thums long beach company pension plan - … publication info/summary plan...the thums long beach...
TRANSCRIPT
Table of Contents
HIGHLIGHTS .......................................................................................................................... 1 DEFINITIONS .......................................................................................................................... 3 PARTICIPATION IN THE PLAN ........................................................................................... 5
YOUR BENEFITS PROVIDED BY THE PLAN ................................................................... 5
Normal Retirement Date ................................................................................................5
Early Retirement Date....................................................................................................8
Deferred Retirement Date ............................................................................................10
YOUR BENEFIT IF YOU BECOME DISABLED ............................................................... 10
HOW YOU WILL RECEIVE YOUR BENEFITS ................................................................ 12
Automatic Forms of Payment ......................................................................................12
Optional Forms of Payment .........................................................................................12
Single Life Annuity .......................................................................................... 12
Joint and Survivor Annuity (50%, 75%, or 100%) ......................................... 12
5 or 10-Year Certain and Life Annuity ........................................................... 13
Lump Sum........................................................................................................ 13
APPLYING FOR BENEFITS ................................................................................................ 14 SITUATIONS THAT MAY AFFECT YOUR PLAN BENEFIT .......................................... 15
Overview ......................................................................................................................15
OTHER IMPORTANT PROVISIONS .................................................................................. 17
Leave of Absence............................................................................................. 17
Maternity/Paternity Leave .............................................................................. 17
Military Leave ................................................................................................. 17
Assignment of Your Benefits ........................................................................... 17
Qualified Domestic Relations Orders (QDROs)............................................. 18
Missing Persons .............................................................................................. 18
Mergers, Consolidations, and Transfers ........................................................ 18
Direct Rollover................................................................................................ 18
No Implied Promises ....................................................................................... 19
BENEFIT CLAIMS AND APPEALS PROCEDURES ......................................................... 19
General Information About Claims .............................................................................19
Time Period for Responding to Initial Claim ..............................................................19
Information Provided if Initial Claim is Denied ..........................................................20
Appeal Procedure if Initial Claim is Denied ................................................................20
Information Provided if Appeal is Denied ...................................................................21
Legal Proceedings ........................................................................................................22
PLAN CONTINUATION ....................................................................................................... 22
BENEFIT INSURANCE ........................................................................................................ 23 ADDITIONAL INFORMATION ........................................................................................... 24 YOUR ERISA RIGHTS ......................................................................................................... 26
1
THUMS LONG BEACH COMPANY
PENSION PLAN
HIGHLIGHTS
The THUMS Long Beach Company Pension Plan (the “Plan”) is designed to provide
income for your retirement. Here are the highlights:
THUMS Long Beach Company (“THUMS”) provides this Plan at no cost to you,
making your lifetime benefits especially valuable.
Normal retirement age is age 65, but you may retire as early as age 55 if you meet
certain service requirements. You may also postpone retirement.
The amount of your benefit is based on your years of employment and your pay with
the California Resources Corporation family of companies (“CRC”).
You may earn the right to receive a benefit even if you leave CRC before retirement.
If, while employed by CRC, you become permanently and totally disabled, as defined
by the Plan, and have the required years of service under the Plan, you may commence
payment of benefits under the Plan.
The Plan may provide a benefit to your spouse if you die before commencement of
retirement benefits with a Vested right to benefits.
The Plan may provide a benefit to your spouse or other beneficiary if you die after
commencement of retirement benefits.
Plan benefits are paid in addition to retirement benefits that you may receive through
Social Security.
2
This booklet summarizes your pension benefit so that you can understand how the
Plan operates. Although this booklet covers many of the principal features of the
Plan, it is only a summary. The complete provisions are contained in the official Plan
document. If you wish, you can review or obtain a copy of the Plan document – see
the YOUR ERISA RIGHTS section for more information.
All benefits described in this Summary are subject to the terms of the Plan
document and trust agreement. The Plan is administered according to the Plan
document and trust agreement. The Plan Administrator has the power to construe
and interpret the Plan, to supply all omissions from, correct deficiencies in, and
resolve ambiguities in, the language of the Plan and trust. If there is any conflict
between this booklet and the legal documents, the Plan document and trust
agreement will govern.
This Summary reflects the Plan provisions in effect on January 1, 2015.
3
DEFINITIONS
Throughout this booklet, certain terms will be used that have special meanings under the
Plan. For your convenience, these terms are defined below:
Accrued Benefit means your normal retirement benefit payable at age 65 in the form of a
Single Life annuity option, based on your service and compensation (as defined in the
Plan).
Actuarial Equivalent means payment in an alternate form having the same value as the
benefit for which it is substituted using the bases specified in the Plan.
Annuity Start Date is the later of the first day of the month following your termination
date or your elected start date to begin benefits.
Break-in-Service means any 12-month period beginning on your date of hire and
anniversaries thereafter during which you are credited with less than 501 Hours of Service.
Compensation is your base pay (including amounts contributed by salary reduction to a
401(k) plan or other benefit plan paid for with pre-tax dollars), eligible bonuses, shift
differentials paid for work on a rotating scheduled shift or 12 hour shift schedule and
scheduled overtime, as part of a normal work schedule, paid for work on a rotating
scheduled shift or 12 hour shift schedule. Compensation, however, does not include any
other special consideration such as unscheduled overtime or other extra compensation. In
addition, Federal law prohibits the Plan from basing your Plan benefit on Compensation in
excess of $265,000 (for the 2015 Plan Year, indexed for inflation).
Covered Compensation is the average of the taxable Social Security wage bases for the 35
calendar years ending with the calendar year which includes your Social Security
Retirement Age.
CRC refers to the California Resources Corporation family of companies.
Eligible Employee means an employee of the Occidental Oil and Gas Corporation who
was an active participant and an eligible employee of THUMS on or after January 1, 2007
and immediately before January 1, 2008. Generally, leased employees, nonresident aliens,
employees covered by a collective bargaining agreement that did not specifically provide
for participation in the Plan, or employees of a non-participating employer were not
eligible.
