Elements Newsletter

Are You Sure You're Saving Enough?

Whether you've been saving for years or are just getting started, one fact is undeniable: to help make sure you're able to enjoy the retirement you envision, you have to not only save, but also have a plan. And what better time to make a plan than the beginning of a new year!

There are two key steps to starting the planning process:

1. Understand how much you'll need to have saved in order to retire comfortably.
2. Determine your savings rate — the amount you'll need to save each month or year to reach your target.

STEP 1: DETERMINE HOW MUCH YOU WILL NEED

A key concept in retirement readiness is establishing the amount of annual income you'll need from your savings during retirement. How much of your current — or future — income will you seek to replace in retirement?

You'll need to take into account a number of variables, including:

• How much you currently have saved.
• How you are invested (your asset allocation).
• When you plan to retire.
• Any income you expect in retirement, such as Social Security, pensions, or other annuities.
• How long your assets need to last.
• Your spouse or planning partner's situation.

Fidelity offers you comprehensive retirement planning tools to gather your personal information and test different scenarios online at www.fidelity.com, or in person at one of the Fidelity retail centers.

STEP 2: DETERMINE YOUR SAVINGS RATE

After you've estimated the amount of your annual income to replace with savings, the next step is determining a savings rate that will get you there.

If your retirement is some years away, making it more difficult to accurately estimate how much you'll need at retirement, you'll still want to focus on maximizing your savings and take advantage of tax-deferred savings plans, like Chevron Phillip Chemicals 401(k) Plan.
More specifically, putting away 10% to 15% or more of your gross income can be a useful target to aim for. And don't forget Chevron Phillips matching contribution — be sure to take into account that percentage as part of your total savings rate. Similarly, you'll want to take into account any pension income you're expecting to receive in retirement as a factor that may affect how much you need to save.

Once You Establish a Savings Rate

Is the savings rate higher than you expected or more than you feel you can manage today? The important thing is to save as much as you can right now. As your situation changes — you get a new job or raise — you should consider increasing the amount you are saving. With a good plan, you'll be able to achieve the best retirement possible.

New 401(k) Contribution Limits

In 2007, you'll be able to contribute up to $15,500 into your 401(k) on a pre-tax basis, and if you're 50 or older, you can contribute up to an additional $5,000. Regardless of your age, it's always a good time to review your investment choices to ensure they align with your savings and retirement goals.

Two Ways to Receive Support for Emotional Well-Being and Unexpected Life Events

You have goals, plans and dreams. But you can't stay focused on them when life gets challenging. Changes — good and bad — offer opportunities for us to assist you. Go online or call the Employee Assistance Program today.

All services are:

• Free.
• Confidential.
• Accessible 24 hours a day, 365 days a year.
• Available to your dependents and all members of your household.

PHONE SUPPORT

Dial our toll-free number — 1-800-554-6931 — if you need someone to talk to about a family matter, stress at work, or a personal problem of any kind. Free counseling and support services are available for you and everyone in your household.

With just one phone call, at any hour of the day or night, you can reach a compassionate ear and connect to helpful resources. By dealing with issues early on, you can often prevent them from becoming more serious. And with our highly qualified network of providers, you don't have to face these issues alone.

ONLINE SUPPORT

Go online to discover even more services designed to improve your emotional well-being and productivity.

www.cignabehavioral.com provides online access to information, benefits, educational materials and more. All you have to do is:

1. Log in.
2. Type "cpchem" for your Employer ID.
3. Type the word "employee" for your PIN.

Access "Emotional Well-Being" and "Life Events" to:

• Review your employee benefits.
• Take a self-assessment.
• Obtain a list of recommended readings or a suggested course of action.
• Complete a therapy-preparedness questionnaire.
• Browse a large collection of behavioral health articles.
• Review Frequently Asked Questions.
• Find a care provider by yourself.
• Quickly get an online provider referral.

Access "Family and Caregiving Resources" to:

• Get information for managing the care and education of family members.
• Use specialized databases for finding care providers.
• Read, print and download articles of interest.
• Link to other resources.
• Review the regulations of your state.
• Use interactive tools to help you with adoption, child care, senior care and educational issues.

Use "Health and Wellness Resources" to:

• Support a healthy lifestyle.
• Read and download articles of interest.
• Link to other resources.
• Use interactive tools related to physical wellness.

Explore "Daily Living Resources" for:

• Care provider databases.
• Support articles.
• Links to other resources.
• Online calculators.
• Interactive tools for help finding everything from pet sitters to plumbers.
• A variety of consumer, travel, recreational and financial information.

Deadline for Using 2006 FSA Money

While you're counting the number of shopping days before Christmas, you might also want to count the days left for using the 2006 funds in your Health Care and Dependent Care Flexible Spending Accounts (FSA). December 31, 2006 marks the cutoff date, so if you have money left in your account, you have yet another excuse besides the holidays to start spending.

You can use the money in your Health Care FSA to pay for certain medical, dental, vision and hearing expenses not reimbursed by other health plans. But, before you begin stocking up on aspirin and contact lens solution, you should find out how much money you have in your account. You can do this by calling Aetna at (888) 238-6226 or by logging on to Aetna Navigator at www.aetna.com.

Once you know how much you have left to spend, you can think about what you need. If you've already had your annual physical, dental and vision exams, there are other ways to spend the money.

Expenses generally eligible for reimbursement from Health Care FSAs include your health plan's annual deductibles, copayments and coinsurance, as well as a range of other items, such as:

• Over-the-counter drugs, such as antacids, cough and cold medicines and pain and allergy medications.
• Prescription glasses or sunglasses.
• Contact lenses and related products, such as cleaning solutions.
• Birth control pills, as well as over-the-counter contraceptives, such as condoms and spermicidal products.
• Therapy for speech problems or learning disabilities.
• Counseling sessions for children with Attention Deficit Disorder.

For a complete list of eligible expenses under Health Care FSAs, see Publication 502, available on the Internal Revenue Service's Web site at www.irs.gov.

You have until March 31, 2007 to file a claim for eligible expenses incurred during the 2006 calendar year. If Aetna does not receive your request by March 31, any money remaining in your account will be forfeited.

Don't Forget Your Health Assessment!

If you haven't done so already, now's a good time to complete your online health assessment by visiting www.simplestepslife.com. After you complete the assessment, you will receive a tailored health report and a personalized action plan with recommended healthy living programs based on your health needs. What a great way to start 2007!

All of the information you provide will be stored in a secure database and be kept completely confidential.

Important Dates

Date	Activity
November 23 & 24, 2006	Thanksgiving Holidays
December 25 & 26, 2006	Christmas Holidays
December 31, 2006	Last day to incur eligible 2006 health care and dependent care expenses
March 31, 2007	Last day to submit eligible health care and dependent care expenses incurred in 2006 for reimbursement