The New Oxy Time Away Program Our agenda for today By the end of - - PowerPoint PPT Presentation
February 2020 The New Oxy Time Away Program Our agenda for today By the end of this session you The changes we are introducing support our values and culture will learn: Details! How time off and leaves will change, and how those
February 2020
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The changes we are introducing support our values and culture Details! How time off and leaves will change, and how those participating in legacy programs will be affected What you need to do and where to get help
You will be prepared ared for the special ial LTD OPEN ENRO ROLLMEN LLMENT
March ch 2 throu
gh March ch 13
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The new Time Away Program, effective April 1, 2020, impacts:
Special Note: Not all benefits are applicable for all employees. Represented union employees should refer to their collective bargaining agreement to determine benefit eligibility.
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*Represented union employees should refer to their collective bargaining agreement to determine if they are eligible to participate in all or part of this program.
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Weeks
1 13 26 Sick 5 days
Extended ed Illne lness Birth h Parent nt Non-Bi Birth h Parent nt Family ily Care
No limit PTO
5 days sick time per event
Short-term Disability — Weeks 1 to 26 Paid at 50% or 100%, depending on years of service PTO Extended Sick Leave — Weeks 2 through 13 Paid at 100% Short-term Disability — Weeks 14 through 26 Paid at 66.67% LTD LTD Pregnancy 8 weeks paid at 100% PTO and Extended Sick Leave 8 weeks paid at 100%
Bonding Leave 6 weeks paid at 100% (must take within 12 months from birth/placement) Parental Leave 4 weeks paid at 100% (must take within 6 months from birth/placement)
Bonding Leave 6 weeks paid at 100% (must take within 12 months from birth/placement) 2 weeks at 100% (for serious health condition
FMLA unpaid OXY APC Key: Key:
New Birth h Or Placeme ement nt Event
Parental Leave 4 weeks paid at 100% (must take within 6 months from birth/placement)
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Weeks
1 13 26 Sick 5 days
STD STD Birth h Parent nt Non-Bi Birth h Parent nt Family ily Care
PTO
5 days sick time per event; no specific limit on number of events
PTO Short-term Disability — Weeks 2 through 26 Paid at 100% of base pay LTD Pregnancy 8 weeks paid at 100% of base pay Bonding Leave 6 weeks paid at 100% of base pay , not to exceed 240 hours (must take within 12 months from birth/placement) Bonding Leave 6 weeks paid at 100% of base pay, not to exceed 240 hours (must take within 12 months from birth/placement) 2 weeks at 100%
New Birth h Or Placeme ement nt Event
2 weeks at 100% of base pay, not to exceed 80 hours (for serious health condition of family member)
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Legac acy Oxy Legac acy APC Company Paid Program Shor
erm m Disab abili ility ty Exten ended ded Sic ick Leave Shor
erm m Disab abili ility ty Vendor In-house Unum Unum Benefit 50% or 100% of base pay, depending on service 100% of base pay 66.67% of base pay Elimination Period None, STD retroactive to day one after five days of Sick Time Five days of PTO After Extended Sick Leave Duration Weeks 1–26 Weeks 2–13 Weeks 14–26
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Legac acy Oxy Legac acy APC Who Pays Employee paid Company paid Vendor Prudential Unum Eligibility 30 hours per week 20 hours per week Monthly Benefit 50% or 60% of eligible base pay (Benefit is non-taxable) 66.67% of base pay (Benefit is taxable) Maximum Benefit $15,000 per month $12,000* per month Elimination Period 26 weeks 26 weeks Evidence of Insurability (EOI) Required if past 31-day eligibility None Benefits Continuation** (During LTD benefit period) Medical, dental, and basic life (to Social Security normal retirement age) Most benefits and retirement accrual Monthly Employee Rates After-tax: $0.484 per $100 (50%) $0.678 per $100 (60%) None *Legacy APC highly compensated employees are eligible for a monthly maximum benefit of up to $35,000. **For Represented (Union) employees: Refer to your collective bargaining agreement to determine eligibility for continuation of other benefit coverages while receiving LTD benefits.
