Unocal Pays For Severance Protections With Pension Surplus

December 5, 2000 ( - Unocal has approved an "enhanced severance program" to help the company retain and continue to attract employees in a competitive hiring environment - funding most of the costs of the enhancements from the company's retirement plan surplus.

The program was not designed or announced as part of any contemplated merger or acquisition activities.

The change-of-control program provides for:

  • immediate vesting of accrued benefits and/or accounts of all covered employees under the company’s retirement and savings plans
  • an immediate cash payment of bonuses to such employees under its annual incentive compensations plans

In addition, employees who are involuntarily terminated or resign under certain conditions within two years after the change of control will receive additional benefits, including:

  • continuation of base pay for four months
  • subsidized medical and dental benefits for 18 months
  • additional credit for service and age under the company’s retirement plans for those with at least 5 years of service
  • immediate distribution or rollover of total retirement benefits, at the employee’s election
  • a cash payment, in most circumstances.

Additional information on the enhanced severance plan is outlined in a Form 8-K report filed with the U.S. Securities and Exchange Commission, available on Unocal’s Web site, .