Elements Newsletter

Chevron Phillips Chemical 401(k) Profit Sharing Plan Payout and Retirement Plan Variable Annuity Benefit Enhancement

Chevron Phillips Chemical is pleased and proud to announce that it has awarded its employees with a 3% Profit Sharing payout, and a 5% Variable Annuity Benefit enhancement for 2008.

We believe that these benefits are a very important part of your overall compensation package and have provided Q&As on www.benefitium.com to help you better understand these benefits. These Profit Sharing payouts are applicable to all participating Chevron Phillips Chemical employees (other than Chevron Phillips Puerto Rico Core employees); salaried Performance Pipe employees; and Performance Pipe employees paid on an hourly basis at Reno and Knoxville hired prior to January 1, 2004.

Important Note:
Please remember to check your pay stub to ensure your deductions and address information is correct! Contact the Employee Service Center at 1-800-446-1422 (option 3) if you notice any discrepancies.

Profit Sharing payouts will vary from year to year depending upon Chevron Phillips Chemical’s performance and its ability to support additional payouts, based on that performance. There may be years in which there is no Profit Sharing payout.

The following chart shows the basic Chevron Phillips Chemical employer match plus the 3% Profit Sharing payout scenarios for the 2008 plan year.

Another way to look at it?
Let’s assume that an employee’s eligible earnings are $75,000 and he/she contributed a total of $1,500 (2%) to their 401k in 2008. The Company announces a 3% Profit Sharing contribution for 2008. 3% of 75,000 equals $2,250. But the employee in this example would only receive $1,500 in profit sharing because he/she only contributed 2% of his/her eligible earnings. That’s like leaving $1,000 on the table! A good case for considering a bump in your contribution rate for this year…

If you are a participant in the 401(k) Plan, the Profit Sharing payout will be posted to your 401(k) account by end of March. The Variable Annuity Benefit enhancement will be posted to your retirement account sometime during the second quarter. We’ll keep you posted on the exact date.

Interested in estimating your benefit now? You can receive an estimate of your Chevron Phillips Chemical retirement benefit by logging onto the Fidelity NetBenefits website at http://netbenefits.com. You will be able to log in to your account and receive estimates based on different retirement scenarios you input (such as retirement date, salary projection, etc.), review frequently asked questions and request forms. Your exact benefit will be calculated at the time of your separation from service.

And don’t forget! You can view your 401(k) balances, process transactions — such as loans and withdrawals —and make 401(k) investment election and deferral changes by logging onto the Fidelity NetBenefits website at http://netbenefits.com. You can contact Fidelity directly by calling the Chevron Phillips Chemical Pension and Savings Service Center at 1-866-771-5225.

Click here for FAQs

“Congratulations on another successful year, keep up the good work!”

Aetna Tips for Maximizing Your Benefits

At Chevron Phillips Chemical, we want you to get the most from your benefits, so we’re pleased to tell you that Aetna, one of our health care providers, is a tremendous resource for money-saving health tips. By visiting www.aetna.com, you can find a number of great ideas for stretching your health-care dollars, without sacrificing quality of care. You’ll learn how to tap into savings through:

• Generic and Rx Home Delivery® prescription medications
• Preventive care services
• In-network providers
• And more …

For additional consumer-focused tips, visit Aetna’s Plan for Your Health website, www.planforyourhealth.com, a joint effort from Aetna and the Financial Planning Association. The site offers information, tools and resources for helping you make informed health benefits and financial choices in every aspect of your life, including:

• Career
• Marriage
• Family
• Single Living
• Retirement

To take a look at some of Aetna’s money-saving health tips, check out the Aetna flyer posted on Benefitium. For more details on how to keep you and your wallet in good health, visit www.aetna.com and www.planforyourhealth.com.

Help Yourself to a Better You with Aetna’s EAP

We all want to be and do our best, but sometimes we need a little help to get us started in the right direction. Aetna’s Employee Assistance Program (EAP) is a great source for just such support, with convenient and confidential resources to help you:

• Improve your personal relationships
• Cope with stress
• Handle emotional difficulties
• Deal with addictive behaviors
• Improve your parenting skills
• Manage your finances

Aetna’s wide range of services, accessible 24/7, includes telephone consultation and referral services, face-to-face counseling and online self-assessment. To find out more about how the EAP can help you reach your full potential, and start 2009 off right, just call 1-866-841-9377, TTY-TDD 1-866-843-6323 or visit www.aetnaeap.com and enter your company ID (MYCPCEAP).