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Three ree Long-ter erm Disabili ability ty Options ions
NEW Core 40% % LTD NEW Buy-Up 60% % LTD NEW Tax Choice e 60% % LTD Who Pays Company paid Core: Company paid Buy-Up: Employee paid All employee paid Vendor Prudential Eligibility 20 hours per week Benefit 40% of base pay, max $10,000 per month 60% of base pay, max $15,000 per month 60% of base pay, max $15,000 per month Taxability Company paid; benefit taxable Shared contribution (company and employee paid) Benefit partially taxable Employee paid after-tax; benefit non-taxable Elimination Period 26 weeks Evidence of Insurability (EOI) 2020 Open Enrollm llmen ent: t: None / Ongoing:
Buy-Up and Tax Choice options Benefits Continuation (During LTD Benefit Period) Follows current legacy continuation – no changes in 2020 Monthly Employee Rates (per $100 of base pay) $0 $0.356 $0.581
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The following shows a breakdown of what’s covered under the new LTD plan. The example assumes a full-time, regular employee with an annual base salary of $75,00 ,000 and tax filing status of Single.
For illustrative purposes only. Examples are estimates and will vary based on the employee’s specific tax situation. Amounts are rounded up to whole dollars.
NEW NEW Core 40% 0% LTD NEW NEW Buy-Up 60% % LTD NEW NEW Tax Choice e 60% 0% LTD Who pays Com
id (Pre-tax) Core e (40%): : Com
id (Pre-tax) + Buy-Up (20%): : emplo loyee ee paid id (After er-tax) Emplo loyee ee paid id (After er-tax)
e rate (per $100 pay)
$0 $0.356 $0.581
e annual al cost
a x (base pay / 100)
$0 $267 $436
hly benefit it amoun unt
LTD % x base pay / 12 months
$2,500 $3,750 $3,750
thly benef efit it amoun unt
c – estimated taxes
$2,090 $3,461 $3,750
Net t annual al benef efit it va valu lue
(d x 12) - b
$25,0 ,080 80 (no employee cost) $41,2 ,265 65 $44,5 ,564 64
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The following shows a breakdown of what’s covered under the new LTD plan. The example assumes a full-time, regular employee with an annual base salary of $100,00 ,000 and tax filing status of Married Filing Jointly.
For illustrative purposes only. Examples are estimates and will vary based on the employee’s specific tax situation. Amounts are rounded up to whole dollars.
NEW NEW Core 40% 0% LTD NEW NEW Buy-Up 60% % LTD NEW NEW Tax Choice e 60% 0% LTD Who pays Com
id (Pre-tax) Core e (40%): : Com
id (Pre-tax) + Buy-Up (20%): : emplo loyee ee paid id (After er-tax) Emplo loyee ee paid id (After er-tax)
e rate (per $100 pay)
$0 $0.356 $0.581
e annual al cost
a x (base pay / 100)
$0 $356 $581
hly benefit it amoun unt
LTD % x base pay / 12 months
$3,333 $5,000 $5,000
thly benef efit it amoun unt
c – estimated taxes
$2,881 $4,681 $5,000
Net t annual al benef efit it va valu lue
(d x 12) - b
$34,5 ,572 72 (no employee cost) $55,8 ,816 16 $59,4 ,419 19
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The following shows a breakdown of what’s covered under the new LTD plan. The example assumes a full-time, regular employee with an annual base salary of $150,00 ,000 and tax filing status of Married Filing Jointly.
For illustrative purposes only. Examples are estimates and will vary based on the employee’s specific tax situation. Amounts are rounded up to whole dollars.