ERISA means the Employee Retirement Income Security Act of 1974, as amended.
Final Average Compensation is your average monthly Compensation for the 36 months
during which your Compensation is highest. Only the last 120 months of your employment
will be considered for this calculation.
4
Hours of Service count toward determining your Plan benefits and your eligibility to
receive them. You receive one Hour of Service for each hour that the CRC pays you, or for
which you are entitled to payment. This includes, within certain limits under the Plan, the
accrual of Hours of Service for absences due to vacation, holidays, illness, incapacity
(including disability or pregnancy), layoff, jury or military duty, and leave of absence. You
accrue a maximum of 501 hours for any period in which you are absent from work. In
addition, you accrued Hours of Service for certain absences permitted by the Family
Medical Leave Act of 1993. Finally, you might accrue Hours of Service in the event that
back pay is awarded or agreed to by the CRC.
Plan means the THUMS Long Beach Company Pension Plan.
Plan Administrator means the California Resources Retirement Investment and
Administrative Committee, appointed by the board of directors of California Resources
Corporation to administer all matters relating to the Plan.
Plan Year is each 12 month period beginning January 1 and ending December 31.
For Plan years prior to January 1, 2009, the plan year began on July 1 and ended June 30.
The Plan had a short plan year beginning with the Plan year starting July 1, 2008 and
ending December 31, 2008.
Social Security Retirement Age (SSRA) is 65 if your birth year is before 1938. If your
birth year is between 1938 and 1954, your Social Security Retirement Age is 66. If your
birth year is after 1954, your Social Security Retirement Age is 67.
THUMS refers to THUMS Long Beach Company.
Vesting or Vested refers to your right to receive benefits under the Plan, whether or not
you continue working for CRC until retirement. You become fully Vested with at least
five Years of Vesting Service, or upon attainment of age 65 during CRC employment,
whichever is earlier.
Years of Service began with the 12 month period beginning on the first day of the month
after you started working for THUMS. Subsequent Years of Service (and fractions thereof)
are calculated from that same anniversary date to the first day of the month coincident with
or immediately following your date of separation.
Years of Vesting Service are credited for each 12 month period beginning on your date of
hire with THUMS and each subsequent anniversary thereof during which you are credited
with at least 1,000 hours of service.
5
PARTICIPATION IN THE PLAN
Newly Hired Employees
Prior to January 1, 2008, if you were an employee of THUMS, other than a leased
employee, an employee covered by a collective bargaining agreement, or an employee who
was a nonresident alien with no U.S. sourced income, you became a participant in the Plan
once you completed 12 consecutive months of employment starting on your date of hire or
any anniversary date after that. You had to complete at least 1,000 Hours of Service during
this 12 month period in order to qualify. Effective January 1, 2008, no new participants are
eligible to participate in the Plan.
Rehired Employees
Prior to January 1, 2008, if you worked for THUMS and were a Plan participant, and you
were later rehired by THUMS, you automatically became a participant once again on your
rehire date. If you were not yet a participant, you had to meet the requirements for newly
hired employees outlined above. Effective January 1, 2008, no rehired employee is
permitted to re-join the Plan as an active participant.
YOUR BENEFITS PROVIDED BY THE PLAN Depending on when you choose to retire, your Plan benefit will be calculated according to the
formula shown in this section.
Normal Retirement Date
Your “Normal Retirement Date” is the first day of the month on or after your 65th birthday. So,
for example, if you turn 65 on April 21, your Normal Retirement Date would be May 1.
The formula used to calculate your monthly benefit at your Normal Retirement Date is:
(1) 1.2% of your Final Average Compensation multiplied by your Years of Service plus
(2) 0.4% of your Final Average Compensation in excess of your Covered
Compensation multiplied by your Years of Service (not to exceed 35 years)
This is the benefit you will receive if you work until your Normal Retirement Date and
choose the Single Life Annuity form of payment. (The different forms of payment
available will be discussed in the HOW YOU WILL RECEIVE YOUR BENEFITS section
below).
6
If You Leave Before Retirement If you leave CRC after completing five Years of Vesting Service, you will be eligible to
receive a retirement benefit. This is your Vested benefit and cannot be taken away from
you.
If you leave the CRC before retirement, your benefit will be based on your Final Average
Compensation and Years of Service as of the date you leave the CRC. It will be payable at
your Normal, Optional or Early Retirement Date. Alternatively, you may elect to
commence reduced monthly benefits or receive the value of your benefit in a single lump
sum payment at any time after you leave the CRC, prior to your Normal, Optional or Early
Retirement Date.
If You Die Before Retirement If you should die after you have five Years of Vesting Service, your spouse (to whom you
have been married for at least one year before your death) will receive a monthly benefit.
It will be equal to 50% of the monthly benefit that would have been payable to you if you
had:
(1) Ended employment on the earlier of the date of your death or the actual date you
left;
(2) Survived until your Early Retirement Date; and
(3) Begun receiving a 50% Joint and Survivor Annuity benefit.
If you should die on or after your 55th birthday with five or more Years of Vesting Service
while still employed by CRC, your spouse will receive a monthly benefit equal to the
monthly benefit you would have received if you had retired on the date of your death, and
had chosen a 100% Joint and Survivor Annuity benefit described in the HOW YOU WILL
RECEIVE YOUR BENEFITS section.
7
Here is an example of how this benefit would be calculated. Suppose that:
(1) You retire on your Normal Retirement Date at age 65;
(2) You have 25 Years of Service at retirement;
(3) Your Final Average Compensation is $4,500 per month; and
(4) Your Covered Compensation is $3,500 per month.
Your monthly benefit under the Single Life Annuity form would be:
.012 Final Average Compensation $ 54.00
multiplied by Years of Service 25
$ 1,350.00 per month
plus
.004 Final Average Compensation in excess of
Covered Compensation $ 4.00
multiplied by Years of Service 25
$ 100.00 per month
Your Normal Retirement Date benefit equals $ 1,350.00
+ 100.00
$ 1,450.00 per month
8
Optional Retirement Date If you have completed at least five Years of Vesting Service and are at least 60 years old, you
may retire early, without having your benefit reduced. If you retire between ages 60 and 65,
this will be known as your “Optional Retirement Date”. Your Covered Compensation in this
case will be based on your age at your Optional Retirement Date.
