NOTICE AND SEVERANCE PAY PLAN - FEBRUARY 19, 2021 - MYINFO
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
NOTICE AND SEVERANCE PAY PLAN February 19, 2021
NOTICE AND SEVERANCE PAY WEBINAR • All participants have been placed on mute • For questions, use the Q&A feature • For technical difficulties, use the Chat feature
AGENDA
Notice and Severance Pay Plan (NSPP) Other Retirement Plans
Medical, Dental, Vision, Retiree Medical, COBRA Retention Payments
Flexible Spending Accounts Vacation
Health Savings Account Other Programs
Life Insurance and Disability Coverages Immigration
Savings Plan Unemployment Insurance
Supplemental Retirement Plan II Transition Services
Supplemental Savings Plan
Character Responsibility Commitment | 3NOTICE AND SEVERANCE PAYMENTS
• Payments on regular paydays in regular base pay amounts
• Payroll deductions continue (i.e., taxes, benefit deductions)
• Payroll direct deposit continues
• To make a change go to MyInfo>Employee Self Service>My Payroll>Direct Deposit
• All benefits continue through Notice; medical, dental, and vision continue through
Severance
• Aetna Resources For Living (EAP) continues through Severance
Character Responsibility Commitment | 4NOTICE AND SEVERANCE – OPTION B
• Notice only (two months)
• No Severance
• Full vesting in Savings Plan
• Participation in all benefit plans and programs ceases at end of Notice
• Regular Retiree Medical Eligibility
• Age 55 with 10 years of service at the end of Notice
• If you are eligible for Retiree Medical coverage and you waive coverage at this time, you
must show proof of loss of other coverage before you may enroll, in the future, in CRC
Retiree Medical coverage.
• Applies only if you choose to not sign and return Separation Agreement and
General Release
Character Responsibility Commitment | 5NOTICE AND SEVERANCE – OPTION A
• Notice (two months)
• Severance
• Full vesting in Savings Plan
• Medical, dental and vision continue through Severance
• Enhanced Retiree Medical Eligibility
• Requires a signed “ Separation Agreement and General Release” to receive Severance
• Service calculation for Severance
• Based on service through end of Notice Period
• Rounds to nearest whole year:
• For example:
• 4 years + 5 months = 4 years
• 4 years + 7 months = 5 years
Character Responsibility Commitment | 6NOTICE AND SEVERANCE – OPTION A
• Provides two of months Notice Pay plus Severance Pay up to ten months depending on years of CRC service
Years of Service Notice Severance
Less than 4 years 2.0 months 1.0 month
4 years 2.0 months 1.5 months
5 years 2.0 months 2.0 months
6 years 2.0 months 2.5 months
… … …
20 or more 2.0 months 10.0 months
Character Responsibility Commitment | 7MEDICAL, DENTAL AND VISION – OPTION “A” ONLY
• During Severance Payments
• If you will not be eligible for the CRC Retiree Medical Plan at the end of Severance Payments
• Participation in medical, dental and vision plans continues at employee rates on an after-tax basis
• Medical, dental and vision plan contributions will continue to be deducted from NSPP payments
• May change from an HMO to Aetna plan if relocate out of service area
• Note: If you are or will be eligible for Medicare during Severance, you should enroll in Medicare Part B as
soon as you are eligible for Medicare
• If prior to the end of Severance, you or a covered dependent will be eligible for Medicare and
you will be eligible for Retiree Medical coverage
• Participation in dental and vision plans at employee rates continue on an after-tax basis and continue to
be deducted from NSPP payments
• Medical payroll deductions cease at the end of Notice
• Continued medical coverage will be under the CRC Retiree Medical Plan immediately following Notice
• Monthly contributions for Retiree Medical coverage will be sent to PayFlex (CRC’s billing administrator)
• You and/or your Medicare-eligible dependent should enroll in Medicare Part B, to be immediately
effective following Notice (or attainment of Medicare eligibility, if later)
Character Responsibility Commitment | 8RETIREE MEDICAL AND DENTAL ELIGIBILITY – OPTION “A” ENHANCED ELIGIBILITY
• Enhanced eligibility
• 30 or more years of service, or
• Age 50 or older with at least 5 years of service credit, with combined age and service = 65+
• Examples:
Age 51 years, 8 months Age 58 years, 2 months
+ +
Service 14 years, 6 months Service 7 years, 1 months
= 66 years, 4 months = 65 years, 3 months
• If you meet the criteria above, then once you reach age 55 you may be eligible to enroll for retiree coverage
Character Responsibility Commitment | 9RETIREE MEDICAL COVERAGE
• Two options available under the CRC Retiree Medical Plan
• Both options are similar to the plan option for active employees
• Aetna PPO – available nationally
• Once eligible for Medicare, Medicare becomes your primary coverage, and the CRC plan becomes
secondary
• Kaiser HMO – available in California
• Traditional Plan for non-Medicare eligible participants, and
• Senior Advantage Plan (a Medicare Advantage HMO) for Medicare-eligible participants
• You and/or your spouse must enroll in Medicare Part A (hospital) and Part B (medical) as soon as
