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These reports shows that the average oil and gas company continues to provide valuable retirement programs with many committed to defined benefit plans despite headlines in the media. The picture, however, varies greatly depending on the subsector within oil and gas and by company.
Click on each subsector to learn more and download.
Our research finds that the average oil and gas company—and in particular, the average exploration and production (E&P) company—continues to provide valuable retirement programs, with many committed to defined benefit plans despite headlines in the media. The picture, however, varies greatly depending on the subsector within oil and gas and by company. The E&P subsector is highlighted in this report, and its average retirement program remains more valuable than oil and gas industry averages.
The following design trends stand out within the E&P subsector:
Defined benefit plans remain open to new hires for 35% of E&P companies
Hybrid plan designs like cash balance plans remain the most prevalent pension design
Average long-term spend for E&P companies is 11% of pay, ranging from 5% to 16% of pay
E&P companies spend more on retirement than the industry average
Our research finds that the average oil and gas company—and in particular, the average Major Integrated subsector company—continues to provide valuable retirement programs, with many committed to defined benefit plans despite headlines in the media. The picture, however, varies greatly depending on the subsector within oil and gas and by company. The Major Integrated subsector is highlighted in this report, and remains firmly committed to defined benefit pensions. Combined with defined contribution benefits, this subsector has the highest average level of retirement benefits of any oil and gas subsector.
The following design trends stand out within the Major Integrated subsector:
Defined benefit plans remain open to new hires for all major integrated companies
Three of the five major integrated companies have hybrid plan designs like cash balance plans
Average long-term spend for major integrated companies is 14.1% of pay with less than a 2% range from the highest to the lowest company
Major integrated companies spend more on retirement than any other oil and gas subsector
Our research finds that the average oil and gas company—and, in particular, the average refining company—continues to provide valuable retirement programs, with many committed to defined benefit plans despite headlines in the media. The picture, however, varies greatly depending on the subsector within oil and gas and by company. The Refining subsector is highlighted in this report. The average retirement program in the Refining subsector remains more valuable than oil and gas averages.
The following design trends stand out within the Refining subsector:
Defined benefit plans remain open to new hires for most refining companies
Hybrid plan designs like cash balance plans remain the most prevalent pension design
Average long-term spend for refining companies is 11.6% of pay, ranging from 7% to 15% of pay
Refining companies spend more on retirement than the industry average
The E&P Subsector is highlighted in this report and its average retirement program remains more valuable than oil and gas averages. The following design trends stand out within the E&P Subsector:
Defined benefit plans remain open to new hires for 35% of E&P companies
Hybrid plan designs like cash balance plans have become the most prevalent pension design
Average long-term spend for E&P companies is 12% of pay, varying from 5% to 17% of pay
E&P companies spend more on retirement than the industry average
The Major Integrated Subsector highlighted in this report remains firmly committed to defined benefit pensions and, combined with defined contribution benefits, has the highest average level of retirement benefits of any oil and gas subsector. The following design trends stand out within the Major Integrated Subsector:
Defined benefit plans remain open to new hires for all major integrated companies
3 of the 5 Major Integrated companies have hybrid plan designs like cash balance plans
Average long-term spend for Major Integrated companies is 14.1% of pay with less than a 2% range from the highest to the lowest company
Major integrated companies spend more on retirement than any other oil and gas subsector
The Refining Subsector is highlighted in this report and its average retirement program remains more valuable than oil and gas averages. The following design trends stand out within the Refining Subsector:
Defined benefit plans remain open to new hires for most refining companies
Hybrid plan designs like cash balance plans have become the most prevalent pension design
Average long-term spend for Refining companies is 12% of pay, varying from 7% to 15% of pay
Refining companies spend more on retirement than the industry average
In this report, we present data that compares major integrated oil and gas companies to each other. We have also presented high-level information comparing each key subsector within the oil and gas industry, since major integrated oil and gas companies compete for talent with other oil and gas subsectors and operate within multiple subsectors. Our analysis focuses primarily on the following large companies in the Major Integrated Subsector: BP, Chevron, ExxonMobil, Royal Dutch Shell, and Total. The following design trends stand out within the Major Integrated Subsector:
All major integrated oil and gas companies have a defined benefit plan open to new hires
3 of the 5 major integrated companies have hybrid plan designs like cash balance plans
Average long-term spend for major integrated companies is 13.3% of pay with less than a 2% range from the highest to the lowest company
Major integrated oil and gas companies spend more on retirement than any other industry subsector
In this report, we present data that compares large refining companies to each other. We have alsopresented high-level information comparing each key subsector within the oil and gas industry, since theRefining Subsector competes for talent with other subsectors and some companies operate withinmultiple subsectors. Our analysis focuses primarily on the following large companies in the Refining Subsector: Alon USA Energy, Inc., Citgo Petroleum Corporation, HollyFrontier Corporation, Marathon Petroleum Corporation, Phillips 66, Tesoro Corporation, Valero Energy Corporation, and Western Refining, Inc.
Defined benefit plans remain open to new hires for most refining companies
Hybrid plan designs like cash balance plans have become the most prevalent pension design
Average long-term spend for Refining companies is 10% of pay, but varies from 6% to 14% of pay
Refining companies spend more on retirement than the industry average but there is wide variance
