Page 13 - Hess Pension 2017

Normal Form of Payment
Single Life Annuity
if you are single when bene ts begin, the normal form of payment is a single life annuity that provides monthly payments to you for your lifetime. When you die, no further bene ts are payable to anyone else.
Quali ed Joint and Survivor Annuity
if you are married when your bene ts begin, the normal form of payment is a quali ed joint and survivor annuity. This form pays you a reduced bene t during your lifetime so when you die, your spouse, if he or she survives you, will receive 50 percent of the bene t you were receiving for the rest of his or her life.
Optional Forms of Payment
you may select one of the following optional forms of payment instead of your normal form. However, if you are married when you leave or retire, your spouse must consent to your election in writing.
Single Life Annuity
This is the same as the normal form of payment for a single person. it provides monthly bene ts during your lifetime only, with no bene ts payable to anyone else after your death.
662⁄3%, 75% or 100% Joint and Survivor Options These options provide reduced monthly bene ts during your lifetime so after your death, your designated bene ciary will receive a percentage of your reduced monthly bene t for the rest of his or her life. The larger the percentage for your survivor, the less you will receive during your lifetime.
Certain and Continuous Annuity Option (Five or 10 Years) This payment option provides reduced monthly bene ts during your lifetime. if you die before receiving all of your payments during the guaranteed period ( ve or 10 years), your bene ciary will be paid the same amount you were receiving for the remainder of the guaranteed period. After all the guaranteed payments are made, payments to the bene ciary will stop. The longer the guaranteed period, the greater the reduction in your bene t.
Lump Sum
This option provides a one-time payment of your cash Accumulation Account balance. A lump-sum payment is in lieu of recurring payments distributed over a period of time.
WHAT HAPPENS IF I LEAVE THE COMPANY BEFORE I RETIRE?
if you leave Hess before you retire, you’ll receive the entire amount of your earned vested bene t. if your total vested bene t is valued at . . .
■ $5,000 or less, your bene t will be automatically paid to you as a single lump sum. you can then roll it over to an iRA or other quali ed plan.
■ More than $5,000, you may choose to receive your account balance as a lump sum or monthly annuity anytime after you leave the company, regardless of your age. Taxes and penalties may apply.
in any case, it’s a good idea to make sure you understand the tax implications by checking with your nancial advisor.
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