This
is
the fourth in a series of Benefits Q&A documents. Past documents can be
found on ION under the “In” icon, select
More Internal
News
:
|
·
|
Sept.
11 – U.S. Pension Update
|
|
·
|
Aug.
17 – Lyondell-Basell Merger
Q&A
|
|
·
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July
27 – Pension and 401(k) Information
|
Please
continue to submit your general transaction related questions to the Questions
email box, and we will periodically issue Q&A documents to help answer them.
Questions regarding your own personal pension or 401(k) plans should be directed
to Benefits Administration.
U.S.
Employees: Benefits-Related Questions
Q.
I am not totally vested in the 401(k) plan. When the company is sold will
I lose the company match?
A.
No. Any match monies earned as of the close date will remain in the plan
–
however, you will still need to meet the vesting requirements going
forward. Basell and Lyondell have agreed that your Lyondell service will
count toward vesting and eligibility in any Lyondell or Basell plans in which
you may participate in the future. So, for example, if you have two years
of service as of the close date and work for the company for a year after
the
close date, you would then have three years of service and would be
vested.
Q.
Does this transaction in any way change the 401(k) vesting period? In
other words, does the vesting period remain a 3-year cliff or does it
accelerate the vesting?
A.
At this point, there are no plans to change the vesting period in the 401(k)
plans. But remember that Basell and Lyondell have agreed that your
Lyondell service will count toward vesting and eligibility in any Lyondell
or
Basell plans in which you may participate in the future, so you will not
lose
any service with Lyondell for 401(k) vesting purposes.
Q.
When Equistar was formed, Millennium agreed that as long as the employee
remained an Equistar employee, the Equistar salary would be used in the
Millennium pension calculation. Is there any change of control clause that
keeps this intact even if the Equistar name is changed?
A.
No. The merger agreement does not address specific plan terms. We do know
that Lyondell and Basell have agreed that through Dec. 31, 2008, Lyondell
benefit opportunities will, in the aggregate, be materially no less favorable
than the Lyondell benefits immediately prior to the close, including this
provisions in the Millennium pension plan. As discussions take place and
as decisions are made for the benefits after that date, we will not only
communicate well in advance of any changes, but also confirm where no changes
are planned.
Q.
Once the deal closes, will the 401(k) matching be automatically vested for
those
with less than 3 years service?
A.
No. The merger agreement does not address specific plan terms. However,
Basell and Lyondell have agreed that your past Lyondell service will count
toward vesting and eligibility in any Lyondell or Basell plans in which you
may
participate in the future.
Q.
Will we continue using Fidelity as our fund manager?
A.
Fidelity will continue to be the fund manager through the end of 2008. We
have not had any detailed discussions with Basell on the future of any of
our
current benefit vendors. As these discussions take place and as decisions
are made, we will not only communicate well in advance of any changes, but
also
confirm where no changes are planned.
Q.
What are the plans for continuing with the employee assistance for MBAs?
How are
those already in an approved MBA program affected versus those who have not
started but plan on obtaining their MBA in the future?
A.
Anyone currently in an approved MBA program can remain in the program until
they
are notified otherwise.
Q.
When the Basell merger is completed, I understand that money accumulated
in the
retirement account is frozen. Will we still accumulate interest on the
money? Is it possible that the company or owner can remove or use
this money for other ventures?
A.
There is no provision to freeze any retirement benefit or account as part
of the
merger. The merger agreement states that benefits will remain noless favorable
in the aggregate until at least the end of 2008, including benefits earned
in
the pension plans. None of the Lyondell pension plans provide interest
accumulation currently and the merger will not change that provision.
Since the pension plans are qualified plans under ERISA, the money to fund
those
benefits is held in a trust that may only be used to pay benefits to the
participants.
Q.
When ARCO Chemical Co. bought Olin Chemical Co., the
employees
’
accrued pension was to be increased
by 3 percent per year as long as they remained employed by ARCO. How will
the
pending merger affect those employees
’
Olin
pension?
A.
Olin has not informed us of any changes to their pension plans as a result
of
this transaction. We will notify all affected employees if Olin decides to
do
so.
Q.
It appears that our benefits structure for next year will not be impacted
by the
merger since we will soon have to make our benefits selections. Is this a
correct assumption? Going forward, what would we expect for our benefits
structure to look like?
A.
Your assumption is correct for the 2008 annual enrollment that will take
place
in November. As indicated previously, we do not know what benefits will be
in place for the new company after the end of 2008. As discussions take
place and as decisions are made for the benefits after that date, we will
not
only communicate well in advance of any changes, but also confirm where no
changes are planned.
Q.
As stated previously, employees’ pensions and 401(k) are both “Qualified
Benefits” and employees can not receive those distributions. Can’t those
employees who qualify for Lump Sum distributions in the pension have those
transferred to their 401(k) accounts?
A.
Our previous communication indicated that you cannot receive a pension
distribution
as a result of the
transaction
. Generally, you can only receive a pension
distribution after your employment termination, if you are retirement eligible.
If you are eligible for and elect a lump sum pension distribution, you can
roll
it into another qualified savings vehicle, including 401(k) plans, if the
plan
permits it. Company 401(k) plans currently allow a pension distribution to
be
rolled into your existing 401(k) plan account.
Additional
Information and Where to Find It
In
connection with the solicitation of proxies by Lyondell Chemical Company
(the
"Company") with respect to the meeting of its stockholders regarding the
proposed merger, the Company has filed a definitive proxy statement with
the
Securities and Exchange Commission (the "SEC"). A definitive proxy statement
and
a form of proxy have been mailed to the stockholders of Lyondell. STOCKHOLDERS
OF THE COMPANY ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENT BECAUSE
IT
CONTAINS IMPORTANT INFORMATION. Stockholders may obtain a free-of-charge
copy of
the proxy statement and other relevant documents filed with the SEC from
the
SEC's web site at http://www.sec.gov. Stockholders may also obtain a
free-of-charge copy of the proxy statement and other relevant documents by
directing a request by mail to Lyondell Chemical Company, Investor Relations,
1221 McKinney Street, Suite 700, Houston, Texas 77010, telephone (713) 309-4590,
or from the Company's website at www.lyondell.com.
The
Company and certain of its directors and executive officers may, under the
rules
of the SEC, be deemed to be "participants" in the solicitation of proxies
from
its stockholders in connection with the proposed merger. Information concerning
the interests of the persons who may be "participants" in the solicitation
is
set forth in the Company's definitive proxy statement and annual reports
on Form
10-K (including any amendments thereto), previously filed with the
SEC.