Keep Your Beneficiaries Up-to-Date

If you haven’t updated your health and welfare beneficiary designation online over the past year, now is a good time to do so. Although paper designations made over a year ago remain valid, they are not available for viewing online.

Keeping your beneficiary designations current ensures that your assets are distributed to whomever you intended in the event of your death. Your money and/or assets can go directly to your beneficiary, rather than through your estate — thus avoiding potential probate taxes, expenses and legal battles.

To designate or change your health and welfare beneficiary designations online, go to www.cpchembenefits.mercerhrs.com.

To designate or change your beneficiary designations for your savings and retirement benefits, contact the Chevron Phillips Chemical Benefits Service Center at 1-800-446-1422 (option 1), 8:00 a.m. to 5:00 p.m. Central time, Monday through Friday, to request a paper form or go online at www.cpchembenefits.mercerhrs.com to print your own.

Filling a Prescription Through Express Scripts

When you need medication, the last thing you want is for your prescription request to be delayed. To help ensure that your prescription medications are filled in a timely manner, here’s a summary of what you need to do when submitting a new prescription to an Express Scripts mail service pharmacy.

COMPLETE THE EXPRESS SCRIPTS ORDER FORM

Log on to the Express Scripts website at www.express-scripts.com, click on “Fill a New Prescription,” and follow the instructions.

SUBMIT YOUR FORM

Complete the prescription order form. Be aware that the following issues may cause delays:

• Incomplete or missing information
• Physician’s signature missing
• Patient’s address on file at physician’s office differs from what ESI has on file
• More than one physician is indicated on the prescription and the physician that signed it did not circle his/her name

You may submit your prescription order form to Express Scripts via mail or fax:

• By Mail
  Mail your order form and your written prescription to the address shown on the form.
• By Fax (Doctor Only)
  Have your doctor, or a member of your doctor’s staff, fax your order form to the phone number shown on the form. While faxing your prescription does not speed up the time it takes Express Scripts to fill the prescription, it does get your prescription to the pharmacy more quickly. Faxes must be sent from your doctor’s office. Faxes from other locations (such as your home or workplace) cannot be accepted. Faxed orders must include the following:

CHECKING ON YOUR PRESCRIPTION

Faxed prescriptions are generally filled within three to five business days (please allow additional time for delivery). To check the status of your prescription, log on to www.express-scripts.com and click on the “check order status” link on the left side of the screen. This link indicates if the order has been received, where it is in the filling process, and if the order has shipped.

In general, you can view your faxed prescription in the Express Scripts system within at least two business days of receipt; however, should Express Scripts need to call your physician’s office for clarification, it may be longer than two business days before your prescription is visible online.

Registering as a User
When logging on to the Express Scripts website for the first time, you’ll be asked to register as a user. After registering, you will be taken back to the login page and asked to login using the user ID and password you’ve just created.

Express Scripts highly recommends registering a phone number and/or email address via the Express Scripts website or by contacting customer service at 1-800-446-1422, Option 7.

RECEIVING NOTIFICATION FROM EXPRESS SCRIPTS

If a phone number or email address has been included in your mail profile, you’ll receive an automated message from Express Scripts indicating that your prescription has been received and is being filled. Please contact Express Scripts if you have not been notified of prescription receipt within four business days of faxing your order. A patient care advocate will assist you with next steps.

Free Session with Fidelity Financial Planner

Have you ever wanted your own personal financial advisor? Well now you have one, at no cost to you, for a single consultation session. As a Chevron Phillips Chemical employee, you are eligible for free face-to-face investment planning advice and counsel from a financial representative at Fidelity’s local Investment Centers. No matter where your investments are held — IRAs, savings accounts, mutual funds — Fidelity can work with you to create a comprehensive income plan suited to your financial needs.

During your free consultation at Fidelity, an experienced financial representative can help you:

• Conduct a portfolio review to identify gaps in light of your investing goals.
• Understand the potential advantages to 529 college savings plans and other savings options.
• Explore tax-advantage strategies for lifetime income and estate planning needs.
• Consider the potential benefits of professional portfolio management, and more.

To find the Fidelity Investment Center closest to you, just call 800-FIDELITY (800-343-3548) or visit www.Fidelity.com and click on Contact Us.