you become eligible for Medicare. If you do not timely enroll for Medicare Part B, Medicare will
impose a lifetime financial penalty
• You do not need to enroll in a Medicare Part D prescription coverage plan
Character Responsibility Commitment | 10RETIREE MEDICAL CONTRIBUTIONS
• Retiree Medical Plan contributions are a multiple of the Retiree Medical Base Rate based on a
combination of age and service as of the last day of NSPP payments
Points Non-Medicare Medicare
Eligible Eligible
65 – 69 4 times 2 times
70 – 74 3 times 2 times
75 – 79 2 times 2 times
80 or more 1 times 1 times
2021 Monthly Retiree Medical Base Rates
Retiree Only Retiree + One Family
Aetna $172 $344 $516
Kaiser Pre 65 $140 $280 $420
Kaiser Medicare $100 $200 $300
Character Responsibility Commitment | 11RETIREE DENTAL COVERAGE
• Aetna is the only available Retiree Dental option
• Plan is similar to the Aetna Dental Plan for active employees
• Retiree Dental coverage is not subsidized, so retirees pay the full cost of coverage
2021 Monthly Retiree Dental Rates
Retiree Only Retiree + One Family
$57 $114 $171
Character Responsibility Commitment | 12MEDICAL, DENTAL AND VISION PLANS - COBRA
• COBRA continuation coverage available following NSPP payments
• Up to 18 months
• COBRA notice mailed to home at end of NSPP
• Charge is 102% of full cost
• If you are eligible for Retiree Dental coverage, you may elect COBRA dental for up to 18 months prior to
enrolling in Retiree Dental coverage
2021 Monthly COBRA Rates
Employee Only Employee + One Family
Aetna Core $827.22 $1,655.46 $2,482.68
High Deductible Medical $694.62 $1,389.24 $2,083.86
Kaiser $542.72 $1,085.45 $1,736.72
United HealthCare $857.19 $1,714.32 $2,760.15
Dental $42.84 $85.68 $147.90
Vision Basic $3.69 $7.03 $10.31
Vision Plus $9.56 $18.17 $26.67
Character Responsibility Commitment | 13FLEXIBLE SPENDING ACCOUNTS
• Elected 2021 contributions continue through Notice
• Expenses incurred during the period contributions are made may be submitted for
reimbursement
• Reimbursement rules:
• Health Care – as incurred through end of Notice, up to full election amount
• Dependent Care – as incurred through end of Notice, up to balance in account
• After Notice, Health Care FSA election may continue (after-tax) through COBRA
• Final submission deadline for 2021 spending accounts is March 31, 2022
Character Responsibility Commitment | 14HEALTH SAVINGS ACCOUNT
• Payroll deduction of HSA contributions will cease at the end of Notice
• You may continue to make direct contributions to your HSA on an after-tax basis, as long as
you are enrolled in a high deductible health plan
• You will be responsible for the monthly administration fee beginning after Notice
• Your account is eligible to be moved to other banking institutions that offer HSA accounts
Character Responsibility Commitment | 15LIFE AND DISABILITY INSURANCE
Coverages/participation end on last day of Notice
• Life insurance
• Conversion to an individual policy available – Contact Prudential within 31 days following
your last day of Notice at 800-778-3827
• Group Universal Life Insurance (GUL)
• Portable to an individual policy – contact Prudential at 800-562-9874
• Accidental Death and Dismemberment (AD&D)
• Conversion to an individual policy available – Contact AC Newman within 31 days following
your last day of Notice at 877-226-8711
• Occupational Accidental Death and Dismemberment (OAD&D)
• No conversion available
• Short-term disability
• Long-term disability
Character Responsibility Commitment | 16CRC SAVINGS PLAN
• Your contributions, the Company’s matching contributions and the Company’s
retirement contributions cease as of last day of Notice
• All contributions and Company Matching applied to vacation payout
• Vesting
• Employee and Company matching contributions – always 100% vested
• Company retirement contributions – 100% vested at end of Notice
• Eligible for distribution following last day of Notice
Character Responsibility Commitment | 17CRC SAVINGS PLAN – LOANS
• Payroll deductions will continue for loan repayments during Notice and Severance
• Fidelity will send information regarding your loan status approximately 30 to 60
days following Notice and Severance
• Can make loan payments directly to Fidelity to continue to pay off outstanding loans
• If monthly payments not set up at Fidelity, and outstanding loan balance not paid in full,
loan will default and be treated as taxable distribution
• Non-repayment does not affect your FICO score
• Contact Fidelity at 800-835-5097 to discuss repayment options
Character Responsibility Commitment | 18CRC SAVINGS PLAN – DISTRIBUTION
• You have the option to defer distribution until age 70 ½
• Distribution available following Notice
• Request distribution via Fidelity website at 401k.com or call 800-835-5097
• Distribution Options
• Cash distribution
• Partial cash distribution and defer balance
• Rollover to IRA, Roth or other qualified plan
• If you take a distribution from your 401k with an outstanding loan balance, the
outstanding loan balance will be declared a partial distribution and will be taxable in
the year in which the distribution occurred
Character Responsibility Commitment | 19CRC SAVINGS PLAN – DISTRIBUTION TAX CONSIDERATIONS
