Top Pension Questions for Occidental Petroleum Employees
These are the most frequently asked questions for Occidental Petroleum employees from our weekly webinars.
1. Question:
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?
Answer:
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.
2. Question: 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?
Answer:
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.
3. Question:
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?
Answer:
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 non-vested portion of the company’s contributions.
4. Question:
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?
Answer:
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.
5. Question:
How does Occidental Petroleum Corporation support employees who experience disability, and what provisions are in place for continuing retirement contributions during such periods?
Answer:
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.
6. Question:
How can employees at Occidental Petroleum Corporation ensure their beneficiary designations remain current, and what are the implications of these designations for estate planning?
Answer:
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.
7. Question:
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?
Answer:
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.
8. Question:
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?
Answer:
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.
9. Question:
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?
Answer:
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.
10. Question:
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?
Answer:
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.