Elements Newsletter

Clarification of Rules on LTD Pre-Existing Conditions Limitations and Adding Future LTD Coverage

During the 2010 Open Enrollment period, you had a special opportunity to elect Long-Term Disability (LTD) coverage or switch from the 60% to the 50% LTD option without having to complete a Statement of Health form to provide Evidence of Insurability. For this special enrollment, a 12/12 pre-existing limitation applies for employees who enrolled in this coverage for the first time during Open Enrollment.

Now that Open Enrollment is over, we’d like to remind you of the rules going forward. For future enrollments other than at time of hire, or increases to coverage during annual Open Enrollment, a Statement of Health form is required. In addition, a 6/12 pre-existing condition limitation will apply.This means that for the first 12 months of coverage, you wouldn’t be eligible to receive disability benefits for any medical condition for which you received treatment during the previous six (6) months before coverage was effective.

New Offering: Estate Resolution Services^SM

As part of your Optional Life Insurance coverage, Chevron Phillips Chemical now offers MetLife Estate Resolution ServicesSM (ERS) at no cost to you. This added coverage enables your beneficiaries to access the personal support of a Hyatt Legal Plans’ attorney in-person or via telephone for the following probate services:

• Telephone and office consultations to discuss probate matters related to your estate;
• Preparation of documents and court representation needed to transfer probate assets to your heirs;
• Assistance with correspondence necessary to transfer non-probate assets, such as proceeds from insurance policies, joint bank accounts, stock accounts or a house; and
• Associated tax filings.

Thanks to ERS, your beneficiaries will have access to free legal expertise, as well as valuable financial and administrative support, to handle their probate needs.

For more information about this service, please call 1-800-821-6400.

Why You Should Use Mail-Order for Maintenance Prescriptions in 2010 (Aetna Domestic Plan)

Maintenance prescriptions are drugs you take on a regular basis to control chronic conditions, so you have to refill such prescriptions frequently. For 2010, the prescription drug benefit is changing — the prescription drug program will only pay to fill a maintenance medication up to two times at a retail pharmacy.

USING MAIL-ORDER IS EASY!

Remember, the prescription drug deductible doesn’t apply to mail-order prescriptions and the service is convenient. After your initial prescription has been filled through the mail-order service, refills can be ordered over the phone or online. Prescriptions are shipped directly to your home — there’s no time spent driving or waiting in line at the pharmacy.

You can get started with Mail-Order:

• By Mail: Ask your doctor for a 90-day prescription (with up to a year of refills, if appropriate). Complete a Home Delivery order form, include your prescription and payment and mail it to Express Scripts. Forms can be found online at www.express-scripts.com, or you can request forms to be mailed to you by calling 1-888-772-5188.
• Online: Express Scripts will call or fax your doctor to get a Mail-Order prescription for you. Just visit www.express-scripts.com and follow the prompts to change prescriptions to Home Delivery or fill a new prescription.

Note: You will need to register at the Express Scripts Web site if you haven’t already done so. If you don’t have internet access, you can call 1-888-772-5188 and a patient care advocate can get you started with Home Delivery.

SAVINGS WITH MAIL-ORDER SERVICE

Even if you’re only taking a medication for a couple of months, you can still save money. Here’s an example for a preferred brand-name prescription costing $100 per 30-day supply.

	YOUR COST
Retail Pharmacy (30-day supply)
First Fill	$100 (applied to deductible)
Second Fill	$25 copay
Retail Cost for 60 days*	$125
Mail-Order (90-day supply)
First fill	$68 copay
Total Savings	$57

* Only two retail fills will be covered.

And look how much you can save on some of these medications (examples after $100 deductible is met):

Fluticasone 50mcg Nasal Spray

• First two retail fills copay (30-day supply) — $10.00 each
• Mail copay (90-day supply) — $25.00
• Third retail fill (30-day supply) — $67.99 (Cash price, and will vary depending on the pharmacy)

Actos 30mg (Brand Diabetes Medication)

• First two retail fills copay (30-day supply) — $41.56 each
• Mail copay (90-day supply) — $68.00
• Third retail fill (30-day supply) — $148.54 (Cash price, and will vary depending on the pharmacy)

Flovent 50mcg Diskus (Brand Asthma Medication)

• First two retail fills copay (30-day supply) — $25.00 each
• Mail copay (90-day supply) — $68.00
• Third retail fill (30-day supply) — $126.61 (Cash price, and will vary depending on the pharmacy)

BUT SOMETIMES A RETAIL PHARMACY IS STILL CHEAPER

Some retail pharmacies like Wal-Mart, Target, HEB and Walgreens offer special discount programs for generic drugs. These pharmacies have lists of covered prescriptions that you may want to check out. If the pharmacy’s price for a 90-day supply of a maintenance medication is cheaper than the mail-order service, you may want to fill the prescription through the retail pharmacy’s own discount program.

