Page 15 - Hess Pension 2017

Key Terms
To help you understand how the Pension Plan works, we’ve provided de nitions of some terms used in explaining the plan in addition to the Plan Basics on page 4.
Accrued Bene t
your accrued bene t is your cash Accumulation Account balance, which is the adding together of pay and interest credits over time. if you take advantage of bene t modeling tools to project future bene ts, your accrued bene t at some future date is estimated based on assumptions you input. in addition, when you model bene ts, annuity options noted are the actuarial equivalent of your account balance lump sum.
Actuarial Equivalent
Actuarial equivalent is a measurement that compares two payment options to see if the resulting values are suf ciently close. often, two or more payment options have the same or nearly the same value based on the actuarial assumptions.
Actuary
An actuary is a person who compiles and analyzes statistics and uses them to calculate insurance risks and premiums. An enrolled actuary is any individual who has satis ed the quali cations set forth in the regulations of the Joint Board for the Enrollment of Actuaries and who has been approved by the Joint Board to perform actuarial services under the Employee Retirement income Security Act of 1974 (ERiSA).
Bene ciary
A person designated by you to receive your retirement bene t if you die. if you are married, your spouse is automatically your bene ciary. However, for any bene t accrued in your cash Accumulation Account, you may designate another person as your bene ciary if you submit your spouse’s written and notarized consent. Additionally, if you are eligible to receive a bene t under the Traditional Formula and choose to name someone other than your spouse as your bene ciary for monthly bene ts, your spouse must consent in writing before a notary.
Break in Service
A plan year in which you are credited with fewer than 501 hours of service.
Cash Accumulation Account
your pay credits and interest credits are in a notional (hypothetical bookkeeping) cash Accumulation Account until you choose to receive a bene t, such as when you retire or leave.
KEy TERmS 13