Here is an example of how the Optional Retirement Date works. Suppose that:
(1) You retire at one of your Optional Retirement Dates—we’ll assume age 60;
(2) You have 20 Years of Service at your Optional Retirement Date;
(3) Your Final Average Compensation is $4,500 per month; and
(4) Your Covered Compensation is $3,500 per month.
Your monthly benefit as a Single Life Annuity form would be:
.012 Final Average Compensation $ 54.00
multiplied by Years of Service 20
$ 1,080.00 per month
plus
.004 Final Average Compensation in excess of
Covered Compensation $ 4.00
multiplied by Years of Service 20
$ 80.00 per month
Your Optional Retirement Benefit equals $ 1,080.00
+ 80.00
$ 1,160.00 per month
Early Retirement Date
You may be eligible to retire and collect your Plan benefit before turning age 60. Your
Early Retirement Date may be any time after you have turned age 55 and completed five
Years of Vesting Service.
Unlike the Optional Retirement Date, your benefit at an Early Retirement Date will be
reduced, depending on the age at which you choose to retire. This is because payments
begin at a younger age and are expected to be paid for a longer period of time.
9
This table shows the percentage of your Normal Retirement Date benefit you will get if you
retire on an Early Retirement Date:
Age
at
Retirement
Early
Retirement
Percentage
59 95%
58 90%
57 85%
56 80%
55 75%
The percentage will be adjusted for fractional parts of a year.
Here’s an example of how your benefit would be calculated if you choose to retire at an
Early Retirement Date. Let’s assume that:
(1) You retire at age 55;
(2) You have 15 Years of Service;
(3) Your Final Average Compensation is $4,500 per month; and
(4) Your Covered Compensation is $3,500 per month.
Your monthly benefit under the Single Life Annuity form would be:
.012 Final Average Compensation $ 54.00
multiplied by Years of Service 15
$ 810.00 per month
plus
.004 Final Average Compensation in excess of
Covered Compensation $ 4.00
multiplied by Years of Service 15
$ 60.00 per month
Your benefit at Normal Retirement Date equals $ 810.00
+ 60.00
$ 870.00 per month
multiplied by the Early Retirement Percentage 75%
Your Early Retirement Benefit equals $ 652.50 per month
10
Deferred Retirement Date
You may decide to continue working for the CRC after you turn age 65. If this happens,
you won’t receive your Plan benefit until your Deferred Retirement Date. This is the first
day of the month on or after the date you stop working for the CRC. Your deferred
retirement benefit will be based on your Final Average Compensation and Years of Service
at your Deferred Retirement Date.
YOUR BENEFIT IF YOU BECOME DISABLED
You will be entitled to a Disability Retirement Benefit under the Plan if you qualify for
Social Security disability benefits.
Your Disability Retirement Benefit will end on the earlier of:
(1) The date of your death;
(2) The date you are declared no longer permanently and totally disabled; or
(3) The date you reach age 65.
The amount of your benefit is calculated in the same manner as an Early Retirement
Benefit, but it will be based on the Years of Service you would have accrued if you had
worked to your Normal Retirement Date, instead of the number of years worked at the time
you are disabled. That amount would then be multiplied by the fraction:
Your Total Years of Service as of Your Disability Retirement Date
Total Possible Years of Service to Age 65
Note: Your disability benefit is not subject to the Early Retirement Percentage reduction.
Here’s an example of how this works. Suppose that:
(1) You become disabled at age 50;
(2) You have 10 Years of Service as of your Disability Retirement Date, but would
have had 25 Years of Service at your Normal Retirement Date;
(3) Your Final Average Compensation as of your Disability Retirement Date is
$4,500; and
(4) Your Covered Compensation is $3,500.
.012 Final Average Compensation $ 54.00
multiplied by Years of Service to Age 65 25
$ 1,350.00 per month
plus
.004 Final Average Compensation in excess of
Covered Compensation $ 4.00
multiplied by Years of Service to Age 65 25
$ 100.00 per month
11
Your benefit at Normal Retirement Date equals $ 1,350.00
+ 100.00
$ 1,450.00 per month
multiplied by Total Years of Service at Disability
Total Possible Years of Service to Age 65
(which equals 10/25, or 0.4)
0.4
Your Disability Retirement Benefit equals $ 580.00 per month
If you are still disabled at age 65, your benefit will be recalculated. It will be determined
based on the average Compensation you received in the 12 months immediately before
your Disability Retirement Date used for all years after your Disability Retirement Date
and on the Years of Service accrued to age 65, including the years since your Disability
Retirement Date.
Here’s how it works. Assume that:
(1) You have reached the Normal Retirement Date of age 65;
(2) You would have had 25 Years of Service at age 65;
(3) Your Final Average Compensation is $4,500 per month; and
(4) Your Covered Compensation is $3,500 per month.
Your monthly benefit at Normal Retirement Date under the Single Life Annuity form
would be:
.012 Final Average Compensation $ 54.00
multiplied by Years of Service 25
$ 1,350.00 per month
plus
.004 Final Average Compensation in excess of
Covered Compensation $ 4.00
multiplied by Years of Service 25
$ 100.00 per month
Your benefit at Normal Retirement Date equals $ 1,350.00
+ 100.00
$ 1,450.00 per month
12
HOW YOU WILL RECEIVE YOUR BENEFITS
You have several options available for how you want to receive your benefits from the
Plan. These options are available at your Normal, Optional, or Early Retirement Dates.
When you are getting ready to retire, you should notify the CRC Pension Service Center.
They will provide you with an explanation of the optional forms of payment available to you.