If you do this, you should present your Express Scripts prescription card, but tell the pharmacy clerk that you want to fill the prescription using the pharmacy’s own discount program. That way the prescription gets into your personal claim history, which allows ESI Pharmacy to check for possible drug interactions and for it to become part of your Aetna Personal Health Record. It will also be applied to your prescription drug deductible.

Please note that after the second fill of a maintenance prescription at a retail pharmacy, you will automatically receive a system generated letter from ESI stating this medication will no longer be covered under the Prescription Drug plan. Please disregard this notice. If you can get it cheaper, we encourage you to do so.

For your convenience: ESI accepts all cards with a Visa or MasterCard logo, including credit cards and debit cards. If you participate in the FSA, you can provide your RX Debit Card information to pay for your mail-order drugs directly from your FSA. Remember, once your FSA money is depleted, you will no longer be able to use your RX Debit Card and will need to provide ESI with another form of payment.

Generic vs. Brand-Name Drugs*

With the rising cost of prescription drugs, we’re all looking for ways to save on medication, and generic drugs are a great way to do just that.

AN AFFORDABLE ALTERNATIVE

When a company develops a new drug, it is granted a patent that gives it an exclusive right to sell the drug during the patent’s duration. As the patent nears its expiration date, other manufacturers can apply to the Food and Drug Administration (FDA) for permission to make and market generic versions of the drug. Because these manufacturers have not incurred the start-up costs of research, development and promotion needed to bring a new drug to market, they can offer their generic equivalents at a lower cost.

DIFFERENT LOOK, SAME ACTIVE INGREDIENTS

While U.S. trademark laws require that generic drugs look different from their brand-name counterparts, the FDA requires that their active ingredients and efficacy be the same, and holds all drug manufacturing facilities to the same quality standards. In fact, some pharmaceutical companies may manufacture both the brand-name drug and its generic equivalent.

CONSULT YOUR PHYSICIAN

If your physician prescribes medication, ask if a generic form is appropriate for you. If it is, consider trying the generic equivalent. In most cases, you may find a significant cost difference between the generic option and its brand-name counterpart.

* Reference: Office of Generic Drugs, Center for Drug Evaluation and Research, U.S. Food and Drug Administration (FDA), Generic Drugs: What you need to know. 2009.

A Wellness Success Story

Chevron Phillips Chemical provides many wellness resources to help employees and their families identify lifestyle risk factors and promote more positive lifestyle behaviors, such as company Weight Watchers programs and annual biometric screenings. But it’s really individual employees who sometimes seize the initiative and turn their lives around. Here is a real-life story about one such person.

RHONDA FAIRCHILD has agreed to share her story with us, in her own words.

BACKGROUND

“Weight has been an enemy of mine for most of my life. When I was in my teens and early 20’s it was easy to drop 20 – 30 pounds in a couple of weeks. But as I got older and had children it got harder to lose, especially after the miscarriage between our second and third children.”

“I tried diets and exercises that were ‘guaranteed’ to help you lose 50 pounds and keep it off. I’d lose 20 to 30 pounds, only to gain back 40.”

“Last September [2008], I started feeling bad, having trouble breathing, my knees and back hurt all the time and I was always tired. I thought I had pneumonia. I went to a clinic, they gave me some meds and I got to feeling a little better, but the ill feelings returned after the first of the year 2009.”

IDENTIFYING THE PROBLEMS

“In March 2009 we had the blood draws [biometric screenings] done at work. My results showed I had high bad cholesterol, low good cholesterol and [was] possibly diabetic as well as having high blood pressure. Diabetes runs in my family, so that was not a surprise. I took the results to my doctor who put me on medication for high blood pressure and high cholesterol. He put me on a diabetic diet, but not on diabetic medication, to see if I could control the high glucose [blood sugar] without it.”

“He also told me I needed to lose a bunch of weight or I wouldn’t live to see my future grandchildren. That was enough for me.”

BEHAVIOR CHANGES

“I first removed all refined sugar from my diet. I was drinking a six-pack of Cokes a day. I lost 20 pounds real quick just by giving up Cokes. I’ve cut out other foods where sugar is a main ingredient.”