Note: Chevron Phillips Chemical does not endorse any financial advice given via the Fidelity Financial Planner service. This service is offered by Fidelity, not Chevron Phillips Chemical.

FSA Debit Card — Frequently Asked Questions

We have put together this Q&A to help you understand how to use your Aetna FSA debit card to make your prescription drug and eligible over-the-counter (OTC) purchases.

WHAT IS THE FSA DEBIT CARD?

The FSA debit card enables you to pay for prescription drugs and over-the-counter items at eligible merchants — that is, those supermarkets, discount chains, pharmacies and wholesale clubs that are “certified” (approved) by Aetna. To see a list of certified merchants, go to www.aetnafsa.com.

HOW DOES THE FSA DEBIT CARD WORK?

When you’re ready to check out your items, simply take them to the checkout counter. As your items are scanned by the cashier, those eligible for reimbursement from your FSA debit card will be totaled separately from those not eligible for reimbursement. Payment for eligible items will be automatically deducted from your FSA and non-eligible items will be paid by you at time of purchase.

WHAT OVER-THE-COUNTER ITEMS ARE ELIGIBLE FOR REIMBURSEMENT FROM MY FSA DEBIT CARD?

FSA-eligible over-the-counter items are subject to merchant interpretation, so you should contact Aetna’s Member Services number located on your ID card for specific information on what items qualify through Aetna.

DO I NEED TO SAVE MY RECEIPTS FOR ITEMS PURCHASED THROUGH MY FSA DEBIT CARD?

Yes. Your receipts reflect which items were reimbursed from your FSA, so you should keep them on file for your tax records.

CAN I USE MY FSA DEBIT CARD TO PURCHASE PRESCRIPTIONS ONLINE?

Yes. You may use your FSA debit card for online mail-order prescriptions. Just log on to the Express Scripts, Inc. website and provide your Aetna FSA debit card account information for payment.

HOW DOES REIMBURSEMENT WORK IF I ALREADY HAVE A CREDIT CARD SET UP WITH EXPRESS SCRIPTS, INC. (ESI).

You must call ESI or visit the provider’s website and provide your FSA debit card information. If your FSA runs out, you’ll need to provide ESI with another form of payment.

CAN I USE THE FSA DEBIT CARD FOR MEDICAL/DENTAL EXPENSES?

No. Since the FSA debit card operates on a front-end process (that is, your eligible items are reimbursed from your FSA at time of payment), the doctor’s office would need the exact cost for your medical and dental services eligible for reimbursement. Chevron Phillips Chemical has two medical plans, which differ in copays, coinsurance maximums, in-network and/or out-of-network reasonable and customary charges, so it would be hard to know your exact charges at checkout.

For this reason, streamlining is your best option for automatic reimbursement from your healthcare FSA for medical and dental services. Claims processed by Aetna will automatically roll over copays and out-of-pocket expenses via streamline and reimburse you directly.

Important Note and Reminder:
As of January 1, 2009, the streamline option is no longer available for prescription purchases. You can either use your FSA debit card, or pay out-of-pocket and file a paper claim for reimbursement.

2009 Instructor-Led Courses Announced

If a career opportunity knocked, would you be ready to answer? Continuous learning fuels continuous improvement — and one way to keep your skills sharp and up-to-date is to take advantage of Chevron Phillips Chemical’s instructor-led training opportunities.

For 2009, we’re offering 13 instructor-led courses covering topics such as:

• Building Relationships & Trust
• Conflict Resolution
• Economic Analysis & Model Training
• Managing Multiple Projects, Objectives & Deadlines
• Presentation Skills
• And More…

Classes will be held in Houston, Cedar Bayou and Pasadena, and will be taught by seasoned instructors with proven, real-world experience in the subjects they teach.

These courses have been designed to help you enhance your strengths and acquire new competencies. As you develop your 2009 performance and career development objectives, you may want to consider how these courses can help you achieve them. We encourage you to look through the listing today and then talk to your supervisor about which instructor-led courses may be right for you.

And it’s easy to enroll! You can enroll in any course via the Learning Management System (LMS). Once you register, your supervisor will be asked to approve the registration through LMS before you are enrolled. Once approved by your supervisor, you will receive an enrollment email confirmation from LMS that will include the course logistics.

