Chevron Lump Sum Segment Rate Summary - June 2025

This monthly newsletter aims to track the interest rates that calculate the lump sum in the Chevron Retirement Plan and give an estimate of how it might affect your retirement benefit.

June Segment Rate Summary

The segment rates for June are 4.43%, 5.46%, and 6.13%. This brings the three-month average to 4.48%, 5.51%, and 6.14% for a September 2025 benefit start date. For Chevron employees hired before 2008, we estimate the lump sum benefit to decrease about .20% for an average vested 65-year-old in September versus August, though please check your benefit calculator for your actual calculation.

All three segment rates decreased in June compared to May, but the lump sum is still estimated to drop slightly. In March through May, the segment rates increased on average with each consecutive month. We call this a “back-heavy” rate pattern which makes a decrease in the lump sum calculation more likely as older, preferable lower rates leave the calculation. For September’s lump sum, even though the June rates are lower than the May rates, the March rates that fell out of the three-month average are still lower than the new June rates entering the average. Now that the back-heavy pattern has been broken, the lump sum has a better chance of increasing going forward.

To read more about how to spot patterns in the segment rates to predict movement in the lump sum, including back-heavy and front-heavy patterns, please visit the updated link below.

Front and Back-Heavy Rate Patterns

How Does this Affect Me?

The Chevron Retirement Plan offers a substantial benefit to Chevron employees over many other companies’ plans. It is one of the few remaining retirement pension plans that still offers a lump sum benefit. Since the Pension Protection Act of 2006, the calculation of the lump sum has become more complicated now relying on corporate bond yield curves, known as segment rates, instead of the 30-year treasury rate that was used in the past. In a low interest rate environment, it is important for Chevron employees to understand how their lump sum is calculated and how quickly the benefit can change.As interest rates lower, the lump sum increases, and vice-versa. If rates increase 1% across the board, it could lower your lump sum by almost 10% depending on your age and length of service.  This calculation applies only to Chevron employees hired before January 1, 2008.

Baird Retirement Management provides highly specialized retirement planning expertise for business professionals nearing retirement. Our perspectives are backed by our extensive experience, comprehensive industry knowledge and immersion in the latest retirement, income, and tax planning strategies. By focusing on select companies and industries, we can tailor our retirement planning advice to help meet the specialized planning needs and considerations of employees within a company or industry.

"Perspective and expertise from specialists who understand retirement planning and, more importantly, the specific situations you're in."

The PL Group from Baird Retirement Management has not been hired by Chevron and is not affiliated with Chevron in any fashion. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP^®, CERTIFIED FINANCIAL PLANNER™ and federally registered in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirement. Robert W. Baird & Co. Incorporated. 777 East Wisconsin Avenue, Milwaukee, WI 53202.800-RW-BAIRD. rwbaird.com. MC-38536.