Retirement Benefits
"Company" Defined
Throughout this section, unless otherwise stated, reference to "Company" or "PG&E" means Pacific Gas and Electric Company. The plans and benefits described in this handbook are also applicable to employees who terminate at or after age 55 ("retirees") of PG&E Corporation and its designated subsidiaries, but only to the extent that such entities are participating employers with respect to the described plans or programs and such retirees meet the eligibility requirements of the plans or programs.
The Company offers three retirement income benefit plans that help employees plan and save for financial security after retirement. As a retiree or a survivor, you may be receiving or entitled to receive benefits from one or more of these plans:
  • The Pacific Gas and Electric Company Retirement Plan
  • The PG&E Corporation Retirement Savings Plan (for Management and Administrative & Technical Employees)
  • The PG&E Corporation Retirement Savings Plan for Union Represented Employees
The Retirement Plan (officially known as the Pacific Gas and Electric Company Retirement Plan) is a "defined benefit" plan, which means eligible participants receive a fixed pension benefit that is based on a defined formula reflecting credited service and pay. The Retirement Plan has two pension benefit formulas:
  • A Final Pay Pension formula that applies to retirees who were participants in the Retirement Plan prior to January 1, 2013; and
  • A Cash Balance Pension that applies to retirees who were hired or rehired on or after January 1, 2013, or who elected the Cash Balance Pension during the one-time pension choice period offered in 2013.
Both the Final Pay Pension and the Cash Balance Pension pay a fixed monthly pension benefit in retirement. The Cash Balance Pension also allows retirees to elect to receive the benefit in a single lump sum payout. A summary of the Retirement Plan is included in this section.
The Retirement Savings Plans are two separate plans. One is officially known as the PG&E Corporation Retirement Savings Plan, which covers Management and Administrative and Technical employees. For union represented employees, the Plan is officially known as the PG&E Corporation Retirement Savings Plan for Union Represented Employees. Assets from the former Pacific Gas and Electric Company Savings Fund Plan were rolled into the respective Plan. These plans are sometimes referred to as 401(k) plans, and are "defined contribution" plans. This means that eligible participants receive a benefit based on contributions made to the Plan while employed by the Company. A participant's benefit varies with the amount of personal and Company contributions made to the Plan while employed as well as investment gains and losses on these contributions. Employees may continue to invest their Retirement Savings Plan account during retirement. To find out more about your Retirement Savings Plan benefits, please refer to the Retirement Savings Plan section, or contact Fidelity at 877-PGE-401K (877-743-4015) or by going to the Fidelity website at www.401k.com.
The Company also made contributions based on your pay towards your Social Security retirement benefits. These contributions were in addition to the deductions for Social Security taxes taken out of your paycheck.
Additional Information
In addition to the information in this section, there is also important information about your benefits in other parts of this Handbook. Be sure to review the About This Handbook section, the Benefits at a Glance section, the What to Do… section, and the Rules, Regulations & Administrative Information section.