NEW NEW Core 40% 0% LTD NEW NEW Buy-Up 60% % LTD NEW NEW Tax Choice e 60% 0% LTD Who pays Com
id (Pre-tax) Core e (40%): : Com
id (Pre-tax) + Buy-Up (20%): : emplo loyee ee paid id (After er-tax) Emplo loyee ee paid id (After er-tax)
e rate (per $100 pay)
$0 $0.356 $0.581
e annual al cost
a x (base pay / 100)
$0 $534 $872
hly benefit it amoun unt
LTD % x base pay / 12 months
$5,000 $7,500 $7,500
thly benef efit it amoun unt
c – estimated taxes
$4,181 $6,922 $7,500
Net t annual al benef efit it va valu lue
(d x 12) - b
$50,1 ,172 72 (no employee cost) $82,5 ,530 30 $89,1 ,128 28
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Monday, March 2, 2020 through Friday, March 13, 2020
ORTANT NT! No Evidence of Insurability (EOI) is required duri ring ng the e ope pen n enroll llmen ent t per eriod
initial enrollment period, EOI will be required to enroll in the Buy-up or Tax Choice LTD options. It is impor
tant t emplo loyees es take e this oppor
tunity ty to make e an elec ectio ion while le no EOI is req equir ired ed.
e LTD options.
Company paid Core 40% option.
Legacy APC employees will enroll through the Anadarko Advantage benefits portal Legacy Oxy employees will enroll through OxyLink Online
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Employees receive email with details
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administrators will combine forces to administer the leave programs.
continue through the April 1, 2020 effective date, time taken prior to April 1, 2020 will count against the 26-week STD benefit under the new policy.
employee’s LTD benefit will be under a legacy LTD plan or under the new harmonized Oxy LTD plan. STD D Exam ample le
during the last week of March 2020 (after taking the mandatory one week
remaining under the new STD policy beginning April 1, 2020.
LTD Exam ample le
March 30, 2020, and is later approved for LTD on September 30, 2020.
new harmonized STD benefit beginning April 1.
legacy LTD Plan because the employee’s date of disability is March 30, 2020 and the new LTD plan is not effective until April 1.
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Type e of Leave Legac acy Oxy Legac acy APC Pregnancy Leave 100% of base pay for eight weeks for birth mothers 100% of base pay for eight weeks for birth mothers; PTO for initial five days Bonding Leave 100% of base pay for six weeks within twelve months of birth/placement (any parent); taken in one-week increments 100% of base pay for four weeks within six months of birth/placement (any parent); taken in one-day increments Family Care Leave 100% of base pay for two weeks; For serious health conditions of family members; taken in
FMLA unpaid Military Leave Training: Up to 17 work days/year; 100% base pay with offsets; Active: First two months at 100% of base pay; Next four months at 50% base pay; No offsets Training: Up to 15 days/year; Active: Leave up to one year; 100% base pay with offsets Bereavement Leave 100% of base pay up to five days 100% of base pay for three days if local; five days for non-local Jury Duty 100% of base pay for duration of duty 100% of base pay for duration of duty
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Type e of Leave Benefit Pregnancy Leave 100% of base pay for eight weeks for birth mothers Bonding Leave 100% of base pay for six weeks within twelve months
Use in minimum one-week increments Bonding Leave should not exceed 240 hours Family Care Leave 100% of base pay for two weeks; taken in minimum one-day increments (Must qualify as having a serious health condition) Family Care Leave should not exceed 80 hours Military Leave Training: Differential pay up to 30 work days | Active: Differential pay up to one year (Must provide military pay documentation prior to start of leave) Bereavement Leave 100% of base pay up to five days Jury Duty 100% of base pay for duration of duty
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Benefit Volunteer Day Employees will have an annual opportunity to volunteer at an Oxy-approved cause for
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Legac acy Oxy Legac acy APC Type of Time Off Vacation PTO
[some differences for GoM and onshore hourly]
