Elements Newsletter

2010 Open Enrollment Is Fast Approaching!

It’s almost time for 2010 Open Enrollment — your opportunity to make changes to your Chevron Phillips Chemical benefits for the coming year. During the October 22 – November 6 enrollment period, you’ll be able to:

• Change your medical or dental coverage,
• Enroll in the Health Care and/or Dependent Care flexible spending accounts,
• Change your life, accident and/or long-term disability coverage, and
• Add, change or discontinue coverage for you and/or your dependents.

So please start thinking now about what the 2010 benefit changes might mean for you and your family, and whether you want to make any changes to your benefit coverage, so you’ll be ready when enrollment comes around!

WHAT’S CHANGING FOR 2010

Chevron Phillips Chemical has made a few changes to its benefit plan designs for the new plan year. Here’s a brief overview of what’s new for 2010. More information will be found in your 2010 Open Enrollment Guide.

• Premium rates will increase slightly for both the medical and dental plans (see your personalized enrollment worksheet in your Open Enrollment packet for your exact rates).
• The preventive care copay will decrease from $35 to $10 for wellness-related doctor visits under the Core option. The $10 copay will also apply to the Cost-Saver option.
• You’ll be required to use Mail-Order for maintenance medications you take on a regular basis. You’ll only be covered for two fills of your maintenance medications at a retail pharmacy.
• In addition to the current 60% Long-Term Disability (LTD) option, we’ll offer a 50% LTD option for 2010.
  • You can choose LTD coverage equal to 50% or 60% of basic monthly earnings, to a maximum of $12,000 per month.
  • During the 2010 Open Enrollment period, you’ll have a special opportunity to elect LTD coverage or switch from the 60% to the 50% LTD option without having to complete a Statement of Health form for Evidence of Insurability (see LTD article for more information).

The 2010 Open Enrollment Process

Keep an eye out for your 2010 Open Enrollment Packet, which will be mailed to your home mid-October. The packet summarizes your coverage options under Chevron Phillips Chemical’s benefit plans, provides more details on benefit plan changes for 2010, and explains how to enroll online or over the phone through the Chevron Phillips Benefits Service Center.

Reminders:

• 2010 Open Enrollment will run from October 22 through November 6, 2009.
• You need to enroll in the Health Care and/or Dependent Care Spending Accounts for 2010 if you want to participate, even if you participated in 2009. These accounts allow you to be reimbursed with tax-free dollars for health care and dependent care expenses you’d incur anyway. So why not save a little on your taxes as well?

Voluntary Long-Term Disability (LTD) Insurance — Special Enrollment Opportunity

The Long-Term Disability (LTD) plan is designed to provide you with financial assistance when an injury or illness lasts longer than 26 weeks. If you elect this benefit, you pay the cost through after-tax payroll deductions.

Effective January 1, 2010, you’ll have two LTD options. You can choose LTD coverage equal to 50% or 60% of your basic monthly earnings, up to a maximum benefit of $12,000 per month. A few important notes:

• During the 2010 Open Enrollment period, you can elect LTD coverage or switch from the 60% to the 50% LTD option without having to complete a Statement of Health form for Evidence of Insurability. This will only be offered during the 2010 Open Enrollment period. Elections made after enrollment will require submission of a Statement of Health form.
• For this special enrollment, a pre-existing condition limit will apply to your coverage, but only for conditions where you received treatment in the 12 months prior to obtaining coverage.
• For future enrollments or increases to coverage, a pre-existing condition limit will apply, but only for conditions where you received treatment in the six months prior to obtaining coverage.

Save Time When You Order Your Prescriptions Online

Effective January 1, 2010, employees who take maintenance medication on a regular basis will be required to use mail-order when refilling their prescriptions. But why not get started now?

When you order your prescriptions at www.express-scripts.com, you can skip the trip to your local pharmacy and avoid waiting in line. You’ll receive up to a 90-day supply of your medication — delivered right to your home — and standard shipping is free. After you’ve placed your order, you can check its status online anytime. When you’ve used up all your prescription refills, you can request that Express Scripts contact your doctor for a prescription renewal.

