Schlumberger Retirement Plan Overview
Planning for retirement is one of the most important steps in securing your financial future. If you’re a Schlumberger employee, understanding your benefits and utilizing them effectively can make all the difference in ensuring a comfortable retirement.
*We are an independent financial planning firm and are not affiliated with BP, Chevron, CITGO, ConocoPhillips, ExxonMobil, Halliburton, Shell, or Schlumberger. We help former employees of these companies with retirement planning and investment strategies.
Schlumberger offers a robust suite of retirement benefits aimed at helping employees build a secure financial foundation for the future. Here’s a closer look at the key components:
Defined Contribution Plans
Schlumberger provides access to plans like 401(k), 403(b), and 457 plans. These plans allow employees to contribute a portion of their pre-tax income toward retirement savings, with the potential for employer-matching contributions.
Defined Benefit Plan (Pension)
This traditional pension plan offers guaranteed benefits based on factors such as salary history and years of service. It provides financial security by ensuring a steady income stream during retirement.
Schlumberger Limited Supplementary Benefit Plan
This plan is specifically designed for key employees whose benefits under the Qualified Plans may be limited. It helps restore and optimize retirement savings for those eligible.
Schlumberger Limited Restoration Savings Plan
This plan offers non-elective contributions to help employees maximize their retirement savings, further ensuring financial stability post-retirement.
Schlumberger Defined Contribution Plans
The Schlumberger Defined Contribution Plan refers to the company’s retirement savings plans, primarily the Schlumberger Limited Savings and Profit Sharing Plan and the Schlumberger Savings and Profit Sharing Plan for US Taxpayers Employed Abroad. These are designed to let employees direct a portion of their income—often with a matching component from the company—into dedicated retirement accounts where investments can grow over time. Unlike a defined benefit plan, the contribution amount is set, but the final account value depends on investment performance.
Account Structure
Each employee has:
- An Employee Contribution Account (for personal and rollover contributions, plus earnings)
- An Employer Contribution Account (company matches, profit sharing, retirement contributions, plus earnings)
Investment Options
Participants can choose from a variety of investment funds:
- U.S. and global equity funds
- Target date (lifecycle) funds
- Bond/Fixed income funds
- Self-directed brokerage account options
For those who do not make an investment election, a qualified default investment fund (often a target date fund) is used.
Vesting
Employees are always 100% vested in their own contributions.
Company matching and other employer contributions typically vest over time—often reaching 100% after 4 years of service.
Non-elective retirement contributions usually vest after three years of service.
Key Features
401(k) Contributions: Employees can make pre-tax or Roth after-tax contributions through payroll deductions, up to annual IRS limits ($23,000 for 2024, with extra “catch-up” contributions for those age 50+).
Profit Sharing: The company may also contribute additional amounts based on its profitability, in the form of profit-sharing deposits.
Employer Contributions: Schlumberger matches employee contributions up to certain thresholds—for example, 100% matching on the first 6% of eligible pay contributed, plus an additional 50% match on the next 4% after 6%. Non-elective company retirement contributions (often 2% of pay) and annual “true-up” matches may also apply.
Important Considerations
Defined Contribution Structure: The amount saved and investment choices directly impact the size of each employee’s retirement nest egg.
Tax Advantages: Pre-tax and Roth options offer different tax planning strategies for retirement income.
Company True-Up: Annual reviews ensure employees who contributed less early in the year, but reached the maximum later, get the full eligible match.
Automatic Participation & Default Funds: Employees who do not actively enroll or elect investments are covered by default settings until they update their choices
Qualified Domestic Relations Orders (QDROs): Accounts under these plans can be divided for divorce settlements by QDRO, allowing for direct transfers to an ex-spouse or dependent’s retirement account.
Schlumberger Defined Benefit Plan (Pension)
The Schlumberger Technology Corporation Pension Plan is a traditional defined benefit pension plan, offering eligible employees a secure, predictable monthly retirement income. Unlike defined contribution plans, this plan’s benefit amount is based on specific criteria and is not subject to investment returns.
Eligibility and Vesting
Eligibility: Employees become eligible to participate once they satisfy specific service requirements, such as reaching a certain number of years with Schlumberger.
