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May 2024 Interest Rates used for Chevron employees

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Company Name For plan years beginning in Year Month First Segment Second Segment Third Segment Plan Type
Chevron All 2024 May 5.18% 5.41% 5.62% CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN
Chevron All 2023 May 4.91% 5.15% 5.34% CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN

Many Chevron employees who are waiting to commence their pension lump-sums, are now seeing a significant decrease in their value. When these interest rates move up or down, your lump sum amount will move in an inverse direction, so if interest rates increase, your lump sum amount will decrease and vice versa. Through the pandemic, interest rates dropped dramatically which greatly increased many lump sum payments. However, since then this trend has shifted, as interest rates have been increasing rapidly, causing a large reduction in pension lump-sum values.

Large increases in interest rates are important if you decide to take the lump-sum option since the calculation for your lump-sum is based on interest rates and your age. Your pension will be calculated based on your last date of employment and benefits start date.

How Do Rate Changes Affect Your Chevron Pension?

Pension pricing is based on interest calculations, which means an adjustment in your retirement date may lead to avoiding a serious financial hit, due to avoiding times with high-interest rates.

Everything else held equal, a higher interest rate will produce a lower lump sum. The exact changes depend on your specific age, but on average a 1% change in rates can equate to an 8% to 12% change in lump sums. On average, a 1% change could increase or decrease your pension lump sum by roughly 10%.

It's important to note that you don't have to commence your pension immediately after you retire. If you wish to delay your commencement you have the ability to defer it until a later date.

Given the current interest rate environment, we highly suggest Chevron employees discuss their options with The Retirement Group and allow us to monitor the rates and keep you up to date on the monthly changes. We can provide a complimentary cash flow analysis to show you how various retirement dates may play out.It is important to remember that every situation is unique and that by getting a cash flow analysis you'll be able to compare different types of pensions and find the best fit for your situation.

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Full Interest Rate update table for Chevron employees

Company Name For plan years beginning in Year Month First Segment Second Segment Third Segment Plan Name

For more information you can reach the plan administrator for Chevron at 6001 bollinger canyon road San Ramon, CA 94583; or by calling them at 713-372-4335.

https://hr2.chevron.com/-/media/hr2/docs/Chevron-2022-Wealth-Benefits.pdf - Page 7, https://hr2.chevron.com/-/media/hr2/docs/Chevron-2023-Wealth-Benefits.pdf - Page 12, https://hr2.chevron.com/-/media/hr2/docs/Chevron-2024-Wealth-Benefits.pdf - Page 15, https://www.chevron.com/-/media/chevron/annual-report/2022/documents/2022-Annual-Report.pdf - Page 8, https://chevron.pensioncharges.com/docs/Chevron-UK-Pension-Plan-2022.pdf - Page 22, https://chevron.pensioncharges.com/docs/Chevron-UK-Pension-Plan-2023.pdf - Page 28, https://hr2.chevron.com/-/media/hr2/docs/Chevron-Employee-Handbook-2023.pdf - Page 20, https://hr2.chevron.com/-/media/hr2/docs/Chevron-Retirement-Plan-2024.pdf - Page 14, https://hr2.chevron.com/-/media/hr2/docs/Chevron-Savings-Investment-Plan-2024.pdf - Page 17, https://hr2.chevron.com/-/media/hr2/docs/Chevron-Health-Benefits-Guide-2024.pdf - Page 23

Per the IRS, for company plan years beginning after December 31, 2007, the applicable interest rates under Section 417(e)(3)(D) of the Code are segment rates computed without regard to a 24 month average. For plan years beginning in 2008 through 2011, the applicable interest rate is the monthly spot segment rate blended with the applicable rate under Section 417(e)(3)(A)(ii)(II) of the Code as in effect for plan years beginning in 2007. For plan years beginning in the stated year, the following rates are the applicable interest rates for the month and year listed for minimum present value computations under Section 417(e)(3)(D) of the Code.

*Please see disclaimer for more information