Retirement Benefits
"Company" Defined
Throughout this section, unless otherwise stated, reference to "Company" or "PG&E" means Pacific Gas and Electric Company, PG&E Corporation, and other affiliated subsidiaries, collectively. The plans and benefits described in this section are applicable to employees of these entities only to the extent that an employer is a plan sponsor or a participating employer with respect to the described plans or programs and such employees meet the eligibility requirements of the plans or programs.
The Company offers four benefit plans that help you plan and save for your financial security after your retirement:
  • The Pacific Gas and Electric Company Retirement Plan (the "Retirement Plan")
  • The PG&E Corporation Retirement Savings Plan for Union-Represented Employees (the "Retirement Savings Plan," or "401(k) Plan")
  • The Pacific Gas and Electric Company Health Care Plan for Retirees and Surviving Dependents
  • The Pacific Gas and Electric Company Postretirement Life Insurance Plan
The 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; and
  • A Cash Balance Pension formula.
To find out which pension benefit formula applies to you, see the Retirement Plan at a Glance section. For a detailed description of each formula, see the Retirement —Final Pay Pension Benefit and the Retirement — Cash Balance Pension Benefit sections.
The Retirement Savings Plan, sometimes referred to as the 401(k) plan, is a "defined contribution" plan, which means eligible participants receive a benefit based on contributions made to the plan. A participant's benefit varies with the amount of personal and Company contributions made to the plan as well as investment gains and losses on these contributions. The Retirement Savings Plan offers two company matching benefits — a company match of $0.60 per dollar on your contributions of up to 3% or 6% of pay, depending on years of service, if you are earning a benefit under the Final Pay Pension formula, or a higher 401(k) company match benefit of $0.75 per dollar on your contributions up to 8% of pay if you are participating in the Cash Balance Pension. To find out more about your Retirement Savings Plan benefits, please refer to the Retirement Savings Plan section.
The Health Care Plan for Retirees and Surviving Dependents provides medical, mental health/substance abuse treatment and prescription drug coverage for eligible retirees and their spouses/registered domestic partners and/or dependents. A detailed summary description of the Retiree Medical Savings Account (RMSA) you earn while you are working is included in this section. Additional information on RMSA and retiree medical coverage is available in the Summary of Benefits Handbook for Retirees and Surviving Spouses on the www.mypgebenefits.com Internet site.
The Postretirement Life Insurance Plan provides eligible retirees with a specific amount of life insurance coverage. A summary description of the Postretirement Life Insurance coverage is included in this section. Additional information is also available in the Summary of Benefits Handbook for Retirees and Surviving Spouses on the www.mypgebenefits.com Internet site.
The Postretirement Life Insurance Plan provides eligible retirees with a specific amount of life insurance coverage. A summary description of the Retirement Life Insurance coverage is included in this section. For more information about life insurance and administrative information, see the Life and Accident section of the Summary of Benefits Handbook. Additional information is also available in the Summary of Benefits Handbook for Retirees and Surviving Spouses in the My Benefit section of the PG&E@Work for Me intranet.
The Company also makes contributions towards your future Social Security retirement benefits. These contributions are in addition to the deductions for Social Security taxes taken out of your paycheck. Go to www.ssa.gov for more information about Social Security benefits.
You should plan carefully for your financial security after you retire. In addition to Social Security and the two retirement income plans available through the Company, your individual savings are a vital component in ensuring the lifestyle you desire when you retire. You may want to consult with a financial planner to develop an individual savings plan that is most appropriate for your future needs.