Save Money, Too
At www.express-scripts.com, you can use the “Save on My Prescriptions” tool to find any available savings opportunities. These opportunities may include switching your prescriptions to Home Delivery, or asking your doctor to prescribe a lower-cost alternative. Copayments are often lower for Home Delivery than for a local retail pharmacy (check your benefit information to see if you can save money by using Home Delivery). If you would like to switch to Home Delivery, or a lower-cost alternative, Express Scripts can contact your doctor for you.

Why Not Start Saving Time and Money Now?
Order your prescriptions online through Home Delivery from the Express Scripts Pharmacy today. Go to www.express-scripts.com and complete our brief registration process to get started. After logging on, you can review the prescriptions you take regularly and request Home Delivery, or a lower-cost prescription alternative, through the “Save on My Prescriptions” feature. To order refills of your prescriptions, click on “Order Refills.”

Pre-Certification Required for High-Tech Radiology Procedures

Effective October 1, high-tech radiology, like some other medical procedures, will require prior authorization before coverage is provided. The process is simple:

Prescribe:
Your doctor requests coverage for a particular imaging study (or studies) to assist his or her diagnosis.

Submit:
The doctor’s office submits the request to Aetna’s Radiology Benefits Management provider — MedSolutions.

Review:
MedSolutions uses its clinical expertise in conjunction with national radiology standards to review all the details of the request: Is it the appropriate test, the right timing, the accurate body area and an appropriate facility for the test?

Approve:
In the vast majority of cases, the study is approved — usually in a few minutes or less. In some cases, a peer-to-peer discussion between doctors is necessary to get further clarification on the medical condition before the test is approved.

What if an imaging request is denied?
In a small number of cases, an alternate recommendation is indicated during the review process. The reasons for denial include:

• The physician did not order the most appropriate test,
• A more limited imaging area is sufficient for the condition,
• An alternative course of action is recommended at this time, and
• An accurate diagnosis can be made without subjecting the patient to unnecessary exposure to radiation or inconvenient and often uncomfortable testing.

If there is a denial, your physician will be phoned by MedSolutions. Your physician can discuss the case with a medical director in order to determine the best course of action. In some cases, your physician will provide additional information to support the request. In other cases, your physician will accept an alternate recommendation designed to provide the same or a better outcome.

There is also an appeal process if you or your physician feels that there are extenuating circumstances that have not been considered.

Opting Out Saves Company $8,000 and Counting

With the launch of the updated Employee Self Service (ESS) website last April came a host of new self-service features. From changing your bank information to adjusting your federal tax withholdings, the new ESS tool lets you quickly and easily access, update and review your important personal information online. In addition to helping the Company to “go green” the new ESS website automates formerly labor-intensive processes, which has equated to a significant cost saving.

One cost-effective feature is the option for direct depositors to opt-out of receiving a mailed copy of their paycheck. Over a year, the cost of printing and mailing a paycheck stub averages $20 per employee. Since April 2009, 9.5 percent of Chevron Phillips Chemical employees have opted out of receiving a mailed paystub, which equates to an $8,000 savings for the Company. If all direct depositors opted out, it could potentially save the company upward of $80,000!

If you would like to opt-out but haven’t yet done so, instructions are below.

1. Visit nSight and log onto ESS (found under the Portfolio tab).
2. Click the “Employee Self Service” tab at the top of the page. Since this is live data, it will take a few moments for this screen to appear. Please be patient.
3. Click the “Benefits and Payments” tab at the top of the page.
4. Select the “Print Payslip Option” and follow the instructions to opt-out.

Even if you choose to opt-out of receiving a mailed paystub, you can still keep a paper copy for your files. Simply log on to ESS and print out your current and last paystub to a local printer.

Diversity Ambassadors Selected

The Office of Diversity and Inclusion recently announced the appointments of locally-based Diversity Ambassadors throughout the Company. These outstanding individuals were selected based upon their demonstrated commitment to creating an inclusive and diverse work environment.

As Diversity Ambassadors, they will be instrumental in shaping the Company’s diversity vision and strategy. They will act as the Chairperson of their facility or region’s Diversity Council, participating in selecting council members and guiding the group’s efforts. They will act as a liaison between the local Diversity Council, facility management and Virginia Hubbard, Diversity and Inclusion Manager, providing ongoing feedback about the group’s initiatives and accomplishments. Their efforts will help ensure that our workplace and organizational culture encourages employees to put their best foot forward on a regular basis.

