THUMS LONG BEACH COMPANY PENSION PLAN - … Publication Info/Summary Plan...The THUMS Long Beach Company Pension Plan (the “Plan”) is designed to provide income for your retirement

THUMS LONG BEACH COMPANY

PENSION PLAN

Summary Plan Description

January 1, 2015

Table of Contents

HIGHLIGHTS .......................................................................................................................... 1 DEFINITIONS .......................................................................................................................... 3 PARTICIPATION IN THE PLAN ........................................................................................... 5

YOUR BENEFITS PROVIDED BY THE PLAN ................................................................... 5

Normal Retirement Date ................................................................................................5

Early Retirement Date....................................................................................................8

Deferred Retirement Date ............................................................................................10

YOUR BENEFIT IF YOU BECOME DISABLED ............................................................... 10

HOW YOU WILL RECEIVE YOUR BENEFITS ................................................................ 12

Automatic Forms of Payment ......................................................................................12

Optional Forms of Payment .........................................................................................12

Single Life Annuity .......................................................................................... 12

Joint and Survivor Annuity (50%, 75%, or 100%) ......................................... 12

5 or 10-Year Certain and Life Annuity ........................................................... 13

Lump Sum........................................................................................................ 13

APPLYING FOR BENEFITS ................................................................................................ 14 SITUATIONS THAT MAY AFFECT YOUR PLAN BENEFIT .......................................... 15

Overview ......................................................................................................................15

OTHER IMPORTANT PROVISIONS .................................................................................. 17

Leave of Absence............................................................................................. 17

Maternity/Paternity Leave .............................................................................. 17

Military Leave ................................................................................................. 17

Assignment of Your Benefits ........................................................................... 17

Qualified Domestic Relations Orders (QDROs)............................................. 18

Missing Persons .............................................................................................. 18

Mergers, Consolidations, and Transfers ........................................................ 18

Direct Rollover................................................................................................ 18

No Implied Promises ....................................................................................... 19

BENEFIT CLAIMS AND APPEALS PROCEDURES ......................................................... 19

General Information About Claims .............................................................................19

Time Period for Responding to Initial Claim ..............................................................19

Information Provided if Initial Claim is Denied ..........................................................20

Appeal Procedure if Initial Claim is Denied ................................................................20

Information Provided if Appeal is Denied ...................................................................21

Legal Proceedings ........................................................................................................22

PLAN CONTINUATION ....................................................................................................... 22

BENEFIT INSURANCE ........................................................................................................ 23 ADDITIONAL INFORMATION ........................................................................................... 24 YOUR ERISA RIGHTS ......................................................................................................... 26

1

THUMS LONG BEACH COMPANY

PENSION PLAN

HIGHLIGHTS

The THUMS Long Beach Company Pension Plan (the “Plan”) is designed to provide

income for your retirement. Here are the highlights:

THUMS Long Beach Company (“THUMS”) provides this Plan at no cost to you,

making your lifetime benefits especially valuable.

Normal retirement age is age 65, but you may retire as early as age 55 if you meet

certain service requirements. You may also postpone retirement.

The amount of your benefit is based on your years of employment and your pay with

the California Resources Corporation family of companies (“CRC”).

You may earn the right to receive a benefit even if you leave CRC before retirement.

If, while employed by CRC, you become permanently and totally disabled, as defined

by the Plan, and have the required years of service under the Plan, you may commence

payment of benefits under the Plan.

The Plan may provide a benefit to your spouse if you die before commencement of

retirement benefits with a Vested right to benefits.

The Plan may provide a benefit to your spouse or other beneficiary if you die after

commencement of retirement benefits.

Plan benefits are paid in addition to retirement benefits that you may receive through

Social Security.

2

This booklet summarizes your pension benefit so that you can understand how the

Plan operates. Although this booklet covers many of the principal features of the

Plan, it is only a summary. The complete provisions are contained in the official Plan

document. If you wish, you can review or obtain a copy of the Plan document – see

the YOUR ERISA RIGHTS section for more information.

All benefits described in this Summary are subject to the terms of the Plan

document and trust agreement. The Plan is administered according to the Plan

document and trust agreement. The Plan Administrator has the power to construe

and interpret the Plan, to supply all omissions from, correct deficiencies in, and

resolve ambiguities in, the language of the Plan and trust. If there is any conflict

between this booklet and the legal documents, the Plan document and trust

agreement will govern.

This Summary reflects the Plan provisions in effect on January 1, 2015.

3

DEFINITIONS

Throughout this booklet, certain terms will be used that have special meanings under the

Plan. For your convenience, these terms are defined below:

Accrued Benefit means your normal retirement benefit payable at age 65 in the form of a

Single Life annuity option, based on your service and compensation (as defined in the

Plan).

Actuarial Equivalent means payment in an alternate form having the same value as the

benefit for which it is substituted using the bases specified in the Plan.

Annuity Start Date is the later of the first day of the month following your termination

date or your elected start date to begin benefits.

Break-in-Service means any 12-month period beginning on your date of hire and

anniversaries thereafter during which you are credited with less than 501 Hours of Service.

Compensation is your base pay (including amounts contributed by salary reduction to a

401(k) plan or other benefit plan paid for with pre-tax dollars), eligible bonuses, shift

differentials paid for work on a rotating scheduled shift or 12 hour shift schedule and

scheduled overtime, as part of a normal work schedule, paid for work on a rotating

scheduled shift or 12 hour shift schedule. Compensation, however, does not include any

other special consideration such as unscheduled overtime or other extra compensation. In

addition, Federal law prohibits the Plan from basing your Plan benefit on Compensation in

excess of $265,000 (for the 2015 Plan Year, indexed for inflation).

Covered Compensation is the average of the taxable Social Security wage bases for the 35

calendar years ending with the calendar year which includes your Social Security

Retirement Age.

CRC refers to the California Resources Corporation family of companies.

