2016

OPEN ENROLLMENT GUIDE Ben efi t w i t h O x y

your health. your life. your future.

Occidental Petroleum Corporation

Enroll now through November 16

What’s new for 2016

It’s time to make important decisions about your 2016 Oxy benefits. This guide, My HR (on oxynet.oxy.com), and OxyLink Online provide information about your choices and include instructions for enrolling or making changes for 2016. Oxy is committed to providing a competitive benefits package, and that will continue in 2016. Here is what’s new or changing: • Group Universal Life (GUL). A new provider—MetLife. As a result, there will be a 16% rate reduction. We will also offer a one-time special opportunity to enroll or increase coverage by one level for you and your spouse without proof of good health. Maximum coverage amounts have increased for employees from six to eight times base pay, and from $150,000 to $200,000 for spouse coverage. • Vision. A new, standalone vision plan through VSP® Vision Care. Benefit coverage includes examinations and glasses (frames and lenses) or contact lenses. Note: If you enroll in Aetna or Anthem medical coverage, you have access to a routine vision exam paid at 100%. • My HR. My HR is your one-stop source for information about your Oxy benefits, as well as resources to support your health, wellness, financial security, work/life, career and more. You’ll find Oxy’s new HR portal on oxynet.oxy.com. • Perks At Work. A new discount and rewards program for you and your family through Next Jump, which is available now through My HR. • Visit ALEX®—Oxy’s virtual benefits counselor. Use ALEX to help you make your benefit choices. ALEX guides you through various scenarios so you can determine which medical plan suits your needs. ALEX also provides information on dental, vision, Health Savings Account (HSA) and Flexible Spending Account (FSA) benefits. You can get to ALEX from My HR.

WHAT’S INSIDE 2

Open Enrollment Actions for 2016

4

Your Health

6

Medical Coverage

11 Health Savings Account (HSA) 14 Dental Coverage 16 Vision Coverage 18 Flexible Spending Accounts (FSAs) 20 Life Insurance 24 Long-Term Disability (LTD) 25 Important Things to Remember

What’s Driving the Cost of Health Care At Oxy, we are committed to the health of our employees. That’s why we offer comprehensive and affordable health insurance coverage. The Patient Protection and Affordable Care Act (PPACA) presents significant challenges, including tax implications and coverage mandates that must be incorporated into medical plans. This, coupled with ongoing cost increases among doctors, hospitals and other providers, contributes to the change in health care costs. At Oxy, decisions about employee out-of-pocket costs are taken seriously. The changes in 2016 help to balance the impending implications of PPACA, current and projected costs to Oxy, and the financial impact to employees.

• Employee Contributions. –– Employee contributions for the nationwide Aetna and Anthem medical plans will increase approximately 8% for 2016. Annual deductibles and out-of-pocket maximums for the Anthem and Aetna medical plans, and out-of-pocket maximums for prescription drugs will also increase. Note: Under the Aetna Basic medical option, the salary cap will increase from $50,000 to $75,000 so more employees will have the lower out-of-pocket annual limit. See the table below. –– The Western New York region plans: No change in employee contributions for Independent Health. BlueCross BlueShield of Western New York will have a 38% increase in employee contributions, adjustments to deductible and out-of-pocket maximums, and the addition of coinsurance. –– MetLife is offering a 16% rate reduction when you elect Group Universal Life (GUL) insurance during Open Enrollment. –– No changes to dental plan contributions. –– Rates for Long-Term Disability and Accidental Death and Dismemberment are unchanged. Your contributions will increase only to keep pace with your salary.

FEATURES

ANTHEM BLUE CROSS

AETNA BASIC

AETNA HEALTHFUND

$ 105 $ 210 $ 314

$ 117 $ 233 $ 350

$ 31 $ 63 $ 94

MONTHLY CONTRIBUTIONS

• Employee Only • Employee + One • Family ANNUAL DEDUCTIBLES

• Individual • Family

Network

Non-Network

Network / Non-Network

Network / Non-Network

$400 $800

$800 $1,600

$400 $800

$1,400 $2,800 For Employee + One and Family coverage, the entire corresponding deductible must be met before the plan begins to pay benefits. Applies to both medical and drugs.

Individual deductible also applies. Applies to medical expenses only.

OUT-OF-POCKET (OOP) MAXIMUM

Medical • Individual • Family

Network

Non-Network

Network / Non-Network

Network / Non-Network

$2,000 $4,000

$4,000 $8,000

Salary< $75,000 $1,800 $3,000

$3,000 $6,000

Salary $75,000+ $2,500 $4,500

When your share of covered expenses (including the deductible) reaches the OOP limit, covered expenses for the remainder of the calendar year are paid at 100%. (Copays excluded.)

Individual OOP also applies. Applies to medical expenses only.

Prescription

$1,500 per person

The entire OOP must be met before the plan begins to pay 100%. Applies to both medical and prescription drugs.

$1,500 per person

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Open Enrollment actions* During Open Enrollment, you may make the following elections. Coverage is effective January 1, 2016, through December 31, 2016. You cannot change your elections during the year unless you have a qualifying life event.

BENEFIT PLAN Health Care (Oxy and employee share in the cost) • Medical Care • Dental Care

for

2016

ACTION REQUIRED FOR OPEN ENROLLMENT

• Action is required to enroll new dependents, drop or change medical and/or dental coverage (see page 4 for definition of eligible dependent).

• No action is required if you wish to retain the same option and level of coverage for 2016. Applicable 2016 contributions will apply. Vision (New!) (Employee-paid)

• Action is required to enroll yourself and dependents.

Health Savings Account (HSA) (Employee contributions optional)

• Action is required to enroll in an HSA if you are enrolled in the Aetna high-deductible HealthFund medical option. Note: You may change your HSA election during the year by calling the OxyLink Employee Service Center.