Chevron Phillips Chemical’s Diversity Ambassadors include:

• Norman Chua, Asia
• Jeff Fodor, Bartlesville, OK
• Dale Newton, Borger, TX
• William Rutherford, Cedar Bayou, TX
• Pascale Jungslager, Europe-Africa
• Karen Morrison, Kingwood, TX
• Debbie Reynolds, Orange, TX
• Georgina Goodnight, Pasadena, TX
• Vickie Derese, Port Arthur, TX
• Art Orscheln, Sweeny, TX

Performance Pipe Diversity Ambassadors include:

• Tom McCleary, Jr., Bloomfield, IA
• Eduardo Del Carmen, Brownwood, TX
• Richard (Brian) Smith, Brownwood, TX
• Larry Skinner, Fairfield, IA
• Doug Simpson, Hagerstown, MD
• Barrett Jesseph, Knoxville, TN
• Mike Catt, Plano, TX
• Cindy Key, Plano, TX
• Curtis Johnson, Pryor, OK
• Brian Ellison, Reno, NV
• Cindy Burke, Startex, SC
• David Parsons, Williamstown, KY

If you are interested in becoming a member of a Diversity Council in your area, or would like to nominate someone, contact your Diversity Ambassador and let him or her know. By joining in the diversity effort, you help create an environment that utilizes the full potential of our workforce for strategic advantage. This in turn will help position Chevron Phillips Chemical for future growth and help us keep a strong position in the marketplace.

3rd Time’s the Charm for Summer Intern

When college students around the country are toiling over those “How I Spent My Summer Vacation” essays in coming weeks, John Woodson will have a unique story to share. Instead of backpacking across Europe or holding down a traditional summer job, he has spent the last three months inspecting the vessels, inside and out.

This chemical engineering major at the University of Oklahoma is no stranger to Chevron Phillips Chemical’s intern program. In fact, this is his third summer internship with the Company.

“My first internship was during the summer of 2007, at the Polystyrene Facility in Marietta, Ohio, where I worked as a Technical Service intern. The summer of 2008, I worked for Chevron Phillips Chemical’s headquarters in The Woodlands as a sales and marketing intern in the K-Resin group.

And this year, I spent the summer as a Process Engineering intern at Sweeny,” said Woodson.

Getting an internship anywhere used to mean a 10-week exercise in photocopying, sorting mail, filing and fetching sandwiches. In today’s scaled-back hiring environment, college internships have become nothing less than a high-stakes tryout to land the perfect first job. It’s like a job interview that lasts all summer long.

And while recent college graduates are pouring into a tight job market, engineering graduates are still a hot commodity. Stiff competition for the best and brightest students, combined with a graying petrochemical workforce edging towards retirement, is placing a renewed focus on the Chevron Phillips Chemical’s internship program.

“A solid internship experience is an effective recruiting tool for identifying and snapping up the best and brightest college grads,” said Maricela Caballero, Corporate HR Manager. “Gen Y and Millennial students place a high priority on landing a good summer internship, so we look at the quality of our program as an important differentiator in the marketplace. We make sure to give our interns challenging, hands-on assignments.”

The real-world nature of Chevron Phillips Chemical’s internship program is what has kept Woodson coming back for three summers in a row. “Each of my internships has shown me a different facet of the Company. In Marietta, I worked with the lab techs performing tests on customer samples. At Headquarters, I analyzed feedstock margins for all of the business units in Aromatics & Styrenics. This summer in Sweeny, I have been able to apply the engineering skills I acquired in school to actual processes,” he explained.

But the most valuable lesson John learned didn’t come from any single business unit. “The most challenging and fun part of my internships has been learning that in real-world applications there is often more than one right answer. In the classroom, problems usually only have one correct solution; but in real-world engineering, the problems are rarely clear-cut. There are often multiple possible solutions. As I’ve acquired experience, I’ve become more confident in determining the best solution out of all the available possibilities,” said Woodson.

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