Eligible Employee means an employee of the Occidental Oil and Gas Corporation who

was an active participant and an eligible employee of THUMS on or after January 1, 2007

and immediately before January 1, 2008. Generally, leased employees, nonresident aliens,

employees covered by a collective bargaining agreement that did not specifically provide

for participation in the Plan, or employees of a non-participating employer were not

eligible.

ERISA means the Employee Retirement Income Security Act of 1974, as amended.

Final Average Compensation is your average monthly Compensation for the 36 months

during which your Compensation is highest. Only the last 120 months of your employment

will be considered for this calculation.

4

Hours of Service count toward determining your Plan benefits and your eligibility to

receive them. You receive one Hour of Service for each hour that the CRC pays you, or for

which you are entitled to payment. This includes, within certain limits under the Plan, the

accrual of Hours of Service for absences due to vacation, holidays, illness, incapacity

(including disability or pregnancy), layoff, jury or military duty, and leave of absence. You

accrue a maximum of 501 hours for any period in which you are absent from work. In

addition, you accrued Hours of Service for certain absences permitted by the Family

Medical Leave Act of 1993. Finally, you might accrue Hours of Service in the event that

back pay is awarded or agreed to by the CRC.

Plan means the THUMS Long Beach Company Pension Plan.

Plan Administrator means the California Resources Retirement Investment and

Administrative Committee, appointed by the board of directors of California Resources

Corporation to administer all matters relating to the Plan.

Plan Year is each 12 month period beginning January 1 and ending December 31.

For Plan years prior to January 1, 2009, the plan year began on July 1 and ended June 30.

The Plan had a short plan year beginning with the Plan year starting July 1, 2008 and

ending December 31, 2008.

Social Security Retirement Age (SSRA) is 65 if your birth year is before 1938. If your

birth year is between 1938 and 1954, your Social Security Retirement Age is 66. If your

birth year is after 1954, your Social Security Retirement Age is 67.

THUMS refers to THUMS Long Beach Company.

Vesting or Vested refers to your right to receive benefits under the Plan, whether or not

you continue working for CRC until retirement. You become fully Vested with at least

five Years of Vesting Service, or upon attainment of age 65 during CRC employment,

whichever is earlier.

Years of Service began with the 12 month period beginning on the first day of the month

after you started working for THUMS. Subsequent Years of Service (and fractions thereof)

are calculated from that same anniversary date to the first day of the month coincident with

or immediately following your date of separation.

Years of Vesting Service are credited for each 12 month period beginning on your date of

hire with THUMS and each subsequent anniversary thereof during which you are credited

with at least 1,000 hours of service.

5

PARTICIPATION IN THE PLAN

Newly Hired Employees

Prior to January 1, 2008, if you were an employee of THUMS, other than a leased

employee, an employee covered by a collective bargaining agreement, or an employee who

was a nonresident alien with no U.S. sourced income, you became a participant in the Plan

once you completed 12 consecutive months of employment starting on your date of hire or

any anniversary date after that. You had to complete at least 1,000 Hours of Service during

this 12 month period in order to qualify. Effective January 1, 2008, no new participants are

eligible to participate in the Plan.

Rehired Employees

Prior to January 1, 2008, if you worked for THUMS and were a Plan participant, and you

were later rehired by THUMS, you automatically became a participant once again on your

rehire date. If you were not yet a participant, you had to meet the requirements for newly

hired employees outlined above. Effective January 1, 2008, no rehired employee is

permitted to re-join the Plan as an active participant.

YOUR BENEFITS PROVIDED BY THE PLAN Depending on when you choose to retire, your Plan benefit will be calculated according to the

formula shown in this section.

Normal Retirement Date

Your “Normal Retirement Date” is the first day of the month on or after your 65th birthday. So,

for example, if you turn 65 on April 21, your Normal Retirement Date would be May 1.

The formula used to calculate your monthly benefit at your Normal Retirement Date is:

(1) 1.2% of your Final Average Compensation multiplied by your Years of Service plus

(2) 0.4% of your Final Average Compensation in excess of your Covered

Compensation multiplied by your Years of Service (not to exceed 35 years)

This is the benefit you will receive if you work until your Normal Retirement Date and

choose the Single Life Annuity form of payment. (The different forms of payment

available will be discussed in the HOW YOU WILL RECEIVE YOUR BENEFITS section

below).

6

If You Leave Before Retirement If you leave CRC after completing five Years of Vesting Service, you will be eligible to

receive a retirement benefit. This is your Vested benefit and cannot be taken away from

you.

If you leave the CRC before retirement, your benefit will be based on your Final Average

Compensation and Years of Service as of the date you leave the CRC. It will be payable at

your Normal, Optional or Early Retirement Date. Alternatively, you may elect to

commence reduced monthly benefits or receive the value of your benefit in a single lump

sum payment at any time after you leave the CRC, prior to your Normal, Optional or Early

Retirement Date.

If You Die Before Retirement If you should die after you have five Years of Vesting Service, your spouse (to whom you

have been married for at least one year before your death) will receive a monthly benefit.

It will be equal to 50% of the monthly benefit that would have been payable to you if you

had:

(1) Ended employment on the earlier of the date of your death or the actual date you

left;

(2) Survived until your Early Retirement Date; and

(3) Begun receiving a 50% Joint and Survivor Annuity benefit.

If you should die on or after your 55th birthday with five or more Years of Vesting Service

while still employed by CRC, your spouse will receive a monthly benefit equal to the

monthly benefit you would have received if you had retired on the date of your death, and

had chosen a 100% Joint and Survivor Annuity benefit described in the HOW YOU WILL

RECEIVE YOUR BENEFITS section.

7

Here is an example of how this benefit would be calculated. Suppose that:

(1) You retire on your Normal Retirement Date at age 65;

(2) You have 25 Years of Service at retirement;

(3) Your Final Average Compensation is $4,500 per month; and

(4) Your Covered Compensation is $3,500 per month.