Before your actual retirement date, you may choose one of the optional forms. If you do not
choose one of the optional forms, your retirement benefit will be paid in one of the two
automatic forms of payment described below.
Automatic Forms of Payment
Unmarried Participants The automatic form of payment for unmarried participants is a Single Life Annuity. It
provides you with a monthly benefit, for as long as you live. All payments stop when you
die.
Married Participants The automatic form of payment for married participants is a 50% Joint and Survivor
Annuity. To calculate this option, your Single Life Annuity payment amount is actuarially
reduced and paid to you, for as long as you live. If you should die before your spouse, he
or she would receive 50% of the benefit you were receiving until death. If you or your
spouse die or divorce when you and your spouse have been married for less than one year,
you will be treated as being unmarried and your benefit will be paid as a Single Life
Annuity for your lifetime only.
If you are married and choose an optional form of payment (described below), other than a
Joint and Survivor Annuity with your spouse as the joint annuitant, your spouse must consent
to your choice in writing. This consent must be witnessed by a Plan representative or a notary
public.
Optional Forms of Payment
There are several optional forms of payment available to you, besides your automatic form
of payment. You may choose from any of the following options. The monthly benefit
amount under each form will be slightly different because the benefits are payable over
differing periods of time:
Single Life Annuity
This form of payment provides you with a monthly benefit for as long as you live. There
will be no additional payments made to your spouse or other beneficiary after your death.
Joint and Survivor Annuity (50%, 75%, or 100%)
A Joint and Survivor Annuity pays you a reduced monthly benefit for as long as you live.
Depending on which percentage you choose, after your death, 50, 75, or 100% of your
monthly income will be paid to your spouse or other designated beneficiary for as long as
that person lives.
13
Before you retire, you must designate your beneficiary and the percentage of your monthly
income you want to be paid to your spouse or other designated beneficiary after your death.
Once payments begin, neither of these choices may be changed.
5 or 10-Year Certain and Life Annuity
This form pays you a monthly benefit for as long as you live. If you die before receiving
60 or 120 monthly payments (5 or 10 years, respectively), then further payments will be
made to your designated beneficiary to the end of the 60 or 120 payments.
Lump Sum
This option pays you a single cash payment of the actuarial equivalent of your retirement
benefit accrued up to your date of separation. If you are eligible to receive an early
retirement benefit, then the lump sum will be based on the actuarial equivalent of your
early retirement benefit. Otherwise, the lump sum will be based on your benefit at Normal
Retirement Date.
Note: In general, the Single Life Annuity form will give you the largest monthly
payment because there are no death benefits. The 100% Joint and Survivor Annuity
form will give you the smallest monthly benefit because full payments would continue
for your survivor’s lifetime in the same amount.
Here is a comparison of how much the various options might pay at retirement. Assume
that:
(1) You retire at age 65;
(2) Your benefit under the Single Life Annuity form is $1,450.00; and
(3) Your survivor is age 62.
Form of Income
Your Approximate
Monthly Benefit
Single Life Annuity $1,450.00
5-Year Certain and Life Annuity $1,416.94
10-Year Certain and Life Annuity $1,337.19
50% Joint and Survivor Annuity $1,304.71
Payable to Your Survivor $652.36
75% Joint and Survivor Annuity $1,235.40
Payable to Your Survivor $926.55
100% Joint and Survivor Annuity $1,176.53
Payable to Your Survivor $1,176.53
Note: These amounts are based on specific tables. There are many factors that will
vary, such as your age, and the age of your survivor. When you are ready to choose an
option, we can calculate your exact benefit amounts under the various options.
14
APPLYING FOR BENEFITS
To ensure that you have enough time to choose the form of payment that best meets your
financial needs, and to allow sufficient time for administrative processing, you should
notify CRC Pension Service Center at least 90 days before the date on which you are
planning to retire. If you leave CRC or become disabled, you should contact the CRC
Pension Service Center to determine the benefits to which you may be entitled. If you die,
your surviving spouse or beneficiary should contact the CRC Pension Service Center to
determine the benefits to which they may be entitled.
You must complete an application to begin your retirement benefit using the form
prescribed by the Plan Administrator. Your completed application must be filed with the
CRC Pension Service Center at least 30 days prior to the date you would like your
retirement benefit to commence. You must have been a participant in the Plan who has
terminated employment with CRC at the time your retirement benefit is to begin.
You will receive an option/waiver form not later than 90 days before your normal or
postponed retirement date. If you elect to retire early, you would file your election at least
90 days before your actual retirement date.
15
Your retirement benefit may be subject to federal and state tax withholding once payment
begins. If you have any questions concerning your benefits, please contact the CRC
Pension Service Center.
SITUATIONS THAT MAY AFFECT YOUR PLAN BENEFIT
Overview
Your benefit payments may be paid at a different time or in an amount less than you
anticipated under certain circumstances summarized below:
Your Benefit If You Leave Before Retirement. If you leave CRC after completing five
Years of Vesting Service, you will be eligible to receive a retirement benefit. This is your
Vested benefit and cannot be taken away from you.
If you leave the CRC before retirement, your benefit will be based on your Final Average
Compensation and Years of Service as of the date you leave the CRC. It will be payable at
your Normal, Optional or Early Retirement Date. Alternatively, you may elect to commence
reduced monthly benefits or receive the value of your benefit in a single lump sum payment
at any time after you leave the CRC, prior to your Normal, Optional or Early Retirement
Date.
Your Benefit If You Die Before Retirement. If you should die after you have five Years of
Vesting Service, your spouse (to whom you have been married for at least one year before
your death) will receive a monthly benefit. It will be equal to 50% of the monthly benefit
that would have been payable to you if you had:
(1) Ended employment on the earlier of the date of your death or the actual date you left;
(2) Survived until your Early Retirement Date; and
(3) Begun receiving a 50% Joint and Survivor Annuity benefit.
If you should die on or after your 55th birthday with five or more Years of Vesting Service
while still employed by CRC, your spouse will receive a monthly benefit equal to the
monthly benefit you would have received if you had retired on the date of your death, and
had chosen a 100% Joint and Survivor Annuity benefit as described in the HOW YOU WILL
RECEIVE YOUR BENEFITS section.
