Employee Benefits

3 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

Employee Benefits

Employee Benefits

Chevron 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 2024 and 2023 are as follows:

	Three Months Ended March 31
	2024		2023
	(Millions of dollars)
Pension Benefits
United States
Service cost	$	89	$	86
Interest cost	116		112
Expected return on plan assets	(149)		(140)
Amortization of prior service costs (credits)	1		1
Amortization of actuarial losses (gains)	61		51
Settlement losses	—		—
Total United States	118		110
International
Service cost	14		15
Interest cost	47		47
Expected return on plan assets	(50)		(51)
Amortization of prior service costs (credits)	3		2
Amortization of actuarial losses (gains)	5		2
Settlement losses	—		—
Acquisitions / (divestitures)	—		(2)
Total International	19		13
Net Periodic Pension Benefit Costs	$	137	$	123
Other Benefits*
Service cost	$	8	$	8
Interest cost	25		24
Amortization of prior service costs (credits)	(6)		(6)
Amortization of actuarial losses (gains)	(4)		(5)
Net Periodic Other Benefit Costs	$	23	$	21

* 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 March 31, 2024, a total of $256 million was contributed to employee pension plans (including $234 million to the U.S. 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 three months of 2024, the company contributed $45 million to its OPEB plans.