The New Oxy Time Away Program Our agenda for today By the end of - PowerPoint PPT Presentation

February 2020 The New Oxy Time Away Program

Our agenda for today By the end of this session you The changes we are introducing support our values and culture will learn: Details! How time off and leaves will change, and how those participating in legacy programs will be affected What you need to do and where to get help You will be prepared ared for the special ial LTD OPEN ENRO ROLLMEN LLMENT March ch 2 throu ough gh March ch 13 2

We’re on to Phase 2 Phase e 1 Phase e 2 • Communicated in mid-December • Provide details about the new Oxy 2019. Time Away Program — Paid Time Off (PTO), Short-term Disability (STD), • Introduced the new Oxy holiday Long-term Disability (LTD), and other schedule effective January 1, 2020, leave programs. and all other components of the new Oxy Time Away Program, including a Phase 2 p progra rams s will l go into effect ct • preview of the new PTO schedule. April 1, 1, 2020. 0. 3

Every decision is evaluated carefully Late last year, we began the process of bringing the two companies together. Each step we’ve taken has helped us toward a goal of creating one industr stry-chan angin ging g org rgani nization. tion. In 2020, our goals are to: • Design programs that are competitive in our industry, sustainable under a range of market conditions, and that offer the best possible value to both you and Oxy. • Balance competitiveness, industry trends, financial stewardship, flexibility, legal requirements and business needs. • Drive productivity by enhancing all dimensions of employee well-being, recognizing that our programs are critical to helping employees balance the demands of work…and life away from work. 4

Our Time Away Program includes many components The new Time Away Program, effective April 1, 2020, impacts: Disa sability ty Leave Time me Off • Short-term Disability • Pregnancy Leave • PTO/Vacation • Long-term Disability • 9/80 Work Schedule • Bonding Leave • Bereavement • Family Care Leave • Jury Duty • Military Leave • Volunteer Day As a reminder… Special Note: Not all benefits are applicable for all employees. The new Holiday schedule became Represented union employees should refer to their collective bargaining agreement to determine benefit eligibility. effective January 1, 2020. 5

Who’s eligible The Oxy Time me Awa way Program m will be available to: • Salaried and hourly non-represented employees paid on a U.S. dollar payroll and who work a minimum of 20 hours per week. The follo lowing ng groups ps will keep all or parts ts of their eir existin sting progra rams: s: • Legacy APC offshore hourly (GoM) • Legacy Oxy represented union employees* *Represented union employees should refer to their collective bargaining agreement to determine if they are eligible to participate in all or part of this program. 6

At-a-glance: Legacy Oxy vs. Legacy APC Time Away Programs 1 13 26 Weeks Sick No limit 5 days sick time per event 5 days PTO or less Short-term Disability — Weeks 1 to 26 LTD Paid at 50% or 100%, depending on years of service Extended ed Illne lness Extended Sick Leave — Weeks 2 through 13 Short-term Disability — Weeks 14 through 26 PTO LTD Paid at 100% Paid at 66.67% Bonding Leave Pregnancy 6 weeks paid at 100% (must take within 12 months 8 weeks paid at 100% Birth h from birth/placement) Parent nt Parental Leave PTO and Extended Sick Leave 4 weeks paid at 100% (must take within 6 months 8 weeks paid at 100% from birth/placement) New Birth h Or Placeme ement nt Event Bonding Leave 6 weeks paid at 100% (must take within 12 Non-Bi Birth h months from birth/placement) Parent nt Parental Leave 4 weeks paid at 100% (must take within 6 months from birth/placement) 2 weeks at 100% (for Key: Key: Family ily serious health condition Care of family member) OXY APC FMLA unpaid 7

At-a-glance: NEW Oxy Time Away Program 1 13 26 Weeks Sick 5 days PTO 5 days sick time per event; no specific limit on number of events or less Short-term Disability — Weeks 2 through 26 STD STD PTO LTD Paid at 100% of base pay Bonding Leave Birth h Pregnancy 6 weeks paid at 100% of base pay , not to exceed 240 Parent nt 8 weeks paid at 100% of base pay hours (must take within 12 months from birth/placement) New Birth h Or Placeme ement nt Event Bonding Leave Non-Bi Birth h 6 weeks paid at 100% of base pay, not to exceed 240 Parent nt hours (must take within 12 months from birth/placement) 2 weeks at 100% of base pay, not to exceed 80 Family ily 2 weeks hours (for serious health condition of family Care at 100% member) 8

