annualized volatility have created ripple effects throughout the economy over the past six months. Fleet diesel costs and inflation-driven rate case pressures create indirect but meaningful exposure to sustained crude price swings. For PG&E employees focused on long-term financial health, periods of oil-driven economic volatility reinforce the value of diversified strategies that account for how energy markets influence the broader investment landscape. Consulting with a financial advisor can help you understand how energy conditions affect your specific situation and build a plan that adapts accordingly.
With all of the changes at PG&E - including surging interest rates - employees need to know what steps to take before leaving. Retiring, or worse, losing your job, is a monumental (for better or for worse) moment in your life. Your mind is racing, your palms are sweating, and you simply just doesn't know how to operate. The loss of a job, especially for those with over 20 years of service, affects the same receptors in the brain as the loss of a loved one. You have been connected with PG&E for 20 years, and now the relationship is over. Remember to reach out to PG&E HR & Benefits at 925-349-2517 for all PG&E summary plan descriptions.
The same five stages of grief apply for a person going through retirement, job loss, or the loss of a loved one. Denial, anger, bargaining, depression, and acceptance are a part of the framework that makes up our learning to get through the lack of employment.
As the reality of the situation settles, your emotions will be a mess. You might feel upset one minute, and annoyed the next, and it can be tempting to vent your frustrations. Remember, acting upon impulse almost never turns out well, and can make a difficult situation even worse.
Here are a few items to check off as you consider leaving PG&E:
Before making the decision to leave PG&E, it helps to fully understand the retirement benefits you may be walking away from. According to publicly available information, PG&E maintains an active defined benefit pension plan, which provides retirement income based on factors such as years of service and compensation history. PG&E also offers retiree healthcare benefits to eligible employees, which can provide meaningful coverage for those who retire before reaching Medicare eligibility at age 65. When you map out your PG&E benefits alongside your broader retirement strategy, the overall picture becomes much clearer.
1. Sit down and carefully analyze your finances. If you have a spouse or signifigant other, involve them in this process. Avoid doing financial business with friends or family. Money and friendships do not mix.
2. Call your Credit Union or Bank, and consider opening a line of credit against your home equity. Consider opening additional credit cards to create an emergency credit line. As many of you have been employed your whole life, you probably won't think to do this - once you are unemployed, it becomes exceedingly difficult to get credit, making it very important you take this line of action.
3. Go over your 401(k) contributions, if you were making them. Decide whether or not you should increase your contributions for your remaining time on payroll, or cease them entirely to build up more immediate cash. How you proceed may have big tax implications. Depending on when you stop contributing, you may end up in a much higher tax bracket due to your severance payment, unemployment, etc.
4. It's not always wise to file for unemployment immediately after the loss of a job. Depending on the time of year you are laid off, paired with your financial situation, it could be beneficial to wait to file your claim so that your unemployment payments fall in the next tax year, when your overall income is lower due to the fact that you're unemployed. There are an overwhelming number of situations that you want to consider before making a move on this. We recommend speaking with a PG&E-focused retirement specialist to go over your options, at 800-900-5867.
5. Unless you believe your layoff was deserved, speak to a trusted lawyer to go over your options. Venting your anger at managers and colleagues may feel amazing temporarily, but it will damage your career in the long run. You spent all this time building up your relationships at PG&E, why burn them now? Avoid going online even anonymously to berate past PG&E staff & management
6. Have a plan for how to fill the void on your LinkedIn profile and your resume. If you are pursuing a new job, having a job makes it much easier when finding your next adventure. In the mean time, you might consider becoming a consultant until you find a permanent position. You may also find the ability go go back to PG&E as a contractor working on your terms.
7. Figure out what you will tell your PG&E coworkers - create your go-to statement and practice it, so you can say it without becoming too emotional. It will be normal for friends and acquaintances to ask, and we assume you won't want to burst into tears or lash out every time the question is popped. However horrible you feel, it's crucial to remain calm and act professional, and try to avoid doing anything that might hinder your reputation or integrity. Remember to stay professional on social media when discussing PGE
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
PG&E offers two types of pension plans: the Final Pay Pension for employees hired before 2013 and the Cash Balance Pension for those hired after 2012. The Cash Balance Pension Plan credits a percentage of the employee's salary annually to an account that grows with interest. Additionally, PG&E contributes to a 401(k) plan with matching contributions, enhancing the retirement savings of its employees.
Wildfire Mitigation and Safety: PG&E is implementing a comprehensive wildfire mitigation plan, which includes laying off about 2,500 employees to improve operational efficiency (Source: Wall Street Journal). Strategic Focus: The company is focusing on grid safety and reliability. Financial Performance: PG&E reported a 7% increase in net income for Q2 2023, reflecting the success of its safety initiatives (Source: PG&E).
PG&E offers RSUs that vest over time, providing shares upon vesting. Stock options are also available, allowing employees to purchase shares at a fixed price.
/Utility/Utility%203.png?width=1280&height=853&name=Utility%203.png)