Your monthly benefit under the Single Life Annuity form would be:

.012 Final Average Compensation $ 54.00

multiplied by Years of Service 25

$ 1,350.00 per month

plus

.004 Final Average Compensation in excess of

Covered Compensation $ 4.00


$ 100.00 per month

Your Normal Retirement Date benefit equals $ 1,350.00

+ 100.00


8

Optional Retirement Date If you have completed at least five Years of Vesting Service and are at least 60 years old, you

may retire early, without having your benefit reduced. If you retire between ages 60 and 65,

this will be known as your “Optional Retirement Date”. Your Covered Compensation in this

case will be based on your age at your Optional Retirement Date.

Here is an example of how the Optional Retirement Date works. Suppose that:

(1) You retire at one of your Optional Retirement Dates—we’ll assume age 60;

(2) You have 20 Years of Service at your Optional Retirement Date;



Your monthly benefit as a Single Life Annuity form would be:




plus




$ 80.00 per month

Your Optional Retirement Benefit equals $ 1,080.00

+ 80.00


Early Retirement Date

You may be eligible to retire and collect your Plan benefit before turning age 60. Your

Early Retirement Date may be any time after you have turned age 55 and completed five

Years of Vesting Service.

Unlike the Optional Retirement Date, your benefit at an Early Retirement Date will be

reduced, depending on the age at which you choose to retire. This is because payments

begin at a younger age and are expected to be paid for a longer period of time.

9

This table shows the percentage of your Normal Retirement Date benefit you will get if you

retire on an Early Retirement Date:

Age

at

Retirement

Early

Retirement

Percentage

59 95%

58 90%

57 85%

56 80%

55 75%

The percentage will be adjusted for fractional parts of a year.

Here’s an example of how your benefit would be calculated if you choose to retire at an

Early Retirement Date. Let’s assume that:

(1) You retire at age 55;

(2) You have 15 Years of Service;



Your monthly benefit under the Single Life Annuity form would be:



$ 810.00 per month

plus




$ 60.00 per month

Your benefit at Normal Retirement Date equals $ 810.00

+ 60.00

$ 870.00 per month

multiplied by the Early Retirement Percentage 75%

Your Early Retirement Benefit equals $ 652.50 per month

10

Deferred Retirement Date

You may decide to continue working for the CRC after you turn age 65. If this happens,

you won’t receive your Plan benefit until your Deferred Retirement Date. This is the first

day of the month on or after the date you stop working for the CRC. Your deferred

retirement benefit will be based on your Final Average Compensation and Years of Service

at your Deferred Retirement Date.

YOUR BENEFIT IF YOU BECOME DISABLED

You will be entitled to a Disability Retirement Benefit under the Plan if you qualify for

Social Security disability benefits.

Your Disability Retirement Benefit will end on the earlier of:

(1) The date of your death;

(2) The date you are declared no longer permanently and totally disabled; or

(3) The date you reach age 65.

The amount of your benefit is calculated in the same manner as an Early Retirement

Benefit, but it will be based on the Years of Service you would have accrued if you had

worked to your Normal Retirement Date, instead of the number of years worked at the time

you are disabled. That amount would then be multiplied by the fraction:

Your Total Years of Service as of Your Disability Retirement Date

Total Possible Years of Service to Age 65

Note: Your disability benefit is not subject to the Early Retirement Percentage reduction.

Here’s an example of how this works. Suppose that:

(1) You become disabled at age 50;

(2) You have 10 Years of Service as of your Disability Retirement Date, but would

have had 25 Years of Service at your Normal Retirement Date;

(3) Your Final Average Compensation as of your Disability Retirement Date is

$4,500; and

(4) Your Covered Compensation is $3,500.


multiplied by Years of Service to Age 65 25


plus



multiplied by Years of Service to Age 65 25

$ 100.00 per month

11

Your benefit at Normal Retirement Date equals $ 1,350.00

+ 100.00


multiplied by Total Years of Service at Disability

Total Possible Years of Service to Age 65

(which equals 10/25, or 0.4)

0.4

Your Disability Retirement Benefit equals $ 580.00 per month

If you are still disabled at age 65, your benefit will be recalculated. It will be determined

based on the average Compensation you received in the 12 months immediately before

your Disability Retirement Date used for all years after your Disability Retirement Date

and on the Years of Service accrued to age 65, including the years since your Disability

Retirement Date.

Here’s how it works. Assume that:

(1) You have reached the Normal Retirement Date of age 65;

(2) You would have had 25 Years of Service at age 65;



Your monthly benefit at Normal Retirement Date under the Single Life Annuity form

would be:




plus




$ 100.00 per month

Your benefit at Normal Retirement Date equals $ 1,350.00

+ 100.00


12

HOW YOU WILL RECEIVE YOUR BENEFITS

You have several options available for how you want to receive your benefits from the

Plan. These options are available at your Normal, Optional, or Early Retirement Dates.

When you are getting ready to retire, you should notify the CRC Pension Service Center.

They will provide you with an explanation of the optional forms of payment available to you.

Before your actual retirement date, you may choose one of the optional forms. If you do not

choose one of the optional forms, your retirement benefit will be paid in one of the two

automatic forms of payment described below.

Automatic Forms of Payment

Unmarried Participants The automatic form of payment for unmarried participants is a Single Life Annuity. It

provides you with a monthly benefit, for as long as you live. All payments stop when you

die.

Married Participants The automatic form of payment for married participants is a 50% Joint and Survivor

Annuity. To calculate this option, your Single Life Annuity payment amount is actuarially

reduced and paid to you, for as long as you live. If you should die before your spouse, he

or she would receive 50% of the benefit you were receiving until death. If you or your

spouse die or divorce when you and your spouse have been married for less than one year,

you will be treated as being unmarried and your benefit will be paid as a Single Life

Annuity for your lifetime only.