Accrual Basis Years of Oxy service Overall work experience—age at 12/31 minus 22 Recognition of Prior Service Up to 19 years exempt, five years non-exempt for prior relevant experience, based on business unit practice N/A Service Breaks 9 - 19 - 29 5 - 10 - 20 – 25 Accrual Schedule: For personal time and vacation only: For personal time, vacation, and illness: < 1 year Prorated Prorated 1 to 4 years 120 hours 160 hours 5 to 8 years 120 hours 200 hours 9 years 160 hours 200 hours 10 to 18 years 160 hours 220 hours 19 years 200 hours 220 hours 20 to 24 years 200 hours 240 hours 25 to 29 years 200 hours 280 hours 29+ years 240 hours 280 hours Maximum Accrual 296 hours Not Applicable Annual Carryover Maximum Rolling ceiling of 296 hours 120 hours for Full-time, 60 hours for Part-time Part-time Employees Prorated benefit based on hours worked as % of full-time hours 50% benefit for Part-time 20-29 hours/week, 75% for 30-39 hours/week
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PTO Sche hedu dule le
YEARS OF SERVIC ICE MONTHLY LY ACCRUAL UAL RATE ANNUAL UAL ACCRUAL L RATE <1 year Prorated Prorated 1 to 4 years 13.34 hours 160 hours 5 to 8 years 15.34 hours 184 hours 9 to 18 years 16.67 hours 200 hours 19 to 28 years 20.00 hours 240 hours 29+ years 23.34 hours 280 hours Annual ual Carryov
er Maximum ximum 120 hours for full-time, 60 hours for part-time 120 hours for full-time, 60 hours for part-time Part-time ime Employees loyees Prorated benefit based on hours worked as % of full-time hours Prorated benefit based on hours worked as % of full-time hours
Effective January 1, 2021, PTO accrual will be based on years of company service plus any additional years of prior relevant experience. Throughout 2020, employees will report their years of experience in the centralized talent management system. More information will be provided in Q2.
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Legac acy Oxy Legac acy APC PTO O Desig sign
Rolling ceiling of 296 hours 120 hours for Full-time, 60 hours for Part-time 120 hours for Full-time, 60 hours for Part-time
NEW All l emplo loyees ees will accrue ue PTO hours on a monthly hly basis based d on the PTO accrual rual schedule ule for their ir year ars of servic vice Example le:
An employee has 10 years of service, which equals 200 PTO hours for the coming year. This means they will accrue 16.67 PTO hours per month (200 hours ÷ 12 months = 16.67 hours).
There e will l be a limit it of 120 PTO hours an employee e can carry ove ver r year-over er-year ar Legac acy APC C Employees ees
No change from your current schedule; employees who historically are eligible for partial payout of their unused hours will continue to be eligible for 2020.
Legac acy Oxy Emplo loyees ees
If you are a full-time employee and have more than 120 hours of vacation to roll over as of your paycheck that includes April 1, 2020, any hours above the carryover limit of 120 will be “permanently” banked and paid to you when you leave Oxy. (If you are a part-time employee and have more than 60 hours of vacation to roll over as of your paycheck that includes April 1, 2020, any hours above the carryover limit of 60 will be banked and paid to you when you leave Oxy.) For 2021 and beyond, any unused or accrued hours over 120 (or 60 for part-time employees) on December 31 of each year will be forfeited.
PTO HRS
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Sched hedule led d holida idays
New Year’s Day President’s Day Memorial Day Independence Day Labor Day Thanksgiving Day Day after Thanksgiving Christmas Eve Christmas Day + 1 or 2 Floating ing Holid iday ays depending on your work schedule
Legac acy Oxy Legac acy APC New Holida liday Sched hedule le
Ten scheduled holidays and
Ten scheduled holidays Nine scheduled holidays plus:
Rationale:
*OCC plant employees should refer to their plant’s holiday practices.
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by each business group or function. Legac acy Oxy emp mplo loyee ees Legac acy APC emp mplo loyee ees NEW Prog
ram
Employees have alternate Fridays off each week; Majority of population has same Fridays off Employees have alternate Fridays off each week; Half the population works on any given Friday Employees have alternate Fridays off each week; Majority of population has same Fridays off
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