Chevron Press Release - Appeals Court Rules In Chevron's Favor in Gulf Pension Fund Case
SAN FRANCISCO, Oct. 27, 1994 -- A federal appeals court has held that former Gulf Oil employees are not entitled to the Chevron Corporation Retirement Plan "surplus" attributable to a former Gulf pension plan.
The former plan was part of the Gulf Pension Plan, which was combined with the Chevron Corporation Retirement Plan in 1986, after Gulf's merger with Chevron.
The former Gulf employees had argued that they were owed the "surplus" from the former plan, which they estimated at more than $600 million.
The Oct. 21 ruling by the U.S. Court of Appeals for the Fifth Circuit in New Orleans said distributing the "surplus" would result in a "windfall" for the former Gulf employees. The court also said distributing the "surplus" to the employees would discourage major employers such as Chevron from fully funding pension plans, to the detriment of present and future participants in the Chevron plan, and their beneficiaries.
Updated: October 1994