Chevron Retirement Plan (CRP)

Understanding your employee benefits offered through Chevron is highly beneficial for those looking to maximize their earnings and set their future up for financial success,  especially in terms of the Chevron pension plan. A financial advisor can help analyze your Chevron benefits and get you on the track to reach your financial goals.

Your CRP is calculated based on your hire date at the Chevron corporation. . Once you decide to retire, Insight can help guide you on whether to take the benefit as a lump sum payment or a single life annuity payment. It’s important to remember that IRS segment rates will have an impact on the value of your CRP benefit. We can help you understand that impact and guide you on what timing would be best to get the most value from your CRP.

Chevron is a major corporation with countless employees that rely on their retirement plans for their transition into retirement. By understanding Chevron’s retirement plans you can confidently approach your retirement. Insight has over 20 years of expertise and knowledge about Chevron from working with over 500 Chevron executives, manager and employees. Schedule your complimentary consultation with one of our financial advisors today.

Chevron provides options for employees that are soon to retire. Chevron Retirement Plan, commonly known as CRP, can be taken in the form of lump-sum or monthly lifetime annuity. Election of CRP option requires completion of the When You Leave paperwork.

CRP Lump Sum is currently the most popular election made by Chevron retirees. It is widely believed that over 80% of the retirees opted for it in 2017. It is important to note that CRP lump sum calculation is calculated using several variables like your age, year of service, highest salary, and segment rates etc. The most significant factor in the calculation is the segment rate which is based on a blend of interest rates and change every month. All else being equal, lower segment rates will result in a higher lump sum amount, while higher segment rates will result in a lower lump sum amount.

Regardless of whether you are a Chevron employee understanding your employers pension lump sum payout is important to retiring comfortably. If you decide to choose a lump sum payout in place of monthly payments you may risk outliving your money, losing money on a bad investment strategy, fraud, or poor market performance.

If you choose a lump sum payout, make sure to plan for tax consequences since it will be treated as ordinary income for the year you receive the payout. Also note that if you take the lump sum prior to turning 59 ½ an additional 10% penalty tax will be incurred. Get financial advice on how to make your money last through different savings and investment strategies. Lastly, be on the lookout of scammers trying to pressure you into investments with the promise of a high return with low risk.

Read more about how we can help you understand your Chevron Employee Benefits.

CRP annuity can be taken in various forms of monthly payments. Other than single life annuity, all other options offer a continuing payment for your beneficiary. Keep in mind that CRP annuity has no cost of living adjustment (COLA) so the payment stays the same throughout your lifetime.

What Should You Consider When Choosing Your Chevron Retirement Date?

Under 65 years of age? Find out if the amount of your benefits will be reduced.

Benefits of Selecting a Chevron Retirement Plan

Chevron soon-to-be retirees should select their retirement date strategically to optimize their Chevron pension payout. Pension amounts are calculated based on the last day of employment and the start date of benefits. The IRS segment rates are also used to calculate the CRP lump sum. By simply adjusting your retirement date it can significantly change the total pension amount disbursed. It is important to work with a specialist who can help navigate the CRP to your best interest.


Family Financial Planning

Why you should plan for retirement:

It can answer questions you may not already have the answers to such as ‘When should I take social security?’ or ‘Should I take my pension as a lump sum?’ Sitting down and getting these important questions answered can relieve some of the stress that comes closer to retirement

If for some unexpected reason you are forced to take early retirement, having a retirement plan in place will help ease that burden. Having money set aside already for retirement give you some time and options to adjust your current plan.

Create a tax strategy while you are still working. Contributing to the Chevron 401(k) plan creates a tax deferred source of income once you retire. You can also participate in tax free source of income via Roth IRA’s, HAS’s (Health Savings Accounts) and municipal bonds. Lastly, you can create a tax managed income bucket which include brokerage accounts with tax-efficient investments

 If you plan appropriate and build your retirement savings you can leave behind some wealth to your family through proper estate planning. 

With a solid retirement plan in place, it can help to avoid running out of money. By working with a financial advisor who specializes in retirement planning they will develop a plan to make sure you have the right amount saved when you decide to retire and that your assets will be handled in a way that safeguards against the unexpected.

Stressing about finances can significantly impact your physical health, so having a solid retirement plan in place earlier rather than later can only benefit for your health later.

Don’t forget to check out the Chevron Incentive Plans (CIP) as well.

With a wealth of knowledge and valuable insight, Insight Wealth Strategies can help Chevron employees approach their retirement with additional peace of mind. At Insight our main emphasis is to assist you in getting the most out of your benefits package and build a strategy to guide you to a relaxing retirement. 

We will help you:

To learn more above we can offer contact Insight today!

    Frequently Asked Questions

    We have a team of Financial Professionals dedicated to answering your questions.
    For more information, please read the complete FAQ section or fill out the request information form.

    Chevron and non-Chevron legacy retirees and survivors who satisfied the eligibility requirements of the Plan, including legacy retirement plans, and who elected monthly pension payments. For further information, retirees should refer to the Summary Plan Description – “Chevron Retirement Plan for Employees Hired Before January 1, 2008”


    The Chevron corporation provides a retirement plan that is fully paid by the company. Employees start building their first day at work and it increases as their service, salary, and age increase. Typically, employees are vested after five years of service.

    You are vested if any of the following apply (same for Pre and Post 2008): 

    • You have five years of Vesting and Eligibility Service
    • You reach age 65; regardless of your years of Vesting and Eligibility
    • You’ve completed at least one year of Vesting and Eligibility Services and you’re Totally Disabled 
    • You’re laid off because of lack of work or you accept or reject employment with a buyer of the operation in which you are employed (regardless of your years of Vesting and Eligibility Service).

    Hired before Jan 1, 2008 – Your benefit is calculated according to a formula that uses a percentage of your Highest Average Earnings, your years of Benefit Accrual Service and a Social Security offset. Different formulas apply if you were hired on or after January 1, 2008 or were a represented employee at the Questa Division mine. 

    Hired on or After Jan 1, 2008 – While the Retirement Plan provides for various forms of benefit payments, your benefit under the Retirement Plan is first calculated as a lump sum amount. Any other payment form, or the amount of any earlier distribution, is determined based on this lump sum amount, which uses your Highest Five-Year Average Earnings and your years of Benefit Accrual Service 

    Insight Wealth Strategies, LLC is not affiliated with Chevron.

    To learn more about what Insight Wealth Strategies can do for you or your colleagues in San Ramon, CA  or Houston, TX, please call us at (800) 318-7848, email us at [email protected] or fill out the request information form.

    Company retirement plans are subject to change. For specific plan information consult your human resource department.