If you are married and choose an optional form of payment (described below), other than a

Joint and Survivor Annuity with your spouse as the joint annuitant, your spouse must consent

to your choice in writing. This consent must be witnessed by a Plan representative or a notary

public.

Optional Forms of Payment

There are several optional forms of payment available to you, besides your automatic form

of payment. You may choose from any of the following options. The monthly benefit

amount under each form will be slightly different because the benefits are payable over

differing periods of time:

Single Life Annuity

This form of payment provides you with a monthly benefit for as long as you live. There

will be no additional payments made to your spouse or other beneficiary after your death.

Joint and Survivor Annuity (50%, 75%, or 100%)

A Joint and Survivor Annuity pays you a reduced monthly benefit for as long as you live.

Depending on which percentage you choose, after your death, 50, 75, or 100% of your

monthly income will be paid to your spouse or other designated beneficiary for as long as

that person lives.

13

Before you retire, you must designate your beneficiary and the percentage of your monthly

income you want to be paid to your spouse or other designated beneficiary after your death.

Once payments begin, neither of these choices may be changed.

5 or 10-Year Certain and Life Annuity

This form pays you a monthly benefit for as long as you live. If you die before receiving

60 or 120 monthly payments (5 or 10 years, respectively), then further payments will be

made to your designated beneficiary to the end of the 60 or 120 payments.

Lump Sum

This option pays you a single cash payment of the actuarial equivalent of your retirement

benefit accrued up to your date of separation. If you are eligible to receive an early

retirement benefit, then the lump sum will be based on the actuarial equivalent of your

early retirement benefit. Otherwise, the lump sum will be based on your benefit at Normal

Retirement Date.

Note: In general, the Single Life Annuity form will give you the largest monthly

payment because there are no death benefits. The 100% Joint and Survivor Annuity

form will give you the smallest monthly benefit because full payments would continue

for your survivor’s lifetime in the same amount.

Here is a comparison of how much the various options might pay at retirement. Assume

that:

(1) You retire at age 65;

(2) Your benefit under the Single Life Annuity form is $1,450.00; and

(3) Your survivor is age 62.

Form of Income

Your Approximate

Monthly Benefit

Single Life Annuity $1,450.00

5-Year Certain and Life Annuity $1,416.94

10-Year Certain and Life Annuity $1,337.19

50% Joint and Survivor Annuity $1,304.71

Payable to Your Survivor $652.36


Payable to Your Survivor $926.55


Payable to Your Survivor $1,176.53

Note: These amounts are based on specific tables. There are many factors that will

vary, such as your age, and the age of your survivor. When you are ready to choose an

option, we can calculate your exact benefit amounts under the various options.

14

APPLYING FOR BENEFITS

To ensure that you have enough time to choose the form of payment that best meets your

financial needs, and to allow sufficient time for administrative processing, you should

notify CRC Pension Service Center at least 90 days before the date on which you are

planning to retire. If you leave CRC or become disabled, you should contact the CRC

Pension Service Center to determine the benefits to which you may be entitled. If you die,

your surviving spouse or beneficiary should contact the CRC Pension Service Center to

determine the benefits to which they may be entitled.

You must complete an application to begin your retirement benefit using the form

prescribed by the Plan Administrator. Your completed application must be filed with the

CRC Pension Service Center at least 30 days prior to the date you would like your

retirement benefit to commence. You must have been a participant in the Plan who has

terminated employment with CRC at the time your retirement benefit is to begin.

You will receive an option/waiver form not later than 90 days before your normal or

postponed retirement date. If you elect to retire early, you would file your election at least

90 days before your actual retirement date.

15

Your retirement benefit may be subject to federal and state tax withholding once payment

begins. If you have any questions concerning your benefits, please contact the CRC

Pension Service Center.

SITUATIONS THAT MAY AFFECT YOUR PLAN BENEFIT

Overview

Your benefit payments may be paid at a different time or in an amount less than you

anticipated under certain circumstances summarized below:

Your Benefit If You Leave Before Retirement. If you leave CRC after completing five

Years of Vesting Service, you will be eligible to receive a retirement benefit. This is your

Vested benefit and cannot be taken away from you.

If you leave the CRC before retirement, your benefit will be based on your Final Average

Compensation and Years of Service as of the date you leave the CRC. It will be payable at

your Normal, Optional or Early Retirement Date. Alternatively, you may elect to commence

reduced monthly benefits or receive the value of your benefit in a single lump sum payment

at any time after you leave the CRC, prior to your Normal, Optional or Early Retirement

Date.

Your Benefit If You Die Before Retirement. If you should die after you have five Years of

Vesting Service, your spouse (to whom you have been married for at least one year before

your death) will receive a monthly benefit. It will be equal to 50% of the monthly benefit

that would have been payable to you if you had:

(1) Ended employment on the earlier of the date of your death or the actual date you left;

(2) Survived until your Early Retirement Date; and

(3) Begun receiving a 50% Joint and Survivor Annuity benefit.

If you should die on or after your 55th birthday with five or more Years of Vesting Service

while still employed by CRC, your spouse will receive a monthly benefit equal to the

monthly benefit you would have received if you had retired on the date of your death, and

had chosen a 100% Joint and Survivor Annuity benefit as described in the HOW YOU WILL

RECEIVE YOUR BENEFITS section.

If You Leave CRC. In general, if you leave CRC before you are Vested, you will forfeit the

value of your Plan benefit. You may, however, retain credit for your accrued Years of Vesting

Service if you have less than five Years of Vesting Service at the time that you leave. In that

event, you will retain credit for your previous Years of Vesting Service only if you are re-

employed by CRC before you incur five consecutive Breaks in Service (as defined in the section

entitled DEFINITIONS).

Once you have five or more consecutive Breaks in Service, you will lose credit for all

previously accrued Years of Vesting Service unless you have a Vested right to a benefits. If

CRC subsequently rehires you, you will be treated as a new employee for purposes of the Plan.