• Before-tax account balances are subject to taxation unless rolled over to an
IRA or another employer’s qualified plan
• 10% additional federal early withdrawal penalty generally applies unless:
• Payments for life or life expectancy (annuities)
• You leave employment in the year you attain age 55 or later
• After attainment of age 59 ½
• Direct transfer to an IRA or another employer’s qualified plan
• Taxable amounts not directly transferred to an IRA or another employer’s
qualified plan are generally subject to a mandatory 20% federal withholding,
and mandatory state withholding in some states
• Special tax treatment may be available
• Consult with a qualified tax advisor regarding your best alternatives,
considering your personal situation
• Contact Fidelity for more information
Character Responsibility Commitment | 20SUPPLEMENTAL RETIREMENT PLAN II (SRP II)
• All SRP II participants are fully vested in account balance
• Distribution
• According to your previously elected option
• Total Cash Payment – made in the first 90 days of the year following the year in which your
termination date occurs
• Annual Installments – the first installment will occur in the first 90 days of the year following the
year in which your termination date occurs
• If your balance is $50,000 or less or if you did not submit a distribution election within
the first 30 days of your SRP II plan entry date, you will receive a total cash payment in
the first 90 days of the year following the year in which your employment ends
• Interest allocations will continue to accrue monthly at the prevailing rate of return
(currently 5-year Treasury Bills plus 2%) through the end of the processing month
prior to the month in which a payment is processed
• Your payments will be taxable to you as ordinary income and are not eligible to be
rolled over to an IRA or another employer’s qualified or nonqualified plan
Character Responsibility Commitment | 21SUPPLEMENTAL SAVINGS PLAN (SSP)
• This is a non-qualified plan to provide company matching and retirement
contributions missed due to the IRS qualified plan limits
• Distribution
• According to your previously elected option
• Total Cash Payment – made in the first 90 days of the year following the year in which your
termination date occurs
• Annual Installments – the first installment will occur in the first 90 days of the year following the
year in which your termination date occurs
• If your balance is $50,000 or less or if you did not submit a distribution election within
the first 30 days of your SSP plan entry date, you will receive a total cash payment in the
first 90 days of the year following the year in which your employment ends
• Your payments will be taxable to you as ordinary income and are not eligible to be
rolled over to an IRA or another employer’s qualified or nonqualified plan
Character Responsibility Commitment | 22OTHER RETIREMENT PLANS
• Former Tidelands and THUMS employees may have a vested benefit under
either the Tidelands Oil Production Company Employees’ Pension Plan or the
THUMS Long Beach Company Pension Plan
• For information regarding your THUMS or Tidelands pension benefit, contact
CRC Pension Service Center at 888-909-4156
Character Responsibility Commitment | 23RETENTION PAYMENTS
• You will receive:
• Full Retention payment for the quarter ending March 31st
• Prorated Retention payment for the quarter ending June 30th
• Payments will be made at the same time as those for active employees
Character Responsibility Commitment | 24VACATION
• Vacation accruals cease as of your last day of Notice
• Accrued and unused vacation paid following Notice
Character Responsibility Commitment | 25OTHER PROGRAMS
• Employee Assistance Program – services are provided through Aetna Resources for
Living 800-342-8111 or resourcesforliving.com; Username: CRC; Password: eap
• Up to 5 face-to-face sessions
• Obtain help for a variety of situations
• Services remain available through the end of Severance payments
• Health Advocate – provides help with a full range of health care issues including
• Finding network providers
• Untangling insurance claims
• Navigating Medicare
• Advocacy services remain available to you and your family members through the end of
Severance payments and while enrolled for retiree medical coverage.
Character Responsibility Commitment | 26IMMIGRATION
• Employees with an active immigration case through CRC will be eligible for a 30-
minute consultation with Fragomen
• Please contact AskPRC@crc.com to request your appointment
Character Responsibility Commitment | 27TRANSITION SERVICES
• Transition Assistance – 2 Options Available
• EDD Rapid Response Team
• Long Beach Area: Pacific Gateway
• www.pacific-gateway.org
• (562) 570-3700
• Kern County: America’s Jobs Center
• www.americasjobcenterofkern.com
• (661) 325-4473
• Lee Hecht Harrison (LHH)
• Jennifer Hamilton of LHH is on the call and will review available services
• Brochure describing the career transition services available included in packet
Character Responsibility Commitment | 28QUESTIONS
Send questions to:
AskPRC@crc.com
Character Responsibility Commitment | 29You can also read
