Company Benefits During Work Stoppage

December 12, 2008 9:40 AM

 

The following is a response from the Company to the Union on questions concerning employee benefits during a work stoppage.

 

Access to the ExxonMobil Thrift Fund, i.e., loans and withdrawals. How will payments of loans be handled?

Contributions to the Savings Plan are based on employee’s pay. When one is absent from work without pay due to a work stoppage, no employee contributions are made and there is no Company match. However, other transactions are permitted subject to the usual eligibility rules, including withdrawals and loans. All savings plan loans require regular repayments and during a work stoppage repayment is made by the employee directly to CitiStreet LLC via personal check, money order or cashier’s check. Failure to continue regular payments may require the Trustee to default the loan.

 

ExxonMobil credit card payments that are deducted from payroll.

The credit card may continue to be used but the employee absent due to work stoppage will be billed directly by GE Capital once the employee is no longer receiving a paycheck. Payment must be received by the due date to qualify for the discount.

 

Retirement Eligibility

If the strike/lockout lasts more than 30 days, the period of absence will not count towards meeting the 15 years of Benefit Plan service required to become a retiree. Pensions and vesting service will continue up to one year following commencement of the work stoppage.

 

Employees who are on vacation:

During a strike/lockout individuals may not commence vacation. Employees on vacation at the time a strike/lockout begins will be permitted to remain on vacation until the previously scheduled vacation time is completed.

 

Employees who are on long or short-term disability:

Employees are not eligible to receive disability benefits for any period of disability that begins during the strike or lockout. Employees already absent due to disability when the strike or lockout begins will continue to receive disability plan benefits as long as they continue to meet the plan’s requirements for continued benefits.

 

Transition to Cobra medical and dental coverage:

A strike or a lockout is a COBRA qualifying event because the employee loses overage under the group health plans because of a reduction in hours. Plan participants’ coverage ends on the last day of the month in which the work stoppage begins. If the employee elects COBRA, the employee will continue coverage at a cost equal to the full cost of the plans plus an additional 2% administration charge. Employees will be advised of the cost of the COBRA coverage and the address to remit monthly payments.

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