Employee Resources for Personal Financial Planning

Retirement Savings Plan

Helping employees meet their goals for future financial security is important to us. All El Paso employees have access to a variety of retirement programs including a 401(k) plan and a cash balance plan on their first day of employment.

El Paso’s 401(k) plan offers 17 investment fund options. The company matches $.75 for every $1.00 of employee contributions, up to 6 percent of eligible pay. Employees are also eligible for potential additional company matching contributions based on the company’s overall performance and approval by the Board of Directors.

Employees are 100 percent vested in the retirement savings plan upon their first contribution, and they can contribute up to 50 percent of their eligible pay, on a before-tax, after-tax, and/or Roth basis, subject to IRS limitations.

Cash Balance Plan

Beginning on their first day of employment, Team El Paso members are eligible to participate in El Paso’s cash balance plan (CBP), the company’s pension plan. The CBP establishes a cash account that increases in value over time.

The account is credited with pay credits that are a variable percentage of eligible pay, based on an employee’s age and years of eligible service. Contributions range from 4 - 7 percent of eligible pay.

Employees can also receive interest credits each quarter based on a relatively stable, yet inflation-sensitive, index. Employees are vested in the CBP after three years of eligible service with the company. Payment options include monthly annuities or a lump sum.

Employee Stock Ownership

El Paso’s long-term incentive program is designed to align the interests of the management team with the interests of the shareholders. Currently, employees at the manager level and above, as well as other designated groups, are eligible to receive long-term incentive awards, which are paid in the form of stock options and restricted stock. This policy strengthens their financial interest in the success of the company by awarding an equity stake.

In addition, El Paso offers an employee stock purchase plan. Most domestic or expatriate full-time employees of El Paso Corporation or participating subsidiaries are eligible to enroll. Participants receive a 5-percent discount on purchased stock through the plan.

Transportation Subsidies

El Paso was again listed among the Environmental Protection Agency’s (EPA) Best Workplaces for Commuters—for the fourth consecutive year. We have earned this distinction, in part, by providing subsidies for employees who carpool or ride mass transit to work, and for encouraging flexible work schedules when possible.