16

Special rules apply if you terminate, start receiving a benefit payment, and are then re-

employed by CRC. Please contact the CRC Pension Service Center regarding your particular

situation for information on how your benefit will be affected due to reemployment.

If You Do Not File a Proper Application for Your Benefit. If you leave CRC and do not

properly apply for your benefit payments to begin, payments will not begin until your

application for a benefits is received and approved or, if earlier, the April 1 following the

calendar year in which you attain age 70½.

If You Do Not Provide Proper Information. If you do not keep your most recent address on

file and the Plan Administrator cannot locate you, benefit payments may be delayed and

eventually forfeited. (See Missing Persons below.) Also, if you do not provide the necessary

information then payment of your benefit will be delayed. If erroneous data is provided, your

benefit payments will be adjusted to recoup any overpayments.

If an Overpayment is Made. The Plan Administrator makes every effort to ensure that benefit

payments is are correct. However, if a mistake is made when your benefits is are paid, the Plan

Administrator reserves the right to recover any overpayment.

If Your Benefits Exceeds Federally Prescribed Maximums. Federal laws and regulations

place a maximum on the benefit amounts payable to an individual from the Plan. The

maximum affects very few employees, but if you are affected by the maximum, you will be

notified.

If the Plan Does Not Meet Certain Funding Requirements. Federal laws and regulations

restrict payment of benefits or future accruals if the ratio of Plan assets to Plan benefits falls

below certain prescribed percentages or if the company goes into bankruptcy. If you are

affected by the restrictions, you will be notified. The restrictions, if applicable, could include:

(i) limitation on the availability of lump-sum distributions over $5,000; (ii) limitation on plant

shutdown and similar benefits; (iii) limitation on plan amendments increasing benefits; and (iv)

automatic freeze of future benefit accruals.

If You Fail to Appeal a Denied Claim. If you, your spouse, beneficiary, or an alternate payee

under a QDRO fail to make a timely appeal of a denied claim, your rights under the Plan’s

Claims and Appeal Procedures may be extinguished. (See BENEFIT CLAIMS AND

APPEALS PROCEDURES in this Summary.)

17

OTHER IMPORTANT PROVISIONS

Leave of Absence

If you are on a CRC approved, unpaid leave of absence, you may receive up to six months’

worth of Hours of Service, provided that you return to work, or retire, immediately after

your approved leave period ends.

Maternity/Paternity Leave

If you were on a leave of absence from work because of the birth or adoption of your child,

or because of the care of your child immediately following birth or placement, then your

termination date used for the purpose of computing your initial Break in Service was the

second anniversary of the first date on which your leave commenced. Thus, you could

have taken up to two years of unpaid maternity or paternity leave before you incurred a

Break in Service, provided that you returned to work immediately following the expiration

of the leave. This special computation applied only for the purpose of avoiding a Break in

Service. You could have, however, accumulated some amount of Years of Service and

Years of Vesting Service during your leave if you returned to work within 12 months of the

date on which your leave commenced. In that circumstance, provided that you otherwise

continued to be eligible to participate in the Plan, you received Years of Vesting Service

and Years of Service as though you never took a leave and instead continued to work your

regularly scheduled hours.

Military Leave

The Plan complies with the requirements of the Uniformed Services Employment and

Reemployment Rights Act of 1994 (USERRA) and the Heroes Earnings Assistance and

Relief Tax Act of 2008 (the HEART Act). If you are a participant on a qualified military

leave of absence, you will continue to accrue Years of Vesting Service and Years of

Service, provided that you return to work after your leave period ends in accordance with

the requirements of USERRA. Upon your return, you will retain your status as an active

participant as long as you satisfy the Plan’s eligibility requirements. In general, qualified

military leave includes all periods of active duty with a U.S. uniformed service (including

National Guard and reserve training) of up to five years’ duration. If a participant dies

while performing in the uniformed services, the survivors are entitled to receive any

additional benefits (other than benefit accrual relating to the period while on military leave)

provided under the Plan as if the participant had resumed employment on the day before

death.

Assignment of Your Benefits

Your retirement income benefit belongs to you and may not be sold, assigned, transferred,

pledged or garnished under most circumstances. The Plan is required, however, to comply

with Internal Revenue Service tax levies and with court-issued QDROs, which are

described below.

If you (or your spouse, contingent annuitant, beneficiary or alternate payee under a QDRO)

are unable to care for your own affairs, any elections may be made by, and any payments

18

due may be paid to, someone who is authorized to conduct your affairs. This may be a

relative, a court-appointed guardian, or some other person.

Qualified Domestic Relations Orders (QDROs)

If you become divorced or separated, are required to pay child support, or are involved in a

court proceeding dividing marital property, certain court orders could require that part of

your benefit be paid to someone else known as an alternate payee. An alternate payee

could be a spouse, former spouse, child, or other dependent. This kind of a court order is

known as a QDRO. To be honored, a QDRO must meet specified legal standards, the

satisfaction of which will be determined by the Plan Administrator. You may obtain a

copy of the Plan’s QDRO procedures at no charge from the CRC Qualified Order Team at

888.848.4754. As soon as you are aware of any court proceedings that may affect your Plan

benefit, you should contact the CRC Qualified Order Team.

You may be able to speed up court proceedings and save on legal fees by getting a copy of

the Plan’s QDRO procedures for review by your attorney before any order is presented to a

court awarding someone else a share of your Plan benefit. By following the QDRO

procedures, you reduce the risk that the order will be rejected by the Plan. If the Plan

rejects the order, you or your attorney will need to obtain a revised order from the court.

