Despite operating in the UK for many years, the Company still has an imbedded USA culture - but without the entire employee benefits enjoyed by the USA employees. UK pensioners
are dependant on the Company pension and supplementation of that pension, which is NOT the case in the USA. As a result, Chevron does not respond as a UK firm would. Also Chevron does not follow UK Custom and
Practice in respect of UK pension increases.
Company pension supplementation is based on only a percentage of the RPI
indices issued by the government and covers a broad range of expenditure. Pensioners spending habits are different to those
of people in employment and tend in the main to be affected by Council Tax, food, lighting and heating which is currently more
than double RPI at 9.5% pa.
The Company has in recent times made substantial
contributions to the pension fund. They have also improved the period between pension increases, but normally
pay no more than 90% of RPI (the May 2007 increase was only 87% of RPI, the Dec 2008 will be 89% of RPI). For post April 1997 service the Company is obliged to increase pensions annually but increases are capped at RPI
or a maximum of 5% pa and for post April 2005 service increases are capped at RPI or a maximum of 2.5% pa.
Once you retire you will lose all the leverage you
presently have. Our Association is the only real voice for Pensioners with the Company. Currently the Company is enjoying
improved profits and has fully financed the Pension Fund. We continue to press the Company to improve benefits –
financial and otherwise - and are pleased to report that the periods between pension supplementation are indeed decreasing.
Additional pressure from current employees may encourage
the Company to improve pensioner benefits; your assistance is vital and remember any improvements will be to your ultimate
If you hope to enjoy a reasonable standard of living in retirement then if possible, we would urge you to make additional
private provisions to cover your later years. Remember - at State Pension age, the State Pension Offset is deducted from your Company Pension – and as a result,
your Company pension will be reduced by roughly the amount of your state pension.
Widows / Widowers pensions are only 50% of the deceased
pensioner’s pension and private provisions are essential to ensure a continued comfortable lifestyle.