If You Leave CRC. In general, if you leave CRC before you are Vested, you will forfeit the
value of your Plan benefit. You may, however, retain credit for your accrued Years of Vesting
Service if you have less than five Years of Vesting Service at the time that you leave. In that
event, you will retain credit for your previous Years of Vesting Service only if you are re-
employed by CRC before you incur five consecutive Breaks in Service (as defined in the section
entitled DEFINITIONS).
Once you have five or more consecutive Breaks in Service, you will lose credit for all
previously accrued Years of Vesting Service unless you have a Vested right to a benefits. If
CRC subsequently rehires you, you will be treated as a new employee for purposes of the Plan.
16
Special rules apply if you terminate, start receiving a benefit payment, and are then re-
employed by CRC. Please contact the CRC Pension Service Center regarding your particular
situation for information on how your benefit will be affected due to reemployment.
If You Do Not File a Proper Application for Your Benefit. If you leave CRC and do not
properly apply for your benefit payments to begin, payments will not begin until your
application for a benefits is received and approved or, if earlier, the April 1 following the
calendar year in which you attain age 70½.
If You Do Not Provide Proper Information. If you do not keep your most recent address on
file and the Plan Administrator cannot locate you, benefit payments may be delayed and
eventually forfeited. (See Missing Persons below.) Also, if you do not provide the necessary
information then payment of your benefit will be delayed. If erroneous data is provided, your
benefit payments will be adjusted to recoup any overpayments.
If an Overpayment is Made. The Plan Administrator makes every effort to ensure that benefit
payments is are correct. However, if a mistake is made when your benefits is are paid, the Plan
Administrator reserves the right to recover any overpayment.
If Your Benefits Exceeds Federally Prescribed Maximums. Federal laws and regulations
place a maximum on the benefit amounts payable to an individual from the Plan. The
maximum affects very few employees, but if you are affected by the maximum, you will be
notified.
If the Plan Does Not Meet Certain Funding Requirements. Federal laws and regulations
restrict payment of benefits or future accruals if the ratio of Plan assets to Plan benefits falls
below certain prescribed percentages or if the company goes into bankruptcy. If you are
affected by the restrictions, you will be notified. The restrictions, if applicable, could include:
(i) limitation on the availability of lump-sum distributions over $5,000; (ii) limitation on plant
shutdown and similar benefits; (iii) limitation on plan amendments increasing benefits; and (iv)
automatic freeze of future benefit accruals.
If You Fail to Appeal a Denied Claim. If you, your spouse, beneficiary, or an alternate payee
under a QDRO fail to make a timely appeal of a denied claim, your rights under the Plan’s
Claims and Appeal Procedures may be extinguished. (See BENEFIT CLAIMS AND
APPEALS PROCEDURES in this Summary.)
17
OTHER IMPORTANT PROVISIONS
Leave of Absence
If you are on a CRC approved, unpaid leave of absence, you may receive up to six months’
worth of Hours of Service, provided that you return to work, or retire, immediately after
your approved leave period ends.
Maternity/Paternity Leave
If you were on a leave of absence from work because of the birth or adoption of your child,
or because of the care of your child immediately following birth or placement, then your
termination date used for the purpose of computing your initial Break in Service was the
second anniversary of the first date on which your leave commenced. Thus, you could
have taken up to two years of unpaid maternity or paternity leave before you incurred a
Break in Service, provided that you returned to work immediately following the expiration
of the leave. This special computation applied only for the purpose of avoiding a Break in
Service. You could have, however, accumulated some amount of Years of Service and
Years of Vesting Service during your leave if you returned to work within 12 months of the
date on which your leave commenced. In that circumstance, provided that you otherwise
continued to be eligible to participate in the Plan, you received Years of Vesting Service
and Years of Service as though you never took a leave and instead continued to work your
regularly scheduled hours.
Military Leave
The Plan complies with the requirements of the Uniformed Services Employment and
Reemployment Rights Act of 1994 (USERRA) and the Heroes Earnings Assistance and
Relief Tax Act of 2008 (the HEART Act). If you are a participant on a qualified military
leave of absence, you will continue to accrue Years of Vesting Service and Years of
Service, provided that you return to work after your leave period ends in accordance with
the requirements of USERRA. Upon your return, you will retain your status as an active
participant as long as you satisfy the Plan’s eligibility requirements. In general, qualified
military leave includes all periods of active duty with a U.S. uniformed service (including
National Guard and reserve training) of up to five years’ duration. If a participant dies
while performing in the uniformed services, the survivors are entitled to receive any
additional benefits (other than benefit accrual relating to the period while on military leave)
provided under the Plan as if the participant had resumed employment on the day before
death.
Assignment of Your Benefits
Your retirement income benefit belongs to you and may not be sold, assigned, transferred,
pledged or garnished under most circumstances. The Plan is required, however, to comply
with Internal Revenue Service tax levies and with court-issued QDROs, which are
described below.
If you (or your spouse, contingent annuitant, beneficiary or alternate payee under a QDRO)
are unable to care for your own affairs, any elections may be made by, and any payments
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due may be paid to, someone who is authorized to conduct your affairs. This may be a
relative, a court-appointed guardian, or some other person.
Qualified Domestic Relations Orders (QDROs)
If you become divorced or separated, are required to pay child support, or are involved in a
court proceeding dividing marital property, certain court orders could require that part of
your benefit be paid to someone else known as an alternate payee. An alternate payee
could be a spouse, former spouse, child, or other dependent. This kind of a court order is
known as a QDRO. To be honored, a QDRO must meet specified legal standards, the
satisfaction of which will be determined by the Plan Administrator. You may obtain a
copy of the Plan’s QDRO procedures at no charge from the CRC Qualified Order Team at
888.848.4754. As soon as you are aware of any court proceedings that may affect your Plan
benefit, you should contact the CRC Qualified Order Team.