We know you’re busy. But the more knowledge you gain, the better equipped you’ll be to sort through the information overload prominent in today’s business world. Continuous learning will help you work smarter, not harder.

For enrollment instructions and to review the course listing, visit nSight > Departments > Human Resources > Learning & Development > Instructor Led Training.

Chevron Phillips Chemical Distributes $433,900 in Immediate Rewards

Did you know that Chevron Phillips Chemical may reward you for going above and beyond your normal job duties? It’s true. When your exceptional performance creates extra value for the Company, you may be eligible for a cash reward. In fact, in 2008, the Company distributed a total of $433,900 to 537 Chevron Phillips Chemical employees through the Immediate Rewards Program.

This program rewards employees for going beyond their normal job duties to achieve meaningful results in one or more of the following areas:

• Enhanced revenues
• Cost savings
• Increased operational efficiency
• Customer satisfaction
• Safety and security

Here are two recent examples of employees who were rewarded for their efforts:

1. Several employees at the Sweeny facility applied the Pecan accounting system to better manage costs for a very complex turnaround. Pecan allowed the group to identify contract, timesheet and billing issues that would not previously have been detected. It also allowed for faster invoice processing and accounting cycle closure. This process will serve as an invaluable tool for turnaround budgeting in the future.
2. Several employees at the Cedar Bayou, Texas facility developed inventive cleaning methods for the Pulsator Unit which saved the Company $200,000 a year.

The dollar amount of a reward varies depending on the significance of the accomplishment. However, it is never less than $100 and could potentially be up to two month’s salary. All employees below the Sr. Executive level are eligible for the program.

If you feel your superior performance has led to significant financial gains for the Company, review your activities with your manager and make sure he or she is aware of your contributions. Your manager will determine if the scope of your contributions qualifies for an Immediate Rewards Program nomination.

Sweeping Changes to Family Medical Leave Act

New regulations implementing the Family and Medical Leave Act of 1993 (FMLA) became effective January 16, 2009. The changes are intended to improve communication between employers, workers and health-care providers.

“Many of the basics have not changed,” said Danielle Santori, HR Compliance Specialist. Family leave still applies to eligible employees at a business with 50 or more employees. Employees are still entitled to take up to 12 weeks of unpaid leave per year for childbirth, to care for a sick relative with a serious health condition or for one’s own serious medical condition if they’ve worked at least 12 months and 1,250 hours in the year preceding the leave.

So, what are some of the differences and why? The new regulations:

• Change how an employee’s work time is counted for eligibility,
• Add flexibility for those serving in the military,
• Give new employee and employer notice requirements, and
• Revise rules on medical certification.

For example, an employee now may be eligible for family leave when he or she works for six months, leaves the job and returns to work five years later and works six more months. The 12 months’ work requirement for family leave doesn’t need to be consecutive, but needs to occur within seven years. An exception to the seven-year rule is an employee who leaves work for military service.

Additionally, the employee taking the leave no longer has to be the only individual available to care for a qualified family member or covered service member.

Employees are required to give 30 days’ notice of expected family leave, such as the anticipated birth of their child or planned surgery. If there’s an unforeseeable situation, such as a medical emergency, the employee needs to give as much notice as “practicable,” Santori says.

Another change is the new, detailed forms for employees and employers. The Labor Department previously only produced one form that was used for all possible situations covered under FMLA. There are now seven forms — some optional, some not — each addressing a different FMLA situation.

In most cases, employers have five days after an employee provides a notice of leave to request medical certification, although an employer may request certification at other times during the leave. Employees then must provide supporting certification within 15 days; that means getting a doctor or other health care provider to fill out the required paperwork. Employers may deny family leave, if the certification is incomplete or insufficient.

Under the new regulations, employers have a greater ability to get clarification on the medical reasons employees use to take FMLA leave, Santori said. Previously, if an employer needed additional information, he or she was not allowed to call the physician and ask questions. Under the new law, certain company representatives, such as the company nurse or a human resources professional, can call the employee’s doctor, as long as it is not the employee’s direct supervisor, Santori said.

The updated provisions also specify leave for caregivers of armed-service members. There are two new military family leave entitlements. Under the new rules, a spouse, son, daughter, parent or next of kin of a covered service member can take up to 26 work weeks of leave during a 12-month period to care for a service member with a serious injury or illness incurred in the line of duty.

