DCP
Chevron Deferred Compensation Plan
Executive Strategy Guide
The Chevron Deferred Compensation Plan (DCP) is a non-qualified executive benefit plan designed for Chevron leaders in Pay Salary Grade (PSG) 28 and above. It allows eligible executives to defer a portion of their salary and annual bonus to reduce current taxable income and accumulate tax-deferred wealth for retirement.
Years of Experience
Designations Held
Assets Under Management
Chevron DCP Plan Highlights & Rules
Feature |
Chevron DCP Guidelines |
Eligibility |
Executives and key employees at Pay Salary Grade (PSG) 28 or above. |
Eligible Compensation |
Base salary and Chevron Incentive Plan (CIP) annual bonuses. |
Distribution Options |
Lump-sum distribution or annual installment payments over up to 10 years following separation from service. |
Tax Treatment |
Contributions reduce current pre-tax income; earnings grow tax-deferred; distributions are taxed as ordinary income upon payout. |
Governance Code |
Subject to IRS Section 409A non-qualified deferred compensation regulations. |
Read more about how we can help you understand your Chevron Employee Benefits.
Frequently Asked Questions About Chevron DCP
Chevron executives and senior leaders who reach Pay Salary Grade (PSG) 28 or above are eligible to participate in the DCP. Enrollment typically occurs during annual election windows prior to the tax year in which compensation is earned.
Participants must make irrevocable election choices regarding distribution timing and methods under strict IRS Section 409A rules. Payouts can be taken as a single lump sum or scheduled in annual installments spanning up to 10 years post-separation.
Proper tax-bracket smoothing requires coordination. DCP deferrals and payouts must be mapped alongside the Chevron Retirement Plan (CRP) pension elections, the Retirement Restoration Plan (RRP) payout timelines, ESIP 401(k) withdrawals, and Long-Term Incentive Plan (LTIP) stock vestings to prevent unintended tax spikes in retirement.
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Insight Wealth Strategies, LLC is not affiliated with Chevron.