You may be able to speed up court proceedings and save on legal fees by getting a copy of
the Plan’s QDRO procedures for review by your attorney before any order is presented to a
court awarding someone else a share of your Plan benefit. By following the QDRO
procedures, you reduce the risk that the order will be rejected by the Plan. If the Plan
rejects the order, you or your attorney will need to obtain a revised order from the court.
Missing Persons
If the Plan Administrator is unable to begin benefit payments to you, your spouse, contingent
annuitant, beneficiary, or alternate payee under a QDRO, or other person entitled to a Plan
benefit because their identity or whereabouts cannot be ascertained, and two years have passed
since such payment was to begin, then the Plan Administrator may mail a notice by registered
mail to the last known address of such person. The notice shall state that unless that person
makes written reply to the Plan Administrator within 60 days from the mailing of such notice,
the Plan Administrator shall direct that the benefit shall be forfeited and all liability for the
payment thereof shall terminate. In the event of the subsequent reappearance of the person
entitled to such benefit prior to termination of the Plan, the benefit, which was due and payable
and which such person missed, shall be paid in a single sum, and any future benefit due such
person shall be reinstated in full. The amount payable to such person shall be equal to the
benefit forfeited, without interest on such amount for the period commencing on the date such
benefit was forfeited and ending on the date of the claim.
Mergers, Consolidations, and Transfers
If the Plan is merged or consolidated, or if Plan assets are transferred to another plan, the
benefit you have accrued at the time of the merger, consolidation, or transfer will be protected.
Your accrued benefit under the new plan, if the plan were to terminate immediately after the
change, would at least equal the accrued benefit that you would have been entitled to receive if
the current plan had terminated just before the change.
Direct Rollover
You, your spouse, or alternate payee under a QDRO may direct the Plan Administrator to
transfer all or part of your eligible rollover distribution, in amounts of $500 or more, directly
to an IRA or other eligible retirement plan. Currently, only the Lump Sum Option form under
this Plan can qualify as an eligible rollover distribution. If you are interested in learning more
19
about whether a distribution is eligible for rollover, please contact the CRC Pension Service
Center at 1.888.909.4156.
No Implied Promises
Nothing in this Summary says or implies that participation in this Plan is a guarantee of
continued employment with CRC. Nor is it a guarantee that the Plan’s current benefit formula
will remain unchanged in future years.
BENEFIT CLAIMS AND APPEALS PROCEDURES
The Plan is covered under Title I of ERISA. The Plan Administrator has discretionary
authority to determine who is eligible for coverage and benefits under the Plan. In
exercising its fiduciary responsibilities, the Plan Administrator shall have discretionary
authority to determine whether and to what extent covered participants, spouses, contingent
annuitants, alternate payees, and beneficiaries are eligible for benefits, and to construe
disputed or doubtful Plan terms. The Plan Administrator shall be deemed to have exercised
such authority properly unless it has abused its discretion hereunder by acting arbitrarily
and capriciously.
General Information About Claims
A claim for a benefit is a formal request by you (or your spouse, contingent annuitant,
alternate payee, or beneficiary) for the payment of a benefit due under the terms of the
Plan. You (including your spouse, contingent annuitant, alternate payee, or beneficiary)
have a right to file a formal claim for a benefit from the Plan if you believe that you are not
receiving all benefits to which you are entitled under the terms of the Plan. All formal
claims for benefits must be submitted in writing to the Plan Administrator (c/o the Plan
Administration office at the address indicated under the ADDITIONAL INFORMATION
section, which is the named fiduciary with responsibility for deciding on your claim. The
submission should indicate that it is a formal claim for benefits.
An authorized representative may represent you when you file your initial claim or you
appeal the initial denial of your claim. The Plan Administrator may require that the person
you select provide evidence (such as a signed authorization) that you have authorized him
or her to represent you in connection with your claim for benefits.
Time Period for Responding to Initial Claim
Generally, the Plan Administrator will provide a response to your claim within 90 days
after it receives your claim. The Plan Administrator may notify you in writing before the
end of the normal 90-day review period that it needs up to an additional 90 days to review
your claim because of special circumstances. That notification will indicate the special
circumstances requiring the extension (such as not receiving required information) and
when the Plan Administrator expects to be able to respond to your claim. If you do not
receive a response within the applicable time period, please contact the Plan Administrator.
Alternatively, you may assume that the claim has been denied and submit an appeal.
However, in that case you will not have as much information to help you prepare a
successful appeal.
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If the claim is a disability claim, the following timing rules will apply instead of those
stated in the preceding paragraph. The Plan Administrator will provide a response to your
claim within 45 days after it receives your claim. The Plan Administrator may notify you
in writing before the end of the normal 45-day review period that it needs an additional 30
days to review your claim because of special circumstances beyond the control of the Plan
Administrator. If special circumstances beyond the control of the Plan Administrator
justify extending the claim period up to an additional 30 days, you will be given written
notice of this extension within the original 30-day period. Each extension shall set forth
the special circumstances beyond the control of the Plan Administrator and the date a
decision is expected.
Information Provided if Initial Claim is Denied
If your claim is denied in whole or in part, you (or your spouse, contingent annuitant,
alternate payee, or beneficiary) will receive a written response from the Plan Administrator.
The Plan Administrator’s response will include the following information:
The specific reasons for the denial;
Reference to the specific plan provisions upon which the denial was based;
A description of any additional material or information that is necessary for your
claim to be successful, and an explanation of why this information is necessary;
An explanation that a full and fair review by the Plan Administrator of the decision
denying the claim may be requested by you or your authorized representative by
filing with the Plan Administrator, within 60 days (or, if the claim for benefits is
based on your disability, 180 days) after such notice has been received, a written
request for such review; A statement you or your authorized representative have a
right to receive, upon request and free of charge, reasonable access to or copies of
documents, records, and other information relevant to your claim for benefits,
other than legally privileged documents, and to submit issues and comments in
writing within the period specified above; and
A statement that you have a right to bring a civil action under ERISA following an
adverse determination on any appeal you file after the initial denial of your claim.