Flexible Spending Accounts (FSAs) (Employee-paid) • Health Care FSA • Dependent Care FSA

• Action is required to enroll in a Health Care and/or Dependent Care Spending Account in 2016.

Long-Term Disability (LTD) (Employee-paid)

• Action is required as follows:

Group Universal Life (GUL) (Employee-paid)

• Action is required as follows:

Accidental Death & Dismemberment (AD&D) (Employee-paid)

• Action is required if you want to change your current elections.

Note: Review information about the Limited Purpose FSA with an HSA on page 18 if you enroll in the high-deductible HealthFund medical option and make contributions to your HSA in 2016.

–– To increase your LTD coverage without providing proof of good health. –– To decrease or cancel coverage. –– If you’re enrolling in LTD for the first time, you need to apply for LTD coverage by completing a LTD Health Statement (available on My HR) and submit it to Prudential for approval. • No action is required if you are currently enrolled for LTD coverage and you wish to maintain your level of coverage for 2016.

–– To enroll or increase GUL coverage for yourself and/or spouse during this one-time special enrollment. Enroll on MetLife’s website. Go to My HR for quick access to MetLife. –– To enroll a child (you must elect coverage). –– To review and/or set up your GUL beneficiaries.

* For more detailed information and plan changes, see each plan’s Summary Plan Description (SPD), current insurance policies as applicable, subsequent issues of the Benefit News or The Source.

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How to Enroll Follow these steps to enroll in Oxy’s benefit plans: • Read this Open Enrollment Guide to understand your options and consider your elections before you enroll. • Enroll online. For health, life and disability benefits, log in to OxyLink Online with your Network ID and password, select Employee Self Service > Ben Open Enrollment. You will receive a confirmation statement by email reflecting your 2016 elections. • To enroll in or increase GUL coverage, log in to MetLife’s website during this one-time special enrollment. Be sure to review and/or set up your GUL beneficiaries. Go to My HR for quick access to MetLife.

Eligible Participants Generally, all full-time, non-represented Oxy employees who are paid on the U.S. dollar payroll are eligible to participate in the benefit plans described in this booklet. Union-represented employees are eligible only if the applicable collective bargaining agreement specifically provides for participation. Employees who are regularly scheduled to work at least 30 hours per week are considered full-time.

Visit ALEX® ALEX is available to help you make the right benefit decisions. Access ALEX from My HR.

If You Do Not Make a Change If you do not make a change to your medical and/or dental coverage during Open Enrollment, you will automatically retain your current coverage and pay the 2016 contribution rate for your elected level of coverage.

COMING SOON: Dependent Eligibility Audit We are committed to providing you an affordable benefits package. To help us continue to do that, we’re conducting a dependent eligibility audit to ensure only eligible dependents are covered by our benefit plans. See page 4 for the definition of an eligible dependent. You can prepare during Open Enrollment by making sure your dependents’ information is accurate and up-to-date.

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your health. Oxy offers a choice of plans that support your health and wellness and help you manage your health care costs. You and Oxy share the cost of medical and dental coverage. You pay your share through pretax contributions, copayments or coinsurance, and/or annual deductibles. Who You Can Cover

Your Eligible Dependents

Under both the medical and dental plans, you may select from the following coverage levels:

Generally, your eligible dependents under the medical, dental and vision plans are your legal spouse* (unless legally separated) and your children under age 26. Eligible dependent children, regardless of the child’s student, employment, or marital status or residence, include:

• Employee Only • Employee + One Dependent

• Your natural children

• Family

• Children legally adopted or placed for adoption with you

If you enroll in both a medical and dental plan, you may select different levels of coverage and dependents for each plan. Under the vision plan, you may select from the following coverage levels: • Employee Only • Employee + One Dependent • Employee + Children

• Stepchildren and foster children • Other children whom you claim as dependents on your federal income tax return, for whom you and/or your spouse have primary legal custody, who live with you in a regular parent-child relationship, and for whom you can provide required documentation * All legal marriages will be recognized for purposes of benefit eligibility, regardless of the state in which you reside.

• Family

Add/review dependents When you are enrolling in medical, dental and vision coverage on OxyLink Online, you will need to enter information about new dependents you want to cover, including date of birth and Social Security number. You will also need to enter the dependent’s relationship to you. For children, choices include Child (natural and legally adopted children and children placed with you for adoption) and Rec Child (recognized child), which applies to any other children who qualify as your eligible dependents (e.g., stepchildren) and for whom you can provide required documentation.

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How to decide • If you are married and your spouse is employed by another company that offers health care coverage, compare costs and plan features to determine which company’s coverage, or both, is right for you and your dependents.

Tools to help you decide

• How much will you pay out-of-pocket for health care in 2016? Choose among available options by comparing covered expenses, contribution rates, copayments/coinsurance, deductibles, out-of-pocket limits, prescription drug costs, etc.

• Plan Cost Estimator: By entering your family’s expected health care expenses, the Plan Cost Estimator can help you decide which medical option might be best for you. This tool allows you to see a comparison of your estimated health care costs under all available plans. The Plan Cost Estimator also helps you decide how much to contribute to FSA and HSA accounts. You can get to the Plan Cost Estimator on My HR.

• Are you comfortable with your potential cost under a high-deductible health plan in exchange for lower contributions and the opportunity to save for the future in a Health Savings Account (HSA)? • Consider paying for out-of-pocket medical, dental, vision and prescription drug expenses you and your dependents incur with pretax dollars by enrolling in a Flexible Spending Account (FSA) and/or an HSA.