“I added more fruits and vegetables and whole grains to my diet and started exercising. I started walking at least ½ mile two to three times a week. I started stretching and light weight training two to three times a week.”

“I joined Weight Watchers and it’s really helped.”

SUCCESS TO DATE

“Since April 1, 2009, I’ve lost 85 pounds (as of 11/12/2009). Now my knees and back don’t hurt nearly as much. I have more energy. I hope to get off my medication eventually. I went to my doctor on November 3 and he was extremely impressed not only by my weight loss, but also by all my other numbers for cholesterol, blood pressure, glucose, triglycerides, etc. He told me to keep up the good work and to come back in six months — May 2010. At that time, if everything still looks good, he will either adjust my medications for high blood pressure and cholesterol or will take me off of them. And I hope to live long enough not only to see my grandchildren, but also to see my great-grandchildren.”

Expatriate Benefits Information on Benefitium

If you’re an expatriate, have you taken advantage of the benefits information that’s now available on Benefitium? It’s easy to get to — just click on the “Expatriate Benefits” link in the navigation bar at the left of the benefitium.com home page.

Because international health care coverage is transitioning from CIGNA International Expatriate Benefits (CIEB) to Aetna Global Benefits® (AGB) for 2010, you’ll find posted information on both programs for a while. The site contains the new 2010 Expatriate Benefits Guide and extensive information on your expatriate benefits. We’ll be posting all AGB communications, fliers, FAQs, etc., as they become available.

The site will also have a link to the new AGB Summary Plan Description (SPD) when available.

No More Excuses — Time to Join That Gym!

As part of your health care coverage, the Aetna Fitness discount program is a value-added discount program that provides our members with access to services provided by GlobalFit™, the nation’s most comprehensive provider of gyms and programs supporting members’ healthy lifestyles.

Through the Aetna Fitness discount program, Aetna members now have access to over 10,000 gyms and other exercise locations through the GlobalFit network. Recently, GlobalFit added the following two large chains to its network:

• 24 Hour Fitness, the most requested gym by members and plan sponsors, offers 380 premier gym locations (and growing) nationwide in 16 states. These gyms, as the name implies, are open for up to 24 hours a day. Members can enjoy state-of-the-art equipment, cardio and resistance training, an online nutrition tracker, high-energy group exercise classes and more.
• Jazzercise, available in 2,700 U.S. locations, is a 60-minute class of cardio, strength and stretch moves including hip-hop, yoga, Pilates, jazz dance, kick-boxing and resistance training.

Members can either go online at www.globalfit.com/fitness or call 1-800-298-7800.

Expatriates can take advantage of this program too!

The AGB GlobalFit program is offered as part of Expat health care coverage. The discount programs are only available in the U.S. however, but can be used on visits home or for dependents still living in the U.S.

Important Information for 2009 Year-End

Review Your W-4 Withholding Status
Reviewing personal information affecting your income tax reporting should be among your top priorities as year-end 2009 approaches. This includes reviewing your current W-4 status.

Consider updating your W-4 information in Employee Self Service (ESS) if your filing status or the number of withholding allowances changes for 2010. This is important, as the tax withholding criteria established on your W-4 form largely determines whether or not you will owe additional money or be due a refund. You can review the changes to your tax withholding using the Internal Revenue Services (IRS) Withholding Calculator at http://www.irs.gov/individuals/.

You can access ESS by going to “nSight” and clicking on the Employee Self Service link in the “Portfolio” tab.

While reviewing your W-4 status in ESS, please also take time to review your pay advice and make sure your name and mailing address are correct. Incorrect names, home mailing addresses and social security numbers can cause the incorrect reporting of your expected wages and tax payments and can delay the receipt of your 2009 W-2 form in late January.

2010 Social Security Wage Maximum
The maximum wage contribution for 2010 will remain unchanged at $106,800. The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, remains at 7.65% for 2010. The maximum Social Security tax that can be withheld will be $6,621.60 in 2010. As in prior years, there is no limit to wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax.

2010 Savings Plan Contribution Maximums
The maximum combined contribution for pre-tax and/or Roth contributions for the Company’s Savings and Profit Sharing Plan will remain at $16,500 in 2010. In addition, participants in the Savings and Profit Sharing Plan who are 50 or older in 2010 can also make a catch-up contribution of $5,500, which is unchanged from 2009.