If the Plan Administrator’s response does not include all of this information, please
contact the Plan Administrator and request the missing information.
Appeal Procedure if Initial Claim is Denied
If your initial claim is denied, you (or your spouse, contingent annuitant, alternate payee, or
beneficiary) may appeal the denial and request that the Plan Administrator further review
your claim. You must submit your appeal in writing to the Plan Administrator, c/o the Plan
Administration office (at the address noted in the ADDITIONAL INFORMATION
section), within 60 days (or, if the claim for benefits is based on your disability, 180 days)
21
after you receive the notice denying your initial claim. If you do not submit your appeal by
this deadline, you will lose the opportunity to make an appeal and you may lose the right to
bring a lawsuit challenging the denial of benefits.
In connection with your appeal, you may submit written comments, documents, records, or
other information relating to your claim. Upon request, the Plan Administrator will provide
you with reasonable access to and copies of documents, records, and other information
relevant to your claim for benefits. However, certain documents, records, and other
information may not be available to you (such as information protected by attorney-client
privilege).
Generally, you will receive a response within 60 days (or, in the case of a disability claim,
45 days) after the Plan Administrator receives your appeal. The Plan Administrator may
notify you in writing before the end of the normal 60-day review period that it needs an
additional 60 days (or, in the case of a disability claim, 45 days) to review your claim
because of special circumstances. That notification will indicate the special circumstances
requiring the extension (such as not receiving required information) and when the Plan
Administrator expects to be able to respond to your claim. If you do not receive a response
within the applicable time period, please contact the Plan Administrator.
The Plan Administrator will consider your appeal, taking into account all comments,
documents, records, and other information submitted, including information not submitted
or considered in the initial decision on your claim. Any decision made by the Plan
Administrator on appeal will be final, conclusive, and binding.
Information Provided if Appeal is Denied
If your appeal is denied in whole or in part, you will receive a written response from the
Plan Administrator. The Plan Administrator’s response will include the following
information:
The specific reasons for the denial;
Reference to the specific plan provisions upon which the denial was based;
A statement that, upon request, you or your authorized representative is entitled
to receive, free of charge, reasonable access to and copies of documents, records,
and other information relevant to your claim for benefits. However, certain
documents, records, and other information may not be available to you (such as
information protected by attorney-client privilege); and
A statement that you have a right to bring a civil action under ERISA following
the adverse determination on your appeal.
If the Plan Administrator’s response does not include all of this information, please contact
the Plan Administrator and request the missing information.
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All decisions made by the Plan Administrator under this benefits claims procedure are
final, conclusive, and binding, and there shall be no further right of appeal.
Legal Proceedings
No legal action may be commenced prior to the completion of the benefit claims
procedures described in this section. In addition, no legal action may be commenced after
the later of
i. 180 days after receiving the written response of the Plan Administrator
to an appeal, or
ii. 365 days after an applicant's original application for a benefit.
You (or your spouse, contingent annuitant, alternate payee, or beneficiary) may have a
right to bring a lawsuit under ERISA, challenging the denial of an appeal of your claim for
benefits. If you do not fully utilize the claims procedures outlined previously, including the
right to appeal the initial denial of your claim, the Plan Administrator expects to assert that
any lawsuit you file attempting to recover on your claims for benefits should be dismissed
because you have not fully exhausted the available administrative remedies. A number of
courts have ruled that lawsuits brought by participants or beneficiaries seeking plan
benefits will be dismissed in these circumstances. You should discuss this point with your
legal advisor because there are differences in how courts address this issue under various
circumstances.
PLAN CONTINUATION
THUMS expects and intends to continue the Plan, but reserves the right to modify,
suspend, change, or terminate the Plan at any time in its sole discretion. Any amendment
to the Plan will be effected through a resolution adopted by, or the unanimous consent of,
the board of directors of THUMS or, in certain circumstances, by the Plan Administrator.
THUM’s decision to modify, suspend, change, or terminate the Plan may be caused by
changes in federal or state laws governing retirement benefits, the requirements of the
Internal Revenue Code or ERISA, or for any other reason. A Plan change may transfer
Plan assets and debts to another plan, or split the Plan into two or more parts. If THUMS
amends or terminates the Plan, it may or may not set up a different plan with similar or
identical benefits. If material changes that affect Plan participants are made in the future,
you will be notified.
Oral representations or promises will not be binding on the Plan. You should not rely on
any oral description of the Plan because the written terms of the Plan document will always
govern.
If the Plan is terminated, or if there is a partial termination of the Plan that affects you, you
will have a Vested right to your accrued benefit under the Plan. The amount of your
benefit, if any, will depend on the Plan’s assets, the terms of the Plan, and the benefit
guarantee of the Pension Benefit Guaranty Corporation (PBGC). Plan assets will be shared
among participants and beneficiaries according to the provisions of ERISA. If the Plan is
23
fully funded, you will receive your full benefits. Once your benefit amount has been
determined, it may be paid in the form of one or more cash payments to you, or in the form
of an insurance company annuity contract that will pay you a monthly income. The exact
form of payment may be set by law or, if there is a choice, the Plan Administrator will
decide on the type and timing of benefit payments.
After all benefits have been paid, and legal requirements met, the Plan will turn over any
remaining Plan assets to THUMS.
BENEFIT INSURANCE
Your pension benefits under this plan are insured by the Pension Benefit Guaranty
Corporation (PBGC), a federal insurance agency. If the plan terminates (ends) without
enough money to pay all benefits, the PBGC will step in to pay pension benefits. Most
people receive all of the pension benefits they would have received under their plan, but
some people may lose certain benefits.
The PBGC guarantee generally covers: (1) normal and early retirement benefits; (2)
disability benefits if you become disabled before the plan terminates; and (3) certain
benefits for your survivors.