• Meet ALEX, our virtual benefits counselor. ALEX can help you determine which Oxy benefit plans are best for you. ALEX will walk you through the medical, dental and vision plans and the FSA and HSA. You can get to ALEX from My HR.

Perks at Work This new discount and rewards program is available for you and your family through Next Jump. Take advantage of exclusive corporate pricing on a wide range of products from groceries, restaurants and movie tickets to cell phones, computers, cars, travel and more. You can save even more on all your online purchases with WOWPoints, which can be redeemed for free or discounted items from merchants.

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Medical Coverage The medical option you choose and the coverage level you select— Employee Only, Employee + One Dependent, or Family—determine your monthly pretax contribution amount.

Prescription Drug Coverage Prescription drug coverage is provided through Express Scripts, Inc. (ESI) for the Aetna and Anthem medical plan options.

Network Options Oxy offers employees three nationwide medical options through Aetna and Anthem. These plans help you pay for the cost of most preventive care and medically necessary care, and protect you from catastrophic medical expenses. These plans offer significant cost savings when you use network providers. None of these plans requires a referral to see a specialist.

The HealthFund option The HealthFund option has lower employee contributions but higher annual deductibles and out-of-pocket maximums. When you enroll in this plan, you can open a Health Savings Account (HSA) that offers triple tax advantages:

Vision and Hearing Discount Programs If you enroll in an Aetna medical or dental plan or the FSA, you are automatically eligible for Aetna’s vision and hearing discount programs. If you enroll in the Anthem Blue Cross medical option, similar programs are available. The programs are offered at no cost and can provide you and your enrolled dependents significant savings when you use participating providers. These programs can provide substantial discounts on hearing exams and hearing aids and on eyeglass frames, corrective lenses, contact lenses, non-prescription sunglasses, contact lens solutions and accessories. The vision programs also offer discounts on LASIK surgery and eye examinations, and Aetna offers a mail-order contact lens program.

• Your contributions are tax-free going in to your account, • You withdraw money tax-free when you use it to pay for eligible expenses, • And earnings on the money in your HSA grow tax-free. The HealthFund option can be a wise choice for a broad range of employees, but the financial risk of a highdeductible plan is not for everyone.

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Finding participating providers in your area To find local network providers under the Aetna and Anthem medical options, the Aetna dental plan, the VSP vision plan, and the vision and hearing discount programs, go to My HR.

Aetna Options

Regional Medical Options

Two Aetna options are available—the Aetna Basic (low deductible) and the Aetna HealthFund (high deductible) option. Typically, after the deductible, these options pay a percentage of covered expenses that varies depending on whether you use a network provider.

Employees in Western New York may also choose from two Health Maintenance Organizations (HMOs): Independent Health and BCBS of Western New York.

Anthem Blue Cross Option Anthem Blue Cross offers one plan option. When you use network providers, you’ll pay a fixed-dollar copay for most common expenses such as office visits and prescription drugs. For other services, you pay a percentage of covered expenses after a deductible for care that is typically less frequent. • Review the Medical Options Comparison Chart on page 8 for a quick look at the monthly contribution amounts, annual deductibles, and other major features of the Aetna and Anthem options. Summaries of Benefits and Coverage are available on My HR.

With an HMO, you select a primary care physician (PCP) to coordinate all of your care. You pay a fixed-dollar copay for each office visit. Monthly contributions vary by option. Covered medical services typically must be received from a specific network of doctors, hospitals and other medical providers associated with that organization. • During Open Enrollment, if you switch to a different regional medical option or enroll for the first time, you will need to complete and submit an enrollment form available on OxyLink Online no later than November 16. You may also call the OxyLink Employee Service Center to obtain a detailed enrollment packet. Coverage ID cards should be mailed to you from the provider you select by the end of January.

Regional medical options info Information about the regional medical options, including any changes effective January 1, 2016, are available on My HR.

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Nationwide Medical Options Comparison FEATURES

ANTHEM BLUE CROSS

AETNA BASIC

AETNA HEALTHFUND

MONTHLY CONTRIBUTIONS (Your prorated contribution will be deducted each pay period on a pretax basis)

• Employee Only • Employee + One • Family

$ 105 $ 210 $ 314

$ 117 $ 233 $ 350

$ 31 $ 63 $ 94

Health Savings Account (HSA)

Employee Only

Employee + One/Family $6,750 $1,000

• Maximum Contribution • Catch-up Contribution Age 55+

Not permitted—per IRS rules Not permitted—per IRS rules

Not permitted—per IRS rules Not permitted—per IRS rules

$3,350 $1,000

Flexible Savings Account (FSA)

Regular FSA provisions apply

Regular FSA provisions apply

Limited Purpose FSA only. Before deductible: may only be used for dental, vision and certain preventive drugs and services. After deductible: may be used like a regular FSA for all qualified health care expenses.

Network

Non-Network

Network / Non-Network

Network / Non-Network

$400 $800

$800 $1,600

$400 $800

$1,400 $2,800 For Employee + One and Family coverage, the entire corresponding deductible must be met before the plan begins to pay benefits. Applies to both medical and drugs.

ANNUAL DEDUCTIBLES

• Individual • Family

Individual deductible also applies. Applies to medical expenses only.

OUT-OF-POCKET (OOP) MAXIMUM Network

Non-Network

Network / Non-Network

Network / Non-Network

• Individual • Family

$2,000 $4,000

$4,000 $8,000

Salary < $75,000 $1,800 $3,000

$3,000 $6,000

When your share of covered expenses (including the deductible) reaches the OOP limit, covered expenses for the remainder of the calendar year are paid at 100%. (Copays excluded.)

Individual OOP also applies. Applies to medical expenses only.

Salary $75,000+ $2,500 $4,500

The entire OOP must be met before the plan begins to pay 100%. Applies to both medical and prescription drugs.