Missing Persons

If the Plan Administrator is unable to begin benefit payments to you, your spouse, contingent

annuitant, beneficiary, or alternate payee under a QDRO, or other person entitled to a Plan

benefit because their identity or whereabouts cannot be ascertained, and two years have passed

since such payment was to begin, then the Plan Administrator may mail a notice by registered

mail to the last known address of such person. The notice shall state that unless that person

makes written reply to the Plan Administrator within 60 days from the mailing of such notice,

the Plan Administrator shall direct that the benefit shall be forfeited and all liability for the

payment thereof shall terminate. In the event of the subsequent reappearance of the person

entitled to such benefit prior to termination of the Plan, the benefit, which was due and payable

and which such person missed, shall be paid in a single sum, and any future benefit due such

person shall be reinstated in full. The amount payable to such person shall be equal to the

benefit forfeited, without interest on such amount for the period commencing on the date such

benefit was forfeited and ending on the date of the claim.

Mergers, Consolidations, and Transfers

If the Plan is merged or consolidated, or if Plan assets are transferred to another plan, the

benefit you have accrued at the time of the merger, consolidation, or transfer will be protected.

Your accrued benefit under the new plan, if the plan were to terminate immediately after the

change, would at least equal the accrued benefit that you would have been entitled to receive if

the current plan had terminated just before the change.

Direct Rollover

You, your spouse, or alternate payee under a QDRO may direct the Plan Administrator to

transfer all or part of your eligible rollover distribution, in amounts of $500 or more, directly

to an IRA or other eligible retirement plan. Currently, only the Lump Sum Option form under

this Plan can qualify as an eligible rollover distribution. If you are interested in learning more

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about whether a distribution is eligible for rollover, please contact the CRC Pension Service

Center at 1.888.909.4156.

No Implied Promises

Nothing in this Summary says or implies that participation in this Plan is a guarantee of

continued employment with CRC. Nor is it a guarantee that the Plan’s current benefit formula

will remain unchanged in future years.

BENEFIT CLAIMS AND APPEALS PROCEDURES

The Plan is covered under Title I of ERISA. The Plan Administrator has discretionary

authority to determine who is eligible for coverage and benefits under the Plan. In

exercising its fiduciary responsibilities, the Plan Administrator shall have discretionary

authority to determine whether and to what extent covered participants, spouses, contingent

annuitants, alternate payees, and beneficiaries are eligible for benefits, and to construe

disputed or doubtful Plan terms. The Plan Administrator shall be deemed to have exercised

such authority properly unless it has abused its discretion hereunder by acting arbitrarily

and capriciously.

General Information About Claims

A claim for a benefit is a formal request by you (or your spouse, contingent annuitant,

alternate payee, or beneficiary) for the payment of a benefit due under the terms of the

Plan. You (including your spouse, contingent annuitant, alternate payee, or beneficiary)

have a right to file a formal claim for a benefit from the Plan if you believe that you are not

receiving all benefits to which you are entitled under the terms of the Plan. All formal

claims for benefits must be submitted in writing to the Plan Administrator (c/o the Plan

Administration office at the address indicated under the ADDITIONAL INFORMATION

section, which is the named fiduciary with responsibility for deciding on your claim. The

submission should indicate that it is a formal claim for benefits.

An authorized representative may represent you when you file your initial claim or you

appeal the initial denial of your claim. The Plan Administrator may require that the person

you select provide evidence (such as a signed authorization) that you have authorized him

or her to represent you in connection with your claim for benefits.

Time Period for Responding to Initial Claim

Generally, the Plan Administrator will provide a response to your claim within 90 days

after it receives your claim. The Plan Administrator may notify you in writing before the

end of the normal 90-day review period that it needs up to an additional 90 days to review

your claim because of special circumstances. That notification will indicate the special

circumstances requiring the extension (such as not receiving required information) and

when the Plan Administrator expects to be able to respond to your claim. If you do not

receive a response within the applicable time period, please contact the Plan Administrator.

Alternatively, you may assume that the claim has been denied and submit an appeal.

However, in that case you will not have as much information to help you prepare a

successful appeal.

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If the claim is a disability claim, the following timing rules will apply instead of those

stated in the preceding paragraph. The Plan Administrator will provide a response to your

claim within 45 days after it receives your claim. The Plan Administrator may notify you

in writing before the end of the normal 45-day review period that it needs an additional 30

days to review your claim because of special circumstances beyond the control of the Plan

Administrator. If special circumstances beyond the control of the Plan Administrator

justify extending the claim period up to an additional 30 days, you will be given written

notice of this extension within the original 30-day period. Each extension shall set forth

the special circumstances beyond the control of the Plan Administrator and the date a

decision is expected.

Information Provided if Initial Claim is Denied

If your claim is denied in whole or in part, you (or your spouse, contingent annuitant,

alternate payee, or beneficiary) will receive a written response from the Plan Administrator.

The Plan Administrator’s response will include the following information:

The specific reasons for the denial;

Reference to the specific plan provisions upon which the denial was based;

A description of any additional material or information that is necessary for your

claim to be successful, and an explanation of why this information is necessary;

An explanation that a full and fair review by the Plan Administrator of the decision

denying the claim may be requested by you or your authorized representative by

filing with the Plan Administrator, within 60 days (or, if the claim for benefits is

based on your disability, 180 days) after such notice has been received, a written

request for such review; A statement you or your authorized representative have a

right to receive, upon request and free of charge, reasonable access to or copies of

documents, records, and other information relevant to your claim for benefits,

other than legally privileged documents, and to submit issues and comments in

writing within the period specified above; and

A statement that you have a right to bring a civil action under ERISA following an

adverse determination on any appeal you file after the initial denial of your claim.

If the Plan Administrator’s response does not include all of this information, please

contact the Plan Administrator and request the missing information.