The PBGC guarantee generally does not cover: (1) benefits greater than the maximum
guaranteed amount set by law for the year in which the plan terminates; (2) some or all of
benefit increases and new benefits based on plan provisions that have been in place for
fewer than 5 years at the time the plan terminates; (3) benefits that are not vested because
you have not worked long enough for the company; (4) benefits for which you have not
met all of the requirements at the time the plan terminates; (5) certain early retirement
payments (such as supplemental benefits that stop when you become eligible for Social
Security) that result in an early retirement monthly benefit greater than your monthly
benefit at the plan’s normal retirement age; and (6) non-pension benefits, such as health
insurance, life insurance, certain death benefits, vacation pay, and severance pay.
24
Even if certain of your benefits are not guaranteed, you still may receive some of those
benefits from the PBGC depending on how much money your plan has and on how much
the PBGC collects from employers.
For more information about the PBGC and the benefits it guarantees, ask your plan
administrator or contact the PBGC’s Customer Contact Center, PBGC, PO Box 151750;
Alexandria, VA 22315-17506 or call 800.400.7242 OR 202.326.4000. TTY/TDD users
may call the federal relay service toll-free at 800.877.8339 and ask to be connected to
800.400.7242.
Additional information about the PBGC’s pension insurance program is available through
the PBGC’s website on the Internet at http://www.pbgc.gov.
ADDITIONAL INFORMATION
All Contributions to this Plan are made by THUMS and are actuarially determined. Plan
funds are invested by the Plan Trustee. Benefits are paid at the direction of the Plan
Administrator.
The descriptions of Plan provisions contained in this Summary are applicable, unless
otherwise indicated, as of the date shown on the cover page. They are not necessarily
indicative of the terms of the Plan on other dates. Should you have questions regarding the
design of the Plan applicable to other periods of time, contact the CRC Pension Service
Center.
This is only a Summary of the Plan. The Plan is administered according to the Plan
document. If there is any conflict between this Summary and the legal document, the Plan
document will apply.
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Here is some information about the Plan and the persons who have assumed the
responsibility for its operation:
Name of Plan THUMS Long Beach Company
Pension Plan
Employer Identification Number 95-2381774
Plan Number 002
Plan Year Ends December 31
Plan Administrator and
Named Fiduciary
California Resources Retirement Investment
and Administrative Committee
9200 Oakdale Avenue, Suite 900
Los Angeles, CA 91311
888.848.4754
Plan Administration
Qualified Domestic Relations Order
Administration
CRC Pension Service Center
PO Box 6300
Newport Beach, CA 92658-6300
888.909.4156
CRC Qualified Order Team
PO Box 2900
Long Beach, CA 90801-2900
888.848.4754
Plan Sponsor and Address for
Service of Legal Process
THUMS Long Beach Company 111 W. Ocean Blvd., Suite 800
Long Beach CA 90802
888.848.4754
Plan Trustee Bank of New York Mellon Trust Company,
NA
c/o BNY Mellon Asset Servicing
135 Santilli Highway
Everett, MA 02149
Type of Plan Under ERISA, this Plan is considered a
defined benefit plan
Legal process may also be served upon the Plan Trustee.
26
YOUR ERISA RIGHTS
THUMS is not required to provide the benefits described in this Summary. However, if it
does provide them, it must meet certain legal requirements. You must be fully informed of
the benefits being provided, and your rights regarding these benefits under ERISA. ERISA
was signed into law to provide additional protection for workers covered under any benefit
plan. Your rights, as specified by law, are described as follows:
In addition to these pages describing your benefits, you will receive, where applicable, a
summary of the Plan's annual financial reports. The Plan Administrator is required by law
to furnish each participant with a copy of this summary annual report. You have the right
to examine all documents relating to your Plan (such as insurance contracts, trust
agreements, and Plan texts). They are available for examination without charge from the
Plan Administrator, and they are the governing documents in all cases. You can receive a
copy of any of these documents for a reasonable charge by sending a written request to the
Plan Administration address. If you should request any documents in writing from the Plan
Administrator and not receive them within 30 days (unless the delay is beyond the control
of the Plan Administrator), you have the right to file suit in a federal court. THUMS may
be required to pay a fine of up to $110 a day for each day of delay.
You also have the right to expect that the persons who are responsible for the operation of
the Plan act prudently and in the best interests of all Plan participants. These persons are
called fiduciaries. It is a THUMS policy that the Plan’s fiduciaries act in the best interest
of the Plan’s participants, and they will continue to do so. However, if a fiduciary violates
the requirements of ERISA, he or she may be removed and required to pay any losses to
the Plan caused by his or her imprudence.
If your application for a Plan benefit is denied, in whole or in part, you must receive a
written explanation of the reason for the denial. You have the right to have your claim
reviewed and reconsidered. If your benefit is denied improperly, you have the right to file
suit in a federal or state court. If Plan fiduciaries are misusing funds, you have the right to
file suit in a federal court, or request assistance from the United States Department of
Labor. THUMS will not (and cannot) dismiss you or discriminate against you to prevent
you from obtaining Plan benefits, or for exercising any of your rights under ERISA.
If you file suit in a court, the court will decide who will pay the court costs and legal fees.
If you are successful, the court may order the person you have sued to pay these costs and
fees. If you lose, the court may order you to pay these costs and fees, for example, if it
finds your claim is frivolous. If you need additional information, or have any questions
about your benefits, contact the Plan Administrator at the Plan Administration address. If
you have any questions about this statement or your rights under ERISA, contact the
nearest area office of the United States Pension and Welfare Benefits Administration,
United States Department of Labor, listed in your telephone directory, or the Division of
Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, United
States Department of Labor, 200 Constitution Avenue NW, Washington, D.C. 20210.
27
Once each year, you may make a written request to the Plan Administrator at the Plan
Administration address for a statement telling you whether you have a Vested benefit and,
if so, what your benefit payments would be at normal retirement age if you stopped
working under the Plan now. If you do not have a Vested benefit, the statement will tell
you how many more years you will have to work to become Vested in your benefit. You
may not request this information more than once each year.