Up to 12 weeks of job-protected leave is also available to employees to manage any “qualifying exigency” when their spouse, child or parent is on active duty or suddenly called into active duty. A qualifying exigency might be to arrange child care, attend a military ceremony or make legal arrangements.

“The bottom line of these new regulations is it’s going to make FMLA somewhat easier to manage without impinging on individual rights. Before, very gray issues would come up. Now we have a lot more guidance,” Santori said.

To review the changes in their entirety and download the new FMLA forms, visit www.DOL.gov. Additional information can also be found on nSight > Departments > HR > HR Guidelines > 2350 Family Medical Leave Act.

Diversity vs. Inclusion — What’s the Difference?

One of the biggest challenges with Chevron Phillip Chemical’s Global Diversity Initiative has been overcoming the misconception people have about the word diversity. Many assume that it’s about one person having to give up a seat at the table to another who is deemed more visibly diverse.

When diversity programs began over 20 years ago, it was because of the changing demographics of the workplace. But today, globalization has created a workforce that is ‘diverse’ by default.

It is true that diversity typically means focusing on the number of individuals from various groups — women, Hispanics, younger and older employees, people of color — and ensuring that those individuals are appropriately represented across the Company. This is an important focus, but on its own it’s often insufficient in meeting Chevron Phillips Chemical’s desire to expand our competitive advantage.

To truly ensure that valuing and respecting the expanding range of differences among our workforce enhances our company’s performance and productivity, we need to focus on inclusion. That means that we provide all employees — regardless of which group they belong to — challenging tasks, real authority within their span of control and the support to grow and develop.

Inclusion focuses on how to bring in and keep the best from all cultures so that we have access to people with problem solving skills, creativity, innovation, entrepreneurial effort and excellent execution. Inclusion is integrally linked to strategic direction, work plans, processes and practices.

This approach to including all employees, in whatever ways possible, in the important work of our business is what stimulates people to stretch their skills and increase their capacity to contribute to the business — and it’s what will enable us to get the best return on our investment in human capital.

Chevron Phillips Chemical’s diversity and inclusion programs apply to everyone in the Company because they have the potential to create a positive effect on our bottom line. They are a means to increase profits and productivity by tapping the contributions of a broader pool of talent. Inclusion initiatives improve employee performance, increase productivity, reduce turnover and make the Company more attractive to potential employees and customers.

So to answer the original question — diversity focuses on defining differences, while inclusion teaches people to value and respect them.

Social Media: To Post or Not to Post

Chevron Phillips Chemical understands the importance of the Internet in shaping public perceptions of our Company and our products, employees, partners and customers. We also recognize that many of you already interact in social media such as personal websites, social networking forums (Facebook, Twitter, etc.), blogs, wikis, video and picture sharing sites and other online technologies.

We support your right to interact in social media. However, when you do so you should remember that you are acting on your own and not as a representative or agent of the Company. So here are some guidelines you should be aware of and follow when posting online:

• You may not participate in social media using Company property or computers, or while on Company time.
• Unless authorized, you may not speak for the Company in social media or otherwise make comments to the media. Any request you receive from news media regarding a social media posting that refers to the Company should be directed to Corporate Communications.
• If you publish information about your work or any other information about the Company, its customers, suppliers or competitors, you should clearly state that you are doing so as an individual. You must identify yourself and state that the views expressed are yours alone and do not represent the views of the Company.
• If you do post any Company-related information on a social media site, you are responsible for that information. Do not use the Company logo. Do not post any privileged, confidential or proprietary information. This includes information about trademarks, upcoming product releases, sales, finances, number of products sold, Company strategy or any other information that has not been publicly released by the Company.
• You should be aware of and adhere to Chevron Phillips Chemical’s Code of Conduct in all references to the Company.
• The Internet is a worldwide forum. Always be thoughtful, sensitive to and respectful of all individuals, cultures and nationalities in any postings you make.

If you are unsure about the content of a posting, contact the Corporate Communications Department for guidance. You are legally responsible for anything you write or present online. Employees may be disciplined by the Company for any commentary, content or images that violate the law, the Company’s Code of Conduct or Company policy.

You may also be sued by Company employees, competitors or any individual or company that views your commentary, content or images as defamatory, pornographic, proprietary, conducive to creating a hostile work environment, or in violation of the law or anyone’s rights. So you should always be careful with what you post.

For more information, please consult the Social Media Guidelines located in the Policy Portal on nSight.