Appeal Procedure if Initial Claim is Denied

If your initial claim is denied, you (or your spouse, contingent annuitant, alternate payee, or

beneficiary) may appeal the denial and request that the Plan Administrator further review

your claim. You must submit your appeal in writing to the Plan Administrator, c/o the Plan

Administration office (at the address noted in the ADDITIONAL INFORMATION

section), within 60 days (or, if the claim for benefits is based on your disability, 180 days)

21

after you receive the notice denying your initial claim. If you do not submit your appeal by

this deadline, you will lose the opportunity to make an appeal and you may lose the right to

bring a lawsuit challenging the denial of benefits.

In connection with your appeal, you may submit written comments, documents, records, or

other information relating to your claim. Upon request, the Plan Administrator will provide

you with reasonable access to and copies of documents, records, and other information

relevant to your claim for benefits. However, certain documents, records, and other

information may not be available to you (such as information protected by attorney-client

privilege).

Generally, you will receive a response within 60 days (or, in the case of a disability claim,

45 days) after the Plan Administrator receives your appeal. The Plan Administrator may

notify you in writing before the end of the normal 60-day review period that it needs an

additional 60 days (or, in the case of a disability claim, 45 days) to review your claim

because of special circumstances. That notification will indicate the special circumstances

requiring the extension (such as not receiving required information) and when the Plan

Administrator expects to be able to respond to your claim. If you do not receive a response

within the applicable time period, please contact the Plan Administrator.

The Plan Administrator will consider your appeal, taking into account all comments,

documents, records, and other information submitted, including information not submitted

or considered in the initial decision on your claim. Any decision made by the Plan

Administrator on appeal will be final, conclusive, and binding.

Information Provided if Appeal is Denied

If your appeal is denied in whole or in part, you will receive a written response from the

Plan Administrator. The Plan Administrator’s response will include the following

information:

The specific reasons for the denial;

Reference to the specific plan provisions upon which the denial was based;

A statement that, upon request, you or your authorized representative is entitled

to receive, free of charge, reasonable access to and copies of documents, records,

and other information relevant to your claim for benefits. However, certain

documents, records, and other information may not be available to you (such as

information protected by attorney-client privilege); and

A statement that you have a right to bring a civil action under ERISA following

the adverse determination on your appeal.

If the Plan Administrator’s response does not include all of this information, please contact

the Plan Administrator and request the missing information.

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All decisions made by the Plan Administrator under this benefits claims procedure are

final, conclusive, and binding, and there shall be no further right of appeal.

Legal Proceedings

No legal action may be commenced prior to the completion of the benefit claims

procedures described in this section. In addition, no legal action may be commenced after

the later of

i. 180 days after receiving the written response of the Plan Administrator

to an appeal, or

ii. 365 days after an applicant's original application for a benefit.

You (or your spouse, contingent annuitant, alternate payee, or beneficiary) may have a

right to bring a lawsuit under ERISA, challenging the denial of an appeal of your claim for

benefits. If you do not fully utilize the claims procedures outlined previously, including the

right to appeal the initial denial of your claim, the Plan Administrator expects to assert that

any lawsuit you file attempting to recover on your claims for benefits should be dismissed

because you have not fully exhausted the available administrative remedies. A number of

courts have ruled that lawsuits brought by participants or beneficiaries seeking plan

benefits will be dismissed in these circumstances. You should discuss this point with your

legal advisor because there are differences in how courts address this issue under various

circumstances.

PLAN CONTINUATION

THUMS expects and intends to continue the Plan, but reserves the right to modify,

suspend, change, or terminate the Plan at any time in its sole discretion. Any amendment

to the Plan will be effected through a resolution adopted by, or the unanimous consent of,

the board of directors of THUMS or, in certain circumstances, by the Plan Administrator.

THUM’s decision to modify, suspend, change, or terminate the Plan may be caused by

changes in federal or state laws governing retirement benefits, the requirements of the

Internal Revenue Code or ERISA, or for any other reason. A Plan change may transfer

Plan assets and debts to another plan, or split the Plan into two or more parts. If THUMS

amends or terminates the Plan, it may or may not set up a different plan with similar or

identical benefits. If material changes that affect Plan participants are made in the future,

you will be notified.

Oral representations or promises will not be binding on the Plan. You should not rely on

any oral description of the Plan because the written terms of the Plan document will always

govern.

If the Plan is terminated, or if there is a partial termination of the Plan that affects you, you

will have a Vested right to your accrued benefit under the Plan. The amount of your

benefit, if any, will depend on the Plan’s assets, the terms of the Plan, and the benefit

guarantee of the Pension Benefit Guaranty Corporation (PBGC). Plan assets will be shared

among participants and beneficiaries according to the provisions of ERISA. If the Plan is

23

fully funded, you will receive your full benefits. Once your benefit amount has been

determined, it may be paid in the form of one or more cash payments to you, or in the form

of an insurance company annuity contract that will pay you a monthly income. The exact

form of payment may be set by law or, if there is a choice, the Plan Administrator will

decide on the type and timing of benefit payments.

After all benefits have been paid, and legal requirements met, the Plan will turn over any

remaining Plan assets to THUMS.

BENEFIT INSURANCE

Your pension benefits under this plan are insured by the Pension Benefit Guaranty

Corporation (PBGC), a federal insurance agency. If the plan terminates (ends) without

enough money to pay all benefits, the PBGC will step in to pay pension benefits. Most

people receive all of the pension benefits they would have received under their plan, but

some people may lose certain benefits.

The PBGC guarantee generally covers: (1) normal and early retirement benefits; (2)

disability benefits if you become disabled before the plan terminates; and (3) certain

benefits for your survivors.

The PBGC guarantee generally does not cover: (1) benefits greater than the maximum

guaranteed amount set by law for the year in which the plan terminates; (2) some or all of

benefit increases and new benefits based on plan provisions that have been in place for

fewer than 5 years at the time the plan terminates; (3) benefits that are not vested because

you have not worked long enough for the company; (4) benefits for which you have not

met all of the requirements at the time the plan terminates; (5) certain early retirement

payments (such as supplemental benefits that stop when you become eligible for Social

Security) that result in an early retirement monthly benefit greater than your monthly

benefit at the plan’s normal retirement age; and (6) non-pension benefits, such as health

insurance, life insurance, certain death benefits, vacation pay, and severance pay.