LIFETIME MAXIMUM (per person) Unlimited

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Unlimited

Unlimited

Nationwide Medical Options Comparison (continued) FEATURES

ANTHEM BLUE CROSS

AETNA BASIC

AETNA HEALTHFUND

OFFICE VISITS Network

Non-Network

$20 copay $40 copay

70% 70%

Network

Non-Network

Surgery; Diagnostic X-rays Not Billed by Physician; Lab; Ambulance

90%

70%

80% / 70%

Chiropractic Care (Maximum 25 visits per year)

90%

70%

80% / 70%

Network

Non-Network

Network / Non-Network

$0 copay $0 copay $0 copay $0 copay $0 copay

70% 70% 70% 70% 70%

100%, no deductible / 70% 100%, no deductible / 70% 100%, no deductible / 70% 100%, no deductible / 70% 100%, no deductible / 70%

$0 copay

70%

100%, no deductible / 70%

• Primary Care Physician • Specialist

Network / Non-Network 80% / 70% 80% / 70%

OTHER MEDICAL EXPENSES Network / Non-Network

PREVENTIVE CARE

• Routine Physicals/Well Child Care • Flu Shots • Mammography • PSA Test • Cervical Cancer Screening (and exam)

• Colorectal Cancer Screening

All preventive services are subject to age and frequency guidelines. VISION CARE

• Routine Exam • Materials

Network

Non-Network

Network / Non-Network

$0 copay Not covered

70% Not covered

100%, no deductible / 70% Not covered

Coverage levels apply only to covered expenses. Coinsurance (amounts indicated as percentages in the table) is after the deductible unless otherwise noted. Non-coinsurance services are covered at 100% after the designated fixed-dollar copay. Anthem Blue Cross copays do not apply to deductibles. Most non-network services are subject to usual and customary (U&C) or local plan allowance limits. For additional information about plan provisions, refer to the Summary Plan Description on My HR and subsequent issues of the Benefit News orThe Source.

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Nationwide Medical Options Comparison (continued) FEATURES

ANTHEM BLUE CROSS

AETNA BASIC

AETNA HEALTHFUND

MENTAL HEALTH AND SUBSTANCE ABUSE TREATMENT

• Inpatient/Outpatient Facility • Outpatient Office Visit

Network

Non-Network

90% $20 copay

70% 70%

Network / Non-Network 90% / 70% 80% / 70%

HOSPITAL/SURGICAL CENTER Network

Non-Network

90%

70%

Network

Non-Network

Emergency admissions must be certified within 48 hours of admission.

90%

90%

Precertification Requirements

• All inpatient care must be precertified. • In most cases, network providers will handle precertification. • If you use non-network providers, it is your responsibility to obtain precertification to avoid a noncompliance

• Inpatient/Outpatient

Network / Non-Network 90% / 70%

EMERGENCY ROOM Network / Non-Network 90% / 90%

Important: No benefits for non-emergency use of emergency room.

penalty of up to $500.

Prescription Drugs (Express Scripts) FEATURES

ANTHEM BLUE CROSS

AETNA BASIC

AETNA HEALTHFUND

• Deductible

• No deductible

• No deductible

• You pay the full cost of drugs until the

• Out-of-Pocket (OOP) Drug

• Using lowest-cost option,

• Using lowest-cost option, separate

• No separate annual OOP drug limit.

PRESCRIPTION DRUGS annual deductible is met. Limit

separate annual OOP drug limit is $1,500 per person.

annual OOP drug limit is $1,500 per person.

Using the lowest cost approach (i.e., generics and mail order for maintenance drugs), you pay*:

• Retail; up to 30-day supply (penalty applies after 2nd refill at retail for maintenance drugs)

• Mail Order; up to 90-day supply

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Generic $10 Preferred $30 Non-Preferred $50

Generic $10 Preferred 25%, Min $10/Max $50 Non-Preferred 25%, Min $25/Max $100

Generic $10 Preferred 25%, Min $10/Max $50 Non-Preferred 25%, Min $25/Max $100

Generic $20 Preferred $60 Non-Preferred $100

Generic $20 Preferred 25%, Min $20/Max $100 Non-Preferred 25%, Min $50/Max $200

Generic $20 Preferred 25%, Min $20/Max $100 Non-Preferred 25%, Min $50/Max $200

* Certain preventive drugs are covered at 100% ($0 copay). The list can be found on My HR or contact Express Scripts.

Health Savings Account (HSA) When you enroll in the Aetna HealthFund medical option, you can open an HSA to pay for current and future qualified health care expenses. The HSA is administered by PayFlex.

HSA Contributions You may choose to make tax-free contributions to your HSA, up to the annual limits set by the IRS:

About the HSA An HSA is a special, tax-advantaged savings account that works with a high-deductible, qualifying health plan such as the Aetna HealthFund medical plan. The HSA offers a way of saving money to pay for your current and future medical expenses. Unlike a Flexible Spending Account (FSA), an HSA has no “use it or lose it” rule. Money remaining in the account at year-end rolls over (stays in your account) for later use. You own your HSA, so you keep it, even if you change medical plans or jobs. With an HSA, you control how your health care needs are met and financed. You decide how much money you want to contribute each year and how that money should be spent or saved. Because you retain ownership of any unused funds, you may be more aware of the true cost of services and more deliberate in your decisions. You may price shop, ask more questions, and get more involved in prevention and treatment. Making contributions to fund your HSA is voluntary—you may enroll in the HealthFund medical option without contributing to or establishing an HSA.

HSA Qualified Expenses

COVERAGE LEVEL

MAXIMUM CONTRIBUTION

CATCH-UP CONTRIBUTION*

Employee Only

$3,350

$1,000

Employee + One

$6,750

$1,000

Family

$6,750

$1,000

* If you are age 55 or attain age 55 by the end of 2016.