For questions on any of the above, contact the Chevron Phillips Employee Service Center at 1-800-446-1422 and choose option #3 — or check with your HR Business Partner.

Changes to Performance Management Process for 2010

With only one month left in 2009, it’s time to begin reviewing your Performance Management (PM) accomplishments for the year. If you haven’t done so yet, be sure to log on to the PM Web site and complete the efforts and results section before December 31, 2009.

In 2010, the Company is adding a new global competency — Safety, Health, Environmental and Security — and updating the current Collaboration & Cooperation competency to read Collaboration, Cooperation & Inclusion. With these updates, Chevron Phillips Chemical’s PM process will now measure a total of five global competencies:

1. Safety, Health, Environmental and Security
2. Customer Focus
3. Results Orientation
4. Business Orientation
5. Collaboration, Cooperation & Inclusion

The new Safety, Health, Environmental and Security Competency focuses on your efforts to work in a safe, secure, incident free and environmentally responsible manner. This competency will measure how well you are able to:

1. Lead by example and promote safety as a core value and top priority.
2. Conduct assigned duties in accordance with the Tenets of Operation and the Operational Excellence System.
3. Comply with all Environmental, Health, Safety and Security (EHSS) laws, regulations and policies applicable to the work.
4. Follow all safe work rules and practices.
5. Regularly lead and/or participate in workgroup safety meetings and facility safety initiatives as appropriate.
6. When unsure of the regulatory implications of an action, seek guidance from your supervisor and/or EHSS personnel.
7. Actively seek continual improvement by addressing audit findings, action items and potential hazards and non-conformances in a timely and thorough manner.

The newly updated Collaboration, Cooperation & Inclusion competency will measure your ability to maintain good communication and positive working relationships with your customers, peers and supervisor. Additionally, it will measure how well you are able to:

1. Place Company goals ahead of individual accolades.
2. Seek input from others in a respectful and encouraging manner, be open to suggestions and value differences in thoughts and ideas with a global perspective.
3. Demonstrate cultural sensitivity and quality interpersonal skills.
4. Openly share information and practices with peers.
5. Foster a positive employee engagement climate where derailing behaviors are challenged and global diversity is considered a strength of our organization.
6. Work effectively across organizations (not bound by silos).

In addition to the updates to the Global Competencies, we will be adding a comment section under each competency to allow your supervisor to provide you with specific feedback in each area.

Again in 2010, you will be asked to complete a Career Development planning section. Career development planning is an ongoing process where the employee and supervisor explore the individual’s interests and abilities, strategically plan short- and long-term career aspirations and create future work success by developing an action plan to achieve your career goals. Your career development objectives are not part of your performance review rating, but rather a tool to help you take responsibility for your career path and ensure that both you and your supervisor are clear on your ultimate career aspirations. In 2010, we are updating the “Mobility Section” to provide you the opportunity to designate the international location(s) in which you have an interest.

As you wrap up 2009 and start thinking about what you want to accomplish in 2010, remember to take your department’s organizational goals into account so you can define your individual goals accordingly. Lastly, since this process is a shared responsibility between you and your supervisor, be sure to include him/her every step of the way. Ongoing dialogue improves our organizational capacity and makes our Company stronger.

Note: The PM process applies to salaried U.S. $ employees and expats in Belgium, Republic of China, Qatar, Japan, Korea, Saudi Arabia, Singapore and UAE. Other employees should check with their HR Business Partner to see what local processes are applicable to their location.

Holiday Celebrations Around the World

December marks one of the busiest holiday months around the world. From Christmas to Hanukkah and Al Hijra to Kwanzaa, December is full of revelry and celebration, as well as solemn religious contemplation. Traditions take center stage this month around the world!

SAINT NICHOLAS DAY

December 6
St. Nicholas Day is the day designated by the Catholic Church, on its Calendar of Saints, to honor the man named Nicholas, Bishop of Myra (which is now a part of Turkey), who was recognized for his saintly life. Many St. Nicholas Day traditions involve children writing letters to the saint promising good behavior for the coming year. Socks and shoes are left hanging by fireplaces, registers or doors for St. Nicholas to fill with treats.

FIESTA OF OUR LADY OF GUADALUPE

December 12
Guadalupe Day is Mexico’s most important religious holiday. On this day, people from all over Mexico travel to the site of the ancient temple of Tonantzin (now known as the Basilica of Guadalupe) in Mexico City to pay their respects. It is here that the mother of Jesus is said to have appeared before an Indian peasant named Juan Diego back in 1531.

