Employee Benefits

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Employee Benefits

Employee BenefitsChevron has defined benefit pension plans for many employees. The company typically prefunds defined benefit plans as required by local regulations or in certain situations where prefunding provides economic advantages. In the United States, all qualified plans are subject to the Employee Retirement Income Security Act minimum funding standard. The company does not typically fund U.S. nonqualified pension plans that are not subject to funding requirements under laws and regulations because contributions to these pension plans may be less economic and investment returns may be less attractive than the company’s other investment alternatives.

The company also sponsors other postretirement employee benefit (OPEB) plans that provide medical and dental benefits, as well as life insurance for some active and qualifying retired employees. The plans are unfunded, and the company and the retirees share the costs. For the company’s main U.S. medical plan, the increase to the pre-Medicare company contribution for retiree medical coverage is limited to no more than four percent each year. Certain life insurance benefits are paid by the company.

The components of net periodic benefit costs for 2021 and 2020 are as follows:

	Three Months Ended September 30					Nine Months Ended September 30
	2021		2020			2021		2020
	(Millions of dollars)				(Millions of dollars)
Pension Benefits
United States
Service cost	$	112	$	124		$	337	$	373
Interest cost	56		89			175		265
Expected return on plan assets	(145)		(163)			(439)		(488)
Amortization of prior service costs (credits)	—		—			1		1
Amortization of actuarial losses (gains)	68		96			245		288
Settlement losses	108		184			576		304
Total United States	199		330			895		743
International
Service cost	27		33			98		97
Interest cost	35		44			104		131
Expected return on plan assets	(42)		(52)			(131)		(155)
Amortization of prior service costs (credits)	2		2			6		7
Amortization of actuarial losses (gains)	11		12			35		33
Settlement losses	(1)		—			(1)		—
Total International	32		39			111		113
Net Periodic Pension Benefit Costs	$	231	$	369		$	1,006	$	856
Other Benefits*
Service cost	$	11	$	9		$	32	$	28
Interest cost	15		18			41		53
Amortization of prior service costs (credits)	(7)		(7)			(20)		(21)
Amortization of actuarial losses (gains)	3		1			11		3
Net Periodic Other Benefit Costs	$	22	$	21		$	64	$	63

* Includes costs for U.S. and international OPEB plans. Obligations for plans outside the United States are not significant relative to the company’s total OPEB obligation.

Through September 30, 2021, a total of $1.4 billion was contributed to employee pension plans (including $1.3 billion to the U.S. plans). Total contributions for the full year are currently estimated to be up to $1.75 billion ($1.55 billion for the U.S. plans and $200 million for the international plans). Contribution amounts are dependent upon plan investment returns, changes in pension obligations, regulatory requirements and other economic factors. Additional funding may ultimately be required if investment returns are insufficient to offset increases in plan obligations.

During the first nine months of 2021, the company contributed $107 million to its OPEB plans. The company anticipates contributing approximately $47 million during the remainder of 2021.