Contributions to your HSA may be made in one or both of the following ways: • Pretax payroll contributions: Deductions will be made before federal and state (in most states) taxes are taken from your paycheck. To use this method, elect an annual HSA contribution of at least $1 during your online enrollment and Oxy will pay your monthly PayFlex HSA administration fee. • After-tax contributions: You may send periodic or one-time after-tax contributions directly to PayFlex by check or through electronic funds transfer from your bank account. You can contribute any time during the year, or up until April 15 of the following year, then claim your after-tax contributions as a deduction when you file your tax return. You will need to contact PayFlex directly to set up your account unless you also elect an HSA payroll contribution. Alternatively, you may choose to set up your own HSA at a local bank or credit union, and you will be responsible for any associated fees.

You may use your HSA to pay for qualified, health-related expenses allowed by the IRS, including deductibles, copays and coinsurance. In addition, certain expenses not covered under Oxy’s medical plans may be considered a qualified expense by the IRS. For more examples of HSA qualified expenses, go to My HR or the PayFlex website.

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HSA Tax Advantages

How to Use Your HSA

• Contributions you make to your HSA through pretax payroll deductions are not considered taxable income on your federal income tax return. Contributions are also nontaxable in most states.

If you enroll in an HSA, you will receive a PayFlex HSA MasterCard in your name. This card may be used like any debit card, for example, at the doctor’s office, pharmacy or hospital. Additional cards for family members are available upon request.

• Any after-tax contributions can be taken as an “above-the-line” tax deduction when you file your tax return, thereby reducing your taxable income by the after-tax amount you contributed to your HSA. You do not have to itemize your deductions to benefit. • HSA funds accumulate interest and earnings tax-free. • Withdrawals for qualified expenses are tax-free. • In the event of your death, your HSA balance can transfer to your surviving spouse tax-free, if you name your spouse as beneficiary.

• Use your PayFlex HSA debit card or their optional online issued checks to pay for qualified expenses with your HSA funds. • Alternatively, you can pay for current expenses out-of-pocket and leave your HSA funds in your account to grow tax-free for future use. By keeping your receipts, you can access your HSA funds at any time in the future to reimburse yourself tax-free for qualified expenses you paid out-of-pocket. You may set up direct deposit to a bank account of your choice on the PayFlex website. • Any unused balance in an HSA automatically rolls over year after year (i.e., stays in your account until used).

More information about HSAs For various HSA publications and tools to assist you (HSA Quick Reference Guide, Frequently Asked Questions (FAQs), forms, etc.), go to the PayFlex website from My HR and select my resources.

• You do not need to file a claim form to access your HSA funds; however, you should keep all of your receipts and documentation in case they are requested by the IRS. • If you use your HSA to pay for non-qualified expenses, you must report the expense as taxable income on your tax return. An additional 20% penalty tax on non-qualified expenses will apply unless you are at least age 65 or disabled.

How to decide • Are you comfortable with the increased financial risk of a highdeductible medical plan? • Review your health services and expenses for the past few years. Do you want the opportunity to save money in a tax-free HSA to pay for your current and future health care expenses? • Are you looking for additional opportunities to save tax-free for your retirement? • Compare your contributions under the Aetna HealthFund medical option versus other available medical options. Remember, you can fund your HSA with some or all of the difference in cost.

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HSA Investment Options

Build Your Nest Egg

Your contributions to the HSA will be deposited in an account with Citibank. Until you accumulate $1,000 in your HSA, your contributions will be invested in an interest-bearing, FDIC-insured cash account (earning 0.25% as of January 2016).

An HSA not only can help you pay for current health care expenses on a tax-free basis, it can be a powerful tool to help you build longterm savings for your retirement. This is because an HSA provides tax benefits beyond those of other tax-deferred savings vehicles. Contributions to an HSA are excluded from taxable income—even withdrawals are tax-free when used to pay for qualified health care expenses.

Once you reach the $1,000 minimum balance, you may open an investment account. Any balance above $1,000 in your HSA is available for you to invest in a diversified group of mutual funds offered by Citibank. Your HSA account balance and transaction history are available on the PayFlex website.

Tools to help you decide • Use our virtual benefits counselor, ALEX. You can get to ALEX from My HR. • Use the Plan Cost Estimator to help you determine if a high-deductible plan is right for you and your family, and how much to contribute to an HSA. You can get to the Plan Cost Estimator on My HR. You also may want to consult with your tax advisor about the tax advantages an HSA can provide.

You may choose to pay for your current expenses out-of-pocket and let your HSA grow and accumulate earnings tax-free for future expenses like long-term care premiums or health expenses during retirement. If you pay for your medical costs with after-tax money, or you remain healthy and don’t need to withdraw from your HSA, your balance can increase by investment earnings that accumulate tax-free. You may then use the money in the account to supplement your retirement income. When you reach age 65, withdrawals can be made for non-medical purposes but are taxed as ordinary income. Funds used for qualified medical expenses are never taxed.

Beneficiary Designation In the event of your death, your HSA balance can transfer to your surviving spouse tax-free, but only if you name your spouse as beneficiary. If you do not name your spouse, or your beneficiary is not your spouse, the funds will be taxed as ordinary income. You can designate your beneficiary on the PayFlex website.

States Vary on HSA Tax Treatment References in this document to the “tax-free” nature of HSAs apply to federal income tax. HSAs are also tax-free in most states. As of November 2015, some states in which Oxy operates (e.g., Alabama and New Jersey) have not passed legislation to grant state tax benefits to HSA contributions and investment earnings like those available at the federal level. The information provided in this document is not tax advice. While the information is believed to be accurate as of the print date, it is subject to change. Consult a qualified tax expert for advice on determining eligibility for any tax benefits.