24

Even if certain of your benefits are not guaranteed, you still may receive some of those

benefits from the PBGC depending on how much money your plan has and on how much

the PBGC collects from employers.

For more information about the PBGC and the benefits it guarantees, ask your plan

administrator or contact the PBGC’s Customer Contact Center, PBGC, PO Box 151750;

Alexandria, VA 22315-17506 or call 800.400.7242 OR 202.326.4000. TTY/TDD users

may call the federal relay service toll-free at 800.877.8339 and ask to be connected to

800.400.7242.

Additional information about the PBGC’s pension insurance program is available through

the PBGC’s website on the Internet at http://www.pbgc.gov.

ADDITIONAL INFORMATION

All Contributions to this Plan are made by THUMS and are actuarially determined. Plan

funds are invested by the Plan Trustee. Benefits are paid at the direction of the Plan

Administrator.

The descriptions of Plan provisions contained in this Summary are applicable, unless

otherwise indicated, as of the date shown on the cover page. They are not necessarily

indicative of the terms of the Plan on other dates. Should you have questions regarding the

design of the Plan applicable to other periods of time, contact the CRC Pension Service

Center.

This is only a Summary of the Plan. The Plan is administered according to the Plan

document. If there is any conflict between this Summary and the legal document, the Plan

document will apply.

http://www.pbgc.gov/

25

Here is some information about the Plan and the persons who have assumed the

responsibility for its operation:

Name of Plan THUMS Long Beach Company

Pension Plan

Employer Identification Number 95-2381774

Plan Number 002

Plan Year Ends December 31

Plan Administrator and

Named Fiduciary

California Resources Retirement Investment

and Administrative Committee

9200 Oakdale Avenue, Suite 900

Los Angeles, CA 91311

888.848.4754

Plan Administration

Qualified Domestic Relations Order

Administration

CRC Pension Service Center

PO Box 6300

Newport Beach, CA 92658-6300

888.909.4156

CRC Qualified Order Team

PO Box 2900

Long Beach, CA 90801-2900

888.848.4754

Plan Sponsor and Address for

Service of Legal Process

THUMS Long Beach Company 111 W. Ocean Blvd., Suite 800

Long Beach CA 90802

888.848.4754

Plan Trustee Bank of New York Mellon Trust Company,

NA

c/o BNY Mellon Asset Servicing

135 Santilli Highway

Everett, MA 02149

Type of Plan Under ERISA, this Plan is considered a

defined benefit plan

Legal process may also be served upon the Plan Trustee.

26

YOUR ERISA RIGHTS

THUMS is not required to provide the benefits described in this Summary. However, if it

does provide them, it must meet certain legal requirements. You must be fully informed of

the benefits being provided, and your rights regarding these benefits under ERISA. ERISA

was signed into law to provide additional protection for workers covered under any benefit

plan. Your rights, as specified by law, are described as follows:

In addition to these pages describing your benefits, you will receive, where applicable, a

summary of the Plan's annual financial reports. The Plan Administrator is required by law

to furnish each participant with a copy of this summary annual report. You have the right

to examine all documents relating to your Plan (such as insurance contracts, trust

agreements, and Plan texts). They are available for examination without charge from the

Plan Administrator, and they are the governing documents in all cases. You can receive a

copy of any of these documents for a reasonable charge by sending a written request to the

Plan Administration address. If you should request any documents in writing from the Plan

Administrator and not receive them within 30 days (unless the delay is beyond the control

of the Plan Administrator), you have the right to file suit in a federal court. THUMS may

be required to pay a fine of up to $110 a day for each day of delay.

You also have the right to expect that the persons who are responsible for the operation of

the Plan act prudently and in the best interests of all Plan participants. These persons are

called fiduciaries. It is a THUMS policy that the Plan’s fiduciaries act in the best interest

of the Plan’s participants, and they will continue to do so. However, if a fiduciary violates

the requirements of ERISA, he or she may be removed and required to pay any losses to

the Plan caused by his or her imprudence.

If your application for a Plan benefit is denied, in whole or in part, you must receive a

written explanation of the reason for the denial. You have the right to have your claim

reviewed and reconsidered. If your benefit is denied improperly, you have the right to file

suit in a federal or state court. If Plan fiduciaries are misusing funds, you have the right to

file suit in a federal court, or request assistance from the United States Department of

Labor. THUMS will not (and cannot) dismiss you or discriminate against you to prevent

you from obtaining Plan benefits, or for exercising any of your rights under ERISA.

If you file suit in a court, the court will decide who will pay the court costs and legal fees.

If you are successful, the court may order the person you have sued to pay these costs and

fees. If you lose, the court may order you to pay these costs and fees, for example, if it

finds your claim is frivolous. If you need additional information, or have any questions

about your benefits, contact the Plan Administrator at the Plan Administration address. If

you have any questions about this statement or your rights under ERISA, contact the

nearest area office of the United States Pension and Welfare Benefits Administration,

United States Department of Labor, listed in your telephone directory, or the Division of

Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, United

States Department of Labor, 200 Constitution Avenue NW, Washington, D.C. 20210.

27

Once each year, you may make a written request to the Plan Administrator at the Plan

Administration address for a statement telling you whether you have a Vested benefit and,

if so, what your benefit payments would be at normal retirement age if you stopped

working under the Plan now. If you do not have a Vested benefit, the statement will tell

you how many more years you will have to work to become Vested in your benefit. You

may not request this information more than once each year.

Documents

THUMS LONG BEACH COMPANY PENSION PLAN - … Publication Info/Summary Plan...The THUMS Long Beach Company Pension Plan (the “Plan”) is designed to provide income for your retirement