Vesting: Vesting schedules dictate when an employee fully owns the accrued benefit. Only vested employees are guaranteed pension payments at retirement.
Benefits Provided
Lifetime Monthly Payments: Ensures steady income throughout retirement.
Death Benefits: In many cases, survivor or spousal death benefits are available, providing financial protection to beneficiaries in the case of the retiree’s passing.
Early Retirement Provisions: Benefits may be adjusted if an employee retires before the normal retirement age.
Plan Funding
Employer-Funded: The plan is funded primarily by Schlumberger, which is responsible for maintaining the financial health of the plan and meeting its future obligations to retirees.
Security: Because the employer funds and guarantees the benefit, retirees do not face the investment risk found in defined contribution plans.
Defined Benefit vs. Defined Contribution
Defined Benefit (e.g., the Schlumberger Pension Plan):
Guarantees a specific monthly payment at retirement.
Benefit is calculated using a formula that includes salary history and years of service.
The employer bears the investment and funding risk.
Defined Contribution (e.g., 401(k)):
Employees and/or employers contribute to individual accounts.
The retirement outcome depends on both contributions and investment performance.
The employee bears the investment risk.
How the Plan Works
Formula-Based Benefit: The monthly pension amount is carefully calculated using a formula that typically considers years of credited service and compensation earned during employment.
Predictable Retirement Income: Upon reaching normal retirement age, employees receive a set monthly payment for the remainder of their lifetime.
No Individual Accounts: Unlike 401(k)s, the plan does not maintain separate investment accounts for each employee. Instead, participants accrue “accrued benefits” to be paid over time.
Schlumberger Limited Supplementary Benefit Plan
For certain key employees whose qualified plan benefits may be limited by IRS rules (such as caps on pensionable salary or total payout), the Schlumberger Limited Supplementary Benefit Plan provides additional, non-qualified retirement benefits. This supplementary plan is designed to “restore” benefits above IRS maximums, ensuring select employees receive the intended level of retirement income. Eligibility, benefit calculation, and vesting are defined within this distinct plan, which is administered by a committee and can be amended by the company.
Key Takeaways
Reliable Retirement Income: Eligible Schlumberger employees can count on a predictable monthly pension for life.
Distinct from 401(k)s: Defined benefit plans eliminate market uncertainty over retirement payouts.
Supplements for Key Staff: The Supplementary Benefit Plan addresses IRS-imposed benefit limits for highly compensated employees, restoring intended retirement benefits
Additional Benefits
The Schlumberger Employee Stock Purchase Plan (ESPP) empowers eligible employees to become shareholders in Schlumberger Limited by purchasing common stock at a discount. This program is designed to help employees build equity and share in the company’s long-term success.
A Schlumberger Restricted Stock Unit (RSU) is a type of employee compensation offered under the company’s Omnibus Stock Incentive Plan. With RSUs, employees are promised shares of Schlumberger stock—or, in some cases, the cash equivalent—that will be delivered on a future date if certain conditions are met. The primary condition is typically continued employment through a set vesting period, often three years. Until vesting occurs, RSUs hold no tangible value and cannot be sold or transferred.
A Schlumberger Incentive Stock Option (ISO) is an employee benefit that allows eligible Schlumberger staff to purchase company shares at a predetermined exercise price within a specified time window. Part of the wider 2017 Omnibus Stock Incentive Plan, these options are structured to reward employees, encouraging both long-term commitment and alignment with Schlumberger’s success.
Maximize Your Schlumberger Retirement Benefits Today
Preparing for retirement is about more than just saving; it’s about making the most of what’s available to you. Whether you’re nearing retirement or already enjoying it, we’re here to ensure you’re getting the most out of your Schlumberger benefits.
Are you ready to secure your future? Schedule a consultation and take the first step toward achieving your retirement goals.
Disclosures: Saxon Financial Group is not affiliated with or endorsed by Schlumberger. Corporate benefits may change at any time. Be sure to consult with human resources and review your plan summary before making a decision.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. This information is provided for educational purposes only and does not constitute tax advice.
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