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Dental Coverage The dental plan, administered by Aetna, covers preventive dental care and services that are essential to the proper care of your teeth. The Aetna dental plan offers significant cost savings when you use network providers. If you use a non-network dentist, the plan pays the same percentage of covered expenses, but only up to the plan’s “usual and customary” limits—you pay the rest. Here is an overview of the 2016 dental plan.

AETNA’S DENTAL PPO/PDN MONTHLY DENTAL CONTRIBUTIONS Coverage Level

• Employee Only • Employee + One • Family

$12 $24 $36

ANNUAL DEDUCTIBLE

• Individual • Family

$50 $150

BENEFIT MAXIMUMS

• Annual maximum • Lifetime maximum • Lifetime orthodontic maximum

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• $2,000 per covered individual per calendar year • Unlimited, except for orthodontic • $2,500 per covered dependent under age 19

COVERED SERVICES

PLAN PAYS

Preventive and Diagnostic Services • Two routine oral exams annually • Three cleanings and scaling of teeth annually • Bitewing and diagnostic X-rays • Fluoride application (dependents under age 16) • Sealants • Space maintainers • Problem-based exams

100%, no deductible

Restorative Services • Simple extractions • Oral surgery • Fillings, except gold • Repair or re-cementing of crowns, inlays, bridgework, dentures • Relining of dentures • Treatment of diseases of the gums and tissues of the mouth (periodontics) • Endodontic treatments such as root canals • General anesthesia, if medically necessary

80% after deductible

Major Services • Crowns, inlays or gold fillings • Dentures • Fixed bridgework (including inlays and crowns as abutments)

50% after deductible

Orthodontic Services Braces and other orthodontic treatment for dependents under age 19

50%, no deductible Up to lifetime benefit of $2,500

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your

health.

Vision Coverage The new vision plan is provided through VSP Vision Care. The plan has a large nationwide network of vision care providers, including doctors and eyewear suppliers. Benefits include examinations and glasses (frames and lenses) or contact lenses. You pay the full cost of your vision premium with pretax dollars through payroll deductions. The vision plan is a standalone plan and not part of the medical plan.

About VSP VSP has negotiated fees with doctors and optical labs so you receive a greater savings when you use VSP network providers. To locate current VSP network providers, go to the VSP website or call VSP Member Services at 800-877-7195. Here’s an overview of the 2016 vision plan.

VISION PLAN MONTHLY CONTRIBUTIONS

Aetna or Anthem and routine eye exams Remember, if you elect Aetna or Anthem medical coverage, you have access to a routine eye exam paid at 100%. If you don’t need vision correction, you might not need separate vision coverage.

• Employee Only • Employee + One • Employee + Children • Family

Additional VSP Features VSP offers discounts on lens enhancements and name brand frames. As a VSP member, you will also have access to a hearing discount program through TruHearing®. For more information, go to the VSP website from My HR. Or call VSP at 800-877-7195.

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$7.05 $14.13 $15.09 $24.15

VISION PLAN FEATURES

WHAT YOU PAY FOR VSP PROVIDERS

WellVision Exam (every calendar year)

$10 copay

Prescription Glasses

$20 copay; see Frames and Lenses

Frames (every other calendar year)

Included in prescription glasses copay • $130 allowance for a wide selection of frames • 20% savings on the amount over your allowance • $70 Costco allowance

Lenses (every calendar year)

Included in prescription glasses copay • Single vision, lined bifocal and lined trifocal lenses • Polycarbonate lenses for dependent children

Lens Enhancements (every calendar year) • Standard progressive lenses • Premium progressive lenses • Custom progressive lenses

$55 copay $95 - $105 copay $150 - $175 copay Average savings of 20-25% on other lens enhancements

Contacts (instead of glasses) (every calendar year)

• $150 allowance for contacts and contact lens exam (fitting and evaluation) • 15% savings on a contact lens exam

Diabetic Eyecare Plus Program (as needed)

$20 copay; services related to diabetic eye disease, glaucoma and age-related macular degeneration (AMD). Retinal screening for eligible members with diabetes. Limitations and coordination with medical coverage may apply. Ask your VSP doctor for details.

Extra Savings

Glasses and Sunglasses • Extra $20 to spend on featured frame brands • 20% savings on additional glasses and sunglasses, including lens enhancements, from any VSP provider within 12 months of your last WellVision Exam Retinal Screening No more than a $39 copay on routine retinal screening as an enhancement to a WellVision Exam Laser Vision Correction Average 15% off the regular price or 5% off the promotional price; discounts only available from contracted facilities

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your

health.

Flexible Spending Accounts (FSAs) An FSA lets you pay for certain health care and dependent care expenses with pretax dollars. The FSAs are administered by PayFlex.

Regardless of your health care plan elections, if any, you may enroll in a Health Care FSA, a Dependent Care FSA, or both, during the 2016 Open Enrollment period.

HEALTH CARE FSA Who’s Eligible

Employees not enrolled in a Health Savings Account (HSA) may enroll in a Health Care FSA. If you are enrolled in an HSA, you may enroll in a Limited Purpose Health Care FSA.

Eligible Expenses

Use the money in your account to reimburse yourself on a pretax basis for eligible expenses, including: • Medical and dental deductibles • Medical, dental and vision copays • Coinsurance and other out-of-pocket expenses not covered by your Oxy medical, dental or vision plan Note: Over-the-counter medications are eligible only with a prescription. For a complete list of eligible expenses, go to the PayFlex website or call PayFlex at 888-678-8242.

Employee Annual Contributions

$2,550 maximum

Tax Savings

Contributions are pretax and qualified reimbursements are tax-free.