HANUKKAH (FESTIVAL OF LIGHTS)

Begins at sundown on December 11 and ends December 19
Hanukkah starts on the 25th day of the Jewish calendar month of Kislev and lasts for eight days and nights. Hanukkah means “rededication” and commemorates the rededication of the Temple in Jerusalem after its desecration by foreign forces. Hanukkah is celebrated with food, an exchange of gifts and the lighting of menorahs (special Hanukkah candelabras) filled with brightly colored candles. The celebration also reaffirms the continuing struggle to live by God’s commandments and to lead Jewish lives.

AL HIJRA (MUSLIM NEW YEAR)

December 18
Celebrated throughout the Muslim World, the Islamic New Year or “Al-Hijra” occurs on the first day of the month of Muharram, which begins on Hijra in the Muslim calendar. Hijra occurred in 622CE and marks the occasion when the Prophet Muhammad emigrated from Mecca to Medina to create the first Islamic state. It is not as big as the two main Muslim festivals of Eid al-Fitr and Eid al-Adha, but is more a time of reflection and contemplation.

CHRISTMAS DAY

December 25
For Christians, Christmas is the celebration of the birth of Jesus Christ. It is both a holiday and a holy day. In the U.S., it is one of the biggest events of the year, especially for children. The majority of Christians celebrate Christmas with the exchange of gifts, family visits and a large dinner on Christmas Day. Most homes have a decorated evergreen Christmas tree. The holy day is celebrated with a church service on Christmas Eve or Day and the holiday is celebrated with the arrival of Santa Claus. Children who have been good throughout the year wake to find presents under their tree.

BOXING DAY

December 26
Boxing Day, also known as the Feast of St. Stephen (after the first Christian martyr), originated in England as a holiday for members of the merchant class to give boxes containing food and fruit, clothing and/or money to trades people and servants. The gifts were an expression of gratitude, similar to the bonuses many employers offer their employees today. Today, Boxing Day is a time for family and friends to gather with lots of food and fun. Outdoor sports, such as soccer, horse racing and hunting are popular on this holiday. Retailers offer huge savings on many items on this day, making it the biggest shopping day of the year in many parts of the world.

KWANZAA

December 26 to January 1
Kwanzaa is an African-American and Pan-African holiday which celebrates family, community and culture. Its origins can be traced to the first harvest celebrations of Africa, from which it takes its name. The name Kwanzaa is derived from the phrase “matunda ya kwanza,” which means “first fruits” in Swahili. Each family celebrates Kwanzaa in its own way, but celebrations often include songs and dances, African drums, storytelling, poetry reading and a large traditional meal. On each of the seven nights, the family gathers and a child lights one of the candles on the Kinara (candleholder), after which, one of the seven principles is discussed. The principles, called the Nguzo Saba (seven principles in Swahili), are values of African culture which contribute to building and reinforcing community among African-Americans.

To learn more about these year-end holiday celebrations, as well as additional international holidays throughout the year, visit the Diversity Calendar on nSight.

Diversity Survey Update

The Spartacus Group is tabulating the results of the survey by location and organization, and collecting further qualitative data related to the responses. Focus groups and one-on-one interviews are being conducted to clarify certain aspects of the survey. To date, 65 individual interviews and 24 focus groups have been completed. The preliminary reports by function, major facility and SBU are being reviewed with executive leadership and facility and business management teams.

Overall, it appears that Chevron Phillips Chemical is performing better than benchmark companies in many areas, such as access to professional development. However, there are always opportunities to improve in certain areas. We look forward to leveraging the lessons learned from our highest performing facilities across various categories. The survey metrics will provide a reasoned basis to establish targeted competencies and expectations and further develop an inclusive workplace with high performing teams.

Results of the effort will be cascaded down through each organization once the data has been fully compiled. Next, action plans will be developed both at the corporate and local level with input from employees and local management. It is anticipated that additional diversity and inclusion training will be rolled out in 2010. While the survey analysis is being finalized, Diversity Ambassadors at our major facilities are preparing to launch Diversity Councils at their facilities.

Important Dates

Date	Activity
December 24 & 25, 2009	Christmas Holidays (offices closed)
December 31, 2009	Last day to incur eligible 2009 health care and dependent care expenses
January 1, 2010	New Year’s Holiday (offices closed)
March 31, 2010	Last day to submit eligible health care and dependent care expenses incurred in 2009 for reimbursement