Short- and Long- term Disability 9 9

Legacy comparison: Short-term Disability (STD) Legac acy Oxy Legac acy APC Company Paid Program Shor ort-ter erm m Disab abili ility ty Exten ended ded Sic ick Leave Shor ort-ter erm m Disab abili ility ty Vendor In-house Unum Unum 50% or 100% of base pay, Benefit 100% of base pay 66.67% of base pay depending on service None, STD retroactive to After Elimination Period day one after five days of Five days of PTO Extended Sick Leave Sick Time Duration Weeks 1 – 26 Weeks 2 – 13 Weeks 14 – 26 10

NEW Oxy Short-term Disability (STD) Short-term Disability Plan Company Paid Administered by Oxy Leave Admin Benefit 100% of base pay Elimination Period Five days of PTO per event Duration Weeks 2 – 26 11

Legacy comparison: Long-term Disability (LTD) Legac acy Oxy Legac acy APC Who Pays Employee paid Company paid Vendor Prudential Unum Eligibility 30 hours per week 20 hours per week 50% or 60% of eligible base pay 66.67% of base pay Monthly Benefit (Benefit is non-taxable) (Benefit is taxable) Maximum Benefit $15,000 per month $12,000* per month Elimination Period 26 weeks 26 weeks Evidence of Insurability (EOI) Required if past 31-day eligibility None Benefits Continuation** Medical, dental, and basic life Most benefits and retirement accrual (During LTD benefit period) (to Social Security normal retirement age) After-tax: $0.484 per $100 (50%) Monthly Employee Rates None $0.678 per $100 (60%) *Legacy APC highly compensated employees are eligible for a monthly maximum benefit of up to $35,000. **For Represented (Union) employees: Refer to your collective bargaining agreement to determine eligibility for continuation of other benefit coverages while receiving LTD benefits. 12

NEW Oxy Long-term Disability (LTD) Three ree Long-ter erm Disabili ability ty Options ions NEW Core 40% % LTD NEW Buy-Up 60% % LTD NEW Tax Choice e 60% % LTD Core: Company paid Who Pays Company paid All employee paid Buy-Up: Employee paid Vendor Prudential Eligibility 20 hours per week 40% of base pay, max 60% of base pay, max 60% of base pay, max Benefit $10,000 per month $15,000 per month $15,000 per month Shared contribution Company paid; Employee paid after-tax; Taxability (company and employee paid) benefit taxable benefit non-taxable Benefit partially taxable Elimination Period 26 weeks 2020 Open Enrollm llmen ent: t: None / Ongoing: oing: Required past 31 days of eligibility for the Evidence of Insurability (EOI) Buy-Up and Tax Choice options Benefits Continuation Follows current legacy continuation – no changes in 2020 (During LTD Benefit Period) Monthly Employee Rates $0 $0.356 $0.581 13 (per $100 of base pay)

Example: NEW Oxy options The following shows a breakdown of what’s covered under the new LTD plan. The example assumes a full -time, regular employee with an annual base salary of $75,00 ,000 and tax filing status of Single. NEW NEW Core 40% 0% LTD NEW NEW Buy-Up 60% % LTD NEW Tax Choice NEW e 60% 0% LTD Com ompany paid id Core e (40%): : Com ompany paid id Emplo loyee ee paid id (Pre-tax) + (Pre-tax) (After er-tax) Who pays Buy-Up (20%): : emplo loyee ee paid id (After er-tax) a. Employee e rate (per $100 pay) $0 $0.356 $0.581 b. Employee e annual al cost $0 $267 $436 a x (base pay / 100) c. Gross monthly hly benefit it amoun unt $2,500 $3,750 $3,750 LTD % x base pay / 12 months d. Net monthly thly benef efit it amoun unt $2,090 $3,461 $3,750 c – estimated taxes Net t annual al benef efit it va valu lue $25,0 ,080 80 $41,2 ,265 65 $44,5 ,564 64 (no employee cost) (d x 12) - b For illustrative purposes only. Examples are estimates and will vary based on the employee’s specific tax situation. Amounts are rounded up to whole dollars. 14