Forfeit of Funds

Each year you have until March 31 to submit claims for health care expenses incurred during the previous calendar year equal to your contribution. Otherwise, you will forfeit any unused money in your Health Care FSA.

Portability

If you leave Oxy, you may use your Health Care FSA for eligible expenses incurred up to your last day of employment unless you elect COBRA continuation coverage for a Health Care FSA.

Limited Purpose Health Care FSA

If you enroll in the Aetna HealthFund medical plan and an HSA, you may only participate in a Limited Purpose Health Care FSA. • Before you meet your HealthFund medical plan deductible, this FSA may be used for eligible dental and vision expenses and certain preventive drugs and services. • Once you’ve met your HealthFund deductible, you may use your Health Care FSA for eligible medical and prescription drug expenses as well.

How to decide • What are your expected eligible health care expenses for 2016? • What will your dependent care expenses be in 2016? • Compare the advantages of a Dependent Care FSA with the federal dependent care tax credit to see which approach provides you with the better tax advantage.

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DEPENDENT CARE FSA Eligible Expenses

Reimburse yourself on a pretax basis for expenses related to care of eligible dependents, including: • Day care • Before- and after-school programs • Summer day camp • Adult day care Note: For a complete list of eligible expenses, go to the PayFlex website or call PayFlex at 888-678-8242.

Employee Annual Contributions

• Up to $5,000 per year maximum if single or married, filing a joint tax return • $2,500 maximum if married, filing a separate tax return

Tax Savings

Contributions are pretax and qualified reimbursements are tax-free.

Forfeit of Funds

Each year you have until March 31 to submit claims for eligible dependent care expenses incurred during the previous calendar year equal to your contribution. Otherwise you will forfeit any unused money in your Dependent Care FSA.

Direct Deposit Option

Health Care FSA Auto Pay Streamline your claims submissions by electing to have your Aetna medical and dental claims and your Express Scripts copays or coinsurance automatically forwarded to your Health Care FSA for reimbursement. To set it up, log in to www.payflexdirect.com, select Health Plan Activity under the Financial Center tab, and then click Health Plan Activity Options. Review and update your automatic reimbursement settings, and then Save before leaving the website.

You may elect to have your FSA reimbursements directly deposited into a designated checking or savings account of your choice. Once enrolled in an FSA, go to the PayFlex website to register and provide your direct deposit banking information.

Changing Your Contribution Amount Once you submit your FSA election for the plan year, you may not stop or change your contribution amount unless you experience a change in status and the change you elect is consistent with the event. A change in dependent care provider is not considered a status change.

Tools to help you decide • Use our virtual benefits counselor, ALEX. You can get to ALEX from My HR. • The Plan Cost Estimator can help you decide how much to contribute to a Health Care or Dependent Care FSA and show your potential tax savings. You can get to the Plan Cost Estimator on My HR.

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your life.

Oxy provides income protection when you need it most.

Life Insurance Group Universal Life (GUL)

Special Enrollment Offer You can purchase GUL coverage without proof of good health during this Open Enrollment as follows:

GUL provides additional life insurance protection for you and your dependents. Effective January 1, 2016, the voluntary GUL plan will be offered through Metropolitan Life Insurance Company (MetLife). MetLife offers a 16% rate reduction over current rates.

• First time enrollment: One-half your base pay

Plan Overview

• Current participants: Increase one benefit level

The following GUL benefit coverages are available:

• New spouse enrollment: $10,000

• Yourself: Elect from ½ times up to 8 times your annual base pay

• Current spouse participant: Increase one benefit level

• Spouse: Elect $10,000, $25,000, $50,000, $75,000, $100,000, $150,000 or $200,000

After Open Enrollment, or if you request coverage above the amounts listed above, you may need to complete health forms and be approved before coverage can be issued.

• Dependent Children (up to age 26): Elect $10,000 per child without proof of good health When you retire or leave Oxy employment, your GUL coverage is portable as long as you continue to pay the required premiums directly to MetLife.

Beneficiary designation for GUL Be sure to complete a beneficiary designation for GUL when you enroll online. Your designated beneficiary will receive your life insurance proceeds in the event of your death. If you do not name a beneficiary, then payment will be made in accordance with the plan rules.

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Cost of Coverage

Cash Value Fund

You pay the entire cost for GUL coverage through after-tax payroll deductions each pay period. Your cost for GUL coverage is based on age and amount of coverage.

If you elect either employee or spouse GUL coverage, you may also elect to make additional contributions to a tax-advantaged savings account that offers you guaranteed earnings.

GROUP UNIVERSAL LIFE COST OF COVERAGE (after-tax) Age

Monthly Contribution* Per $1,000 of coverage

Under 30 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 66 67 68 69

$0.024 $0.030 $0.043 $0.060 $0.092 $0.154 $0.287 $0.556 $1.219 $1.387 $1.572 $1.773 $2.008

Spouse

Same as above

Same as above

Dependent Children

N/A

$0.84

Employee

Note: If you are currently contributing to the GUL Cash Accumulation Fund, your balance will be transferred and credited to your MetLife GUL cash value account. You must re-enroll with MetLife to keep your current contribution election because it will not roll over from the previous carrier.

GUL and payroll deductions If you are currently enrolled in the GUL plan, you will not have a payroll deduction taken in December because your December coverage is paid with your November payroll deduction. Payroll deductions for your MetLife GUL coverage will begin in January 2016 for January coverage.

* If you move from one rate to the next during the year, your coverage cost will increase the following January 1. If you are over age 69, call MetLife for rate information.

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your

life.

Accidental Death and Dismemberment (AD&D) AD&D provides 24-hour coverage for you and your eligible dependent children in the event of death, or loss or paralysis of limb(s), resulting from an accident. You also may elect coverage for your spouse. You pay the entire cost for your coverage through after-tax payroll deductions.

Coverage Amount You may purchase the following coverage: • Yourself: One to 10 times your annual base pay, up to $1 million.

AD&D COST OF COVERAGE (after-tax) Monthly Contribution Per $10,000 of coverage Employee

$0.19

Spouse

$0.17

Dependent Children

No additional charge

• Spouse: 50% or 100% of your elected coverage amount, up to $1 million. • Dependent children: Each dependent child is automatically covered for $10,000 if you enroll for coverage. The full amount of coverage is payable in the event of accidental death. For accidental dismemberment or loss of use, coverage is a percentage of the death benefit amount, based on the nature of the injury. Additional benefits may be payable depending on the nature or circumstances of the accident (such as seat belt or air bag usage).

Global Assist Employees can benefit from global emergency services provided through Assist America’s travel and accident program. Visit My HR for additional information.

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How to decide Life insurance helps protect your family’s financial future. If you have no dependents, you may not need much insurance. However, if you have a spouse, children or other dependents, you may want more protection. Here are some considerations: • How many people depend on your income for support? • Would your family need insurance benefits to help keep up with a mortgage and pay for such things as day-to-day living expenses or a child’s college education? • Do you or other members of your family have other financial assets such as savings, investments or private insurance coverage that could also provide for your dependents?

Beneficiary designation Be sure to complete a beneficiary designation form for each life insurance plan you enroll in. Your designated beneficiaries will receive your life insurance proceeds in the event of your death. If you do not name a beneficiary, then payment will be made in accordance with the plan rules. Forms are available on My HR.

• When considering whether or not to enroll in the AD&D plan, do you and your spouse have sufficient disability insurance to support your family if either of you are severely injured or die in an accident?

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your

life.

Long-Term Disability (LTD) The LTD plan provides you with continuing income in case of a prolonged illness or injury.

LTD PLAN Waiting Period

Benefits generally begin after a 26-week waiting period (the maximum Short-Term Disability benefit period).

Coverage Options

You have two coverage options: –– 50% Option: Benefit equals 50% of your base pay. –– 60% Option: Benefit equals 60% of your base pay. • If you die while receiving LTD benefits, both options provide a lump-sum survivor benefit equal to six months of your gross LTD benefit. • Your LTD benefit will be reduced by any disability income you may receive from other sources such as Workers’ Compensation and Social Security.

Maximum Benefit

$15,000 per month

Benefit Duration

If you remain disabled under the terms of the LTD plan, benefits are generally payable until your Social Security normal retirement age.

Cost For Coverage

• 50% Option: $0.44 per $100 of your monthly base pay. • 60% Option: $0.616 per $100 of your monthly base pay.

How to decide • Do you have enough personal savings or other sources of income to support yourself and your family if you become disabled for a long period of time and cannot work?

About LTD Enrollment During Open Enrollment, you can increase, decrease or cancel your LTD coverage. To enroll for LTD coverage the first time, you must submit an application to Prudential along with proof of good health. Costs associated with providing such evidence will be at your expense. Coverage will begin only if Prudential approves your application.

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• Do you have disability coverage from any other source? • If you have a working spouse, will his or her income be enough to support your entire household if you have no other sources of income? • If you qualify to receive government benefits, will they replace a sufficient portion of your pre-disability income? • How important to you is the continued medical, dental and life insurance coverage while you receive LTD benefits that may not be available to you if you do not have LTD coverage?

Review your

2016

enrollment choices today! Important Things to Remember

• You will retain your current medical, dental, AD&D and LTD coverages in 2016 unless you make a change. • The vision plan is new! Now is the time to enroll for the first time. • Don’t miss this one-time-only opportunity to enroll or increase your GUL coverage through MetLife without answering health questions. • Don’t wait until the last minute. If you newly enroll in a regional plan, OxyLink must receive your completed enrollment form by the end of Open Enrollment. • If you want to contribute to a Flexible Spending Account (FSA) or Health Savings Account (HSA), you must enroll to participate in 2016—your current elections do not automatically continue to next year. • In most cases, your 2016 elections under the medical, dental, vision and FSA plans are irrevocable after the Open Enrollment period closes, unless you have a change in family status during the year. Status change information is available on My HR. • Until Open Enrollment closes, you may log on to OxyLink Online and change your prior elections. You must select the Submit button again to process any changes to your elections.

Questions? If you have questions about Open Enrollment or your benefits, or if you do not have Internet access, call the OxyLink Employee Service Center during normal business hours.

OxyLink Online oxylink.oxy.com

OxyLink Email [email protected]

OxyLink Address 4500 South 129th East Avenue, Tulsa, OK 74134-5801

Oxylink Service Representatives 800-699-6903 or 918-610-1990 (from outside the U.S.) 918-610-1944 (fax) Weekdays (except holidays) 8:30 A.M. to 5:00 P.M. (Central Time)

Open Enrollment ends November 16

This Enrollment Guide contains only a partial summary of Oxy’s benefit plans and programs. Please refer to the Summary Plan Descriptions for more complete information. The plans and programs are administered according to plan documents, including trust agreements and contracts with third-party providers, as well as corporate and divisional policies. With the exception of changes announced in subsequent issues of the Benefit News or The Source, if any discrepancy arises between this guide and the legal plan documents, the plan documents, contracts or trust agreements will apply. Oxy does not promise that these benefit plans and programs or any level of benefits will continue to be made available. Oxy reserves the right to revise, amend or discontinue any of its benefit plans or programs at any time, with or without notice. Benefits are provided at the sole discretion of Oxy and do not create a contract of employment.

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[email protected]